RSI is mostly used as a reversal or contrarian indicator. In most stock markets, this has worked really well over the last 30 years. But what if we flip it and use it as a momentum indicator instead to make a RSI momentum strategy? Can we make money that way? We can use RSI as…
Are you curious about how quants make informed decisions in the financial markets? Quantitative trading involves using mathematical models and algorithms to analyze market data, identify patterns, and make predictions. Additionally, quants also use qualitative analysis to optimize portfolio performance. Quantitative analysis has become increasingly important in modern trading as quants seek to gain an…
Can you make money on a bullish or bearish AAII market sentiment indicator? When the pessimists turn optimistic and the optimists turn pessimistic, a bottom or top is formed. If you understand market sentiment and where traders and investors feel the most pain or euphoria, you have gained a wealth of knowledge about potential turning…
Swing trading is a popular trading strategy that aims to capture short to medium-term price movements in financial markets. It involves holding positions for a few days to several weeks to take advantage of market swings. While swing trading requires a good understanding of market dynamics, utilizing the right indicators can significantly enhance trading decisions…
How do you calculate the future inflation rate? Is it possible? Yes, it’s possible to estimate the future inflation rate. In this article, we show you how you can interpret what the traders in the bond markets believe about future inflation. You can estimate the future inflation rate by looking at the difference between the…
Is high short interest good or bad? Short interest in trading has been a hot topic during 2021 after Gamestop made short-sellers run for cover at prices many times higher than their entry price. But was the short squeeze in Gamestop an outlier? Which stocks perform better – stocks with high or low short interest?…
Many momentum oscillators tend to turn very positive at the beginning of a major advance and quickly enter the overbought territory or even show bearish divergence while the market is still advancing. The ultimate oscillator attempts to correct that. Let’s find out what this oscillator is made of. The ultimate oscillator (UO) is a momentum…
Technical analysis strategy is a popular way of analyzing and forecasting price movements of financial assets such as currencies, stocks, commodities, bonds, and cryptocurrencies. While this strategy is as old as modern financial markets, not many know what it is and how it works. What is a technical analysis strategy? Technical analysis strategy is the…
Footprint trading strategy is a popular strategy used by traders to analyze and interpret order flow and volume data in financial markets. It provides valuable insights into the dynamics of buying and selling activities at each price level. In this article, we will delve into the details of what we might call footprint trading, including…
Weekly RSI vs daily RSI – what is best? This is a bit like comparing apples to oranges. It might be the same indicator, but RSI can deliver substantially different risk and reward payoffs in different time frames. Risk and reward are matters you can only answer yourself through backtesting. If you are a swing…
