Trading patterns you can automate
Classic daily-chart entry patterns, from Larry Williams' Oops! and Smash Day to simple indicator rules. Each one is explained step by step, and you can turn any of them into an MT4 or MT5 bot.
Price action
- Oops! — Price gaps below yesterday's low, then trades back up through it — buy the reclaim.
- Smash day — A day closes beyond the prior extreme, then gets rejected next day — fade the failed breakout.
- Hidden smash day — A day closes in the extreme 25% of its range but fails to take out the prior high/low — fade the weak push.
- Specialists' trap — A breakout from a consolidation box fails and closes back inside — trade the unwind the other way.
- Outside day, down close — A panic outside bar engulfs the prior range and closes weak — buy above its high next day on seller exhaustion.
Indicator
- RSI 50-cross — Enter a buy when RSI(14) crosses above 50; the single most robust indicator rule in the stack.
- Williams %R, inverted — Use a %R extreme as a timer — buy the oversold dip in an uptrend, sell the overbought rip in a downtrend.
- Range compression — A day's range contracts below the N-day average — arm a breakout, because expansion follows contraction.