Richard Adcock: ‘When overbought or oversold signals continuation’

The STA is very lucky in that its pool of talent is deep and its contacts list extensive. Because February’s speaker unfortunately had to pull out at short notice (Kevin Bull will instead speak on the 14th May), Richard Adcock, STA Company Secretary and member of the journal committee, gamely stepped in. His day job is as Managing Director for Adcock Analysis which offers independent analysis specialising in foreign exchange and interest rates. Maybe I misheard, but I think our chairman Tom Hicks made a Freudian slip and introduced him as Richard Adhoc!

Starting his career at Investment Research of Cambridge he, like the legendary Ellie Gifford, tried to find ways around the limitations of the relative strength index in trending markets. She coined the term ‘the pressure index’ while Richard has been working with a combination of momentum, trending and sentiment – which he believes ‘are the three most important things in markets’.

His key tool is a candlestick chart with the RSI plotted under it and, under that, the Moving Average Convergence Divergence (MACD) oscillator. To decide whether to give the RSI some leeway, he looks to see which of four variants are on the chart: whether the MACD’s moving average is above or below the zero line and whether its signal line (the 9-day exponential moving average of the MACD itself) is above or below the longer moving average. Simple, but very effective.

He also explained how, for the many foreign currency pairs he looks at, he favours a scorecard measuring those in the strongest uptrend to those with the strongest downtrend, and lists the neutrals in between these two. He works with a number of indicators and the results have a maximum rating of +18 or -18.

He offered a two-week free trial to STA members who can view his website www.adcockanalysis.com

The video of his presentation – in the plush and very comfy auditorium at One Moorgate Place – will be available to members, shortly.

 

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Posted in Finance, Markets, STA charts, STA news, Technical Analysis, Technical Analysis Courses, Technical Analysis Training, Trading, Trending
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The views and opinions expressed on the STA’s blog do not necessarily represent those of the Society of Technical Analysts (the “STA”), or of any officer, director or member of the STA.

The STA makes no representations as to the accuracy, completeness, or reliability of any information on the blog or found by following any link on blog, and none of the STA, STA Administrative Services or any current or past executive board members are liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use.

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About Nicole Elliott

Nicole Elliott

A graduate of the London School of Economics and Political Science (BSc Social Psychology) Nicole Elliott has worked in banks in the City of London for the last 30 years. Whether in sales, trading or forecasting technical analysis has always been the bedrock of her thinking. Key expertise lies within all areas of treasury: foreign exchange, money markets, fixed income and commodities.

She has also added to the body of knowledge of the industry writing the first western book on Ichimoku Cloud Charts. Strong media links and a cult following are due to her prescient calls on the markets and often entertaining format.

Nicole can be contacted at trending@sta-uk.org

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