{"title":"Volume 30 (2012)","description":"\u003cp\u003eBrowse Volume 30 (2012) articles by issue:\u003c\/p\u003e\u003cdiv style=\"display:grid;grid-template-columns:repeat(4,minmax(0,1fr));gap:10px;text-align:center;\"\u003e\n\u003ca href=\"?constraint=issue-01#ProductGridContainer\" style=\"display:block;text-decoration:none;\"\u003e\u003cimg src=\"https:\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/1201_cover.gif\" alt=\"Volume 30 January cover\" style=\"width:100%;height:auto;display:block;\"\u003e\u003cdiv style=\"margin-top:8px;\"\u003eJanuary\u003c\/div\u003e\u003c\/a\u003e\u003ca href=\"?constraint=issue-02#ProductGridContainer\" style=\"display:block;text-decoration:none;\"\u003e\u003cimg src=\"https:\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/1202_cover.gif\" alt=\"Volume 30 February cover\" style=\"width:100%;height:auto;display:block;\"\u003e\u003cdiv style=\"margin-top:8px;\"\u003eFebruary\u003c\/div\u003e\u003c\/a\u003e\u003ca href=\"?constraint=issue-03#ProductGridContainer\" style=\"display:block;text-decoration:none;\"\u003e\u003cimg src=\"https:\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/1203_cover.gif\" alt=\"Volume 30 March cover\" style=\"width:100%;height:auto;display:block;\"\u003e\u003cdiv style=\"margin-top:8px;\"\u003eMarch\u003c\/div\u003e\u003c\/a\u003e\u003ca href=\"?constraint=issue-04#ProductGridContainer\" style=\"display:block;text-decoration:none;\"\u003e\u003cimg src=\"https:\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/1204_Minicover.gif\" alt=\"Volume 30 April cover\" style=\"width:100%;height:auto;display:block;\"\u003e\u003cdiv style=\"margin-top:8px;\"\u003eApril\u003c\/div\u003e\u003c\/a\u003e\u003ca href=\"?constraint=issue-05#ProductGridContainer\" style=\"display:block;text-decoration:none;\"\u003e\u003cimg src=\"https:\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/1205_Minicover.gif\" alt=\"Volume 30 May cover\" style=\"width:100%;height:auto;display:block;\"\u003e\u003cdiv style=\"margin-top:8px;\"\u003eMay\u003c\/div\u003e\u003c\/a\u003e\u003ca href=\"?constraint=issue-06#ProductGridContainer\" style=\"display:block;text-decoration:none;\"\u003e\u003cimg src=\"https:\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/1206_Minicover.gif\" alt=\"Volume 30 June cover\" style=\"width:100%;height:auto;display:block;\"\u003e\u003cdiv style=\"margin-top:8px;\"\u003eJune\u003c\/div\u003e\u003c\/a\u003e\u003ca href=\"?constraint=issue-07#ProductGridContainer\" style=\"display:block;text-decoration:none;\"\u003e\u003cimg src=\"https:\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/1207_Minicover.gif\" alt=\"Volume 30 July cover\" style=\"width:100%;height:auto;display:block;\"\u003e\u003cdiv style=\"margin-top:8px;\"\u003eJuly\u003c\/div\u003e\u003c\/a\u003e\u003ca href=\"?constraint=issue-08#ProductGridContainer\" style=\"display:block;text-decoration:none;\"\u003e\u003cimg src=\"https:\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/1208_Minicover.gif\" alt=\"Volume 30 August cover\" style=\"width:100%;height:auto;display:block;\"\u003e\u003cdiv style=\"margin-top:8px;\"\u003eAugust\u003c\/div\u003e\u003c\/a\u003e\u003ca href=\"?constraint=issue-09#ProductGridContainer\" style=\"display:block;text-decoration:none;\"\u003e\u003cimg src=\"https:\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/1209_Minicover.gif\" alt=\"Volume 30 September cover\" style=\"width:100%;height:auto;display:block;\"\u003e\u003cdiv style=\"margin-top:8px;\"\u003eSeptember\u003c\/div\u003e\u003c\/a\u003e\u003ca href=\"?constraint=issue-10#ProductGridContainer\" style=\"display:block;text-decoration:none;\"\u003e\u003cimg src=\"https:\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/1210_Minicover.gif\" alt=\"Volume 30 October cover\" style=\"width:100%;height:auto;display:block;\"\u003e\u003cdiv style=\"margin-top:8px;\"\u003eOctober\u003c\/div\u003e\u003c\/a\u003e\u003ca href=\"?constraint=issue-11#ProductGridContainer\" style=\"display:block;text-decoration:none;\"\u003e\u003cimg src=\"https:\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/1211_Minicover.gif\" alt=\"Volume 30 November cover\" style=\"width:100%;height:auto;display:block;\"\u003e\u003cdiv style=\"margin-top:8px;\"\u003eNovember\u003c\/div\u003e\u003c\/a\u003e\u003ca href=\"?constraint=issue-12#ProductGridContainer\" style=\"display:block;text-decoration:none;\"\u003e\u003cimg src=\"https:\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/1212_Minicover.gif\" alt=\"Volume 30 December cover\" style=\"width:100%;height:auto;display:block;\"\u003e\u003cdiv style=\"margin-top:8px;\"\u003eDecember\u003c\/div\u003e\u003c\/a\u003e\u003ca href=\"?constraint=issue-13#ProductGridContainer\" style=\"display:block;text-decoration:none;\"\u003e\u003cimg src=\"https:\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/1213_Minicover.gif\" alt=\"Volume 30 Bonus Issue cover\" style=\"width:100%;height:auto;display:block;\"\u003e\u003cdiv style=\"margin-top:8px;\"\u003eBonus Issue\u003c\/div\u003e\u003c\/a\u003e\n\u003c\/div\u003e","products":[{"product_id":"stcov301toco","title":"Stocks \u0026 Commodities V. 30:9 (10-22): To Cover or Not? by Markos Katsanos","description":"To Cover or Not? by Markos Katsanos\u003cbr\u003e\u003cbr\u003eCovered call writing is one of the most popular option strategies, but there is, of course, a catch. This variation will reduce risk and increase profitability and compare it with related call writing strategies.\u003cbr\u003e\u003cbr\u003eCovered call writing has been around for a while, and it may be the most commonly used option strategy, as many investors believe that it produces income without the unlimited risk of naked option writing. In this method, the option investor buys the underlying issue and writes (sells) call options on that same stock in order to generate additional income from the option premium. This strategy has lured many investors and even fund managers, but there is a catch, because there is no such thing as free money on Wall Street.\u003cbr\u003e\u003cbr\u003eWhile covered calls can be a great way to generate income in a flat or moderately up market, the risk in todays highly volatile market should not be overlooked, as the downside protection that covered calls can create is only the amount of premium received.\u003cbr\u003e\u003cbr\u003eThe notion that you can enhance your income by writing calls against your portfolio is a delusion because it ignores the damage to your underlying stock portfolio. There is an easy way to find the extent of this damage by looking at the performance of one of the covered call exchange traded funds (ETFs) trading on the NYSE. In Figure 1, you can see a chart of the Madison\/Claymore Covered Call Fund (MCN) superimposed on the Standard \u0026amp; Poors 500. I have also plotted the same ETF adjusted for distributions (in green).\u003cbr\u003e\u003cbr\u003eYou can see the damage that option writing does to your principal in the unadjusted MCN (in red). It underperformed the S\u0026amp;P 500 since inception and it has not come anywhere close to recovering to its IPO level. In fact, even after taking into account dividends and distributions (in green), it barely broke even during the seven and a half year period (from August 19, 2004, to December 3l, 2011) compared to a 34% total return for the S\u0026amp;P 500.\u003cbr\u003e\u003cbr\u003eThis is because of the fat tail effect: Stock returns are not normally distributed and most of the big returns or fat losses are in the tails of the distribution. By selling covered calls, you are in effect cutting off the upside (right-hand tail of the distribution) while leaving the left-hand tail (downside) intact. You are therefore vulnerable to potentially unlimited losses and only moderate profits.\u003cbr\u003e\u003cbr\u003eThis became apparent during the 2008 bear market or the sharp correction in the summer of 2011, as the option premium did very little to protect the option traders from the sharp declines in their stocks. This was more evident in Figure 1, where the adjusted MCN (in green) underperformed during the bull markets in 200607 and 2010, while the option premium did little to alleviate the 2008 crisis blowup.\u003cbr\u003e\u003cbr\u003eTaking a closer look at the risk curve of a covered call (Figure 2), it is evident why this strategy is not as safe as everyone thinks; it actually has the same risk curve as a naked put! In fact, if you compare the two strategies on a return on account basis, the naked put is superior to the covered call as the margin requirement is more favorable.\nThere is a better way to write call options and take advantage of the time decay without exposing yourself to the downside risk.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133905138033,"sku":"380KATSAPDF","price":5.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_9c35f4aa-aaac-40ff-968d-eb996f53d162.jpg?v=1739656309"},{"product_id":"stcov306trti7","title":"Stocks \u0026 Commodities V. 30:9 (60-62): Trading Ticket: Single-Currency ETFs by Jayanthi Gopalakrishnan","description":"Trading Ticket: Single-Currency ETFs by Jayanthi Gopalakrishnan\u003cbr\u003e\u003cbr\u003eRecently, the Chicago Mercantile Exchange (CME) launched a new tool for traders that will allow them to look at open interest patterns in equity option contracts. Many traders like to look at the open interest to help them make decisions on which options to trade, since there can be so many different options (puts or calls, different months, and different strike prices). The open interest profile tool by the CME will provide traders insight into the direction of the equity markets.\u003cbr\u003e\u003cbr\u003eUSING IT\u003cbr\u003e\u003cbr\u003eOne of the main things that traders will look for with this tool will be the support and resistance of markets by being able to see where large contracts of open interest at particular levels could indicate support or resistance. Since out-of-the-money options tend to be more active, traders want to see where extremely out-of-the-money options are trading as a possible indicator of support or resistance. For example, in Figure 1 you will see a display of the open interest and open interest difference for the July 2012 Standard \u0026amp; Poors 500 contracts on July 16, 2012. The spikes in the open interest and the open interest difference (that is, the difference in open interest between the current day and the last trading day) help you determine where the support and resistance levels of the specific market are.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133905170801,"sku":"390TICKETPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_fdbe1bb5-b9d6-4b17-9ed2-be58bd22bc7d.jpg?v=1739656312"},{"product_id":"stcov301sezo","title":"Stocks \u0026 Commodities V. 30:5 (12-17): Sentiment Zone Oscillator by Walid Khalil, MFTA, CFTe","description":"Sentiment Zone Oscillator by Walid Khalil, MFTA, CFTe\u003cbr\u003e\u003cbr\u003eHeres an indicator that measures extreme bullishness and bearishness and helps you identify a change in sentiment.\u003cbr\u003e\u003cbr\u003e\nAfter developing the volume zone oscillator (VZO) and price zone oscillator (PZO), I found there were sides of the market not covered by those two oscillators namely, time and sentiment. Sometimes, the market could reverse from a point with attractive price and volume indicators, but by then the sentiment could be be too high for the move to continue.\u003cbr\u003e\u003cbr\u003eThe psychology of that extreme sentiment point is best described in John Murphys Technical Analysis Of The Financial Markets, where he states that the more bullish the forecast, the more aggressively the trader will approach the market.\u003cbr\u003e\u003cbr\u003eSENTIMENT ZONE OSCILLATOR\u003cbr\u003e\u003cbr\u003eThe sentiment zone oscillator (SZO) is a leading contrary oscillator that measures the extreme emotions of a single market or share. It measures and defines both extremes, bullishness (overoptimism) and bearishness (overpessimism), that could lead to a change in sentiment, eventually changing the trend of the time frame under study.\u003cbr\u003e\u003cbr\u003eThe SZO was devised on the belief that after several waves of rising prices, investors begin to get bullish on the stock with increasing confidence since the price has been rising for some time. The SZO measures that bullishness\/bearishness and marks overbought\/oversold levels.\u003cbr\u003e\u003cbr\u003eCALCULATING IT\u003cbr\u003e\u003cbr\u003eThe SZO formula is based on the number of rising days to declining ones. It only uses the closing price as a separation rule.\u003cbr\u003e\u003cbr\u003eTo include both time and sentiment, a value of +1 is stored for each higher close above the previous period closes. Otherwise, a value of ‑1 is stored. With that calculation method, the time is covered and categorized bullish or bearish. In addition, a positive or a negative value serves the sentiment condition.\u003cbr\u003e\u003cbr\u003eFor smoothing purposes, a triple exponential moving average (TEMA) of those plus and minus values is divided by the total number of days of the period being studied:\u003cbr\u003e\u003cbr\u003eSentiment zone oscillator = 100 * (SP Range)\u003cbr\u003e\u003cbr\u003ewhere:\u003cbr\u003e\u003cbr\u003eSP (sentiment position) = X-days TEMA (number of up days minus number of down days)\nRange = Period being studied\u003cbr\u003e\u003cbr\u003eThe AmiBroker and MetaStock formulas for calculating the SZO are shown in the sidebar Calculating SZO.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133907136881,"sku":"300KHALPDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_b8ba7589-b0f7-436a-a0f9-f0a51e7a25d4.jpg?v=1739656437"},{"product_id":"stcov306oppo","title":"Stocks \u0026 Commodities V. 30:1 (6): Opening Position by Jayanthi Gopalakrishnan","description":"Opening Position by Jayanthi Gopalakrishnan\u003cbr\u003e\u003cbr\u003eX-SEQUENTIALS\u003cbr\u003e\u003cbr\u003eEditor,\u003cbr\u003e\u003cbr\u003eFirst, let me say how much I enjoy your magazine. In fact, today I renewed my subscription.\nI recently read with interest the article by Devin Sage Spotting Momentum Reversals And Deriving Price Forecasts(Stocks \u0026amp; Commodities, November 2011).\u003cbr\u003e\u003cbr\u003eIn the articles conclusion, the author lists three variations of the X-sequentials X7 pattern, but nowhere does he give examples of when and how to apply these variations.\u003cbr\u003e\u003cbr\u003eWill the author be writing another article to expand on these variations? The article leaves the reader hanging for more information.\u003cbr\u003e\u003cbr\u003eAlso, how can one contact the author? Is there an English edition of his book, Besser Traden Mit X-sequentials, and where can any edition of the book be purchased?\nLarry Escott\u003cbr\u003e\u003cbr\u003eAs for the books availability, Amazon.de carries it, for one, but it does not look as though there is an English translation.\u003cbr\u003e\u003cbr\u003eA follow-up article is not planned at this point, but you can contact the author in care of this magazine at Editor@Traders.com.Editor","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133907169649,"sku":"V30C01_218LETTPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_055ac442-3126-44e0-a0e6-113f05526736.jpg?v=1739656440"},{"product_id":"stcov308leto","title":"Stocks \u0026 Commodities V. 30:3 (8): Letters To S\u0026C by Technical Analysis, Inc.","description":"Letters To S\u0026amp;C by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eGOLD SYSTEM\u003cbr\u003e\u003cbr\u003eEditor,\u003cbr\u003e\u003cbr\u003eIn the July 2011 issue of Stocks \u0026amp; Commodities, Donald Pendergast Jr. wrote about a fully mechanical intraday trading system for gold futures that he called GoldTASCMaster, but he also mentioned an article he wrote on a swing-trading system, and the July 2011 articles Figure 1 (The Eldorado Gold System) seems to be from the other referenced article; is this the case?\nDoes he intend to do any follow-up articles in the near future on these systems? Has he traded either of these systems successfully?\u003cbr\u003e\u003cbr\u003eThanks for any clarification or additional information that you can provide.\u003cbr\u003e\u003cbr\u003ePeter LaBreck\nMilan, MI\u003cbr\u003e\u003cbr\u003eDonald Pendergasts July 2011 article, Calling The Tune In The Gold Market, was an enhancement of one of his earlier articles published in our online publication, Traders.com Advantage (Gold Futures System Music To The Ears?, February 4, 2011, www.traders.com). The chart in Figure 1 appears in both articles. Pendergast has not followed up on either system, as he has since developed better systems. These systems were presented as a work in progress to see what would work. He has not traded these systems for his personal account.\nEditor","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133907202417,"sku":"V30C03_256LETTPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_b82556d7-9d44-41c3-aae2-53f6ae9f11ad.jpg?v=1739656442"},{"product_id":"stcov305prre5","title":"Stocks \u0026 Commodities V. 30:7 (54-55): Product Review eSignal 11.4 by Jayanthi Gopalakrishnan","description":"Product Review eSignal 11.4 by Jayanthi Gopalakrishnan\u003cbr\u003e\u003cbr\u003eIN March 2012, eSignal released version 11.4, which includes some notable new features as well as some enhancements. In the previous two parts of this series, I discussed some of the more popular features of eSignal 11 such as charting, designing trading systems, and backtesting. Once you have figured out how to create your trading systems, setups, and strategies, you need an alert system in place. In this, the final part of this series, I will discuss eSignals alert system, plus a few other features that traders would find interesting.\u003cbr\u003e\u003cbr\u003eALERTS\u003cbr\u003e\u003cbr\u003eOne feature I did not mention in the previous two parts is the Alerts feature. Although it isnt entirely new, it does have some improvements. In version 11.4, you can place alerts on all the built-in studies as well as Advanced GET studies. I just looked at the built-in studies for this review.\u003cbr\u003e\u003cbr\u003eThere are various options when it comes to setting alerts, and the nice thing is you can create them directly from the charts. You can either have the alerts displayed as a popup, such as what you see in Figure 1, or as an audible alert or get a message via email. Setting them is extremely simple, and they can be set on each indicator or drawing tool you have on your chart. For example, if you have Bollinger Bands overlaid on your price chart and you want to be alerted when prices cross either the upper band or lower band, all you have to do is highlight the indicator, right-click on the chart, and select Edit from the dropdown menu.\u003cbr\u003e\u003cbr\u003eThe Edit Chart window has two tabs, one of which is for setting alerts (Figure 2). You can select which indicator or tool you want to set the alert on. In the case of the Bollinger Band, you have the option of being alerted when price crosses the upper Bollinger Band, the basis line, or the lower Bollinger Band.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133909070193,"sku":"350PRESIGPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_dafeea4a-1d2f-4a95-b93c-a2eed7ec02d7.jpg?v=1739656542"},{"product_id":"stcov305scfo","title":"Stocks \u0026 Commodities V. 30:3 (55-56): Scanning For Cash-Rich Stocksy by Donald W. Pendergast Jr.","description":"Scanning For Cash-Rich Stocksy by Donald W. Pendergast Jr.\u003cbr\u003e\u003cbr\u003eYou can scour the markets for stocks meeting specific fundamental and technical criteria, and heres one way to do it.\u003cbr\u003e\u003cbr\u003eTradeStation, as those who rely on it for their trading activity already know, has so many features that to explore and write about every one of them would probably take thousands of hours of research and compilation. In this article, well look at one particular feature the Scanner to seek out stocks that meet a specific set of fundamental and\/or technical criteria. Then well take a look at the charts of the top-ranked stocks and see what kinds of trading opportunities may exist.\u003cbr\u003e\u003cbr\u003eLets look at the scan in TradeStation (Figure 1); this standard scanning template looks for stocks with a strong cash position and a positive EPS and that could be a great set of criteria for risk-averse investors and traders. Youll note the fundamental criteria in the first screenshot; I wont go into detail, as the list of fundie items included are self-explanatory. One change I made was that I upped the 10-day average daily volume figure from 100,000 to 500,000 and I lowered the close value to 5 (from 10). I also added a technical item at the very bottom, which tells the scan to only evaluate stocks that are outperforming the .SPX over the past four weeks, returning the top 25 stocks that meet the fundamental criteria.\u003cbr\u003e\u003cbr\u003eEssentially, the scan, as modified, seeks cash-rich stocks with a positive earnings per share (EPS) that are also outperforming (high relative strength [RS]) the Standard \u0026amp; Poors 500 over the last 28 days. All thats left to do is to include a list of stocks to scan. I chose the NYSE stocks list and tossed in the gold and silver stock list. See Figure 2.\u003cbr\u003e\u003cbr\u003eThe scan output appears a few moments after pressing the run button; I clicked on the 4 wk vs. SP 500 column header to bring the highest-ranked RS stocks to the top. BanCorpSouth (BXS) was ranked the top cash-rich stock that was also outperforming the .SPX over the past four weeks.\u003cbr\u003e\u003cbr\u003eThats good to know, but what is BXSs daily chart telling us? To find out, simply right-click on the BXS ticker, click create and then chart analysis for BXS; a five-minute (default) chart appears and then you can format it, changing it to a daily (weekly, monthly, 60-minute, whatever you like) chart if you prefer.\u003cbr\u003e\u003cbr\u003e","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133912215921,"sku":"V30C03_267PENDPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_e5280521-f06f-40c0-a776-e073d3f46282.jpg?v=1739656750"},{"product_id":"stcov307bofo10","title":"Stocks \u0026 Commodities V. 30:11 (73): Books For Traders by Technical Analysis, Inc.","description":"Books For Traders by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eCurrency Trading For Dummies: Getting Started Edition\u003cbr\u003e\u003cbr\u003eHeikin-Ashi: How To Trade Without Candlestick Patterns\u003cbr\u003e\u003cbr\u003eThe Insider Edge: How To Follow The Insiders For Windfall Profits\u003cbr\u003e\u003cbr\u003eThe Traders Guide To Key Economic Indicators, 3rd ed.\u003cbr\u003e\u003cbr\u003eGreen Investing, 2nd ed.\u003cbr\u003e\u003cbr\u003eWinning The Money Game: Separating The Myths From The Truth","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133912248689,"sku":"437BOOKSPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_20cbeccc-1c94-4f84-aadc-dab40399959b.jpg?v=1739656753"},{"product_id":"stcov307bofo3","title":"Stocks \u0026 Commodities V. 30:4 (77): Books For Traders by Technical Analysis, Inc.","description":"\u003cp\u003eBooks For Traders by Technical Analysis, Inc.\u003c\/p\u003e","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133913821553,"sku":"V30C04_296BOOKPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_a4160c04-4476-4e6d-9759-e0a95db0e2ae.jpg?v=1739656871"},{"product_id":"stcov307patr","title":"Stocks \u0026 Commodities V. 30:4 (78-82): Pair Trading With Spreadsheets by Ron McEwan","description":"AT THE CLOSE\u003cbr\u003e\u003cbr\u003ePair Trading With Spreadsheets by Ron McEwan\u003cbr\u003e\u003cbr\u003eBuild a spreadsheet to aid in revealing profitable opportunities in pair trades.\u003cbr\u003e\u003cbr\u003ePair trading is classified as a market neutral\nstrategy where you are not concerned with\nmarket direction, whether up or down. Instead,\nthe idea is to exploit temporary price discrepancies\nin two (or more) securities by simultaneously\ngoing long the outperforming security and going\nshort the underperforming one.\u003cbr\u003e\u003cbr\u003eAn important concept in pair trading is in\nselecting securities that have a spread with a\nmean reverting (comovement) characteristic.\nCorrelation of the two securities was\noften used as a measure to find similarity\nin the movement of two or more securities.\nCorrelation is not always indicative of mean\nreversion. Cointegration is a more accepted\nmethod for detecting mean reversion that\nis, comovement of the spread in securities.\u003cbr\u003e\u003cbr\u003eOther than knowing that cointegration is a way to measure comovement\nor mean reversion, it is not necessary to go into detail about it\nhere. There are commercial software packages and web services that\nwill perform cointegration analysis on a pair of stocks. In addition,\nthere are free scripts for Matlab and R, the free language and environment\nfor statistical computing and graphics, that will perform the\ncointegration calculations.\u003cbr\u003e\u003cbr\u003eFor this article I have constructed an Excel spreadsheet to aid in\nidentifying the spread in a pair of stocks that have a mean reversion\ncharacteristic that can be traded profitably.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133913952625,"sku":"V30C04_297MCEWPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_f75b7bc4-d24f-4731-8501-3c864b4c5570.jpg?v=1739656873"},{"product_id":"stcov302chtr","title":"Stocks \u0026 Commodities V. 30:3 (24-30): Changing The Trader's Mindset by Ronald M. Brandt","description":"Changing The Trader's Mindset by Ronald M. Brandt\u003cbr\u003e\u003cbr\u003eReorienting a mindset for specific trading components requires understanding your current one, knowing what leads to trading success, identifying what needs to be changed, and developing a plan during trading activity. So how do you do it?\u003cbr\u003e\u003cbr\u003eA traders profession requires a blend of training and experience from the fields of business, economics, mathematics, and psychology. What percentage comes from each discipline, however, is always a matter of debate. Some traders say that psychological factors can be removed by using rule-based mechanical systems with automated entry and exits. Some believe that combining discretion with mechanical signals provide the best results, while still others believe that trading is 100% psychological and that traders only trade their belief system about the markets and not the markets themselves.\u003cbr\u003e\u003cbr\u003eWINNING VS LOSING\u003cbr\u003e\u003cbr\u003eBut one thing that everyone can agree on is that succeeding as a trader is difficult. Statistics suggest that in the commodity futures and forex markets, 90% of everyone who try their hand at trading lose over the long term. But there are untold numbers of successful trading systems and methods that have proven to be winners. So why do so many traders lose money?\u003cbr\u003e\u003cbr\u003eThe key is how they trade. How people must think during trading is exactly the opposite of how they are conditioned to think in business and society. How a trader views his or her trading means everything in the realm of the financial markets! It is the difference between winning and losing.\u003cbr\u003e\u003cbr\u003e","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133917622641,"sku":"V30C03_260BRANPDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_820f98f7-d907-4cb4-bfa2-726cc3bb3303.jpg?v=1739657152"},{"product_id":"stcov303ovre","title":"Stocks \u0026 Commodities V. 30:2 (34-38): The Overnight Return Study by Erik Skyba, CMT","description":"The Overnight Return Study by Erik Skyba, CMT\u003cbr\u003e\u003cbr\u003eIncorporating Biases\nAnomalies in the markets appear on occasion and challenge the efficient market hypothesis. Heres a look at the overnight return anomaly, with some findings that may surprise you.\u003cbr\u003e\u003cbr\u003eany within the financial community believe that the markets follow the efficient market hypothesis. This theory asserts that the current price of a security reflects all public and private information about that security. Changes in price are due to current news or events, which are impossible to predict. Thus, a tradable follows the path of a random walk, the premise of which states that current prices are not dependent on past prices and are normally distributed over time.\u003cbr\u003e\u003cbr\u003eOver the years, many studies have presented data about what academics call market anomalies. These anomalies appear from time to time and challenge the efficient market hypothesis. There are three common classifications: fundamental, technical, and calendar-based. There is another class of anomaly that most people simply refer to as other for those that do not fit into the original three. In this article we will discuss one of these other market anomalies, called the overnight return.\u003cbr\u003e\u003cbr\u003eCAN YOU MAKE RETURNS OVERNIGHT?\u003cbr\u003e\u003cbr\u003eDay versus overnight returns can be studied by analyzing the differences in returns between the days session (defined here as regular NYSE trading hours) and the overnight period. In testing the returns for the day and overnight periods, we used the SPDR S\u0026amp;P 500 exchange traded fund (SPY) from February 2, 1993 to June 7, 2010. We can define the days return as the difference between the days open and the days close. The overnight return is the difference between the days close and the following mornings open.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133917655409,"sku":"V30C02_241SKYBPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_b8a86d8d-c3e3-4518-8445-4d5790714053.jpg?v=1739657155"},{"product_id":"stcov306prre1","title":"Stocks \u0026 Commodities V. 30:11 (60-62): PRODUCT REVIEW: TC2000 Version 12.2 Update by Bruce R. Faber","description":"PRODUCT REVIEW: TC2000 Version 12.2 Update by Bruce R. Faber\u003cbr\u003e\u003cbr\u003eIN my January 2012 review of TC2000 12, I stated, What is available as I write this is less than what will be available when you finally read it because user suggestions are constantly being adopted. This turned out to be more accurate than I could have imagined. And I am certain that the idea will continue to be true, as the improvements are added as a continuing process. Because these new features can be immediately programmed into the Worden computers, it is a relatively speedy process from concept to program capability for the end users.\u003cbr\u003e\u003cbr\u003eFEATURES\u003cbr\u003e\u003cbr\u003eTC2000 v12 is Worden Brothers cloud-based charting program. Your computer needs to run Microsoft Silverlight to run v12. Program calculations are taking place on Worden Brothers computers so even nonstate of the art computers have very fast results. Platinum (real-time) users pay an extra $9.25 per month for the up-to-the-millisecond data. The Gold (end-of-day) users get their real-time data from the BATS exchange (www.batstrading.com) at no extra cost, but it can be delayed up to 15 minutes.\u003cbr\u003e\u003cbr\u003eThe first thing that should be mentioned is the cost of the alerts available to the program users. This affects your wallet in a good way. In the January review, I stated that the alert monitoring service allows you to set your own condition for the alert, and then sends you an email as well as audio and visual alerts.\u003cbr\u003e\u003cbr\u003e","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133917688177,"sku":"432PRTCPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_b1c8fc62-8551-4b1f-a524-192756dd42ae.jpg?v=1739657157"},{"product_id":"stcov30871le","title":"Stocks \u0026 Commodities V. 30:2 (8-11, 71): Letters To S\u0026C by Technical Analysis, Inc.","description":"Letters To S\u0026amp;C by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eBEST-PERFORMING CANDLESTICKS\u003cbr\u003e\u003cbr\u003eEditor,\u003cbr\u003e\u003cbr\u003eI read the article The Eight Best Performing Candles by Thomas Bulkowski in your November 2011 issue. I found it interesting that the bullish reversal pattern called three inside up was one of the top two best-performing candles. The other one, the above the stomach, I have never heard of, and I have most of the Japanese literature translated from 20 years ago. However, Im sure there are some that I missed.\u003cbr\u003e\u003cbr\u003eYour readers should know that the three inside up pattern was not an actual Japanese candle pattern but one that Norm North and I created about 20 years ago in an attempt to improve the performance of the bullish harami. We did this by adding an extra day to the harami, which gave a closing price above the second days body. And yes, it works quite well. There is also a three inside down pattern to enhance the bearish harami, and there are three outside up and down patterns to improve the bullish and bearish engulfing patterns.\u003cbr\u003e\u003cbr\u003eCongratulations to Bulkowski for continuing his research on Japanese candle patterns. I especially agree with his comment about avoiding single-line candle patterns, as I say they should neither be traded nor ignored. However, there is always a message.\u003cbr\u003e\u003cbr\u003eGregory L. Morris\u003cbr\u003e\u003cbr\u003eGreg Morris is author of Candlestick Charting Explained and Candlestick Charting Explained Workbook. Editor","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133917720945,"sku":"V30C02_238LETTPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_e618e662-57f7-47dc-aea0-803d7a80a004.jpg?v=1739657160"},{"product_id":"stcov305trti","title":"Stocks \u0026 Commodities V. 30:6 (52-54): Trading Ticket by Jayanthi Gopalakrishnan","description":"Trading Ticket by Jayanthi Gopalakrishnan\u003cbr\u003e\u003cbr\u003eHigh-Yield Bond ETFs\n iShares iBoxx High Yield Corporate Bond ETF (HYG)\n SPDR Barclays High Yield Bond (JNK)\n ProShares Short High Yield (SJB)\u003cbr\u003e\u003cbr\u003eAccording to the March 11, 2012, Financial Times article Warning On High-Yield ETF Returns, high-yield exchange traded funds (ETFs), which mostly consist of junk bonds, have seen net inflows of $6.6 billion so far (and at that time, we were not even done with the first quarter). Total net inflows into high-yield ETFs in all of 2011 was $8.4 billion. Is it an indication that investors are willing to take higher risks? Or are they attracted to them because their yields are much better than short-term interest rates?\u003cbr\u003e\u003cbr\u003eJunk bonds typically carry a high risk, given that they are bonds that carry a credit rating below BBB (Standard \u0026amp; Poors) or Baa3 (Moodys). The main risk concern with high-yield bonds is the increased likelihood of the companies defaulting on their loans. But besides that, you need to be mindful of how closely the ETF tracks its benchmark index (tracking error).\u003cbr\u003e\u003cbr\u003eIt is well known that ETFs tend to underperform their benchmark indexes, but youll find that high-yield bond ETFs underperform their benchmark indexes even more than other ETFs. The reason behind this is the high turnover and high transaction costs. In addition, the pricing in the junk bond market is not transparent, making the bid\/ask spread relatively wide.\u003cbr\u003e\u003cbr\u003eIt would be to your benefit to keep an eye on the correlation between the equity markets and the high-yield bond market. Typically, bonds and equities are negatively correlated, but studies have shown that when high-yield bonds start to become highly correlated with equities, there is reason to be cautious.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133919064433,"sku":"328TICKPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_743f5370-3ab7-4443-8869-57f5eec75eb1.jpg?v=1739657264"},{"product_id":"stcov307bofo4","title":"Stocks \u0026 Commodities V. 30:5 (77): Books For Traders by Technical Analysis, Inc.","description":"Books For Traders by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003e- Behavioral Investment Management: An Efficient Alternative To Modern Portfolio Theory\u003cbr\u003e\u003cbr\u003e- Confessions Of A Wall Street Whiz Kid\u003cbr\u003e\u003cbr\u003e- The Essentials Of Financial Analysis\u003cbr\u003e\u003cbr\u003e- Fusion Analysis\u003cbr\u003e\u003cbr\u003e- Joyce, Queen Of The Mountain\u003cbr\u003e\u003cbr\u003e- Profit With The Market Profile: Identifying Market Value In Real Time","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133920899441,"sku":"316BOOKSPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_bdac9808-5f32-41ce-9cb6-3405c5f25bf8.jpg?v=1739657374"},{"product_id":"stcov301usvi","title":"Stocks \u0026 Commodities V. 30:12 (16-22): Using VIX To Forecast The S\u0026P 500 by Trent Gardner","description":"Using VIX To Forecast The S\u0026amp;P 500 by Trent Gardner\u003cbr\u003e\u003cbr\u003eFinding a trading system that beats the buy \u0026amp; hold method is a good find, especially in a volatile market. Here is a trading system that uses the volatility index as a forecasting tool and outperforms the buy \u0026amp; hold approach.\u003cbr\u003e\u003cbr\u003eCan the volatility index (VIX) be used to predict the future of the Standard \u0026amp; Poors 500? New ideas have arisen in academic literature that suggest that combining technical analysis with the VIX can result in a predictive model that will beat the buy \u0026amp; hold of the S\u0026amp;P 500. James Kozyra and Camillo Lento tested nine trading rules and found that eight of the nine produced positive results.\u003cbr\u003e\u003cbr\u003eThe VIX is often referred to as the fear index or fear gauge. It represents the implied volatility in the stock market for the next 30 days. The VIX is calculated in real time by the Chicago Board Options Exchange (CBOE) and is a weighted blend of option prices for the S\u0026amp;P 500. The formula that calculates the index takes current market prices for all out-of-the-money options for the first and second nearest months.\u003cbr\u003e\u003cbr\u003eFigure 1 shows the VIX from 2003 to October 2012. Note how it is mostly flat to down and is punctuated with violent spikes. The spikes in the data occur during times when the S\u0026amp;P 500 is selling off. Thus, it is safe to say that the VIX is negatively correlated with the S\u0026amp;P 500.\u003cbr\u003e\u003cbr\u003eUSING THE VIX TO FORECAST\u003cbr\u003e\u003cbr\u003eThe most robust trading rule is a simple 50-day moving average crossover of the VIX. It was able to produce 12.7% annual returns over the period from January 1999 through July 2009. These performances exceed the buy \u0026amp; hold approach by 12.49%, leading them to conclude that the VIX can predict the S\u0026amp;P 500. For the period, buy \u0026amp; hold yielded a total of 2.28% or an annualized yield of just 0.21%.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133922701681,"sku":"443GARDPDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_c7ba78c3-1546-46be-b51e-54aecedd2d67.jpg?v=1739657491"},{"product_id":"stcov30678tr1","title":"Stocks \u0026 Commodities V. 30:9 (65-70, 78-79): Trading Tips by Technical Analysis, Inc.","description":"Trading Tips by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eFor this months Traders Tips, the focus is Vladimir Vladimirovich Voznjuks article in this issue, Developing A Multilevel Strategy. Here we present the September 2012 Traders Tips code.\u003cbr\u003e\u003cbr\u003eCode for NinjaTrader 7 is already provided in Voznjuks article by the author. Subscribers will find that code at the Subscriber Area of our website, www.Traders.com. (Click on Article Code from our homepage.) 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 the September 2012 Traders Tips code at our website, Traders.com. Here, you can read 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":52133924634993,"sku":"392TIPSPDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_e8d422e0-4bea-463c-9776-0607a9708ba8.jpg?v=1739657580"},{"product_id":"stcov301dapr","title":"Stocks \u0026 Commodities V. 30:6 (18-24): Daytrading Price Volatility Breakouts by Ken Calhoun","description":"Daytrading Price Volatility Breakouts by Ken Calhoun\u003cbr\u003e\u003cbr\u003eHeres how to recognize specific patterns that can be incorporated into a successful trading strategy.\u003cbr\u003e\u003cbr\u003e\nEntering daytrades using well-defined technical signals is often based on specific price-based patterns. One of the most valuable daytrading tactics is using price volatility breakouts, which is defined as using the length of single price action moves to help determine trading entries. For example, the height of a specific cup pattern and percentages of the average trading range (ATR) are integral parts of daytrading strategies used by experienced traders when trading specific price volatility patterns.\u003cbr\u003e\u003cbr\u003eDAYTRADING PRICE EXTENSIONS\u003cbr\u003e\u003cbr\u003eUnderstanding specific price elasticity patterns is a key to precise daytrading because the most recent price elasticity (in both a full days average range as well as the depth of cups) is the best predictor of future price action. For example, in the two-day Netflix (NFLX) chart in Figure 1, you can see that on March 20, 2012, the opening range breakout range was exactly three points (116.7113.7). On the following day, the opening range price extension was an identical three-point range (115.8 to 118.8).\u003cbr\u003e\u003cbr\u003eArmed with this information, an astute daytrader would know to scale into a trade during the initial three-point run. He or she would also know to tighten in a trailing stop as the trade reaches the three-point price extension area during the second day in which this pattern is observed.\nThis type of price volatility breakout pattern recognition skill is part of what makes pattern daytrading a potentially successful technical trading strategy. The more often these microprice patterns are observed, the better our understanding of the volatility, and thus the more knowledge that a trader can gain about the instrument being traded.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133926142321,"sku":"321CALHPDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_acd19c79-1e2a-453e-9ad2-bdaa830a24a2.jpg?v=1739657698"},{"product_id":"stcov303vosp","title":"Stocks \u0026 Commodities V. 30:8 (36-40): Volume Spike Analysis by Vince Knott, CMT, CAIA","description":"Volume Spike Analysis by Vince Knott, CMT, CAIA\u003cbr\u003e\u003cbr\u003eJust about every trader uses volume. How can you use it?\u003cbr\u003e\u003cbr\u003eThere are many ways to use technical analysis to generate profitable trades with enticing risk\/reward ratios. However, the sellers of technical analysisbased products often exaggerate the power of simple technical tools. To succeed as a trader, you must not only apply your methods properly but also use your technical tools in a different way than others do. In this article, you will discover a new method for analyzing volume and how it can be applied to a trading strategy to be used on multiple time frames.\u003cbr\u003e\u003cbr\u003eVOLUME\u003cbr\u003e\u003cbr\u003eVolume is one of the most important tools in trading. Every type of market participant, whether trader or investor, uses volume. Volume shows how many shares of a stock have been traded in a given period of time. Price bars with high volume are more informative than those with low volume. Many patterns emerge out of volume bars, and many technical tools are also derived from volume.\u003cbr\u003e\u003cbr\u003eOne important factor in generating a good risk\/reward ratio is trading the right stocks. You want to trade stocks that are active. It is generally accepted amid technicians that an increase in volume leads to an increase in volatility.\u003cbr\u003e\u003cbr\u003eFiltering your stocks to trade only the ones with a recent increase in volume will help you find better trading candidates. Finding stocks that are about to make large moves is at the essence of a great risk\/reward ratio. Once you have found the proper stocks, how do you use volume to evaluate your entries? Lets go over some of the ways traders deal with volume analysis:\u003cbr\u003e\u003cbr\u003eTechnically derived volume indicators: One of the more popular ways of looking at volume is through technically derived volume indicators. A popular one is the on-balance volume (OBV). OBV is a running total of positive and negative volume. You can judge whether volume is flowing into or out of a stock. This indicator appears on your chart in a similar way as the relative strength index (RSI). You can see an example of the OBV applied to a price chart of Intuitive Surgical Inc. (ISRG) in Figure 1. One way that traders use OBV is to identify divergences and anticipate reversals. A downfall of this indicator is that large volume spikes can throw off the indicator in the near term.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133926175089,"sku":"363KOTTPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_3f39cb9a-0102-4bf8-9633-a0dda2901c0e.jpg?v=1739657700"},{"product_id":"stcov306trti1","title":"Stocks \u0026 Commodities V. 30:2 (61-70): Traders' Tips by Technical Analysis, Inc.","description":"Traders' Tips by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eFor this months Traders Tips, the focus is Barbara Stars article in this issue, Trade Breakouts And Retracements With TMV. Code for Stars template of indicators in MetaStock is already provided in Stars 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":52133926437233,"sku":"V30C02_249TIPSPDF","price":4.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_576c2495-ef54-433d-9ae0-f3ae447acc40.jpg?v=1739657704"},{"product_id":"stcov30880at3","title":"Stocks \u0026 Commodities V. 30:11 (82, 80-81): At The Close: The Mindful Trader by Jeffrey R. Bacon","description":"At The Close: The Mindful Trader by Jeffrey R. Bacon\u003cbr\u003e\u003cbr\u003eTraders know that market movements can play havoc with their emotions and concentration. Letting go of concentration-breaking emotions before sitting down to the trading desk can make the difference between a winning trading day and a losing one. Whether you are a high-pressured daytrader watching half a dozen positions on your monitor all day, or a buy \u0026amp; hold fundamentalist pouring over company financials, mindful moments in your trading day can sharpen your focus for more efficient and profitable trades.\u003cbr\u003e\u003cbr\u003eWHAT IS MINDFULNESS?\u003cbr\u003e\u003cbr\u003eNyanaponika Thera, in his book The Power Of Mindfulness, described mindfulness as the clear and single-minded awareness of what actually happens to us and in us at the successive moments of perception. Traders understand that attention to market activity and research associated with due diligence requires discipline and some degree of separation of emotions from the facts.\u003cbr\u003e\u003cbr\u003eDavid S. Ludwig and Jon Kabat-Zinn, in an article published in the Journal Of The American Medical Association, stated:\u003cbr\u003e\u003cbr\u003eThe current age has been referred to as one of continuous partial attention. E-mail, cell phones, and other technology invade nearly every moment of waking life. Economic pressures demand ever-increasing productivity, even as time to enjoy the fruits of labor declines.\u003cbr\u003e\u003cbr\u003eSuch external distractions, along with internal distractions like worries, frustrations, depression, anger, and fear, join forces to gnaw away at the traders concentration and discipline. Busy traders know such moments interfere with rational trading.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133926470001,"sku":"439BACONPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_a80aa2cc-66d2-41cd-8c0c-5f1fb038e477.jpg?v=1739657707"},{"product_id":"stcov306fufo","title":"Stocks \u0026 Commodities V. 30:1 (62): Futures For You by Carley Garner","description":"Futures For You by Carley Garner\u003cbr\u003e\u003cbr\u003eCOT, REPORTABLE OR NON\u003cbr\u003e\u003cbr\u003eHow do I read the CFTCs COT report and should I be following the commercial or nonreportable groups?\u003cbr\u003e\u003cbr\u003eIn the Futures For You column in the December 2011 issue, we learned that the CFTCs Commitment of Traders (COT) report displays the net long and short positions of large speculators, hedgers, and small speculators. This time, lets look at how this information might be useful to traders regardless of the overall strategy.\u003cbr\u003e\u003cbr\u003eTraditionally, traders look to computer-generated oscillators such as relative strength index (RSI) and stochastics to identify overbought or oversold market conditions. I also like monitoring market sentiment in trading blogs, chat rooms, and news services for signs of overcrowded opinions; but the best place to determine whether prices have been stretched too far may be the COT report.\u003cbr\u003e\u003cbr\u003eIn my opinion, the best use of COT data is to identify overcrowded trades. Once a market is overheated, it can be vulnerable to mass liquidation, which can wreak havoc on the profits of those following the herd and, worse, could even lure latecomers just before the trend sharply reverses. Remember, once the last man buys, the market sells, and the COT offers a behind-the-scenes glimpse into when and where that might be.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133927977329,"sku":"V30C01_230GARNPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_454a3edc-0cd8-4f43-97ae-60380624d791.jpg?v=1739657819"},{"product_id":"stcov307bofo11","title":"Stocks \u0026 Commodities V. 30:12 (76) Books For Traders by Technical Analysis, Inc.","description":"Books For Traders by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eOperations Due Diligence: An M\u0026amp;A Guide For Investors And Business\u003cbr\u003e\u003cbr\u003eThe Definitive Guide To Point And Figure: 2nd Edition\u003cbr\u003e\u003cbr\u003eThe Dividend Investor\u003cbr\u003e\u003cbr\u003eMarber On Markets: How To Make Money From Charts\u003cbr\u003e\u003cbr\u003eMutual Funds Explained\u003cbr\u003e\u003cbr\u003eTrend Trading Set-ups: Entering And Exiting Trends For Maximum Profits","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133928010097,"sku":"456BOOKPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_dbf39720-7e29-4713-a017-c0f6490bc918.jpg?v=1739657822"},{"product_id":"stcov303moda","title":"Stocks \u0026 Commodities V. 30:5 (34-38): The Most Dangerous Game by Gareth Burgess","description":"The Most Dangerous Game by Gareth Burgess\u003cbr\u003e\u003cbr\u003eIn the high-risk trading world, we are confronted with fear, greed, and hope. Understanding why may help us embrace some of our emotional shortcomings and incorporate them into our trading.\u003cbr\u003e\u003cbr\u003eThe desire to make money is what attracts people to the financial markets, and even if you have found a method or plan that works for you, your emotions could get the better of you. To fight against such an occurrence, we must train to combat every type of situation that the trading life throws at us. Learning about the financial markets, making a plan, and then preparing for it is a must for every trader and investor.\u003cbr\u003e\u003cbr\u003eANALYZING CHARTS\u003cbr\u003e\u003cbr\u003eChart observation tells us that price action moves up and down. This analysis, however, becomes counterproductive once a trade has actually been initiated. If you are losing money on the trade, you must decide when to exit, but often that decision is not taken and the loss continues to grow. All too often, the losses end up big and the profits small.\u003cbr\u003e\u003cbr\u003eTo understand the problems that many traders face, especially during their first months of trading, you must define the time range of each trade. A trade based on a daily chart signal that is meant to run over a period of weeks, if not months, has a different profile from one placed on a 15-minute chart with the intention of running for minutes or hours. This becomes clear from Figures 1 and 2.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133930729841,"sku":"304BURGPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_4ee21be4-2a79-4996-b258-0495b2d722b7.jpg?v=1739657930"},{"product_id":"stcov303sytr","title":"Stocks \u0026 Commodities V. 30:3 (36-41): System Trading Made Easy With John Bollinger","description":"System Trading Made Easy With John Bollinger\u003cbr\u003e\u003cbr\u003eJohn Bollinger is an analyst, author, and president and founder of Bollinger Capital Management, an investment management company that provides technically driven money management services. Bollinger Capital Management also develops and provides proprietary research for institutions and individuals. He may be best known as the creator of Bollinger Bands, which he developed in the mid-1980s. Since then, investors and traders have come to view Bollinger Bands as a reliable tool for assessing expected price action, and the bands are featured on most financial charting software and websites.\u003cbr\u003e\u003cbr\u003eBollingers Capital Growth Letter, which has been published since 1987, provides market commentary, charts, and investment advice for the average investor employing a technically driven asset allocation approach. He has also developed several investor websites, among which are BollingerBands.com, EquityTrader.com,\nBollingerOnBollingerBands.com, BBScript.net, and a forex website, BBForex.com.\u003cbr\u003e\u003cbr\u003eJohn Bollinger, a longtime proponent of rational analysis, the combination of technical and fundamental analysis, was the first analyst to earn both Chartered Financial Analyst (CFA) and Chartered Market Technician (CMT) designations.\nS\u0026amp;C Editor Jayanthi Gopalakrishan and Staff Writer Bruce R. Faber interviewed John Bollinger via telephone on January 4, 2012.\u003cbr\u003e\u003cbr\u003eJohn, as you and your work are well known in our industry, can you begin by telling us the most recent things youve been working on?\u003cbr\u003e\u003cbr\u003eA little more than two years ago, I had the pleasure of spending time with Ian Woodward, who has been doing some interesting things with Bollinger Bands. It was an inspiring time for me. Over the next few weeks, I realized that I could develop an entire framework of indicators around Bollinger Bands that covered virtually all of the traditional technical analysis tasks.\u003cbr\u003e\u003cbr\u003eWhere did you start?\u003cbr\u003e\u003cbr\u003eThe first result was an indicator called BB Impulse, which quantifies price action in relation to the bands, and from there I went on to develop a trend indicator. I next developed a momentum indicator, and kept expanding the horizon until I had a complete suite of indicators that were all logically consistent and drawn from the same basic pool of technical information. Ive ended up with an array of new tools. I have been able to leave behind some older tools and replace them with better ones. It has been a great two years.\u003cbr\u003e\u003cbr\u003eThe two projects I worked on went way back for me. When I created Bollinger Bands, I created two indicators to go with them, %b and BandWidth. %b tells us where we are in relation to the bands. If prices are at the upper band, %b is 1 and if prices are at the lower band, %b is zero. If prices are at the middle band, %b is 0.5. BandWidth tells you how wide the bands are. In order to measure that, we use the middle band, or the moving average, as a reference point. Those were the two building blocks we had to start with.\u003cbr\u003e\u003cbr\u003eAnd what was the second project?\u003cbr\u003e\u003cbr\u003eAbout that time I started thinking about a language in which we could express these ideas and exchange these ideas with other technicians and others who are interested in developing systems and approaches to the market. Using as a basis a logic we employed, I created a simple computer language and called it Trade. To get there we tried to overcome the disadvantages of traditional logic for traders. In traditional logic, everything is black or white, one or zero, yes or no, long or short.\nBut that does not really model how traders think about the markets. So I worked with an engineer friend and developed a tristate logic, which was 1, 0, and ‑1. We could map that better onto the trading process that is, long, flat, or short. With that, we had a logic that modeled what traders did better. I wrote Trade to be able to communicate those ideas. All of these parts and pieces started to come together in the past couple of years.\nAt some point I abandoned the tristate logic model because I realized that even that was not sufficient to describe what traders really did. Traders often scale in or out of positions, or are 20% long, or 20% short, or some variation. So we combined the ideas of fuzzy logic from the original tristate model and produced a smooth-valued logic that describes how traders function in real life.\nThen the final piece was to write the language as a computer interface to express our ideas in a straightforward way. We wrote a compiler that would interpret those ideas and put them on the screen.\nIts been a very, very active two years, during which I pulled together a large number of threads from past years and combined them into a powerful framework for traders.\u003cbr\u003e\u003cbr\u003eSounds like a lot of work. So how would a trader use something like that?\u003cbr\u003e\u003cbr\u003eIt was an awful lot of ideas in a very short time, so it might be better to focus on a few of the indicators and how they might be used.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133933973873,"sku":"V30C03_262INTPDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_9a4fcd55-dcf6-4fa7-8762-4dedb3e7d057.jpg?v=1739658040"},{"product_id":"stcov30564tr","title":"Stocks \u0026 Commodities V. 30:7 (56-59, 64): Trading Ticket: iShares Country ETFs by Jayanthi Gopalakrishnan","description":"Trading Ticket: iShares Country ETFs by Jayanthi Gopalakrishnan\u003cbr\u003e\u003cbr\u003eSelect Sector SPDRs\u003cbr\u003e\u003cbr\u003e Financial Select Sector SPDR (XLF)\n Consumer Discretionary SPDR (XLY)\u003cbr\u003e\u003cbr\u003eWe have seen our fair share of volatile markets over the past few years. Just when we thought the markets were gearing up for a nice rally, the economic problems in the eurozone sent them back to that same volatile behavior. Even though in times of economic crisis all sectors tend to follow the broader markets, there are some such as consumer staples, health care, and utilities that are considered safe havens. Then, just as the markets start to recover, sectors such as financials, consumer discretionary, and industrials tend to outperform.\u003cbr\u003e\u003cbr\u003eIn Giorgos E. Siligardos article this issue, Applying The Sector Rotation Model, the author states that the outperformance of energy, consumer staples, health care, and utilities warn of possible trouble in the broader markets, whereas the outperformance of financials and consumer discretionary sectors indicate a stock market flush.\u003cbr\u003e\u003cbr\u003eIn addition, Siligardos also suggests two sites where you can keep track of the performance of the various sectors. Let us take a look at these as our first step in analyzing sectors. The sector charts available at StockCharts.com (see end of this article) gives you a picture of the various Select Sector SPDRs. I chose the charts of the five sectors mentioned in the article using the Select Sector SPDR funds, XLF, XLY, XLE, XLP, and XLU.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133934006641,"sku":"351TICKETPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_7cb9e717-5984-4d83-8c91-44590176d934.jpg?v=1739658043"},{"product_id":"stcov307bofo","title":"Stocks \u0026 Commodities V. 30:1 (76): Books For Traders by Technical Analysis, Inc.","description":"Books For Traders by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eCurrency Trading For Dummies\u003cbr\u003e\u003cbr\u003eThe Little Book Of Trading: Trend Following Strategy For Big Winnings\u003cbr\u003e\u003cbr\u003eThe Market Takers Edge: Insider Strategies From The Options Trading Floor\u003cbr\u003e\u003cbr\u003eMastering Market Timing: Using The Works Of L.M. Lowry And R.D. Wyckoff To Identify Key Market Turning Points\u003cbr\u003e\u003cbr\u003eThe Monopoly Method: An Insiders Guide To Navigating Wall Street And Becoming A Better Investor\u003cbr\u003e\u003cbr\u003eTradeStation Made Easy! Using EasyLanguage To Build Profits With The Worlds Most Popular Trading Software","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133934039409,"sku":"V30C01_223BOOKPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_3aa3ea0f-144e-4280-883b-459a6d1d7a27.jpg?v=1739658046"},{"product_id":"stcov307bofo7","title":"Stocks \u0026 Commodities V. 30:8 (73): Books For Traders by Technical Analysis, Inc.","description":"Books For Traders by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eThe following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new book offerings.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133934072177,"sku":"375BOOKPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_7f138278-4d58-45eb-8de4-6171ed81b123.jpg?v=1739658048"},{"product_id":"stcov302fufo","title":"Stocks \u0026 Commodities V. 30:11 (21): Futures For You by Carley Garner","description":"Futures For You by Carley Garner\u003cbr\u003e\u003cbr\u003eCUSTOMER-SEGREGATED FUNDS\u003cbr\u003e\u003cbr\u003eWhat exactly are customer-segregated funds in relation to futures trading accounts?\u003cbr\u003e\u003cbr\u003eUntil the autumn of 2011, more specifically the collapse of MF Global, few outside of the futures industry were aware of the term customer-segregated funds. The failure of PFG to uphold the sanctity of customer-segregated funds in the summer of 2012 catapulted the phrase into daily usage in national media outlets, and maybe even the homes of many Americans.\u003cbr\u003e\u003cbr\u003eCustomer-segregated funds are exactly what the name implies; they are monetary deposits made by clients that are segregated from the assets of the brokerage firm. When a client opens a trading account with a futures commission merchant (FCM), which is a term for a brokerage firm registered with the Commodities Futures Trading Commission (CFTC), he is writing a check payable to the FCM for deposit in a bank account that holds client funds but not the brokerage firms funds. Or if funding by wire, funds are sent directly into an account under the name of the FCM titled customer-segregated account.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133935939953,"sku":"423GARNPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_27dff95a-9040-444d-905b-6b2b7b7cde00.jpg?v=1739658191"},{"product_id":"stcov308leto5","title":"Stocks \u0026 Commodities V. 30:10 (8): Letters To S\u0026C by Technical Analysis, Inc.","description":"AUGUST 2012 TRADESTATION TRADERS TIP\u003cbr\u003e\u003cbr\u003eEditor,\u003cbr\u003e\u003cbr\u003eI have a question about TradeStations Traders Tip from the August 2012 S\u0026amp;C.\nWhen I downloaded the EasyLanguage code file SEMIND.ELD from the TradeStation support forum website as mentioned in the writeup, the indicator feature could not be displayed on the chart. The error message I received was _SRMIND is missing Data 2,3,4,5,6. Please advise how I can solve this issue.\u003cbr\u003e\u003cbr\u003eThanks very much.\nJia","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133935972721,"sku":"399LETTPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_85a0737e-a546-45c2-87b5-3630e2f004d7.jpg?v=1739658194"},{"product_id":"stcov301sest","title":"Stocks \u0026 Commodities V. 30:4 (12-18): Setting Strategies With SwamiCharts by J. F. Ehlers and R. Way","description":"Setting Strategies With SwamiCharts by J. F. Ehlers and R. Way\u003cbr\u003e\u003cbr\u003eOnce you have identified a cyclical movement, you may think the most difficult part is over. Unfortunately, not all cycles are tradable. Heres one indicator that can tell you the best time to use a swing wave as an effective trading signal.\u003cbr\u003e\u003cbr\u003eFor the most part, the rendering of technical indicators has not changed since the days of pencil \u0026amp; paper charting. The powers of modern computers have made this unnecessary and allowed for deeper insight into market activity. In our last article, we introduced SwamiCharts as a new and intuitive way to view indicators in context of all lookback periods. SwamiCharts accomplished this by using the vertical scale as the indicator lookback period and painting the indicator value at each lookback period as a color.\u003cbr\u003e\u003cbr\u003eIn this article, we will show you how to see all the waves in the data, which leads to some startling conclusions. However, the existence of cycles does not necessarily mean they are all tradable; for example, the cyclic swings can be overwhelmed by the slope of a trend. We will show you how to compute this and how to use the result as a decision to follow the trend or to swing trade.\u003cbr\u003e\u003cbr\u003eSWAMICHARTS SWING WAVE\u003cbr\u003e\u003cbr\u003eIf you know the correct cycle period, the best way to isolate the wave is to use a bandpass filter. We decided to use the EasyLanguage code to compute the bandpass filter in corona charts to measure the dominant cycle and one of the filters in the Swiss army knife indicator. For your convenience, a two-pole bandpass filter EasyLanguage code fragment is shown in the first sidebar, EasyLanguage Code Fragment To Compute A Bandpass Filter. The bandpass filter code is displayed in the second sidebar, Bandpass Filter Code In EasyLanguage. In the code, delta = 0.1 means the filter has a +\/‑10% passband about the tuned cycle period.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133938626929,"sku":"V30C04_278EHLEPDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_e9583f46-febe-42ef-9758-3fbab1b88f68.jpg?v=1739658399"},{"product_id":"stcov304inmi","title":"Stocks \u0026 Commodities V. 30:11 (48-54): Interview:Michele Mish Schneider by Jayanthi Gopalakrishnan and Bruce Faber","description":"Interview:Michele Mish Schneider by Jayanthi Gopalakrishnan and Bruce Faber\u003cbr\u003e\u003cbr\u003eMichele Mish Schneider, the director of trading education \u0026amp; research for MarketGauge, provides in-depth trader training as the market analyst, writer, and host of Mishs Market Minute. She contributes to several online trading publications and serves as a regular contributor to MarketGauges free newsletters Market Outlook and MMMDaily. Mish brings passion as well as expertise as a world-class educator to the trading world.\u003cbr\u003e\u003cbr\u003eA former member of the Coffee, Sugar and Cocoa Exchange, NYMEX, and FINEX in New York City, as well as market analyst for Continental Grain and Floor Analyst for Conti-Commodities, Mish Schneider began as a floor broker before becoming an independent trader for her own account. Noted for her technical analysis, she has advised some of the most successful traders in the world.\u003cbr\u003e\u003cbr\u003eIn 2010, Schneider was voted one of the 100 Best Damn Stock Traders on Twitter by SocialExec.com. She coauthored MarketGauges Complete Swing Trading System and currently serves as a trader\/partner in Halcyon Trading LP, a hedge fund. She also is a founder\/partner in Wizard IP, a software development company developing and deploying state-of-the-art trading technology.\u003cbr\u003e\u003cbr\u003eStocks \u0026amp; Commodities Editor Jayanthi Gopalakrishnan and Staff Writer Bruce Faber spoke with Schneider on September 7, 2012.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133938659697,"sku":"428INTPDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_9307dac3-18e1-45f1-a387-fd899b39d6a0.jpg?v=1739658402"},{"product_id":"stcov308leto1","title":"Stocks \u0026 Commodities V. 30:4 (8-10): Letters To S\u0026C by Technical Analysis, Inc.","description":"Letters To S\u0026amp;C by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eBACKTESTING WITH OUT-OF-SAMPLE DATA\u003cbr\u003e\u003cbr\u003eEditor,\u003cbr\u003e\u003cbr\u003eI have been developing an intermediate-term stock trading model, which captures weekly closes of stock prices (approximately 550) and major indexes from 12\/31\/1999 to 1\/27\/2012. My model has been optimized and backtested for the in-sample data from 12\/31\/1999 to 06\/25\/2010 with excellent results. The data from 6\/25\/2010 to 1\/27\/2012 has been forward-tested (out of sample) and has a return of 32.05% compared to a 24.81% return of the Dow Jones Industrial Average (dividends not included).\u003cbr\u003e\u003cbr\u003eIn order to determine the feasibility of my model and also to enhance my confidence in it, I would like to know: If I downloaded several additional stocks to my database from 2000 to present and run them against my rules, would the additional data be considered out-of-sample data?\u003cbr\u003e\u003cbr\u003eDominick Paoloni\nRoselle, NJ\u003cbr\u003e\u003cbr\u003eLooking at the definitions of in-sample and out-of-sample testing may help you determine whether testing on additional data would qualify as out-of-sample. When you run a system on the same historical data set that was used to develop the system, it is considered in-sample data. Out-of-sample testing is when you run the same system on data that it has not encountered before in the same market and time frame.\nEditor","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133938692465,"sku":"V30C04_277LETTPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_63d7ec6f-d518-4f01-af96-71f4501f1df1.jpg?v=1739658404"},{"product_id":"stcov303voan","title":"Stocks \u0026 Commodities V. 30:9 (36-44): Volume And Divergence by Gail Mercer","description":"Volume And Divergence by Gail Mercer\u003cbr\u003e\u003cbr\u003e\nHeres how you can use a divergence between price and volume for trading forex futures or exchange traded funds.\u003cbr\u003e\u003cbr\u003eThe first time I looked at volume on my charts, I thought there had to be something significant in those bars, but I just could not put my finger on what it was. So to find out, I read books, went to seminars, attended online webinars, and studied all the cutting-edge techniques: the low-volume bars, the high-volume bars, the ultra high-volume bars, the signs of weakness, and the signs of strength. Yet on the live edge of the market, the concepts eluded me.\u003cbr\u003e\u003cbr\u003eInstead of trading, I found myself frozen with fear of pulling the trigger because I did not know if there were hidden buyers or sellers behind the bar.\u003cbr\u003e\u003cbr\u003eKNOW YOUR BUYERS AND SELLERS\u003cbr\u003e\u003cbr\u003eAfter years of frustration I simply took volume off my charts altogether, realizing I might not ever be able to read those little sticks as others could. In lieu of volume, I opted to simply focus on price with my analysis premise defined around price making higher highs and lows, or lower lows and highs, or in congestion (erratic highs and lows).\u003cbr\u003e\u003cbr\u003eAs I continued to analyze the markets that way, I revamped my understanding of volume to price with a simplified approach. This new method took my volume analysis to the following two questions: was the close greater than the open (buyers), or was it less than the open (sellers)? That was all I needed to know regarding volume.\u003cbr\u003e\u003cbr\u003eNevertheless, I still had this feeling that volume was important, so I continued to look at it on occasion. Finally, I partnered with the principals of FulcrumTraders.com who specialize in cumulative delta volume analysis (CDVA). CDVA displays what buyers and sellers are doing at a particular moment in a candlestick formation. It allows you to actually see the volume displayed just like a candlestick price chart. For the first time, this new approach made me feel as though I might be able to understand volume.\u003cbr\u003e\u003cbr\u003eAlthough cumulative delta allows a higher level of understanding of the auction process, the technique I was attracted to was the momentum play. I gravitated toward momentum because I understood divergence, and the momentum play was based on divergence. It was also the most visual of their applications, and this made it easier for me to grasp. Finally, I was beginning to see what volume analysis was all about rather than trying to grasp vague volume concepts.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133940167025,"sku":"384MERCEPDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_1fdd6904-ca9f-4654-ad6f-fafe9cbb171b.jpg?v=1739658505"},{"product_id":"stcov30880at2","title":"Stocks \u0026 Commodities V. 30:5 (82, 80-81): At The Close: Pair Trading And Chart Construction by Ronald McEwan","description":"At The Close: Pair Trading And Chart Construction by Ronald McEwan\u003cbr\u003e\u003cbr\u003ePair Trading And Chart Construction\u003cbr\u003e\u003cbr\u003eIn this, the second part of this series, find out how to construct a spreadsheet to help reveal profitable opportunities in pair trades.\u003cbr\u003e\u003cbr\u003eIN the first part of this series, I explained that pair trading is classified as a market-neutral strategy, where you are not concerned with market direction, up or down. The idea, I asserted, is to exploit temporary price discrepancies in two (or more) securities by simultaneously going long the outperforming security and going short the underperforming security. I looked at how to enter stock data and the formulas to calculate returns, cumulative returns, regression residuals, and the formulas to transform the calculations for use as chart inputs.\nThis time, we will complete the Excel spreadsheet for identifying the mean reversion (comovement) characteristic of a spread in a pair of stocks. Heres how:\u003cbr\u003e\u003cbr\u003eStep 1\u003cbr\u003e\u003cbr\u003ePlot cumulative return residuals. The first chart to create is an XY scatter chart of the residual data in columns K and M. Figure 1 displays the spreadsheet, but please refer to my previous article for a detailed description of how to create this spreadsheet. Enter these ranges in an XY scatterplot B:\u003cbr\u003e\u003cbr\u003eX values =Sheet1!$K$10:$K$118\nY values =Sheet1!$M$10:$M$118\u003cbr\u003e\u003cbr\u003eYou will need to add a trendline to the residual data points and select the display R-squared value. The finished chart will look like what you see in Figure 2.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133940199793,"sku":"317MCEWPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_6285b7d4-4b89-48d6-80cc-27c70c6cd9e2.jpg?v=1739658507"},{"product_id":"stcov30881at3","title":"Stocks \u0026 Commodities V. 30:9 (82, 81): At The Close: Charting True Internals \u0026 Peripherals by Richard J. Johnson","description":"At The Close: Charting True Internals \u0026amp; Peripherals by Richard J. Johnson\u003cbr\u003e\u003cbr\u003eThis simple charting technique is derived\nfrom J. Welles Wilders true range.\u003cbr\u003e\u003cbr\u003eWelles Wilder, one of the founders of modern technical analysis, developed many technical indicators and tools still in use today: relative strength index (RSI), average directional movement index (ADX), and true range (TR), to name only a few. I have developed a simple charting technique derived from his construction of the true range.\nWilders true range concept presupposes that the human mind is aware of not only a present periods activity, but also the immediate prior periods activities and results. Consciously or not, traders and technicians are cognizant of present market action relative to the previous periods performance and levels. Therefore, when determining data to analyze, at least a whisper of the previous periods closing price should be factored into the present data.\u003cbr\u003e\u003cbr\u003eINTERNALS AND PERIPHERALS\u003cbr\u003e\u003cbr\u003eTrue highs are either the present periods high or the prior closing price, whichever is higher. True lows are either the present periods low or the prior closing price, whichever is lower. These are the data points that compute the present periods true range. True internals \u0026amp; peripherals (TIP) are two data screening techniques that refer back to the prior period based on Wilders insight.\u003cbr\u003e\u003cbr\u003e","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133940232561,"sku":"397ATCPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_a6b4aeb8-aaed-47b1-969c-d460bc24a497.jpg?v=1739658510"},{"product_id":"stcov303fufo","title":"Stocks \u0026 Commodities V. 30:5 (39): Futures For You by Carley Garner","description":"Futures For You by Carley Garner\u003cbr\u003e\u003cbr\u003eSTAYING COOL\u003cbr\u003e\u003cbr\u003eHow can traders improve their ability to manage emotions and stay calm under pressure?\nThe most influential factor in trader success or failure is the ability to manage emotions. The inability to keep fear and greed in check can lead to financial and psychological devastation. After all, speculation is not a 9-to-5 venture in which traders are paid to show up for work. It is performance based; the capacity to produce income is contingent on the ability to function efficiently and behave logically.\u003cbr\u003e\u003cbr\u003eEmotional traders are more likely to make poor decisions driven by revenge rather than analysis. Such a mindset can lead to overzealous trading, excessive risk taking, and a disregard for the intended strategy.\u003cbr\u003e\u003cbr\u003eUnfortunately, the ability to stay calm in both good and bad times is difficult to learn. Those who have mastered the art were probably born with a chunk of their proficiency, with the rest earned through experience.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133941707121,"sku":"304GARNPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_7d9d42ba-30c8-45ca-af42-a4f0e55ce77f.jpg?v=1739658621"},{"product_id":"stcov304exyo1","title":"Stocks \u0026 Commodities V. 30:4 (49): Explore Your Options by Tom Gentile","description":"Explore Your Options by Tom Gentile\u003cbr\u003e\u003cbr\u003eBUY MORE FOR LESS?\u003cbr\u003e\u003cbr\u003eI recently bought calls that proceeded to go up in price despite implied volatility dropping fairly hard from the levels associated with my initial purchase. Not wanting to look a gift horse in the mouth, yet wanting to maintain some directional exposure but also unwilling to sell call premium that appeared too cheap to me, I sold two-thirds of my position and let the balance ride. Do you think this was the right adjustment to make?\u003cbr\u003e\u003cbr\u003eCongrats on taking one course of action that, as the saying goes, allows you to have your cake and eat it too. As a rule, you cant fault your adjustment if, when executed, you took what you considered to be an acceptable portion of your profits and were confident with the size of the remaining position whose premium remains vulnerable to opportunity costs.\u003cbr\u003e\u003cbr\u003eIn what is typical of this type of scaling out of a position, many traders will look to adjust and sell half of the contracts once a profit of 50% to 100% is reached. For instance, if you purchase 10 calls for $1.00 and can sell five for $1.50, the balance of the five contracts still held have an effective price of $0.50, while selling five for a 100% gain or $2.00 would allow for a free call position on the remaining contracts. That said, it looks as if your actions were motivated by this popular adjustment route.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133941739889,"sku":"V30C04_285EYOPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_89f2a396-da33-4e03-9aff-9b230ac4606a.jpg?v=1739658625"},{"product_id":"stcov305prre4","title":"Stocks \u0026 Commodities V. 30:5 (50-52): Product Review: eSignal 11 by Jayanthi Gopalakrishnan","description":"Product Review: eSignal 11 by Jayanthi Gopalakrishnan\u003cbr\u003e\u003cbr\u003e\nIN a recent guest appearance on CNBC, author and analyst Nassim Taleb mentioned that a robust system is one that sustains shocks and improves after each one. Of course, he was referring to the banking and financial system of nations, but we could easily apply this concept to creating our own trading systems.\u003cbr\u003e\u003cbr\u003eESIGNAL FORMULA SCRIPT\u003cbr\u003e\u003cbr\u003eThe challenge, of course, lies in creating such a system, but just because it is challenging does not mean it is not possible. Almost all technical analysis software gives you the option of creating your own customized trading systems. eSignal offers their customers their eSignal Formula Script (EFS), which is a simple formula language that uses JavaScript. In this, the second part of this review series, I will cover the EFS feature of eSignal along with the trade integration feature.\u003cbr\u003e\u003cbr\u003eNot much has changed with regarding how you write the code for a trading system. You open the Script Editor, enter your code, and save it. After that, it is just a matter of inserting that study onto your charts. In Figure 1, you see John Ehlerss SwamiCharts stochastic inserted into the chart.\u003cbr\u003e\u003cbr\u003eThere are a few new features that have been added to the EFS feature set. For example, in previous versions if you wanted to change things like the colors on a chart or the appearance of a line, you would have to go into the EFS code and make changes to it. In this new version, all you do is double-click on the indicator in the chart and change the options on the Edit Chart window (Figure 2).","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133941772657,"sku":"308PRESIGPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_b9cade14-ee42-4f2b-8e88-146a9c3b0bfb.jpg?v=1739658627"},{"product_id":"stcov30881at2","title":"Stocks \u0026 Commodities V. 30:8 (82, 81): At The Close by Boris Tolmachev","description":"At The Close by Boris Tolmachev\u003cbr\u003e\u003cbr\u003eFrom Strategy To System\u003cbr\u003e\u003cbr\u003eHow in the world do I become a cricket? the ant asked. Crossly, the owl replied: Ive given you the strategy. Surely you can figure out the tactics on your own.\u003cbr\u003e\u003cbr\u003eTraders have different ideas when it comes to the definition of a trading strategy. Most of them believe that strategy is a combination of price indicators and chart patterns. This includes double (triple) bottoms, double (triple) tops, head \u0026amp; shoulders, or various divergences. This includes the existence of filters and a system of signals for opening and closing transactions similar to envelopes, trendlines, and volatility. The best systematic approaches to trading include initial screening methods such as Alexander Elders weekly chart or Van K. Tharps big picture.\u003cbr\u003e\u003cbr\u003eWHAT IS STRATEGY?\u003cbr\u003e\u003cbr\u003eIn spring 2008, the quantitative aspect of this problem attracted my attention. Intrigued, I asked various traders about the number of strategies they use. As I expected, their answers varied. Mayank Bajaj of India uses one, Elder uses two, and Catherine Shuster uses as many as necessary. I have used as many as six, while E. Berne said about three; Daniel Wiggins replied he used about 40 and Kerry Lovvorn said about 250 that he had researched.\u003cbr\u003e\u003cbr\u003eI got the impression the estimates of the number of trading strategies were erratic. Strategies mostly indicated the different combinations of trading rules. For example, Bajaj expected hanging man or hammer candles to be reversal days. Is this a strategy? To me, it is more of a standard tactical position, similar to corner playing in soccer.\u003cbr\u003e\u003cbr\u003eThis means that participating in the team attack is not necessary. Instead, you can wait for the corner kick by staying conveniently close to the goalposts. As soon as the ball arrives, kick it past the goalkeeper! This is a way to score goals, but it is not a strategy.\u003cbr\u003e\u003cbr\u003eA generalization of my observations suggests that what is considered a strategy are decisions at the initial phase where you anticipate the market status in the form of a trading idea. An alternative decision is to stay out of the market. Does this mean that a strategy determines the direction of the trade?","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133941805425,"sku":"377TOLMPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_928aedd8-9e36-478a-be73-f89ad0d04f22.jpg?v=1739658630"},{"product_id":"stcov304prre1","title":"Stocks \u0026 Commodities V. 30:3 (46-49): Product Review: OptionVue by Dennis D. Peterson","description":"Product Review: OptionVue by Dennis D. Peterson\u003cbr\u003e\u003cbr\u003eOptionVue software, which specializes in option trading, is a product that needs to be downloaded and installed on your computer. The software is designed to automatically use real-time datafeeds (for example, QuoteVue at $199.99 a month or $1,695 annually). You can make trades directly from OptionVue with two different brokerage firms, and there are two choices for a datafeed: OptionVue (using TrackData) and PFGBest for futures and future option trades.\u003cbr\u003e\u003cbr\u003eFEATURES\u003cbr\u003e\u003cbr\u003eOptionVue has some nifty features, and the website offers a number of videos to help users. They also have a patient and informed staff. In fact, almost all of the technical staff trade options themselves. Trading options is different than trading equities. Option traders focus on volatility and what the market is paying for volatility, and as a consequence, they use a different set of tools than those used by equity traders. Option traders want to have an idea how a stock, index, or future is going to move in what time frame, and commonly, they hedge their trades through the use of multiple-leg option strategies.\u003cbr\u003e\u003cbr\u003eQUOTES AND VOLATILITY\u003cbr\u003e\u003cbr\u003eOptionVue has a quote screen that comes up automatically and lists all the items, such as stocks, indexes, and futures, you have chosen to view (Figure 1).\u003cbr\u003e\u003cbr\u003eFrom your quote display, you can open up an option chain simply by double-clicking on the symbol of your choice. But before you do that, you might want to look at the volatility chart for the symbol you have selected.\u003cbr\u003e\u003cbr\u003eFor those not so familiar with options, lets take a quick step back. Option traders have two types of volatility, historical and implied. For historical volatility, OptionVue has come up with its own adaptation that it calls statistical volatility (SV). It is a standard deviation of price movement but uses the daily high and low, rather than closing prices. The high and low values it chooses are exponentially weighted over the previous 20 days. The exact computation can be found in OptionVues user manual at www.optionvue.com\/OV6Help\/OpVue.htm.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133943968113,"sku":"V30C03_264PROPPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_75b8aead-8aa3-41fd-be5e-11e3e489549f.jpg?v=1739658734"},{"product_id":"stcov301trbr","title":"Stocks \u0026 Commodities V. 30:2 (12-21): Trade Breakouts And Retracements With TMV","description":"Trade Breakouts And Retracements With TMV\u003cbr\u003e\u003cbr\u003eA Series Of Indicators Used As One\u003cbr\u003e\u003cbr\u003eTrade Breakouts And\nRetracements With TMV\u003cbr\u003e\u003cbr\u003eMaking good trading decisions involves finding indicators that cut through the market noise. But how do you do it without collapsing under the weight of information?\u003cbr\u003e\u003cbr\u003eby Barbara Star, PhD\u003cbr\u003e\u003cbr\u003eChart analysis is a multidimensional affair; no single indicator can tell the entire story. After spending years cluttering my screen with multiple indicators, I discovered that more is not necessarily better because they sometimes present conflicting information. Often, it takes longer to analyze the information needed to make decisions.\u003cbr\u003e\u003cbr\u003eThe goal is to integrate the knowledge that indicators provide in order to evaluate the situation that leads to making good trading decisions. That means each trader needs to find those indicators that cut through the market news (and noise) in a way that makes most sense to him or her without collapsing from information overload. Heres a method I have found useful.\u003cbr\u003e\u003cbr\u003eThe first step is to determine the categories from which to draw the indicators. For me, that includes trend, momentum, volatility, and volume (TMV). These present a multidimensional view of price behavior to supply a more complete picture.\u003cbr\u003e\u003cbr\u003eThe second step is to determine which indicators in those categories best fit our own personal trading styles. The TMV indicators I use are taken from technical tools found in most major charting packages: Keltner channels, the commodity channel index (CCI), the average directional movement index (ADX), and a volume oscillator. When combined, they reduce the clutter and offer the most bang for the informational buck (Figure 1).\u003cbr\u003e\u003cbr\u003eThe third and final step is to apply the chosen TMV indicators to trading. Because my preference is to trade in the direction of a trend, my examples will show how the indicators can be applied to trading price breakouts and retracements using either intraday or end-of-day data.\u003cbr\u003e\u003cbr\u003e","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133952946545,"sku":"V30C02_239STARPDF","price":4.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_891c2bc9-b87b-482a-b576-15465904b9e8.jpg?v=1739658823"},{"product_id":"stcov305wefo1","title":"Stocks \u0026 Commodities V. 30:10 (58): Websites For Traders: SOCIALTRADE.COM by Jayanthi Gopalakrishnan","description":"Websites For Traders: SOCIALTRADE.COM by Jayanthi Gopalakrishnan\u003cbr\u003e\u003cbr\u003eSOCIALTRADE.COM\u003cbr\u003e\u003cbr\u003eWith the rise in popularity of social networks, it is nice to see that traders are not being left behind. SocialTrade.com, a social media site for traders developed by Tim Knight (founder of Prophet.net, now owned by Ameritrade, and creator of ProphetCharts), is a place where you can organize and share your charts, articles, and anything with other traders. You could call it a virtual bulletin board where you organize and stack all your thoughts about the market. You can create a user profile and include various custom stacks that you can share with other social traders.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133952979313,"sku":"410WSSOCIPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_e57d2689-3026-4e41-8193-b6fc67ca9ece.jpg?v=1739658826"},{"product_id":"stcov306trti4","title":"Stocks \u0026 Commodities V. 30:5 (62-71): Traders' Tips by Technical Analysis, Inc.","description":"Traders' Tips by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eFor this months Traders Tips, the focus is Walid Khalils article in this issue, Sentiment Zone Oscillator.\u003cbr\u003e\u003cbr\u003eSeveral code listings for AmiBroker and one for MetaStock are already provided in Khalils article in this issue, and subscribers will find that code in the Subscriber Area of our website, Traders.com. (Click on Article Code from our homepage.) Presented here is additional code and 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, in the Traders Tips area. 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, click on the Traders Tips link from our home page.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133962056049,"sku":"312TIPSPDF","price":4.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_7d5aa0ec-4089-4bc1-b83f-6cc8069fa95a.jpg?v=1739658927"},{"product_id":"stcov303qaby","title":"Stocks \u0026 Commodities V. 30:1 (35): Q\u0026A by Don Bright","description":"Q\u0026amp;A by Don Bright\u003cbr\u003e\u003cbr\u003eABOUT THE TRANSACTION TAX\u003cbr\u003e\u003cbr\u003eI keep seeing online discussions of the new, proposed transaction tax. The things I have read make it seem like no big deal, a number around a quarter of 1% for each trade. I can see active traders paying a bit extra, but isnt this just another cost of doing business? What are your thoughts? fxguyandgal\u003cbr\u003e\u003cbr\u003eThanks for your insight over the years. I read a discussion of this new transaction tax that is being proposed. Will this have an effect on your traders? My broker hasnt given us any news regarding this at all. tradethemall\u003cbr\u003e\u003cbr\u003eI have received several inquiries about this proposed transaction tax. The tempo on this tax has picked up since the European community has jumped on the wagon. My friends in the industry think it is inevitable, just a matter of how much, when, and whos going to be affected.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133963465073,"sku":"V30C01_223QApdf","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_26cf8961-b1d2-4659-89bc-77e92b27e13c.jpg?v=1739659038"},{"product_id":"stcov306howw","title":"Stocks \u0026 Commodities V. 30:10 (60-61): How We Began by Technical Analysis, Inc.","description":"How We Began by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eBefore this magazine came together in the 1980s, trading and technical analysis were in a very different place in the financial industry than they are today. Fundamental analysis was the standard approach, while technical analysis was still considered exotic and suspect. Then personal computers were introduced, and a new era was born.\nOne of the few software products available in the early 1980s to help individual traders and investors perform technical analysis was CompuTrac, from a company of the same name run by Tim Slater. The CompuTrac software allowed for user studies to be added, which users could write in BASIC and for an Apple computer.\u003cbr\u003e\u003cbr\u003eJack Hutson, Technical Analysis of Stocks \u0026amp; Commodities magazines publisher and founder, had purchased a copy of the program, since he had an interest in the markets and technical analysis. Hutson had particular knowledge of fast Fourier transforms (FFT) at the time, having coded an FFT study in Fortran as part of an engineering project in college. Later, while employed as an engineer for The Boeing Co., he came back to that idea and began to work on it again, translating it to BASIC (remember that all-purpose instruction code?).","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133965103473,"sku":"412HOWWEPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_afde952b-35eb-4cf7-9acd-c8fb982251b4.jpg?v=1739659152"},{"product_id":"stcov304popi","title":"Stocks \u0026 Commodities V. 30:13 (40-47): Pocket Pivots by Gil Morales \u0026 Chris Kacher","description":"Pocket Pivots by Gil Morales \u0026amp; Chris Kacher\u003cbr\u003e\u003cbr\u003ePotent Weaponry\u003cbr\u003e\u003cbr\u003eFind buyable pivot points before the stock breaks out and\nemerges into new high price ground. Heres how.\u003cbr\u003e\u003cbr\u003eIn todays fast-moving stock market, any technical breakout\nor powerful price move instantly attracts a herd of\ninvestors acting on the same information. Thus, certain\nprice\/volume action in the market and in individual stocks\nbecomes obvious quickly, serving to minimize its effectiveness\nwhen using standard interpretations such as new-high\nor consolidation breakouts.\u003cbr\u003e\u003cbr\u003eHow does a trader gain an edge?\u003cbr\u003e\u003cbr\u003eIn technical analysis literature, you will find many references\nand definitions to new-high pivot-point buy points as well as\ntrendline and moving average breakouts, but finding a definition\nof pocket pivot buy point signatures will not be so easy.\u003cbr\u003e\u003cbr\u003eThe concept of buying in the pocket did not exist until\nChris Kacher described it in 2005. Simply put, a pocket\npivot signature is an early base breakout indicator designed\nto find buyable pivot points within a stocks base shortly before\nthe stock breaks out of its chart base or consolidation and\nemerges into new-high price ground. It can also be employed\nas a continuation buy point where a stock is well extended\nfrom a recent base or consolidation after breaking out several\ndays or weeks earlier.\u003cbr\u003e\u003cbr\u003eInstitutional investors for example, hedge funds, mutual\nfunds, and pension funds do not begin buying any particular\nstock on a breakout to new highs. Most of the time, they prefer\nto buy stocks off of the price lows within a consolidation.\nIntuitively, this makes perfect sense, as institutions create the\nbottoms of chart bases, including the volume\/accumulation\nclues along the lows of a constructive base formation, and it\nis institutions that come in and add to their positions in the\nmidst of a well-defined and persistent uptrend, far away from\nsafe support levels.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133966807409,"sku":"V30C13_506MORA","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_1004e1ef-18d0-445c-8689-b643e6d95ede.jpg?v=1739659257"},{"product_id":"stcov301trhi","title":"Stocks \u0026 Commodities V. 30:6 (12-17): Trading High-Yield Bonds Using ETFs by Brooke Gardner","description":"Trading High-Yield Bonds Using ETFs by Brooke Gardner\u003cbr\u003e\u003cbr\u003eIn the high-risk arena of high-yield bonds, its a good idea to use a trading system that avoids large drawdowns. Try applying a simple moving average.\u003cbr\u003e\u003cbr\u003eIN 2008, when investors dumped assets of all kinds, high-yield bonds yielded about 20% interest. Since then, the subsequent rebound of about 75% has become so dramatic that many wonder if the high-yield bond market could be ready for another plunge.\u003cbr\u003e\u003cbr\u003eThe large drawdowns of high-yield bonds make for risky investing. Investors need to find a way to avoid these large down drafts, such as slightly improving the high-yield bonds total return by using an eight-month simple moving average (SMA).\u003cbr\u003e\u003cbr\u003eAccording to The Economist, high-yield bonds returned some 15% last year after a 58% rise in 2009. Price levels surpassed the highs of 2007 (see Figure 1). Since then, the returns have been partially fueled by income investors seeking higher yields in a low-return bond market. But too many people have evidently gone into the market at one time as investment banks have earned $5.8 billion in high-yield bond fees, more than they made from investment-grade bonds.\u003cbr\u003e\u003cbr\u003eTrend-following works well on high-yield bonds because they autocorrelate. Autocorrelation means that on an up day, the following day can be expected to be up also. Autocorrelation also works for down days, the upshot being that high-yield bonds form trends, and those tendencies can be identified with any moving average, especially one that avoids whipsaws.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133968314737,"sku":"320GARDPDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_710fbeee-b901-43c9-a36e-c2da9860117c.jpg?v=1739659374"},{"product_id":"stcov307bofo6","title":"Stocks \u0026 Commodities V. 30:7 (73): Books For Traders by Technical Analysis, Inc.","description":"Books For Traders by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003e4 Keys To Profitable Forex Trend Trading: Unlocking The Profit Potential Of Trending Currency Pairs\u003cbr\u003e\u003cbr\u003eBloomberg Visual Guide To Candlestick Charting\u003cbr\u003e\u003cbr\u003eThe Financial Spread Betting Handbook, 2nd Ed.\u003cbr\u003e\u003cbr\u003eIn Gold We Trust? The Future Of Money In An Age Of Uncertainty\u003cbr\u003e\u003cbr\u003eHigh Performance Trading: 35 Practical Strategies And Techniques To Enhance Your Trading Psychology And Performance\u003cbr\u003e\u003cbr\u003eThe Post-Reform Guide To Derivatives And Futures","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133970215281,"sku":"353BOOKPDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_6a6aae94-696c-4e39-9f0b-d1465226c44e.jpg?v=1739659510"}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/collections\/volume-30-2012-18.gif?v=1739677685","url":"https:\/\/shop.traders.com\/collections\/volume30\/issue-02.oembed?constraint=issue-05","provider":"Stocks \u0026 Commodities","version":"1.0","type":"link"}