Tag Archives: chart patterns

Bond Charts Have Become the Junkyard of Chart Patterns

Bonds, and especially TLT, the popular ETF, have become a junkyard of classical chart patterns, a place where wrecking of such dubious formations is frequent and unforgiving.

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The Main Cause of Failure of Some Popular Technical Trading Methods

Trend-following based on indicators and classical chart patterns are two trading methods that were developed in mid 20th century using data from the equity markets mainly. These methods worked well for an extended period of time in those markets due to the presence of autocorrelation. After … Continue reading

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Massive Money May Start Chasing the Market

Another self-fulfilling prophecy may fail soon and those who “sold in May and went away” may start returning back to the market and chasing it. I warned about this possibility in a post in the beginning of May. The strategy of basically trying to enforce a self-fulfilling … Continue reading

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HFT Robot Flocking is the Emergent New Order in the Markets

Flocking is the behavior of a group of birds when in flight. Such behavior is similar to the swarm behavior of insects and the herd behavior of animals. This behavior is emergent and not governed by central coordination. Flocking accomplishes certain objectives, like for example … Continue reading

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Another Chart Pattern Failure Worth Mentioning and Some Typical Arguments of Technical Analysts

It took just one week to invalidate a typical reversal rounding top formed in SLV, the Silver ETF. This marks another major failure of technical analysis, one of the many witnessed in the last couple of years. Should traders stop using this … Continue reading

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