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In his day, Einstein made a revolutionary breakthrough in physics with his theory of relativity. It presented a new way of thinking, answering many questions the Newtonian Physics couldn’t.
Late last year I picked up an old copy of a book by Michael Gur called The Symmetry Wave Trading Method. Gur introduced the concept of using a series of swings based on ATRs. This was one of those “ah-ha” moments.
I’ve worked in the markets for nearly twenty years alongside the evolution of algorithmic trading. I witnessed the Darwinian paradigm shift it brought as those who didn’t evolve were picked off.
In the last blog, we measured bearish sentiment with the Short Interest Ratio. Another way this can be done is by using volatility indexes.
I read a great phrase this week – “Technical analysis is for-profit social psychology”. It’s certainly true that the underpinnings of the best technical indicators is investor psychology.
Last week, we delved into a longer-term moving average crossover signal on the S&P 500 that was brought to my attention. Here’s that ominous looking chart again below. At first glance it says, ”I smell a Bear!” — and no one wants to get mauled like the last two bear markets.
Is the recent 50 and 100 week moving average crossover in the S&P500 index as bad as it seems? In this article Carson takes a look at 21 occasions this has previously occurred, with some interesting results.
Market breadth is an area of technical analysis concerned with gauging the market’s health. This is done by tracking the balance between buying and selling pressure. It’s like tracking who’s winning a game of tug of war…