Category Archives: Technical Analysis

One hundred and One Days to a Bull Trap

After 101 days, the longest consolidation in the S&P 500 ended with a sharp drop, triggered by a debt crisis in Europe. Bulls now hope that the Fed will run to the rescue. Share

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Longest Consolidation Period in Stocks in the Last 65 Years

The S&P 500 has moved sideways for 19 weeks in a horizontal channel with a 4.7% range from lowest low to highest high. This has not occurred before in the last 65 years. What could this pattern mean? Share

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Putting Their Hindsight to Work for You

Hindsight can be useful to traders and investors if they realize that the bulk of market analysis about the markets is based on it. For example, a trend is realized only in hindsight because while it is formed every point … Continue reading

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The last Chapter of Classical Technical Analysis

When classical technical analysis was developed, people did not have access to data to investigate the validity of its claims. Some made a name by developing simple indicators without any proof that they actually worked. It’s time that the book … Continue reading

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Naive Bond Market Chartists and Confirmation Bias

The most recent massive blow to naive charting in the bond market was delivered during 2011 when some saw an inverse head and shoulders in yields. There have been more since but with less impact. I have argued that trading … Continue reading

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S&P 500: Chart and Quantitative Analysis for June 9, 2015

For better results we combine chart and quantitative analysis. The chart analysis is based on many years of experience with price action and the quantitative analysis is based on a robust but deterministic algorithm (no neural networks or genetic algos) … Continue reading

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Two-Period RSI Versus a Two-Day Losing Streak

The RSI indicator has served as the foundation of several popular short-term trading strategies over the years mainly due to its popularity. In the article I compare the results of a basic system based on a two-period RSI to those … Continue reading

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