Advance-Decline Indicator (Strategy Backtest)

There are many tools investors use to measure investors’ sentiment in the stock market, but the advance/decline indicator is one of the simplest ones. But what does the advance-decline indicator mean? Often referred to as the advance/decline index or advance/decline (AD) line, the advance-decline indicator is a market breadth indicator that plots the cumulative difference…

Chaikin Oscillator Trading Strategy – Does It Work? (Backtest of the Chaikin Indicator)

The Chaikin Oscillator Indicator was developed by Marc Chaikin in the 1980s. It’s not widely used nor well-known, perhaps for good reasons: we didn’t manage to find any significant profitable Chaikin Oscillator Trading Strategy in any of the quantified tests we did. In this article, we briefly explain what the indicator is, how it’s calculated, and…

Stochastic Trading Strategies – (Backtest, Indicator, Settings, Rules, and example)

The stochastic indicator is a standard indicator in any trading platform, but we rarely see it published or used in any Stochastic trading strategies. Compared to the RSI, stochastics seems much less popular. Is that because it’s less useful, or is this a hidden gem? The stochastic indicator does work in a stochastic trading strategy….

Williams %R Trading Strategy – Williams Percent Range vs RSI (Indicator & Systems)

Williams %R was developed by the famous trader and tax rebellion Larry Williams, who has given names to several technical indicators. Last week we wrote about the WilliamsVixFix indicator, and today we are explaining the Williams %R trading strategy and how to calculate and use the indicator. Williams %R does work. In this article, we…

WilliamsVixFix Explained – Does It Work? (Including trading strategies)

WilliamsVixFix indicator was invented back in 2007 when the well-known trader and “indicator innovator” Larry Williams wrote an article in Active Trader about VIX and how you can create your synthetic VIX for any security you like. The aim of Williams was to create a “synthetic” VIX reading for other instruments than the S&P 500,…

MACD Trading Strategy – Indicator Explained (Backtest, Setup, Rules, Performance and Settings)

Can we use the MACD indicator and the MACD histogram to make a profitable MACD trading strategy? This article looks at the MACD-indicator, what it is, and how you can use it. Does the MACD indicator work? In which markets does it work best? Which time frame is best? The MACD indicator is a useful…

Best ADX Trading Strategy (Average Directional Movement Index Indicator) Backtest, Setting, Rules and Example)

Is it possible to use the ADX indicator (Average Directional Movement Index) to find a profitable ADX trading strategy? This article looks at the ADX indicator where we make some historical backtest to evaluate and analyze. The adx indicator was developed by Welles Wilder and released in his book in 1978 called New Concepts In…

The Elder Ray Indicator (With Strategies): Does It Work?

In a series of articles, we want to test different indicators and trading techniques. Almost all indicators are “proved” by anecdotal evidence, and rarely quantified. That’s perhaps not a coincidence: Most of them are useless and do not have any predictive value. We backtest some Elder Ray strategies and Our aim is to figure out…