StockFetcher Forums · Filter Exchange · Price action. Establish low, identify buyers present, place your bets that the low will not be broken<< >>Post Follow-up
76 posts
msg #104869
Ignore Venice
2/8/2012 10:56:56 AM

Here the idea is that we have identified a stock that is bouncing off it's current days lows. This implies the presence of buyers.

This seems to show good results for the last several weeks, however, the markets have been in bull mode to no end.

Place orders between buy_low and buy_high, with buy_pref being the average.
Stops are placed at stop_price

Call me crazy for buying a down candle, but I love my risk/reward ratios. That's what makes one survivable in this business.

/* Find stocks that have recovered at least 4% off of their lows */
SET{BOUNCE, low*0.04}

/* Stops are 1% below the lows */
SET{STOP, low*.01}

/* Buying zones */
SET{BUY_MARK, close+low}
SET{BUY_HIGH, close}

/* Criteria selection */
Average Volume(30) above 500000
price above 1
close above MARKER

/* Bear Candle */
close below open

add column BUY_LOW
add column BUY_PREF
add column BUY_HIGH
add column STOP_PRICE

4,599 posts
msg #104876
Ignore Kevin_in_GA
2/8/2012 4:25:39 PM

And what is the exit? Can't backtest without one.

76 posts
msg #104881
Ignore Venice
2/8/2012 5:39:52 PM

Generally, I look for the flip side of the entry. A high is established and it is failing to be broken.
Or a new low on a recently established daily low.
Or when you decide your done being greedy enough for the current play? hah.

This may be more beneficial if this is combined with another method. I generally read price in a 'supply / demand' style. Which means I like to see this happening in a demand zone for this particular filter. The exit is generally the nearest supply unless price just absolutely blows through it.

I'm not sure how exactly you would define supply/demand programatically though.

749 posts
msg #104892
Ignore miketranz
2/9/2012 4:34:40 PM

Venice,my advice would be to buy the next day only if two conditions occur.1) the stock trades .10 or better above the previous days high 2)the stock must be trading in an uptrend,aka 45 degree angle.At the very least,you're entering in a trend resumption and giving yourself the best odds of trading in the right direction.Good luck.....

14 posts
msg #105330
Ignore gpoleman
3/9/2012 8:45:34 AM

Venice, I saw you mention looking at the market from a supply/demand perspective. I do as well. Get my learning from Sam Seiden. How about you? Most traders tend to overlook this way of trading, instead thinking it's too simple and you need something more complicated. Simple supply/demand is what makes any market work and it never changes. However, identifying the correct area of imbalances is the key and they don't teach that in all the trading books. It sounds to me like you have discovered that. If you're like me, it will change your trading life.

StockFetcher Forums · Filter Exchange · Price action. Establish low, identify buyers present, place your bets that the low will not be broken<< >>Post Follow-up

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