Failure Test
Current Technical Situation: S&P 500
A failure test that justifies flipping a long position to a short position.
Technical Patterns
Individual Traders
Volatility Compression
[dc]I[/dc] will write more about this in the future, but I want to introduce you to an important concept called volatility compression. From a theoretical perspective, markets tend to operate in one of two modes: in mean reversion mode extremes are quickly reversed. Traders buy dips and sell
General Comments
Anatomy of a Trade: Nested Pullback in ANR
[dc]I[/dc] want to share with today an example of an actual trade I made in September. Two points before we begin: this is, perhaps, a slightly complex example. If you are unfamiliar with the patterns of trading pullbacks, come back to this post in a few weeks when
Failure Test
Domestic Stock Index Analysis (10/6/11)
A look at the technical position of the S&P Index 10/6/11. Illustrates use of simple technical patterns and relationships to derive an edge.
Failure Test
Market Pattern: The Failure Test
There is a theory of market behavior that essentially says that markets exist to create trading activity and volume; whether this is precisely true, or whether it completely explains all market activity, is not important. The concept is valid: markets move to levels where orders are clustered. Markets run stops.