ARTICLE SYNOPSIS ...Gann Swings And Intraday Trading Swing trading is one of the oldest technical methods in technical trading literature. Even though it's little used these days, this classic technique is hardly outmoded and can be useful in trading today's volatile stock market. To some, today's overheated stock market must seem like the land o' opportunity: just step right up and jump on board the train to make a profit. Unfortunately, some days the market looks more like a train wreck than a weekend trip to your favorite resort. In fact, the volatility in some stocks would make a seasoned soy-bean trader th...
BY: Thom HartleSUBJECT: Basic Technique
ARTICLE SYNOPSIS ...Getting Started With Options Rather than shying away from the complexity of options, stick with some simple basics in exploiting them. You can start paper-trading options despite their daunting reputation for complexity. If you succeed on paper, you'll have taken the first step to extracting profits from the real market. It's true that there are many kinds of options, and options terminology is like a foreign language, but professional traders use options for a good reason. We'll tell you why. But first, yes, you can lose 100% of your investment. Of course, it is theoretically possible to do...
BY: Joe Demkovich and Eugene TheriotSUBJECT: Novice Traders' Notebook
ARTICLE SYNOPSIS ...How The Pros Use Average Directional Index Here's how technicians Charles LeBeau, Paul Rabbitt, and Linda Bradford Raschke integrate the average directional index into their trading plans. How would you like to look over the shoulders of professional traders using one of your favorite indicators? Here's your chance. I spoke with three well-known traders who put their own money at risk daily. I asked them to show me what they do with the average directional index (ADX), one of the longest-lived and most popular trend indicators around. I asked Charles LeBeau, Paul Rabbitt, and Linda Raschke h...
BY: Barbara Star, Ph.D.SUBJECT: Classic Technique
ARTICLE SYNOPSIS ...On The Opening Bell - David Vomund Of AIQ David Vomund of AIQ Systems wears a few hats, chief of which is his positions as chief analyst of artificial intelligence?based charting software developer AIQ Systems and the editor of AIQ's newsletter, The Opening Bell. Not only that, Vomund is also president of Legarza Vomund Investment Management, a registered investment advisory firm where he manages aggressive blue-chip portfolios. Under this money management program, Vomund utilizes his growth investing strategy while concentrating on a limited number of well-known companies; for the first half...
BY: John SweeneySUBJECT: Interview
ARTICLE SYNOPSIS ...?TRADESTATION/SUPERCHARTS This month in Traders' Tips we look at the MACD of the relative strength (MACD RS) between two instruments. This indicator is fairly easy to recreate in TradeStation's PowerEditor using the built-in MACD function. In the EasyLanguage for this indicator, relative strength is calculated first. Once the relative strength value has been obtained, then the MACD function is used to calculate the differential line for Plot1. Both the XAverage and the MACD functions are used in Plot2 for the calculation of the signal line. The suggested format for this indicator is specifie...
BY: Technical Analysis, Inc.SUBJECT: Traders' Tips
ARTICLE SYNOPSIS ...The Volatility Stop System Here's a step-by-step through the development of a robust trading system for capturing major market moves. Volatility systems have a long and honored history in technical trading. Here, I'll show you a simple, robust version you can use on a weekly basis. I include code in a sidebar and show the results of optimizing the system for the Dow Jones Industrial Average (DJIA), some stocks, and some mutual funds. The results are good across the board. The most robust systems adapt themselves to the market or security being traded. One indicator particularly well suited t...
BY: Mark Vakkur, M.D.SUBJECT: System Design
ARTICLE SYNOPSIS ...Trading The MACD You can trade Gerald Appel's moving average convergence/ divergence profitably in relatively flat markets. Here's how. The moving average convergence/ divergence (MACD) is a momentum oscillator developed by Gerald Appel in the early 1970s. For this oscillator, momentum implies that fluctuations in prices are reflected in the MACD; if there is a sudden increase in price, the MACD will move upward. It fluctuates above and below a zero line -- which is why it is known as an oscillator. The zero line is the horizontal equilibrium line and if the indicator is above the zero line, ...
BY: Jayanthi GopalakrishnanSUBJECT: Basic Techniques
ARTICLE SYNOPSIS ...IDENTIFYING SUPPORT & RESISTANCE LEVELS Editor, Bravo! I found Ned Gandevani's article in the July 1999 STOCKS & COMMODITIES, "Identifying Crucial Support And Resistance Levels," the true remedy for my quest. As an S&P day trader, I've been in search of a solid method to identify support and resistance levels in the S&P market. I couldn't agree more with Gandevani's statement that none of the old and linear techniques work in the S&P market. The author's simple and creative concept offers a great practical tool in locating crucial support/ resistance levels or common numbers. Great choice and...
BY: Technical Analysis, Inc.SUBJECT: Letters To S&C
ARTICLE SYNOPSIS ...QUOTE.COM'S FAST QUOTE AND LIVE! CHARTS - http://fast.quote.com Quote.com offers a range of free and paid charting services at its site. In the March 1999 STOCKS & COMMODITIES, we reviewed QCharts, the Internet-delivered real-time quote and charting service from Quote.com. But Quote.com offers packages for every level of trader, from free to $99.95 a month for the real-time QCharts service. In the free area, you can plot quick charts or live, streaming charts....
BY: Technical Analysis, Inc.SUBJECT: Websites