Dancing with the Trend

Greg Morris
About the author: has been a technical market analyst for over 40 years and is the author of several popular financial analysis books including Candlestick Charting Explained, Investing with the Trend and The Complete Guide to Market Breadth Indicators. Before retiring, he served as the Chief Technical Analyst and Chairman of the Investment Committee for a technical-based money management company with over $5.5 billion under management. Greg has appeared on CNBC, Fox Business, and Bloomberg Television and has also spoken at numerous financial conferences around the world.

Latest Posts

Dancing with the Trend

Thoughts on Technical Indicators

by Greg Morris

There is a myriad of technical indicators available to traders, and regardless of which indicators are used, blending them with other tools and good charting skills can produce a more in-depth picture of the price action.  For example, a stock may be approaching a support level defined by a trend line or previous price level (horizontal trend line).  The indicators signal a loss of momentum and possible reversal.  Other technical indicators show an oversold condition (caution with this term – see this article).  Considered together, full confirmation from the various Read More 

Dancing with the Trend

The Intellectual Void

by Greg Morris

I’m always trying to come up with new ideas for articles and don’t mind if I cross the line a little bit even if it offends a few – I just don’t want to offend everyone; certainly not all at once.  This one is going to do just that – I think.  My articles are rarely about current market action and more focused on the many lessons I have paid dearly for over the last 45 years.  I often say that I have multiple Master’s Degrees in what not to do. “You don’t need a weatherman to know which way the wind blows.”  Bob Dylan Read More 

Dancing with the Trend

Advantages and Disadvantages of Using Breadth

by Greg Morris

Consider a period of distribution (market topping process) such as 1987, 1999, 2007, 2011, etc. As an uptrend slowly ends and investors seek safety, they do so by moving their riskier holdings such as small cap stocks, into what is perceived to be safer large cap and blue-chip stocks.  This is certainly a normal process and one that can’t be challenged.  However, the mere act of moving from small to large cap stocks causes the capitalization weighted (Nasdaq Composite Index, New York Stock Exchange Index, S&P 500) and price weighted (Dow Jones Industrial Average) to move Read More 

Dancing with the Trend

Authors and Newsletter Writers

by Greg Morris

A couple of weeks ago I wrote about all the various types of technical analysts (Technical Analysts!); in this article I add to that list the authors and newsletter writers. Authors Well, I’ve written four books, two were essentially research projects (Candlestick Charting Explained and The Complete Guide to Market Breadth Indicators), one was a workbook, Candlestick Charting Explained Workbook, to add support for my first book on candlesticks, and the last book, Investing with the Trend, was me dumping 45+ years into what I refer to as my latest and last book.  Of course, after the Read More 

Dancing with the Trend

Momentum - Rate of Change

by Greg Morris

Too often I see a basic misunderstanding between Momentum, Rate of Change, and Price Difference.  Let me try to make it clear.  They are essentially the same thing. Momentum Momentum deals with the rate at which prices are changing, kind of like acceleration and deceleration. Here is the formula for momentum: (Close / Close n periods ago) x 100 (n denotes the number of periods used).  If there is no change in price over your specified time period, Momentum will be 100; positive price changes will have Momentum greater than 100 and negative price changes will have Read More 

Dancing with the Trend

Technical Analysts!

by Greg Morris

After 45+ years as a technical analyst I have found that this breed of folks comes in many sizes and flavors.  I can write about each of them simply because I have at one time or another been there, done that, and still doing it.  In doing this I’ll share some stories along with the usual strong opinions.  I always like to set a goal for an article, so this one is just trying to share an awareness that you may or may not know. Newbie Probably self-explanatory, however a newbie can originate from different directions and angles.  We have Read More 

Dancing with the Trend

Hindenburg Omen Update

by Greg Morris

The Hindenburg Omen has been touted often lately.  I thought I’d share with you information about it that I obtained directly from its creator, James Miekka.  Most of the below came from the second edition of my “The Complete Guide to Market Breadth Indicators.”  It is only available from Amazon. Also known as: New High New Low Sell Signal Author/Creator:  James R. Miekka. Data components required:  New Highs (H), New Lows (L), Advances (A), Declines (D), Total Issues (TI), Market Index (MKT) Read More 

Dancing with the Trend

Building a Rules-Based Trend Following Model - 14

by Greg Morris

I spent a great deal of time working on an asset commitment model using the Chande Trend Meter (CTM) and believe I have something worth sharing.  Tushar defines ranges for CTM based on the degree of trendiness and I have assigned Asset Commitment percentages to those pre-defined ranges.  Table A shows the asset commitment levels for the ranges used by CTM. Table A Chart A shows the Nasdaq in black, the CTM in blue and the digital asset commitment in green.  This chart is for the period that encompassed the bear market from 2007 – Read More 

Dancing with the Trend

"Believable" Misinformation Is a Danger to Long-Term Retirement Goals

by Greg Morris

Many investment "truths" seem to go unchallenged but are in fact, very clearly just myths.  Buy and hold investing is a good long-term strategy, economists are good at predicting the markets, diversification will protect you from losses, compounding is the eighth wonder of the world, missing the best days each year can be devastating, probability and risk are the same thing, and chasing performance will work; just to mention a few.  It is important to debunk these myths. Buy and hold is a proven strategy for the stock market. The 1976 Ibbotson Read More 

Dancing with the Trend

Weight of the Evidence - 3

by Greg Morris

In the past two articles on Weight of the Evidence my goal was to show you how you can use Tushar Chande’s Chande Trend Meter (CTM) in a trend model.  I stated previously that my digital weight of the evidence also provides levels that define buying parameters, stop loss percentages, and asset commitment amounts (see this article).  In Weight of the Evidence -2 I showed that by exponentially smoothing CTM it greatly reduced its volatility and made it a bit more useable for a model.  From a ChartSchool article on CTM, Tushar provides his levels that offer degrees of Read More 

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