Tag Archives: price patterns
The bulk of trading strategies are random because they are either overfitted to noise or are the result of selection bias. However, there are ways of even profiting from random strategies. In this article I outline the general idea and … Continue reading
Price Action Lab was designed to work with price data but it can also be used to discover volume and indicator patterns. In this article we offer examples of how to use the program to discover volume and RSI patterns.
The development of a trading strategy for FANG stocks was based on applying portfolio backtest validation during the identification phase. This was done for the purpose of reducing data-mining bias. This article outlines the steps followed and the results.
Momentum is usually identified by a simple price pattern that compares current price to price N periods ago. This article considers an extended class of momentum price patterns and the results are used to develop longer-term trading models based on … Continue reading
Suppose that you have a large number of price patterns that you have tested and decided to trade. How do you develop a trading system based on them? Apparently, there are many ways of doing this that offer increased flexibility … Continue reading
Last week I briefly responded to a question that has come up several times recently about the difficulty in finding price patterns with high reward-to-risk ratio. I showed with an example using QQQ daily data that such patterns do exit. Here, I … Continue reading