Latest Trading Research & Articles
Latest research and articles on trading and day trading related matters. Research mainly focuses on Emini and Forex markets. You will find in-depth research on trading techniques, market biases and trading signals that you will never read from anywhere else. You can always find something useful to improve your trading here.
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Guest postings are welcome. Contact Lawrence with your submission / questions.
To view specific category of articles like Emini only articles, Forex only research or trading system design related posts, use the menu to the left to select the specific topic you are interested in.
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Outside Gap Behaviour, Then and Now
Many traders who daytrade emini S&P probably are familiar with the gap fill bias. What I am going to show here is how a particular type of gap fill, outside gap, has changed over time. Gaps are created when a market open at a price different from ...
Many traders who daytrade emini S&P probably are familiar with the gap fill bias. What I am going to show here is how a particular type of gap fill, outside gap, has changed over time. Gaps are created when a market open at a price different from ...
Gap (Up) and Go Failure
One very reliable pattern showed up today (Jun 13, 2011) in Emini S&P that worths a more detailed explanation. The Setup
One very reliable pattern showed up today (Jun 13, 2011) in Emini S&P that worths a more detailed explanation. The Setup
- Market down more than 2 to 3 percent from previous month close
- Market gap up but within previous day trading range
- Tried to gap up and go (i.e. rally off open at once) but stopped after 15 minutes
- Then the next hour trapped within OR (open range or the first 30 minutes)
- Extremely bearish $tick reading all along
- Last swing down coming off VWAP
Lunar Cycle – First Look
Many people would like to believe that there exists mystical cycles that they can use to unlock the secrets in the markets. Here is an introduction of lunar cycle and its applications on timing the US stock markets. Basics Lunar cycle in genera ...
Many people would like to believe that there exists mystical cycles that they can use to unlock the secrets in the markets. Here is an introduction of lunar cycle and its applications on timing the US stock markets. Basics Lunar cycle in genera ...
Nasdaq 100 Down 2% Trading Setup
On a day when Nasdaq 100 is down 2% from its previous day close, something very interesting is likely to happen within a day or two.
Following is a table of Nasdaq 100 emini from September 2003 to March 2011 showing the statistics related to the 2% drop phenomenon.
...Misunderstanding of Trading System Designs
Most retail traders misunderstand that trading systems are created by ad hoc grinding in trying out all kinds of rules to see if a system is profitable (or whatever metric you like to use as the performance yardstick). Here is a short summary of the ...
Most retail traders misunderstand that trading systems are created by ad hoc grinding in trying out all kinds of rules to see if a system is profitable (or whatever metric you like to use as the performance yardstick). Here is a short summary of the ...
Some Thoughts on "Nassim Taleb on Living with Black Swans"
First it is a good read - Nassim Taleb on Living with Black Swans Several interesting parallels on Nassim's take on the current situation in the financial system to individual traders or trading models - Traders who never experienced significan ...
First it is a good read - Nassim Taleb on Living with Black Swans Several interesting parallels on Nassim's take on the current situation in the financial system to individual traders or trading models - Traders who never experienced significan ...
Choosing the Right Laptop for Trading
It can be confusing when we go out there looking for the right laptop that is suitable for daytrading. I am going to point out several features that are more important for daytrading purpose. Update: For those of you interested in buying a new Deskt ...
It can be confusing when we go out there looking for the right laptop that is suitable for daytrading. I am going to point out several features that are more important for daytrading purpose. Update: For those of you interested in buying a new Deskt ...
Gold in Yearly STOPD Perspective
Here is a spot gold weekly chart with yearly STOPD Levels. I draw those levels by hand as I do not have access to my auto indicators on this laptop. Observations, 1. The orange levels are 1st quarter of 2010 and 2011 projections. Gold reached 400% ex ...
Here is a spot gold weekly chart with yearly STOPD Levels. I draw those levels by hand as I do not have access to my auto indicators on this laptop. Observations, 1. The orange levels are 1st quarter of 2010 and 2011 projections. Gold reached 400% ex ...
Laptop Woes from nVidia 8600M Chipset
This week when I take my LG P300 laptop with me instead of my usual touch screen ones, it died on me with some odd symptoms. The LCD output was mixed with messed up output, etc. When I get the chance to test it with a LCD monitor, vertical strips sh ...
This week when I take my LG P300 laptop with me instead of my usual touch screen ones, it died on me with some odd symptoms. The LCD output was mixed with messed up output, etc. When I get the chance to test it with a LCD monitor, vertical strips sh ...
Measured Move (a.k.a. 1-to-1 Swing, ABCD Move)
Part of Art of Chart Reading Summary Measured move is a name given to a highly structured price movement that consists of 2 swings in the same direction with a pause in-between. The 2 swings are supposed to be very similar to each other, meaning ...
Part of Art of Chart Reading Summary Measured move is a name given to a highly structured price movement that consists of 2 swings in the same direction with a pause in-between. The 2 swings are supposed to be very similar to each other, meaning ...