This is a followup to my previous post that included a visualization of seasonal tendencies for about 90 years of the US stock market. A visualization like that is a good…
This weekend, a reader, Paul, asked: In my limited understanding, Rsi, cci and % r are all basically trying to show the same thing When is one better than the…
Most people know that stock markets tend to be much more active on the open and close, and are often "dead" in the middle of the day. This is important…
Let's think a bit about "signal generation". When we test something in the market what we're looking for is an answer to "What happens after _______ occurs?" This is really…
Please read my last post first, before you begin this one. I ended the last post by suggesting that we were probably more interested in changes than in price levels.…
https://youtu.be/cx1Sbk8aGDo
One of the tools I’ve come to rely on over the last 10 years is an indicator I call Sigma Spikes. (Read about it and how to calculate here.) This…
Consistency in trading results requires consistency of process. If you are doing something different every time you trade, it’s hard to evaluate your results. A simple pre-trade checklist can help…
I change slowly. The last major change I made to my trading was in 2005, and the smaller changes I've made since then are tiny, incremental changes. Often, they're just…
I received a good question from J last week: As you know, I’ve recently switched to using Stop Limit orders for entries after experiencing a lot of slippage last month…
A quick lesson on trendlines and what they can tell us about market dynamics. Take a look at a fairly long-term chart of the Dow Jones Industrial Average (below) with…
I've shared these screens for a while, and they will eventually be part of the new MarketLife project. Until we're live there, I'll keep sharing them here. Here is a…
https://youtu.be/jD4L12m5xXA
I’ve looked deeply into ratios, levels, and their application to market data. I won’t rehash all of that work here, but, after literally years of research, the bottom line is…
We have limited time and attention. This is one of the realities that developing traders soon face—no matter how hard you work or how well-intentioned you are, there’s a limit…
One of the keys to discretionary trading success is knowing when not to trade. Here's a simple chart pattern that can help filter out some of the good times from…