Larry Connors’ 3 Day High/Low Method (Amibroker And Tradestation Code)

The strategy in plain English:

 

1. Today’s close must be higher than the 200-day moving average.
2. Today’s close must be lower than the 5-day moving average.
3. Two days ago both the high and low were lower than the day before.
4. Yesterday the high and low were lower than the day before.
5. Today the high and low are lower than yesterday.
6. If conditions 1-5 are true, then buy today at the close.
7. Exit at the close when the close is above the 5-day moving average.

 

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Amibroker code:

 

Buy= C>MA(C,200) AND C<MA(C,5) AND H<Ref(H,-1) AND L<Ref(L,-1) AND Ref(H,-1)<Ref(H,-2) AND Ref(L,-1)<Ref(L,-2) AND Ref(H,-2)<Ref(H,-3) AND Ref(L,-2)<Ref(L,-3);
buyPrice=Close;
Sell= C>MA(C,5);
sellPrice=Close ;

 

Tradestation code:

 

If close >= average(c,200)
and close <= average(c,5)
and h[2] < h[3]
and l[2] < l[3]
and h[1] < h[2]
and l[1] < l[2]
and h < h[1]
and l < l[1]
then buy this bar at close;
If close > average(c,5) then sell this bar at close;

 

Disclosure: We are not financial advisors. Please do your own due diligence and investment research or consult a financial professional. All articles are our opinions – they are not suggestions to buy or sell any securities.