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3 Day Hammer Stocks
Jeff Cooper's
Expansion PivotsTM
This is another great
stock selection system by Jeff Cooper.
Basically he noted that
when a stock trades about its 50-day moving average, it will
suddenly move to the upside or downside. He attributes these moves
to money managers that are attracted to stocks using the 50-day
moving average as either a support or resistance level.
Setup for Longs
Today's range (absolute value of
H-L or of the ATR) is greater than the daily range of the past 9
days.
Either today or yesterday, the
stock was trading at or below the 50DMA and moves higher
Tomorrow, buy stop .1 above
today's high
Stop, 1 point below yesterday's
low
Setup for Shorts
Today's range (absolute value of
H-L or of the ATR) is greater than the daily range of the past 9
days.
Either today or yesterday, the
stock was trading at or above the 50DMA and moves higher
For
those using Metastock, below is the code for the stock selection.
Expansion
Pivots Buy
A:=Close
B:{Breakout}(H-L)>ATR(9)
C:{Signal}Ref(C,-2)<=Mov(C,50,S) and
Ref(C,-1)>Mov(C,50,S) OR Ref(C,-1)<=Mov(C,50,S) and
C>Mov(C,50,S)
D:{entry}HHV(H,2)+.125
E:{Stop}If(Ref(C,-2)<=Mov(C,50,S) and
Ref(C,-1)>Mov(C,50,S),Ref(C,-1)-1,If(Ref(C,-1)<=Mov(C,50,S)
and C>Mov(C,50,S),C-1,0))
Filter:ColB and ColC
Expansion Pivots Sell
A:=Close
B:{Breakout}(H-L)>ATR(9)
C:{Signal}Ref(C,-2)>=Mov(C,50,S) and
Ref(C,-1)<Mov(C,50,S) OR Ref(C,-1)>=Mov(C,50,S) and
C<Mov(C,50,S)
D:{entry}LLV(L,2)-.125
E:{Stop}If(Ref(C,-2)>=Mov(C,50,S) and
Ref(C,-1)<Mov(C,50,S),Ref(C,-1)-1,If(Ref(C,-1)>=Mov(C,50,S)
and C<Mov(C,50,S),C-1,0))
Filter:ColB and ColC