{"title":"Volume 29 (2011)","description":"\u003cp\u003eBrowse Volume 29 (2011) articles by issue:\u003c\/p\u003e\u003cdiv style=\"display:flex;flex-wrap:wrap;gap:12px;\"\u003e\n\u003ca href=\"\/collections\/volume292011\/issue-01?sort_by=title-ascending\"\u003eJanuary\u003c\/a\u003e\u003ca href=\"\/collections\/volume292011\/issue-02?sort_by=title-ascending\"\u003eFebruary\u003c\/a\u003e\u003ca href=\"\/collections\/volume292011\/issue-03?sort_by=title-ascending\"\u003eMarch\u003c\/a\u003e\u003ca href=\"\/collections\/volume292011\/issue-13?sort_by=title-ascending\"\u003eBonus Issue\u003c\/a\u003e\u003ca href=\"\/collections\/volume292011\/issue-04?sort_by=title-ascending\"\u003eApril\u003c\/a\u003e\u003ca href=\"\/collections\/volume292011\/issue-05?sort_by=title-ascending\"\u003eMay\u003c\/a\u003e\u003ca href=\"\/collections\/volume292011\/issue-06?sort_by=title-ascending\"\u003eJune\u003c\/a\u003e\u003ca href=\"\/collections\/volume292011\/issue-07?sort_by=title-ascending\"\u003eJuly\u003c\/a\u003e\u003ca href=\"\/collections\/volume292011\/issue-08?sort_by=title-ascending\"\u003eAugust\u003c\/a\u003e\u003ca href=\"\/collections\/volume292011\/issue-09?sort_by=title-ascending\"\u003eSeptember\u003c\/a\u003e\u003ca href=\"\/collections\/volume292011\/issue-10?sort_by=title-ascending\"\u003eOctober\u003c\/a\u003e\u003ca href=\"\/collections\/volume292011\/issue-11?sort_by=title-ascending\"\u003eNovember\u003c\/a\u003e\u003ca href=\"\/collections\/volume292011\/issue-12?sort_by=title-ascending\"\u003eDecember\u003c\/a\u003e\n\u003c\/div\u003e","products":[{"product_id":"stcov295fufo","title":"Stocks \u0026 Commodities V. 29:5 (54): Futures For You by Carley Garner","description":"Futures For You by Carley Garner\u003cbr\u003e\u003cbr\u003eDISTINCTIVELY DIFFERENT DELIVERY\u003cbr\u003e\u003cbr\u003eWhy are there dramatic differences in the way the yen is quoted in the futures market relative to the foreign exchange market?\u003cbr\u003e\u003cbr\u003eThere are distinct differences between the futures and the forex markets that create dramatically different pricing for the yen, yet in both markets the currencys inherent value will always be similar. For starters, yen futures and the dollar\/yen currency pair in forex are each quoted in different terms; second, forex contracts represent immediate delivery and futures represent future delivery, which causes some variation in pricing.\u003cbr\u003e\u003cbr\u003eAlthough speculators are essentially betting on the same underlying assets when trading currencies in either the forex or futures market, very different standards are set in each trading arena. For instance (ignoring the relatively new currency pair futures introduced by the Cme Group and Ice), the traditional Cme Group currency futures are all paired against the US dollar. Specifically, all are quoted and traded in terms in which the dollar is the quote currency. The price you are buying or selling a currency futures contract at is quoted in terms of the US dollar. For instance, if the euro is trading at 1.3345, it takes exactly $1.3345 to purchase a single euro.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133905039729,"sku":"081GARNPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_cbfb9568-5e1a-45f2-b9fe-8e9ae0cb8633.jpg?v=1739656303"},{"product_id":"stcov296trti6","title":"Stocks \u0026 Commodities V. 29:10 (63-70,79): Traders' Tips by Technical Analysis, Inc.","description":"Traders' Tips by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eFor this months Traders Tips, the focus is\nJay Kaeppels article in this issue, The JK\nHiLo Index. Additional Traders Tips presented\nhere are based on topics of the contributors\nchoosing.\nSpreadsheet formulas are already provided\nin Kaeppels article. Subscribers will also\nfind the same formulas at the Subscribers\nArea of our website, www.Traders.com. Presented here\nis an overview of possible implementations for other software.\nTraders Tips are provided to help the reader implement\na selected technique from an article in this issue.\nThe entries are contributed by various software developers\nor programmers for software that is capable of customization.\nReaders will find all the code listings that accompany\nthe following Traders Tips at our website, Traders.com.\nTo locate Traders Tips at our website, use our sites\nsearch engine, or click on the Traders Tips link from our\nhome page. For past Traders Tips, click on the Stocks\n\u0026amp; Commodities link from our home page in the red box\non the left, then click on the Article Abstracts link in the\nred box on the left, then click on the issue of interest, then\non Traders Tips.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133905105265,"sku":"170TIPSPDF","price":4.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_ae872144-1f81-4947-8f29-f83fd20837ae.jpg?v=1739656306"},{"product_id":"stcov29234br","title":"Stocks \u0026 Commodities V. 29:1 (22-23, 34): Breakaway Gaps by Kenneth Gilliland","description":"Breakaway Gaps by Kenneth Gilliland\u003cbr\u003e\u003cbr\u003eThere are many different types of gaps, but this one provides the best riskreward ratio.\u003cbr\u003e\u003cbr\u003eA gap up in a stocks price is an exciting event. Usually, such moves will be covered by the financial media, creating hysteria and resulting in some people frantically buying the stock before its too late. Rarely do the pundits provide a reasoned and thorough explanation as to why the large jump in price will lead to any sort of substantial gains over the near future; they just report the awe-inspiring numbers without touching on their technical significance. Sometimes, armed with simply a headline, the uninformed will buy the stock and get lucky. Over the long term, however, this strategy is bound to fail, as a large gap up in price does not necessarily mean the stock will continue to rise. It is possible to trade these large price moves and jump on a profit-making trend, provided you learn to recognize the patterns that are more likely to succeed.\u003cbr\u003e\u003cbr\u003eThere are various types of gaps including common, runaway, and exhaustion gaps. For our purposes, however, the one we will concern ourselves with is the breakaway. From a trading perspective, it provides the best riskreward ratio when compared to other price gaps.\u003cbr\u003e\u003cbr\u003eWHY BREAKAWAY GAPS OCCUR\u003cbr\u003e\u003cbr\u003eJust like gasoline, beachfront property, shoes, or any other commodity, the price of a stock is affected by the forces of supply and demand. If demand is greater than supply, the price of an item will rise. Conversely, if supply is greater than demand, the price of the item will fall. If you are a trend-follower, you may be of the opinion that stock prices generally move up or down in a uniform fashion. However, if a situation has dramatically changed, it may cause the demand to rise or fall, resulting in a stock price gapping up (or down). Some examples of when a breakaway gap may form are an earnings surprise, award of a new government contract, or the possibility of a buyout. Will the stock continue to rise? We can never know for sure, but the charts give us some clues as to whether it might be worth entering a trade and riding the trend.\u003cbr\u003e\u003cbr\u003ePRICE MOVES OUT OF TRADING RANGE\u003cbr\u003e\u003cbr\u003eA breakout of a trading range is the main distinction that separates breakaway gaps from other types of price gaps (Figure 1). A quick look at a chart can tell you whether this has occurred. If a stock has been trading between $20 and $25 for three months and suddenly gaps up and moves out of that range, you may have a candidate for a breakaway gap. There is no set period of time, but the longer a stock remains in a trading range, the more significant the movement out of that range. Gaps that occur within a trading range are deemed common gaps. They are questionable and should not be traded, as the stock has yet to prove that it can move to the next level beyond the current range; those that occur at the end of a downtrend are also suspect. While this may forecast the possibility of a trend reversal, this is not the sort of price move we are discussing.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133907005809,"sku":"005GILLPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_6669ddda-3214-4740-851c-413e1eb4b8a7.jpg?v=1739656427"},{"product_id":"stcov293cois","title":"Stocks \u0026 Commodities V. 29:5 (38-44): Context Is Everything by Gil Morales and Chris Kacher","description":"Context Is Everything by Gil Morales and Chris Kacher\u003cbr\u003e\u003cbr\u003eThis is how you use stock and index charts to determine market context.\u003cbr\u003e\u003cbr\u003eYou do not have to be a Chartered Market Technician to understand how market context can influence the price behavior of stocks. No stock is an island, and how a stock behaves is often a function of the market at large, which in turn is a function of underlying conditions the context within which any particular market environment is developing.\u003cbr\u003e\u003cbr\u003eIn the simplest of terms, we know that in a bull market, most stocks go up, and in a bear market, most stocks go down, so this basic idea that market context can provide meaningful clues when studying stock charts is already something we are familiar with when we speak of bull and bear market environments.\u003cbr\u003e\u003cbr\u003eIT'S THE CONTEXT\u003cbr\u003e\u003cbr\u003eWhile the use of stock charts can be very complex, often the exercise of comparing the price behavior of a stock to a chart of the market as represented by, for example, a major market index such as the Nasdaq Composite Index or the Standard \u0026amp; Poors 500 can help you understand a stocks potential strength. You are also able to better understand why certain price movements are evident in a stocks overall price chart. When it comes to understanding the price\/volume behavior of stocks, context is everything.\u003cbr\u003e\u003cbr\u003eTHE PATTERNS DON'T HAVE TO BE PERFECT\u003cbr\u003e\u003cbr\u003eIn autumn 1998 the stock market was experiencing a very sharp selloff in a very short period of time: a sort of instant bear market that lasted not quite three months but saw the Nasdaq fall 33% from peak to trough in that time. In Figure 1 we see the Nasdaq Composite Index daily chart from that period stacked on top of a daily chart of Charles Schwab, Inc. (Schw), one of the early leaders that emerged from the market bottom of October 1998. In this example, the Nasdaq came down in a series of three very sharp waves, the first ending in early August, the second in early September, and the third in early October.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133907038577,"sku":"078MORAPDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_913813f5-d9ae-40cd-bb2c-e1a202c19492.jpg?v=1739656429"},{"product_id":"stcov293stwi","title":"Stocks \u0026 Commodities V. 29:9 (38-41): Stocks With Problems Falling Off A Cliff by Theresa Fernandez","description":"Stocks With Problems Falling Off A Cliff by Theresa Fernandez\u003cbr\u003e\u003cbr\u003eFor an investor, there is nothing worse than holding on to a stock and watching its price just keep going down. The news may be good, revenues may be growing, and the company s profitability may be encouraging. So what is going on? Not too long ago, investors could hold on through bull and bear markets to stocks that rewarded their loyalty by returning to their bull market highs once the bear got tired. They could hold on to those glamour or blue-chip stocks because those tradables would always come back. And as they waited patiently for their stocks to come back, investors would always count on those dividends. One way or another, they couldnt lose.\u003cbr\u003e\u003cbr\u003eBUT TIMES, THEY ARE CHANGING\u003cbr\u003e\u003cbr\u003eAmerican International Group (AIG) was such a stock. From 1984 the stock exploded to a high of $157.19 in July 1997 after splits. Aig has paid dividends from 1992 to 2008, with yields averaging 8.9% from 2000 to 2006.\u003cbr\u003e\u003cbr\u003eThen there was Citigroup (C). The merger between Citicorp, the holding company of Citibank, and Travelers Group in 1998 created a $140 billion firm with assets of almost $700 billion. Although C had not displayed spectacular performance through the years, investors could rely on their dividends, which were paid every year from 1988 to 2007, with an average yield of 1.4% over the 19882007 period.\u003cbr\u003e\u003cbr\u003eAnd what about General Motors (GM)? Since its founding in 1908, GM grew to the worlds second-largest automobile manufacturer in terms of sales. While its stock price was so-so over the 19622007 period, investors could always rely on dividends; GM has been paying them since 1985 to 2007, with yields averaging 5.0%. For decades, GM was secure that their investment had nowhere to go but up. Investors were unmoving in their belief that as goes GM, so goes the stock market.\u003cbr\u003e\u003cbr\u003ePRICES CAN PLUMMET\u003cbr\u003e\u003cbr\u003eAll three stocks had in common a falling off a cliff pattern that became apparent in their charts months before their troubles became public. The pattern has the look of a mountain that rises ever higher, then slopes lower, and suddenly drops over a period of one to eight weeks. Price action just before the cliff is on average volume, drops off on significantly higher volume, sometimes displaying the heaviest volume at the bottom of the cliff.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133907071345,"sku":"148FERNPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_713598ff-20a8-4507-a097-b0885ed0cc97.jpg?v=1739656432"},{"product_id":"stcov29871le","title":"Stocks \u0026 Commodities V. 29:3 (8-9, 71): Letters To S\u0026C by Technical Analysis, Inc.","description":"Letters To S\u0026amp;C by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eTHE CLEAR METHOD\u003cbr\u003e\u003cbr\u003eEditor,\u003cbr\u003e\u003cbr\u003eIt was with great interest that I read Ron Black’s article in the September 2010 issue of your magazine, “Getting Clear With Short-Term Swings.” The concept is simple and signals are easy to follow (the best starting point for any indicator!).\u003cbr\u003e\u003cbr\u003eIn the article, the author provided the EasyLanguage code for displaying the swing line. But since many readers want to implement indicators using a spreadsheet, I decided to translate the Clear method to Excel.\u003cbr\u003e\u003cbr\u003eI am providing a spreadsheet with the Clear method applied to the S\u0026amp;P 500 (“Clear Spx.xls”) as well as a Word document explaining how to enter formulas in Excel. I have contacted the author, Ron Black, as a check, and he has now also contributed a macro code listing (SwingLine.xls) for those who may want to use it.\u003cbr\u003e\u003cbr\u003eI hope this helps those readers who rely on Excel to exercise technical analysis.\u003cbr\u003e\u003cbr\u003eMarco Alves\u003cbr\u003e\u003cbr\u003eThank you for providing this Excel spreadsheet translation to share with other readers.\u003cbr\u003e\u003cbr\u003eReaders will find these Excel files (Clear Spx.xls and SwingLine.xls) and Word file (“Implementing the Clear Method_Excel(R).doc”) available at our website at www.Traders.com in the Subscriber Area. Login requires your subscriber number and last name.\u003cbr\u003e\u003cbr\u003e—Editor","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133907104113,"sku":"V29C03-037LETTPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_5ed48015-969c-4b8f-a4eb-c5f6205d8904.jpg?v=1739656434"},{"product_id":"stcov294mayo","title":"Stocks \u0026 Commodities V. 29:8 (44-49): Manage Your Trades With Elliott Wave by Ryan Henry","description":"Manage Your Trades With Elliott Wave by Ryan Henry\u003cbr\u003e\u003cbr\u003eWhen should you take a position, where should you take a gain, and when should you call it quits? Heres how you can identify entry, stop, and target levels for your trades.\u003cbr\u003e\u003cbr\u003eThe easy part of investing in stocks is getting into a trade. You study the chart, understand the companys business and fundamentals, find your buy point, and then dive in with big expectations. But whats next? How do you know when to take your gains off the table, or more important, when to tuck your tail and run when it goes against you?\u003cbr\u003e\u003cbr\u003eSHOULD AND SHOULDN'T\u003cbr\u003e\u003cbr\u003eMany traders know that you must protect your investment with a stop level, because no matter how much sweat and tears you put into your research, there will be plenty of times when it doesnt matter and the stock goes the other way. The answer for many has been to use a trailing stop say, 5% below their entry point. This seems like a rational conclusion because it defines your risk at a reasonable level. But whos to say that the stock didnt cue up a 5% pullback, just to reload for the next upleg?\u003cbr\u003e\u003cbr\u003eUsing an arbitrary target and stop level will get you arbitrary results. Hopefully, it works out in your favor, but if it doesnt, you wont know why or what the stock is telling us.\u003cbr\u003e\u003cbr\u003eTheres a better way. You have to have a full understanding of your expectations from a stock move, based on what should and shouldnt happen if the pattern being traded is the pattern you think it is.\u003cbr\u003e\u003cbr\u003eNo theory can provide you these answers as succinctly as the Elliott wave theory. When used in conjunction with Fibonacci retracement and extension levels, you have a wealth of knowledge about what a stock chart is telling us, when the time is right to take a position, where to take a gain, and when to call it quits because the pattern you thought was playing out is not.\u003cbr\u003e\u003cbr\u003eThe purpose of this article is to demonstrate how you can access this information so that there are good reasons for closing gains and taking losses at specific points. Lets run through an actual trade to detail the process.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133909004657,"sku":"129HENYPDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_f8506757-efe0-4670-a398-d8bc20ca95b2.jpg?v=1739656537"},{"product_id":"stcov296oppo","title":"Stocks \u0026 Commodities V. 29:2 (6): Opening Position by Jayanthi Gopalakrishnan","description":"Opening Position by Jayanthi Gopalakrishnan\u003cbr\u003e\u003cbr\u003eROY, how did you get interested in trading and in options in particular?\u003cbr\u003e\u003cbr\u003eI was first exposed to options about 20 years ago when I read an options book titled Sure-Thing Option Trading by George Angell. At the time, I did not understand everything the author was trying to explain; however, it was clear to me that options were very powerful trading tools, and I became interested in learning about them. Then about 10 years ago, while securing my Mba, I actively started learning how to trade them. I started taking option trading classes, reading books about options, and trading options. That is how it all started.\u003cbr\u003e\u003cbr\u003eSounds like you are well versed in the topic. So why should somebody trade options?\u003cbr\u003e\u003cbr\u003eActually, there are many reasons. First of all, options give you the ability to manage your portfolio downside risk. Meaning it allows you to limit risk in the underlying position, while potentially receiving option premium credit at the same time. Second, a trader can trade options as a surrogate for trading the underlying asset. For example, you could trade option positions in lieu of buying the actual underlying stock.\u003cbr\u003e\u003cbr\u003eWhen it comes to trading options, you can pretty much figure out what your return could be before you place your trade. But many people tend to lose a lot of money on options. Why is that?\u003cbr\u003e\u003cbr\u003eLet me preface my answer by stating that trading options can be very risky if not properly understood and managed, and they are not suitable for all investors. However, in my opinion, traders can lose money trading any instrument. You can find more information about the risks of trading options by reading the options disclosure document, which can be downloaded from the Options Clearing Corp.s website, located at www.theocc.com.\u003cbr\u003e\u003cbr\u003eNow to answer your question, trading options is akin to playing a game of chess, and to play chess successfully, you need some education. Once a trader understands the mechanics of options, options will no longer seem as risky but will be viewed as a useful tool in a traders arsenal.\u003cbr\u003e\u003cbr\u003eWhy would somebody trade the option as opposed to the underlying? How would that benefit them?\u003cbr\u003e\u003cbr\u003eThe first thing that comes to mind is the actual capital outlay. You can trade option spreads at a lower cost than you would have if you were to purchase the underlying asset. For example, if you want to purchase shares of Apple, Inc. (Aapl), currently trading around $320, it will require a capital outlay of $32,000 for 100 shares. To many people, this is a significant portion of their trading portfolio. Alternately, a trader could use a small portion of that capital and trade options and still capitalize on a move in AAPL.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133909037425,"sku":"030INTRPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_e759d49d-0431-46da-8fc5-de97c44b90af.jpg?v=1739656540"},{"product_id":"stcov296trti5","title":"Stocks \u0026 Commodities V. 29:9 (64-70): Traders' Tips by Technical Analysis, Inc.","description":"Traders' Tips by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eFor this months Traders Tips, the focus is Andrew Coles article in this issue, TD Sequential And Ermanometry For Intraday Traders.\u003cbr\u003e\u003cbr\u003eMetaStock code for the TD Setup and Ermanometry techniques is already provided in Coles article. Subscribers will also find the same code at the Subscriber Area of our website, www.Traders.com. Presented here is an overview of possible implementations for other software.\u003cbr\u003e\u003cbr\u003eTraders Tips are provided to help the reader implement a selected technique from an article in this issue. The entries are contributed by various software developers or programmers for software that is capable of customization.\u003cbr\u003e\u003cbr\u003eReaders will find all the code listings that accompany the following Traders Tips at our website, Traders.com. Provided here is some discussion of the techniques implementation by the Traders Tips contributors as well as some example charts.\u003cbr\u003e\u003cbr\u003eTo locate Traders Tips at our website, www.traders.com, use our sites search engine, or click on the Traders Tips link from our home page. For past Traders Tips, click on the Stocks \u0026amp; Commodities link from our home page in the red box on the left, then click on the Article Abstracts link in the red box on the left, then click on the Traders Tips button underneath an issue of interest. Or click on S\u0026amp;C Magazine from our home page and then click on Archive.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133910872433,"sku":"154TIPSPDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_f4781ed8-db43-40da-b570-cbb702a70707.jpg?v=1739656655"},{"product_id":"stcov291rawa","title":"Stocks \u0026 Commodities V. 29:12 (10-16): The Random Walk Revealed by Ron Davis","description":"The Random Walk Revealed by Ron Davis\u003cbr\u003e\u003cbr\u003eMost indicators are correlated to the cyclical movements of the market. Here is an indicator that can identify trends without considering where in the cycle the market is located.\u003cbr\u003e\u003cbr\u003eNearly all technical indicators depend upon the ever-changing cyclic content of the market to generate information. When the indicator is synchronized with the current market cycle, the signals are timely. If the indicator is misaligned, however, the signals will be out of phase and thus useless. When it was first proposed, the random walk index was an attempt to generate cycle-free trend identification. Heres a look at what the random walk really is, how it fits with other indicators, and an expanded trading diary to show how it works.\u003cbr\u003e\u003cbr\u003eBACKGROUND\u003cbr\u003e\u003cbr\u003eIn the early 1990s, E. Michael Poulos wrote a series of articles for Stocks \u0026amp; Commodities in which he introduced the random walk index. The concept was borrowed from the probability theorist and teacher William Feller, wherein it was referred to as a drunkards walk. In his honor, I will refer to my material thus.\u003cbr\u003e\u003cbr\u003eFeller posed the question, If a drunk leaves the lamp post he is leaning against, how far would he have gone, on average, after n steps? The answer is he would have gone the square root of n multiplied by the average length of his stride:\u003cbr\u003e\u003cbr\u003e√n * Average length of stride\u003cbr\u003e\u003cbr\u003eUsing this solution, Poulos constructed his random walk index by creating an up walk and a down walk, then comparing them against each other and with a random walk.\u003cbr\u003e\u003cbr\u003eThe up walk is constructed by subtracting the lowest price of the last n periods from the current high. Lets call that up distance. Count the number of periods from that low point to now. Call that k.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133912183153,"sku":"200DAVISPDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_f4bdf34d-e6b7-4d44-98b0-20e5f2f662ea.jpg?v=1739656748"},{"product_id":"stcov298leto2","title":"Stocks \u0026 Commodities V. 29:5 (8-12): Letters To S\u0026C by Technical Analysis, Inc.","description":"Letters To S\u0026amp;C by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eEditor,\u003cbr\u003e\u003cbr\u003eI have been a follower of your magazine for quite some time, and usually read it from cover to cover as soon as it arrives in the mail. For some time I have been using an evaluation methodology similar to what Stephen Massel describes in his article, What Can You Expect, Mathematically? in the March 2011 issue of S\u0026amp;C.\u003cbr\u003e\u003cbr\u003eI was pleasantly surprised to see the methodology I use in evaluating my trading systems described in such a good fashion, and cant help but ask the author about the single discrepancy I have with the one described in the article. Massel describes the calculation for the reward\/risk ratio as the average profit per trade\/average loss per trade in dollars as an appropriate measure. I moved away from using such a measure some time ago, as it is very dependent on the price of the instrument being traded (and thus on the position size) as the author properly states in his Application To Your Own Trading section. Instead, I prefer to use the payoff ratio, which is calculated as (average percentage profit per trade)\/(average percentage loss per trade). Conceptually, they should be equivalent, as both of them are dividing an average profit per trade by an average loss per trade (one expressed in dollars and the other one expressed as a percentage). However, in practice, I have found that there are slight differences in the result between each approach. In some cases, the percentage calculation for the expectancy is higher and in others the absolute amount calculation is higher, as can be seen in the attached spreadsheet [not shownEd.] with a set of tests runs.\u003cbr\u003e\u003cbr\u003eConceptually, I think there should be a preference for the expectancy calculated as a percentage, since it offers the advantage of independence to the price level of the traded instrument. Can the author offer any further insight on this?\u003cbr\u003e\u003cbr\u003eOn a side note, the article mentions that the author works in Wealth-Lab. Does he have any performance visualizer for the Wealth-Lab platform that incorporates the measures he mentions in his article?\u003cbr\u003e\u003cbr\u003eThanks and keep up the good work.\nJorge Dardn P.\nDoral, FL","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133916017009,"sku":"072LETTPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_ff20f124-3188-437d-a7ed-edc1726939c2.jpg?v=1739657048"},{"product_id":"stcov2987880","title":"Stocks \u0026 Commodities V. 29:7 (82, 78, 80-81): Calling The Tune In The Gold Market by Donald W Pendrgast, Jr.","description":"Calling The Tune In The Gold Market by Donald W Pendrgast, Jr.\u003cbr\u003e\u003cbr\u003eThis trading system shows a glint of promise in trading the volatile precious metal.\u003cbr\u003e\u003cbr\u003eJust about everyone seems to be aware of the long-running uptrend in the gold market, one that is now about 10 years old. Gold market traders, on the other hand, realize that the shorter-term swings and cycles in this highly emotional commodity are chaotic and unpredictable, and that a highly disciplined discretionary or mechanical trading system is an absolute must in order to make and retain trading profits. Here is a closer look at an intraday, fully mechanical trading system for gold futures.\u003cbr\u003e\u003cbr\u003eA GOLD TRADING SYSTEM\u003cbr\u003e\u003cbr\u003eRecently, I wrote an article based on an intraday gold futures trading system. The strategy trades the full-sized, front-month Comex gold futures contract and it showed some promise, but after much forward-testing and further optimization, I decided to lay it aside until I could learn how to garner more consistent profits in the daytrading environment. I discovered, however, that a swing trading system, one that is allowed to hold positions overnight (as needed), seemed to allow for more consistent equity growth with fewer drawdowns. Here, well look at the basic code for this gold swing trading system and examine why it appears to work. Well also determine if the method offers promise for budding system builders and traders as they seek to work with and even enhance this simple trading method (see Figure 1).","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133917589873,"sku":"124CLOSEPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_4192fa4f-3340-4da3-bc7b-1cd9b135646d.jpg?v=1739657149"},{"product_id":"stcov294adoc","title":"Stocks \u0026 Commodities V. 29:6 (40-42): Advanced OCA Orders by Heinz Popovic","description":"Stocks \u0026amp; Commodities V. 29:6 (40-42): Advanced OCA Orders by Heinz Popovic\u003cbr\u003e\u003cbr\u003eHere are some simple ideas and concepts to automate stops, using one cancels all orders.\u003cbr\u003e\u003cbr\u003eEvery trade demands a stop-loss order. I cannot enter a position without a stop because the size of every trade is limited by the distance from entry to stop. Since my trading horizon is anywhere from several days to several weeks, I move stops in the direction of the trade once the price moves in my favor.\u003cbr\u003e\u003cbr\u003eModern platforms provide the ability to use trailing stops, moving stops in the direction of your trade. When the price moves against you, that triggers a stop and you are out with only a small loss or even with a profit. This method is often used for profit-taking, especially when you expect the market to move quickly in your direction.\u003cbr\u003e\u003cbr\u003eNo matter how you decide to move your stops, there are some additional concepts to help protect your trades. Think of a watchdog that guards your positions while you are not in front of your computer. Even if you sit in front of the screen, you cannot monitor too many tickers at once. For me, as a trader in Europe watching the US market, it is even more difficult, due to the time difference. I dont want to spend all my evenings in front of one screen, let alone multiple screens.\u003cbr\u003e\u003cbr\u003eAs a result, I use one cancels all (Oca) orders to secure my positions and create flexible exit scenarios. A standard Oca order consists of two legs one to take profits at a predetermined target and the other to limit a loss. Once either of the orders is triggered, the other one is canceled.\u003cbr\u003e\u003cbr\u003eI use Oca orders to set a larger group of orders that are connected and only one of them will be filled; I want to use limit orders whenever possible. Think of using a trailing stop order. This means that when the stop price is triggered, a market order is issued. Such an order will most likely add another small loss due to slippage. Using a trailing limit order can solve this problem. The trouble is that a trailing limit order might not get filled if prices jump across it in a fast market.\u003cbr\u003e\u003cbr\u003eMy solution is to set a second order that is a classic trailing-stop order slightly below the trailing-limit order. A trailing stop can follow the trailing limit order at two cents below. If your trailing limit order is not filled, you will most probably exit on a trailing stop order. In addition, you could also set a hard stop that is not moving. If you are afraid of overnight gaps, you might even set several such hard stops.\u003cbr\u003e\u003cbr\u003eAll of these orders are connected in one Oca group. This means that as soon as one of these orders is filled, all other orders are automatically canceled.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133918966129,"sku":"096POPOPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_ce0ec974-4b1a-410a-907d-463f055d68a3.jpg?v=1739657255"},{"product_id":"stcov295prre10","title":"Stocks \u0026 Commodities V. 29:9 (58-62): Product Review: Neuroshell by Dennis Peterson","description":"Product Review: Neuroshell by Dennis Peterson\u003cbr\u003e\u003cbr\u003eNeuroShell Trader (NT) is highly sophisticated software that is much more than just a way to utilize neural nets. NeuroShell Trader also deserves to be recognized for having well-designed interfaces that let the trader explore ideas with ease and speed. You can create trading strategies without doing any programming, or you can ask NeuroShell Trader to optimize over a range of parameters and do it in a minute or so. This newest version adds two new features that current users and traders in general have been looking for: position sizing and pyramiding. Thus, the ability to optimize over a range of parameters in a short amount of time is especially helpful when position and pyramid sizes are added to the list of items to be optimized.\u003cbr\u003e\u003cbr\u003eTHE WIZARDS\u003cbr\u003e\u003cbr\u003eTwo interfaces within NT are the Prediction Wizard and the Trading Strategy Wizard. For each youll go through a series of screens, some of which youll need to make a choice about before going to the next screen, but there will be others where youll probably use the defaults. Navigating has a couple of common threads for either wizard, as illustrated in Figure 1. Not only are they the same size, but the button locations at the bottom are the same for both. The only difference in the button labeling is that one button reads Modify Prediction Parameters, while the other one reads Modify Strategy Parameters. If you need an indicator(s), youll deal with the same Indicator Wizard, whether you are building a trading strategy, prediction, or indicator. Thus, there are three wizards: indicator, prediction, and trading strategy, and the wizards sometimes share similar screen formats to ease learning.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133918998897,"sku":"153PRNSPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_2b2ff8c3-1091-408f-816d-76bc2f436f08.jpg?v=1739657258"},{"product_id":"stcov296prre1","title":"Stocks \u0026 Commodities V. 29:4 (60-62): Product Review: MetaSwing 4 by Dennis Peterson","description":"Product Review: MetaSwing 4 by Dennis Peterson\u003cbr\u003e\u003cbr\u003eMetaSwing is available as a set of TradeStation EasyLanguage and workspace files or as a MetaStock plug-in. MetaSwing uses historical price volatility as the basis for building indicators. The previous review of MetaSwing was for version 3.5, while this review covers version 4.\u003cbr\u003e\u003cbr\u003eOn the surface of it, not much has changed. Out of sight are the calculations used to create two mechanical trading systems. An attempt has been made to codify trading that is, create a piece of software reflecting the choices you make as a trader when using MetaSwing indicators. The beauty of doing this is that you can now trade this system over various time frames, then collect and analyze the outcome.\u003cbr\u003e\u003cbr\u003eBefore we examine the results, let us first look at some of the MetaSwing indicators.\u003cbr\u003e\u003cbr\u003eMETASWING TEMPLATES AND INDICATORS\u003cbr\u003e\u003cbr\u003eUsing the Msw4Daily template in MetaStock, you get a number of indicators on the price chart and four more in subcharts (Figure 1). Three additional templates have been added for MetaSwing 4, bringing the total up to eight. What is new on the price portion of this chart are the words buy and sell. They are generated by one of the two mechanical trading systems telling you it is time to enter and exit a trade. What is also new are revised and improved trend calculations used for the green and red trend bands shown below the price band.\u003cbr\u003e\u003cbr\u003eMetaSwing, as the name implies, is about swings and following a trend. But of course what you want is an entry point at the beginning of the swing or trend. The approach followed by MetaSwing is to use historical price volatility to find high and low price extremes. The precedents for this approach can be found in option pricing, and for equities, the ability of Bollinger bands to predict price change.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133919031665,"sku":"066PRPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_f8a4a359-4a58-4160-baf5-bcc0575fd644.jpg?v=1739657260"},{"product_id":"stcov29455pr","title":"Stocks \u0026 Commodities V. 29:7 (48-49, 55): Profiting In Biotech by Mark Messier and Jeff Dos Santos","description":"Profiting In Biotech by Mark Messier and Jeff Dos Santos\u003cbr\u003e\u003cbr\u003eIs biotech the way to go?\u003cbr\u003e\u003cbr\u003eIS biotech investing the same as investing in slots? Is there any way to consistently build wealth in this sector? Many investors avoid biotechnology altogether, appalled at the prospect of stocks that can nosedive over 60% within minutes, while others are attracted to the extraordinary gains possible for companies that receive Food and Drug Administration (Fda) approval. All investors wonder: Is biotech investing a hopeless gamble? Without knowing what the Fda will decide beforehand, is there a way to trade biotech stocks with a high probability of success?\u003cbr\u003e\u003cbr\u003eBUY THE RUMOR\u003cbr\u003e\u003cbr\u003eIt may come as a surprise, but there are ways to make low-risk trades in the biotech sector. In this article, I will explore a trading method built around a predictable anomaly of stock performance that is unique to the biotech sector.\u003cbr\u003e\u003cbr\u003eThe anomaly is the application of the buy the rumor, sell the stock mentality to Fda decisions. Here is the secret: Shares of biotechnology stocks tend to rise in the weeks and months prior to major Fda decisions. Lets call it a bio runup. This runup allows a trader to profit from the increase in shares of companies well before any major Fda decision date, simply due to the speculative rally in the stock prior to the decision. A bio runup trader tags along for this rally prior to the announcement, but selling before the Fda makes an announcement. This is the buy the rumor concept in its purest form.\u003cbr\u003e\u003cbr\u003eIts simple and theoretically sound, sure, but does the behavior of public markets actually support this strategy? I will examine all Fda decision date runups from last year and see if there might have been a way to build wealth using the bio runup method.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133920538993,"sku":"116MESSPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_5a99bb8e-f7cf-4a4f-bbc2-dde7bee1afd1.jpg?v=1739657368"},{"product_id":"stcov294qaby1","title":"Stocks \u0026 Commodities V. 29:5 (45): Q\u0026A by Don Bright","description":"Stocks \u0026amp; Commodities V. 29:5 (45): Q\u0026amp;A by Don Bright\u003cbr\u003e\u003cbr\u003eMARK TO MARKET ACCOUNTING\u003cbr\u003e\u003cbr\u003eYou have written about the tax advantages of being a professional trader versus a retail trader. You also mentioned something about mark to market accounting. Could you expand on these points? JBelliott\u003cbr\u003e\u003cbr\u003eSure, glad to shed some light on this. If you were to buy 1,000 shares of GE at $20, yet it is now trading at $21, you have a mark to market profit of $1,000, even though you havent sold the shares yet. In my mind, this gives a better and truer reflection of where you really stand. On the other end, if you bought 1,000 shares of Google [Goog] a few months back at $640, and its now trading at $575, you have a mark to market loss, but not a capital gain loss. Some retail traders tend to almost kid themselves by saying, I havent really lost any money because I havent sold the stock yet. Well, as cute as that sounds, you really have lost money, no doubt about it.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133920571761,"sku":"079QAPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_69c163eb-71b9-4ab6-8c8a-5d93b199b4c8.jpg?v=1739657371"},{"product_id":"stcov291leto1","title":"Stocks \u0026 Commodities V. 29:8 (10-12): Letters To S\u0026C by Technical Analysis, Inc.","description":"Letters To S\u0026amp;C by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eINTERVIEW WITH MARCUS HEITKOETTER\u003cbr\u003e\u003cbr\u003eEditor,\u003cbr\u003e\u003cbr\u003eIn your recent interview with Marcus Heitkoetter (Short Swings In Futures With Markus Heitkoetter, May 2011), I noticed that when he was discussing the Bollinger Bands adjustment for the moving average, he suggests lowering the number of bars in the moving average. Then, however, the article goes on to say he adjusts them from nine to 12.\nIs this a typo? It seems that he is increasing the number of bars rather than decreasing them.\u003cbr\u003e\u003cbr\u003eThanks for your response. The interview was another good one.\u003cbr\u003e\u003cbr\u003eJmr\u003cbr\u003e\u003cbr\u003eIt is a typo. It should have read, You should shorten the number of bars used in the moving average to something between 9 and 12.\u003cbr\u003e\u003cbr\u003eHeitkoetter goes on to say that he prefers to use a setting of 12 for the standard moving average.Editor","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133922668913,"sku":"126LETT","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_d9bfd82c-52b0-4d7d-8269-ab1ee53c8346.jpg?v=1739657488"},{"product_id":"stcov295prre3","title":"Stocks \u0026 Commodities V. 29:4 (56-58): Product Review: WSJ iPad App by Wallace Wang","description":"Product Review: WSJ iPad App by Wallace Wang\u003cbr\u003e\u003cbr\u003eFor many Wall Streeters, reading The Wall Street Journal has always been important for keeping track of the latest financial news. In an age where real-time stock quotes are available over the Internet and financial news stories change every few minutes, however, the idea of relying on a physical newspaper feels more and more antiquated every day. Fortunately, you can avoid the drawbacks of carrying around a physical newspaper and still enjoy the editorial content of the Journal through the companys free iPad app.\u003cbr\u003e\u003cbr\u003eThe Wall Street Journal iPad app is free but limits access to roughly half of all available stories. Paid subscribers to the print version of the Journal can get full access to the iPad version for a limited time. If you want complete access to the iPad version, youll have to pay $3.99 a week. (The print version of the Journal costs $6.99 a week, while the online version costs $2.99 a week.)\u003cbr\u003e\u003cbr\u003eBesides allowing you access to all content, paying for the iPad version also lets you view the last seven days. So you can not only read the full content of todays edition, but all the content of the past weeks editions as well (Figure 1).\u003cbr\u003e\u003cbr\u003eREADING THE STOREIS\u003cbr\u003e\u003cbr\u003eIf youre already familiar with the print version of the Journal, youll find the iPad form mimics it, making adjusting to the iPad simple.\u003cbr\u003e\u003cbr\u003eInstead of turning physical pages, the iPad version has you swipe your finger toward the left or the right to read the previous or next page. To jump to a different section of the newspaper, you use a variety of swiping, tapping, or pinching motions (Figure 2).","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133924569457,"sku":"064PRPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_4a7e6a59-e8c1-4a96-807f-11cb610a804a.jpg?v=1739657575"},{"product_id":"stcov29880co","title":"Stocks \u0026 Commodities V. 29:11 (82, 80-81): Coach Yourself To Trading Success by Jamie Theiss","description":"Coach Yourself To Trading Success by Jamie Theiss\u003cbr\u003e\u003cbr\u003eBe your own trading coach!\u003cbr\u003e\u003cbr\u003eI never quite understood the concept of a trading coach. For one thing, I could never afford a top-of-the-line one, so I just bought their products and had to be satisfied with that. And Ive been hesitant to hire a lesser-known one ever since I overheard one say at a forex conference that they had recently blown out their personal trading account and was looking to pick up some coaching clients so they could replenish their trading funds.\u003cbr\u003e\u003cbr\u003eAt the other end of the spectrum are those accomplished traders who generously give their time and insights to help newbies become better traders. They may be trading room moderators or other senior traders who want to give back but have no desire to become full-time trading coaches. They wouldnt want to take the pay cut!\u003cbr\u003e\u003cbr\u003eYOUR TRADING PLAN\u003cbr\u003e\u003cbr\u003eSo using the guidance of accomplished traders, what Ive tried to develop is a method to coach yourself using your own written trading plan as your guiding force. You do have a written trading plan, dont you? Unfortunately, most traders do not. And if they do have something written down, it is probably nothing much, meaning someone else couldnt take the plan and execute a trade according to the authors desires. Or maybe the plan sits in a drawer unused. Most traders have heard they need to have a written trading plan, so they will write something down, maybe some market theories and generalities, and call it a trading plan so they can say they have one if asked.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133924602225,"sku":"197THEISPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_c2a3c342-eb96-434b-9245-7294b2349678.jpg?v=1739657577"},{"product_id":"stcov295exyo","title":"Stocks \u0026 Commodities V. 29:2 (54-55): Explore Your Options by Tom Gentile","description":"Explore Your Options by Tom Gentile\u003cbr\u003e\u003cbr\u003eA CALL ON VOLATILITY\u003cbr\u003e\u003cbr\u003eIm new to options and having some difficulty. Despite the broader market having more or less trended higher since September 2010, Ive found my purchased calls, which I make sure arent expensive in their relative historical and implied pricing, are nonetheless resulting in net losses. Any insight into what I might be doing wrong would be appreciated.\u003cbr\u003e\u003cbr\u003eFirst of all, Im pleased to see youre learning about the mechanics of option pricing with regards to the influences of volatility. The bad news is when youre buying an option cheap with no other hedge, that trading edge can be quick to disintegrate as the purchased options greeks begin to influence the pricing.\u003cbr\u003e\u003cbr\u003eFor instance, lets say you bought 10 at-the-money calls two months out for $1.70 per contract. When comparing the price to historical and implied volatility values, you estimate your edge as $0.30 with the call fairly priced at $2.00. The problem with buying the calls on this supposition? You arent trading volatility at that point. Your cheap purchase is inherently flawed almost immediately because youve left yourself open to delta or directional risk and, over the course of time, theta or time decay as well.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133926044017,"sku":"029EYOPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_9a05fc99-7f74-4e36-b430-ff2cf49b2b8f.jpg?v=1739657690"},{"product_id":"stcov297bofo5","title":"Stocks \u0026 Commodities V. 29:6 (76): Books For Traders by Technical Analysis, Inc.","description":"Books For Traders by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eThe Big Investment Lie: What Your Financial Advisor Doesnt Want You to Know\u003cbr\u003e\u003cbr\u003eBig Wave Surfing: Extreme Technology Development, Management, Marketing \u0026amp; Investing\u003cbr\u003e\u003cbr\u003eCandlestick Profits: Eliminating Emotions\u003cbr\u003e\u003cbr\u003eFinancial Origami: How The Wall Street Model Broke\u003cbr\u003e\u003cbr\u003eJimmy Stewart Is Dead\u003cbr\u003e\u003cbr\u003eSuper Boom: Why The Dow Will Hit 38,820 And How You Can Profit From It","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133926076785,"sku":"105BOOKPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_c5345c40-791d-4552-a1c0-39446bee481b.jpg?v=1739657693"},{"product_id":"stcov297clsh","title":"Stocks \u0026 Commodities V. 29:6 (78): Classic Short Sell Setup by Jamie Theiss","description":"Classic Short Sell Setup by Jamie Theiss\u003cbr\u003e\u003cbr\u003eHeres an example of a classic short setup for daytraders.\u003cbr\u003e\u003cbr\u003eFigure 1 is an example of a classic short setup for daytraders. This is a real bread \u0026amp; butter strategy used time and again. To set up this Monday morning trade, the premarket news was bearish with rumors of the countrys credit rating likely to be downgraded. All the market averages were down. So the bears were growling and sentiment was weak. BroadComm (Brcm) is one of 20 or so stocks I follow daily and at the open it frequently puts in a nice red bar, as do most of the other stocks I watch. So this time I stalked it for an entry to the short side.\u003cbr\u003e\u003cbr\u003eTHREE-BAR PULLBACK\u003cbr\u003e\u003cbr\u003eOn the five-minute chart, Brcm put in a nice three-bar pullback to the declining moving averages. Green is the eight-period simple moving average (Sma), while the blue line is the 20-period Sma and the red is the 200-period Sma. I was waiting for a red bar to take out the low of a green bar. This happened at $37.54 and my protective stop was placed a cent above the entry bar at $37.70. This gave me a 16-cent risk on the trade. If we used, for example, $100 as our risk per trade, our position size would have been 630 shares, which I always round down to an even lot size of 600 shares to account for slippage and costs.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133926109553,"sku":"106THESPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_3239f0b9-063d-4313-8e22-2d73f6df1b61.jpg?v=1739657695"},{"product_id":"stcov294qaby3","title":"Stocks \u0026 Commodities V. 29:11 (41): Q\u0026A by Don Bright","description":"Q\u0026amp;A by Don Bright\u003cbr\u003e\u003cbr\u003eHARD TO BORROW?\u003cbr\u003e\u003cbr\u003eI have been trading for about six years. I just now have been able to short stocks, and dont understand a couple of things. Sometimes when I try to sell short by placing the order at the bid price, I get an error message that says Hard to borrow or Contact order desk. It is my understanding there are no longer short-sale rules, something like uptick rules. Why would I care about something being hard to borrow? What does that even mean? Thank you for your years of giving advice at Stocks \u0026amp; Commodities, I really appreciate it. gatortrader\u003cbr\u003e\u003cbr\u003eThanks for the kind words! First, for decades we had the uptick rule to consider when selling shares we dont already own (selling short). This means that we must sell the stock at the offer, or at the last price increase versus hitting bids, thus risking running the stock price down.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133933941105,"sku":"186QAPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_9ae6a47f-c4ea-4219-9fe9-a5c7d6c30818.jpg?v=1739658037"},{"product_id":"stcov292hucy","title":"Stocks \u0026 Commodities V. 29:4 (24-28): Hurst's Cyclic Analysis by David Hickson","description":"Hursts Cyclic Analysis by David Hickson\u003cbr\u003e\u003cbr\u003eThis crash course on an almost-forgotten theory could shed some light on how you can trade consistently and profitably.\u003cbr\u003e\u003cbr\u003eIN the 1970s, an American engineer named J.M. Hurst published a thesis about why financial markets move the way they do. His expounded theory was the result of many years of research, and it became known as Hursts cyclic theory. Hurst claimed a 90% success rate trading on the basis of his theory, and yet his work has remained largely undiscovered and often misunderstood.\u003cbr\u003e\u003cbr\u003eAN ALMOST-FORGOTTEN THEORY\u003cbr\u003e\u003cbr\u003eHurst published two seminal works: The Profit Magic Of Stock Transaction Timing, followed a few years later by a workshop-style course that was called the Cyclitec Cycles Course (now available as JM Hursts Cycles Course).\u003cbr\u003e\u003cbr\u003eA number of enthusiastic advocates, prominent traders, and writers proclaim Hurst as the father of cyclic analysis and confirm the efficacy of the theory (including the late Brian Millard, who wrote several books about Hursts theory), but why isnt it better known and more widely used by technical analysts? There are two possible reasons:\u003cbr\u003e\u003cbr\u003e- First, Hursts cyclic theory is not easy. While it is beautiful and elegant in its essence, it is not a simple theory to understand or apply. The Cycles Course is more than 1,500 pages long, and most people take several months to work through it.\u003cbr\u003e\u003cbr\u003e- Second, although the theory presented in both the Profit Magic book and the Cycles Course is the same, there is a vitally important distinction between the analysis processes presented in them. Hurst claimed his success on the basis of the process presented in the Cycles Course, whereas many people read the Profit Magic book and go no further, with the consequence they never discover the more effective process presented in the Cycles Course.\u003cbr\u003e\u003cbr\u003e","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133935841649,"sku":"057HICKPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_c9e27080-614f-4e1a-ae2f-b8a5e9ae1521.jpg?v=1739658183"},{"product_id":"stcov295qusc","title":"Stocks \u0026 Commodities V. 29:9 (56-57): Quick Scans: Marketsmith by Sean Moore","description":"Quick Scans: Marketsmith by Sean Moore\u003cbr\u003e\u003cbr\u003eMarketSmith is the next generation of the Daily Graphs investment research service, which was begun in 1972 by Investors Business Daily founder William J. ONeil. MarketSmith is a stock and mutual fund research tool that utilizes the wealth of market data available in the ONeil Database, which is commonly used by institutional investors.\u003cbr\u003e\u003cbr\u003eThe MarketSmith tool runs in a web browser environment so it can be accessed anywhere that an Internet connection is available. With MarketSmith, we can generate, organize, and evaluate investment ideas, and then share them with others in the MarketSmith community.\u003cbr\u003e\u003cbr\u003eThe MarketSmith tool (Figure 1) is well organized with several slide-out panels. The three main modules are the Screener, the List Manager, and the chart.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133935874417,"sku":"152QSPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_de0f6c9c-52b4-429c-b925-6666cec0d1d4.jpg?v=1739658185"},{"product_id":"stcov29677tr","title":"Stocks \u0026 Commodities V. 29:12 (68-71, 77): Traders' Tips by Technical Analysis, Inc.","description":"Traders' Tips by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eFor this months Traders Tips, the focus is Sylvain Vervoorts article in this issue, Applying The Put\/Call Ratio Indicator, which is the final article in his three-part series.\nCode for MetaStock for the inverse Fisher transform stochastic oscillator is already provided by Vervoort in the sidebar to his article. Subscribers will also find the same code at the Subscriber Area of our website, www.Traders.com. Presented here is an overview of possible implementations for other software.\u003cbr\u003e\u003cbr\u003eTraders Tips are provided to help the reader implement a selected technique from an article in this issue. The entries are contributed by various software developers or programmers for software that is capable of customization.\u003cbr\u003e\u003cbr\u003eReaders will find all the code listings that accompany the following Traders Tips at our website, Traders.com. Provided here is some discussion of the techniques implementation by the Traders Tips contributors as well as some example charts.\u003cbr\u003e\u003cbr\u003eTo locate Traders Tips at our website, use our sites search engine, or click on the Traders Tips link from our home page. For past Traders Tips, click on the Archive button in the S\u0026amp;C Magazine box in the middle of our home page, then click on a Traders Tips topic of interest, or click on a different year to see more choices.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133935907185,"sku":"212TIPSPDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_518137e6-7245-4531-8313-7ed67742ab23.jpg?v=1739658188"},{"product_id":"stcov295vbuy","title":"Stocks \u0026 Commodities V. 29:8 (50-52): The V-Bottom Buy Setup by Jamie Theiss","description":"The V-Bottom Buy Setup by Jamie Theiss\u003cbr\u003e\u003cbr\u003eProfiting From Fear-Based Selloffs\nThe V-Bottom Buy Setup\u003cbr\u003e\u003cbr\u003eWhile at least 90% of trades should be taken in the direction of the trend, there are also opportunities to enter and profit from countertrend trades. Heres one setup you can take advantage of.\u003cbr\u003e\u003cbr\u003eThis article could also be jokingly titled How To Properly Catch A Falling Knife. While at least 90% of trades should be taken in the direction of the trend, there are occasionally legitimate opportunities to enter and profit from countertrend trades. The V-bottom climactic selloff is one. Ideally, you would want to be short when these climactic selloffs occur, but you rarely are, as they seem to come out of nowhere and for no reason.\u003cbr\u003e\u003cbr\u003eAs an example, let me show you a five-minute chart for daytrading. It is effective on most time frames and is particularly effective for swing trades using a daily chart. Try to stay away from the whippy one- and two-minute charts when using this technique, as there will be many false setups on these micro time frames.\u003cbr\u003e\u003cbr\u003ePOWER TREND OR SELLOFF?\u003cbr\u003e\u003cbr\u003eFirst of all, it is important to differentiate between a power trend down and the fear-based selloff (Figure 1). The selloff has at least five consecutive red bars down. The bars also gain in size toward the end of the move as volume increases. The bars also resemble a vertical drop similar to a waterfall and show significant separation from the moving averages. Look at the distance from the moving averages in Figure 1 and the near-vertical fall of the bars.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133937283441,"sku":"130THESPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_8aab08b4-4e18-44b6-9b96-dc0fde646e97.jpg?v=1739658294"},{"product_id":"stcov29682tr","title":"Stocks \u0026 Commodities V. 29:4 (66-71, 82): Traders' Tips by Technical Analysis, Inc.","description":"Traders Tips by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eFor this months Traders Tips, the focus is Giorgos Siligardos article in this issue, Identifying Cup Formations Early. One additional Traders Tip is contributed for Peter Konners article in the January 2011 issue of S\u0026amp;C, Combining Rsi with Rsi.\u003cbr\u003e\u003cbr\u003eCode for MetaStock is already provided in Siligardos article. Subscribers will also find the same code at the Subscriber Area of our website, www.Traders.com. Presented here is an overview of possible implementations for other software.\u003cbr\u003e\u003cbr\u003eTraders Tips are provided to help the reader implement a selected technique from an article in this issue. The entries are contributed by various software developers or programmers for software that is capable of customization.\u003cbr\u003e\u003cbr\u003eReaders will find all the code listings that accompany the following Traders Tips at our website, Traders.com. Provided here is some discussion of the technique's implementation by the Traders Tips contributors as well as some example charts.\u003cbr\u003e\u003cbr\u003eTo locate Traders Tips at our website, use our sites search engine, or click on the Traders Tips link from our home page. For past Traders Tips, click on the Stocks \u0026amp; Commodities link from our home page in the red box on the left, then click on the Article Abstracts link in the red box on the left, then click on the issue of interest, then on Traders' Tips.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133938594161,"sku":"068TIPSPDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_f890d51e-9cb6-4837-933f-04969fafa29a.jpg?v=1739658397"},{"product_id":"stcov291jkhi","title":"Stocks \u0026 Commodities V. 29:10 (12-18): The JK HiLo Index by Jay Kaeppel","description":"The JK HiLo Index by Jay Kaeppel\u003cbr\u003e\u003cbr\u003eNo single indicator will accurately forecast or coincide with every market top or bottom. Here, two indicators have been combined to form one indicator that can increase your chances of identifying buy or sell points.\u003cbr\u003e\u003cbr\u003eAS a student of the market, I have crunched a few numbers over the years. At the same time I have tried, and cautioned others also, to avoid the temptation to divide one number by another or multiply one number by another simply because we can.\u003cbr\u003e\u003cbr\u003eNot every calculation involving market indicators enjoys any real purpose. In addition, many indicators react in a manner similar to other indicators. Almost all overbought\/oversold indicators tend to get more oversold as the market declines and more overbought as the market rallies. So stringing together more than a handful of similar indicators does not necessarily provide any additional benefit.\u003cbr\u003e\u003cbr\u003eStill, when paired together, even similar indicators can be different enough in their construction and interpretation to be useful sometimes. This article details an indicator I have dubbed the JK HiLo index (or Jkhl for short).","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133940035953,"sku":"160KAEPPDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_e1f5ae31-2575-4652-809c-964d70417153.jpg?v=1739658494"},{"product_id":"stcov292emtr","title":"Stocks \u0026 Commodities V. 29:3 (24-28): Empowering Traders With The Russell 2000 by Gail Mercer","description":"Empowering Traders With The Russell 2000 by Gail Mercer\u003cbr\u003e\u003cbr\u003eEver thought of trading the Russell 2000? Heres how retail traders could benefit from trading this index.\u003cbr\u003e\u003cbr\u003eNew traders are drawn to the emini Standard \u0026amp; Poors 500 like bees to honey. Go into any live trading room and chances are that the moderators are teaching traders to trade the emini S\u0026amp;P 500 because it has more liquidity than any other market. In Figure 1 the average annual volume is compared between the following emini indexes: emini S\u0026amp;P 500, Dow Jones Industrial Average (Djia), Nasdaq 100, S\u0026amp;P MidCap 400, and the Russell 2000. It would be a logical assumption that the emini S\u0026amp;P 500 moves more than any other market. After all, volume fuels the markets, and the emini S\u0026amp;P 500 has more volume than any of the other indexes. However, let us look closer to see if the emini S\u0026amp;P 500 leads in tick movement or dollar movement.\u003cbr\u003e\u003cbr\u003eFigure 2 compares the average annual tick movement between the following emini indexes: S\u0026amp;P 500, Djia, Nasdaq 100, S\u0026amp;P MidCap 400, and the Russell 2000. As you can see, the emini S\u0026amp;P 500 is no longer the leader. In fact, during the eight-year analysis, although the emini S\u0026amp;P 500 had the highest volume, it was the lowest in tick movement when compared to the other markets.\u003cbr\u003e\u003cbr\u003eIf volume fuels the markets and the emini S\u0026amp;P 500 has the most volume, why is it consistently lower in tick movement than any of the other markets? Since each market has different tick values, perhaps we need to compare the average dollar movement to find the answers.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133940068721,"sku":"040MERCPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_c1cef0d7-9ca6-43bb-bc27-404f1a1384e2.jpg?v=1739658497"},{"product_id":"stcov293qaby","title":"Stocks \u0026 Commodities V. 29:1 (31): Q\u0026A by Don Bright","description":"Q\u0026amp;A by Don Bright\u003cbr\u003e\u003cbr\u003eROUTING AND REROUTING FEES?\u003cbr\u003e\u003cbr\u003eDon, I have a question about order routing that perhaps you can help me with. I trade with a respectable brokerage that caters to active traders. Ive noticed in the last few months that I have been charged fees referring to routing, rerouting, and electronic communications networks (Ecn) fees. I place my orders to go to the Nyse, as suggested by my peers. I am told that there may be fees for taking of liquidity, and also that I may be entitled to collect rebates for providing of liquidity. Im not sure what any of this means, but now that Im being charged fees, I would like to understand it better. When I called the broker, they were very vague about it all, as if they werent sure either, but assured me that they were pass-through fees, not add-ons. Can you help? oldtimeguy\u003cbr\u003e\u003cbr\u003eExcellent questions, very timely. Although I cant speak directly as to how your brokerage handles such electronic orders, I can explain how things work. If you submit a limit order to the Nyse (as you say) to buy Xyz for $20.10, and the Nyses best offer is $20.11, but the overall best market (Nbbo, or national best bid and offer) is $20.10 on an Ecn market center like Arca. The Nms (that is, the National Market System) requires that the Nyse ship the order to the better-priced market. Thats great, except the Nyse will likely charge you a fee for shipping the order out. These fees are usually about three-tenths of a penny per share, which can add up quickly.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133940101489,"sku":"007QAPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_6f2f267b-45f9-48a3-86a6-a7648e9f2f10.jpg?v=1739658500"},{"product_id":"stcov295prre2","title":"Stocks \u0026 Commodities V. 29:3 (58-62): Product Review: NASDAQ OMX Portfolio Manager for the iPad by Wallace Wang","description":"Product Review: NASDAQ OMX Portfolio Manager for the iPad by Wallace Wang\u003cbr\u003e\u003cbr\u003eReal-time data is crucial for accurate and timely trading, but in the past, to get real-time data you had to pay a monthly fee. Now, however, if you have either a wi-fi or 3G Internet connection and an iPad, you can retrieve real-time data using the Nasdaq Omx Portfolio Manager app. The initial Portfolio Manager app screen displays a list of stocks on the left side of the screen, which you can divide into three categories: a watchlist of stocks you want to track, a portfolio list of stocks youre currently trading, and a search list that lets you type in a stock symbol and view that particular stocks real-time performance (Figure 1).\u003cbr\u003e\u003cbr\u003eYou can change the time frame of each stock chart from as long as five years to as short as intraday (with automated real-time updates). Slide your finger on the chart and a vertical line appears along with a big white dot, which identifies the stocks exact price and volume at that particular moment in time (Figure 2).\u003cbr\u003e\u003cbr\u003eBesides customizing a stock chart by selecting a different time frame, you can also overlay a chart with simple moving averages (Smas) to help you better understand the fluctuations of a stock price (Figure 3).\u003cbr\u003e\u003cbr\u003eWhile the Portfolio Manager displays stock prices in US dollars, you can easily choose a variety of other currencies such as euros instead (Figure 4).","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133940134257,"sku":"048PRPDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_2376767f-d102-4108-b683-cf8ff4cff57a.jpg?v=1739658502"},{"product_id":"stcov292nete","title":"Stocks \u0026 Commodities V. 29:10 (20-33): Net Effective Market Activity by Frank Suler","description":"Net Effective Market Activity by Frank Suler\u003cbr\u003e\u003cbr\u003eThe desire to learn more about the relationships amid price, volume, and open interest has led to a new concept in evaluating futures contracts. Will it work for you?\u003cbr\u003e\u003cbr\u003eMuch of the information on futures trading available in the 1980s mentioned the relationship amid price, volume (V), and open interest (OI). Generally speaking, price breakouts from a trading range are more bullish under high volume. Further, an increase in OI with increased price meant that new long position buying must have been the dominant trading activity. Traders have pointed out that if the price increase occurred with a decrease in open interest, then most of the price increase had to be due to short-covering.\nTo better understand these relationships, refer to the list of meaningful combinations of price, V, and OI changes and the corresponding dominant trading activity in Figure 1.\u003cbr\u003e\u003cbr\u003eSIGNIFICANCE OF CHANGES\u003cbr\u003e\u003cbr\u003eThere were 16 such change sets found. The changes refer to daily changes that is, price change today equals close price today minus close price yesterday. The futures contract with the most volume activity and the highest open interest is referred to as the lead contract. For consistency, the price changes and V and OI changes must only be for the lead contract as opposed to the total V and OI for all open contracts.\u003cbr\u003e\u003cbr\u003e(Other studies have stated that the total V and OI for all open contracts should be used instead of the lead contract values. Since many consider this an important issue, further clarification is warranted. See sidebar Using Lead Contract Values Of Volume And Open Interest on page 22.)\u003cbr\u003e\u003cbr\u003eFigure 1 lists the 16 dominant trading activities for the daily changes in price, OI, and V. For the changes, an increase is denoted by a 3, a decrease by a 1, and no significant change by a 2. Increased or decreased buying is indicated by B. Increased or decreased selling is indicated by S.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133941641585,"sku":"161SULEPDF","price":5.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_c676b14d-d012-4f17-bb5d-c891a992e8ad.jpg?v=1739658615"},{"product_id":"stcov293enlo","title":"Stocks \u0026 Commodities V. 29:4 (30-36): Engineering Look At Cycles by Arthur Zernov","description":"Engineering Look At Cycles by Arthur Zernov\u003cbr\u003e\u003cbr\u003eDo cycles exist in markets? Heres a look at the markets from a different angle one that will help you realize that there is a harmony among cycles, events, and market behavior.\u003cbr\u003e\u003cbr\u003eTHE existence of cycles in stocks and commodities prices is considered to be an acceptable and rarely debated topic. While preparing for the Chartered Market Technician (Cmt) tests, I became interested in this subject and decided not to take their existence for granted but to investigate it myself. In this article I will attempt to answer the ultimate question: Do cycles exist?\nTechnical analysts determine cycles in time series using the following major methods:\nn Descriptive statistics\nn Visual analysis of charts\nn Trigonometric methods (centered simple moving average and future lines of demarcation (Fld) developed by J.M. Hurst, the focal point method by Jim Tillman, and so forth)\nn Traditional indicators such as the moving average convergence\/divergence (Macd), stochastic oscillator, the slope, and so on.\u003cbr\u003e\u003cbr\u003eBy no means are these the only methods used, but they are the most common. Different analysts found different durations for market cycles, as can be seen from Figure 1.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133941674353,"sku":"058ZERNPDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_90143687-388b-4a67-bb36-d9d8edb128d3.jpg?v=1739658618"},{"product_id":"stcov295prre8","title":"Stocks \u0026 Commodities V. 29:7 (56-59): Product Review: VisualTrader 8 by Sean M. Moore","description":"Product Review: VisualTrader 8 by Sean M. Moore\u003cbr\u003e\u003cbr\u003eI last reviewed VisualTrader in 2008. The latest version, VisualTrader 8.0, remains unique in its ability to display technical information and market movement. Nirvana Systems has continued to add new features and make improvements to the software. With VisualTrader and just a few clicks of the mouse, you can determine which way the market is moving, find strong trade candidates, and execute trades.\u003cbr\u003e\u003cbr\u003eVisualTrader is available as standalone software in three different versions: end-of-day, real-time, and professional. You will need access to a datafeed to pair with VisualTrader. There are several compatible options for both real-time and end-of-day. For this review, I used Nirvanas OmniData feed and it worked seamlessly. With the professional version you have access to the OmniLanguage system, so you can build your own indicators and strategies, giving you even more customizing options. Earlier this year, Nirvana Systems partnered with another Austin-based company, Transcend Capital, to create a new retail brokerage, gxtrader. gxtrader features VisualTrader as the primary platform offered to clients who establish accounts at www.gxtrader.com.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133943935345,"sku":"188PRPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_158b13dd-2df8-45b2-83b8-a48388f0898d.jpg?v=1739658730"},{"product_id":"stcov291rech","title":"Stocks \u0026 Commodities V. 29:13 (18-32): Readers' Choice Awards 2011 by Technical Analysis, Inc.","description":"Readers Choice Awards 2011 by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eWe are pleased to present the Technical Analysis of Stocks \u0026amp; Commodities magazine 2011 Readers Choice Awards (Rca). Each year, we put before our readers a ballot of products and services related to technical analysis and trading. The following pages present the products and services you and your peers chose this year as your favorites.\u003cbr\u003e\u003cbr\u003eThe Readers Choice Awards begins each year with a list of products gathered by the editors of Stocks \u0026amp; Commodities, with space for write-in votes (given that our list doesnt claim to be complete). Then, to find out what our readers find to be the most useful for their trading, we ask them to choose their favorite products or the ones they find most useful from various categories by going to our website, Traders.com, and filling out the survey there. After that, we compile the results, just in time for the Bonus Issue you hold in your hands.\u003cbr\u003e\u003cbr\u003eProducts are categorized by their primary purpose. Just because a service or product is not listed does not necessarily mean that the product does not have features germane to the category. In addition, some categories are divided by cost so that the comparisons can be made on a more level playing field.\u003cbr\u003e\u003cbr\u003eThe winners in the Readers Choice Awards are almost always the dominant players in their niche, and rightfully so. You may have special needs for your trading, however, so you should keep in mind those products that are not the big names in the category of your interest before you make your final decision. The Rca is designed to be an aid for you when you are deciding on which of the numerous products and services currently available to use for your trading and investing. With that in mind, we think youll find the Readers Choices a terrific guide to products and services that youll be interested in.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133952848241,"sku":"222RCAPDF","price":5.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_3881889e-426c-4761-b11e-70587350155c.jpg?v=1739658816"},{"product_id":"stcov293fufo2","title":"Stocks \u0026 Commodities V. 29:9 (31): Futures For You by Carley Garner","description":"Futures For You by Carley Garner\u003cbr\u003e\u003cbr\u003eTHE DOLLAR INDEX\u003cbr\u003e\u003cbr\u003eThe US Dollar Index seems to be overlooked. Are there opportunities there?\u003cbr\u003e\u003cbr\u003eYes! The US Dollar Index (DX) futures contract, traded on the Intercontinental Exchange (Ice), could be one of the most underrated futures products on the board. Lets face it, traders are human and humans have an undeniable tendency to migrate toward the comfortable. Unfortunately, the dollar index is the oddball of the currency futures complex, simply because it doesnt trade on the Cme Group with the others, and it carries different contract specifications. Nonetheless, it offers traders some attractive characteristics that cant be found elsewhere, such as built-in diversity.\u003cbr\u003e\u003cbr\u003eUnlike Cme Grouptraded currency futures, which are all paired against the US dollar in American terms (foreign currencies priced in dollars), the DX future is the value of the US dollar against a basket of foreign currencies. As a result, this futures contract enables speculators to trade the value of the dollar, as opposed to against a specific currency. In addition, it can be used as an effective tool to hedge risk of changes in greenback valuation for those with international stock, bond, or commodity exposure.\u003cbr\u003e\u003cbr\u003eI would also argue that the US Dollar Index futures contract might be an alternative to the highly volatile and treacherous metals complex. If you ask any gold or silver bull why it is they believe metals prices will appreciate, they will likely tell you that a devaluing dollar, assuming the trend continues, will force precious metals prices higher.\u003cbr\u003e\u003cbr\u003eIf the primary argument for owning metals is the declining dollar, it might be feasible to speculate on the short side of the greenback, as opposed to playing the long side in the overly dramatic silver and gold contracts. As many traders have abruptly learned the hard way, the metals markets can be treacherous in both directions. This isnt to say that the DX doesnt see volatility from time to time, but in my opinion the risk exposure in this diversified index is much less than owning positions in gold and silver.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133952881009,"sku":"145GARNPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_630e3bc6-cb65-4907-b0e0-f868994ab684.jpg?v=1739658818"},{"product_id":"stcov294whca","title":"Stocks \u0026 Commodities V. 29:3 (42-44): What Can You Expect, Mathematically? by Stephen Massel","description":"What Can You Expect, Mathematically? by Stephen Massel\u003cbr\u003e\u003cbr\u003eHeres a look at how mathematical expectation allows for an apples-to-apples comparison of trading systems or strategies regardless of type or style, as well as allowing the tracking of your own trading record.\u003cbr\u003e\u003cbr\u003eA huge number of different trading systems and strategies are available in the market today, all with their own particular focus, style, time frame, and risk. The type of trading you engage in is a very personal matter and depends on many factors. The things that need to be considered include the market you are interested in; the amount of time you have to do the required research and to execute and maintain your trades; your preferred time frame (which could be from seconds to months); the style of trading whether technical, fundamental, news driven, or purely discretionary; and of course, the size of your trading capital, leverage, and risk tolerance.\u003cbr\u003e\u003cbr\u003eSome of these questions are easy to answer and some require more thought. Whether you are new to trading and are still deciding on your preferred style and considering different strategies or systems, or you are an experienced trader looking to analyze your own trading results or new systems, mathematical expectation should prove to be a very useful tool to have in your statistical toolbox.\u003cbr\u003e\u003cbr\u003eThis article will define mathematical expectation and show how it allows for an apples-to-apples comparison of trading systems or strategies regardless of type or style, as well as allowing the tracking of your own trading record.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133952913777,"sku":"043MASSPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_b5dfeecf-07ce-46e9-9ee1-62165f001b0b.jpg?v=1739658821"},{"product_id":"stcov295prre","title":"Stocks \u0026 Commodities V. 29:1 (52-54) Product Review: Pristine Pattern Method Scan by Dennis D. Peterson","description":"Stocks \u0026amp; Commodities V. 29:1 (52-54) Product Review: Pristine Pattern Method Scan by Dennis D. Peterson\u003cbr\u003e\u003cbr\u003eThe Pristine Pattern Method Scan plugin comes with screening filters, expert commentary, chart annotation, and templates to help find patterns that fit with the Pristine approach. The Pristine Method was covered in two earlier reviews in the February and April 2010 issues of Stocks \u0026amp; Commodities.\u003cbr\u003e\u003cbr\u003eMetaStock refers to its screening filters as Explorations and its expert commentary and chart annotation as Expert Advisors. The CD comes with a 50-page manual that fits into the CD case. There are brief explanations of each of the pattern scans that you can use with the Explorer or Expert Advisor. There are 17 different explorations. Both courses are helpful, but the first course is more aligned with this plugin. Lets look at an example.\u003cbr\u003e\u003cbr\u003eUsing the pattern scan called the Bullish Changing of the Guard resulted in about 16 tickers being selected (Figure 1) when I was scanning the Standard \u0026amp; Poors 500 on August 24, 2010. One of the columns in the Exploration report is Setup, which displays 1.000 or 0.000. The zero represents false and 1 represents true. The first row displays Anadarko Petroleum Co. (Apc).\u003cbr\u003e\u003cbr\u003eBullish Changing of the Guard is a phrase that Pristine uses to identify an up day bar following a three-bar pattern of lower highs or, in the case of candlesticks, three solid red bars. For MetaStock, implementation of candlesticks solid red bars versus red-outlined bars is an important qualification since MetaStock will outline a candlestick in red if its close is less than the previous days close, whether its an up day or down day. If its a down day, then the body of the candlestick is filled in, making it a solid red candlestick, but if its an up day, then the outline of the body is red but not filled in.\u003cbr\u003e\u003cbr\u003eWith 17 different scans or explorations available, you might ask, Are they all independent? and the answer would be yes. MetaStock allows you to pick a set of symbols such as the S\u0026amp;P 500, and using the control key, select all 17. This generates 17 independent reports. MetaStock also allows you to feed the results of one scan into another because it creates a file of the tickers from the most recent scan, and you can point the Exploration to the file of those tickers that came from a past scan. Feeding the results of one scan into another is done one exploration at a time.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133961990513,"sku":"014PRPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_cb408191-c0c6-48e3-9ca8-f261f2d1ee19.jpg?v=1739658920"},{"product_id":"stcov295prre12","title":"Stocks \u0026 Commodities V. 29:10 (58-61): Product Review: TBO Advanced Chart Pattern Recognition by Donald W Pendergast Jr","description":"Product Review: TBO Advanced Chart Pattern Recognition by Donald W Pendergast Jr\u003cbr\u003e\u003cbr\u003eDiscretionary trading is still the preferred manner of attempting to extract profits from the financial markets for many traders, despite the ever-growing popularity of systems, high-frequency, and algorithmic trading methods. One of the most useful skills for the serious discretionary trader is the ability to accurately scan the markets for technical chart patterns that are close to completion, thus offering the opportunity to include other confirmation tools and\/or system signals that can provide a trader with a much higher degree of confidence when trading todays volatile and highly fragile markets (stop and consider last years flash crash, if you doubt that the markets can be extremely fragile). TimBukOne offers a unique and multifaceted standalone software product called Tbo Advanced Chart Recognition Pattern (Tbo Acpe) software that runs on MetaStock or AmiBroker (along with several other data providers) end-of-day (Eod) data, and that is the subject of this review.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133962023281,"sku":"168PRTBOPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_18168aab-e614-4585-a05b-22d1747ecc98.jpg?v=1739658924"},{"product_id":"stcov296qaby","title":"Stocks \u0026 Commodities V. 29:2 (61): Q\u0026A by Don Bright","description":"Q\u0026amp;A by Don Bright\u003cbr\u003e\u003cbr\u003eMIDPOINT TRADING WITH PENNIES\u003cbr\u003e\u003cbr\u003eHey, Don, I had a quick question for you about midpoint trading. Not sure if you know the exact answer, but figured was worth a shot asking you.\u003cbr\u003e\u003cbr\u003eI have a buddy who trades Citigroup actively he just trades to make the spread. For example, C is bid offer 4.16\/4.17.\u003cbr\u003e\u003cbr\u003eHe works both sides looking to make the penny. So if he gets hit on his 16 bid, he looks to sell 17s. I told him his life would be much easier if he could sell the 16.5s (as there is always a ton of volume trading in between the spread). I told him it makes sense to work both sides (or maybe only one side if there is a huge bid or the stock is sitting on support), but then to enter a trade trying to get out for that half-cent profit, since most of the volume seems to be trading at that half cent. He told me recently that he was scratching most of his trades and the electronic communication network (Ecn)\/dark pool fees were eating him alive.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133965070705,"sku":"031QAPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_773be631-72ee-4c9c-bdac-3474249c39ac.jpg?v=1739659150"},{"product_id":"stcov297bofo9","title":"Stocks \u0026 Commodities V. 29:10 (77): Books For Traders by Technical Analysis, Inc.","description":"Books For Traders by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eFinding #1 Stocks: Screening, Backtesting, And Time-Proven Strategies\u003cbr\u003e\u003cbr\u003eFree Capital: How 12 Private Investors Made Millions In The Stock Market\u003cbr\u003e\u003cbr\u003eThe High-Frequency Game Changer: How Automated Trading Strategies Have Revolutionized The Markets\u003cbr\u003e\u003cbr\u003eOut Of The Box And Onto Wall Street: Unorthodox Insights On Investments And The Economy\u003cbr\u003e\u003cbr\u003eThe StockTwits Edge: 40 Actionable Trade Setups From Real Market Pros\u003cbr\u003e\u003cbr\u003eYour Options Handbook: The Practical Reference And Strategy Guide To Trading Options","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133966741873,"sku":"175BOOKPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_6850d685-5c2c-417a-aa23-eb869e9e322f.jpg?v=1739659252"},{"product_id":"stcov298leto4","title":"Stocks \u0026 Commodities V. 29:9 (8-11): Letters To S\u0026C by Technical Analysis, Inc.","description":"Letters To S\u0026amp;C by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003e\nCOLOR-BASED SYSTEM FOR SHORT-TERM TRADING\u003cbr\u003e\u003cbr\u003eEditor,\u003cbr\u003e\u003cbr\u003eThe color-based system presented by Edgar Kraut in his July 2011 article (A Color-Based System For Short-Term Trading) looked promising and simple. However, using the Excel spreadsheet example given in your Traders Tips section in that same issue, I recoded it into Mechanica Professional, but I did not get anything close to the performance shown in the article. Im fairly sure I coded it correctly because I get the same color bars as those shown in Figure 6 in the article and the same number (98) of bars (45 green bars and 53 blue bars) in the first trading period (4\/17\/2002 to 4\/17\/2003) shown in the articles Figure 8. So it seems that there must be something wrong with my trailing 1% exit.\u003cbr\u003e\u003cbr\u003eSince closing prices are used to color the bars and enter the trade, I assume that the author means to enter on the open the next day and use a 1% trailing stop, but he doesnt say whether that stop is based on the close of the previous day or his open fill price. For there to be 98 trades, that means every trade had to have been entered and exited on the same day, and I dont see how that could happen with a 1% trailing stop 98 out of 98 times, especially using intraday data.\u003cbr\u003e\u003cbr\u003eI would appreciate it if the author clarified his exit and how he managed to get 98 one-day trades with a 1% trailing stop.\u003cbr\u003e\u003cbr\u003eBob Dannegger\u003cbr\u003e\u003cbr\u003eSee also the next letter and reply. Editor","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133966774641,"sku":"142LETTPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_e879b87b-7663-4112-8559-c96a45bc0284.jpg?v=1739659254"},{"product_id":"stcov292mago","title":"Stocks \u0026 Commodities V. 29:1 (24-30): Making A Good System Great by Donald W. Pendergast Jr.","description":"Making A Good System Great by Donald W. Pendergast Jr.\u003cbr\u003e\u003cbr\u003eOnce you have a trading system, you still need to evaluate it. You can apply optimization strategies to increase profitability, reduce drawdowns, and enhance the stability of your system.\u003cbr\u003e\u003cbr\u003eDespite opinions to the contrary, building a successful daily trading system for stocks isnt all that difficult, especially if you have the right tools, tons of patience, and a sound understanding of why markets behave the way they do. Of course, 95% of all traders and investors probably are deficient in one or more of those three critical areas of market savvy, and as such they are most likely destined to trash their trading accounts within a given period of time unless they seek the guide of a market mentor or professional trading system developer. For the sake of argument, lets say you do have all of these foundational tools and skills at your disposal and you have been able to piece together a reliable and profitable equity trading system for trading the market from the long side, one that you can use on individual stocks in both your cash and retirement (Ira or Roth Ira, for example) accounts.\u003cbr\u003e\u003cbr\u003eOf course, now that youve gone as far as you can in fine-tuning your system to work well in a range of market environments, what else can you do to boost its profitability and reliability?\u003cbr\u003e\u003cbr\u003eThis article may offer at least a few answers to that question by showing how to use portfolio optimization strategies in order to increase profitability, reduce drawdowns, and enhance system stability.\u003cbr\u003e\u003cbr\u003eA SIMPLE, YET STURDY SYSTEM\u003cbr\u003e\u003cbr\u003eFirst, lets look at a simple trading system, one designed to enter a long stock position on a pullback in the five-period money flow index (Mfi) (5) with the goal of exiting with a profit on an anticipated snap back higher, using a five-period relative strength index (Rsi)(5) to exit with a profit or using a fixed stop-loss to exit with a loss. This system is very short term in nature, meaning that the use of a broad market timing filter doesnt appreciably change the performance (profitability and drawdown being the two metrics that carry the most weight) of it as much as you may have expected, although it might still be worth pursuing for hard-core system developers intent on deriving the last available penny from this strategy. I used these 100 large-cap stocks:","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133970149745,"sku":"006PENDPDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_a09053d5-fdcd-4544-90d0-79cf0efa1018.jpg?v=1739659504"},{"product_id":"stcov292trgo","title":"Stocks \u0026 Commodities V. 29:9 (24-30): Trading The Golden Ratio by Gareth Burgess","description":"Trading The Golden Ratio by Gareth Burgess\u003cbr\u003e\u003cbr\u003eYou can apply this technique to forex pairs to confirm price direction and anticipate when price will reach a certain point.\u003cbr\u003e\u003cbr\u003eThe golden ratio to chart analysis is useful, and you should try to incorporate it within your strategy wherever possible. In this article I want to discuss one simple way of doing this. I will not go into much detail here about the origins of the ratio, except to say it has been used throughout written history and perhaps before, and that it has been found within architectural designs and construction methods of the ancient Egyptian pyramids and the Greek Parthenon and can be seen in the growth and form of many plants. So its been around a while.\u003cbr\u003e\u003cbr\u003eThe golden ratio is certainly a number that has significance in everyday life, even if we are not always aware of it. And just like the early architects who took the ratio from nature and applied it to their structures, we as traders can take the natural occurrences of the market and apply the same golden ratio to create our own technical plan.\u003cbr\u003e\u003cbr\u003eIt is primarily the actions of the crowd that create many of the well-known chart patterns, and as a consequence of these patterns, there can be highly emotional and distraught moments in the marketplace. As a result, the response of these emotions can be seen as reflective of human nature, a response that is heightened when faced with the prospect of a loss or gain in the financial markets. The markets are reflective of human nature, and where natural occurrences happen, so can the golden ratio appear. There are many ways to use the golden ratio in the market, and here is one of the simpler applications.\u003cbr\u003e\u003cbr\u003eAPPLYING IT\u003cbr\u003e\u003cbr\u003eFor the purposes of this article I will first demonstrate the significance of this number by plotting the ratios on a graph and then show how to use it in the financial markets.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133970182513,"sku":"144BURGPDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_a54fcb39-6f52-4e38-bb4e-4fa0581c1fa4.jpg?v=1739659506"},{"product_id":"stcov294qaby","title":"Stocks \u0026 Commodities V. 29:4 (49): Q\u0026A by Don Bright","description":"Q\u0026amp;A by Don Bright\u003cbr\u003e\u003cbr\u003eLATE ON THE TRENDS\u003cbr\u003e\u003cbr\u003eI have a bad habit of getting into trends too late. I try to keep an eye on stocks with strong correlation to the Standard \u0026amp; Poors 500 with no outstanding news on them about earnings and so on. The indicators I mainly use are the S\u0026amp;P 500 and the futures tick chart. I also refer to the duck list frequently and look for at least five of the seven ducks to line up in addition to the other indicators.\nI also try to watch for resistance, but I still seem to take a position right before the stock changes direction. What am I doing wrong? Jordan\u003cbr\u003e\u003cbr\u003eI gather youve already been to our classes, so let me explain to the readers what a duck list is. Basically, a duck list is getting several indicators in the same place at the same time for example, premium or discount to (futures) fair value intraday, strong stock in a strong group and so on (for immediate directional plays). In addition, be sure the engine of the day is in alignment with your chosen directional entry.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133971984753,"sku":"062QAPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_d54a6819-e337-409d-a9af-0bbf1b7fa5d2.jpg?v=1739659630"},{"product_id":"stcov293idcu","title":"Stocks \u0026 Commodities V. 29:4 (38-45): Identifying Cup Formations Early by Giorgos Siligardos","description":"Identifying Cup Formations Early by Giorgos Siligardos\u003cbr\u003e\u003cbr\u003eHeres a simple mechanical recognition method for identifying possible emerging cup formations.\u003cbr\u003e\u003cbr\u003emy article Identifying The Cup (With Or Without The Handle), which appeared in the February 2006 Stocks \u0026amp; Commodities, I introduced a simple mechanical algorithmic method for identifying cup formations (also known as rounding bottoms) in their late phase. The core part of the algorithm was based on the idea of using a virtual grid on the chart. Since then, I have been asked by technical analysts to provide an algorithm for identifying possible cup formations in their early phase. This time I will show you how you can easily use the grid technique for spotting possible cup formations during their development.\u003cbr\u003e\u003cbr\u003eTHE CUP FORMATION\u003cbr\u003e\u003cbr\u003eIn Figure 1 you can see a typical cup formation. I will not elaborate on the technical details of the cup formation (see Related reading). I will say that the identification method I introduced in my previous article on the subject was able to spot cup formations in their late phase (to the right after point C in Figure 1). The goal of the algorithm I will describe is to identify the development of such a formation before or near point C. But are you sure a cup is being formed at point C? you might ask. No, we are not. We cant be sure that a specific formation is going to take place. However, if the price is about to form a cup, it has to form a half-cup before integrating the formation in its entirety. You might want to be informed that the price shows such intentions.\u003cbr\u003e\u003cbr\u003eTHE SEMI-CUP FORMATION\u003cbr\u003e\u003cbr\u003eSince we seek early identification of a possible cup (and particularly for the bottom phase of a possible cup), we essentially seek a pattern I will refer to as a semi-cup. The typical semi-cup formation is like a completed cup cut in half. This formation has a distinct advantage over an integrated cup: The price is relatively low and there is room for a prosperous upward movement (even when the overall long-term trend is bearish). In addition, most of the time, it is easy to set a profit objective (price target) and a stop-loss level when trading the formation.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133973524849,"sku":"060SILIPDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_2005c67b-67a4-448e-935c-9502abc6b426.jpg?v=1739659742"},{"product_id":"stcov296trti3","title":"Stocks \u0026 Commodities V. 29:6 (63-71): Traders' Tips by Technical Analysis, Inc.","description":"Stocks \u0026amp; Commodities V. 29:6 (63-71): Traders Tips by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eFor this months Traders Tips, the focus is Walid Khalil and David Stecklers article in this issue, The Price Zone Oscillator.\u003cbr\u003e\u003cbr\u003eCode for the price zone oscillator for MetaStock and TradeStation is already provided in Khalil and Stecklers article. Subscribers will also find the same code at the Subscriber Area of our website, www.Traders.com. Presented here is an overview of possible implementations for other software.\u003cbr\u003e\u003cbr\u003eTraders Tips are provided to help the reader implement a selected technique from an article in this issue. The entries are contributed by various software developers or programmers for software that is capable of customization.\u003cbr\u003e\u003cbr\u003eReaders will find all the code listings that accompany the following Traders Tips at our website, Traders.com. Provided here is some discussion of the techniques implementation by the Traders Tips contributors as well as some example charts.\u003cbr\u003e\u003cbr\u003eTo locate Traders Tips at our website, use our sites search engine, or click on the Traders Tips link from our home page. For past Traders Tips, click on the Stocks \u0026amp; Commodities link from our home page in the red box on the left, then click on the Article Abstracts link in the red box on the left, then click on the issue of interest, then on Traders Tips.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133973557617,"sku":"103TIPSPDF","price":4.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_a3102927-93fe-4d11-bd20-62db04e87d64.jpg?v=1739659745"},{"product_id":"stcov294exyo1","title":"Stocks \u0026 Commodities V. 29:3 (45): Explore Your Options by Tom Gentile","description":"Explore Your Options by Tom Gentile\u003cbr\u003e\u003cbr\u003eA SMARTER CALL TO SELL?\u003cbr\u003e\u003cbr\u003eWith a long call, what would be the best time to sell? I know that directionally, the higher a stock goes up the more the call stands to profit as it goes further in-the-money. But if a call went from out-of-the money toward being at-the-money, doesnt it put the option at more risk because of time decay?\u003cbr\u003e\u003cbr\u003eKnowing when the best time to sell is something all option traders strive for. Unfortunately, there is no one universal rule that we can work as simply as a light switch in order to capture the best guaranteed results. Traders look to understand the greeks of a position and work with them as effectively as they can while taking unique risk tolerance levels into consideration.\u003cbr\u003e\u003cbr\u003eIn holding a long call, the trader is working with the risks (and rewards) associated with a long delta, negative theta, positive vega, long gamma, and then a distant rho factor. Where an option is in its life cycle will influence your concern with potential time decay that is, the negative theta component of the position. The closer you are to expiration while holding an at-the-money contract, the greater the exposure to this risk. The longer out we go, concern regarding time decay will be a distant third to delta and vega risks.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133975064945,"sku":"044EYOPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_d530a69c-d490-4023-b169-a7222ad13767.jpg?v=1739659856"}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/collections\/volume-29-2011-18.gif?v=1739677682","url":"https:\/\/shop.traders.com\/collections\/volume292011\/issue-01.oembed","provider":"Stocks \u0026 Commodities","version":"1.0","type":"link"}