"52-week Friday rule" success

Posted on by The INO.com Team

One of the trading strategies that Adam talks about the most is the "52-week Friday rule.” In case you missed Adam talking about this powerful strategy, you can re-visit the video by clicking here. Today we received an email from MarketClub member Glen C. who shared with us how this rule paid off for him:

"I am still very new to trading and I decided Friday 10 Sep to check out the High 52 Week Friday rule. When I did the smart scan RMCP jumped at me, and I studied the chart and saw a spike starting at 2:46 @ .98 and closing at 4:00 @ 1.27. I was curious as to the reason for the spike and did news research that showed a very large Federal contract had been awarded RMCP for medical supplies and software. Figuring that this was late breaking news, and that the tide would continue on Monday I purchased 1000 shares @ 1.29. The kickoff this Monday morning was @1.30 and I  watched it go all the way to 1.69 and fluctuate during the day. Figuring that the 1.69 was a decent profit, I set my stop there and sure enough it was met at 2:42 when it went to the day's high of 1.71. My profit for this one trade was over $380. So my recommendation is that if you see a spike on a 52 Week High on Friday, and you can determine the reason, you may be surfing the wave on Monday. Thank you Market Club for such great tools as smart scan and the High 52 Week Friday Rule."

Every success,
The MarketClub Team

15 thoughts on “"52-week Friday rule" success”

  1. To know whether Friday closed with a new 52-week high I have to wait for the close of the session. If positive, ho can I buy after the close of the session to play the Rule?

    1. Peter,

      thank you for your feedback.

      If a market is close to its highs going into the close i.e. read that as 5 min. before the close, then it's always a good idea that you should go long that market for the weekend. You can also purchase stocks after the close, I would contact your broker on this one Peter.

      All the best,
      Adam

  3. I did purchase on Monday Morning, and got in at 1.29 after the close on Friday of 1.27. This trade was more about the late breaking news that drove the stock up than the High 52 Friday rule. But it was the High Friday 52 Rule that found it for me. As for Alan's request about shorts, I don't know. Still too much of a novice. My suggestion is that since all the information is transparent, pick 5 to 10 or all the stocks on Friday that meet the rule, and paper trade them thru Tuesday. And of course you can test the 52 week Lows also. Ypu will then have the experience and the results will be apparent. If you do this please share the results here so we can all benefit. <*####<

  4. I guess it is just like other patterns such as double tops/bottoms etc. They alert you for ops, but they may also fail. Nevertheless, it is one more arsenal.

  5. I’m having a bit of difficulty understanding one aspect of this technique. If you’re looking for a high at the close, when do you buy? Just before the close? After hours on Friday? Not at the open on Monday, surely.

  7. I tried this rule on Gold last time it made a 52 week hight on a Friday and it didn't work ,June 18 2010. On Monday June 21 Gold sell off.

  8. Great, thanks for letting me know Glen! I would also be interested in an answer to Alan's comment (52 week low and going short).

  10. RMCP is a stock. Does not work 100% of the time that is why you need to monitor early monday morning, set stops and bail out if it is going south. I backtested a few and it seems to work most of the time. Stocks with low volatility or high price may not be worth the effort for low return. Play with it, and it is very easy to backtest any stock or ETF using Market Clubs charts, Easier to do a smart scan on any Friday for High 52 add them to your portfolio (which automatically will show additional alerts) and you can easily track them through Monday until Tuesday Morning. Watch the video several times until it is clear to you. Apply the skill to get the luck, <*###<

  11. Does the 52 Week Friday Rule apply at all to stocks and ETFs? If so, has anyone backtested this on stocks/ETFs?

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