Monthly Archives: June 2012

Fooled by Randomness Through Selection Bias

There are software programs for traders that allow combining technical indicators with exit conditions for the purpose of designing systems that fulfill desired performance criteria and risk/reward objectives. In general and due to data-mining bias it is very difficult to differentiate the random systems from those … Continue reading

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Another Major Failure of Chart Pattern Analysis

Another major chart pattern, this time in Russell 2000 Index, has just failed. Chartists are dumbfounded by the failures of even the best of chart patterns recently. Some have come to understand what is happening but some others still resist not realizing … Continue reading

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A Rare Divergence

Signals generated by a Price Action Lab scan as of the close of Wednesday, June 27, 2012, indicate a divergence between SPY and QQQ. This type of divergence is rare and it may mean a few different things with the most … Continue reading

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Common Long Signals in DIA, SPY and QQQ

I call common patterns those that form in one or more securities that belong to a pre-defined group but are profitable in the history of all securities in the group. This special category of patterns may be identified using a unique feature … Continue reading

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Fasten Your Seatbelts

According to my analysis and early signals I received yesterday, we may get a major rebound and a rally of the S&P 500 Index from these levels with a target close to 1,363. This analysis holds unless a major change in fundamentals takes place … Continue reading

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Automated Discovery of Trading Systems

There are many ways of accomplishing automated trading strategy discovery. The idea is simple in principle and I have described it in more detail in my (out-of-print) books since 1999. In a nutshell, historical data series are used to discover robust … Continue reading

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Signals Indicating a Higher Probability for a Stock Market Rebound

Signals generated by the p-indicator for SPY and QQQ show a higher probability than usual for a market rebound.  Share

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Will Silver Rally Again or Plunge?

Last time SLV dropped below $26, on December 29, 2011, it rallied for about two months to over $36. Last Friday SLV tested again the December 2011 low and closed 50 cents above it at $26.15. Will there be another … Continue reading

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