STOCKS & COMMODITIES magazine. The Traders' Magazine

Technical Analysis of STOCKS & COMMODITIES
The Traders’ Magazine since 1982
37,000 Page Traders’ Archive for $89.99


Article Archive For Stella Osoba, CMT

  • A Quick Read of Fabrinet

    ARTICLE SYNOPSIS ...The chart of Fabrinet (FN) has not been an easy read. After reaching a high of 46.50 on October 5, 2016, it began to move lower, making a series of lower highs and lower lows, but a breakout to a new high of 47.50 on February 13, 2017, causes us to reconsider this chart and ask, is now a good time to be long FN?...

  • Gail Dudack: The Technician's Technician

    ARTICLE SYNOPSIS ...She started out on Wall Street in the days of the ticker tape and over the years became a go-to market authority and a respected technical analyst. Here, she shares her views on her career as a technician and strategist, the historical developments she's witnessed that changed the course of Wall Street, and her opinions on the changing global financial landscape...

  • Trading Signals and the Commodity Channel Index

    ARTICLE SYNOPSIS ...Donald Lambert developed the Commodities Channel Index, which as the name implies was originally intended to be used with commodities trading. However, this indicator has been successfully applied to other markets, including stocks....

  • Using Dawn's Early Light To Spot Early Trend Reversals

    ARTICLE SYNOPSIS ...Dawn's early light is the Sanskrit name that Tuschar Chande gave to an indicator he developed in 1995. The Aroon indicator consists of two separate lines; the Aroon-Up and the Aroon-Down. We will use the chart of Intuit, Inc. (INTU) to study how this useful indicator can help us spot trend reversals as they are beginning....

  • Bottom Fishing

    ARTICLE SYNOPSIS ...It is tempting to look at the price of a stock and think that if it is cheap, then it is a bargain. This is a trap novice investors often fall into because it is easy to confuse price with value....

  • Working with the Coppock Curve

    ARTICLE SYNOPSIS ...As traders, we want to find signals for fast, profitable entries and exits, but sometimes it pays to take your time to enter a trade correctly, even when doing so means being subjected to a series of whiplash trades. The eventual pay off might make it worth the pain....

  • Gilead Sciences and the Ulcer Index

    ARTICLE SYNOPSIS ...One of the worst performing sectors this past year has been the Health Care sector, and of its sub-sectors, Biotechnology was one of the poorest performers. Gilead Sciences (GILD), a component of that sub-sector lost about 21% over the past year, making it one of the weakest performers year-to-date in its group. A quick glance at its chart shows it still in a steady down trend. But we all know that nothing lasts forever and S&P 500 companies likely will not fall to zero. So, are there any early shoots of positivity which suggest we might be wise to start giving GILD a closer look for a lon...

  • Building Self-Confidence

    ARTICLE SYNOPSIS ...There are certain traits a trader needs to succeed, and self-confidence is one of them. But how do you develop it so that it benefits your trading skills? Let's find out...

  • Cultivating Patience

    ARTICLE SYNOPSIS ...What is patience and why is it essential for success in the world of trading? Let's explore...

  • Xylem, Inc. (XYL)

    ARTICLE SYNOPSIS ...The stock of XYL, the global water infrastructure company which was debuted on the New York Stock Exchange in 2011, has had a good few months. It reached a low of 31.54 on January 21, 2016 and has been in an uptrend since. It is currently making new all time highs. What does the chart say about the performance of this rather new addition to the S&P 500 index?...

  • Sometimes It's Best To Stand Aside And Wait

    ARTICLE SYNOPSIS ...With Whole Foods Market (WFM) set to announce quarterly earnings on Wednesday May 4th, 2016, what does the chart say about the performance of its stock?...

  • With Shares Of Twitter Nearing Support Is It Time To Give It A Second Look?

    ARTICLE SYNOPSIS ...Shares of Twitter (TWTR) closed on May 2, 2016 near support after several days of heavy selling. Is it now time to give the shares a second look for a possible long play?...

  • Richard Demille Wyckoff Part 2

    ARTICLE SYNOPSIS ...There are no shortcuts to becoming a successful trader. In this second of a five-part series about Richard D. Wyckoff, we look at how persistence and determination played a role in his trading career...

  • The Disposition Effect

    ARTICLE SYNOPSIS ...The psychology behind our tendency to sell winners and keep losers....

  • Is AutoZone Still a Strong Long Play?

    ARTICLE SYNOPSIS ...Will a break of resistance negate AutoZone's long term trend line break?...

  • What Does Regeneration's Bear Flag Mean?

    ARTICLE SYNOPSIS ...A bear flag is often a bearish signal. Regeneration Pharmeceuticals, Inc. is just completing one - is it too early to tell what this means for the stock?...

  • Failed Divergence

    ARTICLE SYNOPSIS ...Negatives divergences can be useful signals to alert us to possible reversals, but it is wise to remember that confirmation to enter trades must always come from price because no signal is fool proof. All trading signals can fail....

  • Ben's Fake-out Or Why You Must Trust the Chart

    ARTICLE SYNOPSIS ...Sometimes when you look at a chart, you see what has happened recently and this informs your decision about what should happen next. This decision then determines how you subsequently trade and can result in costly mistakes, especially in the case of the fake-out. For what should happen next must never be a basis for your trading decisions. The only analysis that really matters is the one that tells you what is currently happening....

  • The Bird That Shrunk After Swallowing Its Rival

    ARTICLE SYNOPSIS ...May 18th, 2016 makes it a year since Ascena (ASNA) announced its acquisition of ANN stores for a mixture of cash; financed by debt and stock. The deal created one of the largest specialty retailers in North America with a total of over 4,900 stores. In the year since the deal closed ASNA shareholders have not seen any upside value....

  • A Quick Look at CF Industries Holdings, Inc.

    ARTICLE SYNOPSIS ...A look at CF's chart will show that it topped on June 17, 2015, reaching a high of 68.10 in a buying climax marked by unusually high volume. This marked the start of its sustained and protracted downtrend. By January 20, 2016, with the stock trading at 25.57, it was down 63% from its high....

  • Richard Demille Wyckoff Part 3

    ARTICLE SYNOPSIS ...The most basic and universal laws governing goods and services in a free market are the law of supply, law of demand, and the intersection of these laws. These laws control stock prices. In this third of a five-part series about Richard D. Wyckoff, we look at how he analyzed market action...

  • Anticipating Macro Events

    ARTICLE SYNOPSIS ...As part of its 13F filings the quarter ending 3/31/2016, Barrick Gold Corp. (ABX) announced that Soros Fund Management LLC had built up a new and substantial position of some 19,419,309 shares in its company. With the results of the UK referendum currently roiling world markets, this move by the billionaire investor seems almost as stunning as his trade in 1992 in which it was claimed he made a billion dollars by "breaking" the Bank of England. On Friday, June 24, 2016, while the S&P 500 was down 75.91, or 3.59%, ABX was up 1.12, or 5.79%....

  • Richard Demille Wyckoff Part 4

    ARTICLE SYNOPSIS ...Whether you're an investor or trader, you need to know how to intelligently evaluate price action. In this fourth of a five-part series about Richard D. Wyckoff, we look at how he evaluated price action using charts...

  • Failing Successfully

    ARTICLE SYNOPSIS ...We're groomed to think of losses as a sign of failure, which is why trading is difficult. But experiencing losses is part of a trader's life and is something you have to accept. Here's how to approach the idea in a healthy way...

  • Richard Demille Wyckoff Part 5

    ARTICLE SYNOPSIS ...In this final part of our series about Richard D. Wyckoff, we look at his latter years - the changes he faced and how that affected his thoughts on investing...

  • The Endowment Effect

    ARTICLE SYNOPSIS ...The endowment effect is a bias which accounts for why traders and investors will sometimes allow themselves to get married to a position....

  • Richard Demille Wyckoff Part 1

    ARTICLE SYNOPSIS ...This article is the first of a five-part series about Richard D. Wyckoff and his contributions to the discipline that is technical analysis...

  • Protecting Profits With Strangles

    ARTICLE SYNOPSIS ...Options are often thought of as being risky and they often are, especially when you do not have a clear understanding of how they work. There are times, however, when a thorough understanding of an option strategy can help to minimize downside risk while allowing you to participate in potential upside gains....

  • Gambling, Speculating, & Investing

    ARTICLE SYNOPSIS ...What do these terms mean as applied to the participant in the financial markets? Let's have a look to try to come up with some clear definitions....

  • Decision Fatigue

    ARTICLE SYNOPSIS ...Yesterday, you made a really bad trade. After you have closed out the position at a loss, you study the chart and ask yourself why you entered the trade in the first place. The more you study the chart, the more confounded you become. Clear as the light of day is evidence that the stock is acting badly. You see price had been making lower lows and lower highs for some time, there was no break of the down trend line to the upside. So you ask yourself why did you take a long trade? All the signals were screaming that this would be a bad long trade. Yet you took it. You can't understand why ...

  • Anatomy Of A Breakdown (Part 1)

    ARTICLE SYNOPSIS ...To successfully identify a break down as it begins to happen, it is essential to learn to look for signs of technical weakness on the chart....

  • The Availability Heuristic

    ARTICLE SYNOPSIS ...When we want to judge the likelihood of something occurring, it is often the case that we will attempt to recall instances of its occurrence from memory. If retrieval is easy and many instances can be readily retrieved then we are more likely to judge the thing as likely to occur. This is the availability heuristic....

  • Representativeness Heuristic

    ARTICLE SYNOPSIS ...Representativeness heuristic is one of the many mental shortcuts that we often use to distill information and arrive at answers when faced with conditions of uncertainty. We judge something as more likely to happen because it is representative of its class. But that something is representative of a particular class, does not make it more likely to happen....

  • Bollinger Bands And Volatility Signals

    ARTICLE SYNOPSIS ...Traders use bands around price to help them determine when the price has strayed too far away from their average, either up or down. The construction of trading bands is relatively simple. Bands are placed above and below an average often using a fixed percentage. These bands can also be called envelopes. Bollinger Bands are one of the more popular types of trading bands....

  • Using Protective Stops To Help With Entries

    ARTICLE SYNOPSIS ...Sometimes people will say that the reason that they will no longer use protective sell stops is because when they have used them in the past, their stops will invariably get touched, taking them out of the trade, just before the stock reverses. It is likely that this happens, not because the market somehow knows the price at which you set your stop and then deliberately aims to take you out of the trade, but the more likely reason, is that your stop might not have been set correctly in the first place....

  • When Setups Fail

    ARTICLE SYNOPSIS ...So you have done everything right. You have followed your rules, waited for the signal, entered the trade on confirmation of that signal and what happens? The setup fails. What do you do?...

  • Fear of Regret

    ARTICLE SYNOPSIS ...The fear of regret is a cognitive bias that involves both judgment and emotion. We feel pain for having made a decision that results in a loss. Sometimes, the anticipation of that pain is so strong that it causes us to act in ways which might otherwise seem irrational....

  • Anatomy Of A Breakdown (Part 2)

    ARTICLE SYNOPSIS ...There are many tools that the technician can use to help identify technical weakness on a price chart. Indicators used correctly can provide invaluable information....

  • Sunk Cost Fallacy

    ARTICLE SYNOPSIS ...The sunk cost fallacy is a behavior that is potentially harmful to your investment success. Is there any way to overcome it?...

  • Loss Aversion

    ARTICLE SYNOPSIS ...By nature, we are wired to act in certain ways when confronted with specific situations. Being aware of these types of behavioral patterns is a first step toward conquering them. Here's a look at how we typically react to situations that arise in the financial markets....

  • How Anchoring Can Hold Us Back

    ARTICLE SYNOPSIS ...What is anchoring and why do traders need to understand it?...

  • Trading The Moving Average Convergence Divergence

    ARTICLE SYNOPSIS ...The moving average convergence divergence (MACD) is a popular indicator found on just about all software trading packages. Even though it is widely used, sometimes it is useful to return to basics, to ensure that we master the core principles to effectively use this popular technical tool in our trading....

  • Recognizing And Avoiding Confirmatory Bias

    ARTICLE SYNOPSIS ...Cognitive biases are thinking errors that affect how we process information and make decisions. We are all affected by cognitive biases in our everyday decision making but what makes them so insidious is that often we are not aware that we are acting under the influence of a cognitive bias when we form opinions or make decisions. When it comes to trading, our results rely on our ability to recognize and limit the influence that these errors of judgment can cause. Here you will find a discussion of a cognitive bias known as confirmation bias and be presented with tools to recognize it and avoid...

  • The Fear Index Or The VIX

    ARTICLE SYNOPSIS ...The VIX is a volatility index registered by the Chicago Board Options Exchange (CBOE) which has come to be known in the popular press as the fear index or the fear gauge....

  • Trading With The ADX

    ARTICLE SYNOPSIS ...Markets do not always trend. Sometimes they are range bound and as a result the tools which will be most suitable for analysis in these types of market differ from those that are useful in a trending market. A popular tool that is helpful in determining whether we are in a trending or range bound market is the average directional movement index (ADX)....

  • Information Bias, Or Why More Is Not Necessarily Better

    ARTICLE SYNOPSIS ...Information bias is a cognitive bias which leads us to believe that more information is better or complexity is preferable to simplicity. Sometimes we collect information which is ultimately irrelevant to the decision we are trying to make but we feel more confident in making the decision because of the extra, irrelevant information....

  • Overcoming Overconfidence Bias

    ARTICLE SYNOPSIS ...Overconfidence is a cognitive bias which results in our overestimating our abilities to perform a skill or task. In so doing, we see ourselves as better than average and we rate our abilities higher than others would rate us. In financial markets, this bias most often manifests itself in traders as aggressive trading or as an increase in trading volume. It is important, therefore, that we recognize this bias and find ways to effectively minimize its effects on our trading....






S&C Subscription/Renewal




Request Information From Our Sponsors 

DEPARTMENTS: Advertising | Editorial | Circulation | Contact Us | BY PHONE: (206) 938-0570

PTSK — The Professional Traders' Starter Kit
Home — S&C Magazine | Working Money Magazine | Traders.com Advantage | Online Store | Traders’ Resource
Add a Product to Traders’ Resource | Message Boards | Subscribe/Renew | Free Trial Issue | Article Code | Search

Copyright © 1982–2017 Technical Analysis, Inc. All rights reserved. Read our disclaimer & privacy statement.