Conventional wisdom suggests that a reverse stock split is generally bad for a company’s stock. That’s because reverse splits are usually undertaken when a stock is in danger of being delisted.
But is there any actual evidence that reverse stock splits lead to bad investment returns? And if there is, might you be able to make money from shorting reverse split stocks? Read more »
Recently I have been re-reading the book Quantitative Technical Analysis by Dr. Howard Bandy. This is a hefty book filled with quality information and important ideas on the topic of system development. Read more »
There are more ways than one to exit a trade in Amibroker. It may sound obvious but trading strategies can benefit from being creative with exits as well as entries.
In this post, I look at a simple way to come up with more flexible sell signals. Read more »
Several months ago I was thinking about candlestick charts and whether or not these classic patterns had any predictive ability for trading. I had a look around but all I could find were vague speculations and cliches. I couldn’t find any solid evidence of whether they actually worked or not.
So… I thought I would casually test out a few candlestick price patterns and see if any of them actually worked.
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Download the rules to a trading system that makes 170% a year in stocks.
Regular readers of this blog will be aware that I like to create trading systems using Amibroker; a program which allows you to test various investment strategies on historical stock data. Read more »
In a recent article we looked at the shooting star candlestick pattern and we found that it wasn’t a particularly successful signal for spotting reversals. In this article we will look at another bearish reversal signal in the form of the gravestone doji candlestick pattern. Read more »
Last Friday the S&P 500 formed a shooting star candlestick pattern on the daily chart. This is a Japanese candlestick formation that is normally a bearish reversal signal. Sure enough, the S&P 500 moved lower the next day, dropping around 15 points. We saw this happen last September too. But how often does this bearish pattern really play out? Read more »
One of the most powerful functions in Amibroker is the ability to easily program rotational trading strategies. In this article I present 8 ideas that may inspire you to create a new rotational trading system.
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In this article I look at a popular method for trading stocks and futures which utilises the RSI 2 indicator. This is a mean reversion technique for finding overbought and oversold securities. Read more »
The MACD indicator was developed in the 1970s by Gerald Appel. It’s been an extremely popular momentum indicator for many traders and is still used today. In this article, I look at what the MACD indicator does and how effective it is on stocks. Read more »