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Doing anything else does not make any sense. The Dow Jones Industrial Average is closely followed by many, especially more conservative investors. It is up 21.3% year-to-date on a total return basis. The RSI(14) of this popular index has stayed above ...

This is an update of the overnight anomaly in a major sector ETF and related equities. The overnight anomaly results in a large divergence of cumulative returns from the close of a day to the open of the next day and ...

We use a popular trading strategy and one of its variants to demonstrate the high risks of volatility trading. Most of the hype in financial media about volatility trading and strategies with extraordinary returns is based on gross underestimation of the ...

When people have little of value to say about the markets, they spend their time looking for impressive statistics. The probability is high that many of those who are impressed with trivial statistics will not be around after the next ...

…usually overbought conditions occur along uptrends.

The talk about these recent patterns is senseless. You can also use this as a metric of judging the quality of the analysis involved. For example, there is a lot of talk about the fact that in the last 24 days ...

A few subscribers have asked for the code of the Momersion indicator. Below is the code we use in Amibroker. Momersion indicator details can be found here. This is the code for Amibroker: //Momersion indicator code N=Param("Period",252,0,3000,1,0); ret=ROC(C,1); M=IIf(ret*Ref(ret,-1)>0,1,0); MR=IIf(ret*Ref(ret,-1)<=0,1,0); Mc=Sum(M,N); MRc=Sum(MR,N); Momersion=100*Mc/(Mc+MRc); Plot(50,"",colorBlack,styleLine,styleNoLabel); ...

Some developers use the RSI3 instead of the RSI2 as part of their mean-reversion strategies. In this article we investigate the soundness of this choice. We consider long-only mean-reversion in SPY in this analysis. All backtests use fully invested equity and ...

The conflict about over-fitted market timing strategies versus passive investing has more to do with marketing and sales than with sound quantitative analysis.

While most traders and investors are trying to identify the next market top, we are already working on identifying the bottom that will follow, hopefully. Market top and bottoms can be identified via the use of moving averages crossovers but at ...