ARTICLE SYNOPSIS ...Applying MIDAS To Daily And Weekly Charts by A. Coles and D. Hawkins In this second part of this series we go one step further by adding deeper insight into price action. SO far, we have explored what technical analyst Paul Levine called the scientific aspect of the market interpretation/data analysis system (Midas) -- that is, the quantitative laws that give rise to Midas and the curves of Levine's indicator, the topfinder/bottomfinder (TB-F). In this article, we will examine what Levine called the engineering aspect of Midas -- the practical trading rules on which the system is based. Thi...
BY: A. Coles and D. HawkinsSUBJECT: Indicators
ARTICLE SYNOPSIS ...At The Close by Thomas Bulkowski Here's a handy set of tips on what to look for in a stock to add to your portfolio. Traders and investors are always shopping for bargain stocks. When you log onto your favorite website and see that the price of a stock has dropped 50%, does the half-off sale mean you should buy? Perhaps. This article reviews shopping tips to help improve your chance of picking a winning stock. TIP #1: BUY IN A BEAR MARKET AND HOLD IN A BULL MARKET I computed the year-to-year price change of 565 stocks from 2000 to 2009. The table in Figure 1 shows the results. For example...
BY: Thomas BulkowskiSUBJECT: At The Close
ARTICLE SYNOPSIS ...BBForex.com by Jayanthi Gopalakrishnan BBFOREX.COM When trading currencies, keeping abreast of forex-related news is very important, which is why if you go to any forex site you expect to see a real-time news update. But have you ever seen a site where the forex-related news is merged with the price chart? To see this wonderful feature, all you have to do is visit www.BBForex.com. This was what piqued my interest and encouraged me to explore the other features available on this site. Given that the website is one of John Bollinger's collections of products, the impressive list of features s...
BY: Jayanthi GopalakrishnanSUBJECT: Websites For Traders
BY: Technical Analysis, Inc.SUBJECT: Books For Traders
ARTICLE SYNOPSIS ...Combining DMI and Moving Average For A EUR/USD Trading System by Rombout Keerstens Here is a simple trend-following system where profits are realized in a relatively small number of lucrative trades. IN a world in which we are inundated with information, it is virtually impossible for investors to select the data they need. A trading system based on technical analysis assumes that all available data has been processed in the price history. The system makes its decisions based on this analysis. Untold volumes of information have been written on technical analysis and system trading, which me...
BY: Rombout KeerstensSUBJECT: Trading Systems
ARTICLE SYNOPSIS ...Explore Your Options by Tom Gentile DEBIT AND CREDIT What's the difference between a debit spread and a credit spread? When investors buy or sell options, the transaction is either a debit or a credit. Of course, since an option contract is an agreement between two parties, each trade is for a debit to one party, but a credit to the other. Nevertheless, if I buy October 800 puts on the Standard & Poor's 500 (Spx) for $3.50 per contract, I pay $3.50 per contract and that amount is a debit to my brokerage account. If Spx falls below 800 and I then sell the put for $10, I receive a credit in ...
BY: Tom GentileSUBJECT: Explore Your Options
ARTICLE SYNOPSIS ...FXEducator's Ed Ponsi by J. Gopalakrishnan and B. R. Faber As an experienced professional trader, Ed Ponsi, the president of FXEducator.com, has advised hedge funds, institutional traders, and individuals of all levels of skill and experience. He has made numerous appearances on Cnbc, Cnn, Bbc, Fox, and ForexTV, and his dynamic and humorous style sets him apart from the suit & tie crowd. In addition, Ponsi is the author of Forex Patterns And Probabilities, a top-selling book on currency trading. Stocks & Commodities Editor Jayanthi Gopalakrishnan and Staff Writer Bruce Faber interviewed Pons...
BY: J. Gopalakrishnan and B. FaberSUBJECT: Interview
ARTICLE SYNOPSIS ...Futures For You by Carley Garner STOCK INDEX FUTURES VS EQUITY INDEX PRODUCTS Are there advantages to trading stock index futures over equity index products such as Spdrs or individual stocks? There are many more participants in the equity markets than there are in futures, and people tend to gravitate to what they are most familiar with. However, convenience and familiarity aren't necessarily optimal. The futures markets have been labeled as dangerous due to the ease of gaining leverage and the corresponding horror stories of traders going broke, but in reality, the same risks are evident...
BY: Carley GarnerSUBJECT: Futures For You
ARTICLE SYNOPSIS ...Head & Shoulders by Alexander Sabodin Here's a look at a familiar reversal pattern, the head & shoulders pattern. IN this installment of the price model series, we will look at a well-known trend reversal model, the head & shoulders pattern. In part 1 last issue, I explained that for a price model to form, a previous trend needs to exist. The condition for the formation of a head & shoulders pattern is an ascending movement on a price chart, when every rise and fall is higher than the previous one. In Figure 1, you can see that at a certain stage in its development, the trend has accelerated...
BY: Alexander SabodinSUBJECT: Chart Patterns
ARTICLE SYNOPSIS ...Letters To S&C by Technical Analysis, Inc. GOLDEN RATIO Editor, In his article in the April 2009 S&C on the Fibonacci sequence and its "golden ratio" ("Fibonacci Tools"), Alexander Sabodin points out that the golden ratio is actually an irrational number so must be approximated. Your readers may be interested to know that its exact value can be written as (1+√5)/2. This allows one to find the ratio to any accuracy using a suitable algorithm for square root. Rick Martinelli I would consider as correct both this expression and the one in Alexander Sabodin's article. The value of (1+...
BY: Technical Analysis, Inc.SUBJECT: Letters To S&C
BY: Jayanthi GopalakrishnanSUBJECT: Opening Position
ARTICLE SYNOPSIS ...Pump Up The Volume by Todd Krueger Here's how you can use Wyckoff volume analysis to trade the forex markets. IT is a nearly universal belief among forex traders that volume analysis techniques cannot be utilized in their market analysis. This belief exists because spot forex does not trade on a centralized exchange and so no actual traded volume figures are available for traders to analyze. Volume analysis in the forex markets is not only possible to perform, but it in fact provides a great edge that enables the trader to properly read the chart to determine where supply/demand imbalances ...
BY: Todd KruegerSUBJECT: Charting
ARTICLE SYNOPSIS ...Q&A by Don Bright NEWBIE QUESTIONS I started trading recently just to get my feet wet, but there are a few things that confuse me: 1. How do you know the total number of shares available for a particular stock? What determines the number of shares a company is divided into? 2. Where can I find balance sheets for specific companies, and on this sheet, how do I locate "growth stocks"? 3. What does "unch" mean? -- jasonrest...
BY: Don BrightSUBJECT: Q&A
BY: Technical Analysis, Inc.SUBJECT: Traders' Resource
ARTICLE SYNOPSIS ...Traders' Tips by Technical Analysis, Inc. This month's Traders' Tips are mainly based on Rombout Kerstens' article in this issue, "Combining Dmi And Moving Average For A Eur/Usd Trading System." Others are on a topic of the contributors' choosing. EasyLanguage code to implement the strategy is provided in Kerstens' article elsewhere in this issue, and is also available at the end of this document. Additional code is presented here as contributed by various software developers. Readers will find our Traders' Tips section in its entirety at the Stocks & Commodities website at www.Traders.com...
BY: Technical Analysis, Inc.SUBJECT: Traders' Tips
ARTICLE SYNOPSIS ...Trendline Tips And Tricks by Sylvain Vervoort How do you capture those medium- to longer-term moves when trying to enter and exit trades quickly? Daydreaming about trading? Get in a trade early and close to the low point; stay in as long as needed and get out fast at the top! The problem, of course, seems to be the middle part. Getting in and out quickly at turning points is not that difficult. But how do you stay in a trade to capture those medium- to longer-term moves while acting quickly to enter or exit at the same time? Let me show you some tips and tricks using trendlines that can he...
BY: Sylvain VervoortSUBJECT: Charting
ARTICLE SYNOPSIS ...Using Binary Options In Forex by Dan Cook Managing risk and proper stop placement may be the most difficult aspects of currency trading to master. Here's how you can use binary options to take advantage of the opportunities that volatility creates while controlling risk. Even during times of normal market conditions with fundamental announcements, surprise decisions from governments or central banks, and the overall volatility of all markets over the last year, it can be difficult to accurately gauge risk on any trade. Take, for example, the market shock of the March 2009 Federal Open Ma...
BY: Dan CookSUBJECT: Charting
BY: John DevcicSUBJECT: Novice Traders' Notebook
BY: Kenny GillilandSUBJECT: The Chartist