High Close Strategy, Moving Average Filter

Explore the 'High Close' strategy with a moving average filter. Learn how this daily timeframe strategy, adapted from Larry Williams, uses close prices and movi

Published · Updated · Methodology: Mixed

Part of: Moving Average Strategies

  • Methodology: Mixed
  • Content type: strategy
  • Timeframes: Daily
  • Markets: S&P 500 Index, US Indexes, Energy Market, Heating Oil

Indicators used

  • Moving Average

Source video

Decoded from: Larry Williams Truth #1 | High Close Strategy! by Ali Casey | StatOasis — watch the original

Key timestamps:

  • 0:17 - Introduction to Larry Williams' 'truth'
  • 0:44 - Original strategy rule for S&P 500
  • 1:25 - Adding 200-day moving average filter
  • 2:00 - Optimizing holding period for original strategy
  • 2:40 - Flipped strategy for mean-reverting instruments (US indexes)
  • 3:45 - Applying original strategy to trend-following instruments (energy market)
  • 4:30 - Optimizing close percentage for energy market

Strategy overview

A moving average condenses recent price into a single line that traders read for trend direction and, at longer lookbacks, for the market's broader regime. This entry decodes Ali Casey's StatOasis video "Larry Williams Truth #1 | High Close Strategy!", where the moving average is not the signal at all — it sits on top of a close-based price rule that Williams frames as a market "truth", acting as a filter that gates when that rule is allowed to work.

StatOasis approaches this as a statistics-first channel, and the video reflects that: it starts from Williams' original rule as stated for the S&P 500, layers a long-term (200-day) moving-average filter over it, and then looks at how holding period changes the picture. What sets this decode apart from other moving-average entries is that it treats the same base idea across different instrument classes — presenting a mean-reverting reading for US equity indexes and a trend-following reading for energy markets — with the moving average as the switch that frames which regime you are trading in.

Because the average here is a regime gate rather than an entry trigger, the useful questions are about context: which side of the moving average price sits on, how long a position is held, and whether an instrument tends to revert or to trend. This page catalogs the strategy as decoded from the source video, and the video itself remains the primary reference for how Williams' "truth" and the filter fit together.

Topics

high close strategy · moving average strategy · daily trading strategy · us indexes trading · energy market trading · swing trading · pine script · tradingview strategy · s&p 500 strategy · mean reversion strategy · trend following strategy · trading strategy

Frequently asked questions

What is the "High Close" strategy Larry Williams describes?

It is a close-based price idea that Larry Williams frames as a market "truth" — a simple, mechanical rule read off the daily chart rather than a discretionary judgment call. The StatOasis video presents it starting from its original form for the S&P 500 before adapting it to other instruments.

What role does the moving average play in this version?

The moving average is a filter, not the entry signal. The video layers a long-term (200-day) moving average over Williams' base rule to distinguish market regimes, using it to gate when the close-based setup is allowed to act rather than to generate trades on its own.

Why does the video apply the strategy to both stock indexes and energy markets?

Because the same base rule reads differently depending on the instrument. The video presents a mean-reverting interpretation for US equity indexes and a trend-following interpretation for the energy market, using the moving-average filter to frame which behavior applies.

How can I study or test a daily strategy like this one?

Backtest it on historical daily data before committing capital, paying attention to holding period and to whether the instrument tends to revert or trend. Strategy Decoder catalogs concepts like this one from their video source so you can evaluate and test the structure on TradingView.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

Strategy Decoder catalogs 2,229 decoded strategies. Each one is extracted with confidence scoring, cross-linked to the indicators it uses, and kept up to date as new videos are processed daily. Load this page with JavaScript enabled to use the interactive tools, or start from the strategy explorer to filter by methodology, market and timeframe.

Other versions of this strategy

More decoded strategies