What is OWL?

OWL (Opportunity Watch List) Long Trading Alert is AlpharvestPro’s entry signal detection system. It identifies three specific low-risk buy points used by professional momentum traders:

1. Pocket Pivot (PP) — A volume signal inside a base
2. Buyable Gap-Up (BGU) — An earnings or news-driven gap that institutions support
3. Undercut & Rally (U&R) — A shakeout trap that reverses into strength

These signals answer the most common question in momentum trading: “I found a strong stock — when exactly do I buy it?”

Signal 1: Pocket Pivot (PP)

Definition

A Pocket Pivot occurs when a stock’s up-volume on a given day exceeds the highest down-volume of the prior 10 trading days. Developed by Gil Morales and Chris Kacher, it identifies institutional buying within a base formation — before the stock breaks out to new highs.

Why it matters

Most breakout strategies require buying at or above a pivot point (often the prior high). Pocket Pivots let you enter earlier, inside the base, at a lower price with less risk.

Detection criteria

1. Stock closes up on the day (close > open AND close > previous close)
2. Today’s volume exceeds the maximum down-volume of the past 10 days
3. Today’s volume is at least 1.5× the 50-day average volume
4. Stock is above the 50-day moving average (or within 3% of the 200-day MA as support)
5. Stock is not in a 65-day downtrend

Signal 2: Buyable Gap-Up (BGU)

Definition

A Buyable Gap-Up occurs when a stock opens significantly higher than the previous close (gap up) on heavy volume — typically after earnings, a new product announcement, or positive guidance. Not all gap-ups are buyable; the key is institutional support evidenced by sustained volume.

Why it matters

A true BGU represents a sudden shift in institutional demand. The gap itself becomes a support zone — institutions that missed the gap will often buy pullbacks to the gap area.

Detection criteria

1. Stock gaps up by at least 0.75× the 40-day ATR from the previous close (volatility-adaptive threshold)
2. Volume on the gap day is at least 150% of average volume
3. Stock closes bullishly (close ≥ open) and the gap is not filled (day’s low stays above prior high)
4. Stock is in an uptrend (price > MA50 > MA200)

Signal 3: Undercut & Rally (U&R)

Definition

An Undercut & Rally occurs when a stock briefly breaks below a known support level (undercut), triggering stop-loss selling, then quickly reverses and rallies back above that level. It’s a “shakeout” — weak hands sell, institutions buy the dip.

Why it matters

The U&R is a counter-intuitive signal. The undercut looks like a breakdown, which scares retail traders into selling. But when the stock immediately recovers, it proves that demand exceeded the temporary supply increase. The shakeout created a stronger base.

Detection criteria

1. Stock breaks below the prior 20-day low, 50-day SMA, or 65-day EMA support level
2. The break is brief — yesterday’s low undercut the support level
3. Stock rallies back above the broken level today (close > prior low) with a bullish candle (close ≥ open)
4. No volume requirement — the price reversal itself confirms the shakeout trap

Signal Quality Assessment

Not all signals are equal. AlpharvestPro reports each signal with context data so you can assess quality:

Signal priority ranking:

1. BGU with RS 90+ and Minervini 9+: Highest conviction — institutions are aggressively buying
2. PP inside a VCP with declining volume: Classic setup — entry before breakout
3. U&R at a key support with volume surge: Counter-trend entry with defined risk

How AlpharvestPro Reports Signals

The Entry Signals report includes:

Reports are generated daily for all 4 markets:

• Japan (JPX-400): alpharvestpro.com
• US (S&P 500): alpharvestpro.com
• Taiwan (TW200): alpharvestpro.win
• Hong Kong (HSLMI): alpharvestpro.win

Combining Signals with Other Screens

The most effective workflow uses entry signals as the final step in a filtering pipeline:

Step 1: Market Direction (Composite Score > 40)
  ↓
Step 2: Minervini Candidates (Score 8+)
  ↓
Step 3: RS Leaders (RS 80+)
  ↓
Step 4: Entry Signal (PP, BGU, or U&R)
  ↓
Step 5: Risk Management (stop-loss below signal pattern)

This filters ~14,000 stocks down to typically 5-20 actionable opportunities per day across all 4 markets.

FAQ

How many entry signals are generated per day?

It varies with market conditions. Typically 20-80 signals across all 4 markets during normal conditions. During strong uptrends, the number increases; during corrections, it drops to near zero (which is informative itself).

Can I get alerts for entry signals?

Currently, signals are published in daily reports and the X feed (@alpharvestpro). Real-time push notifications are planned for VIP subscribers.

Which signal type is most reliable?

BGU has the highest win rate because it represents the strongest institutional demand. PP is the most common and offers the best risk/reward due to early entry. U&R is the least common but can yield the largest gains when market conditions are right.