Larry Williams Turn Around Tuesday Strategy, Two-Day Drawdown Strategy

Discover Larry Williams' "Turn Around Tuesday" strategy for US indexes, buying on Tuesdays after a significant Monday downturn and exiting Wednesday.

Published · Updated · Methodology: Technical Indicators

Part of: Moving Average Strategies

  • Methodology: Technical Indicators
  • Content type: strategy
  • Timeframes: Daily, 5 minutes
  • Markets: S&P 500 Index, US Indexes

Indicators used

  • ATR
  • Moving Average

Source video

Decoded from: Larry Williams Index Trading Strategy by Ali Casey | StatOasis — watch the original

Key timestamps:

  • 0:00 - Introduction
  • 1:26 - Larry William Turn Around Tuesday strategy description
  • 2:39 - Coding Larry William Turn Around Tuesday strategy in Algo Wizard
  • 4:27 - Extending the holding period of the strategy to 24 hours instead of intraday
  • 6:17 - Bonus strategy from Larry Williams - 2 lines of code!

Strategy overview

A moving average condenses a stretch of price into a single trend line that shows, at a glance, which way a market has been leaning. In this decode that line barely does the trading, though — it sits in the background as a long-term trend filter behind a calendar-based idea from Larry Williams: the "Turn Around Tuesday," or two-day drawdown, pattern. The premise is seasonal rather than technical. When an index closes weak for a couple of sessions, that short drawdown tends — in Williams' framing — to reverse, classically into Tuesday, and the setup tries to buy that expected turn instead of a conventional chart signal.

This entry was decoded from Ali Casey's video "Larry Williams Index Trading Strategy" on the StatOasis channel, which is less about the pattern's folklore and more about how quickly it becomes machine-tradeable. The walkthrough builds the Turn Around Tuesday logic inside Algo Wizard, then tests a variation most seasonal traders skip — extending the exit from a same-day intraday hold to a full 24 hours — before closing with a "bonus" Larry Williams idea the presenter reduces to two lines of code. The moving average's role across all of this is narrow but deliberate: keep the mean-reversion entries pointed with the broader trend rather than catching a falling knife, while ATR provides a volatility-scaled sense of how far the move should be measured.

Calendar edges are their own kind of fragile — day-of-week effects drift as markets change, and what holds on one index or era may not survive on another — so the interesting part here is watching a discretionary seasonal belief get translated into explicit, testable rules. This entry maps the concept and the video's framing as StatOasis presents it; the specifics of the pattern's conditions and settings live in the source itself.

Topics

larry williams strategy · turn around tuesday · us indexes trading · day trading · swing trading · daily timeframe strategy · pine script · tradingview strategy · technical indicators · atr strategy · moving average strategy · spx trading strategy · stock market strategy

Frequently asked questions

What is Larry Williams' "Turn Around Tuesday" strategy?

It's a seasonal, day-of-week idea: after an index posts a short drawdown of roughly two down sessions, price tends to reverse — classically into Tuesday — so the setup looks to buy that expected turn rather than a standard chart pattern. It's a mean-reversion premise anchored to the calendar instead of an indicator signal.

How does the "two-day drawdown" version differ from Turn Around Tuesday?

The two-day drawdown is the more general form — enter after two consecutive down days regardless of weekday — while Turn Around Tuesday is the calendar-specific variant that ties the expected reversal to a particular day of the week. The source video treats them as closely related expressions of the same Larry Williams idea.

What role does the moving average play in this strategy?

Here it works as a long-term trend filter rather than the entry trigger, helping keep the mean-reversion entries aligned with the prevailing trend instead of buying into a sustained decline. ATR is used alongside it to scale the move to current volatility.

How should I test a seasonal strategy like this before trading it?

Seasonal and day-of-week edges especially need out-of-sample and multi-market backtesting, since they can fade as markets evolve. Strategy Decoder extracts the structure of strategies like this one from video sources so you can evaluate and test them 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.

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