Orion

Orion is a price projection strategy for financial markets.It uses technical analysis to assist in finding trend direction and distance.

Bar Types and Closing Percentages

Closing Percentages The calculation of a stochastic is used to determine what percentage of a range the current close is at. Should you reset the stochastic %K value from what every it set at to a value of 1, it will only be evaluating the close percentage based on the range of one bar.  Ignore …

Getting Serious about trading? What you may need to consider!

Let us get “real” for a moment when it comes to investing/trading in the stock market.  How much can you honestly make and what do you need to “live” off your earnings? If you are new to the market, or even been playing around and are starting to get serious about investing.  There is one …

What Is Needed to Build a Good Trading Strategy

Traders are searching for the holy grail, a single indicator or system that is 100% accurate. However, this is as foolish a search as trying to find the real El Dorado, the fountain of youth or the holy grail itself. Why? While there are events that are “baked” into the price action of markets. There …

Market Models

I mentioned previously the topic of using market models. A market model in simple terms utilizes three simple moving averages of varied time frames to help determine the current disposition of current prices to historical prices. For my market model, I prefer to use the 8, 13 and 21. These have specific meaning aside from …

Trading 2021 – The way ahead with caution.

2020 left us with a problem. The year generated an engulfing bar on two out of three indexes (DJI & SPX). An engulfing bar is a bar in which the high is higher than last bar and the low is lower than last bar. For the DJIA, since 1896, there have been 8 engulfing bars …

Why moving averages “lag”.

Why do moving averages “lag”? To be completely honest, they do not lag. Well, not entirely. If you don’t fully understand the calculation for a simple moving average, then you will make the mistake that many do by saying “they lag”. When using a moving average many investors make a critical mistake. They look at …

The Problem with Indicators in Technical Analysis

There exist two major problems with indicators in technical analysis. The first can be easily rectified, the second is not so easy to correct. Before we get into the description of the problems and the possible fixes. I would like to first address what some “indicators” are. The dictionary defines an indicator as: “1. A …

The correction of 2021

Let's examine the last three corrections of 2018 and 2020. The DJI signals danger when the prices are near/over 3x trade ranges away from the short term trend MA. The further it climbs away from the MA the higher the chance of the correction coming. From June 2017 - Jan 2018, the DJI continued to …

Truth about averages

Averages are given a bad reputation in the technical analysis world. They are often touted as being a "lagging" indicator. The cross-over strategies are touted as ineffective. The only category where ANY positive recognition is given would be regarding trend determination. But this isn't entirely true. What if you could look one trade period into …

37 Year Market Pattern (The Master Cycle)

Larry Williams in The Secrets of Selecting Stocks For Immediate and Substantial Gains wrote about this pattern in 1986. In writing about this, Mr. Williams stated that the market is on a 37 year cycle. Using 1859 as a start the cycle would then start again at: 1896, 1933, 1970, 2007 and 2044. Within this …