About IPO Prophet's Signals

Written by Scott Shelton | Oct 19, 2024 8:24:09 PM

The IPO Prophet™ Bull Signal is an algorithm that monitors the indicative open price and volume of an IPO before the security opens for trading. IPO Prophet™ will deliver an alert to you when there is a Bull signal generated before an IPO first opens for trading. This signal is derived by measuring the volume and price action during the pre-open auction. Our opening print volume forecast indicator measures volume, premium from issue, and the indicative open price different premium levels and forecasted opening prices to make a prediction from past data if there is enough volume at a certain price to generate a Bull signal.

The IPO Prophet™ Momentum Bear Signal is an algorithm that analyzes IPO price data subsequent to the opening trade on the date of a company’s first day of trading in the public markets. This algorithm focuses on analyzing price and volume changes in one-minute intervals to focus on the convention of price momentum where increasing price in conjunction with increasing volume implies that future prices will be higher. The algorithm generates a quantitatively derived score that, on a one-minute basis, can lead to an IPO Momentum Bear signal. The IPO Momentum Bear signal could serve to prevent or reduce losses in trading positions.

The IPO Prophet ™ Absorption Time Bear Signal is an algorithm that analyzes price and volume relative to the size of an offering and its opening price. Price data for past Initial Public Offerings is analyzed on a one-minute basis to determine if a change from positive to negative momentum of a certain magnitude might predict future lower prices. Thus, IPO Absorption Time could serve as a measure of momentum. The key feature is that one-minute price and volume data can be analyzed on a continuous basis to generate a signal. A Bear signal cannot be generated at a price higher than that of the price of a given IPO’s open.

View full post