Tag Archives: buy the dip
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.
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
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.
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.