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Strategies & Market Trends : Metastock 6.0 for Window

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To: Greg Butcher who wrote (1089)11/19/1997 10:53:00 PM
From: Craig DeHaan  Read Replies (1) of 4056
 
Point well taken. To narrow the field and bolster the odds in your favor, try adding in some other extremely located ob/os trading indicators to the exploration for additional confirmation; like multiple StochRSI time frames, CCI(13), DMI (Dynamic Momentum Index) and, as Richard pointed out earlier, you may well have some 1-5 day profitable trades before the gaps are filled, although I'd get real nervous after 3 days running in my favor.

Also you might want to qualify the gaps as having value differences greater than very small fractions. Change the 0 to .25 or .375, etc. Sometimes mere bid/ask disparities between trading days will appear that aren't what it sounds like you're looking for. Let us know of further developments. Be careful. There could be potential treachery in some of them there assumptions.
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