Category Archives: Indicators

Stock Indicators in Python

I have been fooling around with Python as a possible tool for technical analysis.  I coded a few of my favorite indicators.  The GitHub link is here. Bollinger Bands Keltner Channels RSI MACD ATR ADX Stochastics I don’t think I … Continue reading

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Homebrew Correlation Indicator

The CBOE index of implied correlation made the news recently, with a high of 72.  This index, JCJ, is not as well-known as the one for implied volatility, but the two are linked. Low correlation suppresses volatility, due to the … Continue reading

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190 Weeks without a Correction

It seems like pullbacks have been really small lately, so I whipped up a new indicator called Percent off Peak, and took a look at the history of corrections. The indicator simply ratchets itself up as new peaks form, and … Continue reading

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QE Bulls Are Back

If you follow the market every day, as I do, you can observe two distinct groups of bullish investors.  This is hard to depict on a chart, but I am going to try.  One group responds normally to economic news, … Continue reading

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Levy Dispersion Update

I watch $OEXA200R on Stockcharts, which says that 74 of the S&P 100 are trading above their respective 200 day moving averages.  It is generally considered a bad idea to go long when this figure is below 65, or in … Continue reading

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Short SPX for 2014

The purpose of this post is to explain why and how I shorted the S&P 500 on Jan. 6.  In an earlier post, I described the two methods I use for detecting “tops” or, more precisely, local maxima.  I also … Continue reading

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Thoughts on Correlation

Mean reversion is aided by volatility, and momentum trading is aided by relative strength.  I have been exploring the distribution of relative strength.  Market strength and breadth are handily characterized by the mean and standard deviation of this distribution.  It … Continue reading

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Levy Ratio Dispersion

I have been experimenting with Levy ratio dispersion as a measure of market breadth.  Saturday, I posted this chart on Stock Twits, showing lower lows, lower highs, and declining RSI for $OEXA200R. The chart shows that 87 of the S&P … Continue reading

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Thoughts About Volatility

Back in September, I was testing the Connors RSI pullback strategy, and I posted an observation that the strategy performs best in a volatile market.  Volatility gives you the setups, and mean reversion gives you the profits.  If the market … Continue reading

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The Dot Com Bubble of 2000

Many bloggers are seeing a bubble right now, so I dusted off my analysis of the dot com bubble.  Bubbles are different from normal tops.  They rise sharply, and then pop.  From roughly 5000 down to 3000, the NASDAQ composite … Continue reading

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