Yesterday, I conducted the third installment of the Hudson Sessions—an interactive series of live talks drawn from my first book, The Art & Science of Technical Analysis. Saturday’s session put trends under the microscope, diving into their intricacies with real focus and depth. You can revisit the session through the playback or peruse the slide deck at your convenience.
Here are some highlights from the session:
- I began the session with some thoughts from Josh Waitzkin’s excellent book, The Art of Learning. In that book, Josh talks about “form to leave form”, which means studying a subject deeply with the goal of assimilating information on a deep and unconscious level. This is what we’re trying to do with trading and trading education.
- A significant portion of the session was dedicated to deconstructing trends, leading us to some intriguing and challenging conclusions. I encouraged attendees to reassess their fundamental understanding of trends, questioning whether they should even anchor their strategies on this concept. We examined trends from various perspectives and embarked on an exhaustive walkthrough of the S&P 500 over the past five years, pinpointing the inflection points in every trend on the daily timeframe.
- In addition, we delved into volatility in relation to specific patterns and overall market movements. This seamlessly tied in with the discussion on market time, which, in my firm belief, aligns more closely with the Greek concept of kairos rather than chronos.
- We spent roughly an hour scrutinizing the actual edge (or rather, the lack thereof) in trend indicators. If you’re utilizing a tool to define trend, chances are you’re positioning yourself unfavorably in the market. We also allocated some time to consider the hurdles that come with investigating market ideas and how to apply fundamentally simple statistics rigorously.
- We wrapped up the session with a visual compendium of patterns and a call to action for you to engage in this work independently. After all, the ultimate aim is to allow the market to be your teacher, mentor, and guide.
Make sure to register for the upcoming session, where we will explore trading ranges and delve into the intricate price dynamics surrounding support and resistance.
