30-Min High & Low Breakouts/Breakdowns

Discussion in 'Strategy Development' started by learninglisted, Jul 23, 2003.

  1. Palward,

    Good posts thanks for the info.

    How do you enter the trade... with a buy/sell stop?

    How long do you wait for the stock to break its 30min hi/lo. Do you only take trades if the 30min bar is broken immediately by the next bar.. or is it OK to wait a few more bars?

    What do you think is the max time allowed to wait before the first 30min bar is broken.

    #21     Aug 5, 2003
  2. palward

    palward Guest


    I totally agree with you on this matter, I think you have look at key support and resistance levels for the trade, if I see too much over head resistance on a stock I will pass and look for another, I often look at the sectors, and the breadth (tick, trin, adv-decvol etc) of the the overall market to give me a feel for the day. With that being said there always seem to be a few stocks everyday in a league of their own. I have created some spread sheets in regards to strong trending stocks after several days of pulling back and the odds do tilt in your favor with this method if the stock has enough clean air to move.

    Trend Fader

    I get in once the high is broken by several trades, and I get in as soon as I can, I am always afraid of missing the boat and sometimes I end up with a few arrows in my back if you know what I mean. The entry on this trade holds well after 10 am, for example if the stock is consolidating nears its high and it doesn't breakout until 11 am, by this time of the day the market has usually decided which way it's going and therefore less chance of a market reversal. However I personally do not like getting these types of trades after 11:00 am, the doldrums scare me.
    My best trades using this method usually happen pretty quick, I have been tempted to use a time stop aswell but have yet to do so. I have been testing a trailing stop with this method aswell and on paper it seems to reduce my risk by half even though I will get stopped out more, giving me 2:1 risk reward ratio while leaving the original profit target the same, and it reduces my win % to around 57-58% which is OK if you can stomach the drawdowns. Let me know if you have any more questions.

    #22     Aug 5, 2003