Tag Archives: technical analysis

Use Economic Filters to Reduce Your Strategy Losses

When developing strategies, many systematic traders focus exclusively on technical analysis, with their primary focus on derivatives of price and volume.  A few traders add sentiment and breadth statistics to further enhance their models.  I suggest going one step further: … Continue reading

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Posted in Economic Indicators, Fundamental Analysis, Market Timing, Recession Forecasting Model, Strategy Development, Technical Analysis | Tagged , , , , , , , | Leave a comment

Combine Indicators to Identify High-Probability Reversals

I read about this indicator in an article titled “The DMI Stochastic,” which appeared in the January 2013 issue of Technical Analysis of Stocks and Commodities.  The article was written by Barbara Star.  In the article, Star combined two well-known … Continue reading

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Posted in AmiBroker Code, In-Depth Article, Market Timing, Strategy Development, Technical Analysis | Tagged , , , , , , , , , , | 21 Comments

A Relative Strength Market Timing Oscillator

I read about this indicator in an article titled “Roulette Wheels and Individual Stocks,” which appeared in the December 2012 issue of Active Trader.  The article was written by Richard J. Bauer, Jr.  In the article, Bauer used an innovative … Continue reading

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Posted in AmiBroker Code, COT Analysis, Futures, Market Commentary, Market Timing, Relative Strength, Technical Analysis | Tagged , , , , , , , , , , , , , , , , | 5 Comments

Do Not Short a Bull Market

The first and most important rule of trading is to always trade with the prevailing trend.  I have emphasized this rule in a number of my past posts.  It holds true in all market environments, but is especially crucial in … Continue reading

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Posted in Economic Indicators, Fundamental Analysis, In-Depth Article, Market Commentary, Market Timing, Options, Risk Management, Summary Market Indicator Score, Technical Analysis | Tagged , , , , , , , | 1 Comment

Take the First Step Toward an Investment Process

Most investors do not use an investment process.  Instead, they ask their friends for stock tips, watch CNBC, read a few newsletters (or blogs), and hope for the best.  There is no consistent rationale behind their decision-making process, very little … Continue reading

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Posted in Fundamental Analysis, In-Depth Article, Market Breadth, Market Commentary, Market Timing, Relative Strength, Risk Management, Seasonal Tools, Security Selection, Stock Screens, SWAMI Charts, Technical Analysis, Zacks | Tagged , , , , , , , , , , | 5 Comments

Use Relative Strength to Identify Market Trends

Relative strength rotational strategies have a proven track record of success, but the potential uses of relative strength extend much further than security selection.  One of my favorite techniques is to use the relative strength of two different indices, futures … Continue reading

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Posted in Economic Indicators, Futures, In-Depth Article, Market Breadth, Market Commentary, Market Timing, Relative Strength, Technical Analysis | Tagged , , , , , , , , | 3 Comments

Are the Seasonal Trends Working this Year?

Knowing the historical seasonal tendencies of our trading instruments can dramatically improve our returns, but how much weight should we assign to seasonal trends?  What should we do if our other indicators are bearish and the historical seasonal trend is … Continue reading

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Posted in Futures, In-Depth Article, Market Timing, Options, Seasonal Tools, SWAMI Charts, Technical Analysis | Tagged , , , , , , , , | Leave a comment

Look at the Big Picture

We all have a few favorite technical indicators.  However, almost all technical indicators calculate indicator values for a specific look-back period and then plot those values over time.  With this approach, we can only analyze one look-back period at a … Continue reading

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Posted in COT Analysis, Futures, In-Depth Article, Market Commentary, Market Timing, Stocks & ETFs, Technical Analysis, Trade Analysis | Tagged , , , , , , , , , | 3 Comments