Category Archives: Technical Analysis

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

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

Long-Only Equity Strategy Earned 44% in 2008

I read about this strategy in an article titled “The Low-Close Edge,” which appeared in the December 2012 issue of Active Trader.  The article was written by Nat Stewart.  Stewart introduced a very simple, systematic, long-only equity strategy that generated … Continue reading

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Posted in Market Timing, Strategy Development, Technical Analysis | Tagged , , , , , , | 7 Comments

Symmetric TRIN Indicator Identifies Potential Reversals

The TRIN (also called the ARMS index) is a breadth indicator created by Richard W. Arms.  It acts as an oscillator and extreme values can be used to identify overbought and oversold conditions.  Unfortunately, the standard TRIN indicator has some … Continue reading

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Posted in AmiBroker Code, Market Breadth, Market Timing, Technical Analysis | Tagged , , , , , , , , , , , , , | 5 Comments

Multiple Indicators Point to Market Pullback

Equity markets have been on a tear for the past 18 weeks and speculators have continued to add to their long positions throughout this rally, reaching the extreme threshold several weeks ago. Over the past month, commercials have added to … Continue reading

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Posted in COT Analysis, Economic Indicators, Market Commentary, Market Timing, Technical Analysis | Tagged , , , , , , , , , , | 2 Comments

Automated Trendlines for Indicators

I recently posted an article titled “How to Draw Trendlines & Avoid Severe Losses.”  In that article, I provide a set of objective, unambiguous rules for drawing trendlines. In response to a request from a reader, I followed up with … Continue reading

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Posted in AmiBroker Code, Futures, In-Depth Article, Market Timing, Technical Analysis, Trade Analysis | Tagged , , , , , , , , , , , | Leave a comment

How to Generate Automated Trendlines

At the end of every article, I solicit topic suggestions from readers.   The following is recent request from Pete Kasper, which provided the inspiration for this article: I continue to enjoy your cogent articles week after week. I’d like … Continue reading

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Posted in COT Analysis, In-Depth Article, Market Commentary, Market Timing, Risk Management, Technical Analysis | Tagged , , , , , , | 9 Comments

Williams’s POIV Indicator Identifies Reversal Prospects

In the December 2007 issue of Futures Magazine, Larry Williams described his Price, Open Interest, and Volume (POIV) indicator and he also included the formula for POIV, which allows us to reproduce the indicator calculations.  The following post reexamines the … Continue reading

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