A lower-low rebound as one entry, abstention, and stop routine

What the programmed long requires

The archive presents the long as a rule-based-entry: a fully specified sequence that turns a window low, a later lower low, and a close back through a measured reclaim into one accept-or-skip signal.

The lookback for the first low is a 20-session window. A still-lower low must then print four sessions later, and the current close must stand above that first low before the signal is valid.

Why a current-bar low is ignored

The four-session lookback exists to confirm the second low is already established. A low printed on the current bar is treated as a reason to ignore the signal.

In the archive’s terms, lower-low-confirmation is a second, deeper low printed a fixed number of sessions after the window low, used to show the decline has registered before any rebound is traded.

A retracement filter then requires the four-session-ago low to sit below the prior close, and the current close to exceed the prior close, before the setup is accepted.

The measured reclaim and the volume check

The buy trigger is a close through the measured-retrace-trigger: the 38.2 percent recovery of the range from the later low up to the high that formed between the two lows, described in the archive as the high reached after the window low. The prior close must still sit beneath that mark.

A volume-strength-filter then checks participation. It demands daily volume above 50,000 shares and current volume above a four-session average while price is rising.

A pullback through a marked pivot

After the second low, an alternative execution waits for a pullback and enters only when price recaptures a marked pivot. That pivot-point is the marked reclaim level after the second low; the long is armed only when price rises back through that point.

The first low and later lower low, followed by a rebound, is presented as a directional-change structure that can also pierce a short-term trendline or moving average.

Stops and the holding window

The write-up pairs selected names with a 4 percent stop as the working risk bound and separately records an 8 percent stop on every holding in a test book. The stop-loss is a pre-placed percentage exit that bounds loss on every selected name before the order is sent and while the position is open.

Once entered, the described holding window is four to five sessions, depending on the weekday of entry.