Key Earnings Level by Tim WestKEY EARNINGS LEVELS:
1. It is a composite price of an equity with a quarterly earnings report. The price line attempts to indicate the most important price for the release of earnings of that company. Only companies that have quarterly earnings will be able to have Key Earnings Levels. Indexes, commodities or other futures and crypto markets will not have these lines available.
After the earnings release (aka "ER"), the stock will tend to be supported by the price of the Key Earnings Level (KEL). If the stock is NOT supported at the KEL, then you can assume the stock is under distribution and one could further assume the earnings report was not accepted well by the market and the stock will likely continue to be sold in the future until the KEL no longer stops the advance of the stock.
2. The Earnings Level is designed to be plotted on the DAILY time frame only, and not the weekly or monthly time frames. It is also not designed for the hourly or any time other than daily.
3. Earnings Levels seem to be useful for a long period of time, perhaps up to a year or more based on the observations that I have done since 2012-2014 when I created the concept. I designed the software to allow you to advance the line forward in time by periods of 3 months, 6 months, 9 months and 12 months. The levels could last longer and you could add a "horizontal ray" at each earnings level so that it extends indefinitely into the future.
4. There are many additional uses of KEL's that include a combined KEL for an index, such as the DJIA, SP500 or any other basket of stocks if you combine all of the stocks KEL's together to form a market support/resistance level. I have published this research here at TradingView under the $DJI DJIA symbol.
5. The concept behind this EARNINGS RELEASE is to also see HOW VOLATILE a stock is on the day before, day of and day after the EARNINGS are released as a gauge of uncertainty in the stock. The larger the range of the stock price on an EARNINGS report, the more varied the opinions are of investors and the more uncertain analysts are on the valuation of the company or its future outlook. Volatility is an important concept for risk management in a stock and understanding how volatile a stock is on the 4 most important days of the year for any stock will help any investor understand more deeply about the risk of the stock itself.
6. I comment on stocks using the earnings levels concepts in chat room Key Hidden Levels here at TradingView for many years now. I am eager to hear your comments and success with this tool and others and hope you can pass it along to others to help them be informed too.
Quarterly
QuartersAn utility tool that highlights the financial calendar quarters and marks the beginning of each period with label.
Weekly Chart:
As always, you can support the author with donations via PayPal or crypto. I will be much appreciated and thankful for that.
A list of addresses is here bit.ly
Earnings Support and Resistance Levels [NeoButane]Inspired by @LazyBear's/@timwest's script:
Usage: support and resistance levels based on averaging price around earnings and quarterly opens.
What it is plotting:
1. A horizontal level whenever earnings occur. If actual earnings is higher than estimated, the line turns green, else red.
2. A horizontal level every quarterly open, colored black.
3. An average between the two mentioned above, colored orange.
4. 5% moves away from 3M open and earnings
5. Misc: 5% move away from that 5% move away, then 10% move away from the 2nd 5% move away.
By default, 4 and 5 are off to reduce visual noise.
Idea: Traders panic around certain dates that always happen, and traders always panic in the wrong direction. The market is composed of traders trading in the wrong direction at the same time, all the time. That means price will bounce back and forth as the gambling dens colloquially known as 'forex brokerages' or 'stock exchanges' take your money in the form of fees, time, and liquidations. So I put two lines on the chart and put one right in between, because it always goes back. I hope you can find it useful!
Note: This was a part of the old fundamental data indicators and is not officially for use, so while it should work on most U.S. stocks and a couple of other exchanges, it is not perfect.
