{"title":"Favorite Articles From 2013","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 2013:","products":[{"product_id":"stcov311inru","title":"Stocks \u0026 Commodities V. 31:5 (14-20): Indicator Rules For Swing Trading Strategies, Part 1 by Sylvain Vervoort","description":"Indicator Rules For Swing Trading Strategies, Part 1 by Sylvain Vervoort\u003cbr\u003e\u003cbr\u003eOne Step At A Time\u003cbr\u003e\u003cbr\u003eIn todays volatile markets, making money consistently\nis a challenge. You need a good strategy with\nreliable trading rules. This seven-part series will\ndiscuss such a strategy and its trading rules. In this,\nthe first part, an overview is presented.\u003cbr\u003e\u003cbr\u003eToo many people believe that if they could\njust get their hands on some secret trading\nrules, making money in the stock market will\nbe easy. You cant blame them: They want to be like\nthat trader who effortlessly made more than 100 pips a\nday using a fully automated forex trading system. On\nthe other extreme, there are people who say that if you\nwant to be a successful trader, you have to spend long\nhours studying and analyzing the markets.\u003cbr\u003e\u003cbr\u003eWhich side should\nyou be on?\u003cbr\u003e\u003cbr\u003eIf you want to be successful\nin anything, you need to\nwork hard. But your time\nand effort should be well\nspent. For example, if you\nspend your time studying\nfundamentals, it will likely\nmake you money in the long\nterm, in a sustained up or\ndown market. But in volatile\nmarkets, you may not make\nmoney consistently. This\nmay tempt you to turn to an\nautomated trading system,\nbut think about this: Would\nyou sell a system that consistently\ngenerated, say, $5,000\nprofit each month?\u003cbr\u003e\u003cbr\u003eBefore you can make any money, you need a trading\nstrategy with reliable trading rules that has been\nshown to make money in backward and forward testing\nusing historical data. To do that, you need to learn\nthe basics that is, technical analysis, money \u0026amp; risk\nmanagement, and trading knowledge and you need\nto gain experience.\u003cbr\u003e\u003cbr\u003eI am going to put you on the right track with my\nindicator rules for a swing trading strategy (IRSTS). It\nwill take a series of articles to demonstrate and explain\nthe strategy. I will also introduce some new indicators\nthat I use in my trading. Lets start with an overview\nof the IRSTS strategy.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133926502769,"sku":"V31C05_542VERV","price":4.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_ce554997-0ac0-4bd7-8b18-9fc9e7a64bda.jpg?v=1739657710"},{"product_id":"stcov313ossm","title":"Stocks \u0026 Commodities V. 31:9 (38-43): Oscillators, Smoothed by Sylvain Vervoort","description":"Oscillators, Smoothed by Sylvain Vervoort\u003cbr\u003e\u003cbr\u003eThe Best Of Both Worlds\u003cbr\u003e\u003cbr\u003eIn this fifth part of our article series on indicator rules for a\nswing trading strategy (IRSTS), we will introduce an oscillator\nbased on Percent B.\u003cbr\u003e\u003cbr\u003eYoure probably familiar with the Percent b (%b, or PB) oscillator\nthat was developed by John Bollinger its derived\nfrom the Bollinger Bands indicator. Heres how it works:\u003cbr\u003e\u003cbr\u003eWhen the price touches the upper Bollinger Band, then the\noscillator hits 100. If price moves above the upper band, the oscillator\nmoves to +100. When the price touches the lower Bollinger\nBand, then the oscillator hits zero, and if price moves below the\nlower band, the oscillator moves to a negative value.\u003cbr\u003e\u003cbr\u003eHeres how its calculated:\u003cbr\u003e\u003cbr\u003ePercent b = (Closing price Lower band) \/\n(Upper band Lower band) * 100\u003cbr\u003e\u003cbr\u003eBasic calculation\u003cbr\u003e\u003cbr\u003eWhen I created my zero-lag oscillator (SVEZLRBPercB),\nwhich is based on the Percent b, I used the same basic formula\nas the Percent b. However, before applying the formula, I manipulated the input data I used.\u003cbr\u003e\u003cbr\u003eIn a July 1997 Stocks \u0026amp; Commodities article, Mel Widner\nintroduced rainbow charts, which is the technique I used to\nconvert the closing price data to a rainbow data series and\ngive some extra weight for the less-smoothed data:\u003cbr\u003e\u003cbr\u003erainbow_value =\n(5 * SMA(2)[0] +\n4 * SMA(SMA(2), 2)[0] +\n3 * SMA(SMA(SMA(2), 2), 2)[0] +\n2 * SMA(SMA(SMA(SMA(2), 2), 2), 2)[0] +\nSMA(SMA(SMA(SMA(SMA(2), 2), 2), 2), 2)[0] +\nSMA(SMA(SMA(SMA(SMA(SMA(2), 2), 2), 2), 2), 2)[0] +\nSMA(SMA(SMA(SMA(SMA(SMA(SMA(2), 2), 2), 2), 2), 2), 2)[0] +\nSMA(SMA(SMA(SMA(SMA(SMA(SMA(SMA(2), 2), 2), 2), 2),\n2), 2), 2)[0] +\nSMA(SMA(SMA(SMA(SMA(SMA(S\nMA(SMA(SMA(2), 2), 2), 2), 2), 2),\n2), 2), 2)[0] +\nSMA(SMA(SMA(SMA(SMA(SMA(SM\nA(SMA(SMA(SMA(2), 2), 2), 2), 2),\n2), 2), 2), 2), 2)[0]) \/ 20;\u003cbr\u003e\u003cbr\u003erainbow.Set(rainbow_value);\u003cbr\u003e\u003cbr\u003eNext, I averaged this new rainbow data series with an\nexponential moving average (EMA) by applying a zero-lag method. The idea of smoothing data\nwith less lag and zero-lag techniques\nwas proposed by Patrick Mulloy in\nthe February 1994 issue of Stocks\n\u0026amp; Commodities and by John Ehlers\nin the March 2000 issue. The\ntechnique compensates for the lag\nin moving averages.\u003cbr\u003e\u003cbr\u003eHeres how I created the new data\nseries ZLRB (zero-lag rainbow):\u003cbr\u003e\u003cbr\u003eEMA1.Set(EMA(rainbow, smooth)[0]);\u003cbr\u003e\u003cbr\u003eEMA2.Set(EMA(EMA1, smooth)[0]);\u003cbr\u003e\u003cbr\u003ediff = EMA1[0] - EMA2[0];\u003cbr\u003e\u003cbr\u003eZLRB.Set(EMA1[0] + diff);\u003cbr\u003e\u003cbr\u003eFinally, I calculate and plot the\nmodified Percent b formula, but only\nafter applying another smoothing\nstep using triple exponential moving\naverages (TEMA) and weighted\nmoving averages on the zero-lag\nZLRB data series:","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133937316209,"sku":"V31C09_616VERV","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_436a53e0-bba5-4124-a65b-62e3ef19de20.jpg?v=1739658296"},{"product_id":"stcov315exyo","title":"Stocks \u0026 Commodities V. 31:1 (53): Explore Your Options by Price Headley","description":"Explore Your Options by Price Headley\u003cbr\u003e\u003cbr\u003eSTRADDLES AND THE SPX\u003cbr\u003e\u003cbr\u003eWill the straddle work with index options\nlike SPX? Id given up on individual\nstocks and have been trading SPX options\nexclusively. Except for the price\nof the premiums, it seems to make little\ndifference in volatility if I buy the SPX\noptions in- or out-of-the-money (OTM),\nso I buy them OTM for the cheaper\npremiums. I remember reading about\nstraddles and spreads, and correct me\nif Im wrong but the behavior of options\non individual stocks seems to depend on\nwhether they are in or out of the money,\nand I thought that was the key to straddle\/\nspread strategies. Am I correct in thinking\nthese strategies wont work for index\noptions? Are there similar strategies that\ncan be employed that work to hedge risk\nand make money both ways with index\noptions like for SPX?\u003cbr\u003e\u003cbr\u003eFirst, heres how a straddle works. Say\nXYZ shares are trading at 50 and you\nexpect the stock to be volatile, up to the\n60 area of higher or down to 40 or lower\nover the next several months. The only\nissue is you dont know which way its\ngoing to move first. The straddle purchase\nis an option strategy, which can get you\non board the start of a big move.\u003cbr\u003e\u003cbr\u003eBy purchasing the six-month XYZ\n50 call and simultaneously buying the\nsix-month XYZ 50 put, we now have\na position that can benefit as long as\nXYZ shares are even more volatile\nthan expected. When you buy the same\nstrike price on both sides, its known as\na straddle. If the strike prices are different,\nits called a strangle. The key to\nsuccess in buying straddles is what you\npay for the call and put option relative\nto the volatility, which is implied or\nexpected to occur. There are factors to\nconsider in getting the cheapest straddles, which can offer the greatest leverage in\na potentially volatile move:","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133975458161,"sku":"V31C01_470EYO","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_43808b4e-2c4e-499e-8811-a33c891bcdc8.jpg?v=1739659872"},{"product_id":"stcov311tchp","title":"Stocks \u0026 Commodities V. 31:5 (10-13): ‘Trendy' Chart Patterns by Thomas Bulkowski","description":"Trendy Chart Patterns by Thomas Bulkowski\u003cbr\u003e\u003cbr\u003eMay The Best Pattern Win\u003cbr\u003e\u003cbr\u003eWhich chart patterns precede a strong breakout move?\nFind out here.\u003cbr\u003e\u003cbr\u003eI never associate chart patterns with being trendy, but when\nI received an email asking me which chart patterns are\ntrendiest, I had to think twice.\u003cbr\u003e\u003cbr\u003eWhat is a trendy chart pattern?\u003cbr\u003e\u003cbr\u003eA chart pattern is trendy if price forms the first minor high\nor low well after a breakout. In other words, if price changes from moving sideways (consolidating in the chart pattern)\nto moving up or down (after the breakout), then a new trend\nhas begun. The chart pattern with the highest percentage gain\n(upward breakout) or loss (downward breakout) to the first\nminor high or low, respectively, after the breakout, becomes\nthe trendiest; it leads to the strongest trends.\u003cbr\u003e\u003cbr\u003eTo determine which pattern is the trendiest, you need only\nmeasure from the breakout of a chart pattern to the first minor\nhigh or low, sort the results, and you will have a list of the\ntrendiest chart patterns. Those chart patterns showing the\nhighest percentage runs to the first minor high or low are the\ntrendiest.\u003cbr\u003e\u003cbr\u003eFor downward breakouts, I used the same database\nand a similar technique to find the first minor low\nafter the breakout from a chart pattern. The table\nin Figure 4 shows the results for the top 10 chart\npatterns with downward breakouts. The head \u0026amp;\nshoulders top, another popular chart pattern, did\nnot make the top 10. It ranked 22 out of 35.\u003cbr\u003e\u003cbr\u003eNotice that diamond bottoms and big W patterns\ndo not have large sample counts. Big Ws are double\nbottoms with tall sides. Instead of price continuing\nto rise, it reverses and drops below the bottom of\nthe pattern, staging a downward breakout. When\nthat happened in the 92 patterns tested, there was a\nstrong down move.\u003cbr\u003e\u003cbr\u003eIf you test using three and 10 days, it will change\nthe order of the chart patterns to some degree (for\nupward breakouts, for example, the top three remain\nthe same; for downward breakouts, only diamond\nbottoms remain first). Separating the chart patterns\ninto bull and bear markets, using other definitions\nfor minor highs or lows, or adding more samples\nwill likely change the order, too.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133976899953,"sku":"V31C05_541BULK","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_d2723f9c-070d-48fa-a7b3-feaa42b85f26.jpg?v=1739659977"},{"product_id":"stcov314niby","title":"Stocks \u0026 Commodities V. 31:5 (46-49): NinjaTrader by Technical Analysis, Inc.","description":"NinjaTrader by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eNINJATRADER, LLC\u003cbr\u003e\u003cbr\u003e1236 Clarkson Street, Denver, CO 80218\u003cbr\u003e\u003cbr\u003eEmail: support@ninjatrader.com\u003cbr\u003e\u003cbr\u003eInternet: www.ninjatrader.com\u003cbr\u003e\u003cbr\u003eFax: 801 806-2591\u003cbr\u003e\u003cbr\u003ePrice: $995 for lifetime license;\n$50\/month lease; free version with\nstandard features\u003cbr\u003e\u003cbr\u003eProduct: Trading and analysis software\u003cbr\u003e\u003cbr\u003eSystem requirements: Windows XP\n(SP3 required)\/2003\/Vista\/7 or 8; minimum\nscreen resolution of 1024x768;\nminimum P4 processor or higher; 2GB\nRAM; Microsoft .NET Framework 3.5\n(preinstalled on most PCs or can be\ndownloaded)\u003cbr\u003e\u003cbr\u003eA full-featured trading platform\nthats free: Thats the reason behind\nthe success of NinjaTrader.\nNinjaTrader (NT) was started in 2003\nwith a handful of people and now has\n40 employees. Since the program is\nfree, it attracts a lot of users, and as\na consequence, also attracts a large\nnumber of third-party product vendors.\nHow does NT make its money? It does\nso predominantly by selling the lifetime\nlicense version and monthly subscription\nlicenses. The difference between the\nlifetime version and the free one is that\nthe lifetime version lets you trade directly\nwith your broker using a NinjaTrader\ninterface. If you get a free version of the\nprogram from your broker, it is likely to\nbe missing the ATM (Advanced Trade\nManagement) feature; thus, not all free\nversions of it are the same.\u003cbr\u003e\u003cbr\u003eWhat type of trader would be willing\nto pay $995 to have a brokerage interface\nbuilt into the software? He or she will\nlikely be a daytrader. Otherwise, a trader\nwho holds positions for two or more\ndays can easily place orders through a\nseparate brokerage interface.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133980701041,"sku":"V31C05_546PRNINJA","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_ff1a3ecb-8b15-41b5-8923-61b179248fb7.jpg?v=1739660240"},{"product_id":"stcov316trti","title":"Stocks \u0026 Commodities V. 31:1 (65-73): Traders' Tips by Technical Analysis Inc.","description":"Traders Tips by Technical Analysis Inc.\u003cbr\u003e\u003cbr\u003eFor this months Traders Tips, the focus is\nBarbara Stars article in this issue, The DMI\nStochastic. Here we present the January\n2013 Traders Tips code.\u003cbr\u003e\u003cbr\u003eCode for eSignal is already provided in\nStars article by the author. Subscribers will\nfind that code at the Subscriber Area of our\nwebsite, www.Traders.com. (Click on Article\nCode from our homepage.) Presented here is an overview\nof possible implementations for other software.\u003cbr\u003e\u003cbr\u003eTraders Tips are provided to help the reader implement\na selected technique from an article in this issue.\nThe entries are contributed by various software developers\nor programmers for software that is capable of customization.\u003cbr\u003e\u003cbr\u003eReaders will find the January 2013 Traders Tips code\nat our website, Traders.com. Here, you can read some\ndiscussion of the techniques implementation by the Traders\nTips contributors as well as some example charts.\u003cbr\u003e\u003cbr\u003eTo locate Traders Tips at our website, use our sites\nsearch engine, or click on the Traders Tips link from our\nhome page. For past Traders Tips, go to http:\/\/traders.\ncom\/index.php\/sac-magazine\/departments\/traders-tips\nor click on the Complete Archive button from Traders.com\nfor past articles and Traders Tips in PDF format.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133985583473,"sku":"V31C01_474TIPS","price":4.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_10e8d807-e4d9-42d6-bc87-774b3682104c.jpg?v=1739660535"},{"product_id":"stcov314swtr","title":"Stocks \u0026 Commodities V. 31:12 (41-43): Swing Trading With Three Indicators by Donald Pendergast","description":"Swing Trading With Three Indicators by Donald Pendergast\u003cbr\u003e\u003cbr\u003eThree, Two, One ... Liftoff!\u003cbr\u003e\u003cbr\u003eYouve heard it time and time again: You need to have a trading plan. But how do\nyou create one? You have to start somewhere, and heres one system that can lift\nyou into the world of system traders.\u003cbr\u003e\u003cbr\u003eThousands of trading systems are available in the marketplace today; some are relatively\ninexpensive to buy or lease, while others cost several thousand dollars or more.\nThese systems can be based on volatility breakouts, moving average crossovers,\nneural networks, genetic optimization, oscillators, and linear regression. But no matter how plain or fancy the trading\nlogic is for a system, all that matters\nare your answers to the following two\nquestions:\u003cbr\u003e\u003cbr\u003e1. Is the systems logic based on an\nobservable (with my own eyes\nand a price chart) market dynamic\nthat repeats again and again?\u003cbr\u003e\u003cbr\u003e2. Will I be comfortable trading\nthis system in the markets with\nreal money on the line?\u003cbr\u003e\u003cbr\u003eIf you can honestly answer yes to\nthe first two questions, you might also\nwant to ask yourself a third question,\nwhich is:\u003cbr\u003e\u003cbr\u003e3. Based on the systems cost and\nongoing maintenance fees (upgrade\nfees, data fees, training, and\nso on), is it cost effective for my\ntrading account size, commission\ncosts, and markets traded?\u003cbr\u003e\u003cbr\u003eIf you answered all three questions\nhonestly, you can learn to become a\nconsistently profitable trader, even if\nyou use a simple system that you can\ncreate yourself using standard indicators\nfound in virtually every popular\ntrading\/charting platform (and your\nown eyes).\u003cbr\u003e\u003cbr\u003eA simple and visual system\u003cbr\u003e\u003cbr\u003eHeres a look at my simple, visually\nbased trading with the trend system\nthat is nonoptimized, noncurve-fitted,\nand is a no-brainer to construct and\nmaintain. The key ingredient for success\nin trading with this template is\nyou, because there are no secret market\nindicators or forecasting tools that can\nguarantee you trading success. But\nthis no-cost trading template that is\neasy to construct will help you stay on\ntrack with the mental and emotional\ndiscipline needed to learn to trade\nprofitably. After that, you may want\nto further fine-tune it by obtaining\neducation in other market dynamics\nlike relative strength analysis,\nmoney management techniques, price\ncycle studies, or wave analysis. (The\nStocks \u0026amp; Commodities article archive\nhas many articles on these and\nother topics.)","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52134008750449,"sku":"V31C12_668PEND","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_2e3653b9-eaf2-4901-81ab-6e4a467d1d57.jpg?v=1739662008"},{"product_id":"stcov313dmis","title":"Stocks \u0026 Commodities V. 31:1 (32-38): The DMI Stochastic by Barbara Star","description":"Getting Into The Game\u003cbr\u003e\u003cbr\u003eThe DMI Stochastic by Barbara Star\u003cbr\u003e\u003cbr\u003eWhen a trend has already begun, does that mean its too\nlate to get in? Not necessarily. This trading technique can\nhelp you get into a trend so you dont have to miss trading\nopportunities.\u003cbr\u003e\u003cbr\u003eComputer charting software that allows traders to create\ntheir own custom studies and formulas opens the\ndoor to a world of experimentation that could lead\nto the development of a new trading indicator. But it\nisnt always necessary to go to those lengths in order\nto find useful trading tools. Sometimes simply combining\nthe components of one well-known indicator with another is enough to create a type of synergy that can\nenhance trading.\u003cbr\u003e\u003cbr\u003eFor several years, one of my templates for short-term trading\nhas included something I call the DMI stochastic, which I\nuse mainly to identify potential entries into an existing trend.\nThe template consists of a trend-identifying oscillator based\non indicators from J. Welles Wilders directional movement\nindex (DMI) and also a momentum indicator derived from\nthat oscillator. Together, they offer two indicators that capture\nthree powerful technical analysis basics: trend, momentum,\nand support\/resistance. While not as reliable for intraday\ntrading, they work well in 60-minute, end-of-day (EOD),\nand weekly time frames. This article shows how to create\nand apply these indicators using EOD charts.\u003cbr\u003e\u003cbr\u003eDMI oscillator\u003cbr\u003e\u003cbr\u003eWithin the suite of indicators that make up Wilders directional\nmovement index (DMI) are the plus directional movement\nindicator (+DI) and the minus directional movement indicator\n(‑DI). They provide the foundation for the more widely recognized\naverage directional index (ADX). Whereas the ADX\noffers information about the strength of price movement but\nnot its direction, the +DI and ‑DI furnish information about\nthe positive or negative direction of price movement over a\nperiod of time.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52134027264369,"sku":"V31C01_465STAR","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_7f91df56-5281-4870-8f69-7899d17c6212.jpg?v=1739663123"},{"product_id":"stcov311411w","title":"Stocks \u0026 Commodities V. 31:6 (10–19, 41): The 1-2-3 Wave Count by Sylvain Vervoort","description":"The 1-2-3 Wave Count by Sylvain Vervoort\u003cbr\u003e\u003cbr\u003eRiding The Zigzags\u003cbr\u003e\u003cbr\u003eThe 1-2-3 Wave Count\u003cbr\u003e\u003cbr\u003eIn this second part of a seven-article series, find out about the 1-2-3 wave count\nsystem thats part of the indicator rules for a swing trading strategy (IRSTS).\u003cbr\u003e\u003cbr\u003eI have found that about 99% of the time, any move in the financial markets is\ncomposed of three or more up or down waves. The 1-2-3 wave count is based\non this finding. To help count these waves, I will introduce a high-low zigzag\nindicator that is based on a fixed-percent price change between high and low prices, or that uses an average true\nrange (ATR) volatility factor. I have\nfound that a combination of both\nmethods makes a good indicator.\u003cbr\u003e\u003cbr\u003eHigh-low zigzag\u003cbr\u003e\u003cbr\u003eIn Figure 1 you see an example of a\nzigzag between the lowest low and\nhighest high levels at the turning\npoints. The minimum change required\nin this example is the sum of a 3%\nprice change and a three-period ATR\nmultiplied by a factor of 1.5.\u003cbr\u003e\u003cbr\u003eI call this zigzag indicator SVEHLZZperc\nand use NinjaTraders\nNinjaScript to implement it. I keep\nthe last lowest low value in parameter\nll and the last highest high value in\nparameter hh. I need to store the bar\nposition of this highest high or lowest\nlow value. To do this, I use the last\nhighest bar lhb and last lowest bar llb\nas the parameters.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52134028902769,"sku":"V31C06_558VERV","price":5.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_b0c0c733-d343-4d5d-882b-f83ec4679bfa.jpg?v=1739663240"},{"product_id":"stcov311unyi","title":"Stocks \u0026 Commodities V. 31:11 (10–17): Understanding The Yield Curve, Part 1 by Giorgos E. Siligardos, PhD","description":"Understanding The Yield Curve, Part 1 by Giorgos E. Siligardos, PhD\u003cbr\u003e\u003cbr\u003eThe Shape Of Things To Come\u003cbr\u003e\u003cbr\u003eUnderstanding The Yield Curve Part 1\u003cbr\u003e\u003cbr\u003eIn this two-part series, youll get a comprehensive\nreview of yield curve analysis and how it can be\napplied to making decisions in the stock market. In\nthis first part, well look at basic theory as well as\nsome guidelines for how discretionary investors can\nuse it to gauge the investing landscape.\u003cbr\u003e\u003cbr\u003eUnderstanding macro perspectives\ncan provide\nsome added insight into\nyour analysis. I touched on this\nidea in my August 2012 Stocks\n\u0026amp; Commodities article Applying\nThe Sector Rotation Model,\nin which I introduced a simple\nindicator that can help quantify\nthe flow of money between expansionary\nand recessionary\nstock market sectors. Quantifying\nthe money flow will uncover\nthe macro investors actions and\nprojections about the entire stock\nmarket. In this article, I will focus\non another interesting and useful\nanalysis tool, directly from the\narsenal of macroeconomics \nthe yield curve.\u003cbr\u003e\u003cbr\u003eIn this first part, I will outline\nthe basic theory behind the yield\ncurve and explain why its important\nfor you to keep an eye on it\nfor your long-term analyses. I will\nalso discuss basic usage guidelines\nfor discretionary investors.\u003cbr\u003e\u003cbr\u003eWhat is the yield curve?\u003cbr\u003e\u003cbr\u003eThroughout this article, the term yield curve (YC)\nwill refer to a curve created using the annualized\nyields-to-maturity (that is, the annualized interest\nrates paid when you use compound interest) of various\ngovernment debt securities (GDS) of the same\ncountry across all possible\nmaturities in a yield-maturity\nchart. Theoretically, the YC can\ntake any shape, but it usually\nmanifests itself in one of three\nvarieties: positive, flat, or negative\n(see Figure 1).","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52134044959089,"sku":"V31C11_647SILI","price":4.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_4554cb5c-d051-4534-8fc8-38ca78027632.jpg?v=1739663911"},{"product_id":"stcov311filo","title":"Stocks \u0026 Commodities V. 31:1 (10-12): Finding Low-Risk Entry Points by Danish Kapur","description":"Rediscover The Basics\u003cbr\u003e\u003cbr\u003eFinding Low-Risk Entry Points by Danish Kapur\u003cbr\u003e\u003cbr\u003eSometimes you have to go back to the basics, especially when\nyou hit a rut. One of the most basic technical indicators you\ncan go back to is the moving average. It works well in trending\nmarkets but it also has its shortcomings. Heres how you can\nuse it to your advantage.\u003cbr\u003e\u003cbr\u003eSeveral myths are tied to the use of moving averages.\nHere, I will try to simplify the implementation of moving\naverages and clarify some of the more popular myths\nassociated with them. Moving averages are one of the simplest\ntools available to a trader, and they can be of great help\nin identifying potential low-risk entry points. But you cant take them for granted.\u003cbr\u003e\u003cbr\u003eThere are different types of moving averages such as the\nsimple moving average (SMA), exponential moving average\n(EMA), and weighted moving average (WMA). I will focus\non the SMA, which is the arithmetic average of prices over a\nspecified period of time.\u003cbr\u003e\u003cbr\u003eIts simple\u003cbr\u003e\u003cbr\u003eMoving averages are helpful in determining the direction of a\ntrend, but if a market is in a trading range, you are better off\nusing another type of indicator. In addition, there is no one size\nfits all parameter to use for moving averages. You may find\nthe 50-day SMA works well for one stock but not for another.\nDifferent moving averages work for different markets and you need to do your due diligence when\nit comes to determining which SMA\nto use. Discretionary traders can do\nthis by applying the SMA to a chart\nand checking to see how well prices\nrespect that specific moving average.\nSystem traders can determine how\nwell the SMA performs by backtesting\nand analyzing its performance.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52134173409649,"sku":"V31C01_461KAPUR","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_400ca59c-6df0-477c-98cb-686ee39bb832.jpg?v=1739670156"}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/collections\/favorite-articles-from-2013-21.gif?v=1739677611","url":"https:\/\/shop.traders.com\/collections\/faarfr205.oembed","provider":"Stocks \u0026 Commodities","version":"1.0","type":"link"}