The stock market has been a tough place for trend-following since January 2022, which is when the S&P 500 first triggered a bearish trend signal. The bearish signal in question is the humble
2022 has been a tough market for trend-followers, but swing traders have been able to catch a few rides. Trend-followers are suffering because whipsaws are above average this year. A whipsaw occurs when an uptrend cannot extend after a bullish trend signal and the trade results in a loss.
Before looking at some trend-following stats,
The S&P 500 SPDR (SPY) is in the midst of a strong advance since mid July as it became “overbought” on July 20th and remains overbought. Today’s article will show how to measure overbought and oversold levels using StochClose, which is a version of the Stochastic Oscillator that uses closing prices.