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Technical Analysis

September 22, 2020 By Joe Marwood 3 Comments

Should You Buy Oversold Stocks? (Waterfall Pattern)

In order to make a profit in stocks you need to sell at a higher price than you purchased.  Because of this, many traders look for stocks that have dropped to extremely oversold levels in the hope that they will bounce back from their low levels.  One such pattern traders look for is known as […]

Filed Under: Stocks, Strategies/ Systems, Technical Analysis Tagged With: stocks, trading systems

September 16, 2020 By Joe Marwood 12 Comments

Which Trailing Stop Is The Best?

Trailing stops are a simple way to exit a trade. The idea is you buy a stock and then trail your stop loss a little way below it as the trade goes on. This way you can let the trend continue in your favor but lock in your profits once the stock turns round. The […]

Filed Under: Stocks, Strategies/ Systems, Technical Analysis, Top Posts Tagged With: stocks, strategies

August 17, 2020 By Joe Marwood 12 Comments

Technical Analysis For Stocks Essential Guide

technical analysis for stocks

Technical analysis is a method used to predict financial markets that relies on analyzing price charts and patterns. This is contrary to fundamental analysis which relies on economic and business information like interest rates or earnings. Technical analysis is a highly debated subject because academics say that markets are too efficient to be predicted by […]

Filed Under: How to, Stocks, Technical Analysis, Top Posts Tagged With: stocks, technical analysis

July 22, 2020 By Joe Marwood 11 Comments

Should You Buy 52-Week Highs Or 52-Week Lows?

Whatever your investing style it’s useful to have a way to whittle down the thousands of available stocks to a more manageable number.  Over the years, I’ve listened to many investors explain how they do it. Often, the first step is to look at the Wall Street Journal for stocks making new 52-week highs or […]

Filed Under: Amibroker, Strategies/ Systems, Technical Analysis Tagged With: stocks, trading systems

September 24, 2019 By Joe Marwood 8 Comments

Testing A Reader’s RSI Trading Strategy

A reader asked if I could backtest a trading strategy based on the RSI(2) technical indicator. Most RSI strategies trade mean reversion setups, however, this is actually a trend following strategy. The idea is to follow trends and use an RSI(2) pullback to get a better price entry. We wait for the RSI(2) to turn back […]

Filed Under: Amibroker, Strategies/ Systems, Technical Analysis Tagged With: amibroker rsi stocks

February 13, 2019 By Joe Marwood 7 Comments

Double Top Pattern – Backtest Rules & Results

Double top pattern with adjustable parameters

The double top pattern is a chart formation consisting of two consecutive price peaks that leads to a bearish reversal. For years, traders have claimed that the double top is a high probability short setup. This is because a double top pattern signifies that bulls are having trouble pushing the price past the prior high. […]

Filed Under: Amibroker, Stocks, Strategies/ Systems, Technical Analysis, Top Posts Tagged With: stocks, technical analysis

December 12, 2018 By Joe Marwood 12 Comments

Testing 3 Simple Divergence Trading Strategies

RSI trade divergence example

A reader asked about trading divergence so I thought I would look into it. Searching the web I found many articles that claim divergence trading is an effective way to trade stocks. However, there is very little empirical evidence provided. In this article we test several different divergence strategies and we compare our results to […]

Filed Under: Stocks, Strategies/ Systems, Technical Analysis, Top Posts Tagged With: amibroker, trading systems

September 21, 2018 By Joe Marwood 6 Comments

Market Meanness Index For Amibroker

MMI indicator on Apple stock

The Market Meanness Index is a technical indicator developed by JCL from the Financial Hacker website. In this article we will describe what the indicator is designed to do and provide some code for Amibroker users. MMI is a statistical algorithm based on the median value of a price series. It’s purpose is to help […]

Filed Under: Amibroker, Strategies/ Systems, Technical Analysis Tagged With: amibroker, trading systems, Trend Following

July 30, 2018 By Joe Marwood 1 Comment

Using This Sector Filter Improves Net Profit By 50%

best trading books

Old school trading wisdom says you should not only buy the strongest stocks but the strongest stocks in the strongest sectors. In this article, I discuss a simple breakout system. Then I introduce a basic sector filter which improves our net profit by around 50%. Full Amibroker code is also provided.

Filed Under: Amibroker, Stocks, Strategies/ Systems, Technical Analysis Tagged With: amibroker, trading systems

May 10, 2018 By Joe Marwood 1 Comment

Testing The Bullish Hikkake Pattern On US Stocks

Example Hikkake pattern in CBS

The Hikkake pattern is a simple price action or candlestick pattern that is used to find market turning points. The pattern is essentially an inside day with a fake breakout and is originally credited to Daniel Chesler CMT.

Filed Under: Amibroker, Strategies/ Systems, Technical Analysis Tagged With: amibroker, candlesticks, stocks

October 9, 2017 By Joe Marwood Leave a Comment

Should You Trade The Money Flow And Pinbar Strategy?

money flow index strategy with pin bar equity curve

The Money Flow Index indicator (MFI) is an oscillator that uses price and volume to measure momentum. It’s also known as a volume-weighted RSI and can be used in a similar way. In this article I will be testing a strategy that I found on a popular trading website.

Filed Under: Amibroker, Stocks, Strategies/ Systems, Technical Analysis Tagged With: stocks, trading systems

September 29, 2017 By Joe Marwood Leave a Comment

10 Best Swing Trading Books For All Levels

best swing trading books for all levels

Swing trading is a good option for investors who may not have the temperament or time to engage in day trading. Having success in this field requires you to take the time to learn about the various trading strategies and processes for short-term trading. Fortunately, many successful investors that have come before you have made […]

Filed Under: Books, Lists, Technical Analysis Tagged With: books, lists

August 28, 2017 By Joe Marwood Leave a Comment

Should You Trade Gaps In Forex?

gap strategies for forex, gold and stocks

The focus of this article is a new study by Caporale and Plastun. They suggest that there’s an edge to be had in forex markets by trading gaps. However, they could not find an edge in other assets. Following are some of the findings from the research paper and then some concerns we have about […]

Filed Under: Forex, Strategies/ Systems, Technical Analysis Tagged With: forex, gaps, strategies

August 24, 2017 By Joe Marwood 1 Comment

How To Find The Best Candlestick Patterns With Amibroker

Equity curve for dynamic candlestick pattern selection system

Japanese candlestick patterns are useful because they allow traders to quickly visualise price action in the market. There are many different patterns and many different opinions on their effectiveness. In this article we will look at a trading system that attempts to dynamically select the best performing candlestick pattern from the previous six months and […]

Filed Under: Amibroker, Strategies/ Systems, Technical Analysis Tagged With: amibroker, candlesticks

August 19, 2017 By Joe Marwood 6 Comments

Does Technical Analysis Work? Evidence From The Social Sciences

does technical analysis work? one in 5 hedge funds use it

Debate has raged for years as to whether or not technical analysis is actually a useful tool in helping to generate long run profits in the markets. For some, technical analysis is no more than hocus pocus. An approach that is based on faith rather than legitimate science. For others, technical analysis is the foundation of […]

Filed Under: Lists, Technical Analysis, Top Posts Tagged With: opinion, technical analysis

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About The Author

Joe Marwood is an independent trader and investor specialising in financial market analysis and trading systems. He worked as a professional futures trader for a trading firm in London and has a passion for building mechanical trading strategies. He has been in the market since 2008 and working with Amibroker since 2011.

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