Category Archives: Technical Analysis

From Certain V-bottoms to Uncertain Double Bottoms

Most remember the certain V-bottoms in the S&P 500 during 2014. These are now replaced by uncertain double bottoms. There is an area of serious resistance in SPY and more whipsaw should be expected unless fundamentals change. Share

Posted in Technical Analysis | Tagged , , | Leave a comment

Visual Chart Trading Models Require Ecorithms

Even some academic researchers have fallen into the trap of trying to quantify the performance of patterns used by visual chart traders, such as for example triangles, head and shoulders, support and resistance and trendlines. Quantification of such patterns requires … Continue reading

Posted in Quantitative trading, Technical Analysis | Tagged , , | Leave a comment

SP500: High Uncertainty With Positive Short-term Bias

High uncertainty has caused the S&P 500 to move laterally in the last five days. At the same time, the momentum decline is halted although the index reflects a strong tendency for mean reversion. The short-term directional bias has improved … Continue reading

Posted in Quantitative trading, Technical Analysis | Tagged , , , | Leave a comment

In Search of a Bottom

Many are searching for a bottom although some do not admit it. Some have even announced it already. Here is an attempt to identify a bottom based on a combination of technical and quantitative analysis. I also talk about some … Continue reading

Posted in Market Statistics, Technical Analysis | Tagged | Leave a comment

Mean Reversion Rules The Markets

Persistent mean reversion in the equity and other markets is limiting the profit potential of both short-term and longer-term traders. As it is shown in the included chart, both uptrends and downtrends in the S&P 500 were dominated by mean … Continue reading

Posted in Market Statistics, Technical Analysis | Tagged , , | Leave a comment

S&P 500 Ambiguous Trendline Support

Technical analysis during times of market turmoil can offer more of a psychological support than anything else because technical levels are often ambiguous. Share

Posted in Technical Analysis | Tagged , , | Leave a comment

SP500: Fastest Switch From Golden To Death Cross in 65 Years

This pattern may not have any predictive power but it reflects directionless price action and high level of uncertainty. Share

Posted in Market Statistics, Technical Analysis | Tagged , | Leave a comment