Archives: strategy

Candlesticks – Free Training Video

January 30, 2010 | By JackieAnnPatterson | No Comments | Filed in: Classes, Technical Strategies.

My charts are plotted as candlesticks because they highlight detailed movements around the open and close.   Candlesticks also present recurring patterns which aim to portend the price action and which I haven’t (yet) backtested.    However, since candlesticks are on the charts in my BackTesting Reports, videos, and software, I want to give everyone an opportunity to how they are interpreted by • Read More »

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Jack Schwager Market Wizards Lecture

December 8, 2009 | By JackieAnnPatterson | No Comments | Filed in: Classes, Outside Products Reviewed.

 I just watched a video lecture by Jack Swager, author of trading classics Market Wizards and The New Market Wizards.   If you haven’t heard of them, in each book Schwager interviews top traders and picks their brains about trading, the markets, and what made them successful. The reasons these works are revered as classics is not because he gets • Read More »

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Negative Divergences Abound

November 30, 2009 | By jackieannpatterson | No Comments | Filed in: Exit Strategies.

Since its not always easier keeping up with the market over a long holiday weekend, I thought to share my weekly “homework”. Plenty of interesting red flags from my MACD Divergence Detector running on StockFinder®.   It found MACD and MACDH negative divergences on SPY, DIA, ISRG, BIDU to name a few.    Looking at the chart of SPY • Read More »

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MACD Divergence

November 12, 2009 | By jackieannpatterson | No Comments | Filed in: MACD.

MACD Divergence typically means a divergence between the MACD technical indicator and price.   The name MACD divergence is a little confusing and new traders are inevitably unclear about the definition of a MACD divergence or, most importantly, how to recognize one.  Once identified, the next question is how long after the MACD divergence signal does it remain a consideration in the analysis of price action.   • Read More »

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Backtesting Introduction

October 31, 2009 | By JackieAnnPatterson | No Comments | Filed in: Backtesting Set Up.

Click here for my Backtesting video interview at Moneyshow.   It gives an introduction to backtesting and covers two main topics: What is Backtesting? In short, backtesting is the process of testing a strategy by describing that strategy as a set of rules and applying those rules to historical price data.   It is often automated by using a software backtesting • Read More »

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Maximum Adverse Excursion

October 24, 2009 | By JackieAnnPatterson | 1 Comment | Filed in: Strategy Development.

Click to view my Maximum Adverse Excursion video.   The Maximum Adverse Excursion or MAE is a measure of how far a trade went against you.   Read this previous post for a definition.   BackTesting Reports measures MAE across thousands of trades, allowing you to use it as a metric to assess and compare trading strategies. Of course • Read More »

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Free Email Trading Course by Adam Hewison

October 19, 2009 | By jackieannpatterson | No Comments | Filed in: Classes, Outside Products Reviewed, Strategy Development.

 I get Google alerts on every MACD blog posting which is quite a lot. Most are not noteworthy and some are downright off base, but every once and awhile, a really good post on MACD comes along. That happened most recently when I came across a well-done video by Adam Hewison using MACD and MACD divergence. • Read More »

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Profit Trading: How to Choose Buy or Sell Signals

September 19, 2009 | By jackieannpatterson | No Comments | Filed in: Strategy Development.

Here’s a short interview at the MoneyShow on the topic of choosing buy or sell signals in order to profit trading and reduce risk of loss. Click here to play video To summarize: Before risking any money in the markets, I want to know that I have a reasonable chance to profit trading.   With that • Read More »

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MACD Divergences on SPY Since 2001

September 17, 2009 | By JackieAnnPatterson | 5 Comments | Filed in: MACD, Technical Strategies.

People at the MoneyShow and elsewhere ask me, “why MACD?” The short answer is that seeing how MACD Divergences pointed out some very good times to buy stocks and ETFs motivated me to want to use MACD.  So I learned the basics, made some good trades and a little money.   It wasn’t all roses however and taking • Read More »

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