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EMA vs SMA: Which moving average works better? I tested both
An EMA weights recent prices more, so it turns faster than an SMA of the same length. I tested both as a simple trend rule on the S&P 500 since 1988…
Tag: BTC
15 posts tagged BTC, newest first.
15 posts · page 1 of 3
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Sharpe ratio: What a good one looks like on real data
The Sharpe ratio is the return you earned above cash, divided by how much the returns swung. Holding the S&P 500 with dividends since 1988 has given…
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Head and shoulders pattern: I tested 70 of them
The head and shoulders is the best-known reversal pattern in technical analysis: three peaks, the middle one highest, and a break of the neckline is…
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Doji candle: What 12 years of S&P 500 and Bitcoin data show
A doji candle is a day that closes almost exactly where it opened. Textbooks call it indecision and say that after a rally it can warn of a turn. I…
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Max drawdown: What 98 years of S&P 500 falls show
Max drawdown is the biggest fall from a peak to a later low, in percent. For the S&P 500 it is −86.2%, from September 1929 to June 1932, and the…
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Bull flag pattern: I tested 244 of them
A bull flag is a sharp rise, a short pullback that drifts lower, and a breakout above the high. I tested 244 of them with fixed rules on the S&P 500…