There are different ways of performing technical analysis. While some focus on price action, others make use of indicators. Both moving average convergence divergence (MACD) and the relative strength index (RSI) rank among the most popular indicators used in technical analysis and trading. But what is the MACD and RSI strategy? The MACD and RSI…
The internal bar strength is defined as follows: (close-low)/(high-low). This indicator is very useful on mean revertive trading instruments, like for example XLP. This article contains a simple but quite effective trading strategy using the internal bar strength indicator: The internal bar strength trading strategy (This article was first published in January 2018. Thus, 5…
A while back I wrote about a day trading strategy in SPY. This one works pretty well on XLP as well, with some modifications: The high and low divergence mean reversion trading strategy The strategy is like this in plain English: Trading Rules [am4show have=’p2;p3;p58;p59;p130;p138;’ user_error=’Premium Post Access’ guest_error=’Premium Posts’] Calculate a 25 day average…
Consumer Stocks XLP Day Trading Strategy This was a long headline, which probably won’t catch many readers. Anyway, the trading strategy has proven to perform well in the past but in the last years up to 2021, it has been rather flat. In trading, boring is good. The strategy is tested on the ETF with…
