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.
Technical analysis refers to the study of past price action to predict future market moves. It makes use of charts, trading volume, and other statistical or mathematical indicators to gauge how the market might behave, based on the concept that the fundamentals of an asset are reflected in its historical price action.
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 […]
In this article I look at some of my favourite intraday trading patterns including naked price action patterns and Japanese Candlestick patterns.
In this post I test nine different moving averages in order to see which is the best moving average for trading. Two different strategies and markets are tested. The results may surprise you.
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.
In this article I look at some moving average crossover strategies and I investigate which moving average crossover lengths are the most effective.
In this article I explain the RSI technical analysis indicator. I then test the indicator on historical stock market data in order to analyse its effectiveness.
Trading systems fail all the time I’d spent hours, days, weeks, months. Testing, optimising, fine-tuning. I’d read books, journals, blogs, studied the market, stared at quote screens and charts till my eyes were red and I could see them repeating in my sleep. I ate, slept and breathed the markets. I hated the weekends. Whenever Saturday […]