Traders' Tips  |  JAN 2004

Traders’ Tips by Technical Analysis, Inc.

Traders’ Tips by Technical Analysis, Inc. • TRADESTATION: HOLDING OVERNIGHT POSITIONS Anthony Trongone’s article “Holding Overnight Positions” describes a trading strategy called rising darkness, in which trade entries for the cubes (AMEX: QQQ) are based on the oneday percentage change in QQQ price and a comparison of the present day’s QQQ volume to historical volume. Four different combinations of price and volume are used as trade entry triggers. When certain conditions are met, this strategy enters trades at the end of the day. (It should be noted that Trongone’s article describes entering in the afterhours market, though no exact entry time is specified.) The strategy always exits on the following day’s open. Our code for the rising darkness strategy has two user inputs: “Sample Window” and “TradeType.” SampleWindow sets the number of historical days to be used in determining the relative rank of today’s volume. The user input “TradeType” determines which of four possible entrygenerating combinations of price and volume will be used. Two versions are provided, one for daily bars and one for intraday bars. A sample chart is in Figure 1.

by Technical Analysis, Inc.