Category Archives: Technical Analysis

Dow Theory Myth

Hello, this is 2017, as far as I can tell although at times it’s difficult to follow the arrow of time when reading social media posts about the markets. Some people still rely on stock market theories developed in the … Continue reading

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Trading Psychology Has Become Irrelevant

In the past trading psychology played an important role in controlling the emotional factors that affected profitability. Nowadays, anyone talking about a need for proper trading psychology has fallen behind in the era of algo trading and machine learning. If … Continue reading

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All Actions In The Markets Amount To Forecasts

All actions in the markets based on any method, technical or fundamental, amount to forecasts. Any claims that technical or fundamental analysis are not used to make forecasts but for risk management purposes only are naive and demonstrate ignorance.

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Stationary Win Rate Examples

Visual chartists, also known as noise traders, in the process of defending a method with low win rate claim that high win rate strategies do not exist. When presented with evidence to the contrary they argue that high win rate … Continue reading

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The Highly Irrelevant 50-Day Moving Average

The Nasdaq 100 fell below its 50-day moving average yesterday as it became evident from the immediate response in social media and financial blogosphere. But they were talking about a highly irrelevant indicator.

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Major Correction Indicator With A Sample Of One And A Half

Most indicators that attempt to time a stock market top suffer from the curse of small samples, especially after the 1990s, when a significant change in market dynamics occurred. Although there is lack of statistical significance, the information they provide … Continue reading

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