25 lines
890 B
Markdown
25 lines
890 B
Markdown
# Short-Term Highs and Lows
|
|
|
|
The idea for these strategies comes from chapter 2 of [*How Markets Really Work*](https://moshferatu.dev/moshferatu/how-markets-really-work) (2012) by Larry Connors.
|
|
|
|
As with most of the strategies from this book, they are meant to illustrate certain characteristics of the market rather than be traded directly.
|
|
|
|
## Rules
|
|
|
|
**Short-Term Highs**
|
|
|
|
1. Enter a long trade when the market (e.g., SPX or SPY) makes a 5-day, 10-day, etc. high.
|
|
2. Exit the trade after one week.
|
|
|
|
**Short-Term Lows**
|
|
|
|
1. Enter a long trade when the market (e.g., SPX or SPY) makes a 5-day, 10-day, etc. low.
|
|
2. Exit the trade after one week.
|
|
|
|
## Parameters
|
|
|
|
**High / Low Period**: The period to use when determining the highest high / lowest low. (Default: 10)
|
|
|
|
**Long-Term Trend Period**: The period of the long-term trend as measured using a simple moving average. (Default: 200)
|
|
|
|
--- |