A lot of trades are watching Daily SMA 100 and treat that as a resistance level. I should say I do exactly the same...
I always wanted to measure that quantitatively so that I can trade based on the signal more confidently. Below is an example of the bounce I'm talking about:
To quantify SMA 100 I backtested the idea of bouncing off Daily SMA 100 and going down.
Each day I'm looking for stocks which
Disclaimer: all calculations made using BreakingEquity
I always wanted to measure that quantitatively so that I can trade based on the signal more confidently. Below is an example of the bounce I'm talking about:
To quantify SMA 100 I backtested the idea of bouncing off Daily SMA 100 and going down.
Each day I'm looking for stocks which
- Belong to iShares Semiconductor ETF $SOXX
- Have been trading near SMA 100 on daily (97-103% range)
- Stock price bounces off SMA 100 on Daily
- Price is going down for 3 bars after at least
- Price crosses above EMA 50 and stays there for 5 bars or Price crosses above SMA 100 on Daily
- Stop loss 1%
- Gain is reinvested the next day
- Loss reducing the buying power the next day
- If there are multiple candidates buy the one with highest relative volume vs 10min average
| 2022 (as of Jan 22) | 2021 | 2020 | 2019 | 2018 |
| +9.8.% | +34.23% | +0.96% | +13.61% | +21.18% |
Disclaimer: all calculations made using BreakingEquity