Category Archives for Indicators

How to Trade the MACD: A High-level Analysis of the MACD Line Feature

Moving Average Convergence Divergence (MACD) is one of the most popular technical indicators used by traders. It is a flexible indicator that can be used for determining the strength and direction of a trend. It has three distinct features and in this first post we are going to do a high-level analysis of one of those […]

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Using a Self-Similarity Metric with Intraday Data to Define Market Regimes

The images above are the famous Sierpinski Triangle and the Koch Snowflake. These objects are “self-similar” and this means that examination at finer levels of resolution will reveal the same shape. Both are examples of “fractal” geometry, and are characteristic of many phenomena in the natural world such as mountains, crystals, and gases. Self-similar objects […]

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The Internal Bar Strength Indicator

The internal bar strength or (IBS) is an oscillating indicator which measures the relative position of the close price with respect to the low to high range for the same period. The calculation for Internal Bar Strength is as follows… IBS =  (Close – Low) / (High – Low) * 100; For example, on 13/01/2016 the QQQ […]

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Looking Into The Ulcer Index

Investors utilize a variety of performance and risk metrics to evaluate strategies. These numbers provide a summary of what happened to the strategy historically and can be useful to quickly compare different strategies. To use these statistics effectively, it is helpful to look at some of the nuances of those frequently cited and cases where […]

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Using this Indicator Makes $199K More Profit

In a recent article, Predictive Indicators written by John Ehlers he highlighted a unique indicator used to time market cycles. This indicator is a heavily modified Stochastic Oscillator and was demonstrated on the S&P. In this article, I want to put John’s Oscillator to the test by comparing it to another popular indicator used for timing […]

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Predictive Indicators

INTRODUCTION Technical traders understand that indicators need to smooth market data to be useful, and that smoothing introduces lag as an unwanted side effect. We also know that the market is fractal; a daily interval chart looks just like a weekly, monthly, or intraday chart. What may not be quite as obvious is that as […]

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The Better Rotation Indicator

The Better Rotation Indicator uses 8 major ETFs to track Global Macro trends. This indicator helps visualize the rotations from one Global Macro asset class to another – from unloved and over-sold to hot and being chased by the herd. Right now (4Q 2016) we’ve got a rotation taking place as Government Bonds get overtaken […]

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Testing Laguerre RSI Entry and Exits

In a previous article I took a look at an indicator called the Laguerre RSI. The Laguerre RSI (LRSI) was authored by John Ehlers. You can read about the Laguerre filter in his article, “Time Warp – Without Space Travel“. Within the previous article I was comparing the LRSI to the standard RSI. I did this by creating […]

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TRINdicators

When I start to write a blog post, usually my process is this: Come up with a really bad pun for the title. Write the rest of it. Bad puns are an important part of finance, and life in general. A blog reader contacted me recently to chat about various technical analysis indicators, and one […]

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The Laguerre RSI vs Classic RSI

John Ehlers is a name you’ll run across when you start your journey into testing various indicators and filters to be used in your trading models. I remember reading about the Laguerre Filter and Laguerre RSI many years ago when they first appeared on the scene. At the time I was not nearly into quantitative […]

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