Assessing Market Action With Indicators And History
Friday, February 5, 2010
Extremely Negative Breadth Days In A Long-Term Uptrend
I looked at yesterday’s selloff a number of different ways last night. The overriding theme suggested this selloff is already getting overdone. Below is one example of a study I ran.
Instances are low, but with 100% winners on days 2, 7, 8, and 9 as well as very strong average trade results over the period I felt it was worth considering.
In this blog I will be examining market action and quantifying my findings. Using sentiment, breadth, price and volume indicators - both standard and customized - I will try and uncover short-term edges which could be taken advantage of by market participants. I will frequently add opinion to these studies and may sometimes post opinions without quantifiable research behind them.
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I have traded professionally since 2001. From January 2003 through February 2007 my bi-weekly column "Rob Hanna's Putting It All Together" appeared on TradingMarkets.com. I have been conducting quantitative research and designing trading systems - mostly focused on short-term edges since 2004.
2 comments:
Hi Rob,
Have you tried up vol < 10% to get a larger sample? (I'd do it myself but I don't have the best data.)
Thanks!
Was this a 90% downside day? If so, another one soon has bearish implications and a market top>
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