Here's another idea... the outsized N day drop allows for trade entry. However, trade entry, once allowed, is only done after close > open and close > yesterday's close. This might save you from a dreaded 9-day falling knife. Another interesting one to test is wait for day of unusually low volume (below some average). Typically volume pi…
Here's another idea... the outsized N day drop allows for trade entry. However, trade entry, once allowed, is only done after close > open and close > yesterday's close. This might save you from a dreaded 9-day falling knife. Another interesting one to test is wait for day of unusually low volume (below some average). Typically volume picks up on these multi-day drops, buying after the frantic selling is done seems like a reasonable alternative. Note: in either of the cases above I've seen ones that fail (just continue dumping after a brief bounce) so I'm not expecting "all winners" out of these ideas, but maybe an improvement on win ratio. Another note: the turn-around bar idea pretty well guarantees entry in the right direction. The volume based idea doesn't, super high volume could persist throughout a turn around... but my guess is this is quite rare (that you don't see volume dry up at some favourable point). For what it's worth, I did this sort of thing to "overweight" trend positions. Worked out rather well (generally added to overall performance). It was RSI/BB%, wait for up day, then hold 'til RSI/BB% allowed exit (high enough), wait for RSI/BB% rollover. Initial stop was same as for underlying trend position. I'm sure I could have improved on such a simple thing. Looking forward to future development here. Cheers.
Here's another idea... the outsized N day drop allows for trade entry. However, trade entry, once allowed, is only done after close > open and close > yesterday's close. This might save you from a dreaded 9-day falling knife. Another interesting one to test is wait for day of unusually low volume (below some average). Typically volume picks up on these multi-day drops, buying after the frantic selling is done seems like a reasonable alternative. Note: in either of the cases above I've seen ones that fail (just continue dumping after a brief bounce) so I'm not expecting "all winners" out of these ideas, but maybe an improvement on win ratio. Another note: the turn-around bar idea pretty well guarantees entry in the right direction. The volume based idea doesn't, super high volume could persist throughout a turn around... but my guess is this is quite rare (that you don't see volume dry up at some favourable point). For what it's worth, I did this sort of thing to "overweight" trend positions. Worked out rather well (generally added to overall performance). It was RSI/BB%, wait for up day, then hold 'til RSI/BB% allowed exit (high enough), wait for RSI/BB% rollover. Initial stop was same as for underlying trend position. I'm sure I could have improved on such a simple thing. Looking forward to future development here. Cheers.