ARTICLE SYNOPSIS ...At The Close by Teresa Lo Looked At Market Sentiment Lately? The volatile markets make for uneasy market participants. Keep a calm, cool, collected eye out and don't get swept away by the hysteria of the crowds. IN the summer of 2002, market participants anxiously watched the apparent neckline breach of a massive head & shoulders top formation on the Standard & Poor's 500. From the March 24, 2000, high of 1,552.87 to the September 21, 2001, low of 944.75, the pattern measured 608 points. Subtracting that from the neckline at 944 produced a downside target of 336 (Figure 1). The exist...
BY: Teresa LoSUBJECT: At The Close
BY: Technical Analysis, Inc.SUBJECT: Books For Traders
ARTICLE SYNOPSIS ...Explore Your Options by Tom Gentile TRADING PLAN I bought five Xyz October 160?170 call spreads for $1.79. Here's my trading plan: Buy Xyz October 160?170 calls spread for $1.79 Max loss: $1.79 Max risk: $1.79 Max reward: $8.29 Ratio: 4.6 to 1 Stop-loss: If Xyz stock closes below $131 Profit stop: Exit three contracts @ tech stop $155 ($3.46 net credit exit) and let the other two contracts run. Time stop: 30 days to expiration Xyz as of today's close: $152 Current value of spread: $3.00 What else should I build into my trading plans? This is when it gets difficult for me: When I'm winning ...
BY: Tom GentileSUBJECT: Explore Your Options
ARTICLE SYNOPSIS ...Futures For You by Carley Garner AS AN INDEPENDENT TRADER I am currently trading with my own money on futures (commodities, indexes, interest rates, currencies, for about 10 years) and would like to start trading with larger accounts. My performance over the last year is a Sharpe ratio of 2.75. What steps should I take to find funds that could be interested in using me as an independent trader? --Michel in Belgium If you feel as though your futures and option trading ability may be attractive to investors who don't have the time or the skills to trade their own account, you may want to consi...
BY: Carley GarnerSUBJECT: Futures For You
ARTICLE SYNOPSIS ...Letters To S&C by Technical Analysis, Inc. TR&NDS TRAILING STOP TECHNIQUE Editor, I have read Sylvain Vervoort's article on Tr&nds ("Trailing Resistance &nd Support Stops") in the July 2009 Stocks & Commodities and found it very helpful. John C. KEEPING IT STREAMLINED Editor, Thank you to Sylvain Vervoort for sharing his work in your magazine. I am interested in buying his book when it is available. I started with technical analysis as a broker in 2001. Over the years I started my own investment firm and have been using AmiBroker. (Amibroker provides programming in your Traders' Tips...
BY: Technical Analysis, Inc.SUBJECT: Letters To S&C
ARTICLE SYNOPSIS ...MIDAS And Intraday Charts by Andrew Coles and David Hawkins In this third and final part of this series, we will look at how to apply the TB-F algorithm to intraday charts. by Andrew Coles and David Hawkins Like Midas, which is an acronym for market interpretation/data analysis system, the principles governing the application of Paul Levine's topfinder/bottomfinder (TB-F) algorithm to the daily charts also applies to intraday charts. In this article, Andrew Coles will follow David Hawkins' format of combining Levine's standard rules for applying the TB-F algorithm alongside his own preferre...
BY: Andrew Coles and David HawkinsSUBJECT: Indicators
ARTICLE SYNOPSIS ...Manage Your Money, Or Someone Else Will by Ray Johns You can stop that from happening, and here's how. Many traders, especially those new to the markets, tend to overlook a simple yet important premise when it comes to their trading: specifically, that the cornerstone of long-term profitability in the market revolves around successful money management. It may sound simple, but oftentimes, not enough emphasis is placed on the importance of proper money management. In fact, the management of your money (that is, taking steps to reduce risks and allocate funds) is so critical to success that it...
BY: Ray JohnsSUBJECT: Charting
ARTICLE SYNOPSIS ...Q&A by Don Bright YAHOO OPEN Why does Yahoo! Finance list the opening price for the Dow Jones Industrial Average (Djia) at 8,146.82 when on the daily chart at 8:30 the price is 8,167? This may be a newbie question, but I sure would like to know. Thanks. --newtrader80 The opening price on the Djia is the same as the closing price from the day before. What happens is that you may see other data vendors using the 9:30 a.m. snapshot where perhaps a few Djia stocks have opened. A similar thing happens with individual stocks. You have what is referred to as "primary market" (Nyse, for example) v...
BY: Don BrightSUBJECT: Q&A
ARTICLE SYNOPSIS ...Risk Management, Position Sizing, And Probability by Brian Auit Implement a well-planned strategy before initiating your next trade so you can sustain losses. This methodical approach allows you to consider all the factors before initiating your next trade so you can build that elusive 45-degree angled equity curve with your trading capital. by Brian Ault Say you've booked 16 winning trades in a row. Your account has jumped 12% in value. Your ability to define your edge has never been more focused and your confidence increases with each and every successful outcome. But out of nowhere comes...
BY: Brian AuitSUBJECT: Trading Techniques
ARTICLE SYNOPSIS ...Spherical Wave Filters by Richard Johnson Why do Elliott wave patterns develop in price data? This may be the reason. OF all the geometric forms, the sphere is the simplest. On a two-dimensional plane, the sphere is displayed as a circle or ellipse. The exact center of a circle is its radius point, which is precisely halfway between any opposite surface points. The radius is in turn half of the diameter of a circle, and it is its center of mass. On a two-dimensional chart where time is displayed linearly from left to right on the x-axis (the horizontal axis in a plane coordinate), a circle c...
BY: Richard JohnsonSUBJECT: Trading Techniques
ARTICLE SYNOPSIS ...Surfing Your Position With Wave Stops by E. Labunsky and T. Hamilton When is a good time and place to exit a position? Whether inspired by Ralph Nelson Elliott's works or by just a casual observation of a price chart, you can't help but notice how prices advance, then pause and correct in a wavelike action. What if you could take that basic price movement on the part of buyers and sellers, supply and demand, and use it to manage your position? That is the basic objective of wave stops, the method I developed to determine a good time and place to exit a position. WAVE STOPS Wave stops are...
BY: E. Labunsky and T. HamiltonSUBJECT: Trading Systems
ARTICLE SYNOPSIS ...The Danger Zone With Gregory Morris by J. Gopalakrishnan and B. Faber As chief technical analyst for Stadion Money Management, Gregory Morris educates institutional and individual clients on the merits of technical analysis, and it is why Stadion utilizes a technical rules-based model to oversee the management of more than $1.5 billion in assets in two mutual funds, separate accounts, and 401k plans. Widely recognized as an expert on candlesticks and the developer of candlestick filtering, Morris has lectured around the world on the subject. From 1982 until 1993, he worked in association wi...
BY: J. Gopalakrishnan and B. FaberSUBJECT: Interview
ARTICLE SYNOPSIS ...Tops And Bottoms by Alexander Sabodin How do you know if the market has formed a top or a bottom? Here we look at the double-top and double-bottom patterns that occur frequently in the markets. by Alexander Sabodin When head & shoulders, double-top/bottom, and triple-top/bottom patterns are discussed, you'll find that they are referred to as trend reversal patterns. A triple top or bottom is rarer but is really just a version of the head & shoulders pattern. The main difference between the two is that all three peaks (or three troughs) of a triple top or bottom are located at almost the sa...
BY: Alexander SabodinSUBJECT: Chart Patterns
ARTICLE SYNOPSIS ...Traders' Tips by Technical Analysis, Inc. This month's Traders' Tips are based mainly on Giorgos Siligardos' July 2009 S&C article, "The Pivot Detector Oscillator, Simplified." Others are on a topic of the contributors' choosing. MetaStock code to help implement the strategy is provided in Siligardos' article in the July 2009 issue, and 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 in the Traders' Tips area, from ...
BY: Technical Analysis, Inc.SUBJECT: Traders' Tips
BY: Michael J. Carr, CMTSUBJECT: Novice Traders' Notebook
BY: Thomas MaskellSUBJECT: Novice Traders' Notebook