StockFetcher Forums · Filter Exchange · /* High Low Breakout Technique */<< 1 2 >>Post Follow-up
TheRumpledOne
6,362 posts
msg #38446
Ignore TheRumpledOne
10/14/2005 9:13:10 AM

Fetcher[
/* High Low Breakout Technique */

set{dailyrange, high - low}

set{YH, high 1 day ago}
set{THmYH, high - yh}
set{cTHYH, count(high > yh, 1)}
set{thyh, thmyh * count(high > yh, 1)}

set{yl, low 1 day ago}
set{ylmtl, yl - low }
set{cyltl, count(low > yl, 1)}
set{yltl, ylmtl * count(low > yl, 1)}

set{brkout, THYH + yltl}

add column dailyrange
add column THYH
add column yltl

brkout above 0

/* your close/volume/market criteria goes below this line */

close above 20
volume above 1000000
market is nasdaq

/* end filter */
]




/* http://www.tradeology.com/breakout.html */

/*
High Low Breakout Technique
This technique can be used for any market that has a decent daily range. If you look at any chart, what do you see?

You should see a succession of bars that are doing one of three things.

Going up
Going down
Going sideways

Unless today's bar turns out to be an inside day or very rarely the high and low of today are exactly the same as the high and low as yesterday, then we will have a new high or low. Think about it. Today's bar, in all probability will make a higher high than yesterday's bar or a lower low than yesterday's bar.

This information is very powerful. Look at the chart below:



Now, the question is - how much of a higher high or lower low will today achieve than yesterday?

In our next example, company XYZ had a range of 200 points (high minus the low) yesterday. Today the high might be 50 points higher than yesterday's bar or 50 points lower than yesterday's bar. If we can find the average daily distance between the high of yesterday's bar to the high of today's bar and the average daily distance between the low of yesterday's bar and the low of today's bar, then we might have a trading opportunity.



Make yourself a little excel sheet or grab a pen and paper and start tracking the high and lows of each day. Then deduct the high of today from yesterday's high and the low of today from yesterday's low. After you have a few day's worth of data you can get an average. On the excel sheet, below the first five columns are the date, open, high, low and close. "DR" is daily
range, "TH-YH" is today's high minus yesterday's high and "YL-TL" is yesterday's low minus today's low. In the "TH-YH" column, I only record an entry if today's high is greater than yesterday's high and in the "YL-TL" I only record an entry if today's low is lower than yesterday's low. All pretty simple stuff.



OK, as you can see, the example of the GBP/USD (Pound/Dollar). The average breakout up was 54 pips and the average breakout down was 60 pips. The next thing to do is apply this knowledge to our trading.

On the 2nd September the high was 1.7972 and the low was 1.7864. We are looking for a breakout of either of these points. It doesn't matter which way. So on the 3rd September you mark the previous day's high and low and monitor what happens when it reaches these points.



The way I trade this setup is to wait for the market to test the low or high of the previous day and then pullback. I don't enter on a break of the previous day's high/low, I wait for a pullback of either a test of the high/low or a break of the high/low.

As you can see from the chart, the market came down and tested the low of 1.7864 and then pulled back. The low that was made was just a few pips lower than the previous day's low and formed a little support area. That support area is the breakout point.

You can place an entry order a couple of pips below the support area with a target of the average "YL-TL" as a target, which in this case was 60 pips. The stop is a bit more tricky. If the pullback is not too big you can place your stop just above the pullback area (resistance). If the distance is too great, then just use Dollar stop.

You can even take this down to a 1 minute chart and scalp the market with a very tight stop. There are loads of ways to trade this setup. You could add some indicators for confirmation. You could use the entry as setup for a position trade. You could even concentrate on inside day's where the breakout might have a much larger range.

However you decide to trade it, at least take note of the previous day's high and low.

Good Trading

Best Regards
Mark McRae

*/

MAY ALL YOUR FILLS BE COMPLETE.


TheRumpledOne
6,362 posts
msg #48351
Ignore TheRumpledOne
12/2/2006 9:00:33 PM

POP TO THE TOP


TheRumpledOne
6,362 posts
msg #57257
Ignore TheRumpledOne
modified
11/30/2007 7:33:04 PM

Fetcher[
/* HIGHER/LOWER HIGH/LOW DISPLAY */

set{ CAH, count( close above high 1 day ago, 10) }
set{ CBH, count( close below high 1 day ago, 10) }
set{ CAL, count( close above low 1 day ago, 10) }
set{ CBL, count( close below low 1 day ago, 10) }

set{ LH, count( high below high 1 day ago, 10) }
set{ HL, count( low above low 1 day ago, 10) }

set{ HH, count( high above high 1 day ago, 10) }
set{ LL, count( low below low 1 day ago, 10) }

add column HH
add column LH

add column HL
add column LL

add column CAH
add column CBH
add column CAL
add column CBL

MARKET IS NASDAQ 100

sort column 5 descending
]



May come in handy.


nikoschopen
2,824 posts
msg #57267
Ignore nikoschopen
11/30/2007 9:38:07 PM

TRO,

This guy is essentially talking about what's better known as the "Key Reversal Day" formation. This is a one day reversal pattern that's worth noting either at the peak or the trough of a cycle. Anywhere else on the cycle, this pattern is usually brushed aside as useless. Just my worthless 2-cents.

chetron
2,817 posts
msg #57280
Ignore chetron
modified
12/1/2007 10:07:13 AM

TRO,

ONE THING I NOTICED WAS THE CLOSE BELOW THE HIGH AND THE CLOSE ABOVE THE LOW STATS WERE VERY HIGH. 10 FOR 10 SEEMS LIKE A GOOD BET. IF THE STOCK IS RANGING WELL AND YOU BUY/SELL SHORT AT TODAY'S LOW/HIGH AND SELL AT TOMORROWS CLOSE, THAT'S A GOOD BET.

I WAS WORKING WITH YOUR "DRAW A HORIZONTAL LINE" FILTER AND I NOTICED THAT USING THE OPEN FOR THE EXIT, INSTEAD OF THE CLOSE, YOU NOT ONLY COLLECT MORE OPPORTUNITIES, BUT YOU ALSO CUT YOUR TRADE TIME IN HALF, INSTEAD OF WAITING FOR THE CLOSE, SELL AT THE OPEN.

AS YOU CAN SEE IN YOUR FILTER BELOW, THAT I ALTERED FOR THE OPEN.

IF YOU EXTEND THE TIME TO 100 DAYS, INSTEAD OF 10 DAYS, THE STATS CONTINUE TO HOLD IN THE 90 PERCENT RANGE.





Fetcher[

/* TACHIKAWA */
/* HIGHER/LOWER HIGH/LOW DISPLAY */

set{ CAH, count( close above high 1 day ago, 10) }
set{ OBH, count( open below high 1 day ago, 10) }
set{ OAL, count( open above low 1 day ago, 10) }
set{ CBL, count( close below low 1 day ago, 10) }

set{ LH, count( high below high 1 day ago, 10) }
set{ HL, count( low above low 1 day ago, 10) }

set{ HH, count( high above high 1 day ago, 10) }
set{ LL, count( low below low 1 day ago, 10) }

add column HH
add column LH

add column HL
add column LL

add column CAH
add column OBH
add column OAL
add column CBL

MARKET IS NASDAQ 100
SORT COLUMN 10 DESCENDING

]



TheRumpledOne
6,362 posts
msg #57286
Ignore TheRumpledOne
12/1/2007 11:32:44 AM

"I WAS WORKING WITH YOUR "DRAW A HORIZONTAL LINE" FILTER AND I NOTICED THAT USING THE OPEN FOR THE EXIT, INSTEAD OF THE CLOSE, YOU NOT ONLY COLLECT MORE OPPORTUNITIES, BUT YOU ALSO CUT YOUR TRADE TIME IN HALF, INSTEAD OF WAITING FOR THE CLOSE, SELL AT THE OPEN. "

I am not understanding what you are saying.

This filter display wasn't about entry/exit.

Perhaps you found something... ;)



contrahawk
68 posts
msg #57335
Ignore contrahawk
12/2/2007 12:46:34 AM

chetron,
"ONE THING I NOTICED WAS THE CLOSE BELOW THE HIGH AND THE CLOSE ABOVE THE LOW STATS WERE VERY HIGH."

Think about this statement a second -----------

Jim



TheRumpledOne
6,362 posts
msg #57360
Ignore TheRumpledOne
12/2/2007 11:40:45 AM

contrahawk:

That's CLOSE BELOW HIGH 1 DAY AGO and CLOSE ABOVE LOW 1 DAY AGO...



chetron
2,817 posts
msg #57368
Ignore chetron
12/2/2007 1:08:02 PM

lol, you're right contra. i did make certain assumptions of the readers. thanks TRO for the correction. i will try to be more exacting in future posts.



contrahawk
68 posts
msg #57378
Ignore contrahawk
12/2/2007 3:34:39 PM

My bad.

Jim

StockFetcher Forums · Filter Exchange · /* High Low Breakout Technique */<< 1 2 >>Post Follow-up

*** Disclaimer *** StockFetcher.com does not endorse or suggest any of the securities which are returned in any of the searches or filters. They are provided purely for informational and research purposes. StockFetcher.com does not recommend particular securities. StockFetcher.com, Vestyl Software, L.L.C. and involved content providers shall not be liable for any errors or delays in the content, or for any actions taken based on the content.


Copyright 2016 - Vestyl Software L.L.C.Terms of Service | License | Questions or comments? Contact Us
EOD Data sources: DDFPlus & CSI Data Quotes delayed during active market hours. Delay times are at least 15 mins for NASDAQ, 20 mins for NYSE and Amex. Delayed intraday data provided by DDFPlus