A 6-bar SPY Pattern With a Bullish Bias

Posted on February 23, 2012 by Michael Harris

This 6-bar pattern has a bullish bias. SPY has moved up at least 3% two out of every three times it has formed. This pattern also shows a bullish bias in several other ETFs. Is it signalling another winning long position this time around?

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Stock Market Statistics

Posted on February 22, 2012 by Michael Harris

The statistics are for the US stock market as of the close of Tuesday, February 21, 2012

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Short-term Direction Probabilities for Dow-30 Stocks, February 21, 2012

Posted on February 21, 2012 by Michael Harris

The probabilities of directional up/down moves with profit target and stop-loss equal to 3%, are listed for all stocks in Dow-30, as of the close of February 17, 2012. These probabilities were calculated using the p-indicator.

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Optimal Trading Using the Kelly Formula

Posted on February 20, 2012 by Michael Harris

The Kelly formula is based on the work of John Kelly of Bell Laboratories in the 1950s on the subject of telephone transmission signal to noise ratio. Professional gamblers and traders use a modified version of the original formula to determine optimal bet size. In this blog I will try to clarify a few  issues related to the use of this formula.

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What You Can Do with Price Action Lab

Posted on February 19, 2012 by Price Action Lab

Price Action Lab™ (PAL) analyzes market price action based on user-defined performance statistics and risk/reward parameters and achieves that by searching equity, futures and forex historical daily or intraday data in a fully automated way.There are many ways of using Price Action Lab. Here only a partial list is provided with useful links to information about its effective use.

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ETF Trends – Week of February 21, 2012

Posted on February 19, 2012 by Michael Harris

A reversal in the short-term trend of most ETFs did not occur last week. As of the close of Friday there were only 5 changes in the ETF trend state table in relation to the previous report. Stock index ETFs maintained their uptrend and metal ETFs remained undecided about future direction. In my opinion, the prevailing market dynamic is not sustainable. 

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Shanghai Stock Exchange Composite Index Has Rewarded Short-term Speculators Only

Posted on February 18, 2012 by Michael Harris

I compare the Shanghai Stock Exchange Composite Index to S&P 500 from the point of view of the availability of medium to longer-term investment opportunities. It is evident from the comparison that the former market has not offered as many opportunities for profit to longer term investors as the latter has.

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Shanghai Stock Exchange Composite Index Rare Double inside Day

Posted on February 18, 2012 by Michael Harris

The Shanghai Stock Exchange Composite Index has formed a double inside day after breaking above an important resistance level. What could this rare pattern mean for the future direction of this market?

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