FTSE Intraday Reversal Signals from Large Candles

Summary

This post presents an intraday strategy for the FTSE 100, with forex pairs also mentioned as instruments the author trades. It looks for a candle whose open-to-close move exceeds twice a 12-period average true range. A large down candle triggers a long entry, while a large up candle triggers a short entry, so the setup trades against the direction of the signal candle. The position uses ten contracts, a stop equal to the candle’s body, and a profit target 2.5 times that distance. Trading is limited to a stated daytime window, with orders not accumulated.

The author says the live-trading results over the period were better than the results from the coded version and invites feedback, but gives no dates, performance figures, sample details, or out-of-sample evaluation. The document therefore offers a rule set and a personal account, not evidence that the approach is profitable. Costs, slippage, contract sizing rationale, and behavior across market regimes are not discussed.

Key ideas

• The setup identifies candles with an open-to-close range greater than twice a 12-period average true range.
• It enters long after a qualifying down candle and short after a qualifying up candle.
• The stated stop matches the candle body, and the target is 2.5 times that distance.
• The author reports that coded results lagged live trading but supplies no supporting performance data.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.