Technical Breakdown
The “hatch egg hatch” technique involves initiating a long position when a stock breaks above the high of the prior two closed bars and exiting the long position when the stock closes below the low of the prior two closed bars. This method relies on identifying breakouts from recent consolidation areas.
Performance Insights
The “hatch egg hatch” technique provides entry and exit signals based on closing prices, which can result in significant price movements before the signal is triggered. Additionally, its dependence on the prior two bars limits its ability to identify larger trend reversals that occur over a longer time frame.
