V.7:11 (387-389): Inside day patterns in the S&P by Toby Crabel

V.7:11 (387-389): Inside day patterns in the S&P by Toby Crabel
Item# \V07\C11\INSIDED.PDF
$3.95
Availability: In Stock

Product Description

Inside day patterns in the S&P by Toby Crabel

Computer studies suggest that inside daysó where the high is lower than the previous ! day's high and the low is higher than the previous day's lowó provide very reliable t entries in the S&P 500 futures market. The basic trading pattern (Figure 1) is an inside day (ID) followed by a sale if the next day's market opens lower or a buy if next day's market opens higher. Entry is on the open and exit is on the same day's close without a stop.

In computerized tests, this basic procedure produced 68% winning trades in the S&P between 1982 and 1987. Total net profit from these trades was $18,000 after an $18-per-trade commission. This is a reasonably high percentage and suggests a strong tendency or bias for prices to continue in the direction of the open the day after any inside day.

Refinements

One simple variation of this patternódiscerning | whether the ID close and next day's open are in the same directionóproduces an even higher percentage of winning trades. In Figure 2a, the ID has a higher close than the previous day and is followed by a higher open. A buy is taken on the open and exited on the close. A sale is taken when the ID has a lower close and is followed by a lower open (Figure 2b).




FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.




Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order