Engineering Alpha

Engineering Alpha

The Directional Probability Index — Estimating the Direction of the Market.

Creating a Simple Measure that Shows the Next Likely Direction.

Sofien Kaabar, CFA's avatar
Sofien Kaabar, CFA
Nov 20, 2021
∙ Paid

This article discusses a simple indicator used to detect the current regime and to give contrarian signals. It is important to understand how to use indicators and how they are calculated in order to tweak them and know their limitations.

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