In 2004, when Larry Connors & Connors Research published How Markets Really Work, they started with the proposition to always look at the data in order to develop unique insights into price behavior rather than blindly follow widely accepted “truths”. It is with that same discipline that they undertook their most recent investigation into the… [Read More]
Securities that rise or fall multiple days in a row tend to reverse a high percentage of the time (oftentimes over 80% of the time).
Join Senior Researcher Matt Radtke for our latest article series designed to teach you a systematic, step-by-step process for building your own quantified and validated trading strategies.
Earnings season always gets lots of hype, and this one has been no different. This QTR was expected to be an easy comparison to Q4 (Recession of 2008), and it is as over 70% of reporting companies have beaten greatly reduced estimates due mostly to cost cutting and layoffs, but that is not the case for top line growth.
With the market overbought, here’s a refresher trading lesson from Larry Connors on how ETFs have historically performed on a short-term, reversion to the mean basis.
Are there situations where applying a stop-loss serves little purpose? This interview with Ernest Chan explores stop-losses, and why they do not work with reversion to the mean strategies.
Forex trader Chris Capre discusses how to trade forex using a much tighter reversion to the mean strategy.
Larry Connors takes a look at what mean reversion trading can do to boost the performance of your short term trading strategies for stocks and ETFs.
In this trading lesson, Jared Woodard suggests one way of finding profitable mean reversion opportunities, as well as, how to use option spreads to trade those opportunities.