Current Index Bounce Signal Status I’m writing this article to improve upon some of the limitations that I’d observed in the previous article (Catching the Bounce, Not the Falling Knife – HERE). 1. Autocorrelation works better when it is conducted on returns (daily close to close change), rather than Close values themselves. Hence, redid that. …
In investments, all strategies can be boiled down to two basic philosophies:1. Something is going up, and you bet it’ll keep going up (Momentum)2. Something is going down, and you bet it’ll reverse course soon (Reversion) The problem with the Momentum strat is that you buy something expensive, hoping it’ll become more expensive (thus needing …
Many have wondered why I chose some esoteric analytics for identifying trend. I mostly answer dunno. Haven’t really compared it against other trend indicators. Just seemed intuitive to me, so I continued with it. Here I’ll attempt to explain why I chose these. To answer that thought process, let’s ask. What is a trend?For me, …
Some days in the week have special significance for market participants. Thursday, for NSE is the options expiry day. Last Thursday of the month is the monthly options and futures expiry day. Since a lot of option denominated notional value gets unlocked on this day, Friday is sort of a fresh start.Hence, how the market …
