Stocks & Commodities V. 36:12 (8–12): Identifying High-Probability Buy Signals by François Picard, MS, & Edmond Miresco, PhD

Identifying High-Probability Buy Signals by François Picard, MS, & Edmond Miresco, PhD

It’s rare but possible to generate profits with 97.5% probability of success. We can achieve this by adapting some industrial engineering tools, like Six Sigma, to the field of technical analysis. Here, we look at one approach you can use to take advantage of these profitable occasions.

One of the many interesting aspects of technical analysis is the ability to apply mathematical tools and techniques from other disciplines to investing. In this article, we propose an innovative avenue based on industrial engineering tools to predict stock market movements and make investment decisions. We use the Six Sigma methodology, a technique used mainly in manufacturing environments, to determine if a given process is (or isn’t) statistically in control, according to some specific patterns ...