Looking for Reversal Entries

[Rapunzel]

5-25 and 6-7 would be ideal for a buy with TP close to the moving average. When the price is ranging in a narrow channel.

 

[easymon1]

5-25 and 6-7 would be ideal for a buy with TP close to the moving average. When the price is ranging in a narrow channel.

Using this chart as your sole source, any other reversals that you see?
You see a total of two reversals on that chart?

 

[Rapunzel]

No...those are examples of the moments that I want to trade. When the price is ranging in a narrow belt around the sigmas and moving average. I'm not looking for other situations like 5-12 etc...

 

[DevBru]

No...those are examples of the moments that I want to trade. When the price is ranging in a narrow belt around the sigmas and moving average. I'm not looking for other situations like 5-12 etc...

You keep mentioning sigmas, what are you referring to?

 

[Rapunzel]

St Deviation in 50 bars. 2 StDevs (Sigmas)

 

[Rapunzel]

Using this chart as your sole source, any other reversals that you see?
You see a total of two reversals on that chart?

Mean Reversion may be a better strategy.

 

[easymon1]

Mean Reversion may be a better strategy.

Have you generated for yourself some priliminary numbers on the percent of situations that you speak of which result in a reversion vs a continuation?
It might be worthwhile to take a look at a dozen instances where past situations occur and check to see if a the simplest of candlestick patterns occur more often in the successful instances than otherwise. In this case, you may want to find a couple of simple candlestick continuation and a couple of simple reversal candlestick patterns.
What's the dif between St Deviation in 50 bars. 2 StDevs (Sigmas) and bolinger bands on a 50 bar moving average centerline?

 

[AndrewMcCalam]

thanks for your nice detail. got some fine lines.

 

[tomorton]

Ideally something in a flat market, where the price is ranging between the two sigmas. So a buy would be when the price is below the SMA and near the sigma 2 or somewhere like that.

For price trading sideways in a range, what about Donchian?
Its not a new idea.............

 

[Rapunzel]

Looks interesting. Just finished the the entry logic, trying to extract edge from the basic entries now, thank you. I will definitely look at it.