Hi goredskins.
I look for 7 swing patterns, each of which could be long or short, plus I am experimenting with taking a reverse position based on the first 30-min bar of the day. But the swing patterns are the mainstay of my trading. Below is from my memo sheet that gives me a shorthand note as to the set-up to look for in advance of each trading session - 80-20's, Whiplash and 3-day unfilled gap reversals are form Rashcke & Connors, key reversals are well known but unattributed, Shuttle 14 is mine and the Swings are based on Rivalland. These are just notes, there is obviously more to it in each case -
80-20 Daytrade Long - Price trades below previous low after deep yin day, then recovers. If O1>80% of Range1 + C1<20% of Range1, + L2<L1, Buy @ L1. Tight stop. Exit by C2.
80-20 Daytrade Short - Price trades above previous high after strong yang day, then collapses. If O1<20% + C1>80% of Range1, + H2>H1, Sell @ H1. Tight stop. Exit by C2.
Whiplash Long - Gap down, then strong rally. If O2<L1 + C2>O2 + >50% of Range2, Buy @ C2. Use tight trailing stop.
Whiplash Short - Gap up, then strong retreat. If O2>H1 + C2<O2 + <50% of Range2, Sell @ C2. Use tight trailing stop.
Shuttle 14 Long - Weaker close, but does not breach 14MA. C2<C1, both >14MA, which is positive. Buy @ C2. Exit at C3. Stop (FTSE100 only)1.5% below entry.
Shuttle 14 Short - Stronger close, but does not breach 14MA. C2>C1, both<14MA, which is negative. Sell @ C2. Exit at C3. Stop (FTSE100 only)1.5% above entry.
Key Reversal Long - Outside day with close above prior range. If L2<L1 + C2>H1, Buy @ C2. Stop @ L1 or use trailing stop.
Key Reversal Short - Outside day with close below prior range. If H2>H1 + C2<L1, Sell @ C2. Stop @ H1 or use trailing stop.
3-Day Unfilled Gap Reversal Long - Unfilled gap down. If H2<L1, place Buy order @ >H2, valid for next 3 days only. Stop @ L2.
3-Day Unfilled Gap Reversal Short - Unfilled gap up. If L2>H1, place Sell order @ <L2, valid for next 3 days only. Stop @ H2.
Swing Long - 3-day pull-back in uptrend. Buy on Day 4 at H3 after 3 days with lower L and lower H, if L4>L3. Stop at L3. (Buy after 2 days if chart confirms low, especially candlestick pattern or pin bar.)
Swing Short - 3-day rally in downtrend. Sell on Day 4 at L3 after 3 days with higher H and higher L, if H4<H3. Stop at H3. (Sell after 2 days if chart confirms high, especially candlestick pattern or pin bar.)
ID/NR4 - Inside day, range narrowest of last 4. If L2>L1 + H2<H1, place Buy order @ >H2 AND Sell order @ <L2, valid next session only. Exit at second close after triggered, or use tight training stop.
The tricky bit comes when two patterns give opposing directions for entry. I have been known to take both, closing out the one that under-performs.
Best wishes.
I look for 7 swing patterns, each of which could be long or short, plus I am experimenting with taking a reverse position based on the first 30-min bar of the day. But the swing patterns are the mainstay of my trading. Below is from my memo sheet that gives me a shorthand note as to the set-up to look for in advance of each trading session - 80-20's, Whiplash and 3-day unfilled gap reversals are form Rashcke & Connors, key reversals are well known but unattributed, Shuttle 14 is mine and the Swings are based on Rivalland. These are just notes, there is obviously more to it in each case -
80-20 Daytrade Long - Price trades below previous low after deep yin day, then recovers. If O1>80% of Range1 + C1<20% of Range1, + L2<L1, Buy @ L1. Tight stop. Exit by C2.
80-20 Daytrade Short - Price trades above previous high after strong yang day, then collapses. If O1<20% + C1>80% of Range1, + H2>H1, Sell @ H1. Tight stop. Exit by C2.
Whiplash Long - Gap down, then strong rally. If O2<L1 + C2>O2 + >50% of Range2, Buy @ C2. Use tight trailing stop.
Whiplash Short - Gap up, then strong retreat. If O2>H1 + C2<O2 + <50% of Range2, Sell @ C2. Use tight trailing stop.
Shuttle 14 Long - Weaker close, but does not breach 14MA. C2<C1, both >14MA, which is positive. Buy @ C2. Exit at C3. Stop (FTSE100 only)1.5% below entry.
Shuttle 14 Short - Stronger close, but does not breach 14MA. C2>C1, both<14MA, which is negative. Sell @ C2. Exit at C3. Stop (FTSE100 only)1.5% above entry.
Key Reversal Long - Outside day with close above prior range. If L2<L1 + C2>H1, Buy @ C2. Stop @ L1 or use trailing stop.
Key Reversal Short - Outside day with close below prior range. If H2>H1 + C2<L1, Sell @ C2. Stop @ H1 or use trailing stop.
3-Day Unfilled Gap Reversal Long - Unfilled gap down. If H2<L1, place Buy order @ >H2, valid for next 3 days only. Stop @ L2.
3-Day Unfilled Gap Reversal Short - Unfilled gap up. If L2>H1, place Sell order @ <L2, valid for next 3 days only. Stop @ H2.
Swing Long - 3-day pull-back in uptrend. Buy on Day 4 at H3 after 3 days with lower L and lower H, if L4>L3. Stop at L3. (Buy after 2 days if chart confirms low, especially candlestick pattern or pin bar.)
Swing Short - 3-day rally in downtrend. Sell on Day 4 at L3 after 3 days with higher H and higher L, if H4<H3. Stop at H3. (Sell after 2 days if chart confirms high, especially candlestick pattern or pin bar.)
ID/NR4 - Inside day, range narrowest of last 4. If L2>L1 + H2<H1, place Buy order @ >H2 AND Sell order @ <L2, valid next session only. Exit at second close after triggered, or use tight training stop.
The tricky bit comes when two patterns give opposing directions for entry. I have been known to take both, closing out the one that under-performs.
Best wishes.
