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	<title>Price Action Lab Blog</title>
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	<link>http://www.priceactionlab.com/Blog</link>
	<description>Quantifying Market Price Action</description>
	<lastBuildDate>Wed, 22 May 2013 07:30:45 +0000</lastBuildDate>
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		<title>European Stock Indices in Overbought Territory</title>
		<link>http://www.priceactionlab.com/Blog/2013/05/european-stock-indices-in-overbought-territory/</link>
		<comments>http://www.priceactionlab.com/Blog/2013/05/european-stock-indices-in-overbought-territory/#comments</comments>
		<pubDate>Wed, 22 May 2013 07:12:29 +0000</pubDate>
		<dc:creator>Michael Harris</dc:creator>
				<category><![CDATA[ETF Analysis]]></category>
		<category><![CDATA[Technical Analysis]]></category>
		<category><![CDATA[gambler's fallacy]]></category>
		<category><![CDATA[overbought/oversold condtions]]></category>

		<guid isPermaLink="false">http://www.priceactionlab.com/Blog/?p=9680</guid>
		<description><![CDATA[The FTSE 100 and the German DAX are now in overbought territory according to classical technical analysis but those who rely on gambler&#8217;s fallacy to trade should pay attention to the fact that, historically, short positions in those and other &#8230; <a href="http://www.priceactionlab.com/Blog/2013/05/european-stock-indices-in-overbought-territory/">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
		<wfw:commentRss>http://www.priceactionlab.com/Blog/2013/05/european-stock-indices-in-overbought-territory/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Late Gold Bears May Get Crashed</title>
		<link>http://www.priceactionlab.com/Blog/2013/05/late-gold-bears-may-get-crashed/</link>
		<comments>http://www.priceactionlab.com/Blog/2013/05/late-gold-bears-may-get-crashed/#comments</comments>
		<pubDate>Tue, 21 May 2013 07:17:52 +0000</pubDate>
		<dc:creator>Michael Harris</dc:creator>
				<category><![CDATA[ETF Analysis]]></category>
		<category><![CDATA[Technical Analysis]]></category>
		<category><![CDATA[chartists]]></category>
		<category><![CDATA[ex post ex ante technical analysis]]></category>
		<category><![CDATA[gold]]></category>

		<guid isPermaLink="false">http://www.priceactionlab.com/Blog/?p=9673</guid>
		<description><![CDATA[Last Friday I warned about the possibility of a double bottom in GLD and that traders should not listen to either catastrophic or euphoric calls about gold or any other market because most of those who issue them are in the &#8230; <a href="http://www.priceactionlab.com/Blog/2013/05/late-gold-bears-may-get-crashed/">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
		<wfw:commentRss>http://www.priceactionlab.com/Blog/2013/05/late-gold-bears-may-get-crashed/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Fooled by Random Backtesting</title>
		<link>http://www.priceactionlab.com/Blog/2013/05/fooled-by-random-backtesting/</link>
		<comments>http://www.priceactionlab.com/Blog/2013/05/fooled-by-random-backtesting/#comments</comments>
		<pubDate>Mon, 20 May 2013 07:02:08 +0000</pubDate>
		<dc:creator>Michael Harris</dc:creator>
				<category><![CDATA[Trading System Analysis]]></category>
		<category><![CDATA[backtesting]]></category>
		<category><![CDATA[intraday trading]]></category>
		<category><![CDATA[market participants]]></category>

		<guid isPermaLink="false">http://www.priceactionlab.com/Blog/?p=9660</guid>
		<description><![CDATA[Backtesting trading systems on historical data is again becoming popular almost 30 years after it started being used by individual traders due to recent advances in web technology and server speed that allows its online implementation. If one knows what &#8230; <a href="http://www.priceactionlab.com/Blog/2013/05/fooled-by-random-backtesting/">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
		<wfw:commentRss>http://www.priceactionlab.com/Blog/2013/05/fooled-by-random-backtesting/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>EURUSD and S&amp;P 500 Correlation at a 4-Year Low</title>
		<link>http://www.priceactionlab.com/Blog/2013/05/eurusd-and-sp-500-correlation-at-a-4-year-low/</link>
		<comments>http://www.priceactionlab.com/Blog/2013/05/eurusd-and-sp-500-correlation-at-a-4-year-low/#comments</comments>
		<pubDate>Sat, 18 May 2013 17:39:35 +0000</pubDate>
		<dc:creator>Michael Harris</dc:creator>
				<category><![CDATA[Technical Analysis]]></category>
		<category><![CDATA[EURUSD]]></category>

		<guid isPermaLink="false">http://www.priceactionlab.com/Blog/?p=9647</guid>
		<description><![CDATA[The 120-day correlation chart between EURUSD and S&#38;P 500 index fell a few days ago to levels seen at the low of the market in March 2009, the only difference being that back then the market had fallen more than 50% and the &#8230; <a href="http://www.priceactionlab.com/Blog/2013/05/eurusd-and-sp-500-correlation-at-a-4-year-low/">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
		<wfw:commentRss>http://www.priceactionlab.com/Blog/2013/05/eurusd-and-sp-500-correlation-at-a-4-year-low/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Australian S&amp;P/ASX 200 Inside Day Pattern and Divergence</title>
		<link>http://www.priceactionlab.com/Blog/2013/05/australian-spasx-200-inside-day-pattern-and-divergence/</link>
		<comments>http://www.priceactionlab.com/Blog/2013/05/australian-spasx-200-inside-day-pattern-and-divergence/#comments</comments>
		<pubDate>Sat, 18 May 2013 09:07:46 +0000</pubDate>
		<dc:creator>Michael Harris</dc:creator>
				<category><![CDATA[Price Action Lab Patterns]]></category>
		<category><![CDATA[Technical Analysis]]></category>
		<category><![CDATA[Australian S&P/ASX 200]]></category>
		<category><![CDATA[divergence]]></category>

		<guid isPermaLink="false">http://www.priceactionlab.com/Blog/?p=9628</guid>
		<description><![CDATA[The Australian S&#38;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 &#8230; <a href="http://www.priceactionlab.com/Blog/2013/05/australian-spasx-200-inside-day-pattern-and-divergence/">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
		<wfw:commentRss>http://www.priceactionlab.com/Blog/2013/05/australian-spasx-200-inside-day-pattern-and-divergence/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Technical Analysis and Cognitive Bias</title>
		<link>http://www.priceactionlab.com/Blog/2013/05/technical-analysis-and-cognitive-bias/</link>
		<comments>http://www.priceactionlab.com/Blog/2013/05/technical-analysis-and-cognitive-bias/#comments</comments>
		<pubDate>Fri, 17 May 2013 07:45:03 +0000</pubDate>
		<dc:creator>Michael Harris</dc:creator>
				<category><![CDATA[ETF Analysis]]></category>
		<category><![CDATA[Market Statistics]]></category>
		<category><![CDATA[Technical Analysis]]></category>
		<category><![CDATA[cognitive bias]]></category>
		<category><![CDATA[market break-even point]]></category>
		<category><![CDATA[Precognition]]></category>
		<category><![CDATA[selection bias]]></category>

		<guid isPermaLink="false">http://www.priceactionlab.com/Blog/?p=9610</guid>
		<description><![CDATA[One may find scores of recent articles in the blogoshpere calling for a continuation of the gold downtrend after a pause and an extension of the stock rally to &#8230; you pick the future date, all are there. In reality, these analysts are &#8230; <a href="http://www.priceactionlab.com/Blog/2013/05/technical-analysis-and-cognitive-bias/">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
		<wfw:commentRss>http://www.priceactionlab.com/Blog/2013/05/technical-analysis-and-cognitive-bias/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Adaptive Trend-following Using the Randomness Index Indicator</title>
		<link>http://www.priceactionlab.com/Blog/2013/05/adaptive-trend-following-using-the-randomness-index-indicator/</link>
		<comments>http://www.priceactionlab.com/Blog/2013/05/adaptive-trend-following-using-the-randomness-index-indicator/#comments</comments>
		<pubDate>Thu, 16 May 2013 05:57:39 +0000</pubDate>
		<dc:creator>Michael Harris</dc:creator>
				<category><![CDATA[Trading System Design]]></category>
		<category><![CDATA[adaptive trading systems]]></category>
		<category><![CDATA[randomness index]]></category>
		<category><![CDATA[trend following]]></category>

		<guid isPermaLink="false">http://www.priceactionlab.com/Blog/?p=9586</guid>
		<description><![CDATA[The Randomness Index was introduced yesterday in another post. The value of this indicator is calculated for any set period using the closing prices. Under normal conditions the indicator swings between +100 and -100 although values beyond those extremes are also possible. Values between +10 &#8230; <a href="http://www.priceactionlab.com/Blog/2013/05/adaptive-trend-following-using-the-randomness-index-indicator/">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
		<wfw:commentRss>http://www.priceactionlab.com/Blog/2013/05/adaptive-trend-following-using-the-randomness-index-indicator/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Market Randomness Indicator</title>
		<link>http://www.priceactionlab.com/Blog/2013/05/market-randomness-indicator/</link>
		<comments>http://www.priceactionlab.com/Blog/2013/05/market-randomness-indicator/#comments</comments>
		<pubDate>Wed, 15 May 2013 07:54:15 +0000</pubDate>
		<dc:creator>Michael Harris</dc:creator>
				<category><![CDATA[ETF Analysis]]></category>
		<category><![CDATA[Technical Analysis]]></category>
		<category><![CDATA[Trend following]]></category>
		<category><![CDATA[random trading]]></category>
		<category><![CDATA[Randomness Indicator]]></category>
		<category><![CDATA[trend following]]></category>

		<guid isPermaLink="false">http://www.priceactionlab.com/Blog/?p=9572</guid>
		<description><![CDATA[I have been looking for an indicator of market randomness for a long time and I believe I have now found a reliable one based on extensive backtesting results. The indicator shows when market activity is random and also when non-random &#8230; <a href="http://www.priceactionlab.com/Blog/2013/05/market-randomness-indicator/">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
		<wfw:commentRss>http://www.priceactionlab.com/Blog/2013/05/market-randomness-indicator/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>ETF Directional Probabilities Point to a Market Correction</title>
		<link>http://www.priceactionlab.com/Blog/2013/05/etf-directional-probabilities-point-to-a-market-correction/</link>
		<comments>http://www.priceactionlab.com/Blog/2013/05/etf-directional-probabilities-point-to-a-market-correction/#comments</comments>
		<pubDate>Tue, 14 May 2013 08:32:18 +0000</pubDate>
		<dc:creator>Price Action Lab</dc:creator>
				<category><![CDATA[ETF Analysis]]></category>
		<category><![CDATA[Price Action Lab Alerts]]></category>
		<category><![CDATA[Price Action Lab Patterns]]></category>
		<category><![CDATA[directional bias]]></category>
		<category><![CDATA[p-indicator]]></category>

		<guid isPermaLink="false">http://www.priceactionlab.com/Blog/?p=9554</guid>
		<description><![CDATA[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 . These alerts are for users of Price Action Lab but demo users of &#8230; <a href="http://www.priceactionlab.com/Blog/2013/05/etf-directional-probabilities-point-to-a-market-correction/">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
		<wfw:commentRss>http://www.priceactionlab.com/Blog/2013/05/etf-directional-probabilities-point-to-a-market-correction/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Reversal Signals in QQQ</title>
		<link>http://www.priceactionlab.com/Blog/2013/05/reversal-signals-in-qqq/</link>
		<comments>http://www.priceactionlab.com/Blog/2013/05/reversal-signals-in-qqq/#comments</comments>
		<pubDate>Tue, 14 May 2013 07:03:14 +0000</pubDate>
		<dc:creator>Michael Harris</dc:creator>
				<category><![CDATA[ETF Analysis]]></category>
		<category><![CDATA[Technical Analysis]]></category>
		<category><![CDATA[bear trap]]></category>
		<category><![CDATA[Fibonacci]]></category>
		<category><![CDATA[indicator divergence]]></category>
		<category><![CDATA[reversal signals]]></category>

		<guid isPermaLink="false">http://www.priceactionlab.com/Blog/?p=9548</guid>
		<description><![CDATA[Reversal signals in a bull market should be analyzed very carefully because they have a high failure rate. Since the beginning of this year this bull market has generated plenty of false reversals. The losses of the shorts caught in &#8230; <a href="http://www.priceactionlab.com/Blog/2013/05/reversal-signals-in-qqq/">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
		<wfw:commentRss>http://www.priceactionlab.com/Blog/2013/05/reversal-signals-in-qqq/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
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