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YMM1, profitable strategy, (3, -1), fading 1.618% of Stretch


Hi,
Additional dates that apply the hereinbelow strategy can be found in past posts with similar subject lines beginning with YMH1 or YMM1.

Bright, brief and gone, ... applying the (3, -1) to the profitable trading strategy that fades the first price move and measures a price projection of three of that price move with the trend for the respective day (with supporting details below):
15 April Stretch calculation = 28 and 1.618% of 28 = 45.

14 April settlment = 12228
12228 - 42 = 12186 (12186 = low)
12186 + 42 + 42 + 42 = 12312 (12314 = high)

... or trading from the previous settlement, 12228, and fading the first move:
12228 - 28 = 12200
12200 + 28 + 28 + 28 = 12284 (For the fun of it: 12284 + 28 = 12312)

Objective: Apply the (3, -1) formula to the strategy that measures a price move by fading the first move from the 15 April Stretch calculation, i.e., 28 points; or fading the first move by a Fibonacci of the Stretch calculation, i.e., 1.618% = 42 points.

The 15 April trading session for the June e-mini $5 Dow futures (YMM1) began with a counter trend price decline, 42 points, representing -1 of (3, -1), whereafter prices reversed up by three of that 42 point move to the upside, which rally represents 3 of (3, -1).

Below you'll find two price rotation measurements, one applying the first move down, i.e, 42 points from unchanged, and the other applying the 15 April Stretch calculation (28 points) to the (3, -1) formula, where -1 of the (3, -1) represents fading the first move.

14 April settlement, 12228, to the 15 April low, 12186:

12228 - 12186 = 42 points, which represents -1 of (3, -1).
12186 + 42 + 42 + 42 = 12312 (12314 = 15 April high).
The low print, 12186, was at 02:25PDT and the high print, 12314 was at 10:00PDT.

... and the price measurement trading from the 14 April settlement:
12228 - 28 = 12200 (prices actually fell from 12228 to 12186 before reversing to the high, 12314).
12228 - 28 = 12200.
12200 + 28 + 28 + 28 = 12284, and just for fun... 12284 + 28 = 12312.
This, again, also satisfies the profitable (3, -1) formula.

I have posted most days that satisfied the (3, -1) formula, where most exceptions would be uni-directional days where prices, began above the respective pivot point for that day, of rallied almost direction from the A session open.

Enjoy your trading.
Subject: YMM1 ($5 Dow futures) 15 April (3, -1) formula as applied to the Stretch calculation (28) and 1.618% of the Stretch (38):

Reply to my own with pertaining to a (3, -1) formula developing from the 15 April open:
First a note about the intra-day (3, -1) price rotation and measurement projection which was not mentioned, but did support the entire trading range price measurements basis e-mini $5 Dow futures.

Trading from the 14 April settlement, 12228, the 15 April open first rallied 22 points (initial A session high prior to the low print, 12186) before declining 66 points to 12184, which was two ticks below the 15 April low, 12186.

12228 + 22 = 12250
12250 - 22 - 22 - 22 = 12184.



14 April settlment = 12228
12228 - 42 = 12186 (12186 = low)
12186 + 42 + 42 + 42 = 12312 (12314 = high)

... also posted for the 15 April price rotations as applied to the (3, -1) formula ....

... and the price measurement trading from the 14 April settlement:
12228 - 28 = 12200 (prices actually fell from 12228 to 12186 before reversing to the high, 12314).
12228 - 28 = 12200.
12200 + 28 + 28 + 28 = 12284, and just for fun... 12284 + 28 = 12312.