Article Archive For
MAR2011
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Books For Traders
ARTICLE SYNOPSIS ...Behavioural Technical Analysis (201
p a g e s , £ 3 4 . 9 9
paperback,
2 0 1 0 , I S B N
978-1-905641-
41-3) by Paul V.
Azzopardi, publ i s h e d b y H a rr i m a n H o u s e ,
Ltd. At its core,
trading is a decision-making
p r o c e s s b a s e d
on the analysis of data and a judgment
on risk and uncertainty. When humans
make trading decisions their emotions,
physiology, and the natural qualities of
the brain automatically play a role.
To better understand the financial markets we
need to better understand the behavior of
individual investors within...
AUTHOR: Technical Analysis, Inc.DATE: MAR2011SUBJECT: Books For Traders
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Channels In The Forex Markets by Gareth Burgess
ARTICLE SYNOPSIS ...The foreign exchange markets are an
arena of competing forces constantly in conflict
with each other. The markets are torn
apart by worry, uncertainty, doubt, fear and
greed, not to mention profit. As a
consequence, many traders get shaken out of their
positions by a short-term wave of
opposing news. Even when a position is showing a
profit, there is never a certainty that
the market will continue in the anticipated
direction and there is almost the same
sense of relief when getting out of a good position
as in liquidating a bad one. As a
result, many traders tend to p...
AUTHOR: Gareth BurgessDATE: MAR2011SUBJECT: Forex Focus
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Empowering Traders With The Russell 2000 by Gail Mercer
ARTICLE SYNOPSIS ...Ever thought of trading the Russell 2000?
Here's how retail traders could benefit from
trading this index.
New traders are drawn to the emini Standard
& Poor's 500 like bees to honey. Go
into any live trading room and chances are
that the moderators are teaching traders
to trade the emini S&P 500 because it has
more liquidity than any other market. In
Figure 1 the average annual
volume is compared between
the following emini indexes:
emini S&P 500, Dow Jones
Industrial Average (Dji a), Na sDa q 100,
S&P MidCap 400,
and the Russell 2000. It would
be a logical assu...
AUTHOR: Gail MercerDATE: MAR2011SUBJECT: Trading Techniques
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Explore Your Options by Tom Gentile
ARTICLE SYNOPSIS ...A smarter Call to sell?
With a long call, what would be the best
time to sell? I know that directionally, the
higher a stock goes up the more the call
stands to profit as it goes further in-themoney.
But if a call went from out-of-the
money toward being at-the-money, doesn't
it put the option at more risk because of
time decay?...
AUTHOR: Tom GentileDATE: MAR2011SUBJECT: Explore Your Options
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Futures For You by Carley Garner
ARTICLE SYNOPSIS ...WHAT DO GAP TRADERS WANT?
What exactly are gap traders looking
for?
For those unfamiliar with gap trading,
a price gap occurs when there is a significant
difference in the closing price of the
previous session relative to the opening
price of the following session. A gap is
described by its direction; for instance,
you might hear traders refer to a gap with
an increase in price as a "gap up" or a
"gap higher." A sharp decrease in price
from the previous session close is known
as a "gap down" or a "gap lower."
Price gaps used to be common in
commodities due to abbrev...
AUTHOR: Carley GarnerDATE: MAR2011SUBJECT: Futures For You
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Letters To S&C
ARTICLE SYNOPSIS ...The Clear meThod
Editor,
It was with
great interest that I read Ron Black's article in the
September 2010 issue of your magazine,
"Getting Clear With Short-Term
Swings." The concept is simple and
signals are easy to follow (the best
starting point for any indicator!).
In the article, the author provided
the EasyLanguage code for displaying
the swing line. But since many readers
want to implement indicators using a
spreadsheet, I decided to translate the
Clear method to Excel.
I am providing a spreadsheet with
the Clear method applied to the S&P
500 ("Clear Sp x...
AUTHOR: Technical Analysis, Inc.DATE: MAR2011SUBJECT: Letters To S&C
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Opening Position by Jayanthi Gopalakrishnan
ARTICLE SYNOPSIS ...As Ken Calhoun says in the St o c kS & co m m o d i t i eS interview of the month
(which starts on page 46), you have to be slow to get in but quick to get
out. You will get an idea of how much time you need to commit to the markets if you
really want to understand their behavior. But even if you understand the markets,
you have to have the patience to wait for that right setup to appear on your charts
before you hit that enter button. That price setup will have to be one where you
expect your returns to be greater than the risk you take. Stephen Massel's article,
"What Can You E...
AUTHOR: Jayanthi GopalakrishnanDATE: MAR2011SUBJECT: Opening Position
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Product Review: MarketGuage: Big View by Dennis D. Peterson
ARTICLE SYNOPSIS ...Big View is part of an ensemble of
trading information from MarketGauge,
available as a standalone
package for $49/month. The last review
of MarketGauge covered the Swing Trading
course and the follow-on Mastery
Program. The Mastery Program has a
menu item called Big View, but
MarketGauge actually refers to that item as
Little Big View. To sort this out, let's
take a quick look at Little Big View and
then spend the bulk of the discussion on
Big View....
AUTHOR: Dennis D. PetersonDATE: MAR2011SUBJECT: Product Review
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Product Review: NASDAQ OMX Portfolio Manager for the iPad by Wallace Wang
ARTICLE SYNOPSIS ...Real-time data is crucial for accurate
and timely trading, but
in the past, to get real-time
data you had to pay a monthly fee. Now,
however, if you have either a wi-fi or 3G
Internet connection and an iPad, you can
retrieve real-time data using the Na s d a q
Om x Portfolio Manager app. The initial
Portfolio Manager app screen displays
a list of stocks on the left side of the
screen, which you can divide into three
categories: a watchlist of stocks you
want to track, a portfolio list of stocks
you're currently trading, and a search
list that lets you type in a stock...
AUTHOR: Wallace WangDATE: MAR2011SUBJECT: Product Review
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Q&A by Don Bright
ARTICLE SYNOPSIS ...LIQUIDITY, REST, AND ROUTING
I see you have been posting about your
firm's new approach to order routing that
is saving or making your traders a lot
of money. I remember you used to say
"take liquidity on the NySe (or NaSd a q)
and rest or leave your orders on ar c a."
Could you explain the differences you
see now? Could you start by explaining
"take liquidity" and "rest" orders? Does
any of this routing make that much of a
difference? My broker advises me to use
only market orders anyway, so how does
this affect me?
Wow, a lot of good and timely questions.
First o...
AUTHOR: Don BrightDATE: MAR2011SUBJECT: Q&A
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Three-Bar Inside Bar Pattern by Johnan Prathap
ARTICLE SYNOPSIS ...This trading strategy uses an inside bar as a three-bar pattern
for long and short positions. Find out how it performed on
gold, silver, and crude oil contracts.
Whether you look at an intraday, daily, weekly, or monthly
chart you will, without a doubt, see many inside bars.
They appear in uptrends, downtrends, and sideways
markets. Typically, most traders think of an inside bar
as a two-bar pattern, but I have found successful trades
using an inside bar pattern as a three-bar pattern for both long
and short signals. An inside bar accompanied by higher closes
indicates a s...
AUTHOR: Johnan PrathapDATE: MAR2011SUBJECT: Trading Systems
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Traders' Tips
ARTICLE SYNOPSIS ...For this month's Traders' Tips, the focus is
Johnan Prathap's article in this issue,
"ThreeBar Inside Bar Pattern."
Code for TradeStation is already provided
in Prathap'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 developers or programmers for
software that is capable of cu...
AUTHOR: Technical Analysis, Inc.DATE: MAR2011SUBJECT: Traders' Tips
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Traders' Resource: Online Services
ARTICLE SYNOPSIS ...You can find a wealth of information on
the Internet for nearly any subject imaginable,
including investing, trading, and
the financial markets. You can even find
a good amount on technical analysis.
Each month in St o c kS & co m m o d it i eS'
Traders' Resource, we present a
listing for different categories of products
and services related to trading, all to aid our readers in their
pursuit of trading. This month, we focus on the topic of online
trading services....
AUTHOR: Technical Analysis, Inc.DATE: MAR2011SUBJECT: Traders' Resource
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Trading Companies With Split Personalities by Anthony Trongone
ARTICLE SYNOPSIS ...When the regular trading session gains
momentum, is the market more likely to produce
additional gains? Here's how the companies
in the QQ Q Q perform during regular trading
sessions versus overnight trading sessions.
Although seven years have passed since then,
the trades based on my two 2004 articles about
the advantages of taking a long position in the
overnight session are still delivering attractive
profits. In these articles, I made a case for splitting
the trading day into two separate sessions. By
trading in the hours of darkness in the three years I
investigated...
AUTHOR: Anthony Trongone, Ph.D., CFP, CTADATE: MAR2011SUBJECT: Trading Techniques
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Trading Momentum With Ken Calhoun
ARTICLE SYNOPSIS ...Ken Calhoun, president of Daytrading University and StockTradingSuccess.com,
has provided online training to active traders from more than 32 countries since
1999. He is an internationally published trader who's earned industry awards
for his professional trading systems and has trained more than 31,000 people
in more than 147 companies worldwide. Calhoun trains traders on how to trade
using one-minute candle charts, sector breakouts, gaps and market indexes using
advanced tape reading, and real-time candlestick trading techniques by using live
market examples.
A former corpora...
AUTHOR: J. Gopalakrishnan and B. FaberDATE: MAR2011SUBJECT: Interview
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What Can You Expect, Mathematically? by Stephen Massel
ARTICLE SYNOPSIS ...Here's a look at how mathematical expectation allows for an
apples-to-apples comparison of trading systems or strategies
regardless of type or style, as well as allowing the tracking of
your own trading record.
A huge number of different trading systems and strategies
are available in the market today, all with their own
particular focus, style, time frame, and risk. The type
of trading you engage in is a very personal matter and
depends on many factors. The things that need to be
considered include the market you are interested in; the
amount of time you have to do th...
AUTHOR: Stephen MasselDATE: MAR2011SUBJECT: Money Management
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What You Don't Know About Candlesticks by Thomas N. Bulkowski
ARTICLE SYNOPSIS ...In writing my latest book, Encyclopedia Of Candlestick
Charts, I made some startling discoveries. I used more
than 4.7 million candle lines (price bars) for the research
with data going back as far as the 1980s in hundreds of stocks,
but not all stocks covered the entire period.
Re v eRs a l s w i n
One famous technical analyst wrote that continuations perform better than reversals. That would make sense, since it is
easier for price to swim with the tide than against it. There is
just one problem: That's wrong. I tested this on thousands of
chart patterns and candlesticks wi...
AUTHOR: Thomas BulkowskiDATE: MAR2011SUBJECT: Charting