There was a huge gap down on AHC that triggers an long signal based on my mean reversal strategy. The gap har arrived at a major swing level. It is not a structural demand level, but the swing level combined with the very large gap gives a high statistical edge for an reversion to mean.
I recommend getting in at the close of this kind of setups. But it is still possible to take at open either at marketprice or you say you need same price as yesterdays close or you can even play it with an limitorder with 1% limit entry UNDER yesterdays close. The last setup will give the best RR, but is still the one that will keep you out of some of the setups.
Target I have at close above 5 MA at daily. If you would like to do it a bit more demanding for the mean reversion and securing in the trade you can take out e.g 50% at Connors RSI reading above 70.
I recommend getting in at the close of this kind of setups. But it is still possible to take at open either at marketprice or you say you need same price as yesterdays close or you can even play it with an limitorder with 1% limit entry UNDER yesterdays close. The last setup will give the best RR, but is still the one that will keep you out of some of the setups.
Target I have at close above 5 MA at daily. If you would like to do it a bit more demanding for the mean reversion and securing in the trade you can take out e.g 50% at Connors RSI reading above 70.