Dancing with the Trend

February 2018

Dancing with the Trend

Building a Rules-Based Trend Following Model - 5

by Greg Morris

The significant components of my Weight of the Evidence are Price Measures and Breadth Measures.  All of my Price Measures use the Nasdaq Composite Index which I have written about many times.  If using the same price, then the difference between most price indicators is to offer varying time periods; short, medium, and long.  Breadth on the other hand, can offer many different indicators of trend.  Price is just price; but breadth is advances, declines, advancing volume, declining volume, new highs, and new lows.   Those are what I call internal market Read More 

Dancing with the Trend

Thoughts on the Current Market

by Greg Morris

I rarely, if ever, discuss the current market or offer any market analysis.  StockCharts.com has many expert technical analysts that already do a bang up job on this.  However, since I am writing a series on Building a Rules-Based Trend Following Model, I thought I would tell you how the model has worked over the past week or so.  At this point in the series I cannot detail everything that you will see in these charts for this article.  I will keep it fairly simple as we will dive into more detail as the series evolves.  As I cover Chart A and Chart B below Read More 

Dancing with the Trend

Building a Rules-Based Trend Following Model - 4

by Greg Morris

We have covered most of the preliminary issues such as digital measures and compound measures.  This article will discuss the concept of Weight of the Evidence.  I have been fond of a weight of the evidence approach for over 30 years.  The concept of “weight of the evidence” came from Stan Weinstein who published the newsletter, “The Professional Tape Reader,” and author of “Secrets for Profiting in Bull and Bear Markets.”  Back in the early 1980s, most analysis was done manually.  We did not have computers, internet, or email.  Our data came from Read More