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Supertrend: Does It Work?

“Supertrend” sounds a bit silly; the indicator has a fairy-tale name to it. Now that that’s out of the way! I must admit the indicator looks good, optically. It’s performance is left to question, but when scrutinizing a chart with the indicator...

Curve Fitting (OVER-Optimization)

Curve Fitting Curve fitting involves over-optimizing a strategy to produce the intended result, the result being a good backtest. In the case of over-optimization, it means refining and testing a strategy until good results are achieved, but the strategy was...

Triple Exponential Moving Average (TEMA)

The Triple Exponential Moving Average (TEMA) was designed to reduce the lag accompanying traditional Exponential Moving Averages (EMA). To make sense of how the indicator works let’s take a peek at the formula. EMA1 = EMA of price EMA2 = EMA of EMA1 EMA3 = EMA...

Does MACD Work?

The MACD acronym stands for Moving Average Convergence Divergence. Gerald Appel created MACD in the 1970s. It is technically an oscillator; however, the indicator is multifaceted. This is because the MACD indicator incorporates a histogram, two exponential moving...

Pinescript

Pinescript is TradingViews’ proprietary programming language. I know what you’re thinking, “Programming? Never done it and I don’t think it’s for me!” Hold on! Pinescript might be the simplest programming language to learn. Why?...

Using $VIX To Improve A Trading Strategy

The CBOE Volatility Index ($VIX) is an index that represents expected volatility forward 30 days for the S&P500. The index is informally characterized as the “fear gauge”; the $VIX can be considered a proxy for market sentiment. Generally, heightened...
Why Technical Analysis Works

Why Technical Analysis Works

Why Technical Analysis Works. Technical analysis is a financial market analysis methodology that looks to systematically exploit replicable sequences, correlations and anomalies in large data sets. Historical price fluctuations are evaluated to find replicable...

Put/Call Ratio

The put/call ratio measures the total volume of puts traded for the session relative to the total volume of calls traded for the session. Single leg option calls, known as a “long call”, are opened to hedge market advances or capture speculative gains from...