This is a continuation of a recent blog post in which I introduced the MarketLife PowerLevels. These levels are predicted support and resistance with a robust quantitative edge, available on…
Support and resistance is a controversial topic. Traders’ cognitive bias and random price motion conspire to play tricks on the mind. Many technical analysis books and gurus parrot conventional wisdom…
How do we know how that market is doing on any day? If we turn on the news, we will hear something like “the Dow Jones is up 40 points…”,…
I want to share the results of a quick statistical study I did today, and also share a few thoughts about using stats, in general, to shape our trading decisions.…
This is part 2 of a two part blog. Read the first part here. Quick summary: to test the validity of price levels in markets, we created a test in…
First, thank you to each of you who participated in the experiment/quiz. We have stopped collecting data, but you can re-take the quiz and see which answers were right or…
Markets broadly exist in two states: trends or trading ranges. In other words, a market is happy with the current price (and accepts it) or is moving to another price.…
https://youtu.be/cx1Sbk8aGDo
Sometimes, reading market action is about putting the pieces together... building a big picture from the composite of small bits of information that might not seem terribly meaningful by themselves.…
https://youtu.be/u5lr7WegGQ8
https://youtu.be/FHGOSgfqbjY
Multiple timeframe analysis is almost a buzzword in technical analysis. I have been involved in markets actively for two decades, and have been an active participant in dialogue about markets…
I can get right to the punchline, and make this a very short blog post: don't trade when the market you trade is in consolidation; more specifically, do not trade…
I've focused quite a bit here on quantitative aspects of trading and market analysis, and I've also just scratched the surface of the thorny subject of intuition. Today, I want…