# choose to scan up down gaps # 1 = Only up gaps # 2 = Only down gaps # 3 = BOTH up and down gaps input GapDirection = 3; #set min max gap size you would like. input minimumPercentFromPriorClose = 1.0; input minimumDollarsFromPriorClose = 1.0; input MaximumPercentFromPriorClose = 100.0; input MaximumDollarsFromPriorClose = 100.0; # makes sure there is a gap between the currentprice and the prior High/low, not just from the prior close input OutsideYesterdaysRange = no; #Looks for only gaps that are gapping up over red candle or gapping downsideGapThreeMethods under green candle, in addition the other criteria, Some people believe this adds "shock value" and forces people to cover their positions, adding momentum in the direction of the gap. input GapAboveRedOrBeLowGreen = no; # choose to only look for gapsthat havent filled yet interday input OnlyGapsThatHaventFilled = no; # if set to yes then scan will only consider a gap to be filled id the current days price action has touch previous days close. input GapIsOnlyFilledAtClose = yes; #Only change these if you are dealing with special marketor know what your doing input MarketOpenTime = 0930; input MarketCloseTime = 1600;
You nailed it! When I watched the video I had the same thought process as you. I think you covered on how to take a trade the next part is to find a scanner and voila! Easier said than done but great job man. We have awesome programmers here and I hope they will figure this out.Pivot lines, not ATR?
He starts discussing actual trades in this video at about 11:15 mark. He repeated says he waits for trades to come to him. He may have only one trade for a given day, but that's fine. Some traders have only 2 trades in a week. Don't work to make a trade every day. Sometimes the set up occurs in the first hour, but sometimes in the last hour. He does not recommend sitting and waiting in between those hours. Wasted time, and hard on your butt! The set up has to occur WITH NO CATALYST GOING ON. No conf call, no news, no product news, no regulatory news, etc. This lack of catalyst is what allows for extreme surges to come back to the mean. If there is a sudden move during the middle of trading day, he suspects there is likely a catalyst known. You have to take that into account in subsequent surges at end of day or next start of day.... be careful. He even says YOU SHOULDN'T EVEN BE TRADING IN THE MIDDLE OF DAY ON THESE SURGES. He admits that a trading strategy success may stop working. He's had success with a strategy that stopped working and he subsequently lost a lot of money when he tried to continue to use the same past successful strategy... But he thinks this first hour and last hour FEAR and GREED based strategy has been more successful. He repeats that a trader new to this strategy SHOULD NOT BE TRADING IN THE MIDDLE OF DAY. He says "ALWAYS, ALWAYS, ALWAYS ASK YOURSELF: Where it the stock coming from and how fast??" The example with CVX, at about 28:00 mark, he showed a drop from $78 to $74 in about 30 minutes in the middle of day. His experience allowed him to take a rebound trade from the $74 to profit about $2/sh. But he does not recommend such mid-day trading for traders new to this surging price and reversion action because many times some catalysts is released and that can screw the price reversion action.
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