open high same strategy - some questions..

dear all .. its very well known that if in a day open high is same for 20 mins ..that day the stock will be bearish .. now if i see a weekly chart starting from monday and select stocks where open high is same ..what are the probabilities that they will be down for full week ?? we can think that for month and year also.. but initially can be on week...

i just request seniors to post their experiences if they have tried this.. and if we make position in 2-3 stocks.. with stoploss of the open and high .. i am sure we can make good profit... by end of the week...

i am starting observation and i will post the stocks every week and by week end we need to see how much we got... ideally if we get 2-3 % per stock i think its enough profit in a week and we should exit the position....

i request all the seniors to provide their views on this ...
recently infosys in last week gave excellent gain in this...

masterstroke

Apparently this looks good.Only thing is how to use this to trade.

I have attached a weekly chart of Nifty.The highlighted candles are the weeks where the Open is within 1% of the low for the green candles or open is within 1% of the high for the red candles.

Need some seniors with sufficient data to back-test and formulate a strategy

thanks amit...hope some seniors will also throw light on this ...

@Masterstroke

I am not sure about what you posted above, as I never heard about this. Will check it by my self, so not can really comment on it. Even than: Here some thing I use and this could give an add to what you use: Dow theory

http://stockcharts.com/school/doku.php?id=chart_school:market_analysis:dow_theory

https://en.wikipedia.org/wiki/Dow_Theory

If it may helps to improve by what you do, then it was worth to post it here.

Somatung

If it seems to be working, I would any day prefer going long in appropriate Options , maybe next month or still later!
For me its not at all comfortable trading Weekly charts !

@ master stroke ..

it is work in intraday very nice

if open =high ....of first half take a short position

if open=low in the first half an hour take long position

STOPLOSS

If you buy then stop loss low + filter and if you sell then stop loss high + filter .

about its past performance .

It work very nicely ....YES ..

its my REAL time trading experience . i trade on this method almost 7-8 month continuously but lack of time i stop it ...cause of i am scalper by profession and this method take my long time to track this stock .

thank you .

about weekly i dont know ....may be it will work ...want to check it .

so more views will be appreciated ..!

still waiting for some more views...

This strategy has 100% hit rate in backtesting. That is because if the high is broken, then Open is not equal to high anymore.

Best wy is to observe it real time and maintain a track record. Then again, how long can it be done. Or else, it has to be manually tested on past intraday charts

masterstroke,

Assuming your open=high=sell and open=low=buy in candlesticks chart:

candlestick analysis is, if a candle with specific shape or a set of candles ( can be 2 or 3 ) with a specific pattern are formed, these shapes or patterns have specific names like doji or dark cloud etc and each type predicts either up or down price action.

Hence a completed candle is used by its form to predict following candles.
But a half formed candle cant be used to predict its full form. The same way 1 or 2 days data is no use to get picture of entire week.

In a weekly candle if open=high = sell is fine as long as open=high.
But once price if it crosses high that candle itself changes.

As rhythm arora said it will have 100% rate in back testing. But if your are testing real time, I think its not worth the time. May be some times if ltp is close to open=high, then chances can be taken with close sl above it. And vice versa if open = low for buy.