Monthly Archives: February 2011

Price Pattern Trading – Part I

In part I of this article we will study the basic structure of price patterns and in Part II we will discuss advanced techniques of using price patterns to develop trading systems.                            Figure 1 shows an example of the a price … Continue reading

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Models, S&P 500 Returns and Related Folklore

According to Investopedia, the Sports Illustrated Swimsuit Issue Indicator was first coined by the Bespoke Investment Group. This indicator suggested, when it first appeared, that when the cover model is an American the S&P 500 has a higher probability to generate a yearly … Continue reading

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Who Needs the Trading Day? Part Two

I already demonstrated in another article the flaws in the Bespoke study about buying SPY at the close and selling it on the next open. Basically, that study did not account for commissions and this effect alone completely changed the picture … Continue reading

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Who Needs the Trading Day? I do

A study last month in the Bespoke blog concluded that the simple strategy of buying on the close and selling on the open of next day would have significantly outperformed buy and hold since the launch of SPY ETF. The Bespoke results were published in … Continue reading

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