Generally I don’t watch commodities, but since I got a $900 natural gas bill (my whole house uses gas – gas water heater and gas heat) a couple of years ago – I am more prone to take notice as to the price level of natural gas.  I think it is hovering in the $6-7 [...]

Since there was some new interest in shorter correlation time periods, I finally got around to adding 10 day correlation data for all the stocks. A friendly reader – Jon – had asked about looking at multiple periods:
Time frames of, say, 365 days, and 250 days, are useful but more importantly perhaps, the shorter [...]

I made a big mistake. I was under the impression that Head and Shoulders was a “bearish” pattern, when in fact it may depend on the preceeding trend. Jon, from the Fickle Trader pointed this misunderstand (okay – let’s be honest – my ignorance):
If there is no preceding trend, then why should we [...]

Remember, this blog is like a whiteboard – we are kind of brainstorming here…
I am beginning to play around with quantifying the predictability of patterns, such as the head and shoulders pattern. There is a lot of analysis, running of data and thinking that needs to be done, but I wanted to talk a [...]

Previously, I discussed the importance of feedback in understanding and learning and that is one nice aspect of blogs – getting feedback from readers. Michael wrote a nice entry about the last article over at Taylor Tree, a blog that discusses “the mechanics of system trading such as money management, position sizing, etc.” – [...]

It has been pointed out that in the article Oversimplified Method for Finding Patterns in Stock Charts the actual method used was not described in detail. The process is pretty simple – you might even say oversimplified. It was just an error of omission, not an attempt to hide any proprietary methods. [...]

Last week we put together a really simple way to identify Head and Shoulders patterns in stock charts and we have a daily list of stocks with potential Head and Shoulders – BUT, these are experimental of course. This where the human interacts with the technology. We have an algorithm that searchs for [...]