Decoding Markets and Marwood Research

Technical Analysis Study
101 LESSONS FOR ASPIRING TRADERS
A lot of the work I do is quantitative and based on the backtesting of historical patterns 
and indicators. A while ago I did a short study on technical indicators to see if any of them 
had any predictive ability and are worth trading. The results were mostly underwhelming 
and showed that most indicators do not provide much edge. As you can see from the table 
below, the best profits came from the RSI(2), 252-day low and On Balance Volume (OBV) 
indicator. 
For example, buying stocks when RSI(2) went under 5 produced an average profit of 0.53% 
over ten days. Meanwhile, buying stocks at new 252-day lows produced an average profit 
of 3.42% over 50-days. On their own, these signals may not mean much but they could be 
combined with other factors to form a worthwhile trading strategy:

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Thank you once again for downloading this guide and learning a bit about me and my 
thoughts on investing.
To learn even more and see some of the work I have done on trading strategy development 
I’d love to see you at my website 
www.decodingmarkets.com
.
Best wishes and best of luck with your trading!
- Joe Marwood
Thank you