Statistics  |  FEB 2011

The Spearman Indicator For Technical Analysis by Dan Valcu

This indicator is a very old statistical tool that even to this day helps determine trend strength and turning points. Here’s how to apply it to your trading. Technical analysis can be considered both a science and an art; patterns and chart reading represent the artistic component, while technical indicators help us analytically understand trend strength, buy/sell pressure, and divergences. There are perhaps thousands of technical indicators, but few seem to deliver real analytical power and differentiation in this increasingly crowded landscape, especially since many can be perceived simply as intellectual exercises that produce little bottom-line impact.

by Dan Valcu