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A.
1. Today’s price should be greater than the close 30 days ago so we are in
some sought of uptrend .
2. Next we would like to have seen a slight pull back against the uptrend so
we will want today’ close lower than the close 9 days ago.
3. If this condition exists, we will buy on Monday (One of TDW)
4. Accuracy = 59 % with a huge profit
B.
1. Consider an outside day with a down close, where the day’s high is
greater than previous day’s high and low is lower than the previous
day’s low and also the close of the outside bar should be lower than
the close of previous day’s close.
2. Now this pattern can be a very bullish pattern
3. The outside day follows the direction of tomorrow’s opening, thus if
tomorrow’s opening is below outside day’s down close, we buy on
the next day.
4. Accuracy= 89% if bought on Any TDW.
A very Strong setup, but the problem is this pattern does not
occur very often. So next time when you see this outside day with
a down close lower than the low of previous day, get ready to buy.
C. First Smash day
1. We will now look for any day that closes below the previous day’s low and is
preceded by two consecutive down closes making it a third down day in a row.
2. Such days may take out the previous 3 to 8 day’s low as well. This looks like
a breakout to downside to all chartist, thus extreme selling brings them to the
table.
3. Some times they are right, but usually dead wrong if the market
immediately reverses itself.
4. If the very next day price moves opposite the smash day and trades above
the high of a down close smash day you have great buy signal