ARTICLE SYNOPSIS ...Trend Alert! With The CCI by Martin Boot The trend is your friend -- or is it? How do you know when a trend has turned against you? There are only so many indicators that can alert you. Among them, one of the most helpful is the commodity channel index (CCI). Introduced by Donald Lambert in 1980, the CCI is a price momentum indicator that measures a security price's variance from its statistical mean. It is commonly considered useful in determining the beginning and end of a trend. It does so effectively, but it can also be used in another way. When I was engaged in a major research project ...
ARTICLE SYNOPSIS ...Does The Head & Shoulders Formation Work? by Martin Boot Rarely will you come across a technique that detects an imminent change in trend, but here's a method that can help you do just that. The head and shoulders pattern has long been considered one of the most reliable in technical analysis. That should mean that more often than not, every trader can make high returns on their holdings. Unfortunately, it's not that simple. I am engaged in a major research project involving statistical analysis of 8,513 New York Stock Exchange (NYSE) and Nasdaq stocks over a four-year period. I test well-k...
ARTICLE SYNOPSIS ...Trend-Following With The ADX by Martin Boot Have you ever been interested in a system, but weren't quite sure how it worked? Here's a simple and robust trend-following system using the ADX, with only one entry condition and one exit condition. To design and develop a sound trading system, we need a clear and logical basic idea. From this, we must derive proposed entry and exit points. A sound trading system must be robust; for the system to be as robust as possible, the idea must be as simple as possible. A robust system is one that behaves consistently in different markets; a robust system...