Plain-English guides to technical indicators, settings, chart behavior, and practical trading rules for trend following and breakout strategies.

Price Discovery: How Markets Turn Orders Into Prices

A company reports earnings after the close, the print lands a little ahead of estimates, and by the time the stock reopens it's trading four percent higher. Stare at that…

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Trade Sign Classification: How Order Flow Gets Signed

Pull a single day of time and sales for any active stock and you'll get a tidy column of prints: a price, a size, a timestamp, sometimes a venue code.…

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Liquidity Resilience: How Markets Rebuild Their Depth

A single market order can strip the visible book in a blink. Picture the best offer showing 4,000 shares, and then a buyer lifts 12,000 in one print. The top…

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Opening and Closing Auctions: How the Single Price Forms

The last number printed on a chart at the close is the one everybody quotes. It sets the daily candle, the mark on your brokerage statement, the figure a fund…

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Hawkes Process: Why Market Events Arrive in Clusters

Watch a fast tape for a few minutes and the rhythm gives itself away. Trades, quote changes, and cancellations don't arrive like a metronome. The book goes quiet, then a…

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Event Study: How to Read Abnormal Returns From News

A headline crosses the wire: a stock "jumped 4% after earnings." It reads like a clean reaction, cause and effect in one line. Then you pull up the tape and…

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Log Returns vs Simple Returns: What Traders Must Know

A stock closes up 10 percent on Monday and down 10 percent on Tuesday. Add the two moves and you get zero, so the week looks like a wash. The…

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Multiple Testing in Trading Research: When a Signal Lies

Picture a moving-average crossover you're testing. You try fast lengths from 5 to 50, slow lengths from 20 to 200, three different exit rules, and four separate stock universes. Somewhere…

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Time Aggregation: Why the Chart Clock Changes What You See

Two traders pull up the same stock on the same day and come away describing two different markets. One calls it a quiet session, up a fraction, nothing worth a…

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Queue Priority: How Order Position Shapes Execution

Picture a bid at 50.00 showing 40,000 shares. You add a limit buy at that same price, then watch the prints roll by. Trades go off, the tape ticks, and…

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