Price curves consist of much noise and little signal. For separating the latter from the former, John Ehlers proposed in the Stocks&Commodities May 2021 issue an unusual approach: Treat the price curve like a radio wave. Apply AM and FM demodulating technology for separating trade signals from the underlying noise. Continue reading “The Price Wave Radio”
Category: Petra on Programming
Detecting Volume Breakouts
It is estimated that about 6000 different technical indicators have been meanwhile published, but few of them are based on volume. In his article in Stocks & Commodities April 2021, Markos Katsanos proposed a new indicator for detecting high-volume breakouts. And he tested it with a trading system that I believe is the most complex one ever posted on this blog.
The Trend Persistence Indicator
Financial markets are not stationary: Price curves swing all the time between trending, mean reverting, or entirely random behavior. Without a filter for detecting trend regime, any trend following strategy will bite the dust sooner or later. In Stocks & Commodities February 2021, Richard Poster proposed a trend persistence indicator for avoiding unprofitable market periods.