Using
the Directional Day Filter for High Percentage Trading
Theory
The theory behind the Directional Day Filter is that
either the high or the low of the day is established early.
Therefore any range expansion that is to occur will
occur on only one side of the
range.
Therefore, if the low of the day is made early in the
session and the high is placed
later in the day, the trend for the day is higher.
Conversely, if the high is in place early and the low is
established during the
remaining portion of the session, the trend for the day was lower.