{"title":"Volume 22 (2004)","description":"\u003cp\u003eBrowse Volume articles by issue:\u003c\/p\u003e\u003cdiv style=\"display:flex;flex-wrap:wrap;gap:12px;\"\u003e\n\u003ca href=\"\/collections\/volume24\/issue-01?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 1 January\u003c\/a\u003e\u003ca href=\"\/collections\/volume24\/issue-02?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 2 February\u003c\/a\u003e\u003ca href=\"\/collections\/volume24\/issue-03?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 3 March\u003c\/a\u003e\u003ca href=\"\/collections\/volume24\/issue-04?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 4 April\u003c\/a\u003e\u003ca href=\"\/collections\/volume24\/issue-05?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 5 May\u003c\/a\u003e\u003ca href=\"\/collections\/volume24\/issue-06?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 6 June\u003c\/a\u003e\u003ca href=\"\/collections\/volume24\/issue-07?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 7 July\u003c\/a\u003e\u003ca href=\"\/collections\/volume24\/issue-08?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 8 August\u003c\/a\u003e\u003ca href=\"\/collections\/volume24\/issue-09?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 9 September\u003c\/a\u003e\u003ca href=\"\/collections\/volume24\/issue-10?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 10 October\u003c\/a\u003e\u003ca href=\"\/collections\/volume24\/issue-11?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 11 November\u003c\/a\u003e\u003ca href=\"\/collections\/volume24\/issue-12?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 12 December\u003c\/a\u003e\n\u003c\/div\u003e","products":[{"product_id":"v227indanoon","title":"V. 22:3 (76-83): Interview: David Norman On Market Technology by Jayanthi Gopalakrishnan","description":"V. 22:3 (76-83): Interview: David Norman On Market Technology by Jayanthi Gopalakrishnan\u003cbr\u003e\u003cbr\u003eTradings come a long way since the days of the bucket shops, and now, technology and trading have become virtually inseparable. Heres someone who can tell us all about it: David Norman has been involved in trading and financial markets technology for 19 years. He has traded for and overseen trading operations in a variety of derivative instruments for a number of international\ncompanies, including Prudential Bache International, Cargill Investors Services, Sanwa Futures, Natwest Markets, and UBS Philips and Drew. The author of two books on trading and market technology, Norman is currently the director of market technology at Illinois Institute of Technology (IIT) and a financial markets consultant for Office for Market Technology, Inc.\u003cbr\u003e\u003cbr\u003eSTOCKS \u0026amp; COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Norman on January 9, 2004, asking him about the state of trading technology today.\u003cbr\u003e\u003cbr\u003eQ: Can you tell us about your background in finance and how you got interested in market technology?\u003cbr\u003e\u003cbr\u003eA: I started trading on the London Stock Exchange in 1985. I was a trainee trader when they still had the open outcry marketplace in London. From trading in stocks, I went to trading in options around 1987, and then migrated to trading futures in the early 1990s. So my experience really began in stocks, which was a nice start, and then I went to derivatives at quite an early stage.\u003cbr\u003e\u003cbr\u003eI was involved throughout the mid- to late 1990s in trading on LIFFE in several different futures and options products, and was broking open outcry Bund futures when EUREX took back the lions share of the business from LIFFE in 1996 and 1997. From that point on, LIFFE began to build its own electronic platform, and I got very interested in how that was going.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133906350449,"sku":"\\V22\\C03\\059INT.pdf","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_c1073631-9639-4ef4-b5f9-25408fd5e0b5.jpg?v=1739656385"},{"product_id":"stcov221exyo","title":"Stocks \u0026 Commodities V. 22:11 (101): Explore Your Options by Tom Gentile","description":"Stocks \u0026amp; Commodities V. 22:11 (101): Explore Your Options by Tom Gentile\u003cbr\u003e\u003cbr\u003eGot a question about options? Tom Gentile is the chief options strategist at Optionetics (www.optionetics.com), an education and publishing firm dedicated to teaching investors how to minimize their risk while maximizing profits using options. To submit a question, post it to our website at http:\/\/Message-Boards.Traders.com. Answers will be posted there, and selected questions will appear in a future issue of S\u0026amp;C.\u003cbr\u003e\u003cbr\u003eOPTIONS THAT EXPIRE WORTHLESS\u003cbr\u003e\u003cbr\u003eQ: What percentage of calls that are sold on underlying stocks expire worthless?\n Perry Buckman\u003cbr\u003e\u003cbr\u003eA: It is impossible to say what percentage of calls that are sold expire worthless. However, studies have examined what percent of all options expire worthless.\nWhile I have heard traders speculate that 70%, 80%, or even 90% of all contracts do so, the actual numbers are\nprobably much lower. According to a presentation by Alex Jacobson, vice president of the International Securities Exchange (ISE), at the Optionetics Oasis\n2004 Convention, a comprehensive study that included more than 30 years of data revealed that only 30% of options expire worthless. Roughly 10% of all options contracts are exercised, and the remaining 60% are closed through offsetting transactions. In sum, traders\nare more likely to close options through offsetting transactions before expiration than to let them expire worthless.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133906612593,"sku":"\\V22\\C11\\254EYO.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_744562cb-997c-423e-a51f-225aa69aeb60.jpg?v=1739656401"},{"product_id":"stcov222taof","title":"Stocks \u0026 Commodities V. 22:10 (22-27): A Tale Of Two Indicators by Andrew Tomlinson","description":"Stocks \u0026amp; Commodities V. 22:10 (22-27): A Tale Of Two Indicators by Andrew Tomlinson\u003cbr\u003e\u003cbr\u003eWhat do you do when two apparently similar indicators give opposite signals?\u003cbr\u003e\u003cbr\u003eOn July 6, 2004, I was feeling pretty pleased with myself. The stock market was falling and my short positions were making money for the first time in a couple of months (hey, stay on one side of the market for long enough and youre sure to be right sooner or later). One of my short positions, Micromuse (MUSE), gapped down 20% at the open on a revised outlook.\nWhen I checked the market later in the day (I trade from\nhome, so the first day after a long weekend is an orgy of\ngrocery shopping and ferrying the kids here and there you get the picture so being glued to the brokers screen is not really an option), I saw that the stock had traded down another 18% before starting to swing up again. No reason for swift action, I decided (my experience as a nondaytrader is that I lose money if I make snap judgment calls during the trading day). I chose to wait for my days-end review before planning\nmy next steps.\u003cbr\u003e\u003cbr\u003eWHAT I FOUND\u003cbr\u003e\u003cbr\u003eThat evening, I opened up MetaStock and started to go\nthrough my positions. When I got to MUSE, I saw that the price had ended up pretty much where it started, showing a big initial gap down and then a spike reversal (one of those falling-window-doji-hammery-things for candlestick aficionados) on heavy volume.\u003cbr\u003e\u003cbr\u003eThe surprise came when I looked at my volume indicators. I typically use Chaikin money flow (CMF), using a nine-day period instead of the 21-day default since I like the greater sensitivity. But Ive also recently been testing out a couple of other volume indicators, having just finished reading the book Bollinger On Bollinger Bands, which spends some time on the indicators use in confirming entry signals. So I also\nhad a 10-day money flow index (MFI) up on my screen.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133906645361,"sku":"\\V22\\C10\\211TOML.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_b61586ca-f450-4fda-8d9c-ff689f3abc94.jpg?v=1739656403"},{"product_id":"v227wefortrb","title":"V. 22:1 (72-73): Websites For Traders by David Penn","description":"Websites For Traders by David Penn\u003cbr\u003e\u003cbr\u003eORIGINALTURTLES.ORG\u003cbr\u003e\u003cbr\u003eEarlier last year, I completed a website\nreview of TurtleTrader.com (Technical\nAnalysis of STOCKS \u0026amp; COMMODITIES,\nApril 2003). Given the mystery that still\nsurrounds the now-legendary trading\nexperiment of Market Wizards Richard\nDennis and William Eckhardt, I thought\nthat TurtleTrader.com was an excellent\nplace for those interested in the Turtle\nTrading methodology to spend some\ntime studying. In addition to being a site\ndedicated to the passionate advocacy of\nthe Turtle Trading system, I found\nTurtleTrader.com to be every bit as much\na partisan of trend trading in general,\nand a helpful website for those considering\ntrend-trading techniques as an\nimprovement over buy-and-hold investment\napproaches, as well as a host of\nother, less sound ways of participating\nin the financial markets.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133908808049,"sku":"\\V22\\C01\\016WSOT.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_23ca9df1-8b45-4e68-b118-adb6ba1fd624.jpg?v=1739656524"},{"product_id":"v221bofortrb2","title":"V. 22:3 (122): Books For Traders by Technical Analysis, Inc.","description":"V. 22:3 (122): Books For Traders by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eSample entry of the books reviewed in this month's magazine: Mutual Fund Investors Guide 2004 (509 pages, $20 softcover, 2004, ISBN 1-59184-031-7) by Kirk\nKazanjian, a Portfolio book by the Penguin Group.\u003cbr\u003e\u003cbr\u003eMutual funds remain the vehicle of choice for smart investors. But in todays markets, which ones? The author provides clear, practical advice, filtering through the universe of stock and bond funds, and dispels the mystery around mutual funds to show you how to figure out the funds that suit you best.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133910086001,"sku":"\\V22\\C03\\066BOOK.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_16c4fe91-cea5-46ea-aedb-607a02fffd8c.jpg?v=1739656599"},{"product_id":"v222meretrfo","title":"V. 22:3 (24-38): Mechanically Recognizing Triangular Formations by Giorgos Siligardos, Ph.D.","description":"V. 22:3 (24-38): Mechanically Recognizing Triangular Formations by Giorgos Siligardos, Ph.D.\u003cbr\u003e\u003cbr\u003ePatterns such as triangles, pennants, and wedges (hereafter referred to as triangular formations, or TF) are some of the first things to which an aspiring chart analyst is introduced when he or she begins to study technical analysis. The chart formations in this category are characterized by an oscillating movement of price toward an equilibrium point. They all have two things in common: They usually take place during strong trends and they provide good trading opportunities with clear stops and, most of the time, clear targets. That they are commonly posted during strong trends makes them quite useful, since the market has reached these levels quickly and therefore leaves ample room with no significant support\/resistance after the upward or downward violation of the formation.\u003cbr\u003e\u003cbr\u003eIn Figure 1 you can see examples of triangular formations in a bullish trend. Triangular formations are easily identified when looking at a chart, but as most technical analysts follow large numbers of equities, it is necessary to have a mechanical identification method and let the computer do the dirty work. The difficult part is figuring out how to tell your software what a triangular shape is! Computers do not understand shapes the\nway humans do, so we need to translate a geometric shape into numbers before plugging it into an algorithm.\u003cbr\u003e\u003cbr\u003eMERITS AND DRAWBACKS\u003cbr\u003e\u003cbr\u003eTo identify triangular formations, the most obvious merit\nof a mechanical method is that, as mentioned, it saves\ntime. Another benefit is that it is quite easy to study the\nstatistics of these formations and their implications for a number of equities.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133910118769,"sku":"\\V22\\C03\\049SILI.PDF","price":4.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_377e0292-7348-4802-8735-9e5f912fab75.jpg?v=1739656602"},{"product_id":"v228prreprby","title":"V. 22:9 (86-91): Product Review: ProSticks by David Penn","description":"V. 22:9 (86-91): Product Review: ProSticks by David Penn\u003cbr\u003e\u003cbr\u003eWhen I look at new technical analysis charting software products and services, I try to figure out which of two standard categories the new product falls into. Is the product essentially providing all of the same sorts of charts, tools, quotes, indicators and oscillators, alerts, scans and screens, coding, and programming options as the rest of the technical analysis charting crowd, only better? Or is the product focused on a few things maybe eye-popping charts loaded with technical indicators or a stock screener that encompasses more\nmethods and strategies than the average trader ever dreamed of, with a mandate to fill a specific trading niche that other products have been unable or unwilling\nto fill?\u003cbr\u003e\u003cbr\u003eFortunately, a new product by ProSticks Financial Solutions called (appropriately enough) ProSticks provides one of those uncommon occasions\nwhen a product manages to do both. ProSticks has all of the basic bells and whistles that the average stock or\nforex trader wants, but also introduces some innovations that will likely have even traders who are comfortable with their current charting platforms wanting to take a peek.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133910151537,"sku":"\\V22\\C09\\203PRO.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_9d98bbce-2682-4d4e-bb8c-b719ade31b4a.jpg?v=1739656604"},{"product_id":"stcov222mase","title":"Stocks \u0026 Commodities V. 22:11 (28-34): The Market's Second Chance by Donald Jones","description":"Stocks \u0026amp; Commodities V. 22:11 (28-34): The Markets Second Chance by Donald Jones\u003cbr\u003e\u003cbr\u003eIn my STOCKS \u0026amp; COMMODITIES articles on auction market analysis (see suggested reading), I gave examples of making trades with value-based information. Implicitly, these were all first-chance, breakout trades. You do the analysis, the market meets the entry criteria and, boom! you initiate the trade.\u003cbr\u003e\u003cbr\u003eIn the real world, we all sometimes miss that first\nchance. Most of us know better than to chase a trade.\nBut on occasion, the market offers a second chance.\nRecognizing a valid second-chance opportunity is more difficult and takes more market knowledge than entry on breakout. Second chances can come in a variety of guises, but they have two general characteristics:\u003cbr\u003e\u003cbr\u003e The initial breakout comes out of a congesting\nmarket condition, and\u003cbr\u003e\u003cbr\u003e The second chance occurs during a subsequent\ncongestion.\u003cbr\u003e\u003cbr\u003eIf youve missed a great trade, dont lose hope, because the market often gives second chances. Heres how you can recognize them when they appear.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133910249841,"sku":"\\V22\\C11\\239JONE.pdf","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_2a074010-3d77-4dd3-94f8-d7f5dfe4301f.jpg?v=1739656611"},{"product_id":"stcov229prre1","title":"Stocks \u0026 Commodities V. 22:11 (94-96): Product Review: NeoTicker 3.0 by Dennis D. Peterson","description":"Stocks \u0026amp; Commodities V. 22:11 (94-96): Product Review: NeoTicker 3.0 by Dennis D. Peterson\u003cbr\u003e\u003cbr\u003eNeoTicker 3.0 has all the standard features you\nmight expect to find in advanced charting software. But it also has a number of unique features: a pattern\nscanner that can use multiple indicators or an actual price pattern, the ability to chart multiple time frames on a single chart, and a quote window that includes a line chart for each symbol.\u003cbr\u003e\u003cbr\u003eNeoTicker is the integration of several software packages, and it has been carefully developed to serve the needs of NeoTickers primary users: daytraders.\nThis is truly an evolving trading package, with many new features that were added after the initial integration and since our last review in 2001.\u003cbr\u003e\u003cbr\u003eMAIN MENUS AND CHARTING\u003cbr\u003e\u003cbr\u003eUnlike most charting packages, which incorporate their menus into the charting window, NeoTicker uses separate windows for its main and drawing menus. Like all NeoTicker windows, the menu windows can be sized and positioned to fit your screen needs. You can still see your desktop and icons underneath (Figure\n1).\u003cbr\u003e\u003cbr\u003eMore than 14 drawing tools are included, such as Fibonacci levels and the Andrews pitchfork. A unique feature is the ability to overlay data series of different\ntime frames on the same chart, as shown in Figure 2. The weekly candles are displayed in blue, while daily candles are in red and green. To use this feature, all you have to do is right-click on a chart background, which brings up a popup menu with Add data as one of the options.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133910282609,"sku":"\\V22\\C11\\252NEO.pdf","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_6c1397e0-2e4d-4468-83b7-51e11c888771.jpg?v=1739656614"},{"product_id":"stcov229trti","title":"Stocks \u0026 Commodities V. 22:4 (90-99): Traders' Tips by Technical Analysis, Inc.","description":"Stocks \u0026amp; Commodities V. 22:4 (90-99): Traders Tips by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eHere is this months selection of Traders Tips, contributed by various developers of technical analysis software, all to help readers more easily implement some of the strategies presented in this issue. Internet users will also find these and most previous Traders\nTips at our website at www.Traders.com. To locate the various tips, use our sites search engine or click on the STOCKS \u0026amp; COMMODITIES magazine icon on the left-hand side of our homepage, then scroll down to the This month in S\u0026amp;C section on the left-hand side and look for Traders Tips. For Traders Tips published earlier, click on the Back issues archive located under the This month in S\u0026amp;C section, or use the search engine. Other code presented in the articles in this magazine can be found at our website in a subscribers-only area at http:\/\/ technical.traders.com\/sub\/sublogin.asp. Login requires your last name and subscriber number.\u003cbr\u003e\u003cbr\u003eThis month's code is provided by TradeStation, MetaStock, CQG, AmiBroker, eSignal, Wealth-Lab, NeuroShell Trader, AIQ Trading Expert, NeoTicker, Prophet.net, TechniFilter Plus, and TradeSense for David Sepiashvili's article \"Trend-Quality Indicator.\"\u003cbr\u003e\u003cbr\u003eAlso included are CQG code for the Cumulative Price Change Indicator, and NeoTicker code for the B-indicator.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133910315377,"sku":"\\V22\\C04\\087TIPS.pdf","price":4.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_dd0c414e-678e-4cb2-b438-6dacb0875813.jpg?v=1739656616"},{"product_id":"v229trtibyte5","title":"V. 22:8 (98-107,127): Traders' Tips by Technical Analysis, Inc.","description":"Traders Tips by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003e NEOTICKER: ADVANCE ISSUES MOMENTUM (AIM)\u003cbr\u003e\u003cbr\u003eEditors note: Lawrence Chan and Louis Lin of TickQuest\n(developer of NeoTicker) contributed the article to this issue\non which this months Traders Tips is based (Boosting\nProtability), and they have included NeoTicker code in the\narticle. Thus, please see the article starting on page 28 in this\nissue for NeoTicker code for the advance issues momentum\n(AIM) indicator.\u003cbr\u003e\u003cbr\u003eKenneth Yuen, TickQuest Inc.\nwww.tickquest.com\nTickQuest","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133911658865,"sku":"\\V22\\C08\\182TIPS.PDF","price":4.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_6784b67d-e8de-4ed8-9093-360ff01bcbe7.jpg?v=1739656707"},{"product_id":"stcov224qaby","title":"Stocks \u0026 Commodities V. 22:10 (47): Q\u0026A by Don Bright","description":"Stocks \u0026amp; Commodities V. 22:10 (47): Q\u0026amp;A by Don Bright\u003cbr\u003e\u003cbr\u003eSINCE YOU ASKED\u003cbr\u003e\u003cbr\u003eConfused about some aspect of trading? Professional trader Don Bright of Bright Trading (www.stocktrading.com), an equity trading corporation, answers a few of your questions. To submit a question, post your question to our website at http:\/\/Message-Boards.Traders.com. Answers will be posted there, and selected questions\nwill appear in a future issue of S\u0026amp;C.\u003cbr\u003e\u003cbr\u003eARBITRAGE AND VWAP\u003cbr\u003e\u003cbr\u003eFor arbitrage (as with Bank One and JPMorgan Chase), you have said to use the ratio and spread number as a reference. What is the ratio? Is that the price difference ratio, or the spread ratio? Second, regarding VWAP (volume-weighted average price), suppose the\nprice is $30, and the VWAP is $30.20. Does that mean the price is below the average-volume price?\u003cbr\u003e\u003cbr\u003eThe ratio refers to the number of shares in one stock that it takes to equal 100 shares of the other. In this case, the ratio is 1.32 of JPM to 1.00 of ONE. To trade it,\nyou would buy\/sell 1,300 shares of JPM, and sell\/buy 1,000 shares of ONE.\u003cbr\u003e\u003cbr\u003eVolume-weighted average price is simply that. To calculate VWAP, multiply the price by the number of shares for each trade. Add the results for all the trades and divide that by the number of shares traded. This will give you the VWAP number. The current price is either higher or lower than VWAP. VWAP is used by brokers and customers to give them a standardized price at which to buy\/sell stock to each other that day.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133911757169,"sku":"\\V22\\C10\\215QA.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_f1898813-0aef-4ab0-9ae6-9be6d59316cf.jpg?v=1739656715"},{"product_id":"stcov224tich","title":"Stocks \u0026 Commodities V. 22:4 (44-48): Tiny Chart Patterns: Stinkers Or Stalwarts? by Thomas N. Bulkowski","description":"Stocks \u0026amp; Commodities V. 22:4 (44-48): Tiny Chart Patterns: Stinkers Or Stalwarts? by Thomas N. Bulkowski\u003cbr\u003e\u003cbr\u003eRecognizing tiny chart patterns may be all the edge you need to make a killing in the market, but do they work?\u003cbr\u003e\u003cbr\u003eIn two prior articles, I discussed bullish chart patterns of long duration. This article discusses smaller chart patterns: some you may have heard about, and some\nthat may be new to you. None of the patterns is longer than a few days. Daytraders in stocks or commodities\nmay find them useful, but some of the patterns may also help longer term investors. Sometimes these tiny\npatterns can tip you off to a large move ahead. They can signal a trend reversal and save you a ton of money.\nSo what are these mysterious chart patterns?\u003cbr\u003e\u003cbr\u003eINSIDE DAYS\u003cbr\u003e\u003cbr\u003eAll figures in this article show high- low- close prices that is, no opening price. Figure 1 illustrates our first\npattern, inside days, on the daily scale. Look at the inset for a closer view of the pattern. An inside day is\nwithin the boundary of the prior days range (hence its name). The second day has a lower high and higher low a narrowing of the price range. No ties are allowed (the two days cannot share the same high or low price). Where the stock opens or closes is not important, and the second day need not be centered in the first days price range. The inset shows the second\ndays price range to be above the midpoint of the prior day.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133911789937,"sku":"\\V22\\C04\\073BULK.pdf","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_5f18ad1c-e659-4098-a585-1adb5a852503.jpg?v=1739656717"},{"product_id":"v224exanddot","title":"V. 22:2 (46-48,50,52): Experience And Dollar-Risk Tolerance Levels by Daryl Guppy","description":"Experience And Dollar-Risk Tolerance Levels by Daryl Guppy\u003cbr\u003e\u003cbr\u003eAs you gain trading experience, be aware of changes in your\nresponse to risk.\u003cbr\u003e\u003cbr\u003eTrading is not an objective; it is a process.\nWhen you begin trading, you may have in\nmind some achievement or goal, and once\nyou reach it, you may feel like an expert.\nUnfortunately, this demonstrates significant\nmisunderstanding of the relationship between trading and skill development. More important, it ignores the\nway you develop as a trader. An experienced trader is not just\nsomeone who knows more than a novice; he or she is actually\na different person.\u003cbr\u003e\u003cbr\u003eEVOLUTION\u003cbr\u003e\u003cbr\u003eAs your skills develop and your experience accumulates, you\ntend to change in many ways. Trading solutions that were appropriate when you were a novice may no longer work\nwell. In addition, personality changes develop in response to\nmany factors, especially:\u003cbr\u003e\u003cbr\u003e Your trading experience.\u003cbr\u003e\u003cbr\u003e Your maturity level as you grow older and encounter a\nbroader range of life experiences.\u003cbr\u003e\u003cbr\u003e Lifestyle changes unrelated to trading. This might include\nrelationship breakups or experiencing a major\ntrauma such as a car accident.\u003cbr\u003e\u003cbr\u003e Your age. Your general approach to spending money is\ndifferent when you are 30 than when you are 60.\u003cbr\u003e\u003cbr\u003eAll of these factors affect your ability to manage risk with\nan effective stop-loss approach. The longer you trade, the\nmore you will understand that psychology plays a vital part\nin your trading success. Your emotions, actions, and experiences\nwill have interesting and unexpected consequences on your behavior. Some of them are not pretty.\u003cbr\u003e\u003cbr\u003eGreed and fear are the basic emotions that trigger\npsychological reactions in trading. Trading can\nmake you more money than you dreamed possible,\nand that can be a heady experience. However, fear\nbecomes an intimate companion when your hardearned\ncash is gobbled up in a falling market.\nTrading is no roller-coaster ride with a guaranteed\nsafe ending.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133913166193,"sku":"\\V22\\C02\\0029GUPP.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_9869c8c1-866e-4c7d-8ffb-00ee9e7c6c0e.jpg?v=1739656821"},{"product_id":"v224whwimaop","title":"V. 22:7 (42-46): Where Will The Markets Open? by Ihor Vysotskyy","description":"Where Will The Markets Open? by Ihor Vysotskyy\u003cbr\u003e\u003cbr\u003eHeres how you can use fair value to determine where the\nmarket will open.\u003cbr\u003e\u003cbr\u003eTurn on CNBC before the market opens and you\nwill see the S\u0026amp;P futures quotes. How important\nare they? If you are an experienced trader,\nyou know that the Standard \u0026amp; Poors 500\nfutures contract, which is based on the S\u0026amp;P\n500 index, is a valuable forecasting tool. But what exactly is the connection between the S\u0026amp;P 500 index\nand futures on this index, and how can this connection help\ndefine where the market will open?\u003cbr\u003e\u003cbr\u003eFUTURES VS. CASH\u003cbr\u003e\u003cbr\u003eThe S\u0026amp;P 500 is a capitalization-weighted index with an\naggregate market value of 500 companies that represent\nmajor industries. The S\u0026amp;P 500 futures contract is a commodity\ncontract based on the S\u0026amp;P 500 cash index. It represents the\nobligation to deliver the value of the index on a certain\nfuture date (the expiration date).","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133913198961,"sku":"\\V22\\C07\\144VYSO.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_465494ee-1c9f-471b-86b4-b2557a714d87.jpg?v=1739656823"},{"product_id":"v228elwarian","title":"V. 22:7 (82-84): Elliott Wave Risk And Reward by Tony Beckwith","description":"Elliott Wave Risk And Reward by Tony Beckwith\u003cbr\u003e\u003cbr\u003eEstablish your exit stop strategy before\nplacing your next trade.\u003cbr\u003e\u003cbr\u003eTraders have no business\ntrading if risk\/reward\nanalysis is not at the top of\ntheir concerns. If a trader\nhas no idea of the potential\nprofit return on any given trade relative to the initial risk of taking the\ntrade at all, his long-term profitability is in\nquestion.\u003cbr\u003e\u003cbr\u003eElliott wave (EW) analysis has come in\nfor its fair share of criticism over the\nyears, due at least in part to the inevitable\novercomplication by analysts and the fallibility\nof some of their forecasting. However,\nby steering clear of these two pitfalls,\nsome of the basic premises of EW\nanalysis can be stripped out and used in a\nhighly consistent risk\/reward trade plan.\u003cbr\u003e\u003cbr\u003eJUST REWARDS\u003cbr\u003e\u003cbr\u003eTo evaluate the reward part of the equation,\nElliott wave analysis can help by\npointing to where the reward is likely to\nbe strong. Accepting the premise of market\nmovement in EW means accepting the\nfive-wave sequence that has become trading\nlegend.\u003cbr\u003e\u003cbr\u003eElliott wave theory states that a market\ntends to unfold with three impulsive (trend)\nwaves and two correction waves linking\nthem. It works this way: wave 1 up, wave\n2 correcting down, wave 3 back up to new\nhighs, wave 4 correcting down, then wave\n5 back up to new highs to complete the\nsequence (and vice versa).\u003cbr\u003e\u003cbr\u003e\u003cbr\u003e\u003cbr\u003e","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133913231729,"sku":"\\V22\\C07\\153BECK.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_f31eece0-fc84-45de-a49c-d4f77cfdfee0.jpg?v=1739656826"},{"product_id":"stcov221mami","title":"Stocks \u0026 Commodities V. 22:10 (16-20): Maximizing The Mini by Mike Paulenoff","description":"Stocks \u0026amp; Commodities V. 22:10 (16-20): Maximizing The Mini by Mike Paulenoff\u003cbr\u003e\u003cbr\u003eHeres a look at a successful short-term trade on the e-mini contract.\u003cbr\u003e\u003cbr\u003eOne morning in June, with the Standard \u0026amp; Poors 500 riding a nearly four week uptrend, a friend of mine decided to bet the market would decline. Rather than short the cash index through funds or exchangetraded\nfunds (ETFs) that track the S\u0026amp;P 500, Tom decided to trade the index futures, where he has far more margin power and where nearly round-the-clock trading enables him to buy before the cash market opens. His early morning price on the S\u0026amp;P futures was 1143 or, as it turned out, 41\/2 points higher than the S\u0026amp;P 500s\nopening price.\u003cbr\u003e\u003cbr\u003eRather than the regular S\u0026amp;P index futures contract, Tom bought the e-mini S\u0026amp;P contract, which is one-fifth the contract size and requires far less money down on margin. A single regular S\u0026amp;P contract, which is valued at $250 per point (or about $275,000 on a price of 1,100), requires about $20,000 in margin ($5,000 if youre not holding overnight). An e-mini contract, valued\nat $50 per point, requires about $4,000 if held overnight, and far less if daytrading. You can daytrade up to 49 e-mini contracts for $500 on Global Futures Exchange, though the added leverage, of course, increases risk.\u003cbr\u003e\u003cbr\u003eNow, Tom decided to short 10 June e-mini S\u0026amp;P contracts, and at the same time entered an intraday protective stop on his e-mini position to limit his loss in case his analysis and entry proved ill-timed. By evening, with the June e-mini S\u0026amp;P contract down to 1128.50 (nearly 3 points below the cash indexs close), Tom was able to cover his short at more than 14 points. Thats 14 times $50 per point times 10 contracts\n or $7,000. Nice bit of change.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133913330033,"sku":"\\V22\\C10\\210PAUL.pdf","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_fa0d9723-b4fa-404d-83bc-cf0a2253c1f7.jpg?v=1739656833"},{"product_id":"v223infitrby","title":"V. 22:5 (38-40,42): The Inverse Fisher Transform by John F. Ehlers","description":"The Inverse Fisher Transform by John F. Ehlers\u003cbr\u003e\u003cbr\u003eHow often have you been indecisive about entering\nor exiting a trade? Heres one way to get a clear\nindication.\u003cbr\u003e\u003cbr\u003eThe purpose of technical indicators is to\nhelp time your decisions to buy or sell.\nIdeally, their signals should be clear\nand unequivocal, but more often than not you will find yourself crossing your fingers\nbefore pulling the trigger. Even if you have placed\nonly a few trades, you will have experienced this.\u003cbr\u003e\u003cbr\u003eINVERSE FISHER TRANSFORM\u003cbr\u003e\u003cbr\u003eIn this article I will show you a way to program your\noscillator-type indicators to give clear, black-andwhite\nindications of when to buy or sell. I will do this\nby using the inverse Fisher transform to alter the probability distribution function\n(PDF) of your indicators.\u003cbr\u003e\u003cbr\u003eIn the past, I have noted that the\nPDF of price and indicators do not\nhave a Gaussian, or normal, probability\ndistribution. A Gaussian\nPDF is the familiar bell-shaped\ncurve in which the long tails\nmean that wide deviations from\nthe mean do not occur frequently.\nThe Fisher transform can be applied\nto almost any normalized\ndataset to make the resulting PDF\nnearly Gaussian, with the result\nthat the turning points are sharply\npeaked and easy to identify.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133915328881,"sku":"\\V22\\C05\\095EHLR.pdf","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_bbc52d70-4072-48cd-8bb1-68b010c33599.jpg?v=1739656990"},{"product_id":"v2266284injo","title":"V. 22:1 (60, 62-65, 84): Interview: John F. Ehlers of MESA by Jayanthi Gopalakrishnan","description":"Interview: John F. Ehlers of MESA by Jayanthi Gopalakrishnan\u003cbr\u003e\u003cbr\u003eJohn Ehlers pioneered the use of the MESA (maximum entropy spectral\nanalysis) algorithm for measuring market cycles in the early 1980s.\nThe MESA technique is now acknowledged by leading technical\nanalysts to be an accurate and effective way of measuring market\ncycles. More recently, Ehlers has written about applying advanced\ndigital signal processing techniques, including Fisher transforms,\nHilbert transforms, and nonlinear filters to technical analysis.\u003cbr\u003e\u003cbr\u003eEhlers, president of MESA Software and a registered CTA, has seen\nhis software receive 25 Readers Choice awards from STOCKS \u0026amp;\nCOMMODITIES magazine over the years. Currently, MESA Software\ndevelops automatic trading systems that adapt to market conditions.\u003cbr\u003e\u003cbr\u003eA Contributing Editor for STOCKS \u0026amp; COMMODITIES, Ehlers has\nwritten several books, including MESA And Trading Market Cycles,\nRocket Science For Traders, and Cybernetic Analysis For Stocks And\nCommodities. He is a frequent speaker at conferences and seminars\non the subject of cycles in the markets.\u003cbr\u003e\u003cbr\u003eSTOCKS \u0026amp; COMMODITIES Editor Jayanthi Gopalakrishnan spoke\nwith John Ehlers via telephone on October 29, 2003.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133915361649,"sku":"\\V22\\C01\\012INT.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_55a57e6a-de35-464b-90b1-c00f84819e8d.jpg?v=1739656993"},{"product_id":"stcov22186le","title":"Stocks \u0026 Commodities V. 22:4 (10-13, 86-87): Letters To S\u0026C by Technical Analysis, Inc.","description":"Stocks \u0026amp; Commodities V. 22:4 (10-13, 86-87): Letters To S\u0026amp;C by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eCANDLESTICKS REVISITED\u003cbr\u003e\u003cbr\u003eEditor,\u003cbr\u003e\u003cbr\u003eWhile I disagree with the importance placed on a\nsingle tall white candlestick line in Stephen Bigalows article in the February 2004 issue (Stop-Loss Procedures Made Easy), I am glad he touched on the importance of using stops. In all of my training material, I stress that while candlesticks give many timing advantages, the trader must always take into account risk and reward. One of my Nison Trading Principles (my 13 most important trading concepts) is, Even a perfect candle signal does not equal a good trade! One must always judge the potential trades risk-reward.\nNot understanding this is probably one of the most common mistakes made by those new to candlesticks.\nBy using a protective stop, we harness one of the major strengths of technical analysis. To wit: fostering a sound money management approach to trading. A stop means that there is a price at which the position is wrong. As the Japanese proverb says, When you are\nriding a dead horse, it is best to dismount.\u003cbr\u003e\u003cbr\u003eSTEVE NISON, CMT\nCandlecharts.com","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133915558257,"sku":"\\V22\\C04\\068LET.pdf","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_ebac4887-4cda-4926-856e-b4d7e33d7165.jpg?v=1739657010"},{"product_id":"stcov226trcu","title":"Stocks \u0026 Commodities V. 22:11 (60-65): Trading Currencies Using Multiple Time Frames by Kathy Lien and Patrick Dyess","description":"Stocks \u0026amp; Commodities V. 22:11 (60-65): Trading Currencies Using Multiple Time Frames by Kathy Lien and Patrick Dyess\u003cbr\u003e\u003cbr\u003eWhen trading currencies, its best to get the big picture first and then use a shorter time frame to select entries and exits.\u003cbr\u003e\u003cbr\u003eWith $1.5 trillion in daily turnover, the foreign exchange market is the largest market in the world. Previously, access to this market was restricted to hedge funds, large commodity trading advisors (CTAs), and institutional investors due to regulation, capital requirements, and technology. The big players have always wanted access to the market because unlike the equity markets, where liquidity is dispersed across many different stocks, the $1.5 trillion in liquidity is concentrated in four major currency pairs, so they are very liquid. This means that traders can get in and out easily, executing more than $100 million without causing a significant shift in the markets.\u003cbr\u003e\u003cbr\u003eTRADING THE TRENDS\u003cbr\u003e\u003cbr\u003eTechnical analysis is the most common trading strategy used by professional forex traders because currencies rarely spend much time in tight trading ranges and tend to develop strong trends. More than 80% of forex volume is speculative in nature, so as a result, the market frequently overshoots and then corrects itself. A technically trained trader can easily identify new trends and breakouts, providing multiple opportunities to enter and exit positions. In addition, aside from trend trading, certain currencies may undergo extended periods of range trading. Traders can find ample opportunity to play the ends of ranges.\u003cbr\u003e\u003cbr\u003eIn order to trade successfully on an intraday basis, it is\nimportant to be selective. Youve heard of the trading clich The trend is your friend, havent you? Clichs become clichs for good reason more often than not, theyre true. This one is the tenet for trading, and its importance should not be understated. Trading with the trend while employing trailing stops allows the opportunity to capture big moves in any market.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133915591025,"sku":"\\V22\\C11\\244LIEN.pdf","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_f93ae759-814a-4ae6-bda2-1b7a7a1daae4.jpg?v=1739657013"},{"product_id":"v224setupyot","title":"V. 22:9 (46-56): Set Up Your Trades With The Swing Indicator by Teresa Lo","description":"V. 22:9 (46-56): Set Up Your Trades With The Swing Indicator by Teresa Lo\u003cbr\u003e\u003cbr\u003eKnowing when and where classic chart patterns tend to form is as important as identifying the patterns themselves. Heres how one trader uses a combination of indicators and simple geometry to set up trades.\u003cbr\u003e\u003cbr\u003eThe trend is your friend except at the ends, where it bends. Ed Seykota\u003cbr\u003e\u003cbr\u003eInvestors and traders are no doubt familiar with Ed\nSeykotas oft-quoted saying, as it describes price action\nfound in the capital markets. This idea has inspired traders to focus on finding stocks that are trending in order to enter on retracement patterns; however, not all trends are created equal, as those traders have no doubt discovered.\u003cbr\u003e\u003cbr\u003eSayings aside, there are qualitative and quantitative differences between a bend and the end. Traders who can gauge whether a given bend is a large pause instead of a reversal are more likely to capitalize on the trend. Knowing how to identify areas where larger retracement and price congestion patterns actually begin is useful, because large consolidation patterns tend to form and set up price breakout trades in larger\ntime frames in the direction of the prevailing trend.\u003cbr\u003e\u003cbr\u003eTHE BEND THAT ENDS THE TREND\u003cbr\u003e\u003cbr\u003eAn uptrend that emerges after a long period of base-building is often distrusted, recognized only slowly by participants; the upward price movement can be unconvincing. Meanwhile, the late stages of an established uptrend are characterized by extreme positive sentiment, skyrocketing prices, and wild speculation by that portion of the public engaged in momentum trading.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133916934513,"sku":"\\V22\\C09\\193LO.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_818b86b7-f719-4c4a-9b63-0205d14e8b57.jpg?v=1739657119"},{"product_id":"v225sidilrsi","title":"V. 22:7 (58-59): Sidebar: Divergence LRS indicator in MetaStock by Markos Katsanos","description":"Sidebar: Divergence LRS indicator in MetaStock by Markos Katsanos\u003cbr\u003e\u003cbr\u003eDIVERGENCE LRS INDICATOR IN METASTOCK\nThis indicator is plotted in the articles Figure 3 for FMXI.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133918376305,"sku":"\\V22\\C07\\146SB.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_f5f4ee56-3b34-484f-93f2-f4b1869c4a01.jpg?v=1739657211"},{"product_id":"v22912wefort","title":"V. 22:5 (93-95, 129): Websites For Traders: StockConsultant.com by David Penn","description":"Websites For Traders: StockConsultant.com by David Penn\u003cbr\u003e\u003cbr\u003eSTOCKCONSULTANT.COM\u003cbr\u003e\u003cbr\u003eHow much information do you really want to know\nabout the stocks you are thinking about trading and\ninvesting? This was the first reaction I had when I typed\nYahoos stock symbol (YHOO) in the enter symbol\nbox of StockConsultant.com. With the click of a mouse,\nStockConsultant.com produced a stock report for YHOO\nthat was as comprehensive as any Ive come across on\nthe Internet.\u003cbr\u003e\u003cbr\u003eDoubt it? Consider what you get: a multichart geared\ntoward intraday (15-minute) data, with daily last, change,\nopen, high, low and volume information, current price\/\nearnings ratio, and 52-week price range. To the left of\nthe multichart, there is a year-view area chart; an array\nof links for headlines from media sources like CNN; an\nearnings calendar; premarket quotes and indicators; and\nadditional stock-specific data such as short interest,\nfloat, corporate ratings, 10k filings, yearly and quarterly\ngrowth, and an industry overview page.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133918409073,"sku":"\\V22\\C05\\109WSSC.pdf","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_a5d74bfe-c844-4f13-a636-262a04ca13bf.jpg?v=1739657214"},{"product_id":"stcov227quin","title":"Stocks \u0026 Commodities V. 22:4 (77): Quick-Scan: Intermarket Analysis by Matt Blackman","description":"Stocks \u0026amp; Commodities V. 22:4 (77): Quick-Scan: Intermarket Analysis by Matt Blackman\u003cbr\u003e\u003cbr\u003eINTERMARKET ANALYSIS: Profiting From Global Market Relationships\u003cbr\u003e\u003cbr\u003ePublisher: John Wiley \u0026amp; Sons, Author: John J. Murphy, Year: 2004, Price: $69.95\u003cbr\u003e\u003cbr\u003eIts surprising to consider, but according to Intermarket Analysis, John Murphys latest book, his distinguished\ncareer in the markets began nearly four decades ago. While many traders active today had yet to enter the material plane, he was already a stock analyst on Wall\nStreet. In the 1970s he began working in the commodities markets, which were in the process of a rapid evolution from a concentration on hard assets such as corn and sugar to include more sophisticated\nfinancial instruments such as contracts on currencies and Treasury bonds. This was followed by the introduction of stock index futures in the early 1980s. Commodities included the four major asset classes of stocks, bonds, commodities, and currencies.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133918605681,"sku":"\\V22\\C04\\083QS1.pdf","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_ee5ccd0c-fa4b-4673-9621-2a182aeb6e7a.jpg?v=1739657227"},{"product_id":"v221letoedby","title":"V. 22:1 (10-13): Letters To The Editor by Technical Analysis, Inc.","description":"Letters To The Editor by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eDISTAFF CONFERENCES?\u003cbr\u003e\u003cbr\u003eEditor,\u003cbr\u003e\u003cbr\u003eI just passed my Series 3\ntest. Is there a conference\/\nworkshop for women in\nthe commodities\/futures\nbusiness?\nELIZABETH BRAUN ANDREINI\nNaples, FL\u003cbr\u003e\u003cbr\u003eThere are several conferences related\nto the commodities\/futures business. I\ndont know of any that are specifically\ntargeted to women, however. Check with\nprofessional womens associations or\nthe Market Technicians Association to\nfind out if they do. Editor","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133924241777,"sku":"\\V22\\C01\\002LETT.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_f2424fc8-e742-422f-82b4-00a05e937737.jpg?v=1739657553"},{"product_id":"v229prrexoby","title":"V. 22:5 (91-92): Product Review: XOCharts by David Penn","description":"Product Review: XOCharts by David Penn\u003cbr\u003e\u003cbr\u003eAre you still daytrading, enduring\nthe grief that friends\nand colleagues give you for\npursuing such a reckless\npastime? Maybe youre a proponent of some of the classic technical\ntechniques of the first half of the\n20th century, and think theres no worse\nabuse than that suffered by outmoded\nDow theorists, or Gann aficionados, or\nElliott wavers. Perhaps youve stopped\ntelling people you are a long-only\ntrader because youre sick of hearing\nWhat!? You call yourself a trader and\nyou never go short?!\u003cbr\u003e\u003cbr\u003eIf so, stop yer whining, because the\nRodney Dangerfield No Respect\naward for technical analysis, in my opinion,\ngoes to none other than those stalwart\ntechnicians plotting little Xs and\nOs in point \u0026amp; figure charts. In a world\nof real-time, streaming intraday data,\nthree-dimensional price charts, and\nmore technical indicators and oscillators\nthan any sane trader could ever\nhope to learn (let alone use effectively),\npoint \u0026amp; figure chartists at times appear\nto be to technical analysis what the twohanded\nset shot is to professional basketball:\nIt aint fancy, but it sure is\neffective.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133925486961,"sku":"\\V22\\C05\\108PRXO.pdf","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_188a9e24-963c-4a9b-b8d1-8f0d00daac71.jpg?v=1739657646"},{"product_id":"v225swtrwisw","title":"V. 22:2 (58,60-63): Swing Trading With Swing Charts by Teresa Lo","description":"Swing Trading With Swing Charts by Teresa Lo\u003cbr\u003e\u003cbr\u003eHeres how you can use swing charts as\nan indispensable tool for all your trading.\u003cbr\u003e\u003cbr\u003eOf late, swing trading has\ncaught the attention of\nmany market participants.\nThis migration of\ntraders from day\ntoswing trading has most likely been caused by the severe\ncontraction of price movement in most\nstocks and stock indexes over the past\nfew years. For example, Amazon (Figure\n1) is a typical high-profile Internet\nstock. On January 29, 1999, Amazons\n20-day average true range (ATR) was\n$10.30. As of October 31, 2003, the\nvalue was $1.93. Roughly, this means it\nnow takes more than a week for Amazon\nto cover the amount of movement\nthat it used to cover in a single day back\nduring the market frenzy, rendering\nintraday trading quite a bit less profitable\nthan it used to be.\u003cbr\u003e\u003cbr\u003eWhile there seems to be no lack of information offered on\nthe subject of swing trading, the meaning of the term swing\nis often unclear. Let me provide some insight into how to use\nswing charts as an indispensable tool not only for swing\ntrades but also for any type of trading.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133929288049,"sku":"\\V22\\C02\\0032LO.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_1b0cf7d2-5d38-47e8-b444-48471ab0c735.jpg?v=1739657906"},{"product_id":"stcov221bofo","title":"Stocks \u0026 Commodities V. 22:10 (117): Books For Traders by Technical Analysis, Inc.","description":"Stocks \u0026amp; Commodities V. 22:10 (117): Books For Traders by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eAnalysing \u0026amp; Interpreting The Yield Curve (359 pages, $79.95 hardcover, 2004, ISBN 0470821256) by\nMoorad Choudhry, published by John Wiley\n\u0026amp; Sons. The yield curve is the defining indicator\nof the global debt capital markets, and understanding\nit is vital to the smooth running of the economy. All participants in the market, whether they are issuers of capital, investors, or banking intermediaries, have a need to estimate, interpret, and understand the yield curve. Fund managers who accurately predict the shape and direction of the curve will consistently outperform those who do not. This book offers an intuitive account of a technical subject, market approaches to enable evaluation of the current and expected shape of the curve, and an opportunity\nto understand the latest analytical techniques.\nIt is a clear account of the topic written by an experienced practitioner.\u003cbr\u003e\u003cbr\u003eOther books in this review are: Advanced Swing Trading: Strategies To Predict, Identify, And Trade Future Market Swings by John Crane; Currency Overlay by Neil Record; Minding The Corporate Checkbook: A Manager's Guide To Successful Business Investments by Steven R. Kursh; The Options Trader Handbook: Strategies And Trade Adjustments by George Jabbour and Philip Budwick; Uncertainty And Expectation: Strategies For The Trading Of Risk by Gerald Ashley.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133930566001,"sku":"\\V22\\C10\\232BOOK.pdf","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_6514e51c-ba1a-4212-a839-71c139247776.jpg?v=1739657917"},{"product_id":"v221prrefuwo","title":"V. 22:8 (108-111): Product Review: FutureSource Workstation by David Penn","description":"Product Review: FutureSource Workstation by David Penn\u003cbr\u003e\u003cbr\u003eIs there a more prominent franchise\nin the world of futures\nnews, data, and analysis than\nFutureSource? I cannot\nthink of how many times Ive pulled a dusty volume from the voluminous\nshelves of the Technical Analysis,\nInc., library in search of wisdom from\nthe commodity traders and analysts of\nyore, only to find that wisdom accompanied\nby a price chart courtesy of\nFutureSource. This, of course, is not to\nsay that the futures industry has not\nbeen blessed with its share of heavy\nhitters over the years from top-notch\nanalyst and brokerage services and firms\nto publications (including the one you\nare currently reading) to data and chart\nsoftware providers. But few objective\nobservers could deny that if there was\none word that has been synonymous\nwith news, data, and analysis of the\nfutures markets over the past 25-odd\nyears, then that word would be\nFutureSource. In a world of many great\nchallengers and even greater champions,\nFutureSource remains in many ways The Franchise.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133935186289,"sku":"\\V22\\C08\\183PRFS.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_3dedc569-0f25-4ca8-a0a0-b418e0566b26.jpg?v=1739658132"},{"product_id":"stcov222catr","title":"Stocks \u0026 Commodities V. 22:11 (22-27): Candlestick Trading Principles by Steve Nison, CMT","description":"Stocks \u0026amp; Commodities V. 22:11 (22-27): Candlestick Trading Principles by Steve Nison, CMT\u003cbr\u003e\u003cbr\u003eCandlestick charts are available almost everywhere. Are you using them to their fullest potential?\u003cbr\u003e\u003cbr\u003eUntil I wrote about the technique of Japanese candlestick charting in the 1980s, they were unknown\nin the Western world. Since then, candlesticks have become ubiquitous, available in almost every software and online charting package. Why have candlestick charts become so popular? The answer is simple. When properly used, candlesticks let you seize trading opportunities by pinpointing early market turns and minimizing losses.\u003cbr\u003e\u003cbr\u003eHowever, the Japanese say that a wise hawk conceals its claws, and with the popularity of candles comes\nmisuse. Too many of those applying candlesticks are using them incorrectly. With this in mind, I have designed 12 trading principles to help traders capitalize\non candlestick charts by bolstering trading performance, decreasing market risk, and correcting the most common mistakes. I dont have enough\nroom to address them all in this article, but I will address four of the 12.\u003cbr\u003e\u003cbr\u003eTRADING PRINCIPLE 1: Candlesticks are easy to use but powerful in diagnosis.\u003cbr\u003e\u003cbr\u003eSince candlestick charts are now so accessible, why not learn how to harness their potential? What good is it to have them around unless you can use the insights they can provide?\u003cbr\u003e\u003cbr\u003eNonetheless, some technicians believe candlesticks aretoo complicated or there are too many patterns to understand. Untrue. Candlesticks are so easy to use and so powerful that once you learn even the basic concepts youll never go back to a bar chart. In addition, while there may be many candlestick signals, there are only a dozen or so key signals and patterns. I will explain how even a single significant candlestick can offer important trading insights.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133935382897,"sku":"\\C22\\C11\\238NIS.pdf","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_54703f1b-5d8e-4cdc-98f9-a161228554cd.jpg?v=1739658148"},{"product_id":"v227inchneof","title":"V. 22:9 (70-75): Interview: Christopher Neely Of The Federal Reserve by Jayanthi Gopalakrishnan","description":"Once in a while, we hear something coming out of the Federal Reserve we just dont expect. In this case, we heard about a technical analysisreceptive individual an economist, to boot! Christopher Neely is a research officer with the Federal Reserve Bank of St. Louis, where he has worked since receiving his doctorate from the University of Iowa in 1993. His research has been primarily in empirical international finance, but he has published papers on technical trading rules, foreign exchange intervention, and intertemporal asset pricing. In recent times, he has begun to research options markets.\u003cbr\u003e\u003cbr\u003eNeely is an associate editor at Quantitative Finance, Applied Economics, and co-editor of Journal of International Financial Markets, Institutions And Money. STOCKS \u0026amp; COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Neely via telephone on July 7, 2004.\u003cbr\u003e\u003cbr\u003eQ: How did you get interested in the work that you do?\u003cbr\u003e\u003cbr\u003eA: I got interested in technical analysis when I attended\na seminar, given by a guy named Blake LeBaron. I think it was 1991 or so. I became interested, but I didnt do anything about it until about 1995, when a colleague of mine suggested we work together on a study to develop technical trading rules with genetic programming.\u003cbr\u003e\u003cbr\u003eQ: What is genetic programming?\u003cbr\u003e\u003cbr\u003eA: It is a type of artificial intelligence that is related to genetic algorithms. It uses the principles of natural selection and recombination to develop successful\ntrading rules. We probably started working on that project in 1995.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133936890225,"sku":"\\V22\\C09\\199INT.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_a850501c-2f80-44ef-935d-0d098b4d0b9e.jpg?v=1739658265"},{"product_id":"stcov222qaby","title":"Stocks \u0026 Commodities V. 22:12 (20): Q\u0026A by Don Bright","description":"Stocks \u0026amp; Commodities V. 22:12 (20): Q\u0026amp;A by Don Bright\u003cbr\u003e\u003cbr\u003eSINCE YOU ASKED\u003cbr\u003e\u003cbr\u003eConfused about some aspect of trading? Professional trader Don Bright of Bright Trading (www.stocktrading.com), an equity trading corporation, answers a few of your questions. To submit a question, post your question to our website at http:\/\/\nMessage-Boards.Traders.com. Answers will be posted there, and selected questions will appear in a future issue of S\u0026amp;C.\u003cbr\u003e\u003cbr\u003ePROGRAM TRADES\u003cbr\u003e\u003cbr\u003eI read an online chat that talked about programmed trades occurring on the Nasdaq. I dont trade that market, but found it interesting. It made me wonder, with more than 50% of NYSE volume in programs, whether it is important to investigate that process and learn more about it. Currently, I am knowledgeable\nwith regard to index arbitration (program trades that work the premium), but know little about other types of program trades. To what extent does your training deal with that subject? I am hoping to find a resource for learning more about the subject generally. I appreciate any comment you might have Steve\u003cbr\u003e\u003cbr\u003eFirst, we have to define program trades. There is the legal definition, which has rigid guidelines and is subject to trading curbs and other restrictions. I prefer the broader definition, which includes any type of automated response to the market via programming.\nThis takes on many forms, from simple, if\/thentype DDE-link (dynamic data exchange) activated or ActiveX\nresponses, to elaborate massive line item order entries using FIX protocol.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133936988529,"sku":"\\V22\\C12\\261QA.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_c0e3c3c7-cee5-4f89-b8b2-bd4f20e1f772.jpg?v=1739658273"},{"product_id":"stcov228qaby","title":"Stocks \u0026 Commodities V. 22:11 (87): Q\u0026A by Don Bright","description":"Stocks \u0026amp; Commodities V. 22:11 (87): Q\u0026amp;A by Don Bright\u003cbr\u003e\u003cbr\u003eSINCE YOU ASKED\u003cbr\u003e\u003cbr\u003eConfused about some aspect of trading? Professional trader Don Bright of Bright Trading (www.stocktrading.com), an equity trading corporation, answers a few of your questions. To submit a question, post your question to our website at http:\/\/\nMessage-Boards.Traders.com. Answers will be posted there, and selected questions will appear in a future issue of S\u0026amp;C.\u003cbr\u003e\u003cbr\u003eENTERING ORDERS\u003cbr\u003e\u003cbr\u003eQ: If one wishes to enter orders (buying or selling) market-on-open and\/or market-on-close, what is the best way to achieve this on the various US stock exchanges?\u003cbr\u003e\u003cbr\u003eHow do you manage this for large orders and\/or in illiquid markets? Also, what are the mechanics for doing this? I believe the NYSE and AMEX accept\nMOO\/MOC (market on open\/market on close) orders, but the Nasdaq does not.\u003cbr\u003e\u003cbr\u003eCan you enter these orders fairly anonymously so as to avoid tipping your hand to the specialists\/market makers? To be clear, I am trying to find a way of achieving the opening or closing price with minimal slippage. Thanks in advance for your insights on this. CPTrader\u003cbr\u003e\u003cbr\u003eA: Any person or institution can enter MOO or MOC orders either directly via SuperDot or through his\/her\/its brokerage. This will be relatively anonymous; generally just the brokers give-up (acronym) shows up on the order.\u003cbr\u003e\u003cbr\u003eAs far as getting decent prices goes, it depends a lot on supply and demand on that particular day. Illiquid stocks will obviously move more than the blue chips when hit with large blocks.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133937021297,"sku":"\\V22\\C11\\249QA.pdf","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_dfedcdc9-c01c-41ad-9899-f2a9904ddf0d.jpg?v=1739658276"},{"product_id":"stcov222siex","title":"Stocks \u0026 Commodities V. 22:12 (28-36): Sidebar: Excel codes for trend trigger factor by M.H. Pee","description":"Stocks \u0026amp; Commodities V. 22:12 (28-36): Sidebar: Excel codes for trend trigger factor by M.H. Pee\u003cbr\u003e\u003cbr\u003eEXCEL CODES FOR TREND TRIGGER FACTOR\u003cbr\u003e\u003cbr\u003eThe Excel spreadsheet in sidebar Figure 1 shows all the required calculations for the 15-day trend trigger factor (TTF) on the euro between October 1, 2002, and January 15, 2003, inclusively. The data is represented in continuous contract format. The date, open, high, low, and close goes into column A, B, C, D, and E, respectively. The date is represented using eight digits, with the first four representing the year, the next two the month, and the last two the day. For example, 20030108 represents January 8, 2003.\u003cbr\u003e\u003cbr\u003eColumn F represents the 15-day buy power, which is\ndefined as the difference between the highest high of the first period and the lowest low of the second period. Enter the following Excel codes in cell F30 and copy it to the bottom of the spreadsheet. . .","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133939773809,"sku":"\\V22\\C12\\263SB.pdf","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_5cebe6dd-7847-49de-afe3-9380eb3eef7b.jpg?v=1739658473"},{"product_id":"stcov228wefo","title":"Stocks \u0026 Commodities V. 22:10 (81): Websites For Traders: FuturesExaminer.com by Jayanthi Gopalakrishnan","description":"Stocks \u0026amp; Commodities V. 22:10 (81): Websites For Traders: FuturesExaminer.com by Jayanthi Gopalakrishnan\u003cbr\u003e\u003cbr\u003eFUTURESEXAMINER.COM\u003cbr\u003e\u003cbr\u003eWhats the best trading system out there? Many of you have called the editorial staff at STOCKS \u0026amp; COMMODITIES to ask this question, but unfortunately,\nthere is no right answer. Its an individual thing: It all depends on what you trade and what you consider to be good. And given the plethora of trading systems out there, its really difficult, if not impossible, for me to come up with a definitive answer. For starters, I havent\ntried every single trading system out there, and to make it more difficult, most of the systems are proprietary, which makes it impossible to figure out how well they work. But recently, I came across www.FuturesExaminer.com, a site where several futures trading systems are ranked. Im sure most of you have heard of Futures Truth, a publication that ranks trading systems.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133939806577,"sku":"\\V22\\C10\\225WEB1.pdf","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_881bddf4-8168-441c-85d3-f6e385450522.jpg?v=1739658475"},{"product_id":"v229trtibyte4","title":"V. 22:7 (96-108): Traders' Tips by Technical Analysis, Inc.","description":"Traders Tips by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003e TRADESTATION: VFI PERFORMANCE\u003cbr\u003e\u003cbr\u003eMarkos Katsanos article in this issue, Volume Flow Indicator\nPerformance, provides four strategies for trading the\nvolume flow indicator (VFI). All four strategies are provided\nhere in TradeStation EasyLanguage. In addition, Katsanos\nintroduced a new indicator, the VFI-price divergence, which\nis also coded here.\u003cbr\u003e\u003cbr\u003eMost of the calculations are performed in the function\nVFISmoothed, which was given in the TradeStation tip in\nthe May 2004 Traders Tips column.\u003cbr\u003e\u003cbr\u003eWhen using these strategies, please remember to format\nyour strategy property for the maximum number of bars the\nstudy may reference. These strategies need to review a fairly\nlarge number of bars, so I used 250 bars.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133940953457,"sku":"\\V22\\C07\\158TIPS.PDF","price":5.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_2a3f1abf-c35c-4531-a85b-486c079520df.jpg?v=1739658564"},{"product_id":"stcov22111at1","title":"Stocks \u0026 Commodities V. 22:11 (130, 116): At The Close by Jayanthi Gopalakrishnan","description":"Stocks \u0026amp; Commodities V. 22:11 (130, 116): At The Close by Jayanthi Gopalakrishnan\u003cbr\u003e\u003cbr\u003eJust when I think I have a system in place and have it all figured out, the market pulls a fast one on me. Just when everything is moving along in one direction,\nsomething will happen to cause everyone to reverse direction, and very quickly. Whenever I see this happening, I cant help but remember a phrase I once\ncame across that I still consider to be a perfect description of the financial markets: Market participants are like a school of fish that all change direction at the same time.\u003cbr\u003e\u003cbr\u003eTo give you an idea of how accurate that statement is, I am going to share a trade with you. Its not necessarily\nan example of a good trade, but of course, at the time I thought it was fabulous. On September 1, 2004, the daily chart of the Standard \u0026amp; Poors 500 (Figure 1) showed that the index was hovering over the 50-day moving average. Judging by the reaction of prices to this moving average, I wasnt sure whether it would go up or down. But given that the moving average was sloping down, I decided that if I were to make a trade, it\nwould be to short the e-mini if the opportunity arose.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133941084529,"sku":"\\V22\\C11\\257CLOS.pdf","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_90dc13bd-20ec-4082-8859-7bf3fcf7ae83.jpg?v=1739658574"},{"product_id":"stcov228sifi","title":"Stocks \u0026 Commodities V. 22:10 (86): Sidebar: Fitting a trendline by least squares by Arthur A. Merrill","description":"Stocks \u0026amp; Commodities V. 22:10 (86): Sidebar: Fitting a trendline by least squares by Arthur A. Merrill\u003cbr\u003e\u003cbr\u003eTrendlines usually are drawn through tops or bottoms. They also are drawn through the center of prices by a lagged moving average or by eye. A straight line through the center of a price channel, if the scale is logarithmic, will give you the percentage growth or decline rate.\u003cbr\u003e\u003cbr\u003eIf the straight line is drawn by eye, it is subject to debate. This doubt can be resolved by a mathematically calculated line called least squares. The deviations of the points from the line are A, B, C, D and E in Figure 1. The line produced by the least squares calculation reduces the sum of the squares of these deviations to a minimum, hence the name least squares.\u003cbr\u003e\u003cbr\u003eNow, the formula for a straight line is:\u003cbr\u003e\u003cbr\u003eY = a + bX","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133941117297,"sku":"\\V22\\C10\\226sb.pdf","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_109362af-b5a9-4d8e-8a3c-1cefbe06c877.jpg?v=1739658577"},{"product_id":"v22778ingaka","title":"V. 22:2 (76, 78-81): Interview: Gary Kaltbaum by Jayanthi Gopalakrishnan","description":"Interview: Gary Kaltbaum by Jayanthi Gopalakrishnan\u003cbr\u003e\u003cbr\u003eGary Kaltbaum, a well-known technical analyst and host of the\nnationally syndicated radio program Investors Edge, specializes in\nidentifying and trading growth stocks in the intermediate-term time\nframe. Kaltbaum is also an investment advisor with over $125 million\nunder management. Not only that, he is a FOX News Channel business\ncontributor and has been frequently quoted in the financial and\nnational media, including the Associated Press organization, and\nUSA Today, The Wall Street Journal, as well as other major venues.\nHis upcoming book, How I Trade The Markets, will be published in the\nsecond quarter of 2004.\u003cbr\u003e\u003cbr\u003eWhat does Kaltbaum have to say about the current markets and the\nbest way to trade and analyze them? To find out, STOCKS \u0026amp; COMMODITIES\nEditor Jayanthi Gopalakrishnan spoke with Kaltbaum on Tuesday,\nNovember 25, 2003.\u003cbr\u003e\u003cbr\u003eHow did you get started in technical\nanalysis?\u003cbr\u003e\u003cbr\u003eBasically, in 1990 or so, a\nfriend of mine showed me\nthe daily graphs that ONeil \u0026amp; Co. publishes, and I got hooked.\u003cbr\u003e\u003cbr\u003eHow do technicians like you survive in\na world where technical analysis\ndoesnt get the respect it deserves?\u003cbr\u003e\u003cbr\u003eFrankly, I love it. The more people\ntell me it doesnt work, the more I know\nit does work, and the more people that\ntell me its voodoo, God bless em,\nthats all I can tell you. When everybody\ntells me it works, thats when Ill\nstart worrying.\u003cbr\u003e\u003cbr\u003eAre there any specific patterns or indicators\nyou look at?\u003cbr\u003e\u003cbr\u003eThe most important thing I look for is\nprice and volume. I first look at sectors\nto determine which ones are the strongest\nin the market. Next, I look at what\nstocks are involved in those sectors. We\nlook for names that are building bases;\nwere looking for an area of support and\nresistance over a good period of time.\nSecond, we look for the ability of stocks in that group to break out of\nthose bases on heavy volume.\u003cbr\u003e\u003cbr\u003eThe more sectors that\nparticipate in that breakout,\nthe better you know the\nmarkets going to be, and\nthe more stocks that participate,\nthe better the\nmarkets going to be. We\ntry not to go too far forward,\nthough; I try not to\npredict. Im not one of those\ntechnicians who say, By\nthe end of the year well be\nat 12,000 on the Dow\nJones. The most important\nthing is to interpret in that group to break out of\nthose bases on heavy volume.\nThe more sectors that\nparticipate in that breakout,\nthe better you know the\nmarkets going to be, and\nthe more stocks that participate,\nthe better the\nmarkets going to be. We\ntry not to go too far forward,\nthough; I try not to\npredict. Im not one of those\ntechnicians who say, By\nthe end of the year well be\nat 12,000 on the Dow\nJones. The most important\nthing is to interpret today,\nand thats all you need to know\ntoday.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133942624625,"sku":"\\V22\\C02\\0037INTR.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_a343fd51-44b1-4edc-b0d4-f1cff92106c6.jpg?v=1739658694"},{"product_id":"v228exyoopby1","title":"V. 22:5 (80): Explore Your Options by Tom Gentile","description":"Explore Your Options by Tom Gentile\u003cbr\u003e\u003cbr\u003eCOVERED CALLS\u003cbr\u003e\u003cbr\u003eIf I write a covered call for a stock I\nbought at 30.50, am I allowed to place\na stop-loss price, say, 27.00, to protect\nit from further decline? What happens\nif the stop-loss price is triggered?\u003cbr\u003e\u003cbr\u003eAlthough one of the components of\na covered call is the underlying stock,\nit is still a spread, since it contains a\ncombination of both a long and a short\nposition. Most brokers do not place\nstop orders on spreads. However, you\ncan probably place what is known as a\ncontingency order, in which the spread\nis sold based on the stock price alone.\nIf, for example, you decide that you\nwish to sell the spread when the stock\nhits 27, the contingency order will automatically\nsell your spread at the price\nyou specify or at the market. But again,\nthis is up to each individual broker and\nis something you should ask about.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133942657393,"sku":"\\V22\\C05\\103GENT.pdf","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_73b84624-faa6-45a1-8d6c-4fddc04d2817.jpg?v=1739658696"},{"product_id":"stcov221leto2","title":"Stocks \u0026 Commodities V. 22:12 (10-13): Letters To S\u0026C by Technical Analysis, Inc.","description":"Stocks \u0026amp; Commodities V. 22:12 (10-13): Letters To S\u0026amp;C by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eThe editors of S\u0026amp;C invite readers to submit their opinions and information on subjects relating to technical analysis and this magazine. This column is our means of communication with our readers. Is there something you would like to know more (or less) about? Tell us about it. Without a source of new ideas and subjects coming from our readers, this magazine would not exist.\u003cbr\u003e\u003cbr\u003eAddress your correspondence to: Editor, STOCKS \u0026amp; COMMODITIES, 4757 California Ave. SW, Seattle, WA 98116-4499, or email to Editor@Traders.com. All letters become the property of Technical Analysis, Inc. Letter-writers must include their full name and address\nfor verification. Letters may be edited for length or clarity. The opinions expressed in this column do not necessarily represent those of the magazine.Editor\u003cbr\u003e\u003cbr\u003eNOVICE TRADER\u003cbr\u003e\u003cbr\u003eEditor,\u003cbr\u003e\u003cbr\u003eIm a new subscriber to S\u0026amp;C magazine, as well as a novice investor. Id like to thank you for the articles aimed at those of us who are relatively new to technical\nanalysis, such as the ones on candlestick charting. The articles are well written, educational, and easy to understand. Please continue to publish this kind of article and keep up the good work.\u003cbr\u003e\u003cbr\u003eSTEVE HOWELL\nTaylor, MI","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133942788465,"sku":"\\V22\\C12\\259LET.pdf","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_86e84e73-6fd0-4431-9dfe-1f646471fa26.jpg?v=1739658707"},{"product_id":"stcov222vodi","title":"Stocks \u0026 Commodities V. 22:4 (22-28): Volume Divergence by Hal Masover","description":"Stocks \u0026amp; Commodities V. 22:4 (22-28): Volume Divergence by Hal Masover\u003cbr\u003e\u003cbr\u003eDivergence in volume and price give clues to future price movement.\u003cbr\u003e\u003cbr\u003eOne of the first things I learned about trading was to search for divergences. Briefly, divergence simply refers to the circumstance of price going one way but not being confirmed by any number of possible other confirming indications.\u003cbr\u003e\u003cbr\u003eThe first one I learned to use and still like is stochastic divergence. This was developed by George Lane and\nis available on virtually any charting software. In Figure 1, I have reproduced stochastic divergence on a fiveminute chart of the Standard \u0026amp; Poors 500 index from April 10, 2003.\u003cbr\u003e\u003cbr\u003eSee how the price makes three consecutive lower lows from the previous afternoon low labeled 1, 2, and 3? Now look at the stochastic indicator right below the chart. The indicator makes higher lows over this same time. This is divergence.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133942821233,"sku":"\\V22\\C04\\070MASO.pdf","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_c830dd1f-a1e6-47a7-8e20-14b251119173.jpg?v=1739658709"},{"product_id":"stcov225usvo","title":"Stocks \u0026 Commodities V. 22:11 (56-59): Using Volume To Detect Shifts In Power by Vadim Gimelfarb","description":"Stocks \u0026amp; Commodities V. 22:11 (56-59): Using Volume To Detect Shifts In Power by Vadim Gimelfarb\u003cbr\u003e\u003cbr\u003eWho has control: The bulls or the bears?\u003cbr\u003e\u003cbr\u003eVolume plays an important part in stock market\ndynamics. However, the kind of information that triggers the volume increase or decrease accompanying price changes is much less evident.\u003cbr\u003e\u003cbr\u003eVOLUME VS. PRICE\u003cbr\u003e\u003cbr\u003eTo use as examples, I can point to two articles in the January 2004 STOCKS \u0026amp; COMMODITIES. One, written by D.W. Davies, is based on Joseph Granvilles classic approach and describes the use of on-balance volume in daytrading.\u003cbr\u003e\u003cbr\u003eThe thesis of this approach is that volume increase confirms and often precedes price increase, while a decrease in volume signals a high probability of a slowdown in the price increase and the possibility that prices will reverse.\u003cbr\u003e\u003cbr\u003eAccording to Granville, an increase in volume reflects the accumulation process, which is a prerequisite for an increasing trend to be stable. Anthony Trongone, the author of the other S\u0026amp;C article, notes that contrary\nto the classic theory, his observations for short-term periods show that a volume increase accompanying price growth is likely to be a bearish signal, while a decrease in volume during price growth is bullish. At the same time, volume growth during price decrease\nindicates a likely change in direction, while volume decrease suggests a continuation. This, in general, is in accord with Granvilles theory.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133942854001,"sku":"\/V22\/C11\/243GIML.pdf","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_8e70235d-250f-4ef4-920d-1c5ae841ea14.jpg?v=1739658711"},{"product_id":"stcov224whis","title":"Stocks \u0026 Commodities V. 22:12 (42-45): Where Is The Weakest Link? by Damir Smitlener","description":"Stocks \u0026amp; Commodities V. 22:12 (42-45): Where Is The Weakest Link? by Damir Smitlener\u003cbr\u003e\u003cbr\u003eWith the year coming to a close, its a good time to\nrevisit your trading system. Here are a few things to\nconsider that you may never have thought of.\u003cbr\u003e\u003cbr\u003eVaried and various forms of technical analysis have been used to determine which way the market will go. Much of this effort has been devoted to creating\nindicators that are used to find turning points and identify trends. Despite that effort, most traders fail to extract a living from the markets. It is widely assumed that these failures arent due to specific techniques, but\nrather to the limitations of the traders who are attempting to follow the techniques.\u003cbr\u003e\u003cbr\u003eBut what happens if you stand this idea on its head? What if you assume traders are in fact not the weak link in the chain, and the problem lies instead in the most common clichs embodied by technical analysis? What if you stop trying to ride trends and eliminate stop-losses?\u003cbr\u003e\u003cbr\u003eA PROFITABLE TRADING SYSTEM\u003cbr\u003e\u003cbr\u003ePerhaps the best-known trend-following system is the Turtle approach that trader Richard Dennis made famous in the 1980s. Simply, this approach waits for a 20-day breakout, either up or down, then takes a position in the same direction. One explicit assumption of this technique is that most breakouts will not lead to profits. Consequently, a built-in loss-prevention algorithm keeps you in the game long enough to catch the big moves. But if so many breakouts are in fact false, then it should theoretically be possible to find a system that profits from that.\u003cbr\u003e\u003cbr\u003eWhat about stop-losses? A traditional stop-loss is a price-based, predetermined exit that is placed in order to mitigate damage from an adverse market move. This definition may seem to imply that losses are a function of being wrong. That is not, however, completely accurate: losses are also a function of position size. While seemingly obvious, this detail is often overlooked.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133944852849,"sku":"\\V22\\C12\\265SMIT.pdf","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_d5d066a7-77cc-4ff7-9c2b-ccdb14bd254c.jpg?v=1739658792"},{"product_id":"stcov221bofo1","title":"Stocks \u0026 Commodities V. 22:12 (128): Books For Traders by Technical Analysis, Inc.","description":"Stocks \u0026amp; Commodities V. 22:12 (128): Books For Traders by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eApplying Elliott Wave Theory Profitably (222 pages, $69.95, hardcover, 2003, ISBN 0-471-42007-7) by Steven W. Poser, published by John Wiley \u0026amp;\nSons.\u003cbr\u003e\u003cbr\u003eDuring the late 1920s, Ralph Nelson Elliott theorized\nthat stock markets do not behave in a random, chaotic manner, but rather move in cycles, reflecting the actions and emotions of human mass psychology. Elliott believed that the ebb and flow of mass psychology reveals itself in repetitive patterns, or waves. This book makes sense of this proven trading strategy and gives you a straightforward lesson on how to make money\nusing Elliott wave theory. This book will take you through the process of understanding how and why Elliott wave theory works.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133961728369,"sku":"\\V22\\C12\\282BOOK.pdf","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_1ba1ff1b-87d7-4199-ac23-707235d8c9a9.jpg?v=1739658900"},{"product_id":"stcov221endo","title":"Stocks \u0026 Commodities V. 22:12 (14-18): The End Of The Trend by Cornelius Luca","description":"Stocks \u0026amp; Commodities V. 22:12 (14-18): The End Of The Trend by Cornelius Luca\u003cbr\u003e\u003cbr\u003eYoure riding along with the trend, watching your returns consistently increase. You know its not going to go\non forever but how do you know when itll end?\u003cbr\u003e\u003cbr\u003eAs much as we like trends and their inherent profitability, all good things must eventually come to an end. Dealing with their demise is easier said than done; its not only that traders loathe parting\nwith a good thing, but ending trends is often a messy affair that can take its toll on your budget. However, there are several reversal formations you can watch for that may give you a warning that the trend is almost over.\u003cbr\u003e\u003cbr\u003eThe most significant trend reversal patterns are the\nfollowing:\u003cbr\u003e\u003cbr\u003e1. Head \u0026amp; shoulders and inverse head \u0026amp; shoulders\u003cbr\u003e\u003cbr\u003e2. Double top and double bottom\u003cbr\u003e\u003cbr\u003e3. Triple top and triple bottom\u003cbr\u003e\u003cbr\u003e4. V-top\u003cbr\u003e\u003cbr\u003eArguably, the second tier of reversal formations are:\u003cbr\u003e\u003cbr\u003e1. Rounded top and rounded bottom\u003cbr\u003e\u003cbr\u003e2. Rectangle reversal\u003cbr\u003e\u003cbr\u003e3. Diamond\u003cbr\u003e\u003cbr\u003e4. Upthrust and spring\u003cbr\u003e\u003cbr\u003eThis article will analyze the head \u0026amp; shoulders formation, using currency pairs as examples.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133961761137,"sku":"\\V22\\C12\\260LUCA.pdf","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_6aa0eb3e-6732-4f6c-bcdb-e5d16ed28580.jpg?v=1739658902"},{"product_id":"v228enrewimu1","title":"V. 22:8 (86-89): Enhanced Returns With Mutual Funds by Norman J. Brown","description":"Enhanced Returns With Mutual Funds by Norman J. Brown\u003cbr\u003e\u003cbr\u003eIs buy and hold the best strategy when\nit comes to mutual funds? Heres a\nmutual fund switching technique that\nuses multiple-fund ranking to improve\nreturns.\u003cbr\u003e\u003cbr\u003eIn my earlier articles, I\nshowed it was possible\nto switch a persistent\nfund using a\ntechnique I called\none rank, or OR. The technique resulted in a significant\nimprovement in annual return (Ann)\nand a reduction in maximum drawdown\n(Mdd). The term one rank\nimplies ranking a single mutual fund\ndaily, buying on an up day (return\nof fund positive), and selling any\nday the fund is down (return negative).\nFurther enhancement of Ann is made possible by\nadding a second fund, a beta = -1.0 version of the basic\nfund. This approach is equivalent to selling short during\nthe OR out of market period (when normally invested in\na money market). A simple equation closely approximated\nthe resulting ORLS (OR using both a long and short fund\nswitching approach). The formula for the net up days per\nyear for ORLS is:\u003cbr\u003e\u003cbr\u003eORLS (net days up) = N 4S\n(Equation 1)\u003cbr\u003e\u003cbr\u003ewhere N is 252 market days per year and S is the number of\nbuys and sells per year. This number of net days then leads to\nthe ORLS Ann, given by:\u003cbr\u003e\u003cbr\u003eGORLS = [1 + (%Avg Pos Rtn) \/ 100 ][N-4S]\n(2)","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133964611953,"sku":"\\V22\\C08\\177BRWN.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_64fa11b9-1edf-4b8a-a02f-13296d8cfb33.jpg?v=1739659115"},{"product_id":"stcov225dopu","title":"Stocks \u0026 Commodities V. 22:4 (52-55): Dollar-Weighted Put\/Call Ratios by Fari Hamzei and Barbara Star Ph.D.","description":"Stocks \u0026amp; Commodities V. 22:4 (52-55): Dollar-Weighted Put\/Call Ratios by Fari Hamzei and Barbara Star Ph.D.\u003cbr\u003e\u003cbr\u003eDoes this new twist on the popular sentiment indicator hold some predictive value? Find out here.\u003cbr\u003e\u003cbr\u003eMany years have passed since Martin\nZweig used end-of-day option trading activity to create the put\/call ratio. Since then, it has been widely followed as a measure of market sentiment. It reflects the emotional aspect of trading by identifying the degree to which traders feel optimistic or pessimistic about near-term market direction. Because it reveals what traders are thinking, many believe that the put\/call ratio holds some predictive value.\u003cbr\u003e\u003cbr\u003eThe original put\/call ratio is based on total option contract volume for the day. It aggregates all put and call option volumes into one ratio. But options traders know that prices fluctuate throughout the day, and thus,\nnot all contracts for a given stock or index are created equal. Wouldnt it make more sense to track changes in option trading on a real-time basis and incorporate both price and volume in the calculation? That was the\npremise Fari Hamzei wanted to test. He managed to create the code and gather the information needed to produce real-time, dollar-weighted put\/call ratios, thanks to improved computer technology and Internet speed.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133964710257,"sku":"\\V22\\C04\\075HAMZ.pdf","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_e6c1820c-0ba9-4f34-bdd2-7d961a99e501.jpg?v=1739659122"},{"product_id":"v225fotrplan","title":"V. 22:6 (52-58): Forex Trading Platforms And The Real World by Chris Melendez","description":"V. 22:6 (52-58): Forex Trading Platforms And The Real World by Chris Melendez\u003cbr\u003e\u003cbr\u003eHere are some of the properties and pitfalls of online retail trading platforms versus the institutional foreign exchange execution systems.\u003cbr\u003e\u003cbr\u003eTodays foreign exchange markets are rapidly acquiring new traders and investors. Many daytraders and equity investors imagine they can easily become forex traders. But those who venture into the world of foreign exchange are often handicapped by the lure of quick money and by systems that are designed to benefit the trading platform operator, not necessarily the individual trader.\u003cbr\u003e\u003cbr\u003eThe equity fallout of the last few years has drawn stock and commodity traders to the foreign exchange market. But I consider the retail forex market to be much like the Wild West; there are no benchmarks with which the industry can align itself. There are no set parameters, nor are there consistent rules. There is no central agency or body where standards can be set and enforced. Platform operators are aware of all this, and that is where problems arise.\u003cbr\u003e\u003cbr\u003eThere are important areas to discuss when it comes to\ntrading platforms: leverage, highs and lows, hedging, commission (or lack thereof), slippage, re-quote, interest rates, and choosing a platform.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133966152049,"sku":"\\V22\\C06\\119MELE.pdf","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_eb8efe8d-ddb5-4b0e-950c-e78e17821fcb.jpg?v=1739659210"}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/collections\/volume-22-2004-18.gif?v=1739677666","url":"https:\/\/shop.traders.com\/collections\/volume24\/issue-05.oembed","provider":"Stocks \u0026 Commodities","version":"1.0","type":"link"}