studying stock market trends
Many daily trend signals are bullish
The volatility spread study turned bearish on 31 December and stayed bearish the first three trading days of January. I have remained bearish against the 31 December peak of 115.71. The volatility spread is currently signaling higher prices, but has flickered a lot. Three other studies that I watch are bearish on the daily charts – MACD, the small cap/large cap spread, and the stock/bond spread.
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Financial markets are predictable because segments of price action fit together in a limited number of patterns that are not random. Markets are unpredictable too because there is enough variability in the patterns to hide the trend at some stages of development. I am fascinated by the market and spend a lot of time working to identify price trends so I can exploit them for profit.