Category Archives: Price Action Lab Patterns

Price Action Lab Software

Posted on June 15, 2013 by Michael Harris

Price Action Lab (PAL) is a program that can be used for trading algo discovery and for discretionary trading. In this article the core capabilities of this software are presented but there are many other ways of using PAL. Links to some useful articles about trading are also … Continue reading →

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Detrended P-Indicator Results

Posted on June 11, 2013 by Michael Harris

The p-indicator first appeared in my book “Short-term Trading With Price Patterns” in 1999. It is an advanced indicator based on price patterns that comes in the form of an oscillator and it is a standard feature of Price Action … Continue reading →

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The Art and Science of Price Action Analysis

Posted on June 2, 2013 by Michael Harris

Many traders think that price action analysis is the visual examination of charts for patterns of price and indicators. But the visual examination of charts mostly projects cognitive biases on price action and facilitates selection of conditions that support subjective views about market direction. There are many objective ways … Continue reading →

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Quant Day and Position Trading With Price Action Lab

Posted on June 1, 2013 by Price Action Lab

Price Action Lab can discover price patterns in historical stock, futures and forex data that fulfill user defined performance statistics and risk/reward parameters and can be used to develop automated trading systems. PAL can also be used in discretionary quantitative day and position trading by … Continue reading →

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Fooled By Out of Sample Testing

Posted on May 28, 2013 by Michael Harris

Developing trading systems on an in-sample of historical data and then testing the results on an out-of-sample is a widely used practice that hides some fundamental flaws. In this article I list some of the problems that may arise from the wrong application of … Continue reading →

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An Introduction to Price Action Lab Software

Posted on May 24, 2013 by Price Action Lab

This is an introduction to the main features and capabilities of Price Action Lab (PAL). There are many ways of using this software and here only a partial list of its main features and capabilities is presented along with links to some articles about trading.

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Australian S&P/ASX 200 Inside Day Pattern and Divergence

Posted on May 18, 2013 by Michael Harris

The Australian S&P/ASX 200 index has risen 11.44% this year, moving on an almost straight line to the middle of February but then volatility increased and little progress has been made. Since February 20 of this year this index has gained 2.3% and there … Continue reading →

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ETF Directional Probabilities Point to a Market Correction

Posted on May 14, 2013 by Price Action Lab

The directional probabilities of 12 popular ETFs were calculated using the p-indicator function of Price Action Lab. Four major ETFs, SPY, QQQ, DIA and IWM, show high significance for short positions with 2% target .

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Significance of a System For Trading SPY

Posted on May 11, 2013 by Michael Harris

The SPY2p5 system was machined designed on April 4, 2012 by Price Action Lab using an in-sample from SPY inception (01/29/1993) to December 31, 2008. Then the system was validated on unseen data, called the the out-of-sample,  from January 2, 2009 … Continue reading →

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Features of Price Action Lab v4.0

Posted on May 2, 2013 by Price Action Lab

This post discusses the core features and capabilities of Price Action Lab (PAL). There are many ways of using this software and here only a partial list of the main features and capabilities of the software is presented. Links to some useful articles about trading are … Continue reading →

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