Jack Hershey Method

Yeah, volume does not lead the price in any way where a profitable pattern can be seen. Super easy to backtest.

 

All trades would happen at the close.

If it were truly volume-based you would be able to explain it to anyone in a few minutes. The silly TLs drawn everywhere were just absurd. Dumb on the order of Fibonacci just less interest in the retail trading community.

 

correct. But there is a way to use volume for ultra short trading. Look up ACV threads if interested. But that volume are walls build and pulled on bids and asks.

 

The higher the freq the greater the noise as MMing is such a dominant proportion of HFT. It becomes more and more irrelevant as markets become more efficient. Ask the dude if he still trades ACV (the guy from NYMEX).

 

Anywhere? You only have to look at market Tops and Bottoms to see Volume has some significance.

 

Hello RedDuke,

Thank you for responding.

JH was just a Day Trader who "THOUGHT" or "Assumed" or "idealized: he had a trading method that can make alot of consistent money.

These type Dreaming and Theory Traders without actual proof of their Theory in real time markets with real money or a track record is very dangerous to a trader life and mental and bank account. Very dangerous.

 

Hello HawaiianIceberg,

Nearly 3 hours of a man talking about trading and the man has no real time real money of nothing he is talking about.

No trade never taken.
No equity curve shown
No drawdown shown

No nothing.

Just 3 hours of a man showing a chart talking.

Any man talking to me for 3 hours about making money trading with a trading method or trading idea and not showing me exactly how to make money is getting his ass whipped! It is completely disrespectful to me and my time and my life.

At the beginning of the video he should have stated he makes no money trading and have no proof and this is just something I THINK works, I have no evidence yet just an idea or made up strategy im working on and would like to share the joruney. Then talk for 3 hours. This is the respectful thing to do to an audience of listeners.

Take your trading serious or be poor forever.

 

Jack Hershey’s Method – Python Edition (for the Terminally Incompetent)

Alright, you aspiring market gods and degenerate gamblers, here’s a Python script that lets you play Jack Hershey without having to sacrifice a goat or chant stock symbols under the moonlight. Hershey’s method is basically about milking the market for short bursts of profit by riding natural price cycles. But instead of waiting for a vision from the trading gods, we’ll automate this with some cold, unfeeling Python.

What This Script Does:

• Scans a list of stocks (you can add or change these tickers, geniuses).
• Monitors volume like a creep at a party, looking for that sweet "dry-up" (Hershey’s signal that something’s about to pop).
• Filters stocks based on price (10 to 50 bucks) and volume (500K+ daily, because we’re not wasting time on penny stocks).
• Ranks them into three categories: ‘7s’ (the hotties with the most action), ‘1s’ (the mid-range meh), and ‘0s’ (the dead fish).

Code:

import pandas as pd
import yfinance as yf
from datetime import datetime, timedelta

# Your stock universe. Change these if you think you're smarter.
tickers = ['AAPL', 'MSFT', 'GOOGL', 'AMZN', 'TSLA']

# Date range - last 60 days, because if you need more, you’re probably a historian, not a trader.
end_date = datetime.today()
start_date = end_date - timedelta(days=60)

stock_data = []

for ticker in tickers:
    try:
        # Fetch historical data from Yahoo Finance (because free is our price point)
        data = yf.download(ticker, start=start_date, end=end_date)
 
        # Make sure we have enough data to work with
        if data.shape[0] < 30:
            continue
 
        # Calculate average volume and rolling volume
        avg_volume = data['Volume'].mean()
        data['AvgVol5'] = data['Volume'].rolling(window=5).mean()
        data['AvgVol30'] = data['Volume'].rolling(window=30).mean()
 
        # Dry-up condition (5-day volume is a sad little fraction of 30-day volume)
        data['DryUp'] = data['AvgVol5'] < (0.5 * data['AvgVol30'])
 
        # Volume change percentage, because volatility is life
        data['VolChangePct'] = data['Volume'].pct_change() * 100
 
        # Grab the latest data point, you lazy sack of pixels
        latest = data.iloc[-1]
 
        stock_data.append({
            'Ticker': ticker,
            'LatestClose': latest['Close'],
            'AvgVolume': avg_volume,
            'DryUp': latest['DryUp'],
            'VolChangePct': latest['VolChangePct']
        })
 
    except Exception as e:
        print(f"Error processing {ticker}: {e}")

# Dump all this into a DataFrame because pandas makes us look smart
df = pd.DataFrame(stock_data)

# Filter stocks based on Hershey's strict criteria
filtered_df = df[
    (df['LatestClose'] >= 10) &
    (df['LatestClose'] <= 50) &
    (df['AvgVolume'] >= 500000)
]

# Sort by volume change percentage like the greedy traders you are
sorted_df = filtered_df.sort_values(by='VolChangePct', ascending=False)

# Categorize: ‘7s’ (top 10), ‘1s’ (middle 10), ‘0s’ (bottom 10)
top_10 = sorted_df.head(10).assign(Category='7')
middle_10 = sorted_df.iloc[len(sorted_df)//2 - 5: len(sorted_df)//2 + 5].assign(Category='1')
bottom_10 = sorted_df.tail(10).assign(Category='0')

# Combine them into a final DataFrame
final_df = pd.concat([top_10, middle_10, bottom_10])

# Show your final sorted list of winners, losers, and the clueless middle
print(final_df[['Ticker', 'LatestClose', 'AvgVolume', 'DryUp', 'VolChangePct', 'Category']])

How to Use This:

1. Make sure you’ve got Python installed.
2. Run yfinance pandas because you live in the 21st century. If you're running this on your local machine, run the following command in your terminal:
   Code:

   pip install yfinance pandas

   Once installed, you can run the script normally. If you're using an online compiler, switch to one that supports external libraries, such as Replit, Jupyter Notebook (Anaconda), or Google Colab.
3. Copy-paste the above script into your IDE, and pretend you’re a trading genius.
4. Adjust the tickers if you’ve got other favorites. Go crazy. Pick meme stocks. Whatever.
5. Try not to lose your rent money.

Pro Tips:

This is the bare-bones version. You want live alerts, automated trades, or a direct line to Satan? Go ahead and build it on top.

Don’t come crying to me when you misread a signal. Jack Hershey was a pro. You’re just a script kiddie until you’ve blown up your account a few times.

TL;DR (For Those Too Damn Lazy to Read):

• It grabs stock data for the last 60 days from Yahoo Finance.
• It calculates a "dry-up" condition (where volume is comically low).
• It ranks stocks based on their volume surge after a dry-up.
• It sorts them into ‘7s’ (hotshots), ‘1s’ (meh), and ‘0s’ (worthless).
• It spits out a table of these ranked stocks so you can pretend to know what you’re doing.

 

That, which is looking for very low volume, usually as well you'll have small bar(s), is a good method.
You can call them key bars.
Key bars can be very high or low volume, very long or short bars, then trade the breakout from there.

 

Entertaining

Missing some key parameters
https://www.elitetrader.com/et/threads/fortes-fortuna-juvat.282311/page-33#post-4459045