This startegy based on 3-day pattern reversal described in "Are Three-Bar Patterns Reliable For Stocks" article by Thomas Bulkowski, presented in January, 2000 issue of Stocks&Commodities magazine. That pattern conforms to the following rules: - It uses daily prices, not intraday or weekly prices; - The middle day of the three-day pattern has the lowest low of the three days, with no ties allowed; - The last day must have a close above the prior day's high, with no ties allowed; - Each day must have a nonzero trading range.
Please, use it only for learning or paper trading. Do not for real trading.