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YMH1, Stretch, (3, -1) price reversal formula


YMH1: basis the 'fade the first counter trend move by one Stretch move, i.e., 3 Feb Stretch calculation = 23... 2 Feb settle = 11985-23=11962, reverse at 11962+23+23+23 = 12031,... therein lies (3, -1)
[Note: 11985- 37=11948,= 37=1.618% Stretch. 3 Feb low = 11933
[Note:3 Feb pivot point was 11980. 2 Feb low was 11946, where prices made a new low 3 Feb, found no new sellers and continued to a new life of contract high, 12034.
Here it, (3, -1), is:
Trade from unchange, fade the first counter trend move by the Stretch:
11985 - 23 = 11962 (3 Feb low = 11933). This is the -1 of (3, -1).
11962+23=11985 ...
11985+23=11208 .... and
12008+23=12031. 3 Feb high: 12034. This is 3x23 from -23 = (3, -1).
That's the (3, -1) formula, once down and three Stretch calculations up basis trading from unchanged.Sometimes it's a 1.618% Stretch ratio.
Does anybody follow this trading methodology? or read about it?
YMH1: Sold short in 1st minute: 11753. Reversed at 11698 and offset the long at 11638 (1.618% bounce off the low).(Rational: Settlement: 11775- 2.618% of today's Stretch (26 x 2.618=68. 11775-68= 11707. Friday's last trade was 11762 -68=11694. Friday's settlement: 11775-68=11707 or 11751-68=11683. Average of the three projected a low=11694. Tonight's low is 11690. Prices bounced back to unchanged and filled the gap. January 31

YMH1: Applying the (3, -1) formula to the strategy that trades from unchanged and fades the first move by today's Stretch calculation, 21. Previous settlement lifted up to the high, i.e, 11930+21=11951 and reversed back to unchanged. Prices fell below unchanged by 63 pts, i.e., 11930- (3x21)= 11967. 11964 = low.
Another nearly perfect fit. 25 January 12:44PST


YMH1 strategy; price rotations basis 1.618% and 2.618% of today's Stretch calculation, 24=X. 1.618X=38 and 2.618X=38: Trading from unchanged, 11822 lifted 50% of 24 and failed 11838 to 11806 reversing to 11870 (1st high ... 11806+64=11870= +2.618X +2pts). 11870 fell to 11808=62pts=2.618X. Unchanged + 4.25% of X=11924=11822+102=11924. High:11936. 24 January 12:34PST

Basis YMH1: Trading from unchanged and fading the first move by today's Stretch (26=X) calculation and applied to the (3, -1) formula, satisfied this formula and range projection within a small margin of error, 3 pts above the low and 5 pts below the high. 11774-X=11748 11745=low). 11774+ (3x26)=11852. High-low=112 pts, i.e., 11857-11745=112. 110=4.25% of today's Stretch, 26, calculation.
21 January 16:12PST

Take a look at the March $5 Dow intra-day chart. The trading strategy is to fade the first move, e.g., when it is counter-trend. The first move was down almost 1.618% of today's Stretch calculation (25), and then reversed, from unchanged, three of today's Stretch calculations. This fit...s the (3, -1) formula.
18 January 14:13PST

YMH1, Trading from unchanged; fading first move as applied to (3, -1) formula,; Stetch calculation =24=X, 1.618X=38, 2.618X=62 and 4.25X=102: Unchanged, 11683+Stretch, 24=11683+24=11707. At 11708 reversed in the early A session. 11708- (24x3)=11636=11707-72=11636. 11627, 14 Jan low reversed up to 11740. The low 11627 + 4.25X= 11729, i.e., 11627 + 102 = 11729. Prices have started a retraceal lower from the 11740 high. 14 January 12:07
Hey Hunter, found ya LOL. I've been running these calcs on the SPY off of the open for the day and fading the stretch after you sent me the PM on FB. It has worked well except for Feb 2nd when I went short in size and the market promptly began it's long grind up. What is your thought on that. If I read you right you run your numbers off of the prior days close? Is that correct? Feel free to FB PM me if you want to keep this private or answer here. I'll check both places.

I generally have been fading the 1st move based on the stretch, I also run the /ES charts with Shadowtraders PP's and R1-4 and S1-S4 and use those for the balance of my day trades as the moves in the /ES translate well to the SPY.

Rick W
Those upward grinds do breach the 4.25% range, but those kind of +120 days are far fewer than the typical 4.25% range, which serves to target and project the (3, -1) calculation. Good to hear you are having fun assessing the viability of this trading strategy. My money is growing, despite my occasional lack of discipline, i.e., early entry. Even then, I know how much risk I'll have to hold onto in a losing position, based on the Fibonacci (usually 1.618% from unchanged) of the Stretch calculation. I am looking foward to your shared mutual interests.