Hi Traders! I'm testing some intraday strategies and would like some input on the following: Strategy 1 - Selling Tops Intraday on a 1-5 min time frame - How do you determine the entry price of right shoulder (1st lower High) of a Head and Shoulder Pattern. Also, I have noticed over the years that the right shoulder sometimes makes a higher low, equal low or lower low than the left shoulder - Do lower low entries provide the best results? - I seem to have a hard time determining the correct price and getting a good entry on the right shoulder without getting stopped and/or maximizing my entry price - Buying Inverse H&S Patterns also - please see attached charts Strategy 2 - Buying Weakness - Trendline break 1 min time frame -How do you determine the entry and stop price on a 1 minute trend line break chart - Once the chart breaks the trend line and produces an inside bar, I have a hard time determining if this is the bottom or more a move to the downside - I've noticed sometimes the provide excellent results and other times I get stopped out - please see attached charts Please fell free to suggest other strategies that produce good results. Note: I never used any indicators, just price and volume. Thx for your help
On the Trendline break... if the breakout is a gap from the previous day, here is an interesting artical that i found to be useful... Thanks to Dayrl Guppy Speaks... http://www.remisiers.org/guppyspeaks.html
Why don't you backtest it ? If the result is positive, trade it, otherwise forget it. It is so simple.