Category Archives for Indicators

Using this Indicator Makes $199K More Profit

Oscillator

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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The Secret Weapon of Technical Analysis

The vast majority of technical indicators perform a computation on the price or volume of an individual security.  While these indicators can provide valuable insights, most traders ignore the most effective type of technical indicators. Market Breadth Indicators Market breadth indicators do not use information based on a single security, they use information based on […]

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Win Ratio EasyLanguage Code

In the article,Win Rate The Most Important Metric, Michael Harris discusses the importance of Win Rate when it comes to building a profitable trading system. I spent a few minutes creating an EasyLanguage function that can be used during your development process in calculating the Win Ratio for you. The function can be applied to any strategy. […]

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Distance Weighted Moving Averages (DWMA and IDWMA)

The distance weighted moving average is another nonlinear filter that provides the basis for further research and exploration. In its traditional form, a distance weighted moving average (DWMA) is designed to be a robust version of a moving average to reduce the impact of outliers. Here is the calculation from the Encyclopedia of Math: Notice […]

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The 40-Week Cycle Revisited

As I mentioned last time around, when it comes to analyzing the financial markets, I am a proud graduate of “The School of Whatever Works.” In my youth I “wrote down” a lot of interesting analysis ideas (that’s how we did it back then, sadly). Whenever I would hear or read of a new market […]

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