Archives: technical

How About Doing What Works?

January 12, 2010 | By JackieAnnPatterson | No Comments | Filed in: Classes, Outside Products Reviewed, Strategy Development.

Adam Hewison’s  Minute 3 video (click here to watch) suggests traders choose between technical and fundamental information for their trading decisions. I have to ask:  How about using what works? We have the technology now to check out how well each of the different types of data performed in the past.  You can look at the • Read More »

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Stock Buy Signals

March 16, 2009 | By jackieannpatterson | No Comments | Filed in: Moving Average, Objective Trading, Strategy Development, Technical Strategies.

Here is part 2 about stock entry strategy or the buying process.   The previous article talked about stock screening, which is the background investigation to select a pool of candidate stocks to buy when the time is right.   The trigger or market timing signal is the topic of this article.     Why You Need to Time • Read More »

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BackTesting Moving Averages

March 9, 2009 | By jackieannpatterson | 7 Comments | Filed in: Backtesting Set Up, Moving Average, Reports, Technical Strategies.

Why Moving Averages As a trader or investor, the only reason to investigate moving averages is to gain knowledge to increase profits. Like many other technical indicators, moving averages are meant to help us objectively tell the market status at any given time. This helps us see through the emotions of the day and make • Read More »

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Indicator Definition

October 27, 2008 | By jackieannpatterson | No Comments | Filed in: Glossary.

An Indicator is an abstraction of historical price data which is used to gain insight into the stock or market behavior.   Examples of popular technical indicators are Moving Averages, Bollinger Bands, MACD lines and histogram, RSI, Stochastic Oscillator. Stockcharts.com has a good comprehensive definition of technical indicators. Extra Insight: Indicators describe past market action in a • Read More »

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Monte Carlo Simulation Definition

October 22, 2008 | By jackieannpatterson | 1 Comment | Filed in: Glossary.

Monte Carlo Simulation is a method of stress-testing a trading strategy.   The general idea is to use random data to construct a larger sample space built according to the same results distribution as the original sample.   This more clearly shows the effects of chance on potential outcomes and gives a broader set of data to make decisions. Monte Carlo methods may be applied • Read More »

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Trading System Definition

October 8, 2008 | By jackieannpatterson | No Comments | Filed in: Glossary.

Trading System refers to the whole set of rules, practices, and habits that make up the process of trading.    This includes market selection, portfolio selection, when to trade, which trading strategies to use when, entry signals, exit signals,  sizing, record-keeping, risk management.   The whole enchillada. Extra Insight: Even though I often use the terms interchangably, I think • Read More »

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