180's

Premise:

a one-day trend reversal and then resume the trend, or a two-day reversal pattern in the direction of the trend. This setup is one of the easier patterns to identify. Accompanied by a 2-month high or low tend to work very well in your favor.

For Buys

1. On day one, the stock must close in the bottom 25 percent of its daily range. On day two, the stock must close in the top 25 percent of its range.
2. The stock's price must close greater than both its 10-day and its 50-day moving average on day two only. (Neither ADX nor RS are needed here since the trend is indicated by price relative to the moving averages).
3. Day three only, buy 1/8 point above the day-two high.
4. Our initial protective stop is 1 point under our entry.

For Shorts

1. On day one it must close in the top 25 percent of its range. On day two, it must close in the bottomw 25 percent of its range.
2. The stock's price must close under both its 10-day and its 50-day moving average on day two only.
3. On day three only, sell short 1/8 point under the day-two low.
4. Our initial protective buy stop is 1 point above our entry.