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Tag: backtest

Blue Raindrops: Potentially Effective for Identifying Support/Resistance & Reversals Levels

On Raindrop Charts, the color of a Raindrop depends on the relative position of the Left and Right mean (VWAP) prices to each other. The logic is similar to Japanese Candlesticks or Bars: It’s red if Right is less than Left, and green if Right is greater than Left.

Unlike other charts, there is a particular special case worth noting in Raindrop Charts when the VWAP price of each side of the Raindrop happen to be equal (or approximately equal; see more below).

We call this type of Raindrop a Blue Doji Raindrop:

Blue raindrop.

As I mentioned, we believe this Raindrop is very special.

Sunday Update Week of February 4th – A look at the Monthly Overlays

A prepared trader is a generally a profitable trader, and Sunday is a great day to get ready for the week ahead by studying up from last week’s price action.  In this weekend’s analysis, we take a look at a brand new feature that was released earlier this week, Monthly candles. For SPY, QQQ, and XBI, we take a look to see how the weekly price action is interacting with the monthly indicators and trendlines. 

Sunday Update Week of January 21st – The Markets Hit The Weekly SMA (20) “Wall”

A prepared trader is a generally a profitable trader, and Sunday is a great day to get ready for the week ahead by studying up from last week’s price action.  In this weekend’s analysis, we take a look at the broad markets after continued moves to the upside, with SPY, QQQ, and XBI all closing at or near the longer-term 20-week simple moving average resistance. As the market has not been phased by the government shutdown, the weekly SMA (20) is the only “wall” the market needs to pay attention to.

Sunday Update Week of January 14th – January 2016 Deja Vu?

A prepared trader is a generally a profitable trader, and Sunday is a great day to get ready for the week ahead by studying up from last week’s price action.  In this weekend’s analysis, we take a look at the broad markets continued strong move up this week and compare the recent lower indicator action with the early 2016 moves which aren’t exactly the same but are showing many similarities.