Slope of Hope Blog Posts

Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.

A Big Picture Review

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In my post on Friday 6th August I was looking at a possible backtest scenario on SPX that could be setting up and I’d like to review how that is looking on my first post this year, as I think that backtest may well be delivered over the next few weeks.

That backtest would be of a huge resistance trendline on SPX that broke at the end of 2021 / start of 2021, and is currently in the 3850 – 3900 area. The break over that trendline may have been a break up over a rising megaphone resistance trendline with a target in the mid 6000s on SPX , but if that is the case, to confirm that target, the trendline would need to be backtested and hold into new all time highs on SPX.

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PREMIUM: Using Division for Vision

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NOTE: This post was taken out from “behind the paywall” on December 20, 2022.

The realm of technical analysis is often presented in a way which is unnecessarily, and unhelpfully, complicated. The basic tenets around good charting focus on supply, demand, support, resistance, and trendlines. Using a very limited palette of tools, a skilled chartist can glean great insights from long-term charts about possible directions and their likelihood.

One interesting “twist” to the world of charting is using the same tools and techniques on ratio charts instead of standard charts with a single data series. Any given financial instrument can be divided by another, and although the resulting chart might be interesting, it might not be at all useful. For example, one could divide the price history of Apple (AAPL) on a daily basis for the past forty years by the price data for the commodity wheat over the same timespan, but as unrelated as those two things are, the resulting chart would likely be pointless.

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