Good morning and welcome this morning to Advanced Charting Techniques, another great webcast from Schwab Coaching. My name is Ben Watson. I' m an education coach and senior manager here at Charles Schwab, and I am joined today by my good friend Barb Armstrong out there in the chat, 20-plus-year veteran of the financial markets, which means she started when she was about five years old. But that being said, she' s there to help answer your questions about our specific discussion today. Now, we' Re going to talk a little bit about a proprietary indicator, and I know that sounds ominous and it sounds exclusive, so I' m going to let you in on a little bit of an exclusive club.
In the Thinkorswim platform, we have a proprietary indicator called the market forecast, and we' ll see what that looks like and how we might use it in our charting as we get into this. So let' s get into this discussion today. A couple of quick housekeeping items, however, as we get started. Remember, everything we talk about is simply for illustrative and educational purposes only. It is not a recommendation or any kind of an endorsement of any particular security, pattern, charting technique, or strategy. Remember that options carry a high level of risk. They are not suitable for all investors. Make sure that you understand the characteristics and risks of standardized options prior to considering any option strategy. Thank you. Now, when we talk about trades, we talk about the management of trades.
We' ll look at a couple of trade examples here. Remember that there' s no guarantee if we' re using a stop order that a stop order will execute at a specific price in the event of a trailing stop. There' s no guarantee that the trailing stop order or the stop limit order will activate or execute, excuse me, execute at a specific price or at all. Now, obviously, this session is focused on technical analysis. Technical analysis is only one way to look at the market. There are others, probability analysis, fundamental analysis among them. Those are all theoretical in nature. They don' t guarantee what' s going to happen in the future. They' re good ways to look at the market, but Schwab doesn' t recommend the use of technical analysis as a sole means of investment research.
Now, we' re going to be using the Thinkorswim desktop software platform today, specifically the paper money version of that. It' s a great learning environment. It is, however, like anything else, not a guarantee of future success out there in the real world. And there are some differences between the paper money version and the live version. And I will point those out. The one that is going to become most relevant for us today is that the paper money version of the Thinkorswim platform does not allow for studies, technical studies, to be used in scanning for stock results. So I' ll point that out as we get into this discussion. Of course, remember, investing involves risk, including the loss of principal. So thank you, again, for joining Barb.
Barb and myself today, we' re going to talk about the market forecast tool. Before we get to that, however, a couple of quick notices. If you are in the Anaheim area or on the West Coast, and I just noticed this because C. Casey said, greetings from Southern California. Barb, Kevin Horner, and myself are all going to be in Anaheim on September 13th at the Anaheim Marriott. We' re going to be doing what' s called a market drive. And a market drive is a one-day, kind of top-down approach discussion of what' s going on in the market, looking at trade examples and ideas and discussing trading strategies. You have access to lots of great resources. It is at no cost to you.
It' Sofths of huge value, however, if you want to come and spend the day with us. We would love to have you be there in Anaheim. Then I' m going to be in Miami on the 27th and 28th, teaching a two-day workshop. First day is going to be technical analysis. Second day is going to be option strategies. That' s going to be a great event. And then we' re going to be back in Santa Clara once again, once again on the West Coast, but Northern California this time. Santa Clara on October 12th, a month later at the Santa Clara Marriott doing another market drive. So we would love to see you there at any or all of these. If you want to just follow us around the country, get yourselves a Volkswagen bus, paint it some cool colors, follow us.
You can stay in the parking lots. It' s just like the Grateful Dead. All right. CL says the one in Chicago was great. It' s not just like the Grateful Dead. We' re not as, I mean, we were not as musically talented. Wait, were they musically talented? I don' t know. All right, let' s jump into what we' re going to talk about today. Let' s, uh, we' re going to take a look at how to implement technical patterns. And, and, and in this particular case, a specific technical indicator, we' re going to talk about the, the makeup of that indicator, how it works. Uh, I ve got some ideas to talk about in the light of that technical indicator. We' ll look at some examples on the charts.
John, we were in Tampa a little while ago. We' re going to be in Orlando. I know, uh, Orlando and Tampa are different. I get told that quite often, but we' re going to be in Orlando, uh, at the, uh, beginning of the year. It' s the beginning of December. So come on down, uh, to Orlando, uh, or, and, and that' s relatively close to Tampa. All right, let' s jump into our discussion here really quickly as we pop over to the Thinker Swim platform. And by the way, this is a good time for me to remind you to click on that subscribe button down at the bottom of the page. If you have not done so already, um, and, uh, that' s a, that' s going to be a way to set up alerts on the web, webcasts that we do on new content.
It' s at no cost to you. You can stay connected to our discussion. Also click on that like button. If you like what you see, that helps us out. It' s kind of like applause, but it helps to pop this content up to the top of the feed. Speak truth. Asks the question, what was the third form of analysis? You get technical analysis, fundamental analysis, probability analysis. Chris comes up with one astrological, which is certainly out there. There are astrological traders out there, um, even he gets into things that are normally considered to be generally mainstream, like Elliot wave analysis. And then you get into like weird time series, um, stuff, Elliot analysis in the context, uh, or Elliot wave theory in the context of technical analysis gets into some astrological stuff.
It also gets into some kind of time hole kind of, uh, wormhole time travel types of things. If you, if you get really deep into it, you can get as far down the rabbit hole as you' d like, but taking a look at this particular rabbit hole of the SPX, we Re- starting to see kind of this sideways movement here recently, last week or so. Kevin Horner and I talked about this this morning, a little bit of up and down kind of some sideways action going on on the SPX. A lot of kind of uncertainty in the market election year. We' ve got Fed uncertainty, things like that. Plus it' s the end of summer. So, there' s not a lot of push, uh, to the upside here or to the downside.
The NASDAQ kind of doing the same thing, uh, kind of coming down into this support level coalescing right around the, the moving average here in this case, right around the 50- period moving average. Yeah. Gann is definitely astrological, uh, Kathy for sure. Um, and, uh, and then the Russell 2000 almost giving us a little bit of a bull flag here, but not quite. Uh, not quite pushing higher here. A little bit of a pullback looking bull flag like, but not yet giving us that push to the upside. Kevin, I don' t know about that. I don' t know if we can provide that. I know we will have, uh, breakfast for you at the workshop. We' ll have some lunch for you at the workshop and the market drives.
We' re going to have a cocktail and appetizer reception at the market drive, but I don' t know about LSD. I don' t know if that' s, uh, included in that as well. Probably not. I would suspect, all right, let' So, so this kind of sets us up for what the market is doing. The market is kind of coalescing sideways, if you will, right? We' ve got this kind of sideways action going on here. And this is, this presents a conundrum for traders. A lot of times these sideways movements, uh, uh, kind of get us into a, a bit of a fix when it comes to kind of assessing what' s going on and, and trend direction, looking for some kind of insight into how the market is going to move.
Right? So what I' m going to do is I' m going to shift our focus here really quickly. Uh, I' m going to go to our single grid here, and this is just a single chart grid that I' I just kind of cleaned up. I happen to have a particular chart on here that I was looking at in a previous class, looking at a bear flag. Uh, but, but you notice that all I have on this chart, uh, at the moment is, uh, a candlestick chart. And candlesticks can give us an idea of what' s going on with momentum. I don' t have any kind of trend indicator on here. I don' t have any kind of, uh, oscillating indicator on here yet. I don' t have anything else, right?
Just bear chart. Visually, ideally, we should be able to see a trend, uh, at some point. I m going to bring up the NDX, the, the NASDAQ again here, just to kind of get us, uh, centered, if you will. And, and this is a clean chart. This is a one year daily chart, and we can kind of see what' s going on here. The reason, the reason I' m using the NASDAQ is because it has been kind of the, the, um, de facto indicator of leadership within the market over the last year or so. Right. And then we saw this change in that trend, and then it rallied up and it' s pulled back a little bit.
So, so the question might be, the question might be, uh, you know, if we start to see a move down, right, we, we start to see, let' s say a counter trend move. And when we talk about a counter trend move, I' m talking about something like this, right? Not, not this type of move, not the little bit of a bear flag, but when we start to extend that, uh, down a little bit, and then we have the question of, well, is that trend line still intact? Are we still moving to the upside? That' s when, from a trading perspective, we start to think, all right, is the downward pain going to stop? Um, is it going to resume the uptrend? Are we going to stay in this uptrend? Right?
So how do we know that? Now, like I said, look, there are lots and lots and lots of different ways to analyze the market. There are lots and lots and lots of different technical indicators. So this is my little, uh, kind of disclaimer right here at the beginning of this part of the discussion. And that is this. I' m never going to tell you, I' m never going to tell you that there is any one, there is any one best indicator, right? Or, or any one best set of indicators. You chart you. Okay. That' s just what I' m going to say. You do what you want to do with the charts. Some different types of indicators resonate with other traders.
And I think as technical traders and technical analysts and traders in general, and just human beings, we simply want to be validated that, you know, something, something that we' re looking at or that we' Re- doing is, um, okay. Right. That we' re okay. And, uh, you know, I think from a perspective of advanced charting techniques, right, we' re, we' re looking for this Holy Grail and it' s just not there. So how do we find out whether we' re okay? Well, we' re looking for confirmation. So let' s use a technical tool, a proprietary technical indicator. Here on the thinkorswim platform that can give us potentially some confirmation of what we might see happening because it incorporates a number of different elements into the technical indicator.
And by the way, incorporating a number of different indicators of elements is exactly why we run the feedback surveys that we do. I just happen to notice that there' s a feedback survey out there in the chat. Uh, if you get a second, click on that link, open up that window, set it aside, because then you can come back and you can fill it out after the class and you won' t run into the potential of forgetting to fill out that feedback survey. That helps us out a lot, right? Okay. So we' re trying to figure out if we' re okay with if what we' re seeing is, is really what we' re seeing. So confirmation.
So what I' m going to do is I' m going to come up here to our Flask icon up at the top, and I' m going to pick out of our four hundred and fifty roughly some odd technical indicators. I' m going to type in the words market forecast.' Whoops, and the, the one that comes up by default is this one market forecast.' This is the one that' s prebuilt. It is proprietary. I also have one in here called market forecast KR,' which I' m going to show you here in just a minute. And by the way, you might recognize the initials KR as Ken Rose. Who helped build this market forecast, not only the original, but also the market forecast, Ken Rose script.
So we' re going to use the market forecast first and see what it is. This is the one that' s proprietary. It' s included in the thinkorswim platform, and we' re going to click on apply and okay. And it' s down here at the bottom. I' m going to bring this up so that we can see it. And I know that those colors are a little bit muted. So what I' m going to do, is I' m going to go back up to this flask icon. I' m going to go to the market forecast indicator. I' m going to go to the gear icon. And so that it' s a little bit easier to see, I' m going to make the plot lines a little bit thicker.
So I' m going to make those three point line on each one. And by the way, you can change the colors if you want. That' s fine. I' m going to click on, okay, apply and okay. Now that So as a little bit easier to see, right? Okay. We won' t disclose how market forecast is calculated. All right. You know what? I will tell you this. The market forecast is an optimized indicator that is similar to a stochastics indicator, just using different timeframes. So what I' m going to do is I' m going to zoom in on a near-term timeframe, May through now, just so that we can kind of see that. And it' ll stretch those lines apart a little bit so that you can see what' s going on.
We have three lines on this chart or on this, on this technical indicator, this orange or kind of reddish line is the fastest of the three lines, the blue line, next fastest line or next slower, whichever way you' re going. And the third line is the slowest of the three lines in terms of aggregating data. Okay. So, so the way that we' re going to think about these or the way that we might think about these would be that red line or near-term line is the quick move, right? The daily, almost daily move, um, that the, the, whatever the, the instrument is that we' re looking at is making right. And that will change direction and oscillate from bottom to top or top to bottom, or in that range, uh, sometimes within the space of one or two candles, the near the, the intermediate- term line, that' s this blue line that will oscillate.
Um, oftentimes in the context of a week or so, right? We' ll see those oscillating moves. And then the longer- term line, which is oftentimes referred to as the sentiment line, will oscillate over the course of months generally, right? A couple of months that tends to be the slower term indicator, right? So you can kind of see that the, the price action here in this particular case, moving, and you see that trend kind of consistent with what' s going on with that green line in the market forecast. But you also see those kinds of short- term movements. So I ll give you an, an indication, right? So if you look at, say for instance, this candlestick right here that I' m pointing out, that' s a hammer candle.
If we come back down to the bottom here, and we kind of look at the coincidence, of where that hammer was, you can see on the short term line, that is a shift. Okay? So, so this is, this one, the, the orange line, right? Is the short. I' ll just leave them, label them this way. Short. This line is intermediate. And this line, is long. That makes sense? Yeah, I meant orange. Yeah, I meant orange. Okay? So notice what happened right here. We get this very quick move in the course of a couple of candles to the upside. So we get a reversal, and a turn, and that short- term line, that orange line, moves higher as a function of the shift that occurred in that candle.
Remember, a hammer candle, a hammer candle, is, at the, in, in and of itself, is downward movement, and then upward movement. Right? Sellers were in charge, and then buyers took over. So we can see that confirmed by that short- term line on the market forecast. Right? Now, that' s echoed by that intermediate- term line, the blue line, as price kind of moves up. It kind of comes up to a resistance level, and then pauses a little bit. So that intermediate term line, that blue line, followed slowly, or shortly behind. Right? Shortly behind, and then kind of runs into a resistance. So echoing that resistance, but still moving higher. Price is still moving higher. Right? Now, we start to see those highs on that intermediate term line, the highs on the short term line getting a little bit lower.
So a little bit of a divergence going on, and price pulls back a little bit. Right? Price is pulling back a little bit. Okay? So I, I, this is the bottom of the chart. I don' t have anything else down here on the bottom of the chart. And so for a minute, as I' m doing this, we' ll leave my face off of the chart. Yeah. So we' ll, we' ll not cover that up at the moment. Thanks for that good reminder. Right? So I, I will put my crosshairs back on. But what I' m doing right now is just using my magic marker so that you can see that. So let me do that. Let me kind of clear up some of the confusion here. And let me put my crosshairs back on.
So here' s that hammer candle. Notice what' s happening with that near term line, the short, the orange line and the intermediate line, the blue line on that hammer candle. They were moving down. They now start moving back up. Right? And then they get to a resistance and we start to see those highs on those two lines getting lower. That little bit of a divergence and price kind of goes sideways. Right? Price kind of goes sideways. Now, price continues to move higher. We start to see that near- term or short line moving up. The intermediate line is moving up and we' re kind of stuck in that sideways range here. And you can see that those two lines are oscillating up and down between near the bottom and near the top.
Okay. Near the bottom and near the top. So, we get that kind of oscillation. Now, here' s where, guys, here' s where the market forecast really comes into power. And James, exactly where I' m going with this. Right? Look at what happens right here. So this is the first of August. And if you remember what happened kind of on that first of August, right around that first of August timeframe, as we started to get retail sales numbers, we got jobs numbers. Look at what happened. We saw a gap down, a sell off, and then a gap down again. Notice what happened with these lines. They all started to make those big strong moves to the downside. Prior to that, that longer term line, that longer term line had already started to move to the downside, right?
We already started to see that shift over the course of that last month to the downside. We get that panic selling or that push to the downside. And then something really, kind of interesting happens. Right down here, I' m just going to draw in a line right about the, let me clear that. I' m going to draw in a line here right about that 20 level. Okay. So I' m going to click on 20. I' m going to draw a horizontal line right here at about 20. We' ll just make that horizontal right there. So something interesting occurs right about here. Let me zoom in so you can see it. And there' s something really interesting that goes on kind of right in these two days here.
And I' ll circle that with my drawing tool so that I keep my crosshairs on. So I' m going to do that. I' m going to circle this area right here. Okay. This is what' s referred to as a cluster. I get that. Okay. Look, not a great name because it has some connotations. This is where all three of those lines kind of occur at the same point or very, very near the same point. On the same day or days, either below, in this case, the 20 level, right, or above the 80 level. Okay. 20 and 80 are those generally considered to be reversal zones here on the market forecast. So, okay, you think. All right. Great. What does this cluster thing tell us? All right. It' s a convergence of those three different timeframes.
So when you see a cluster followed by movement of those three lines up, up, and up out of that reversal zone. All right. Cluster followed by a reversal can be an indication of price movement in the opposite direction of the prevailing trend. So prevailing trend was down into the cluster, an indication of upward movement here out of the cluster. So Beth asks a great question. How does that cluster differ from the one on 726? This cluster occurred above the 20 line. This cluster occurred below the 20 line. So the difference is, is nuanced. It' s subtle. But in the words of Don Draper and Mad Men, it' s subtle, but it is powerful. The difference here is. That cluster occurred in the context of the downtrend. It was not at an extreme.
Below 20, it' s at an extreme. Cluster occurs at an extreme. The potential is for that reversal back to the upside. All right. And as SJS points out, no guarantee. Clusters do not guarantee reversals. All right. Clusters do not guarantee reversals. So. That is one simple way in which we can use the market forecast tool looking for those clusters. I' m going to show you another way that we can use the market forecast tool. And then we' re going to get into how we can make this a little bit easier to see. Okay. So let me do this. I' m going to clear those annotations. And I' m going to turn this back to my pointer. I' m going to zoom back out.
And I' m going to come over here and I' m going to change this to an individual chart. Actually, you know what? I' m going to keep it right here. I' m going to keep it right here because I want to look at this timeframe right here. So I' m going to zoom in. Notice what price is doing. Price is rallying up, pulling back. So we' re looking potentially for a bull flag. Right. We' re looking potentially for a bull flag. Let me just draw the lines in here. Let me change back from a circle to a line. So, bull flags might look like something like this. And then the pullback. And then looking for that extension back to the upside. Right. If you want to learn more about bull flags, come and join me on Tuesdays.
I teach a class at this particular time on bull flags and bear flags. Where we talk about them. So here' s what we' ve got. Rally up. Pull back. Rally up. So the question is, is this likely to bounce and move higher? And is there anything that we can learn from the market forecast tool that could help us determine whether we' re likely to see that continuation of the bull flag on the NDX or not? The first thing is. The first thing is that the long term line. Is moving higher. Right. It' s already moving higher. So we' re consistently in that trend. The second thing. Is that we' re noticing. The short term line. Is diverging. Bullishly from price movement. Right. Short term line diverging bullishly. Short term lines making higher lows.
Price is still pulling back a little bit. That can be an indication that there is the potential for reversal. Just like with the RSI. Just like with the MACD. Those divergence indicators can be a potential indicator for price reversal. Okay. Number one. Now. The next thing is. We' ve got our intermediate term line. Poised. To break out of equal highs. So we' re not quite there yet. The near term line or short term line making higher lows. The intermediate term line making lower lows. But equal highs. And the long term line already making higher highs. So, the confirmation of a bull flag. And the bull flag possibility. Might very well be. Both of these lines. Breaking above this. Short term resistance. Okay. Short term resistance. Okay.
Let me see if I can break it down a little bit. Once again. This orange line. Let me zoom out so that we can see it a little more clearly. The orange line that we' re looking at here. Is the fastest of the three lines, the blue line. Next fastest, the green line. Is the slowest. Of the three lines. So what this configuration right here is telling us very simply. Is that as price. Is pulling back. The momentum. Is starting to shift. Bullishly. Right. It' s starting to shift bullishly. The longer term sentiment. Has already turned bullish. Because price was already moving higher before the short pullback. Now looking for confirmation. Would be a breakout above those previous highs. That would be a confirmation to price. Moving. Higher.
So this can be a coincident indicator. For. A bounce. Or a breakout. So it can be a helpful tool in visualizing number one and number two, confirming a possible bounce or breakout. Okay. So those are two ways that we can use the market forecast tool. One clusters and two divergences. And directional breakouts. Okay. So clusters, divergences, and directional breakouts. Those are the two ways that we can use the market forecast tool. There are others, but generally those are going to be the primary trading signals from this technical indicator. All right. Now that we' ve seen this kind of by itself, let' s see if we can make this a little bit easier to recognize when we see these signals. Okay. So I' m going to zoom back out. Once again.
We' ll just zoom back out. And I' m going to remove the market forecast. And I' m going to replace it with the market. Forecast. That Ken Rose optimized. Okay. And. Just before anybody asks. I' m going to go ahead and I' m going to share this. Right down here in the chat. And remember that shared items are. Not guaranteed as to time or accuracy. Okay. And so it' s shared down there in the chat. As a shared item. And I' m going to go ahead. And click on apply. And okay. Apply. And okay. And I' m going to bring this up. Okay. So Ken has done some things to this. To kind of make it easier to see, He' s put in a shaded area. Above 80 and shaded area below 20.
He' s also kind of changed the colors a little bit to make those easier to read. And he' s added a tool that can help us identify where those clusters are. He' ll, this indicator will put a dot where that cluster occurs. And you can see the turnaround. So the idea behind trading that and the trade entry signal would be a long entry on the bullish cluster down at the bottom. And an exit on a bearish cluster up at the top. Does that make sense? Okay. Entry on a bullish cluster, exit on a bearish cluster. And that is the idea, right? Yeah. Pat was using this as well. And this could be a helpful tool. You know, there is one other indicator that I' m going to put on here.
That can also be helpful. I' m going to go up. Here. Here to the Flask icon, C-L-U-S-T-E-R, clusters, Kenrose. And I' m going to add this twice. Okay. And so what I' m going to do is I' m going to share this also with you. And again, remember that shared items are not guaranteed as to accuracy or time. And what the Clusters indicator can do is set up a bullish or bearish cluster indicator on the chart. So where we see that cluster occur down here, it' s going to add a dot up here on the chart. It So going to add a dot on the chart. Where that cluster occurs. So that can be a helpful visual identifier. Okay. So now, how does this help us?
Right? How does this help us? Well, as several of you noticed, this oftentimes is used on indexes, on broad market indexes, because it incorporates a lot of data. Right? So think about this. Let' s just kind of go back. Let' s go back and do a quick back test over the course of the last year. Enter on the bullish cluster. Let me put my circle on here. Enter on the bullish cluster. Rally, rally, rally, rally. Exit on the bearish cluster. It moves back down. So there was a period of time where the market was still coasting higher after the bearish cluster. And then it pulled back. Okay. Okay. Okay. If a trader got back in on the bullish cluster and exited here, missed that part, and we didn' t get a bullish cluster.
So we might have missed out on this upward move and then that give- back. Another bullish cluster right here as an entry signal. Okay. So that being the case, right? Take this indicator. Take this indicator as simply one means of evaluating entry and exit signals. And Andy took me right to where I wanted to go, which is, hey, can we scan for clusters? Because if we were to look at something, an individual stock, while perhaps not as reliable, let' s take a look at this one, AAP. Okay. Okay. Okay. So we' ve got a good example here. So this is a, you can see the earnings announcement on AAP. Because it' s occurred multiple times here. We had the earnings announcement on AAP. I' m going to zoom in.
Earnings announcement on AAP pushed the price down. Now we' ve had one, two, three, four cluster signals that have occurred down here at the bottom, at the bottom of that oversold range. Right? So here' s the cluster signals on the chart. Here' s the cluster signals. Here' s the cluster signals on the market forecast indicator right there. Now, what does that mean? Right? What does that mean? Well, first of all, what' s the overall trend of the stock? It' s generally been moving down. So could this be the potential for a bullish reversal? Yes. Does it have to be? No. Could this be potentially an entry signal? No. Yes. Does it guarantee that the price is going to reverse? No. But in this particular case, we' re going to look at this as an example of an entry signal.
And we' re going to see how that plays itself out. Now, options traders may choose, and we talked about options in the disclosure, options traders may choose to use a signal like this as an entry into a more neutral, type of option strategy. Some traders, however, may simply use this as an indication of when that reversal might happen, looking for confirmation. So what I' m going to do in this particular case is we' ll take a trade example here to illustrate this. We' ll use this as something that we can measure against. I' m just going to simply buy the stock at this point, given that cluster. And you' re right, Chris. Some stocks have failed to do that. Some trading recurring units have failed to trade here.
Some people actually has these failed clusters quite often. I. I am simply going to enter a trade here, going long 100 shares on this cluster, and we' ll go ahead and make sure that I' m aware of any transaction costs and any alerts, and we' ll simply enter that trade right here. OK, so if you missed this, the shared indicators, indicators, I will also put those in the description page. Now, here' s the quick thing. We' ve got just a few minutes left, and I wanted to do this really quick. I want to go to the scan tab, and I want to build just a really quick scan. I' m going to pick my percentage change, so I want positive net change, and I want a minimum volume just in this particular case of let' s go 500,000 shares or above, so somewhere up in that range.
I' m going to stick to one of the main indexes. Let' s go to the S&P 500. We' ll just put it on the S&P 500. Now, what I' m going to add is a study filter, and this is where it' s different from paper money. If you' re in a live account, it is different from paper money. Because you can use a study-based filter. So, I' m going to go to custom, and I' m going to build a custom study. I' m going to click on edit, and I' m going to add a study, and the study that I want is C-L-U-S-T-E-R, the clusters study that we just talked about.
And all I want to do is say, ' all right, cluster true.' If the, stock has a bullish cluster within the last 10 bars, or 10 trading days, then report that back as part of the scan. And I' m going to click on okay. And I will share this as well. Okay, so I will share this scan really quickly, so that we' ve got it. Oops, there it is. Share scan query. We' ll call this cluster scan. Click on share, and I will pop this right back here. Again, remember, those are not guaranteed. And we' re going to run this scan and see what we get. And I have three stocks that are giving me that bullish cluster and meet my volume and positive net change characteristics.
So, let' s take a look at one of them. Let' s take, in this particular case, UPS. Okay. So, I' m going to go back to my chart. I' m going to go to UPS. And here' s UPS. It' s been in a downward trend, and we' ve got a bullish cluster occurring at a support level. Price is down in that, or the sentiment indicator, the momentum indicator, the short-term indicator, all down in that lower reversal zone at the same time, looking for a potential reversal. But again, remember that you can have lots of failed clusters before you get one that works. So, something to keep in mind. The other one that we were looking at was Intel. INTC came up in that result. Bullish cluster. Price is starting to move higher.
That' As an indication of a bullish cluster breakout. We can see that happening here on the chart. Bullish cluster, bullish cluster. Price starts to fall. Now with correction of 1. 5% to 1. 8%, if the Kokub volatile appears, move higher. Again, no guarantee, no guarantee, right? But this one is perhaps a little stronger indication than the one on UPS. So a couple of different examples. So we' ll go ahead and we' ll use this as an indication. We' ll click on buy. Again, 100 shares long. We' ll read through, make sure that we' re aware of any transaction costs. We' ll click on send and fire that order off based on that bullish cluster. Okay. So, I shared a bunch of stuff with you, right? I shared two indicators and a scan.
I shared with you the Kenrose market forecast tool, which is this view right down here on the bottom. And I shared with you the Kenrose cluster tool, which is putting the dots where those clusters occur here on the chart that can help you to make that determination of where those possible reversals might occur. The only place that you can find the market forecast tool is here on the Thinkorswim platform. The only place that you can find those shared adaptations of the indicator is here, in place where I' ve shared them with you guys. My thanks to Barb Armstrong for helping out with this and answering your questions. If you want more information, come right on over here to the Trader Talks webcast channel and type in market forecast.' And you' re going to see a bunch of webcasts that talk about the market forecast tool. Lots of great ways for you to learn more about this particular technical indicator. And as Barb points out, we are dark on Monday. It is Labor Day. And thank you once again, guys, for joining us for this particular webcast and for everything that we do. Have a great long weekend and be safe. We' ll see you again very soon. Take care, everybody. Bye-bye.
