catching a wide range entry bar - swing or day trading
I've been doing quite a bit of backtesting lately on daily charts as training and making quite a bit of notes. One corellation I'm still trying to get a grip on is how to get a wide range bar (a bar that is 1.5 to 2 times larger then a typical bar) at the entry.
In general what I've found is that at major daily market pivots, the stocks that start a new swing up from a WRB (wide-range bar) typically have stonger and more reliable swings vs. those which do not have WRB's. Thus, the profit potential is greater and chances of a stop-out are considerably less.
It also gives a greater piece of mind at the start when my lift off bar is a WRB and
I can place a BE stop once it is comlete or at the very latest on the next bar.
So far what I have so far is the following to maximize the chances of getitng into a trade that starts off of a WRB:
1. The weekly chart has to be starting a swing up of it's own, and the daily pivot being considered is in the beginning of the weekly swing up.
2. The volume on the last swing has to have been substantial, indicating that smart traders are buying that particular dip, and the chances are high that the same ones will be here again at this dip to add to the position.
3. Last swing up was cleaner and stronger than other stocks.
The combination above helps, but it does not get me as many WRB entries as I'd like to have.
Has anyone noticed something I'm missing? I'd appreciate any suggestions/ideas.
I recall one of Ron Wagner's DVD's (Ron used to work at Pristine). He mentioned that majority of his trades have a wide range lift-up bar that gets him in, but he did not go into detail of what he looks for. Anyone know?
By the way, if you day trade, would love to hear from you as well on this topic. Charts patterns are very smiliar on the daily and intraday, so if you've noticed something intraday that would help, would love to hear back.
Thank you.
I've been doing quite a bit of backtesting lately on daily charts as training and making quite a bit of notes. One corellation I'm still trying to get a grip on is how to get a wide range bar (a bar that is 1.5 to 2 times larger then a typical bar) at the entry.
In general what I've found is that at major daily market pivots, the stocks that start a new swing up from a WRB (wide-range bar) typically have stonger and more reliable swings vs. those which do not have WRB's. Thus, the profit potential is greater and chances of a stop-out are considerably less.
It also gives a greater piece of mind at the start when my lift off bar is a WRB and
I can place a BE stop once it is comlete or at the very latest on the next bar.
So far what I have so far is the following to maximize the chances of getitng into a trade that starts off of a WRB:
1. The weekly chart has to be starting a swing up of it's own, and the daily pivot being considered is in the beginning of the weekly swing up.
2. The volume on the last swing has to have been substantial, indicating that smart traders are buying that particular dip, and the chances are high that the same ones will be here again at this dip to add to the position.
3. Last swing up was cleaner and stronger than other stocks.
The combination above helps, but it does not get me as many WRB entries as I'd like to have.
Has anyone noticed something I'm missing? I'd appreciate any suggestions/ideas.
I recall one of Ron Wagner's DVD's (Ron used to work at Pristine). He mentioned that majority of his trades have a wide range lift-up bar that gets him in, but he did not go into detail of what he looks for. Anyone know?
By the way, if you day trade, would love to hear from you as well on this topic. Charts patterns are very smiliar on the daily and intraday, so if you've noticed something intraday that would help, would love to hear back.
Thank you.
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