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Designing and testing a pattern-based trading system
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AT-January 2008-1
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We expand a study of multi-day highs and lows into a promising short-term reversal system.
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Detailed Description
A recent article ( Market facts: Three-day pivots, Active Trader, August 2007) analyzed 10 years of S&P 500 data and showed Monday was most often a three-day pivot high between April 16, 1997 and April 11, 2007, while Wednesday was most often a three-day pivot low during this period. This article takes the analysis a little further and develops a technique for turning those observations into a trading system.
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