Previous week high / low (big chart trading)

I recently was going through my signals on the daily charts and noticed that if I chose plays where a signal had taken place "FP or HRFP" and the stock had risen above the "Previous Week High" (PWH) for up signals or below the "Previous Week Low" (PWL) for down signals than the probability of my trade working for $1 increased dramatically. After a signal, it might have taken a day or even a few days for it to move above the PWH or PWL.

On top of that, if I also incorporate the Weekly 8-ma and only trade up on stocks above the 8-week MA or trade down on stocks below the 8-week MA then the probabilities increase even more dramatically!

I'm not suggesting that this is for everyone or for every "season" in trading, but that adding these things helped me to better trade along with the trend. Maybe it might help someone doing big chart trading and encountering inconsistency.

Happy Trading!

VERY INTERESTING, WONDER IF IT IS POSSIBLE TO DISPLAY DIFFERENT TIMEFRAMES ON THE SAME CHART. SUCH AS AN INDICATOR FOR THE WEEKLY 8MA ON A DAILY CHART. THAT WOULD MAKE RESEARCHING THIS IDEA ON A BROAD SCALE MUCH MORE EASY.

I BELIEVE THAT THE MARKET MAKERS EDGE SUGGESTS TRADING ON THE SIDE OF THE 8MA


THIS CHART SHOWS A WHITE CANDLE WHEN A FP/HRFP AND A BREAK OF THE PREVIOUS WEEKS HI/LOW HAPPEN SAME CANDLE. A RED CANDLE INDICATES A CLOSE BELOW THE PREVIOUS WEEKS LOW AND A BLUE CANDLE (I LOVE RED WHITE & BLUE) SHOWS A CLOSE ABOVE LAST WEEKS HIGH. THE DASH LINES ARE THE PREVIOUS WEEKLY HIGH AND LOW





Edited 3 time(s). Last edit at 08/24/2014 06:22PM by mtut.

That's so funny, I recently noticed that same thing and set up a ThinkorSwim Mobile scan for my phone. It also works EVEN BETTER when you have a catalyst to 'drive' it higher/lower such as stock-specific news or Earnings.

Plus the HRFP even works on hourly charts when both the Daily and Weekly are breaking their previous high/low:

Ex.

- HAIN (8/20 at 9:30am)

- GMCR (8/22 at 9:30am)

That's awesome! I continue to use it...my most recent entry is Z. It is acting a little weak today and I am considering exiting. The stock did move up well, but the gains could be temporary.

This approach makes things much more "black and white" for me.

How did you enter it in TOS as a scan?

Here's some instructions that Robert posted a while back. I mainly use Robert's "HRFP Indentifier" and "The Edge" scripts. Robert may want to check and see if I have the scripting correct below.

Also with this scan query set-up, I must have some type of catalyst (ie. Stock-specific news, Earnings, etc.) driving the stock further in my direction before I trade, not merely just a pretty looking chart. TOS Mobile usually shows if one of these catalysts is present under the "News" tab after you click on the stock symbol. No catalyst, no trade.


For DOWN moves:


Timeframe: "1h", "4h", or "D"

# Christmas Cross DOWN
def CCr = Average(close,2);
def CCg = Average(close[3],3);
def C1 = CCr crosses below CCg;

# StochRSI DOWN
def RSI = RSIWilder(length = 13).RSI;
def highestRSI = Highest(RSI, 21);
def lowestRSI = Lowest(RSI, 21);
def RSIS = (RSI - lowestRSI) / (highestRSI - lowestRSI);
def Kpd = Average(RSIS, 3);
def Dpd = Average(Kpd, 5);
def C2 = Kpd crosses below Dpd;

# MACD DOWN
def MACDr = ExpAverage(close,8) - ExpAverage(close,21);
def MACDg = ExpAverage(MACDr,5);
def C3 = MACDr crosses below MACDg;

# DMI DOWN
def DIr = DIPlus(5);
def DIg = DIMinus(5);
def C4 = DIr crosses below DIg or DIg crosses above 10;

# Plot  DOWN
plot signal = C1 AND C2 AND C3 AND C4;

Timeframe: "D"

# Edge Down
def TrendDn = close < average(close,8);
def NSdn = close < close(period = "day" )[1];
def OSdn = close < open(period = "day" );
def Lower = close < low(period = "day" )[1];
plot signal = TrendDn AND NSdn AND OSdn AND Lower;

Timeframe: "Wk"

# Edge Down
def TrendDn = close < average(close,8);
def NSdn = close < close(period = "week" )[1];
def OSdn = close < open(period = "week" );
def Lower = close < low(period = "week" )[1];
plot signal = TrendDn AND NSdn AND OSdn AND Lower;

For UP moves:


Timeframe: "1h", "4h", or "D"

# Christmas Cross UP
def CCr = Average(close,2);
def CCg = Average(close[3],3);
def C1 = CCr crosses above CCg;

# StochRSI UP
def RSI = RSIWilder(length = 13).RSI;
def highestRSI = Highest(RSI, 21);
def lowestRSI = Lowest(RSI, 21);
def RSIS = (RSI - lowestRSI) / (highestRSI - lowestRSI);
def Kpd = Average(RSIS, 3);
def Dpd = Average(Kpd, 5);
def C2 = Kpd crosses above Dpd;

# MACD UP
def MACDr = ExpAverage(close,8) - ExpAverage(close,21);
def MACDg = ExpAverage(MACDr,5);
def C3 = MACDr crosses above MACDg;

# DMI UP
def DIr = DIPlus(5);
def DIg = DIMinus(5);
def C4 = DIr crosses above DIg or DIr crosses above 10;

# Plot  UP
plot signal = C1 AND C2 AND C3 AND C4;

Timeframe: "D"

# Edge Up
def TrendUp = close > average(close,8);
def NSup = close > close(period = "day" )[1];
def OSup = close > open(period = "day" );
def Higher = close > high(period = "day" )[1];
plot signal = TrendUp AND NSup AND OSup AND Higher;

Timeframe: "Wk"

# Edge Up
def TrendUp = close > average(close,8);
def NSup = close > close(period = "week" )[1];
def OSup = close > open(period = "week" );
def Higher = close > high(period = "week" )[1];
plot signal = TrendUp AND NSup AND OSup AND Higher;

Edited 1 time(s). Last edit at 08/26/2014 04:31PM by Dynamike.

Thanks for posting, that's super awesome!