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Closes Above/Below 200 Day Moving Average with Double Volume

Description
This is a simple pattern where you buy when price closes above 200 DMA on double 200 day average volume or short when price closes below 200 DMA on double 200 day average volume.

Enter Long/Close Short
Enter long when the day price closes above the 200 DMA and volume is 200% above the 200 day moving average.

Close Long/ Enter Short
Enter short when the day price close is below the 200 DMA and volume is 200% below the 200 day moving average.

Results
Click here to see test results
Results using total equity of $100,000
5% of equity per trade
limit 5% loss on any trade
trailing stop 3 day of maximum loss of profits of 8%
DJIA from 3/2/01 to 3/14/03

Comments
These results can be improved by:
1) entry in direction of major trend
2) better money management
3) adjusting length of entry, stop losses and maximum loss of profits

Code for Metastock users:
Long
(C>Mov(C,200,S) AND Ref(C,-5)<Ref(Mov(C,200,S),-5)) AND C>5 AND V>Mov(V,200,S)*2

Short
(C<Mov(C,200,S) AND Ref(C,-5)>Ref(Mov(C,200,S),-5)) AND C>5 AND V>Mov(V,200,S)*2


 

 

 

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