The Four-Day Breakout LE strategy is designed by Ken Calhoun.
The strategy adds a buy to open order if:
1. Close price is greater than its simple moving average.
2. The last four candles are all bullish.
3. Price rises by at least $0.50 above the high of the highest of these candles.
The strategy is thus based on the assumption that when such a pattern appears on the chart, the pressure is on the buyers' side and the trend is likely to continue. Moving average length, the minimum number of candles in the pattern, and the minimum buy stop offset can all be customized in the input parameters.
||The length with which the moving average is to be calculated.|
||The minimum number of candles in the pattern.|
||The minimum price change after the pattern for the strategy to trigger.|
1. "Swing Trading Four-Day Breakouts" by Ken Calhoun. Technical Analysis of Stocks & Commodities, October 2017.