Earnings Reaction [ITA]
🟠 OVERVIEW
Earnings Reaction marks every earnings report on the chart and then counts what the stock did about it. Three numbers sit in the corner: how far this stock gaps on the session after a report, how often that gap closes in the same session, and how often it is still higher five sessions later.
Thousands of people use a tool that marks the earnings date. Very few publish one that says what happened afterwards, which is the only question a trader is actually asking before one.
🟠 CONCEPTS
* The Report - Taken from the exchange's earnings data for the symbol, so it is the real date and not a date typed in by hand.
* The Reaction - The session the market gets to answer in. Most companies report after the close, so by default that is the session after the marked date. A setting covers companies that report before the open.
* The Gap - The reaction session's open against the last close before it, as a percentage.
* Filled - Price traded back to that pre-report close during the reaction session. Touching it is enough.
* The Drift - The close five sessions after the reaction, against the reaction session's close.
🟠 HOW IT WORKS
On each reaction session the gap is measured and recorded, the session is checked for a fill, and a five session window opens. When the window closes, the drift is resolved one way or the other and the count moves.
A report whose window has not closed yet is left out of the drift row, not counted as a miss and not counted as a hit. The row says how many reports it is built on so that is never hidden.
The shaded band is the reaction session plus the week after it, green when the stock gapped up and red when it gapped down. The gold label is the gap. The short line is the pre-report close, which is the level the gap would have to come back to in order to count as filled.
🟠 SETTINGS
* The Reaction Is - Next Session by default. Switch to Same Session for a company that reports before the open.
* Sessions In The Drift - Five is one trading week. Lengthen it to ask about a longer hold.
* Label The Gap - The gold percentage on each reaction session.
* Draw The Pre-Report Close - The fill level, drawn for the length of the window.
🟠 NOTES
This needs a daily chart, and says so if it is on anything else. On a weekly chart the gap and the week after it are inside the same candle and there is nothing left to measure.
It also needs a symbol that reports earnings. On an ETF or an index it says that plainly instead of printing four rows of nothing.
The numbers belong to the stock on screen. A company that gaps eight percent and fills it by lunch and one that gaps two percent and keeps going for a week are different instruments, and that is the whole point of counting.
Earnings Reaction marks every earnings report on the chart and then counts what the stock did about it. Three numbers sit in the corner: how far this stock gaps on the session after a report, how often that gap closes in the same session, and how often it is still higher five sessions later.
Thousands of people use a tool that marks the earnings date. Very few publish one that says what happened afterwards, which is the only question a trader is actually asking before one.
🟠 CONCEPTS
* The Report - Taken from the exchange's earnings data for the symbol, so it is the real date and not a date typed in by hand.
* The Reaction - The session the market gets to answer in. Most companies report after the close, so by default that is the session after the marked date. A setting covers companies that report before the open.
* The Gap - The reaction session's open against the last close before it, as a percentage.
* Filled - Price traded back to that pre-report close during the reaction session. Touching it is enough.
* The Drift - The close five sessions after the reaction, against the reaction session's close.
🟠 HOW IT WORKS
On each reaction session the gap is measured and recorded, the session is checked for a fill, and a five session window opens. When the window closes, the drift is resolved one way or the other and the count moves.
A report whose window has not closed yet is left out of the drift row, not counted as a miss and not counted as a hit. The row says how many reports it is built on so that is never hidden.
The shaded band is the reaction session plus the week after it, green when the stock gapped up and red when it gapped down. The gold label is the gap. The short line is the pre-report close, which is the level the gap would have to come back to in order to count as filled.
🟠 SETTINGS
* The Reaction Is - Next Session by default. Switch to Same Session for a company that reports before the open.
* Sessions In The Drift - Five is one trading week. Lengthen it to ask about a longer hold.
* Label The Gap - The gold percentage on each reaction session.
* Draw The Pre-Report Close - The fill level, drawn for the length of the window.
🟠 NOTES
This needs a daily chart, and says so if it is on anything else. On a weekly chart the gap and the week after it are inside the same candle and there is nothing left to measure.
It also needs a symbol that reports earnings. On an ETF or an index it says that plainly instead of printing four rows of nothing.
The numbers belong to the stock on screen. A company that gaps eight percent and fills it by lunch and one that gaps two percent and keeps going for a week are different instruments, and that is the whole point of counting.
Pine Script developer & trader. I build clean indicators - Smart Money Concepts, scanners, risk tools. ITAtradingtools.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Pine Script developer & trader. I build clean indicators - Smart Money Concepts, scanners, risk tools. ITAtradingtools.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.