Premise:
Daily range is the largest of the previous nine trading sessions, the good ones tended to have very small pullbacks so the stops should be kept tight.
For Buys:
1. Today (day one) must be a two-month calendar high. (This strategy does not use ADX, nor RS. I simply want a new high accompanied by a range expansion)
2. Today's rnage (high minus low) must be equal to or larger than the largest daily range of the previous nine trading days.
3. Tomorrow only, buy 1/8 point above today's high
4. Initial maximum risk (stop) is 1 point under yesterday's close.
For Shorts:
1. Today (day one) must be a two-month calendar low.
2. Today's range must be equal to or larger than the largest daily range of the previous nine trading days.
3. Tomorrow only, sell short 1/8 point under today's low.
4. Our initial protective stop is 1 point above yesterday's close.
How this could work intraday:
Tuesday, November 27, 2007
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