This is a trading item or a component that was created using QuantShare by one of our members.
This item can be downloaded and used by QuantShare Trading Software.
Trading items are of different types. There are data downloaders, trading indicators, trading systems, watchlists, composites/indices...
You can use this item and hundreds of others for free by downloading QuantShare.
Top Reasons Why You Should Use QuantShare:
Works with US and international markets (stock, forex, options, futures, ETF...)
Offers you the tools that will help you become a profitable trader
Allows you to implement any trading ideas
Exchange items and ideas with other QuantShare users
Our support team is very responsive and will answer any of your questions
We will implement any features you suggest
Very low price and much more features than the majority of other trading software
Rules that capture the following patterns:
Stock falls from a high to a low within x bars, the high and low of the last y bars
Stock rises from a low to a high within x bars, the high and low of the last y bars
Plotting these rules on a chart help you better understand how they work.
I have done some backtesting and the results I have found is that the higher the high-low periods and the lower the number of bars at which the stock fall or rise from high(low) to low(high), the better the results.
There is a possibility to add some others conditions (that probably will help the return) within these rules, this could be the distance between the high and low or the stock volatility or the volume at the period the stock falls or rises comparing to the total average volume or the average volume between the current bar and the period used for calculating the high and low.
There is a lot of work that can be done; I have only analyzed this rule using an NBar stop for 5-20-40 bars.
The best result was found when the holding period is 5 bars.
Note also that I have applied this stock pattern to the close price, I could I have used any other time-series, relative strength index, rate of change, volatility or any numeric database field data.
If someone found these rules, or any variation of this pattern, helpful for his swing trading system or if someone want to share additional backtesting results, please don't hesitate to drop a comment. Thanks.
You have to log in to bookmark this object What is this?
>>>> More trading objects? click here to search for trading sytems, downloaders, screens, custom drawing tools, indicators... by country, market or style.
