Tag Archives: buy the dip

Are Trading Strategies Based on the RSI2 Random?

The Relative Strength Index is a popular indicator for developing short-term long-only strategies but careful analysis shows that its performance depends on price action dynamics and as a result ex-ante parameter selection is hard or impossible.

Posted in Trader education, Trading Strategies | Tagged , , , , , , | Leave a comment

Buying the Dips Is Alive and Well

Nearly 63% of down SPY ETF days in last 252 days were followed by up days. The maximum was close to 68% in the golden times of “buying the dips” in the start of 2017. Also, a FAANG stock where … Continue reading

Posted in Market Statistics | Tagged | Leave a comment

Claims that Buy the Dip is New Phenomenon or that it no Longer Works Are False

On February 7 Bank of America (NYSE:BAC) argued in favor of a bullish case after an 8% pullback. But yesterday, the same bank argued that the popular buy the dip strategy is no longer working.

Posted in Trading Strategies | Tagged , , | Leave a comment

Mystery Charts That Fit Narratives

Several mystery charts that fit certain narratives have appeared recently in financial social media. This is a growing trend. Here is what I decided to do.

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

Buy The Dip On The Decline

Buy the dips has been a profitable simple strategy this year but its effectiveness is now on the decline after topping in February of this year. Often a top in this strategy is followed by a short-term correction due to … Continue reading

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