ARTICLE SYNOPSIS ...Explore Your Options by Tom Gentile UNDERSTANDING OPTION SYMBOLS I know stock symbols usually have threeor four-letter symbols. Why do options have five-letter symbols? Stocks can have one-, two-, three-, four-, or even five-letter symbols. For example, the symbol for Citigroup is C, for Coca Cola it is KO, and International Business Machines is IBM. Option symbols consist of three pieces of information and have between three and five symbols. The first part is the option root symbol, which is often the same as the ticker for the stock. The root symbol for Citigroup is C. In the case of a f...
BY: Tom GentileSUBJECT: Explore Your Options
ARTICLE SYNOPSIS ...Forex Focus: Surviving The Trappings Of Trends by Cornelius Luca Faced with a choppy trend? Here's how to analyze a trend and identify some realistic opportunities. AH! the dream and promise of trends! Traders rightfully seek and try to follow them. However, staying with the trend is not for the fainthearted, and unless you are Warren Buffett or have similarly deep pockets, you may not be able to survive the experience. The average trader will have to learn to shift between both short-term and medium-term strategies, and the long and short directions, regardless of the direction of the major...
BY: Cornelius LucaSUBJECT: Forex Focus
ARTICLE SYNOPSIS ...Forex Volatility Patterns by Ken Calhoun Want to catch 40 to 100 pips in each trade? Here's how you can find those entry and exit signals to make your forex trading a success. Capturing volatile breakouts and reversals in currency pair trades has long been a challenge for active foreign exchange traders. But how often do traders actually trade high-volatility patterns correctly? Trendline projections in lagging indicators such as moving averages/exponential moving averages (MAs/EMAs) often whipsaw traders out of positions and need to be modified for successfully trading volatile currency pai...
BY: Ken CalhounSUBJECT: Trading Techniques
ARTICLE SYNOPSIS ...Futurs For You by Dan O'Neil MARGIN FOR ERROR After years of trading stocks exclusively, I've recently started trading futures. Unfortunately, I also just received my first margin call. While I was able to get through it without too much difficulty this time, it made me realize I probably didn't do enough homework on how margin works on the futures side. Can you break down some of the differences between margin in the stock market and margin in futures? A margin call is indeed a harsh welcome to the world of futures trading. But after surviving one, the important thing is to learn more abou...
BY: Dan O'NeilSUBJECT: Futures For You
ARTICLE SYNOPSIS ...Interview: A Man Of Many Talents: Dan Gramza by Jayanthi Gopalakrishnan Is there anything Dan Gramza hasn't done? He's president of Gramza Capital Management and DMG Advisors, LLC. He is an author, trader, analyst, consultant to domestic and international clients, and an advisor to the St. Croix hedge funds. Gramza has also appeared on CNN's Moneyline program, Reuters TV, Bloomberg TV, ROB TV in Canada, and others. Wait, there's more! He's developed and presented worldwide public and private courses for traders on candlestick analysis, Market Profile, technical analysis, options and options ...
BY: Jayanthi GopalakrishnanSUBJECT: Interview
ARTICLE SYNOPSIS ...Letters to S&C by Technical Analysis, Inc. BETWEEN PRICE AND VOLUME Editor, I would like to thank Buff Dormeier for his wellwritten and insightful article, "Between Price And Volume" (July 2007). I have two questions for the author regarding the volume-price ratio (VPR) and normalization: 1) If the purpose of the VPR is to "accentuate the VPC+/- relative to the shortterm price-volume relationship," it seems that the formula (VPR = VWMA/ SMA) should be flipped (VPR = SMA/ VWMA) when the closing price is below the SMA and the VWMA. As it was presented, the VPR would accentuate the VPC when t...
BY: Technical Analysis, Inc.SUBJECT: Letters To S&C
ARTICLE SYNOPSIS ...Q&A by Don Bright IMPROVING A TRADING SYSTEM Don, what you think about a simple system like a moving average crossover system? I've played with different combinations (50/200, 30/100, and so on) in different markets (NASDAQ, Standard & Poor's 500, and others) with equities only. I got very good results with 30/100 in NASDAQ with money management, investing about 3% per trade. My profitable trades are somewhere between 40% and 50%. What you think about the system, and how do you think I should improve the trading system with additional indicators? Thanks. -- Sudhir Cheda Moving average tradin...
BY: Don BrightSUBJECT: Q&A
ARTICLE SYNOPSIS ...Books For Traders by Technical Analysis, Inc. ? Cocktail Economics: Discovering Investment Truths From Everyday Conversations ? The CRB Commodity Yearbook 2007 ? Secrets Of The Trading Pros: Techniques & Tips That Pros Use To Beat The Markets ? The CPM Platinum Group Metals Yearbook 2007 ? Getting Started In Commodities ? Inside The Investor's Brain: The Power Of Mind Over Money ? World Event Trading: How To Analyze And Profit From Today's Headlines...
BY: Technical Analysis, Inc.SUBJECT: Books For Traders
BY: Technical Analysis, Inc.SUBJECT: Forex Brokerages
ARTICLE SYNOPSIS ...Traders' Tips by Technical Analysis, Inc. ? TRADECISION: ACCUMULATED RANGE RATIO INDICATOR Editor's note: Code for Tradecision is already included in Dima Vonko article in this issue, "Tandem Studies On Market Movement." The code in Improvian language implements the parameter values for the primary phase (the trend), secondary phase (the correction), and resulting ratio. The code can be used directly in Tradecision's Phase Rover. ? METASTOCK: ACCUMULATED RANGE RATIO INDICATOR Dima Vonko's article in this issue, "Tandem Studies On Market Movement," describes the calculation and use of the a...
BY: Technical Analysis, Inc.SUBJECT: Traders' Tips
ARTICLE SYNOPSIS ...Tandem Studies On Market Movement by Dima Vonk Here's a tool that analyzes the structure of the market and anticipates market developments for the immediate future. Market movements are often referred to as trends, sideways movements, and consolidations. But within these movements are smaller price movements that are subject to fluctuation (noise). These are difficult to analyze, which is why you must understand which phase the market is in and what the likelihood is for this phase to be replaced by another. It is only after knowing this that you can apply any relevant technical analysis too...
BY: Dima VonkoSUBJECT: New Techniques
ARTICLE SYNOPSIS ...Trading Trendline Breaks, Part 3 by Sylvain Vervoort Previously, I discussed how trendlines are plotted and how they can be used. This time, I am going to show you Abercombie & Fitch Co. (ANF). The numbers here represent the labels on the chart displayed in Figure 1: 1. There is a clear downtrend line break. There is a buy signal generated by the trendline break simulation system (green up arrow) at about the same level of the trendline break. You open a long position. Typically, you would set a stop-loss just below the previous low. 2. The next trend is up. 3. In February the trend starts...
BY: Sylvain VervoortSUBJECT: Trading Techniques
ARTICLE SYNOPSIS ...Trend-Following And The Interest Carry Trade by Russell Sands Here's a look at how the Turtle system can be combined with forex trading. Forex trading has been around quite a while, and so has the Turtle system. But it has only been in the last year or so I figured out how to put the two together. After about six months of work, the first Turtle foreign exchange manual was written, and the system released at the beginning of 2007. We all know that trendfollowing is a valid concept of trading, and we also (should) all know by now that currencies are among the best trending of all markets, so ...
BY: Russell SandsSUBJECT: Classic Techniques
ARTICLE SYNOPSIS ...Websites For Traders: ForexFactory by David Penn FOREXFACTORY.COM Until convinced otherwise, I still contend that the message-board is the greatest product of the Internet revolution. Inasmuch as the Internet is about connectivity, what could be more important than the development of virtual places where people from different walks of life can virtually meet and exchange often very real ideas? For traders, who often live a solitary existence, the message-board is a great source of information, observation, trading ideas, and simply community. While the loneliness of the retail trader is pr...
BY: David PennSUBJECT: Websites For Traders