ARTICLE SYNOPSIS ...Adam & Adam Double Bottom by Thomas Bulkowski If you see this type of double bottom, it may mean you need to make a quick exit. discussed the Eve & Eve double bottom chart pattern in the November 2002 STOCKS & COMMODITIES. If the Eve & Eve double bottom represents the classic double bottom, then the Adam & Adam must be the new kid on the block. It lacks everything the Eve & Eve double bottom has going for it....
BY: Thomas BulkowskiSUBJECT: Charting
ARTICLE SYNOPSIS ...Books For Traders by Technical Analysis, Inc. Various books on trading....
BY: Technical Analysis, Inc.SUBJECT: Books For Traders
ARTICLE SYNOPSIS ...Developing Hot Zones by Massimiliano Scorpio Can you forecast a bar's close from its open? This technique is helpful in trading recently introduced tradables that don't have historical charts yet, such as single-stock futures. In the December 2001 STOCKS & COMMODITIES, I demonstrated a simple method that uses a statistical indicator to help identify profitable patterns. Here, I have taken the method one step further: I've analyzed the behavior of each bar and the relationship between the open and close. If the market is showing a specific pattern, is there any way to forecast the close from ...
BY: Massimiliano ScorpioSUBJECT: System Design
ARTICLE SYNOPSIS ...Explore Your Options by Tom Gentile DOUBLING DOWN ON OPTIONS Does doubling down on a losing options position by purchasing more and thus lowering the breakeven point work the same as it does with stocks? Thank you. -- Fiorenzo Primavori, Genoa, Italy Yes and no. As a way of dollar cost averaging, yes, this does work. If you decide to buy IBM 70 calls for 7 points and then the stock breaks down, you could purchase an equal number of call options for a lower premium, thus bringing your breakeven down closer to today's price. ...continuded...
BY: Tom GentileSUBJECT: Explore Your Options
ARTICLE SYNOPSIS ...Interview: Edgar Peters Talks About Chaos Theory by Jayanthi Gopalakrishnan His work Chaos And Order In The Capital Markets ignited the imagination of traders and investors everywhere, and the way we viewed the markets changed. As PanAgora's chief investment officer and co-chair of its investment committee, Edgar Peters is responsible for ensuring the integrity of the firm's investment strategies and product array. His insights into market dynamics and behavioral finance have not only added value to client portfolios but also stimulated the development of innovative investment technologies. A...
BY: Jayanthi GopalakrishnanSUBJECT: Interview
ARTICLE SYNOPSIS ...Letters To S&C by Technical Analysis, Inc. OUR 20TH ANNIVERSARY Editor, The October 2002 issue of STOCKS & COMMODITIES finally reached me here in New Zealand. Congratulations on the 20th year of publishing S&C. I remember meeting STOCKS & COMMODITIES publisher Jack Hutson at a seminar in Toronto, Canada. He was telling me about this exciting idea he had about publishing a new magazine that would feature new ideas in technical analysis of all markets. He asked me if I would write some articles for the magazine. I told him I liked his idea and would be glad to help. That was 20 years ago. Ja...
BY: Technical Analysis, Inc.SUBJECT: Letters To S&C
BY: Jayanthi GopalakrishnanSUBJECT: Opening Position
ARTICLE SYNOPSIS ...Q&A by Don Bright READING THE TAPE I've just finished reading some of your articles in STOCKS & COMMODITIES. Once again you illuminate topics that were unknown to me. I'm a novice trader in a proprietary program down on Wall Street, and I have been running into difficulty with this market (just as many others have). I have been trying different methods to see what might work for me. Recently, I have been employing a method that watches for size stepping up/down in stocks with volume on average between 80,000 and one million. I like this technique because I can clearly define my edge and beli...
BY: Don BrightSUBJECT: Q&A
ARTICLE SYNOPSIS ...Single-Stock Futures by Jayanthi Gopalakrishnan How can you take advantage of them? To find out, we asked OneChicago and Nasdaq LIFFE, the two exchanges expected to launch this hot new product, a few questions. Here's what they had to say. Why has it taken so long to launch single-stock futures (SSFs) in the US? OneChicago: The products were banned about 20 years ago when the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) could not agree on who had jurisdiction over them. ...continuded...
BY: Jayanthi GopalakrishnanSUBJECT: Frequently Asked Questions
ARTICLE SYNOPSIS ...Testing Signal Efficacy by Jeff Parent Here's how you can evaluate how effective your trading system is. ot unlike new pharmaceutical drugs, buy and sell signals must be put through rigorous tests to determine their usefulness. Only when signals prove profitable repeatedly should the indicator being tested be incorporated into a trading system. But how can you quantify how effective your signal is? In this article I will suggest a standardized process to achieve this goal....
BY: Jeff ParentSUBJECT: New Techniques
ARTICLE SYNOPSIS ...The Stock Market, The Calendar, And You by Jay Kaeppel What's more important -- what you buy or when you buy it? Seasonality in the market has long been a welldocumented phenomenon. A detailed look at the stock market will lead you to conclude that there are certain times when it is more advantageous to be in the stock market than other times. Seasonality offers a viable approach to investing and trading, and in this article I want to focus on this aspect. I will illustrate how combining four basic seasonal tendencies can maximize returns. One advantage of employing a seasonal system is that...
BY: Jay KaeppelSUBJECT: Cycles
BY: Technical Analysis, Inc.SUBJECT: Traders' Resource
ARTICLE SYNOPSIS ...Traders' Tips by Technical Analysis, Inc. TRADESTATION: DEVELOPING HOT ZONES Massimiliano Scorpio's article "Developing Hot Zones" in this issue addresses a technique for producing statistical reports on the predictive nature of the key reversal pattern. As the author makes clear, this particular pattern is only one of many possible patterns for study. The author's goal is to show the reader a process for building statistical reports on any pattern that might be of interest. These statistical reports are the product of the MSOpenClosePct indicator. This indicator is the focus of the article...
BY: Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Websites For Traders: BearMarketCentral.com by David Penn BEARMARKETCENTRAL.COM For all the carnage wrought upon the financial markets after three years of equity losses, stock market bears remain a provincial lot. Sure, every now and then a cautious or negative remark from a well-known bear will appear in the mainstream press. But such opportunities for bears to make their case to the public at large remain relatively rare -- and often take place only in the wake of a terribly bad week in the market ("Here to join us is noted bear market guru Mr. Grizzly, who seems to be annoyingly satisfied...
BY: David PennSUBJECT: Websites For Traders
BY: Dennis D. PetersonSUBJECT: The Chartist
BY: David PennSUBJECT: Novice Traders' Notebook