Assessing Market Action With Indicators And History
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.
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, G
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.
All content on this site is provided for informational purposes only. It is NOT a recommendation or advice to buy or sell any securities. I may hold positions for myself or clients in the securities or industries mentioned here. There is a very high degree of risk involved in trading securities. Your use of any information on this site is entirely at your own risk.
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.
3 comments:
Great site, love your analysis.
By "lowest range", what do you mean?
Hi Brady,
Smallest intraday range (high of day - low of day) for SPY.
Best,
Rob
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,
G
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