JAN 2000 STOCKS & COMMODITIES Magazine

Article Archive For JAN2000

Are Three-Bar Patterns Reliable For Stocks? by Thomas Bulkowski

ARTICLE SYNOPSIS ...Are Three-Bar Patterns Reliable For Stocks? by Thomas Bulkowski Futures traders often use a three-bar swing low as a reversal pattern,but is the three-bar pattern reliable for stocks?Find out here. I discovered this gem of a pattern while prospecting for ideas in a recent issue of STOCKS & COMMODITIES.In the interview with Kevin Haggerty was the following pattern description: One example [to determine a change in direction ]is a three-bar pattern,which is the same one that futures traders use.The stock establishes a low price as a swing point.Once the stock closes above the high of the low ...

AUTHOR: Thomas BulkowskiDATE: JAN2000SUBJECT: Trading Techniques

Are Two Channels Better Than One? by Stephane Reverre

ARTICLE SYNOPSIS ...Are Two Channels Better Than One? by St�phane Reverre This author tested two channels based on Bollinger Bands around a standard moving average and an application of the capital asset pricing model, and discovered that a combination of the two performs better than the two separately. Traditional wisdom states that ""The trend is your friend,"" and experienced traders know that it is far wiser to embark, even late, on an established trend than to play a correction against it. Many indicators have been designed to specifically predict a fledgling trend or an imminent correction, and out of th...

AUTHOR: Stephane ReverreDATE: JAN2000SUBJECT: Trading Techniques

AUTHOR: Technical Analysis, Inc.DATE: JAN2000

Increasing Return With Covered Calls by Joe Demkovich and Eugene Theriot

ARTICLE SYNOPSIS ...Increasing Return With Covered Calls by Joe Demkovich and Eugene Theriot Worried about how exposed you are to price fluctuation in your options position? Don't be. Here's how you can retain flexibility by using covered-call options. One of the most conservative investing actions you can take is to sell covered-call options.Covered refers to your owning the stock underlying the calls you sell. Thus, if someone actually does ""call"" you, or take you up on your offer to sell the option,you can just sell them the stock. Of course, you do get paid for this, sometimes quite handsomely. There ar...

AUTHOR: Joe Demkovich and Eugene TheriotDATE: JAN2000SUBJECT: Options

Interview: Leo Melamed by John Sweeney

ARTICLE SYNOPSIS ...On The Alliance Of Exchanges Leo Melamed As chief architect of financial futures, Melamed led the US futures industry from 1967 until his retirement from the CME in 1991. During this period, financial futures experienced unparalleled growth and became an established and indispensable tool in financial risk management. Further,in 1987, Melamed introduced Globex, the first electronic futures after-hours trading system, developed in conjunction with Reuters Holdings PLC. Melamed served as the first chairman of the system until 1993. Melamed, an attorney by profession, is an active futures trade...

AUTHOR: John SweeneyDATE: JAN2000SUBJECT: Interview

It 's What You Keep That Counts by Ted Tesser, CPA

ARTICLE SYNOPSIS ...It's What You Keep That Counts by Ted Tesser,CPA Trader status, which has always been one of the hottest but least understood topics whenever taxes are discussed, has always left market participants confused. Here's a certified public accountant who also trades to explain it all to you. Trader status has always been one of the most hotly discussed topics whenever taxes are discussed amid those in the industry. Until recently, the Internal Revenue Service (IRS) code left us in the dark,and all we had to go on were the divergent opinions of certified public accountants (CPAs), tax lawyers, an...

AUTHOR: Ted Tesser, CPADATE: JAN2000SUBJECT: Taxes

Letters

ARTICLE SYNOPSIS ...CANDLESTICK CODE IN EASYLANGUAGE Editor, After the November 1999 issue of STOCKS &COMMODITIES came out with my article, ""Coding Candlesticks,"" and the accompanying sidebar, ""Candle code construction with MetaStock,"" many traders asked about the TradeStation/SuperCharts variant of the candlestick code. Well, trader Valeriy Lazarenko has developed the EasyLanguage code for indicators discussed in my article. VIKTOR LIKHOVIDOV See Traders' Tips in this issue for this EasyLanguage code. It will also be posted at our own Website at http://www.traders.com/Documentation/FEEDbk_docs/TradersTips...

AUTHOR: Technical Analysis, Inc.DATE: JAN2000SUBJECT: Letters To S&C

Market Profile Exotics by Jayanthi Gopalakrishnan

ARTICLE SYNOPSIS ...Market Profile Exotics The Liquidity Data Bank In this followup to last month 's article on Market Profile,we go beyond Market Profile to determine price movements.Here 's a look at the Liquidity Data Bank,which helps traders detect price movements early. When prices move in one direction, it means that prices are being met with acceptance.It is important to realize that trends do not continue indefinitely and there will be points where price levels will be met with opposition,which will indicate either the start of a trend reversal or that the market is likely to go through a trading range....

AUTHOR: Jayanthi GopalakrishnanDATE: JAN2000SUBJECT: Trading Techniques

More Responsive Moving Averages by Joe Sharp,Ph.D.

ARTICLE SYNOPSIS ...More Responsive Moving Averages by Joe Sharp,Ph.D. Traders are resigned to moving averages being behind the price action,but that needn't always be the case. Here's an algebraic technique to make your averages more responsive to price movement - and a better aid in decision--making. Moving averages serve two main purposes: to show the underlying security value after noise has been filtered out and, implicitly, to delay decisions to reduce whipsaws. However, that delay frustrates traders who must make decisions based on what is happening right then and there. You can fix that. I'll show you...

AUTHOR: Joe Sharp, Ph.D.DATE: JAN2000SUBJECT: New Techniques

Traders' Tips

ARTICLE SYNOPSIS ...Here is this month's selection of Traders' Tips, contributed by various developers of technical analysis software to help readers more easily implement some of the strategies presented. Internet users will also find these and some previous Traders' Tips on our Website at http:://www.Traders .com. TRADESTATION/SUPERCHARTS In the November 1999 STOCKS & COMMODITIES, my article ""Coding Candlesticks"" presented a quantitative approach to interpreting candlesticks with code provided in MetaStock format. After the issue came out, many STOCKS & COMMODITIES readers asked about a version of the code i...

AUTHOR: Technical Analysis, Inc.DATE: JAN2000SUBJECT: Traders' Tips