Tag Archives: price patterns

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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A Not So Bullish Pattern in SPY

Yesterday SPY closed higher than 4 days ago forming a V-shaped pattern of closes, two lower closes followed by two higher ones. This pattern is immediately evident to anyone who looks at a chart of daily SPY prices. In this … Continue reading

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