Email of the day (4)
Comment of the Day

July 22 2010

Commentary by Eoin Treacy

Email of the day (4)

on an addition to the Chart Library and backtesting
"Would it be possible to add the ASX listed company DML to the chart list please?

"Also, I am interested to know if you or anyone else has ever run research on the percentage reliability of key day reversals over a range of indices and individual stock charts, in regard to their consistency in predicting a reasonably significant change of direction."

Eoin Treacy's view Thank you for this suggestion which has been added to the Chart Library. We have not performed back testing on any one portion of our analytical arsenal. Our approach to market analysis is holistic because we tend to look for a number of factors to fall into place before we initiate trading or investment positions. Key day reversals and weekly key reversals are important signals that previously consistent trends may be ending but are at their most reliable when combined with a prior observation of acceleration, commonality and relative strength.

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