Category Archives for Indicators

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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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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