However, once the news was priced in, and absorbed by the markets, fear lead to opportunity. Those that spotted the bottom in these stocks saw great returns.

• TD Ameritrade (AMTD) would run from $33 to $39


• Interactive Brokers (IBKR) ran from $45 to $48


• Charles Schwab Corp. (SCHW) ran from $35 to $42


• E-Trade Financial (ETFC) ran from $35 to $42

Going back to October 2019, we can see the stock was crushed by commission-pricing wars. However, we can also spot the exact time of excessive fear, and opportunity.

For one, in October 2019, the stock slipped to its lower Bollinger Band (2,20), and became extremely oversold. In fact, look at what happens to this same stock over the last two years. We can clearly see that each time that lower Band is touched or penetrated, the stock has tended to pivot and move higher from that point.

Then again, we never want to rely on just one indicator.

Now, look at what RSI was telling us in early October 2019. RSI was slightly below its 30-line, oversold. It was confirming what the Bollinger Band was telling us. Again, if we look back at the last two years, we can see that each time RSI was at its 30-line and the stock slipped to its lower Band, the stock would pivot higher shortly thereafter.

Massive downward swings in MACD also confirm oversold conditions. Even Williams’ %R below its 80-line is a powerful indication of an oversold situation.

Combine all three indicators with excessive news-based fear, and opportunity can be found up to 85% of the time. In fact, pull up your favorite two-year stock chart with these technical indicators, and you’ll see how easy it becomes to find opportunity.