Category Archives for Indicators

Battle of the Oscillators…Round 2

Oscillator

In a past 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 Backtesting Environment for […]

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Down Days Trading Model

I’ve written a lot about the 2-period RSI indicator popularized by Larry Connors and Cesar Alvarez. This indicator highlights significant pullbacks which can often be buying opportunities within major market indexes like the S&P.  Pullbacks in the market are a result of the market closing down. That means, today’s close is lower than the open. […]

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The MVCI (Whatever That Means) Indicator

Some people tell me that I have “too much time on my hands” because I spend so much time “crunching numbers”. I tell them, “That’s ridiculous, I don’t have any time on my hands because I am so busy crunching numbers”. (That usually shuts them up. At least for a little while). In any event it […]

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Five Stock Market Timing Indicators Put To The Test

Humans have been trying to clock in the stock market with fancy indicators since the beginning of time. But do they work? In this article I test five different market timing indicators. They are:Coppock CurveZweig Breadth ThrustArms Index (TRIN)McClellan OscillatorNo. Of New 52-Week LowsThese market indicators are all available with my historical database from Norgate […]

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Understanding the Relationship Between Stocks & Bonds

Intermarket Analysis is the comparison of potentially related markets. For example: S&P500 and 30 Year Treasury Bonds 30 Year Treasury Bonds and Gold S&P500 and Japanese Yen Shanghai Composite Index and Aussie Dollar, etc. The problem with using TradeStation for any Intermarket Analysis is the dreaded “You may not mix symbols with different delays in […]

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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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