This is a coded version of Larry Williams’ smash down days as described in his book “Long-Term Secrets to Short-Term Trading”.

I put in the same code the two different smash down days entries. When an histogram bar is showed enter long (or short) at the high (or low) of the price bar corresponding to the histogram bar.

Since I don’t do short term trading I haven’t backtested the system but the author promises wonders. I personally keep an eye on this indicator to asses the end of a correction for growth stocks.

Blue skies!!

//smash day type 1
//long
c10=low<lowest[2](low[1])
c11=close<low[1]
if c10 and c11 then
 sdlong=1
else
 sdlong=0
endif
//short
c12=high>highest[2](high[1])
c13=close>high[1]
if c12 and c13 then
 sdshort=-1
else
 sdshort=0
endif

//smash down type 2
//long
c20=close>close[1]
c21=close<open
c22=(close-low)<=((0.25*range))
if c20 and c21 and c22 then
 sd2long=0.5
else
 sd2long=0
endif
//short
c23=close<close[1]
c24=close>open
c25=(high-close)<=((0.25*range))
if c23 and c24 and c25 then
 sd2short=-0.5
else
 sd2short=0
endif

return sdlong coloured (0,210,0) style(histogram) as "smash down 1 Long",sdshort coloured (0,210,0) style(histogram) as "smash down 1 Short",sd2long coloured (210,0,0) style(histogram) as "smash down2 Long",sd2short coloured (210,0,0) style(histogram) as "smash down2 Short",0