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3 Day Hammer Stocks
2 Day High With Volume Spike
Description This is a simple pattern with an increase in volume.
Enter Long/Close Short Enter long or close short when the day price closes above the high
of the last two days and volume is 175% above the 20 day moving
average.
Close Long/ Enter Short Close long or enter short when the day price close is below the
low of the last two days and volume is 175% above the 20 day moving
average.
Results Results using 5% of equity per trade
using the DJIA from 1/5/1990 to 10/4/2002 ranged from
Stock
Annualized
Annual %
Buy & Hold
Annual %
Total Trades
Total Profitable Trades
Average Profit
Average Loss
GM
5.27
-.78
30
20
139.69
-89.99
AA
2.00
.39
46
14
86.45
-92.28
Code for Metastock
users: Long
state:=If(BarsSince(C>Ref(H,-2) AND (V>1.75*Mov(V,20,S)))<BarsSince(C<Ref(L,-2)
AND (V>1.75*Mov(V,20,S))),1,0);
state=1 AND Ref(state,-1)=0
Short
state:=If(BarsSince(C>Ref(H,-2) AND (V>1.75*Mov(V,20,S)))>BarsSince(C<Ref(L,-2)
AND (V>1.75*Mov(V,20,S))),1,0);
state=1 AND Ref(state,-1)=0
