Gaps are a popular pattern for market technicians to analyze and from which to profit. The reason is that gaps are easy to identify, and the specific characteristics of a gap are easy to quantify. This means we can apply statistical analysis on the various aspects of a gap to [...]

A Window of Opportunity Definition: the difference in price between a security’s opening price and it’s prior day closing price. This difference shows up visually on a candlestick chart as a space between candles. When we do Gap talk, it’s a special language, so we need to be clear on […] Read more

See other posts in this series… [catlist id=2 numberposts=3 pagination=yes] PinPoint Strategy – What a Difference a Day Makes Most people developing trading strategies are stuck in the notion that a strategy should work all the time, that is if the strategy is valid, then it should work. Right? Ummm, […] Read more

See other posts in this series… [catlist id=2 numberposts=3 pagination=yes] Evaluating Systems – Commission and Slippage This is going to be a relatively short post, for two reasons; 1) it’s super important and 2) it’s a super simple concept. People who don’t declare slippage and commission in their strategies are […] Read more

See other posts in this series… [catlist id=2 numberposts=3 pagination=yes] NOTE: This is THE most important step in the entire development process! I’m not kidding. And it’s the lengthiest, and for some, the most boring. That’s because it is like a factory assembly line, you’re going to do repetitive tasks, […] Read more

See other posts in this series… [catlist id=2 numberposts=3 pagination=yes] ABSTRACT When most people embark on a journey, they get a map, they consult an expert, or at least someone that’s been there before, and developed some reasonable outlook. The problem with trading, is that most people think it’s about […] Read more

See other posts in this series… [catlist id=2 numberposts=3 pagination=yes] Abstract: This email sets the stage for all your future development and testing of trading systems. You are going to learn what makes a trading system work in the face of head winds like volatility. In fact, you are going […] Read more

See other posts in this series… [catlist id=2 numberposts=3 pagination=yes] A trading system is comprised of one or more trading strategies, where a strategy is composed of a group of specific rules, and configurations, that reveal entry and exit points for a security. These points, known as trade signals, are often marked […] Read more