This 2-Day Pattern Suggests the Bulls May Have A Short-Term Edge

By Rob Hanna

On Wednesday the bulls tried to make a move higher and failed, making for a higher high and a lower close. On Thursday the opposite happened. The bears failed in their attempt at a move lower. A study from the Quantifinder looked at 2-day moves like this. I found results to be substantially different based on whether the market is near the top or the bottom of its short-term range. When the pattern occurs in the lower end of the short-term range is has been consistently bullish over the next 4-5 days. This can be seen in the below test, which is updated.


Odds strongly favor a move higher and the profit factors are very impressive over the next 4-5 days. The failure of the bears to take control when the market pressed downward and made a lower low on Thursday has opened the door for the bulls.

While not applicable to the current situation, I thought I’d also show the results when the pattern occurred and the SPX closed above the 10ma.


We see here that performance moving forward has been a tossup. Of course we are in the 1st situation. We’ll see if the bulls can keep the momentum over the next 4-5 days.

Want research like this delivered directly to your inbox on a timely basis? Sign up for the Quantifiable Edges Email List.

Support 100% ad-free by making a donation of your choice!

Or better yet, subscribe to NFTRH Premium for an in-depth weekly market report, interim updates and NFTRH+ chart and trade ideas to get even more bang for your buck. You can also keep up to date with plenty of actionable public content at by using the email form on the right sidebar. Or follow via Twitter @BiiwiiNFTRH, StockTwits or RSS. Also check out the quality market writers at

Published by

Gary &