The Stochastic Indicator
Background and Overview There are hundreds of indicators that are common to anyone familiar with technical analysis. Historically, these indicators have been us...
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Understanding Correlation
Correlation is often a misunderstood descriptive statistic in markets. A common mistake is accepting the average correlation without considering the variation a...
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Rolling Returns
The most common method to calculate a strategy’s performance is the calendar-year return. This method strictly views performance from January 1, through Decembe...
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Understanding Breadth Divergence
History and Context According to market analyst Tom McClellan, the advance/decline line has been in use since 1926. A few decades later in the early 1960s, brea...
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Volume Thrust
The concept of volume thrusts is as old as technical analysis itself. The logic is straightforward: When there is a sudden inflow of buyers entering the market,...
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Penta System
Intermarket analysis is an approach in technical trading that examines relationships between different asset classes or financial markets to generate trading si...
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Zweig Bond Model
Dr. Martin (Marty) Zweig was the author of Winning on Wall Street, a book widely known by traders. He also produced a newsletter titled “The Zweig Forecast” for...
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