Investors have a fascination for buying low & selling high… Even though the results are overwhelmingly in favor of buying high & selling higher… I have repeatedly shown that buying low and selling high is a...
Category - Mean Reversion
One of the most versatile & robust indicators is the RSI or Relative Strength Index Indicator. RSI Indicator was developed by J Welles Wilder in the late 70s and published in his book, New Concepts in Technical...
VIX VIX or the Volatility Index was started by CBOE or the Chicago Board of Trade in 1993. It was originally designed to measure the market’s expectation of the implied or expected volatility over the next 30 days on...
I often quote Van Tharp while talking to clients and traders. He says “If you don’t have rules to trade, everything you do is a mistake.” I would like to further add to above quote “If you have rules to trade without an...
There are plenty of trading systems available on the internet and there are many trading systems providers. But how do you know which ones are going to be potentially profitable? Well, it’s a tough task but I have outlined...
We have covered a lot of ground in this 6 part series, “Applying Mean Reversion Strategies in India”. You can check out other parts by clicking following links; Part 1: Applying Mean Reversion Strategies in...
This is part 5 of the study, “Applying Mean Reversion strategies in India”. Larry Connors in his book, “Short Term Trading Strategies that Work”, shocked the hell out of the trading world when he declared...
This is part 4 of the study, “Applying Mean Reversion strategies in India”. In this post we will look at the importance of 200 DMA. You would want to check out Part 1 , Part 2 and Part 3 of the study if you...
This is part 3 of the study, “Applying Mean Reversion strategies in India”. In this part, we will check out another interesting concept of Cumulative RSI introduced by Larry Connors in his book, ” Short Term...
This is Part 2 of the study, “Applying Mean Reversion strategies work on Indian Markets?” In this article, we will try and test the RSI2 indicator popularised by Larry Connors & tradingmarkets.com. He goes on to...