Hey guys, no offense, but I don't see how this is relevant to this thread. In the absence of a significant amount of quantitative data on events like this, it's really impossible to backtest something like this... which is really kind of old fashioned stockpicking. like i said, don't mean to be critical but this is not, to me, representative of what i would consider "best practices" in professional trading. i know there are guys who make money doing this, but it's just not the kind of thing you can really nail down and expect to be consistent with (unless you're one of those old timers who has been consistent like this for a few decades )
See Jack, this is what people are talking about. You have taken something that is crystal clear and very simple and made it complicated and obtuse. For what it's worth, this setup works much more than 1 out of 4 times as you claim. My win is well over 90% with this play over a very large sample size, and it is extremely teachable. It has nothing to do with the arcane technical characteristics of volume and one needs neither a "dom / non dom" nor a "stretch / squeeze sentiment" indicator. All you need is to spend some time watching level 2 and do exactly what I said. It also is really not backtestable unless you have recorded bid / ask and print data for a ton of stocks. Furthermore, you say the level II approach is "moot" because you have taken this very simple little setup (which by the way is probably the best and most simple level II play there is) and made it into a complicated technical setup. Don't do that. It is simple. Unless you are a very specific kind of trader, and I see no evidence from your posts that you have experience trading like this, you do not understand a trade like this. This is pure old school tapereading. Moderator, please clean this thread and close it. I will start another thread (probably tonight) on the risk management topic, but I think this thread has grown into what it was meant to be. Thank you, everyone.