Dancing with the Trend

Candlestick Analysis - Filtering

by Greg Morris

Candle pattern filtering offers a method of trading with candlesticks that is complemented by other popular technical tools for analysis.  Filtering is a concept that has been used in many other forms of technical analysis and is now a proven method with candle patterns. Since any one indicator on its own can have inherent flaws, the synergy created by combining different methods of price movement analysis can result in some very powerful combinations.  When candle patterns are combined with other indicators, the results are superb. The filtering Read More 

Dancing with the Trend

Know Thyself II

by Greg Morris

The first article on Know Thyself generated a lot of interest, so here is the second one.  Welcome to being human!  Do you really know that person you see while shaving or applying makeup?  If you are going to be a successful investor/trader, you better get to know him/her and know them really well – like the back of your hand.  As a human being, you were born with some unusual traits that most of us cannot override or rid ourselves of, such as keeping your eyes open when you sneeze or blinking periodically.  While these have nothing to do with the market, they do Read More 

Dancing with the Trend

Candlestick Analysis - Statistics III

by Greg Morris

Additional information in regard to the determination of the suitability of candle patterns is to look at the Net Profit divided by the Net Loss per Trade.  This would be a measure of the overall profitability of candle patterns based upon the prediction interval.  Table A shows this data with the positive data emboldened. Trades that do not produce either a profit or loss are included in the Net Profit/Loss per Trade (Table A) calculation.  The Net Profit/Loss per Trade value is simply the average percent gain (or loss) for all trades. Because the Net Profit/Loss per Trade Read More 

Dancing with the Trend

Article Summaries 12-2015 to 3-2016

by Greg Morris

Most blog authors on StockCharts.com are writing about the current markets and do an exceptional job.   I do not write about the current markets as I wanted to share my experiences after 40+ years as a technical analyst.  Not only experiences with trading and investing, but model building and money management.  I also share the details of all the Master’s degrees I have – those expensive learning experiences that hopefully I learned something from.  Since I rarely go back into the archives of other’s blogs that I read, I wondered if that is common or not.  Read More