DOW futures down 300 again

[farmerjohn1324]

I always use yesterday's high / low for short term swing trading decision support.

If we close today under yesterday's low I stay short bias (or start scaling out of underwater swing trades).

If we close inside yesterday's high/low range I hold/stay neutral.

If we close above yesterday's high I am bullish and add to winning swings.

It's simple and I value this approach highly, took me many years and thousands of trades to figure it out

I will back test this for S&P daily since January 2000. I'll do it tonight.

Do you count weekends the same as any other day?

Edit: Your not claiming this method necessarily predicts the next day. You're just saying it predicts near-term. So not sure what to back test.

 

[KCalhoun]

9

I will back test this for S&P daily since January 2000. I'll do it tonight.

Do you count weekends the same as any other day?

Edit: Your not claiming this method necessarily predicts the next day. You're just saying it predicts near-term. So not sure what to back test.

Hi, great idea to backtest, I've never done that. I don't use it to predict, rather as a risk mgmt and scaling strategy. Yes re weekends treat same

Re parameters I trade stocks and ETFs priced $15 - $40/share with minimum volume 1million shares/day with minimum atr/daily range of 1 point or more. If possible test to skip day before earnings releases, I don't hold overnight into those