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I posted the following message on the ATI list, which seems to have
become moribund of late. My apologies for the repetition to those
who have already seen it, but I thought I would try it on this much
more active group. I'm doing some backtesting on this pattern now,
and will post the results when I have them. On a first run it looks
like about 70% wins for the buy pattern.
Any ideas would be welcome.
-----------------message follows-----------------------------
I have become interested lately in the idea of daytrading stocks.
Back in May of this year, Randy Tereilo posted (on ATI) a very
interesting article on what he calls a "Field Goal" pattern. I filed
this away, and only now, about a week ago, decided to check it out.
I have built a database of over 6000 stocks (EOD data, Metastock
format), and have written a program to scan this entire database and
report all stocks displaying this pattern, together with their
average daily range and volume. The pattern seems to be pretty rare.
Initially I was looking for long trades only, and got 3 hits on 2
consecutive days, and then none at all on 2 more days, so I added in
the pattern for a short trade. Every signal I have had so far
has been a winner or a break-even, buying/selling 1 tick above/below
the previous day's high/low, but I only have a few paper trades so
far.
After downloading Friday's data (970808) I ran
the scan program and got 7 hits, all of them buy patterns. Here they
are - ATIS, BKS, BMP, CEN, HAS, SWY, WSGC
For those unaware of the pattern, it is a wide-ranging down day, with
the open near the high and the close near the low, followed by a
wide-ranging 'hammer', with open and close both near the high, but
near the previous days low. I would say this late strength after the
strong downdraft Friday should bode well for these stocks Monday,
unless the market tanks again. BMP looks a bit thin to trade, but the
rest of them look OK. Any comments, anyone?
I would also very much like to hear of any other patterns which have
been proved useful in selecting stocks to day trade. Can anyone
comment on the book 'Hit and Run Trading' by Jeff Cooper? The Field
Goal pattern is derived from one of the patterns in the book. I have
paid a lot of money for trading books over the years, but have seldom
learned much useful, and doubt if I would buy even one of them again
if I had it to do over, so I'd like to know if there is 100 bucks
worth in the book. Anyone care to post any of the patterns here?
If there is any interest I would be happy to post my scan results
here each evening for the Field Goal pattern, or for any new ones
members of this forum might supply me with.
One more question - anyone care to recommend a good discount broker
for stocks? I have tried E-Trade, but quit as I found it took much
too long to get a fill report and often I had no idea what my
position and open orders were. I need a broker who will give me a
fill while I hold for a market order, and will call me with a fill
immediately on stops and limits. It would be nice to have stop
orders held for OTC stocks too. Of course I also want low
commissions and good fills!
Good trading to all.
Bob Young
Ft Myers, Fla
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