Powerplay: Moving-Average Trend Signals After Two-Day Pullbacks

Summary

Powerplay is a rule-based signal that looks for two consecutive down or up sessions with above-average volume, then checks the close against the prior session’s low or high and its position relative to the 200-day moving average. For the long signal, price closes below the prior low but remains above a rising 200-day average, with volume above its 25-day average and a smoothed stochastic below 30. The short signal mirrors these conditions below a falling average, with the stochastic above 70. The output is a directional buy, sell, or neutral value.

The accompanying description frames the setup as a move against the prevailing average followed by a trade in the average’s direction. The source provides the rules but no chart examples, backtest, or performance figures, so it does not establish profitability. It also labels the idea as a bounce around resistance or a moving average, while the coded conditions rely on closes beyond the prior day’s extreme; implementation and interpretation should be checked before use. No stop, position sizing, or exit rules are specified.

Key ideas

• The setup uses two consecutive sessions moving against the longer-term moving-average direction.
• A long signal requires a close below the prior low but above a rising 200-day average.
• A short signal applies mirrored conditions beneath a falling 200-day average.
• Both directions require volume above its 25-day average and an extreme stochastic reading.
• The document supplies no backtest, risk controls, or exit rules.

Tags

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