ARTICLE SYNOPSIS ...At The Close by Brian Twomey This indicator can be used with great reliability to catch moves in the currency markets. Doug Schaff, president and founder of FX Strategy, created the Schaff trend cycle indicator in the 1990s. It is the product of more than 20 years of experience in technical analysis, trading the markets with an expertise in currencies and a masterful understanding of technical analysis and price functions in the markets. Who better to give this generation of traders an interesting, comprehensive, accurate, and brilliant indicator? Schaff divulged the details of his indicato...
BY: Brian TwomeySUBJECT: At The Close
ARTICLE SYNOPSIS ...Bear Market Survival Kit by Anthony Trongone, PhD, CFP, CTA Any system can produce stellar results when it suggests taking a position in the same direction of a trending market. But what do you do when the market quickly changes direction? Few if any trading systems work across all economic environments. As you know, any system can produce superlative results when it suggests taking a position in the same direction of a trending market. However, the performance of these same systems is rendered ineffective as soon as the market changes direction. This article shows how you can capture profi...
BY: Anthony Trongone, Ph.D., CFP, CTASUBJECT: Trading Systems
ARTICLE SYNOPSIS ...Books For Traders by Technical Analysis, Inc. ? Buy And Hold Is Dead: How To Make Money And Control Risk In Any Market ? ChartPatterns ? The Economic Storm: Understand It, Survive It, Make Money When It Passes ? Financial Derivatives: Pricing And Risk Management ? Forex Analysis And Trading: Effective Top-Down Strategies Combining Fundamental, Position, And Technical Analyses ? The Quants: How A New Breed Of Math Whizzes Conquered Wall Street And Nearly Destroyed It...
BY: Technical Analysis, Inc.SUBJECT: Books For Traders
ARTICLE SYNOPSIS ...Explore Your Options by Tom Gentile RSVP FOR A CHEAPER STRADDLE? I like the idea of positioning with long straddles, but when it comes to pulling the trigger, I'm having problems executing. More often than not, the spreads that look the most attractive overwhelm me with the actual cost to initiate the strategy and/or the associated time decay. Can you offer any insight that might help me get over this barrier to entry? That's a very good question to a situation many investors battle with in developing a trading plan. Your central dilemma seems to involve time and its impact on both shorter-...
BY: Tom GentileSUBJECT: Explore Your Options
ARTICLE SYNOPSIS ...Futures For You by Carley Garner FUTURES VS. FOREX What are the advantages of trading currency futures as opposed to forex? The popularity of foreign exchange (spot currency) trading has exploded, thanks to low margins, seemingly low transaction costs, and flashy trading platforms. However, there are a few things that you should consider before choosing forex over currency futures like those traded on the Chicago Mercantile Exchange (Cme): ? Government regulation: The National Futures Association (Nfa), the Commodity Futures Trading Commission (Cftc), and the futures exchanges themselves a...
BY: Carley GarnerSUBJECT: Futures For You
ARTICLE SYNOPSIS ...Juggling Dynamite With Danielle Park by J. Gopalakrishnan and B. Faber With more than 18 years of professional consulting experience, Danielle Park is an attorney as well as a Chartered Financial Analyst (Cfa) and finance author. Park is a regular guest on North American news media and a popular keynote speaker about investment markets and money. She is the author of the best-selling book Juggling Dynamite and a popular financial blog, www.jugglingdynamite.com. She is a member of the internationally recognized Cfa Institute, the Toronto Society of Financial Analysts (Tsfa), and she continues ...
BY: J. Gopalakrishnan and B. FaberSUBJECT: Interview
ARTICLE SYNOPSIS ...Kondratieff Wave Comeback by Koos van der Merwe Will 2010 mark the end of the current recession? Use the Kondratieff wave to find out. IN my November 2008 Stocks & Commodities article, I concluded that "the US and world economies are headed for recessionary times," with relief only after four years looking more and more likely with each passing week. Elliottician Robert Prechter, known for having predicted the stock market crash of 1987, has said in recent interviews that the sharp rebound in equities from 12-year lows hit in March 2009 has been only a near-time rally within a longer-term b...
BY: Koos van der MerweSUBJECT: Cycles
ARTICLE SYNOPSIS ...Letters To S&C by Technical Analysis, Inc. SOFTWARE ISSUE Editor, Can you tell me when your special issue comes out with the analyses on technical analysis software? Louis Witte Netherlands Our 2010 Bonus Issue, which includes the 2010 Readers' Choice Awards for products and services voted most useful by our readers, was mailed to all current subscribers in late February. If you are not currently subscribing, you can contact our subscription department at Circ@Traders.com for a subscription or trial subscription. The issue is also available on some newsstands domestically in the US. The ...
BY: Technical Analysis, Inc.SUBJECT: Letters To S&C
ARTICLE SYNOPSIS ...Modified Volume-Price Trend Indicator by David G. Hawkins Looking for an edge? Use this indicator to detect what the insiders are doing while they are doing it. Using only price and volume data, technicians try to discern what the "smart money" is doing in a stock. Several technical analysis indicators are designed for this. Accumulation/distribution (AD) is one such, and in turn, AD is split into two different indicators, interday and intraday. Interday compares the closes and opens of different days, while intraday compares the close of each day to the open of the same day. In this articl...
BY: David G. HawkinsSUBJECT: Indicators
BY: Technical Analysis, Inc.SUBJECT: Opening Position
ARTICLE SYNOPSIS ...Q&A by Don Bright SUBPENNIES AND HIGH-FREQUENCY TRADING Don, I read your recent column about subpennies and high-frequency trading (S&C, March 2010). How have you and your traders adapted your order routing in the last few months? Good question. For the longest time we would advise our traders to "park" on an electronic communications network (Ecn) to collect rebates when they were waiting to be hit on a bid or offer. We would advise them to hit bids or take out offers on the primary exchange (Nyse, for example), since it was cheaper overall. Currently, we feel that it makes sense to do the...
BY: Don BrightSUBJECT: Q&A
ARTICLE SYNOPSIS ...RSI Trends by Cory Mitchell What does the behavior of the relative strength index within a trend tell you about the strength of the trend? While one common method uses divergence between the relative strength index (Rsi) and price, we can go beyond that and find out if a trend is likely to continue. We can do so by looking at certain Rsi levels contained in a trend; this provides us with valuable information for making trades within the current trend. Watching for breakouts of these Rsi levels can also provide us with confirmation for what is happening with price. SUPPORT AND RESISTANCE L...
BY: Cory Mitchell, CMTSUBJECT: Indicators
ARTICLE SYNOPSIS ...Signal Processing Basics by Glenn Barlis This is the first of a series of articles that examine stock price analysis using the mathematical methods of signal processing. These concepts will enable you to better understand popular indicators and incorporate them into your trading strategy. The mathematical methods of communication and control theory are the basis for many common technical trading methods and indicators. This series of articles will focus on the mathematical basics needed to understand indicators and will not discuss trading strategies except to illustrate the use or misuse of...
BY: Glenn A. BarlisSUBJECT: Trading Techniques
BY: Technical Analysis, Inc.SUBJECT: Traders' Resource
BY: Technical Analysis, Inc.SUBJECT: Traders' Resource
ARTICLE SYNOPSIS ...Traders' Tips by Technical Analysis, Inc. This month's Traders' Tips are based on David Hawkins' article in this issue, "Modified Volume-Price Trend Indicator." Code for MetaStock is already provided in the article's sidebar to help readers implement the indicator. Code for other programs is presented here as contributed by various software developers. In addition to the code for technical analysis programs, this month, readers will also find a formula to implement Hawkins' indicator in Microsoft Excel spreadsheet application. Readers will find these and more Traders' Tips at the Stocks & ...
BY: Technical Analysis, Inc.SUBJECT: Traders' Tips
ARTICLE SYNOPSIS ...Trading Automated Spot Forex Systems by Joseph James Gelet Want to trade spot forex? With proper risk controls, this method can be used like options to take a position in the market. Options offer traders a unique way to take a position in the market not offered by traditional markets. Options have certain features such as static cost of the option, which quantitative analysts and portfolio managers appreciate greatly. Options are considered sophisticated, and in many ways they are. Although it is easy for anyone to open an option account and trade, strategies involving options can quickly ...
BY: Joseph James Gelet
BY: John DevcicSUBJECT: Novice Traders' Notebook