Category Archives: Technical Analysis

RSI Indicator Levels Are Irrelevant For Timeframes Longer Than A Couple Of Days

Changes in Relative Strength Index (RSI) have low correlation with changes in price for timeframes longer than two days. This relationship is highly robust for four major ETFs. The conclusion is that only very short-term traders should look at the … Continue reading

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Despite Recent Hype, Stock Market Price Action Is Still Normal

Price action in the stock market indicates normal conditions and away from critical levels, according to an indicator based on absolute daily returns.

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The Nine-Day Losing Streak In S&P 500 Is A Random Pattern

While we are preparing our weekly premium report, we thought it is a good idea to share an excerpt about the nine-day losing streak in S&P 500. We are surprised by the large number of professionals who have paid attention … Continue reading

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Announcing The Release of DLPAL PRO

We are pleased to announce the release of DLPAL PRO. This marks a milestone in the development of this advanced machine learning tool for financial trading. Examples with results are included at the end of this article.

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A Large Move Is About To Start in The Stock Market

Our indicator of the state of micro mean-reversion recently made a new all-time low in the daily chart of SPY with data since inception. A large move is about to start in the U.S. stock market. What is interesting is … Continue reading

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Old-Timer Traders Still Fighting A Market Regime Change But Want To Teach You How To Trade

Some old-timer traders complain in social media about the lack of volatility. Trading methods of the last century have stopped working, especially chart patterns and simple indicators, after a significant market regime change. It is interesting that some old-timers are … Continue reading

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Fibonacci Voodoo On Gold

Gold prices retraced about 38% of their previous uptrend that started in December of last year and peaked during last July. One could say that gold prices found support at the 38.2% Fibonacci retracement level but that is more like … Continue reading

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A Brief Note On Chart Patterns With An Example Of Recent Failure

A recent failure of an island reversal pattern in the chart of the 10-Year Note yield adds to a long list of failed chart patterns in the last few years and reinforces claims that they are random formations. In the … Continue reading

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