Article Archive For
APR2003
Aftermath Of The Bubble by Phil Abel
AUTHOR: Phil AbelDATE: APR2003SUBJECT: System Design
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Books For Traders by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Books For Traders by Technical Analysis, Inc.
How The Bond Market Works,
Third Edition
Global Asset Allocation: New Methods And
Applications
NASDAQ: A History Of The Market That
Changed The World
Professional Electronic Trading
Stocks For The Long Run, Third Edition
Trading The Moves: Consistent Gains In All
Markets
Wall Street People, Vol. 2: True Stories Of The
Great Barons Of Finance...
AUTHOR: Technical Analysis, Inc.DATE: APR2003SUBJECT: Books For Traders
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Bullish Chart Patterns by Thomas Bulkowski
ARTICLE SYNOPSIS ...Bullish Chart Patterns by Thomas Bulkowski
Can you recognize bullish patterns
when they appear? Find out what
they look like here.
One day, the market
will find a bottom
and start building a
base from which to
launch another bull
market. Will your market. Will your
trading missiles be ready? How will
you know when the time comes to turn
the key and start buying again? One
way is to look for bullish chart patterns
and trade them, cautiously, when they
appear. What should you look for? To
answer that, let's look at some of the
more common chart patterns.
BROADENING BOTTOMS
Figure 1 shows a g...
AUTHOR: Thomas BulkowskiDATE: APR2003SUBJECT: Charting
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Detecting Breakouts by Markos Katsanos
ARTICLE SYNOPSIS ...Detecting Breakouts by Markos Katsanos
The finite volume elements (FVE) indicator is yet
another money flow indicator -- but it takes into
account both intra- and interday price action.
Most technical analysts underestimate
volume indicators in favor of pricebased
indicators or price pattern recognition.
Volume often leads price,
and volume indicators can predict this price change by observing the delicate balance of
supply and demand in the never-ending battle between
buyers and sellers, bulls and bears. To help
analyze crowd psychology and profit from subsequent
price moves, I created the f...
AUTHOR: Markos KatsanosDATE: APR2003SUBJECT: Indicators
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Explore Your Options by Tom Gentile
ARTICLE SYNOPSIS ...Explore Your Options by Tom Gentile
BUTTERFLY SPREADS
Would you be so kind to explain what
exactly a butterfly spread is? Thanks --
Simon
A butterfly spread is a sideways market
strategy using all calls or puts, and
is designed to profit from a stock trading
in a specific range. They are often
cheap to place, offer high rewards, and
can be profitable within a few days to a
few weeks; so they are ideal for shorterterm
swing traders. The construction of
the spread generally involves selling
(shorting) two contracts in the middle
of a stock range (the body) and buying
two contracts (the wings) ...
AUTHOR: Tom GentileDATE: APR2003SUBJECT: Explore Your Options
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Interview: Steve Nison by Jayanthi Gopalakrishnan
ARTICLE SYNOPSIS ...Interview: Steve Nison by Jayanthi Gopalakrishnan
Want to know something about candlestick charting? Steve Nison can
tell you. He was the first to bring Japanese candlestick charting
methods to Western trading nearly 20 years ago. He is a leading
authority on candlesticks, the author of two foundational books on the
subject, Japanese Candlestick Charting Techniques and Beyond Candlesticks,
and gives seminars on the subject. Further, Nison was one of the
first to be awarded the designation of Chartered Market Technician
(CMT) from the Market Technicians Association (MTA); in addition, he
is pr...
AUTHOR: Jayanthi GopalakrishnanDATE: APR2003SUBJECT: Interview
Letters To S&C
AUTHOR: Technical Analysis, Inc.DATE: APR2003SUBJECT: Letters To S&C
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Neural Networks by Wolf von Rönik
ARTICLE SYNOPSIS ...Neural Networks by Wolf von Rönik
Think neural networks are too
difficult a concept to learn?
They're not. Take a look.
In a broad sense, neural
nets are computer
models that
attempt to mimic
the "wetware" or actual physiological structure and functioning of the brain
(which is outlined in the sidebar, "Neurons")....In the simple model displayed in Figure 1, I1, I2, and I3
represent inputs. Moving down, each input reaches a weight
(synapse) labeled W1, W2, and W3 where input and corresponding
weight are multiplied. This new information is conducted (dendrite) as input to the node
(soma). Ins...
AUTHOR: Wolf von RönikDATE: APR2003SUBJECT: Artificial Intelligence
Opening Position by Jayanthi Gopalakrishnan
AUTHOR: Jayanthi GopalakrishnanDATE: APR2003SUBJECT: Opening Position
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Q&A by Don Bright
ARTICLE SYNOPSIS ...Q&A by Don Bright
OPENING-ONLY ORDERS
I've been following the opening-only
orders strategy very closely, and I have a
question. I'm a futures trader and somewhat
unfamiliar with the practical aspects
of trading listed. I watched around
13 opens this morning, and saw fills on
three of them. One was LLY, which opened
delayed? with news. The position would
have been long in LLY at 56.50 to open.
After a nice move to 56.80, I saw futures
leveling off, possibly getting ready for
more buying. But let's say a trader wanted
to start unwinding a 2,000-share position
at this point.
Since the open, th...
AUTHOR: Don BrightDATE: APR2003SUBJECT: Q&A
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Split Synthetic Stock Positions by Roger Ison, Ph.D.
ARTICLE SYNOPSIS ...Split Synthetic Stock Positions by Roger Ison, Ph.D.
Use this flexible but little-known strategy to buy stock
inexpensively, deploy cash more effectively, and diversify your
portfolio.
Suppose that a stock you follow, Abcd Inc.
[ABCD], has just taken a substantial price hit.
It's really beaten down. Its sector has had
some news that made investors nervous, and
now there are some negative analyst comments
about the company itself. But you know this company. You watch it, you understand its business,
and in your judgment, these shares are now an excellent
deal. On its merits, ABCD is a stock y...
AUTHOR: Roger Ison, Ph.D.DATE: APR2003SUBJECT: Options
Traders' Resource: Courses And Seminars
AUTHOR: Technical Analysis, Inc.DATE: APR2003SUBJECT: Traders' Resource
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Traders' Tips by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Traders' Tips by Technical Analysis, Inc.
? TRADESTATION: FINITE VOLUME ELEMENTS (FVE)
Markos Katsanos' article "Detecting Breakouts" describes
the calculation and use of a price-volume indicator called the
finite volume element (FVE). Katsanos provides a detailed
Excel spreadsheet in the article, and I've used it to write the
equivalent EasyLanguage code for the FVE. We named this
indicator "FiniteVolumeElement." Katsanos spends much of the article discussing divergence
between price and FVE trends. He defines these trends in
terms of linear regression slopes. The following indicator,
"FinV...
AUTHOR: Technical Analysis, Inc.DATE: APR2003SUBJECT: Traders' Tips
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Websites For Traders: TurtleTrader.com by David Penn
ARTICLE SYNOPSIS ...Websites For Traders: TurtleTrader.com by David Penn
TURTLETRADER.COM
If there is a Holy Grail of trading (a
colossal "if" in the minds of many), then
it most likely consists less of trading
systems and more of a set of processes,
procedures, and precepts: Ride your
winners and cut your losers short. When
you are trading well, bet biggest, and
when you are trading poorly, pull back
or stop trading altogether. And last but
not least, don't fight the trend.
While there are modifications and stylistic
differences among traders as to the
best way to execute this process -- from
scalpers who cut ...
AUTHOR: David PennDATE: APR2003SUBJECT: Websites For Traders
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Working Money: Gold by David Penn
ARTICLE SYNOPSIS ...Working Money: Gold by David Penn
From gold bugs and gold standards to
massive derivative speculation, the yellow
metal is back.
All that glitters is not gold, goes the saying. But as far
as investors are concerned, gold seems to be the only asset class with any shine at all. Gold mutual funds -- as
noted in Barron's "Mutual Funds" section for December 16,
2002 -- look poised to deliver returns to gold bugs that would
make even the luckiest dotcom speculator salivate with envy.
An exaggeration? Consider the Gabelli Gold Fund AAA,
which is up 75.91% year to date, or perhaps the Rydex
Precious ...
AUTHOR: David PennDATE: APR2003SUBJECT: Focus On...
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Working Money: Postitive Volume Index by Dennis D. Peterson
ARTICLE SYNOPSIS ...Working Money: Postitive Volume Index by Dennis D. Peterson
Is the primary market trend
up or down?
Writing about the positive volume
index (PVI) takes me back to
when I first started trying to understand the
markets. I joined four stock clubs, searched
the Internet extensively, and haunted the
local library. I still belong to one of the
clubs; its members use fundamentals. Even
though they don't subscribe to anything as
voodoo-like as technical analysis, they do
plot data on semi-log charts and use them as
part of the decision-making process. I was
also able to learn quite a bit at the lib...
AUTHOR: Dennis D. PetersonDATE: APR2003SUBJECT: Traders Notebook
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Working Money: Why Doesn't The Fat Lady Sing? by Bruce R. Faber
ARTICLE SYNOPSIS ...Working Money: Why Doesn't The Fat Lady Sing? by Bruce R. Faber
When the stage is obscured
by smoke and mirrors, how
can you know when the last
act is finally over?
Even though the bear market
has been eating investors'
lunch since early in 2000, there has
been no sign of the capitulation that
usually accompanies a market bottom.
As I write this (December 30,
2002), the Nasdaq is down about
73% from its March 2000 high of
5048. The Standard & Poor's 500
index is down from 1527 to about
880. The Dow Jones Industrial Average
(DJIA) has suffered the least,
but it is still down about 29% from
it...
AUTHOR: Bruce R. FaberDATE: APR2003SUBJECT: Working Money: Money Management