Make sure your best outcome resides in a neighborhood of similarly good numbers. You don’t want to act off a stand-out diamond in the rough.

skip a day after five down closes in a row followed by a higher one and then go short.

Whether the close is above (+) or below (-) the 40-day average close. Whether the 2-day average close is below (+) or above (-) the average 5 day close. Whether the highest close of the last 50 days is before (+) or after (-) the lowest close of the last 50 days.

With all the following intraday charts, remember to size them so they reflect regular hours only—in this case, 8:30 am-3:15 pm CST.

If the close is greater than the 25-day average close, then buy next bar at the open plus one and a half times the previous range on a stop. Sell (but don’t reverse) any time the market goes one and a half times the range under the open. If the close is less than the 25-day average close, get short at the open minus one and a half times the range.

look at the consistent results of going with the overextended readings rather than fading them in the manner they were intended (Table 39.1). Table 39.1 RSI Go-With System—5 Min Bars 1-2-01—11-19-05 (Indexes)----5-15--01--11-19-05 (All Others) RSI Go-with underscores an axiom that seasoned traders understand well. Nothing is ever too high to buy

For indexes, the trading hours are 8:30 am-3:15 pm, Central Standard Time. The remaining targeted financials trade from 7:20 am-2:00 pm CST.

All testing is done on day session bars only—never overnights.

Use the same 5 minute bars and 9:15-2:45 trading timeframe for the following variation on the opening price technique. Throughout that timeframe, be long when your last close is in the higher half of the daily range, be short when it’s in the lower. Simple and frill-free, just the way we like it. Table 35.2 shows our targeted index results. Table