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corylee4870

Finding ABCD's on a reversal scanner

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I'm running a standard reversal scanner to alert me of a new 5 minute high or low.

If 20 SMA is above 200 SMA, alert me of a new low.

If 4 consecutive 5 minute candles, alert me of a new low.

If 2 consecutive 15 minute candles, alert me of a new low.

If 1 consecutive 30 minute candle, alert me of a new low.

The opposite is true for bottom reversals and reverse ABCDs.

 

Here are my rules right now -

Top Reversals/ABCD - I was just alerted of a new 5 minute low

- Long at the next 5 minute high that is above the 8 SMA on the 2 & 5 minute charts 

- OR

- Short at the 15 minute low if price is below the 8 SMA on the 2 & 5 minute charts

 

Bottom Reversals/Reverse ABCD - I was just alerted of a new 5 minute high

- Short at the next 5 minute low that is below the 8 SMA on the 2 & 5 minute charts

- OR

- Long at the 15 minute high if price is above the 8 SMA on the 2 & 5 minute charts


Once I start watching the stock, I start looking at bigger time frames for levels of support or resistance.  If there is a resistance level very close I will probably wait to take the trade until it crosses it.

Sometime's the trend seems to continue, but this is a reversal scanner so be ready for a reversal.  Maybe I should look for two consecutive 5 minute candles and a new 2 minute hi/low, but I think that would be too many alerts.

I'm pretty new.  I feel like this is a fairly simple strategy and I have been successful with it in the few days that I have used it.  I would like to hear if you have any suggestions to improve on this.  I don't have my stop loss and profit taking indicators nailed down yet.

 

Here are several examples from today.  

 

image.thumb.png.e8bf945772a312a1c47cb5ccbd9bd47b.png

 

image.thumb.png.611e480a466aa56ecfee0acad42fdd16.png

 

image.thumb.png.f09a50a23146756db4867e2ab7727362.png

 

image.thumb.png.fcb88f656ff466b4fb1a60a04edfe5eb.png

 

image.thumb.png.864f732070b64331a0c1cd366937f9c0.png

 

 

 

image.thumb.png.502dfa923386e3ecbed20c44e5c714f3.png

 

image.thumb.png.af16bf98cf3435e717c3f0b0f163b36b.png

 

image.thumb.png.8918ce7c7f1e871096c0c470a705794a.png

 

image.thumb.png.cd6a4e193a5f5764d092bfb44dd7c509.png

 

 

 

 

 

These last two are reversals. 

Long at the 15 minute Hi with the price above the 8 SMA  on the 5 & 2 minute charts

Short at the 15 minute Low with the price below the 8 SMA on the 5 & 2 minute charts

image.thumb.png.262fe775774c01c38a56c88aecc1314a.png

image.thumb.png.53d6c596e1c5015b7c8be2e5517e354f.png

 

 

 

 

 

 

Edited by corylee4870

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