{"title":"Favorite Articles from 2007","description":"Each year we survey our readers for our Readers' Choice Awards, which are published in the annual Bonus Issue. As part of the survey, we ask readers to vote for their favorite article from the past year. Here are the award winners for \"Favorite STOCKS \u0026amp; COMMODITIES Article\" from 2007:","products":[{"product_id":"stcov254dors","title":"Stocks \u0026 Commodities V. 25:11 (48-52): Does The RSI Give You An Edge? by Larry Connors \u0026 Ashton Dorkins","description":"Does The RSI Give You An Edge? by Larry Connors \u0026amp; Ashton Dorkins\u003cbr\u003e\u003cbr\u003eThe relative strength index has been heavily used since its\ncreation, but does it work for you?\u003cbr\u003e\u003cbr\u003eThe relative strength index (RSI) is one of the most\npopular tools used by traders. As such, there are\nmany books and articles written showing how to\nuse RSI. Unfortunately, most of the published\nmaterial doesnt show any statistical evidence to support the indicators performance. This is surprising, considering\nhow popular the RSI is and how many traders rely\nupon it. Before using any indicator, it is important to test if the\nindicator actually works in other words, does using a\nparticular indicator give you an edge versus a benchmark,\nlike an index or the average performance of all stocks?\u003cbr\u003e\u003cbr\u003eOur statistical studies helped determine that RSI is indeed\none of the best indicators available when used correctly.\nMost traders use the 14-period RSI, but our studies have shown\nthat statistically, there is no edge going out that far. However,\nwhen you shorten the time frame, you start seeing some very impressive results. Research shows that the most robust and\nconsistent results are obtained by using a two-period RSI, and\nover the years, we have built successful trading strategies and\nsystems that incorporate the two-period RSI.\u003cbr\u003e\u003cbr\u003eThis article is going to teach you a very simple, yet\neffective, quantified trading strategy using the two-period\nRSI. Before getting into the actual strategy, heres some\nbackground on the RSI and how to calculate it.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133966545265,"sku":"\\V25\\C11\\214CONN.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_f25112a6-7d8b-4284-a7c9-02c627b86dd6.jpg?v=1739659236"},{"product_id":"stcov251casp","title":"Stocks \u0026 Commodities V. 25:5 (18-26): Calendar Sprerads With Dan Sheridan by John A. Sarkett","description":"Stocks \u0026amp; Commodities V. 25:5 (18-26): Calendar Sprerads With Dan Sheridan by John A. Sarkett\u003cbr\u003e\u003cbr\u003eIn the first part of a series based on a seminar on option strategies with Dan Sheridan, we take a look at calendar spreads.\u003cbr\u003e\u003cbr\u003eOptions and seminars go together like yin and yang, baseball and hot dogs, Abbott and Costello. Cant separate em, wouldnt want to. Ten or more years ago, some of the prominent seminars focused on straightforward strategies like put selling or vertical spreads. In a surging NASDAQ market, these one-day affairs served their purpose in helping retail stock traders become more knowledgeable and comfortable\nwith options.\u003cbr\u003e\u003cbr\u003eThen after the 200001 stock market crash and with the equity markets in the doldrums came delta-neutral\nstrategies, making money in options when stocks werent moving timely and helpful. You might have seen infomercials for these wealth creation\nseminars.\u003cbr\u003e\u003cbr\u003eBut not all the attendees were successful, nor even\nthe gurus themselves. One notable expert expanded\nfrom giving seminars to managing an option trading\nfund. The fund lost 40% in six months before closing.\nThere are and have been many, many other seminars\nand countless newsletters, and weve all been invited\nby direct mail to attend or subscribe. Or both. Some of us have, or at least been tempted.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133977948529,"sku":"\\V25\\C05\\089SARK.pdf","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_a0f95287-c63b-4a80-b102-04fa775b5f78.jpg?v=1739660054"},{"product_id":"stcov251fofo1","title":"Stocks \u0026 Commodities V. 25:3 (14-20): Forex Focus: Spotting Trend Reversals by Cornelius Luca","description":"Stocks \u0026amp; Commodities V. 25:3 (14-20): Forex Focus: Spotting Trend Reversals by Cornelius Luca\u003cbr\u003e\u003cbr\u003eAccess to foreign exchange trading has opened up exciting trading options for the retail trader. You can now trade alongside corporations and institutions in a highly liquid market that is global, traded around the clock, and highly leveraged. Before jumping into this market, however, we must understand the factors that affect the forex market. With that in mind, STOCKS \u0026amp; COMMODITIES has introduced Forex Focus to better prepare the retail trader to participate in the currency market.\u003cbr\u003e\u003cbr\u003eWe strive to identify a trend, stay with it, and take as\nmuch profit from it as we can. Giving up on a trend, or even a lesser upmove or downmove, is not easy but is often necessary. To help you part with a trend that\nshould be abandoned, here are several methods to identify if the end of the trend is approaching.\u003cbr\u003e\u003cbr\u003eTRENDLINES\u003cbr\u003e\u003cbr\u003eFigure 1 shows a clear uptrend, a sideways area, a downtrend, and finally a recovery in the euro\/dollar. The uptrend was lengthy but the first part was choppy,\nwhich likely made it difficult to hold long positions. However, daytraders probably profited from that rough period if they were able to weave their way through the market without holding positions for too long. Trendlines can be drawn to bring some order to this market. Figure 2 shows two rising trendlines, which highlight the different acceleration rates in the uptrend. The steep uptrend had only one failure during its climb, but since it was on an intraday basis, it was not technically relevant. It wasnt until the second day after the euro\/dollar posted its first top that the market closed below the support of the rising trendline, signaling the end of the uptrend.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133992890737,"sku":"\\F25\\C03\\046FORX.pdf","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_87f3eefb-4465-471e-a2c4-bfec7e7cae98.jpg?v=1739661039"},{"product_id":"stcov252shvo","title":"Stocks \u0026 Commodities V. 25:11 (20-26): Short-Term Volume And Price Oscillator by Sylvain Vervoort","description":"Short-Term Volume And Price Oscillator by Sylvain Vervoort\u003cbr\u003e\u003cbr\u003eUsing the turning points in the oscillator gives profitable\ntrades. Come look.\u003cbr\u003e\u003cbr\u003eBefore telling you about the construction and application\nof the short-term volume and price oscillator\n(SVAPO) I am using, lets talk about some basics\nusing an indicator as a buy \u0026amp; sell trigger. The indicator must have clear reversal points and be as fast as\npossible on the entry side. The faster you can get in at a price\nreversal, the tighter your initial stop-loss can be. This will save\nyou a lot of money on those trades that move the wrong way.\nA trailing stop-loss, which is a stop-loss order that follows the\nprevailing price trend, is best set in relation to your investment\nhorizon. Are you a swing trader trying to catch all the shorter\nprofitable price moves, or a medium- to long-term trader trying\nto stay in the trade to capture the extended bigger price moves?\u003cbr\u003e\u003cbr\u003eOSCILLATOR AND PRICE RELATION\u003cbr\u003e\u003cbr\u003eThere is no ideal indicator, which is why you have to protect\nyour investment with a stop order. Using an oscillator as the\nonly reference to enter or exit a trade is not a good idea. The\noscillator should instead be used as an alert for having a closer\nlook at the chart and only then making a decision, taking into\nconsideration all possible technical analysis tools.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52134014583153,"sku":"\\V25\\C11\\209VERV.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_f99a1544-676b-4cd3-bef2-3ffe8c28c92d.jpg?v=1739662436"},{"product_id":"stcov256tuin","title":"Stocks \u0026 Commodities V. 25:2 (64-67): Tuning Intraday Strategies by Lee Leibfarth","description":"Stocks \u0026amp; Commodities V. 25:2 (64-67): Tuning Intraday Strategies by Lee Leibfarth\u003cbr\u003e\u003cbr\u003eDeveloping a daytrading strategy that is consistent across all markets is impossible. But here are some things to keep in mind when assessing your daytrading strategy.\u003cbr\u003e\u003cbr\u003eThe growing availability of trading platforms that can\nbuild, backtest, and automate intraday trading\nstrategies is allowing more and more traders to develop and test their own unique daytrading ideas. Constructing a rulebased daytrading system using historical data can help traders develop sound,\nstatistical logic and create a higher level of confidence in their strategies.\u003cbr\u003e\u003cbr\u003eWhile most traders are familiar with the reminder that past performance is not indicative of future results, there is an amazing amount of confidence that can be generated from positive past results. That said, correlating the results of historical testing versus real trading for the same system is as important as the trading logic itself. Unfortunately, this aspect of system development is often overlooked as many traders look\nfor incredible historical results instead of tuning their systems to actually fit their intended markets. This article will discuss some ideas for getting better\ncorrelation between system testing and actual market trading.\u003cbr\u003e\u003cbr\u003eDeveloping daytrading strategies often requires a unique approach to the markets that may be contrary to popular conventions in trading system development. Daytrading strategies are often specific to their intended markets and are not necessarily profitable across an entire portfolio. A system designed for the e-mini Russell 2000 does not need to show a similar expectancy on the QQQQs (or rice, crude oil, or Treasury bonds, for that matter). These markets trade at much different volumes and with much different volatility. Developing a daytrading strategy that works on everything is almost impossible and can greatly compromise the profitability of the target market.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52134014648689,"sku":"\\V25\\C02\\035LIEB.pdf","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_1c643f9b-2251-49c2-b528-e657d4642ec3.jpg?v=1739662441"},{"product_id":"stcov252anmo","title":"Stocks \u0026 Commodities V. 25:2 (20-26): Anticipating Moving Average Crossovers by Dimitris Tsokakis","description":"Stocks \u0026amp; Commodities V. 25:2 (20-26): Anticipating Moving Average Crossovers by Dimitris Tsokakis\u003cbr\u003e\u003cbr\u003eAlthough simple moving averages may be a technical\nanalysts best friend, they do tend to lag. Heres how you can overcome this problem.\u003cbr\u003e\u003cbr\u003eMoving averages are excellent indicators to confirm existing trends in spite of their lag. To overcome this lag, several alternatives such as the exponential moving average (EMA) and the weighted moving average (WMA) have been applied to price charts. In this article, I will not tweak the simple moving average (SMA). Instead, I will decrease the lag of the SMA crossover by one day by basing it on a simple mathematical observation.\u003cbr\u003e\u003cbr\u003eSIMPLE MOVING AVERAGE CROSSOVER\u003cbr\u003e\u003cbr\u003eFirst, I would like to show you an arithmetic example. A five-day simple moving average (MA5) is the average of the last five closing values:\u003cbr\u003e\u003cbr\u003eMA5 = (C + C-1 + C-2 + C-3 + C-4)\/5 = C\/5 + (C-1 + C-2 + C-3 + C-4)\/5\n[A1]\u003cbr\u003e\u003cbr\u003eIn a similar fashion, a four-day SMA is:\u003cbr\u003e\u003cbr\u003eMA4 = (C + C-1 + C-2 + C-3)\/4\u003cbr\u003e\u003cbr\u003eIts previous value is:\u003cbr\u003e\u003cbr\u003eMA4-1= (C-1 + C 2 + C 3 + C 4)\/4\u003cbr\u003e\u003cbr\u003eor 4*MA4-1= C-1 + C 2 + C 3 + C 4\u003cbr\u003e\u003cbr\u003eor 4* MA4-1\/5=( C-1+C 2+C 3+C 4)\/5\u003cbr\u003e\u003cbr\u003eIf you replace (C-1 + C-2 + C-3 + C-4)\/5 in [A1] you get:\u003cbr\u003e\u003cbr\u003eMA5 = C\/5 +4*MA4-1\/5\nor\nMA5=(C+4*MA4-1)\/5 [A2]","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52134082543985,"sku":"\\V25\\C02\\023TSOK.pdf","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_9c677f49-f022-4d7e-84bf-0ac708b58cb0.jpg?v=1739665205"},{"product_id":"stcov251trsy","title":"Stocks \u0026 Commodities V. 25:1 (16-22): Trading Systems Defined by Martha Stokes","description":"Stocks \u0026amp; Commodities V. 25:1 (16-22): Trading Systems Defined by Martha Stokes\u003cbr\u003e\u003cbr\u003eWhat is your trading style? Heres an overview of different types of trading systems that can be applied to different markets.\u003cbr\u003e\u003cbr\u003eTo succeed as a trader, you must understand how the market works. This begins with a foundation of core market knowledge, as can be seen in Figure 1. The next level is trading styles, followed by trading systems, and then, at the top, the implementation of trading strategies.\u003cbr\u003e\u003cbr\u003eOne of the least-understood aspects of this formation is the trading systems level, second from the top. Without a thorough understanding of trading systems and the strategies designed for each kind of system, your trading efforts may yield disappointing results. (See Figure 2.)\u003cbr\u003e\u003cbr\u003eNo matter how you trade the market, you are using a\ntrading system. A trading system is not a strategy, a software program, or an entry signal. It is a set of rules and parameters developed around a formula of indicators and price action for a specific type of market condition. Often a trader will complain that a strategy doesnt work. They struggle with meager results that entice them to continue trying but seldom pay the bills. These traders go from seminar to seminar hoping to find the perfect strategy. But its not the strategy thats the problem. Its the market condition under which the strategy is being applied that is not right. You must find the right strategy for the right market. Strategies work best when applied to the market conditions for which they were designed. But before you can choose a strategy for the current conditions, you must understand what a trading system is and which system works under what condition.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52134162792817,"sku":"\\V25\\C01\\003STOK.pdf","price":4.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_1f8ea82e-1c99-46f1-a388-fe85f3a3bd08.jpg?v=1739669674"},{"product_id":"stcov252fotr","title":"Stocks \u0026 Commodities V. 25:1 (24-34): Fourier Transform For Traders by John F. Ehlers","description":"Stocks \u0026amp; Commodities V. 25:1 (24-34): Fourier Transform For Traders by John F. Ehlers\u003cbr\u003e\u003cbr\u003eWhen market conditions are variable, adapting to them becomes a challenge. Heres how you can use a dominant cycle to tune the relevant indicators so you dont have to drive through the fog.\u003cbr\u003e\u003cbr\u003eIt is intrinsically wrong to use a 14-bar relative strength index (RSI), a nine-bar stochastic, a 5\/25 double moving average crossover, or any other fixed-length\nindicator when the market conditions are variable. Its like driving on a curving mountain road in a fog bank with your cruise control locked and youve desperately got to clean your eyeglasses.\u003cbr\u003e\u003cbr\u003eThat market conditions are continuously changing is not even a subject of debate. There have been a number of attempts to adapt to changing market conditions. Volatility-based nonlinear moving averages are just one example of adapting to market changes.\nAs I come from an information theory background, my answer to the question of how to adapt to changing conditions is to first measure the dominant market cycle and then tune the various indicators to that cycle\nperiod, or at least a fraction of it. Theoretically, an RSI\nperforms best when the computation period is just half\nof a cycle period that is, when all the movement is\nin one direction and then reverses so all the movement\nis in the other direction over the period of one cycle \nand you get a full amplitude swing from the RSI.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52134173016433,"sku":"\\V25\\C01\\005EHL.pdf","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_e2e783c0-3385-4719-ae64-d12dd19fc020.jpg?v=1739670124"}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/collections\/favorite-articles-from-2013-21_7d8b5c78-73f3-4ff5-b88a-29efb9b3ed7b.gif?v=1790892831","url":"https:\/\/shop.traders.com\/collections\/faarfr201.oembed","provider":"Stocks \u0026 Commodities","version":"1.0","type":"link"}