A large parabolic movement which follows an event such as earnings announcement, Economic reports etc.called ” Event spike “. This move is all about feeding frenzy or herd behavior of market participants are influenced by price moment itself! Some people even refer to this as price reflexive.
If you are a regular reader of my articles, then you know “I hate technical indicators”. They are a derivative of price action, nothing more than a mathematical complex paralysis. My clients frequently question me-“Hey do you use any indicator”? Most probably my reply will be no-because majority of you guys know, I am a pure Price action trader!
Global economic and geopolitical events lined up in a different way this time ever since 1982 commodity glut. The best way to approach this year is being a skeptical contrarian Investor and I hope this article will shed some light into most important and less known method
Dow Theory is one of the most important trend following theories ever. As market evolved, the concepts of Technical analysis became more elaborated and complex, most essential foundation was forgotten in the Market literature.Even with much complexity nothing beats the Dow Theory on odds and logic. It’s around for over 100 years and still important as it is, even today
One of my favorite trader,Paul Tudor Jones once said “I believe the best Money is at the market turns, Everyone says you get killed trying to pick tops and bottoms – Well for 12 years ,I have missed the meat (Trend)in the middle but, I have made lot of money at tops and bottoms”.
Price action is a study of technical analysis that can bring quite a bit of benefit to the trader. By focusing on price and price alone, investigating previous movements and how markets have reacted – traders can look to get the cleanest technical picture of a given market that might be available.
Backtesting and Optimization to be pretty much essential step in trading strategy development. If the strategy is not performing well in the backtest results we can skip the system and move on to the next one. But if the backtest results are good then one should be extra cautious as most of the times backtesting your own Trading Strategy might give interesting results. However when comes to practical trading the scenario might be completely different and most of the times it results in a poor performance or lower than the expected backtest results.
Yet another ATR Volatility based Long only Trading System. ATR Volatility system a mechanical strategy for higher time-frames Written by Tudor Marcelin – Art Invest. Just modified the actual trading system to support trailing stoploss based rather than channel based trading system and added back testing functionality.
Effective use of Volume At Price for Intraday Trading, Volume Analysis, High Volume Zone, Low Volume Zone, Peaks and Valleys in Volume.
Didi Index is a positional long only trading system constructed based on three exponential moving averages inspired from mql4 code Didi Index Indicator. Indicator developed by Brazilian and analyst Odir Aguiar (Didi), consists of “Moving Averages”, known for the famous needles Didi, which allows the visualization of reversal points.
Here is a simple mean reversion system adapted from IBS reversion edge with QuantShare. And our IBS mean reversion strategy is a slight variation of the Internal Bar Strength by taking a three day moving average to IBS (maIBS) and looking for IBS crossovers to derive the trading conditions.
Provide your feedback what kind of action or strategy you adopt on avoiding whipsaws, getting profits. And what are the problem you are facing with automated/manual strategies.