Hello Chris,
Take a peak at Krausz's end of day work:
fibonaccitrader.com
Reading the free trader journal will provide a nice overview of his basic system.
The weekly chart establishes the basic trend (as I believe it should) for daily investing/trading. To swing up or down takes two higher highs or lows. He sells a program that draws in all the swinglines -- or if you're too tight like me<g>, it's easy to spot two higher highs or lows.
Krausz wants peaks to pass previous peaks for an uptrend to start or valleys to pass previous valleys for a downtrend.
Pull up the 100 stocks in the NDX (what better way to see if something picks uptrending stocks in a downtrending index). On the daily charts put in a 20 dsma and a 150 dsma. On the weekly put in a 4 bar sma and a 30 bar sma. Start flipping. Notice on the weekly charts that very often when the 4 bar passes through the 30, (on the daily the 20 thru the 150) it meets the criteria that Krausz has established for an uptrend (peak passing the previous peak). Then, if the weekly chart is uptrending, you can look for daily swing charts that meet his buying criteria.
Krausz has two basic buy setups. If the weekly is uptrending, then buy 1) an upswing when the daily close is a couple of ticks above the 3 day ma of the highs, or 2) a penetration of a previous peek.
Try this basic scan for 1 above. (Scans for daily charts that were in a Gann downswing and have just swung up. You must visually determine if they have passed the previous peak and are uptrending on their daily chart. If the weekly is up -- that is usually the case.)
(H3 > H2 AND H3 > H1 AND L3 > L2 AND H2 < H1 AND L2 > L1 AND H1 < H AND L1 < L AND (C + .25) > AVGH3.1) OR (H4 > H3 AND L4 > L3 AND H3 > H2 AND L3 > L2 AND H2 < H1 AND L2 < L1 AND L2 < L AND H1 < H AND (C + .25) > AVGH3.1) AND AVGC20 > AVGC150
I've experimented with numerous scans and this catches the majority of Gann downswings swinging up off the bottom. Short scan is reversed.
Have combined them with P&F charts for price objectives. Stops can be with the P&F chart or as Krausz details.
If you experiment with it and find a better scan for determining a weekly peak passing the previous peak -- pass it back (anyone?)
Here's a few from Friday: SWTX, ASA, CTEC, WPS, CTU, MATK, TCT, G, etc etc. There were 26 in all.
Take care,
Eric |
