Category Archives: In-Depth Article

The Deadly Double Divergence

Would you be interested in an indicator that has signaled ten market tops since 1966 without a single false signal?  I read about such an indicator in an article titled “Double Divergences in the Advance-Decline Line,” which appeared in the … Continue reading

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Posted in In-Depth Article, Market Breadth, Market Commentary, Market Timing, Technical Analysis | Tagged , , , , , , , , , , | 2 Comments

Pyramid Trading: Enhancing Returns without Increasing Risk

Last week I introduced a framework for adding to losing positions safely.  It is also possible to enhance returns without increasing risk by adding to your winning positions.  The approach is called pyramid trading (not to be confused with pyramid … Continue reading

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Doubling Down: Enhancing Returns without Increasing Risk

Adding to losing positions is a sucker’s game and playing this game continues to bankrupt an ever-expanding group of traders and investment managers. As a rule, traders should never add to losing positions.  However, there are exceptions to every rule.  … Continue reading

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Trader Edge Strategy E-Subscription Now Available: 20% ROR

For the first time, I have decided to offer an e-subscription to the signals from one of my favorite proprietary strategies.  I initially developed this strategy after the 2008 crash for use in my IRA account and have made several … Continue reading

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Posted in Futures, In-Depth Article, Market Timing, Relative Strength, Stocks & ETFs, Strategy Development, Technical Analysis | Tagged , , , , , , , , , , , , , , , | Comments Off on Trader Edge Strategy E-Subscription Now Available: 20% ROR

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

Modified Chartmill Value Indicator (MCVI)

I read about this indicator in an article titled “The Chartmill Value Indicator,” which appeared in the January 2013 issue of Technical Analysis of Stocks and Commodities.  The article was written by Dirk Vandycke.  In the article, Vandycke introduced an … Continue reading

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

A New Recession Slack Indicator

I introduced the topic of recession forecasting in late October.  I have since developed several recession forecasting tools that I created by applying probit, logit, and neural network models to a diffusion index of economic and market-related variables.  This article … Continue reading

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Posted in Economic Indicators, Fundamental Analysis, In-Depth Article, Market Commentary, Market Timing, Recession Forecasting Model | Tagged , , , , , , , | 31 Comments

Price-Volume Ratio Identifies Reversals

Sometimes the simplest ideas work the best.  Before market peaks, shares typically transition from strong (institutional) hands to weak (retail) hands.  Before market troughs, shares usually move from weak hands back into strong hands.  Both of these scenarios result in … Continue reading

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Posted in AmiBroker Code, COT Analysis, In-Depth Article, Market Timing, Technical Analysis | Tagged , , , , , , , , , | 4 Comments