Fade Hour Analyzer

The same fade at 10:15 and at 15:45 is 2 different trades, and your instrument has already told you which hours pay. Paste a couple of weeks of intraday bars with timestamps and the analyzer finds every test of the day's running high or low, watches what the next 3 bars did, and tallies by hour: faded back toward the midpoint, broke through, or chopped. Then pick the hour you're in and get the verdict for it. The test and the outcome rules are this tool's convention, stated below, so you can argue with them. The hours are whatever clock your platform stamps the bars in.

How it tallies. Each day runs from its first bar. The running high and low are the day's high and low so far. A test is a bar, at least 4 bars into the day, whose high comes within 10% of the running range of the running high (or whose low comes within 10% of the running low), with the running range at least 40% of the median full-day range in the sample, so the first tiny wiggle of the morning doesn't count. Outcome, over the next 3 bars: a close beyond the edge by more than 10% of the running range is a break; a close at least 30% of the running range back toward the midpoint is a fade; anything else is chop. Each test lands in the hour bucket of its bar. A test can't repeat on consecutive bars at the same edge; the edge has to be left (more than 10% away) and revisited. Verdict for the hour: fade rate 60% or higher with 8 or more tests is a fade window; break rate 40% or higher is a breakout hour, don't fade; fewer than 8 tests is thin data, trade the neighbors' numbers. Keyboard: Enter tallies, 1 loads the example.

Educational tool only, not financial advice. 12 days is a sketch, 60 is a picture. An hour's fade rate moves with the regime, and it moves the most in the week after a volatility shock.

Built by Jason Parker, founder of Trading Ranges.

Built by Jason Parker, founder of Trading Ranges.