Info!! An Intraday Await At The Transition Trading System

It struck me afterwards writing the recent post service regarding a trading organisation based on transition patterns inwards the stock market that an intraday version of the same organisation would merchandise imitation breakouts past times fading short-term forcefulness (weakness) that showed divergences relative to an before momentum high (low). Influenza A virus subtype H5N1 mutual setup would live on a stronger (weaker) opened upwardly that moves inwards a higher house (below) the previous day's high (low), exclusively to opposite together with merchandise dorsum to the prior day's pin level.

Let's receive got a await at the numbers that brand this a promising footing for a system-assisted discretionary trade. All figures become dorsum to the start of 2000:

* About 51% of all trading days merchandise inwards a higher house their previous day's high; almost 27% of all trading days unopen inwards a higher house their prior day's high;

* About 48% of all trading days merchandise below their prior day's low; almost 25% of all trading days unopen below their previous day's low;

* About 88% of all trading days merchandise either inwards a higher house their previous day's high or below their previous day's low; almost 52% of all trading days unopen either inwards a higher house their previous day's high or below their previous day's low;

* That way that 48% of all trading days volition unopen inside yesterday's toll range;

For the intraday transition setup, you lot would await to yesterday's high (low) equally a potential momentum high (low) together with today's upside (downside) interruption of yesterday's high (low) equally a potential toll high (low) to fade *if* today's high (low) is accompanied past times non-confirmations from iii or to a greater extent than sectors. This includes the 8 S&P 500 sectors that I typically follow each week, equally good equally the NASDAQ together with Russell 2000 indexes, which I'm too treating equally sectors.

The merchandise is to fade today's interruption of yesterday's high (low), amongst yesterday's pin toll equally an initial target. In Market Profile terms, the merchandise is betting that the marketplace rejects value inwards a higher house (below) yesterday's high (low) together with returns to the value surface area of the prior trading day.

I'm farther filtering the designing past times exclusively taking a indicate if the motion inwards a higher house (below) yesterday's high (low) occurs during the offset hr of trade. This is because I desire to create goodness from rejection of value inwards a higher house (below) the prior day's high (low) when institutions are most active inwards the marketplace (i.e., I desire to create goodness from large traders beingness trapped long or brusque together with having to encompass their positions).

Ideal entry would live on on a rising (drop) inwards NYSE TICK that cannot brand novel toll highs (lows), confirming that a high (low) has been position inwards place. Any motion to novel toll highs (lows) for the twenty-four hours would halt out the position. Beyond the initial toll target at the prior day's pivot, a slice of the seat could live on kept inwards house for a farther motion to S1 (R1), depending on the emerging forcefulness of the rejection of novel highs (lows).

As amongst the swing version of the Transition System, I'll live on firming upwardly these rules over time. I'll too live on adding a Momentum System, which I volition outline inwards a post service tomorrow. Once these are built out, I volition post service all signals to the blog/the blending of discretionary together with organisation trading to come; inwards the interim, banking concern tally out Henry Carstens' insightful receive got on this topic.
.