Technical Signal Discovery

Most technical analysis is astrology for traders. But buried in the noise, there are signals that demonstrate consistent expected value — not for individual stocks, but across peer groups of related companies.

After running 80 indicators across 5 peer groups with walk-forward out-of-sample validation, three patterns emerged: momentum signals survive for cyclical sectors, mean reversion signals work for stable cash-flow businesses, and volume signals are universally unreliable as standalone predictors.