The fade idea that we demonstrated yesterday also applies to Wedneday with a slight variation.  As the week approaches Humpday, the move you want to fade is not necessarily yesterday's.  You want to fade whichever of the Monday or Tuesday move was bigger.

In other words, if both are up or down, it's a no-brainerâ€"you simply take the opposite position on Wednesday morning.  If one move was higher and the other lower, simply go opposite the direction of the greater move.

Here are the results of fading on Wednesday the greater move from Monday or Tuesday.  The following is the last five years of data when opening a position at Wednesday's open and closing the position at Wednesday's close.

Art Collins is the author of Market Beaters, a collection of interviews with renowned mechanical traders. He is currently working on a second volume. E-mail Art at artcollins@ameritech.net.