Over the next several months, I am going to be exploring Carter's LOHP and HOLP swing trading strategies, which are price-based rather than indicator-based techniques.
In simple terms, LOHP entails shorting stocks or markets after the price hits a 20-day high and then on a subsequent day closes below the low of the high bar. HOLP entails going long after price hits a 20-day low and then on a subsequent day closes above the high of the low bar.
DE is a good example of LOHP. On January 3, DE hit a 20-day high and then on January 4, the price closed below the low set on January 3.
DUG is a good example of HOLP. On January 3, price hit a new 20-day low, then on January 4, the price closed above the high set on January 3.
The goal of the strategy is to catch reversals as they happen, rather than waiting for an indicator to give a signal after the move is well underway.
Not sure when I'll start pulling the trigger on trades, but I will keep you posted on my experiences with this technique as I implement it.
3 comments:
Mr. Wood,
You are in the doghouse for not checking your emails!
:(
Or have you changed email addys and did not let me know?
waaaaaaa!
What did I do?
When did you send an email?
Resend and I promise to respond if I get it.
I resent them 2 days ago. Have you changed your email addy?
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