S&C 2017-01 | Mean-Reversion Swing Trading (Calhoun) by Eugene

Published in January 2017 issue of Stocks & Commodities.

Setup:
1.   Wait for a 5-day close-to-close uptrend.
2.   If the closing prices retrace 50% of the uptrend's distance (± 1 percent) over the next 10 bars, a valid pullback has formed.
3.   Over the next 10 bars, look for the prices to rebound and buy on a stop 50 cents above the retracement price. If this condition hasn’t been met within 10 days, the setup is invalidated.
4.   A second entry is made if first position has been established and the high price breaks through the 15-day highest high price.

Exit:
1.   Exit on a $1 stop loss from the retracement price.
2.   Exit with a profit target at 2 times the retracement distance.

 

 

Author: Eugene
Category: Dip Buyers
Creation Date: 11/30/2016
Licence: Freeware
Availability: Globally
Instructions for Script Download
  1. In Wealth-Lab client software, open the Strategy Explorer (Ctrl+O)
  2. Click the "Download..." button
  3. Click "Begin Download"