Support / Resistance
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 all timeframes, and before the open of the bar. Even more important, the concepts in this blog can be applied
Support / Resistance
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 that has no basis in fact. Yes, despite all the reasons we should be suspicious, this is one of the
Intraday Trading
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…”, but this doesn’t really tell us what we need to know. It would (obviously) be better if this information
Quantitative analysis
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. (And I promise two things: this won't be a boring blog and if you trade actively, it will
Intraday Trading
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 which we showed a bunch (1,535) of traders 20 panels of charts. Each panel included two charts which were
Quantitative analysis
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 wrong here. Let me start with the conclusions up front, and then I’ll explain what we did and
Support / Resistance
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. Of course, this makes everything sound a bit more predictable than it actually is: trends can seemingly go on forever,
Support / Resistance
Support / Resistance
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. For the past several weeks, swing trading in currencies has been difficult. We've seen many setups trigger, but
Support / Resistance
Support / Resistance
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