Tag Archives: price patterns

Profiting From Random Strategies

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

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Discovering Volume and Indicator Patterns With Price Action Lab

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.

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Developing A Trading Strategy For FANG stocks

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.

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Identifying Momentum Price Patterns

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

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Developing Trading Systems Based on a Large Number of Price Patterns

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

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Quantitative Analysis of Popular ETFs

A quantitative analysis of recent price action of popular ETFs points to financials (XLF) and techs (QQQ) having high probability for an upward short-term move.

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Quantitative Analysis of the 4-Day Pattern in SPY

The 4-day pattern formed in SPY as of the close of yesterday involves three down days and an outside day. This particular price pattern has win rate close to 70% and all of its occurrences since 2006 signaled a 2% rise. However, … Continue reading

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Quant Analysis of the Double Inside Day Breakout in S&P 500

After forming a double inside day, prices yesterday closed above the high of the first day of this pattern. This new pattern has a small positive bias when tested on all S&P 500 stocks but occurrences are not very frequent.

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