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 etf had a high price of $106.23, a low price of $101.74 and a close price of $101.90. The value of IBS would be calculated as … (101.90 – 101.74) / (106.23 – 101.74) * 100 = 3.56 Low IBS readings show that a market has closed near the lows of the day, high IBS readings show that a market has closed near the highs of the day. […]Read more ›
Post Tagged with: "market study"
In a recent article, Seasonality Study, I took a look at the classic seasonality effect as seen in the U.S. markets. Briefly recapping that article, it shows that the trading days between November through May appear to hold significant gains in the market while the trading days between June and October hold far less profit. In this article I would like to test the market’s intra-day behavior based upon seasonality. This idea came upon me as a reader privately emailed me. We are all aware that different sessions exist for any market. For example, when dealing with the emini S&P we have a pre-market session, the morning session, lunch time session, and an afternoon session. Often you can see distinct characteristics within each session. To test for […]Read more ›
I came across an article over at the blog, Jay On The Markets, that talked about applying a bullish outside indicator on a monthly chart. The article I was reading is titled, “One Sign That the Bull May Still Have Legs“. In this article Jay talks about the incredible run the U.S. broad market has experienced as of late. Remarking that “The Trend is Your Friend”, Jay goes on to highlight a potential bullish indicator which appears on the monthly chart of the S&P. The indicator is a bullish outside month. I thought I would spend some time testing this indicator and see what the results may tell. Of course, the code used to test this indcator appears at the […]Read more ›