Monday, September 13, 2010

Very Low Volume & Range Often Make For A Bearish Combination

In general very low volume and range when the market is not above its 200ma will lead to a pullback. I showed several studies along these lines in the subscriber letter this weekend. One with both short and intermediate-term implications is below.

Stats across the board including Win %, Win:Loss Ratio, Profit Factor, and Average Trade all favor the bears. This is the case not just for a few days but even for a few weeks.


Brady said...

Great site, love your analysis.

By "lowest range", what do you mean?

Rob Hanna said...

Hi Brady,

Smallest intraday range (high of day - low of day) for SPY.


gerard said...

I found out about your site through Jeff Watson
masteroftheuniverse a few years ago, awesome work
keep it up. Question, today the s&p did close above
it's 200ma, what does your study suggest now?
Thank you,