Article Archive For
JUN2011
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Advanced Oca Orders
ARTICLE SYNOPSIS ...Every trade demands a stop-loss order. I cannot enter
a position without a stop because the size of every
trade is limited by the distance from entry to stop. Since my
trading horizon is anywhere from several days to several
weeks, I move stops in the direction of the trade once the
price moves in my favor.
Modern platforms provide the ability to use trailing stops,
moving stops in the direction of your trade. When the price
moves against you, that triggers a stop and you are out with
only a small loss or even with a profit. This method is often
used for profit-taking, espe...
AUTHOR: Heinz PopovicDATE: JUN2011
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Books For Traders
ARTICLE SYNOPSIS ...The Big Investment Lie: What Your Financial Advisor Doesn't Want You to Know
(298 pages, $24.95 hardcover, 2007, ISBN 978-1-57675- 407-8) by Michael Edesess, published
by Berrett - Koehler Publishers. The investment advice and management industry is built on fraud --
the idea that professional advisors can consistently help you get a better rate of return
on your investments is a sham. Here, the truth is exposed that the success of nearly
every investment professional is the ability to procure high fees from their ...
AUTHOR: Technical Analysis, Inc.DATE: JUN2011SUBJECT: Books For Traders
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Classic Short Sell Setup
ARTICLE SYNOPSIS ...Figure 1 is an example of a classic
short setup for daytraders. This
is a real bread & butter strategy
used time and again. To set up this Monday
morning trade, the premarket news was
bearish with rumors of the country's credit
rating likely to be downgraded. All the market averages were down. So the bears were
growling and sentiment was weak. BroadComm (Br c m) is one of 20 or so stocks I
follow daily and at the open it frequently
puts in a nice red bar, as do most of the other
stocks I watch. So this time I stalked it for
an entry to the short side....
AUTHOR: Jamie TheissDATE: JUN2011SUBJECT: Day Trading
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Conquering Your Trading Fears With Corey Rosenbloom
ARTICLE SYNOPSIS ...Corey Rosenbloom, Cm t, is the founder of www.afraidtotrade.com, a website dedicated to helping traders overcome their trading fears through education, and is the
author of The Complete Trading Course (John Wiley & Sons, 2011), which outlines
how to combine foundational principles, analysis techniques, and trade setups into
a broader perspective. He began investing using fundamental analysis in 1998
during the runup to the market top in 2000, and the ensuing bear market opened
his awareness to the field of technical analysis as a way to enhance performance
and manage risk more effe...
AUTHOR: J. Gopalakrishnan and B. FaberDATE: JUN2011SUBJECT: Interview
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Daytrading Cup Breakouts
ARTICLE SYNOPSIS ...Entering and exiting intraday trades using
precision technical trading signals has
been popular with both retail and institutional traders, since it limits overnight
risk exposure. The primary elements of
professional daytrading include scanning
for volatile breakouts during the first hour of the
trading day, setting specific technical entry signals
to initiate new trades, and using careful risk management to scale in and out of positions once they're
initiated. Daytrading stocks, eminis, forex, and
exchange traded funds (Et fs) all require different
entry and exit signals....
AUTHOR: Ken CalhounDATE: JUN2011SUBJECT: Indicators
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Elliott Wave And The Explosive Stock
ARTICLE SYNOPSIS ...We all have one goal in mind in this trading game:
We want to find winning investments that leave
our accounts better off than where they started.
Many traders seek to accomplish this goal by
digging through financial statements, news articles, and trade
magazines in search of companies with exploding earnings or
industry-changing innovations in the works. No doubt, these
things create a ton of potential in terms of a company's stock
growth. But we have no way of knowing how the market will
react to even the most promising headlines....
AUTHOR: Ryan HenryDATE: JUN2011SUBJECT: Working Money
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Entering The Price Zone
ARTICLE SYNOPSIS ...In our last article, we introduced a new oscillator that
provides better guidance to buying and selling levels
for securities: the volume zone oscillator (Vz o). This
time, we introduce a similar, complementary indicator: the price zone oscillator (Pz o). See sidebar, "Price Zone
Oscillator," on page 29.
The formula for Pz o depends on only one condition: If
today's closing price is higher than yesterday's closing price,
then the closing price will have a positive value (bullish);
otherwise it will have a negative value (bearish)....
AUTHOR: Walid Khalil and David StecklerDATE: JUN2011
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Explore Your Options
ARTICLE SYNOPSIS ...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 https://Message-Boards.Traders.com. Answers will be posted there,
and selected questions will appear in a future issue of S&C. Contributing analysis
is by senior Optionetics strategist Chris Tyler....
AUTHOR: Tom GentileDATE: JUN2011SUBJECT: Explore Your Options
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Futures For You
ARTICLE SYNOPSIS ...HEDGING PRICE RISK
Is there a way to hedge price risk in the
futures market without giving up potential
for favorable price movement?
The goal of a perfect hedge is to
eliminate the price risk exposure in any
particular market. In doing so, however,
the end user also gives up any favorable
price movement.
Hedging is like any other form of insurance; consumers pay a premium to insurance companies to protect themselves from
unfavorable events that will likely never
occur. In other words, it isn't possible to
enjoy the benefits of protection without
giving something up. Bu...
AUTHOR: Carley GarnerDATE: JUN2011SUBJECT: Futures For You
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Letters to S&C
ARTICLE SYNOPSIS ...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....
AUTHOR: Technical Analysis, Inc.DATE: JUN2011SUBJECT: Letters to S&C
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Opening Position
ARTICLE SYNOPSIS ...The best thing to do in such a market is to take each day at a time. This is not
the time to try to make any forecasts. Follow the masses while the going is
good, but remember that in the financial markets, sooner or later all good things
come to an end. We've seen it before and some of us have been hurt by it. This time
it could be worse than what we saw in 2008 to early 2009. Make risk management
your top priority by placing stops and managing your positions wisely.
...
AUTHOR: Jayanthi GopalakrishnanDATE: JUN2011SUBJECT: Opening Position
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Product Review: ONE44
ARTICLE SYNOPSIS ...One44 is a commodities trading
platform that gives buy and sell
recommendations for four very
active commodities: Standard & Poor's
500 and na s d a q minis, euro, and yen.
After downloading, just log in each time
you want to use On e44. Why just four
commodities? That's because On e44
is predicting where price will turn, and
some of that prediction requires trading
experience. That experience comes from
Nick Ehrenberg, a veteran of 30 years of
analysis provided to a select few of the
cm e floor traders. On e44 was created
to let a broad spectrum of traders see the...
AUTHOR: Dennis D. PetersonDATE: JUN2011SUBJECT: Product Review
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Product Review: The Wizard
ARTICLE SYNOPSIS ...The Wizard offers self-directed investors
an end-of-day investment decisionmaking and market timing system that
provides specific buy and sell points for
investments in four markets tracking
over 9,000 stocks, 900 exchange traded
funds (Et fs), 70 futures contracts, and 24
forex pairs. The entry and exit decisions
are based on key support and resistance
levels. The program also pinpoints highprobability trades in all these markets
based on the simple concept of following
the trend. Historical backtested and live
data for the market calls for each investment vehicle provid...
AUTHOR: Leslie N. MasonsonDATE: JUN2011SUBJECT: Product Review
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Q&A by Don Bright
ARTICLE SYNOPSIS ...END-OF-DAY CLOSE IMBALANCES
Mr. Bright, I attended one of your classes
last year and found it very helpful. One
of the things you taught was how to read
and respond to end-of-day market close
imbalances. If I recall, you said these
imbalances were put out twice during
the last half hour of trading. Is that still
the case? Have there been any changes
to your thought process regarding how
to treat them? --Edwin G.
Don, I want to thank you for your column
and your help on the various Internet
boards. You had posted at some point
that there had been major changes in the
...
AUTHOR: Don BrightDATE: JUN2011SUBJECT: Q&A
AUTHOR: Don BrightDATE: JUN2011
AUTHOR: Austin PassamonteDATE: JUN2011SUBJECT: Trading Techniques
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Top 10 Candles That Work
ARTICLE SYNOPSIS ...In my last article, I described 13 candlesticks that worked
best as reversal or continuation patterns. That means price
closed above the top of the candle pattern or below the
bottom of it, signaling a reversal or continuation not just
once, but reliably in thousands of cases. However, just because
a candle acts as a reversal 66% of the time doesn't mean that
price moves far beyond the candlestick boundaries.
This article discusses candles that perform best over time
-- that trend furthest -- but they may not be good reversal
or continuation candidates....
AUTHOR: Thomas BulkowskiDATE: JUN2011SUBJECT: Trends
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Traders' Resource by Data Services
ARTICLE SYNOPSIS ...The advent of the Internet has made available data services of all kinds maintained
by the vendor. This gives you, the buyer,
a myriad of possibilities when it comes to
data frequency, method, and delivery. It
is now a key issue to sort out, of course,
when you are investigating data services,
with more details to ponder. On the one
hand, all the data maintenance hassles are taken out of your
hands, as opposed to earlier times, when data cleansing was
a real issue; on the other, the vendor, in its maintenance, may
be too casual for your tastes in how it maintains the data y...
AUTHOR: Technical Analysis, Inc.DATE: JUN2011SUBJECT: Traders' Resource
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Traders' Tips
ARTICLE SYNOPSIS ...For this month's Traders' Tips, the focus is
Walid Khalil and David Steckler's article in
this issue, "The Price Zone Oscillator."
Code for the price zone oscillator for
MetaStock and TradeStation is already provided in Khalil and Steckler's article. Subscribers will also find the same code at the
Subscriber Area of our website, www.Traders.com. Presented here is an overview of possible implementations for other software.
Traders' Tips are provided to help the reader implement a selected technique from an article in this issue.
The entries are contributed by various software deve...
AUTHOR: Technical Analysis, Inc.DATE: JUN2011SUBJECT: Traders' Tips