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• At The Close by Jayanthi Gopalakrishnan

  ARTICLE SYNOPSIS ...Stocks & Commodities V. 22:12 (130, 116): At The Close by Jayanthi Gopalakrishnan Forex Trading And Technical Indicators Jeff Hughes is a self-taught technical trader of stocks who recently entered the foreign exchange (forex) market for the first time. In this Q&A, learn how and why he uses technical analysis to successfully trade the forex market. Hughes used his technical trading abilities as a first-time entrant into the forex market to win Forex.com's "Win A Mini" trading contest in June 2004. The next contest is scheduled to begin in February 2005. Q: What motivated you to try trading...

AUTHOR: Jayanthi GopalakrishnanDATE: DEC2004SUBJECT: At The Close

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• Books For Traders by Technical Analysis, Inc.

  ARTICLE SYNOPSIS ...Stocks & Commodities V. 22:12 (128): Books For Traders by Technical Analysis, Inc. Applying Elliott Wave Theory Profitably (222 pages, $69.95, hardcover, 2003, ISBN 0-471-42007-7) by Steven W. Poser, published by John Wiley & Sons. During the late 1920s, Ralph Nelson Elliott theorized that stock markets do not behave in a random, chaotic manner, but rather move in cycles, reflecting the actions and emotions of human mass psychology. Elliott believed that the ebb and flow of mass psychology reveals itself in repetitive patterns, or waves. This book makes sense of this proven trading strategy...

AUTHOR: Technical Analysis, Inc.DATE: DEC2004SUBJECT: Books For Traders

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• Breadth Statistics: What Do They Tell You? by Tom McClellan

  ARTICLE SYNOPSIS ...Stocks & Commodities V. 22:12 (68-72): Breadth Statistics: What Do They Tell You? by Tom McClellan Let's revisit the advance/decline line. Advance/decline (A/D) statistics have been used since 1926, when they were first analyzed by Col. Leonard Ayres and James Hughes of the Cleveland Trust Co. In the early 1960s, the use of the advance/decline line gained more attention with the writings of Richard Russell, Joseph Granville, and others who were able to demonstrate its effectiveness when it showed a diverging condition during the 1961?62 market top. A/D LINE BASICS There are different ways ...

AUTHOR: Tom McClellanDATE: DEC2004SUBJECT: Classic Technique

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• Charting The Market by David Penn

  ARTICLE SYNOPSIS ...Stocks & Commodities V. 22:12 (99-100): Charting The Market by David Penn GAPS Are gaps to technical analysts what stock splits are to fundamental analysts: clear evidence of a market event, the significance of which is often inversely related to the level of glad surprise the event itself elicits? Thus, during the stock market bubble years of the late 1990s, television advertisements for brokerage firms would routinely feature "regular" guy (and gal) traders and investors babbling about how XYZ Trade Inc. kept them abreast of all the things a "serious trader/investor" needs: upgrades, downg...

AUTHOR: David PennDATE: DEC2004SUBJECT: Charting The Market

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• Explore Your Options by Tom Gentile

  ARTICLE SYNOPSIS ...Stocks & Commodities V. 22:12 (74): Explore Your Options by Tom Gentile Got a question about options? Tom Gentile is the chief options strategist at Optionetics (www.optionetics.com), an education and publishing firm dedicated to teaching investors how to minimize their risk while maximizing profits using options. To submit a question, post it to our website at http://Message-Boards.Traders.com. Answers will be posted there, and selected questions will appear in a future issue of S&C. EXIT STRATEGY EXAMPLE Would you explain the process of exit strategies? Thanks -- Elom The appropriate exit...

AUTHOR: Tom GentileDATE: DEC2004SUBJECT: Explore Your Options

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• Intermarket Review by David Penn

  ARTICLE SYNOPSIS ...Stocks & Commodities V. 22:12 (66-67): Intermarket Review by David Penn How do you spell "inflation"? O-I-L? How about long-term interest rates, such as those attached to the 10-year US Treasury note? If you are a supply-side economist of the Jude Wanniski school, then maybe you will refuse to shout "inflation" until you see the color of the eyes of the "POG," more familiarly known as the price of gold. Then again, if you believe that an inflating dollar has to have another currency against which to depreciate in value, how about the Swiss franc, that stalwart European currency of the inflati...

AUTHOR: David PennDATE: DEC2004SUBJECT: Intermarket Review

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• Interview: Larry Connors On How Markets Really Work by Jayanthi Gopalakrishnan

  ARTICLE SYNOPSIS ...Stocks & Commodities V. 22:12 (74-79): Interview: Larry Connors On How Markets Really Work by Jayanthi Gopalakrishnan Laurence Connors is chairman and chief executive officer of TradingMarkets.com, a financial markets information company he founded in 1998. With more than 22 years' experience in the financial markets industry, he is also the managing director of Connors Capital, a private investment company. Larry Connors has also authored topselling books on market strategies and volatility trading, including Street Smarts (with Linda Raschke), How Markets Really Work, Connors On Advanced Tr...

AUTHOR: Jayanthi GopalakrishnanDATE: DEC2004SUBJECT: Interview

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• Letters To S&C by Technical Analysis, Inc.

  ARTICLE SYNOPSIS ...Stocks & Commodities V. 22:12 (10-13): Letters To S&C by Technical Analysis, Inc. The editors of S&C invite readers to submit their opinions and information on subjects relating to technical analysis and this magazine. This column is our means of communication with our readers. Is there something you would like to know more (or less) about? Tell us about it. Without a source of new ideas and subjects coming from our readers, this magazine would not exist. Address your correspondence to: Editor, STOCKS & COMMODITIES, 4757 California Ave. SW, Seattle, WA 98116-4499, or email to Editor@Traders....

AUTHOR: Technical Analysis, Inc.DATE: DEC2004SUBJECT: Letters To S&C

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Opening Position by Jayanthi Gopalakrishnan

AUTHOR: Jayanthi GopalakrishnanDATE: DEC2004SUBJECT: Opening Position

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• Product Review: AllPennyStocks.com by David Penn

  ARTICLE SYNOPSIS ...Stocks & Commodities V. 22:12 (122-124): Product Review: AllPennyStocks.com by David Penn ALLPENNYSTOCKS.COM You know you shouldn't. Deep down, you know better, don't you? But still, you just can't help yourself. Twenty cents a share for a company just about to make it into the big time. ? A buck fifty a share for this tiny, great little outfit that nobody knows about -- yet. And there you are, waiting to enter on the ground floor. You want to do it. You can't help yourself. But you also can't help but remember everything that everybody told you about penny stocks -- much of which is probably ...

AUTHOR: David PennDATE: DEC2004SUBJECT: Websites For Traders

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• Q&A by Don Bright

  ARTICLE SYNOPSIS ...Stocks & Commodities V. 22:12 (20): Q&A by Don Bright SINCE YOU ASKED Confused about some aspect of trading? Professional trader Don Bright of Bright Trading (www.stocktrading.com), an equity trading corporation, answers a few of your questions. To submit a question, post your question to our website at http:// Message-Boards.Traders.com. Answers will be posted there, and selected questions will appear in a future issue of S&C. PROGRAM TRADES I read an online chat that talked about programmed trades occurring on the Nasdaq. I don't trade that market, but found it interesting. It made me wo...

AUTHOR: Don BrightDATE: DEC2004SUBJECT: Q&A

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• Setting Strike Price Probability At Expiration by David White

  ARTICLE SYNOPSIS ...Stocks & Commodities V. 22:12 (56-59): Setting Strike Price Probability At Expiration by David White Here's one way you can increase your odds for a short-term play. Nassim Taleb's exceptional book, Fooled By Randomness, helped me finally gain the proper understanding of the probability of hitting a strike price at expiration: "The statistic that 90% of all option positions lost money is meaningless (i.e., the frequency) if we do not take into account how much money is made on average during the remaining 10%." Let's take a look at what this means. PRICE AT EXPIRATION Setting a real-odds n...

AUTHOR: David WhiteDATE: DEC2004SUBJECT: Options

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• Sidebar: Excel codes for trend trigger factor by M.H. Pee

  ARTICLE SYNOPSIS ...Stocks & Commodities V. 22:12 (28-36): Sidebar: Excel codes for trend trigger factor by M.H. Pee EXCEL CODES FOR TREND TRIGGER FACTOR The Excel spreadsheet in sidebar Figure 1 shows all the required calculations for the 15-day trend trigger factor (TTF) on the euro between October 1, 2002, and January 15, 2003, inclusively. The data is represented in continuous contract format. The date, open, high, low, and close goes into column A, B, C, D, and E, respectively. The date is represented using eight digits, with the first four representing the year, the next two the month, and the last two th...

AUTHOR: M.H. PeeDATE: DEC2004SUBJECT: Sidebar

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• The Dynamics Of Candlestick Patterns by Shijoong Sung

  ARTICLE SYNOPSIS ...Stocks & Commodities V. 22:12 (46-49): The Dynamics Of Candlestick Patterns by Shijoong Sung Candlestick patterns have been used for centuries, but given that they have received so much attention among technical analysts, can they still be used in the conventional way? If a hammer pattern appears during a bearish trend, does that mean you should plunge into the market? If a hanging man pattern appears during a bullish trend, does that mean you should exit the market immediately? Little is known about the effects and dynamics of candlestick patterns, so to find out more, I did a thorough and ...

AUTHOR: Shijoong SungDATE: DEC2004SUBJECT: Statistics

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• The End Of The Trend by Cornelius Luca

  ARTICLE SYNOPSIS ...Stocks & Commodities V. 22:12 (14-18): The End Of The Trend by Cornelius Luca You're riding along with the trend, watching your returns consistently increase. You know it's not going to go on forever? but how do you know when it'll end? As much as we like trends and their inherent profitability, all good things must eventually come to an end. Dealing with their demise is easier said than done; it's not only that traders loathe parting with a good thing, but ending trends is often a messy affair that can take its toll on your budget. However, there are several reversal formations you can watc...

AUTHOR: Cornelius LucaDATE: DEC2004SUBJECT: Chart Patterns

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Traders' Resource: Books by Technical Analysis, Inc.

AUTHOR: Technical Analysis, Inc.DATE: DEC2004SUBJECT: Traders' Resource

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• Traders' Tips by Technical Analysis, Inc.

  ARTICLE SYNOPSIS ...Stocks & Commodities V. 22:12 (86-98): Traders' Tips by Technical Analysis, Inc. Here is this month's selection of Traders' Tips, contributed by various developers of technical analysis software, all to help readers more easily implement some of the strategies presented in this issue. In the article "Trend Trigger Factor", M.H. Pee describes a trend trigger factor (TTF) indicator, which is a method of detecting uptrends and downtrends using a 15-day buy power and 15-day sell power calculation. Pee also provides sample criteria that can be used to create an always-in-the-market reversal strat...

AUTHOR: Technical Analysis, Inc.DATE: DEC2004

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• Trading In A Sideways Market by Anthony Trongone

  ARTICLE SYNOPSIS ...Stocks & Commodities V. 22:12 (22-27): Trading In A Sideways Market by Anthony Trongone When the markets are trading in a narrow range, you are likely to become susceptible to emotional trading. But if you follow the emerging patterns of a sideways market, you can trade successfully. Without a thorough understanding of how a sideways market functions, trading in such a featureless environment can easily diminish the assets in your portfolio. You can achieve some success from trading without adequate knowledge; unfortunately, it will come without the benefit of sound planning. Although you ma...

AUTHOR: Anthony Trongone, Ph.D., CFP, CTADATE: DEC2004SUBJECT: Quantitative Analysis

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• Trend Trigger Factor by M.H. Pee

  ARTICLE SYNOPSIS ...Stocks & Commodities V. 22:12 (28-36): Trend Trigger Factor by M.H. Pee Whether you're trading short term or long term, the only way to make money in the market is to position yourself in the direction of the trend. The markets are mostly random, but they do have a small trend component. It is this trend component that you should take advantage of if you want to make money in the markets. I don't mean you should buy at the bottom of a trend and sell at the top by predicting exactly when it will start and when it will end. What you should do is follow the trend and ride it along until you see...

AUTHOR: M.H. PeeDATE: DEC2004SUBJECT: Indicators

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• Websites For Traders: CandlestickShop.com by David Penn

  ARTICLE SYNOPSIS ...Stocks & Commodities V. 22:12 (102-103): Websites For Traders: CandlestickShop.com by David Penn CANDLESTICKSHOP.COM It must be entertaining to technical analysts who have used candlestick charts for years to learn of the almost mystical regard that some technicians have for them. Part of this is probably the packaging. For all the colorful descriptions of technical price action -- from deadcat bounces to breakouts -- you really have to take off your hat to some of the emotive phraseology embedded in Japanese candlesticks. From the hanging man pattern -- which sounds like the title of some earl...

AUTHOR: David PennDATE: DEC2004SUBJECT: Websites For Traders

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• Where Is The Weakest Link? by Damir Smitlener

  ARTICLE SYNOPSIS ...Stocks & Commodities V. 22:12 (42-45): Where Is The Weakest Link? by Damir Smitlener With the year coming to a close, it's a good time to revisit your trading system. Here are a few things to consider that you may never have thought of. Varied and various forms of technical analysis have been used to determine which way the market will go. Much of this effort has been devoted to creating indicators that are used to find turning points and identify trends. Despite that effort, most traders fail to extract a living from the markets. It is widely assumed that these failures aren't due to specif...

AUTHOR: Damir SmitlenerDATE: DEC2004SUBJECT: Money Management

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Working Money: Continuation Triangles With Fibonacci Targets by J. Mark Kinoff

AUTHOR: J. Mark KinoffDATE: DEC2004SUBJECT: The Chartist

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Working Money: Profiting In A Stage III Market by Melvin Pasternak

AUTHOR: Melvin PasternakDATE: DEC2004SUBJECT: Working Money

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Working Money: The Dow Days Of Summer by David Penn

AUTHOR: David PennDATE: DEC2004SUBJECT: Working Money

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Working Money: The Morning Star by Steve Bigalow

AUTHOR: Stephen W. BigalowDATE: DEC2004SUBJECT: Working Money