Hello everyone. I have been successfully trading an intraday setup and want to build a scanner to get alerts for the setup. Whenever stocks get really stretched short term, they can have powerful snapbacks. Basically, I look for parabolic moves on the 5min or 15min chart. I find it to work better with at least 5 candles in a row going up/down with big amplitude and thus aggressively. The chart almost describes a straight line(close to 90 degrees). Sometimes, the further the price is from the 20EMA on the 5min timeframe, the stronger the snapback. I then wait for the first opposite-direction candle to print. My entry is the high/low of the candle. I also have a few other criteria as far as how to trade this setup.
I tried building a scanner using ATR but I couldn't have two different aggregation periods.
Here are some pictures of the setup.
Legend
doted blue line is my entry.
long dashed red line is my stop.
yellow, green, purple are 1x, 2x and 3x risk
I tried building a scanner using ATR but I couldn't have two different aggregation periods.
Here are some pictures of the setup.
Legend
doted blue line is my entry.
long dashed red line is my stop.
yellow, green, purple are 1x, 2x and 3x risk
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