174 Matching Annotations
  1. Nov 2021
    1. Long and short call or put options

      Can we have a long put and a short call ?? What is the difference between going long and buying a call ?

    2. Equal and opposite positions in the market for a fully hedged position (e.g., hedging one long position with an equally sized short position)

      Doesn't it just add up to nothing ? No profit can ba generated from this, it will always be 0 ?

    3. Figure 26.14

      Biais == bearish or bullish ??

    4. igure 26.13

      Stock vs. Index ??

    5. Generally speaking, with the exclusion of late entries, the higher the price of a long entry, the more aggressive in price and conservative in time of entry it becomes

      Can we have a situation that is conservative both in time and price ?

      Yes/No :

      • cf. Fig.26.9 for Yes
      • cf. Fig. 26.10 for No

      => Yes : cf. paragraph D. of page 843

    6. Support levels for longs and resistance levels for shorts

      Isn't there a problem if we long at a breached support ? Same for shorting a breached resisitance ? We want the price to go up for a long and down for a short so it seems to me that it's the inverse ???

    7. WCS

      Worst Case Scenario

    8. gure 26.8

      The trader adopting this strategy believes in some sort of range, since once the stop price of the buy stop is reached, I believe that it triggers a limit buy order below the market or at least at the market

    9. At extremely high levels of leverage, the concept of aggressiveness and conservativeness with respect to the price on entry or exit di-minishes rapidly

      Because with a small capital, one can create a large margin position => sheer capital invested is no longer significant due to leverage

    10. gUre 25.4

      Si ca dépasse le niveau du buystop, alors on déclenche un ordre d'achat proche du support

    11. Very late short or long entries with respect to support or resistance ■ Very early or premature long entries above support in a downtrend (both aggressive) ■ Very early or premature short entries below resistance in an uptrend (both


    12. Long entries taken below resistance in an uptrend ■ Short entries taken above support in a downtrend ■ Long entries taken just below a failed support ■ Short entries taken just above a failed resistance

      Isn't it the inverse ? short entry taken just below/above a failed support (since we want to see price decline)?

    13. It should also be noted that the longer it takes for a consolidation to unfold, the larger will be the number of potential buy stop orders that lie above the resistance zone and sell stop orders that populate just below the support zone. This explains why larger consolidations tend to produce stronger and more persistent breakouts

      buy stop orders place limit orders at the support, soif a lot of stop buy orders are triggered ,this places manylimit orders at support, and allows price to rebound strongly enough to pierce through the resistance

    14. stoplosses are es-sentially stop orders, which are trend promoting in nature


    15. inhibiting in nature


    16. security, index, or commodity

      What is the difference between these 3 terms ?

    17. total short sales

      Meaning : by the public (under-informed) and by the well-informed

    18. Cash/asset ratio

      En gros :

      • Cash/asset ratio grand => marché descendant
      • Cash/asset ratio petit => marché ascendant
    19. $2 per hour over a 10‐hour period.

      Why do we consider the time ?

    20. other third‐measure values over similar durations
      • What is a third-measure ?
      • Which third-measures are they talking about?
      • Is it that of stock B that they're talking about ?

      i.e. Compare third-measure of stock A to that of stock B over similar durations to find which one is the more volatile ?

    21. ncrease in Price Fluctuations over Equal Durations Indicating Potential Rise in Volatility

      Why is the first measure of volatilty satisfied ?

      Maybe because the time period is the "equal duration" ??

    22. over equal durations

      How do we pick the durations ?

    23. we could not determine which stock was more volatile since the maximum amount of price change over equal durations were the same for both
      • What about comparing over smaller time periods, if we do this, we'll clearly see that there are differences ?
      • How do we pick the timeframe ?
    24. exponential or parabolic

      Isn't it parabolic in t his example, since y'' = cte ?

    25. figure

      Mom >0 => fixed momentum

    26. Third‐Order Change

      ROC of ROC of PC

    27. Second‐Order Change

      ROC of PC

    28. First‐Order Change


    29. gure 21.3
      • Arithmetic change of price for stock A


      • Geometric progression for B
    30. price change

      Analogy with mechanics :

      • PC == speed
      • ROC of PC == acceleration
    31. Centered moving average

      SEE page 435

    32. This is because the bands are adjusted with respect to actual price action over a certain period of observation

      Period of observation which is the band's periodicity ?

    33. confirmation in the near or front month futures contract

      Crypto -> expiration des contrats futurs ?

    34. A dominant cycle is the cycle that most influences price and market action within the observed time

      Dominant cycle definition

    35. igure 18.7

      Dès qu'il y a 5 waves, elles sont dans la direction de la wave une échelle au-dessus, ce qui dans notre cas est descendant, d'où la (1),(2),(3),(4),(5) descendant ici !

    36. gure 18.5

      SEE paper version

    37. bearish chart patterns within a falling channel and bullish chart patterns with a rising channel.

      Strange since it's the opposite for wedges, and wedges resemble channels quite a lot ?!

    38. MACD

      See page 258

    39. ounding tops and bottoms

      U shape

    40. gets may also be obtained based on the parallelogram itself

      cf. Fig. 13.37, where we project the objective price targets based on the parallelogram and not on the pole !

    41. subside

      diminuer/se calmer

    42. rising channel meeting its minimum one‐to‐one downside price objective.

      Is a rising channel bearish ?

    43. It cannot be projected into the future for potential barrier levels.


    44. Many of the failed buy signals found on the chart in Figure 12.15 would have been successfully avoided or filtered out had the reversal entry breakout tech-nique been employed

      WHY ???

      Reversal entry breakout -> return to the mean ?

    45. Figure 12.11 is an example of tuning the fixed percentage bands to a domi-nant cycle on the four‐hour chart of GBPUSD. The trough‐to‐trough cycle period was 133 bars. Using the third formula would also yield ((2×133) +3)/4 = 67.25. Rounding to the closest integer would give us 67 periods or bars

      Does this mean that the central line is the 67 lookback period and that we obtain the bands by fixed perccentage (here 1.3%, cf. Fig. 12.11) ?

    46. Figure 12.4

      The diagonal channel is static and not dynamic ??

    47. Price below the central value is a bearish indication, but price below the lower band is considered much more bearish. Similarly, price above the central value is a bullish indication, but price above the upper band is considered much more bullish.

      How can this be when the price is also supposed to reintegrate the bandwidth ?

    48. Notice that un-like double and triple detrending, which tends to remove lag between the oscillator and price, double and triple smoothing increases the price lag.

      What is the difference between detrending and smoothing ?

      • smoothing = prendre le MA d'un oscillateur. Ex. : %D = 3-period SMA of raw %K
      • detrending = faire la différence entre deux MA !
    49. double detrending reduces the lag components between price and the oscillators

      WHY ???

    50. igure 11.22

      MACD represented as a histogram instead of a curve/line as of usually. But we see that each time the MACD signal line crosses the MACD (represented as a histogram), the MACD histogram is equal to zero !!

    51. gure 8.19

      The histogram in the MACD window (window above the MACD histogram window) and the histogram in the MACD histogram window are the same histogram, just with a different scaling !

    52. igure 11.21

      Serious lag issue, no ?

    53. seven-period

      Why 7 and not 3 as indicated page 260 ?

    54. signal line

      A signal line is a smoothed version of the original oscillator, that is, it is a moving average of the original oscillator values. As such, it will lag the original oscillator action. Signals are indicated as follows:

      ■ Oscillator crossing above its signal line is a buy (bullish) signal

      ■ Oscillator crossing below its signal line is a sell (bearish) signal

    55. nine-period

      what does a nine-period EMA mean ??

    56. Periods 2/Exponential Weighting Ratio 1
      • How do we get this formula ?
      • What does the term periods actually mean ?
    57. no lag with respect to price

      But we need to know future information since it is located in the middle of N bars => we need to know N/2 bars in the future. That's why there's no lag !!

    58. THE HAnDbook of TEcHnIcAl AnAlySIS436In technical analysis, the average price is usually positioned at the last right-most bar on the chart, that is, at the current bar. This is the non-centered or end-displaced version of a moving average. It is technically incorrect to place the average price at the last bar, but in technical analysis this is done because it is being used as a barrier to price, that is, as potential levels of support and resistance, it is able to interact with price. Although there is no price lag in the centered version, the moving average does not extend to the most recent bars and therefore cannot provide a barrier to price.

      WHY ???

    59. Expansion

      Projection ?

  2. Oct 2021
    1. Figure 10.76

      Retracement or Expansion ?? How do we differentiate both of these ??

    2. Fibonacci retracement levels (measured across the range AB)

      QUESTION : Is the paper version correct ?

    3. Figure 10.69

      SEE paper version

    4. diagonally. As a consequence, Fibonacci channel expansions will yield dif-ferent results depending on the type of scaling used on the charts.

      diagonal -> time effect -> depends on scaling of the chart

    5. logarithmic‐ or arithmetic‐scaled chart is employed

      For static, both work since it only depends on the price, so we can determine it numerically. However, since fan lines are dynamic, they depend on price AND time, so we can't just determine the levels numerically.

    6. BC

      WHY ??? Peut-être car en cas de double possibilité, on ne considère de préférence la plus petite ?

    7. Figure 10.51

      SEE paper version !

    8. the low of the day

      Coquille dans le graphique ??

    9. Figure 10.36
      • Avec l'échelle linéaire, deux graduations dont la différence vaut 10 sont à distance constante.
      • Avec l'échelle logarithmique, deux graduations dont le rapport vaut 10 sont à distance constante
    10. Figure 10.35

      Même remarque que pour la figure précédente !

    11. Figure 10.34

      Mêmes calculs => mêmes niveaux (38,2, 50,0, 61,8, ...) mais l'échelle (ie. l'axe des y) est log au lieu d'être linéaire.

    12. even though both approaches will give the same results

      cf. Fig. 10.28 où comme on a la même longueur en partant de B avec la projection que le segment AB, on peut alors partir de A ou de B. Par convention, pour les upside expansions, on part du trough, à savoir A.

    13. Figure 10.27

      SEE âge 380 of the paper version

    14. Fibonacci downside extension level
      • Use peak as base when downside Fibo
      • Use trough as base when upside Fibo
    15. Figure 10.26

      SEE page 377 of paper version for detailed graphs

      We put 100% between A and B because we look at the extension level beyond B so x% with x>=100%

      Also, we start hte Fibonacci extension at point A instead of B even though B is located earlier in time than A since A is a trough and B is a peak and it would be highly unconventional to pull Fibonacci levels from B to A

    16. Extension

      Isn't it rather an expansion where the up after point B fails and goes lower than the previous trough at B ?

    17. 423.6


      Or divide a number by 3 to the left

    18. 261.8


    19. 161.8


    20. 127.2


    21. 38.2

      1/Phi FAUX car Phi = 1 + (1/Phi)

      Obtained by dividing a sequence number by the sequence number 2 spots to the right : (Fn) / (F{n-2})

    22. 23.6


      Also (Fn) / (F{n-3})

    23. 61.8

      Phi - 1

    24. 78.6


    25. multiply

    26. extensions

      expansion instead ??

    27. Figure 10.9

      CAREFUL :

      • Arrow going up is an extension
      • Arrow going down is an expansion

      => this is why they previously defined an expansion as an extension in the opposite direction

    28. Figure 9.101

      Relative since we compare ratios (the y axis is a % axis !)

    29. Figure 9.93

      Peaks and troughs are not trending in the same direction in expanding or contracting formations !

    30. This is because volume oscillators are constructed to take into account price

      Explanation of why volume indicators are analyzed using standard and reverse divergences instead of volume, open interest and ATR.

    31. The rules for interpreting divergence are markedly different when it comes to vol-ume bar action, open interest, and average true range (ATR)

      Remember this when reading the next sections on divergence !! Not the same interpretation at all as for the other supporting data series !!

    32. Figure 9.63

      The MACD is the full line indicated on the chart, its signal line is the dotted line on the chart below the price chart, and the difference between the MACD and its signal line is the MACD histogram ! Note also that the MACD is the difference between the two lines on the price chart

    33. detrending is the MACD

      constructed by substracting the 26-period EMA from the 12-period EMA.

    34. signal line

      moyenne mobile ?? Oui, cf. page 246

    35. nter Wave Cycle/Degree Divergence

      Une divergence "contenue" dans une autre à une larger wave degree

    36. nter peak or trough Double Divergence

      Deux divergences qui se suivent

    37. current larger trend

      definition current larger trend

    38. Current and Prior Larger Trends

      What are the current and prior larger trends ? Aren't they the same as wave degree ??

    39. violating point 1

      How do we determine this horizontal line for point 1 ?

    40. points 1 and 2


    41. Divergence Analysis297this reason that it is referred to as standard divergence. However, reverse diver-gence involves comparing peaks in a falling market and troughs in a rising market and may be somewhat counterintuitiv

      Même annotation que juste au-dessus

    42. Logically speaking, comparing peaks in a rising market and troughs in a fall-ing market makes sense as market participants are psychologically more inclined to focus on new highs in a rising market and conversely on new lows in a falling market in order to make important trading and investment decisions, and it is fo

      Explication de pourquoi on a du standard et du reverse bull/bear

    43. tandard Bullish

      Def of non-confirmation given in p.274

    44. Remember that slope and reverse divergence are mutually exclusiv

      Why ???

    45. thE hAnDbook of tEchnicAL AnALySiS292In general terms, basic reverse divergence occurs when: ■ Only price, and not the supporting data series, is making equal or lower peaks (based on adjacent peak to peak analysis) ■ Only price, and not the supporting data series, is making equal or higher troughs (based on adjacent trough to trough analysis).

      cf. last note

    46. 1. Price is making higher peaks while the oscillator is making lower peaks 2. Price is making higher peaks while the oscillator is making equal peaks 3. Price is making equal peaks while the oscillator is making lower peaks

      Here, the price only makes higher or equal peaks -> lower peaks is for reverse divergence -> called "reverse divergence" since we start by giving the direction of the oscillator (only up or equal) and subsequently we give the direction of the price.

    47. jacent peak to peak and trough to trough analysis.

      cf. p. 271 et Fig. 9.22

    48. peak and trough analysis

      cf. p. 178 sur bearish divergence et bearish confirmation

    49. devoid of any visible peaks and troughs (F

      Why aren't there any waves in Fig. 9.8 ?

    50. reverse bearish

      So when we look at peaks, the price indicates the trend when there is a disagreement between price and signal, however when it's troughs, the signal expresses the upcoming trend ???

    51. Defining Direction of the Current Larger Trend

      On double de 9 à 18 car on distingue le peak-to-peak du trough-to-trough -> 2 fois plus

    52. collapse back to six

      Car on ne distingue plus le peak-to-peak du trough-to-trough -> 2 fois moins

    53. moving in opposing directions

      cf. version papier

    54. adjacent peaks or troughs

      In this case, the drawing on the paper version is an upper trend. Cf. Fig. 9.1

    55. George Lane

      Stochastic oscillator (cf. p.259 of chap. 8)

    56. 8.

      page 255-256

    57. To construct these pivot points, first find the previous day’s typical price. This represents the next day’s pivot level, PP
    58. RS
    59. stochastic

      What is the stochastic ?? Réponse : cf. page 259 ! (c'est le %K et %D)

    60. stochastic action

      What is the stochastic ?? Réponse : cf. page 259 ! (c'est le %K et %D)

    61. A signal line is a smoothed version of the original oscillator, that is, it is a moving average of the original oscillator values. As such, it will lag the original oscillator action. Signals are indicated as follows: ■ Oscillator crossing above its signal line is a buy (bullish) signal ■ Oscillator crossing below its signal line is a sell (bearish) signal

      signal line def

    62. True Range Action of the Daily Chart of Gold. Source: MetaTrader 4

      L'ATR est très "non smooth" car on n'utilise qu'une lookback period de 1. Si on faisait la moyenne mobile sur plus d'une période, il serait plus smooth.

    63. The difference between the previous close and the current high ■ The difference between the previous close and the current low

      Que dans le cas où il y a des gaps non ?

    64. t is the difference between the MACD and its nine‐period

      definition of MACD Histogram !

    65. ignal line.

      A signal line is a smoothed version of the original oscillator, that is, it is a moving average of the original oscillator values. As such, it will lag the original oscillator action. Signals are indicated as follows: ■ Oscillator crossing above its signal line is a buy (bullish) signal ■ Oscillator crossing below its signal line is a sell (bearish) signal

    66. applying numerically based overlay indicators to window oscillators

      C-à-d qu'on fait du chartisme sur des indicateurs window !

    67. We also see a projected channel bottom buy signal

      C'est-à-dire n channel dont la partie basse est à moitié (coef directeur) construite par projection de la partie supérieure qui elle a 2 points.

    68. Signals are indicated as follow

      cf. version papier annotée. On remarque que les reverse bullish ne sont valables que parce qu'il s'agit de troughs, si c'était des peaks, on aurait du bearish !

    69. this coincidence of buy and sell signals by both oscillators in the chart example in Figure 8.7 above creates false consensus and may lead the trad-er into a false sense of confidence

      But in this case (Fig.8.7), the signals are correct ??

    70. Classification of Technical Indicators

      Window oscillators : oscillateurs qu'on trace dans une fenêtre à part.

      Overlay oscillators : oscillateurs qu'on trace sur le graphe du prix directement

    71. Inside bars

      En fait, inside bar c'est quand la première bougie "contient" les suivantes alors que outside bar c'est quand le dernière bougie contient les précédentes.

    72. the hAndbook of technIcAl AnAlysIs224inside Bars
    73. Bullish Key Reversal Day on the Daily Chart of Apple

      on n'a que des bougies où l'ouverture est plus haute que la fermeture, et la key reversal bar est celle où l'ouvereture est plus basse que le fermeture (d'où le nom de reversal bar, car l'ouverture se trouve "à la place" de la fermeture !)

    74. We shall now look at various generic bullish and bearish formations

      En bourse, sur une valeur ou un indice, on parle de « gap » quand le cours d'ouverture est plus haut, ou plus bas, que tous les cours du jour de cotation précédent. Si la valeur d'ouverture est inférieure à la valeur la plus faible atteinte le précédent jour de cotation, on parle de « gap baissier ». Si la valeur d'ouverture est supérieure à la valeur la plus élevée atteinte le précédent jour de cotation, on parle de « gap haussier ».

      Par exemple, si une valeur possède un cours compris entre 10 et 12 un jour donné, si le jour de cotation suivant la valeur ouvre avec un cours de 9 on parlera de gap baissier, si elle ouvre avec un cours de 13 on parlera d'un gap haussier.

      Une règle d'analyse technique affirme que les gaps sont comblés. C'est-à-dire que, en cas de gap baissier, la valeur remontera au moins à la valeur la plus faible atteinte le jour de cotation précédent le gap. Dans notre exemple de gap baissier, il s'agirait de 10.

      De même, la règle affirme qu'en cas de gap haussier, la valeur baissera en séance au moins à la valeur la plus haute atteinte le jour de cotation précédent le gap. Dans notre exemple de gap haussier il s'agirait de 12.

      Il existe un certain nombre de cas de gap qui n'ont jamais été comblés et pour lesquels le comblement est assez improbable

    75. onstruction of a Price Bar

      Open : petit tiret à gauche de la barre Close : petit tiret à droite de la barre

    76. Intrinsic

      Intrinsic in the sense of chap. 4

      E.g. a head and shoulder pattern is bearish intrinsically, but it can happen in an uptrend and in this case, intrinsic sentiment and the trend disagree !

    77. Equivolume

      What is equivolume ?

    78. TRIN advances/declines / Up Volume/Down Volume=( ) ( )


    79. Open interest is simply the total amount of outstanding contracts in the futures and options markets. Unlike stocks, all futures and options contracts eventually expire. Open interest is therefore the number of unliquidated long or short contracts.


    80. Rising and declin-ing volume provide useful information about the level of interest or participation at various prices and indicate whether an ongoing trend is bearish or bullish

      Cf. ce qui a été dit au chap 4 sur l'intérêt des participants du marché et l'impact sur le volume.

    81. Price Barrier

      Normalement, dans la figure avec le support 1, on aurait dû casser ce support car on avait du volume pour confirmer la downtrend. Similairement pour la resistance 1. Low volume in the two lower charts are less reliable since it is mainly due to a lack of interest of the market participants.

    82. It is important to note that overextensions in volume can signal either a top or a bottom. Extreme buying and selling activity generates volume and can result in either a top or bottom. That is the reason why we cannot use the terms overbought or oversold with respect to volume extremes unless we are able to associate volume with either a top or bottom formation. Therefore, although we are able to pinpoint overextensions in volume, it is only possible to identify overbought or oversold lev-els in volume after a top or bottom has already formed, that is, in retrospect


    83. Low Volume–Based Reversals on the Daily Chart

      Revoir les conditions de trend change avec le volume !! cf. page 113 Figure 4.6 avec le trend exhaustion

    84. Volume Blow‐Offs

      Quand ca commence à omnter, il faut que le volume monte aussi, sinon on considère que ce n'est pas un uptrend, mais juste une correction. Pareil opur quand ça descend, il faut du volume pour accompagner la baisse :

    85. Selling Climaxes

      If the top is marked by a blow-off in the volume chart, then the following volume candles will be of smaller size, indicating a trend reversal ?

    86. volume declining during a consolidation

      This shows that declining volume during consolidation is also a thing to take into account

    87. reversal of the existing trend

      Hence if the trend is a retracment, we will see the bullish trend resume shortly

    88. irrespective

      irrespective since it indicates that maarket participants are not interested in seeing the price move further in this direction. Hence in a bullish market we see small volume during retracement since ppl are not interested in the retracement.

    89. The bullish or bearish sentiment associated with volume action depends on the direction of the price

      Cf. la remarque précédente

    90. Volume Confirming a Preexisting Trend

      Dans le premier graphique on a du decreasing volume car il s'agit d'un retracement/correction dans un marché bull. Si à l'inverse c'était un marché bear comme dans le 2e graphique, alors au contraire il y aurait un increasing volume. C'est d'ailleurs ce qu'on voit dans le deuxième graphique.

    91. A rise in volume indicates that market participants are interested in seeing the price go higher in an uptrend or lower in a downtrend and are willing to buy higher in an uptrend or sell lower in a downtrend in order to participate in the unfolding market action. 2. A decline in volume indicates that market participants are losing interest in seeing the price go higher in an uptrend or lower in a downtrend and are more willing to buy lower in an uptrend and sell higher in a downtrend, if not exit-ing positions in the market

      Très clair, à retenir

    92. Volume

      See page 113 for the relationship between volume and price action (volume declines during consolidation phases).

    93. open interest

      Open interest is the total number of outstanding derivative contracts, such as options or futures that have not been settled.

      Open interest equals the total number of bought or sold contracts, not the total of both added together.

      Increasing open interest represents new or additional money coming into the market while decreasing open interest indicates money flowing out of the market.

    94. 5.9 trenD DireCtionaLity


    95. ing limits the losses in either scenario by allocating a fixed percentage of original capital to narrow stops and a fixed percentage of current capital for stopsizes that exceed a fixed threshold size. The procedure for determining the proportional tradesize is as follows: 1. Do a backtest to find the average stopsize for at least 300 to 500 trades (if possible). 2. Calculate the two standard deviation value based on all the stopsizes in the sample. 3. Add this two‐standard deviation value to the average stopsize (this represents the proportional stopsize). 4. Determine the maximum percentage of current capital to risk for each trade and calculate its corresponding dollar value risk per trade. 5. Divide this dollar value risk per trade by the proportional stopsize (this repre-sents your proportional tradesize).Therefore, the trader would initiate trades based on the proportional trade-size for all trades where the stopsize is at or below the proportional stopsize. For stopsizes that exceed the proportional stopsize, calculate the tradesize by sim-ply dividing the maximum dollar value risk per trade by the stopsize. The term proportional refers to the percentage risk allocated per trade that is initiated for entries with stopsizes at or below the proportional stopsize. For such entries, the percentage of risk will vary proportionally with the stopsize, where the maxi-mum risk will always be capped at the maximum percentage risk per trade. For a more detailed description of the tradesizing issues that plague traders, refer to Chapter 28


    96. wing points and barrier strength


    97. Completion of the Average Period Range: One of the most reliable charac-teristics of price activity lies with its average period range, with the period being any chosen duration of observation. For example, let us assume that the average daily range of a certain FOREX pair is 120 pips per day. This would essentially mean that any price activity beyond this average range in either direction prior to the completion of the trading day will be regarded as a po-tential sign of exhaustion and a reversal may be expected. It is important to note that these averages period ranges may also be associated with underlying wave cycles in the market. Once the average range is breached prematurely, the practitioner begins to look for various signs of a reversal, paying special attention to supportive and resistive confluences. The average period range may be obtained via either of the following approaches: ■ The use of the average true range indicator (ATR) set to a reasonable look-back period on an interval chart of interest. ■ By finding the 2 standard deviation value of bar range over a certain number of periods.The practitioner should conduct a simple backtest to find the most reli-able lookback period for each of the above approaches. Note that with the latter approach, ninety percent of the period ranges will remain below the calculated value, the breach of which represents a greater degree of overex-tension or exhaustion


    98. Decreasing Cycle Amplitudes in an Uptrend Is Bearish

      See graph in the paper version to get counter example of increasing cycle amplitudes

    99. Note that for bullish divergence in volume, falling prices must be accompanied by decreasing volume.

      A l'inverse d'autres indicateurs comme le MACD ou le RSI

    100. whipsaws

      A condition of a highly volatile market where a sharp price movement is quickly followed by a sharp reversal

    101. Phase‐Based Charts Patterns.

      Distribution and accumulation are in the reversal section since they are inherently reversal patterns. What I mean is that a distribution phase is defined by a crash after the said distribution phase. Similarly for accumulation, there is a rise after.

    102. ntrinsically Bullish Patterns: ■ Bullish Pennants ■ Bullish Flags ■ Ascending Triangles ■ Inverted Head and Shoulders ■ Rounding Bottoms ■ Cup and Handles ■ Falling Wedges ■ Double, Triple, and Multiple BottomsIntrinsically Bearish Patterns: ■ Bearish Pennants ■ Bearish Flags ■ Descending Triangles ■ Standard Head and Shoulders ■ Rounding Tops ■ Rising Wedges ■ Double, Triple, and Multiple TopsIntrinsically Neutral Patterns: ■ Symmetrical Triangles ■ Horizontal ChannelsIntrinsically Bullish Patterns with Respect to Trend Sentiment: ■ Bullish Pennants occurring in an uptrend ■ Bullish Flags occurring in an uptrend ■ Ascending Triangles occurring in an uptrend ■ Inverted Head and Shoulders occurring in an uptrend ■ Rounding Bottoms occurring in an uptrend ■ Cup and Handles occurring in an uptrend ■ Falling Wedges occurring in an uptrend ■ Symmetrical Triangles occurring in an uptrend ■ Horizontal Channels occurring in an uptrend ■ Broadening Formations occurring in an uptrendIntrinsically Bearish Patterns with Respect to Trend Sentiment: ■ Bearish Pennants occurring in a downtrend ■ Bearish Flags occurring in a downtrend ■ Descending Triangles occurring in a downtrend ■ Standard Head and Shoulders occurring in a downtrend

      Go see what all of these patterns are !

    103. In markets where the trading is continuous

      cf. crypto

    104. The durations between active trading sessions are longer

      Does not concern crypto since the market is active 24/7

    105. industrial or transportation

      Industrial and transportation averages !

    106. give earlier trend change signals

      Uptrend lines are violated sooner since logarithm tends to rapprocher les points éloignés arithmétiquement (de manière non linéaire, d'où la cassure de la ligne de tendance plus tôt)

    107. The pricing of all known information need not be instantaneous or be driven by rational participants. There is also no requirement that all participants always act on all information all of the time, or that they react in the same manner.

      Difference with EMH

    108. he mechanism by which information is known to the market is that of actual participation via capital injection.

      This means that any information is accounted for by capital injection

    109. Markovian condition

      In the sense that the possibilities for future price are given by current price, but there is then no way to predict which possibilty will be chosen. E.g. random walk in Z^2, if we're wurrently at a certian point, we have 4 possibilities for next move which are equiprobable

    110. Therefore, they cannot impact future prices

      Past price cannot influence future price, hence TA is useless as it uses past info to predict future price mvts.

    111. nstantaneously

      cf. remark on "Gradually" in Fig.1.28

    112. Gradually

      Gradually since on the graph we don't have a vertical spike like in the EMH case. This means that participants do not all react at the same time.

    113. Efficient Market Adjusting to New Information

      No insider information that would be discounted by the price, nor irrational behaviours like selling on a bullish news

    114. Conflicting Chart Pattern Signals.

      LS : Left Shoulder H : Head RS1 : Right Shoulder 1

    115. Volatility Band

      Volatility band is +/- ATR where ATR is the Average True Range which is sort of a confidence interval given by the formula of this site : https://www.investopedia.com/terms/a/atr.asp