21 thoughts on “Time for the 52-week high on Friday rule?”

  2. Adam,

    How do you apply the 52-week rule to Globex with trading all-day Monday and overnight? Treat the 5:00 Monday open as Tuesday AM?

    Thanks

    1. DGDye.

      Thanks for your feedback.

      You can do it the way you suggest. If the market is good it should move higher on Monday. You could also accept profits at 5 pm opening as you suggest.

      All the best,
      Adam

  3. Adam,
    Thanks for reminding us of the 52 week high rule.
    A short story of success.
    I have been in a stock with a 38% profit.
    On Friday it hit a 52 week high of $12 US.
    Yesterday I spotted your article and started looking at the technicals of my stock.
    MACD, RSI,etc all showing maxed out so it was dangerously capable of a correction.
    I watched it for signs of weakness at the open and decided pigs get slaughtered so instead of a trailing stop I pulled the plug for a 35% profit on the Monday.
    Thanks again, that trade will not soon be forgotten nor the rule of 52 week highs!
    Merry Christmas & Happy Holidays,
    Bob

  4. New to trading here.
    Bear with me...
    Question for Rule number 1.
    "On a new 52-week high, when the market closes at or close to its high on a Friday, buy long and go home long for the weekend."
    How does one "buy" when the market has "closed"?
    Also, for rule 3, can you offer a percentage range when you say "If the market opens sharply lower..."? What do you consider a sharp drop?
    Thx much.

    1. Mike,

      Look at the market before it closes and if it is closing at or close to its highs go long. A sharp drop would mean if the market has no follow through to the upside and opens 2 or 3 percent below its Friday close. Money management is a decision that traders must make for themselves. Here is some advice on money management STOPShttp://club.ino.com/trading/wp-admin/edit-comments.php#comments-form

      http://club.ino.com/trading/2009/06/how-to-use-money-management-stops-effectively/

      All the best,
      Adam

  5. As in most Technical indicators -no one rule works always .
    My suggestion is if the software can be tweaked so as to include the ability to SMART SCAN on more than 1 Scan Criterion --eg 52 Week High as well as say STRONG DMA.
    I would think upto 3 or 4 criterion would be helpful .

  6. Hi Adam, I thought the 52 week high on Friday rule was applicable only for markets (gold, oil, etc) not stocks, how accurate it is for stocks?

    Thanks

    1. Garardo,

      Thank you for your feedback.

      I think the 52-week rule probably works best futures and in Forex. However it does work in stocks but we do not have a track record or any statistics that we can share with you.

      All the best,
      Adam

  7. I have been unable to use charts this week-end. The summaries are ok, but not the live charts.

    Is there a problem?

    Thanks

    1. DG Dye.

      Thank you for your feedback. The charts appear to be working just fine. I'm not sure what the problem is, but it may be on your end

      If the problem persists please contact our tech support on Monday.

      All the best,
      Adam

  8. hi Adam, how many 52 week highs can there be ??? wouldn't the next week be #53 or 52 plus 1.. have a wonderful xmas, continue the good work Kent Hansen, Calgary Alberta. Canada

    '

    1. Kent,

      Thank you for your feedback.

      Yes, you are correct but that would also mean that you have a very strong trend in place and the chances are the market would be higher on Monday and Tuesday.

      All the best,
      Adam

    1. Norman,

      Here are the rules for the 52-week Friday highs.

      52 WEEK RULES
      Here are the three rules you need to trade "The 52-week new highs on Friday rule"

      These are the exact rules that Bill used to make millions

      Rule number 1: On a new 52-week high, when the market closes at or close to its high on a Friday, buy long and go home long for the weekend.

      Rule number 2: Exit the long position on the opening the following Tuesday.

      Rule number 3: If the market opens sharply lower on Monday, exit the position immediately.

      There you have it. These are the only three rules you need to trade with "The 52-week new highs on a Friday rule" successfully.

      "The 52-week new highs on a Friday rule" works extremely well in futures and in the Forex markets. This rule can be reversed for "The 52-week new lows on a Friday rule" if you are so inclined to trade the short side of the market. The same rules apply.

      All the best,
      Adam

    1. Hi Val,

      I can definitely help with that.

      When you are logged into MarketClub and access the Alerts tab near the top of the screen (this is the red tab just below and to the right of the MarketClub logo), simply:

      1) Set the Scan Type to 52 Week high
      2) Set the specific symbol you would like to follow or select Entire Portfolio
      3) Set the Send Alert As Often As to Once A Day (this is the recommended setting)

      For your reference I have included an image which should help:

      setting alerts for 52 week high

      Best wishes,
      Susan

  12. Am I correct in thinking that the "52-week high on Friday" rule would not apply to stocks in which You hold a long position?

Comments are closed.