This strategy will enter into long position when (a) current volume is above the average volume, and when (b) volatility of prices (based on ATR) is relatively low.
Backtested on hourly timeframes, win rates range between 35% to 50% on stocks with positive drifts (i.e. tendency to move upwards). Default setups are as follows:
- Average volume is computed using...
This strategy will Long when:
Confirmation #1: when volume is relatively high
Confirmation #2: during periods of price consolidation (See )
It exits when either (a) stop loss limit is reached, or when (b) price actions suggest trend is bearish.
Measuring price volatility to assume consolidation:
For each candlestick, we quantify price volatility by...
![AXP: [KL] Relative Volume + ATR Strategy](https://s3.tradingview.com/e/e1iapmtK_mid.png "[KL] Relative Volume + ATR Strategy")
![AAPL: [KL] Relative Volume Strategy](https://s3.tradingview.com/h/HNmT0VUi_mid.png "[KL] Relative Volume Strategy")