Article Archive For
MAY2002
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AskChart.com by Jayanthi Gopalakrishnan
ARTICLE SYNOPSIS ...AskChart.com by Jayanthi Gopalakrishnan
ASKCHART.COM
One look at AskChart's home page tells
you this is an information-packed site.
Not many sites give you an overall
picture of the market in such a condensed
fashion, but a visit to AskChart.com
will give you an idea within seconds of
which sectors and stocks are outperforming
or underperforming....
AUTHOR: Jayanthi GopalakrishnanDATE: MAY2002SUBJECT: Websites For Traders
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Books For Traders by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Books For Traders by Technical Analysis, Inc.
? Profitable Candlestick Trading: Pinpointing Market Opportunities To Maximize Profits, by Stephen W.
Bigalow
? Core Trading Tactics, by Oliver Velez
? Mutual Fund Investor's Guide 2002, by Kirk Kazanjian
? Trading Options Visually: What You Must Know To Trade Options On Futures, by Paul Forchione
? How To Choose Stocks That Will Outperform The Market 2002,
by Grace K. Morris
? Online Trader's Dictionary, by R.J. Shook
? Web Rules: How The Internet Is Changing The
Way Consumers Make Choices, by Tom Murphy
? Advanced Modeling In Finance Usin...
AUTHOR: Technical Analysis, Inc.DATE: MAY2002SUBJECT: Books For Traders
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Daytrading Stock Pairs by Mark Conway and Aaron Behle
ARTICLE SYNOPSIS ...Daytrading Stock Pairs by Mark Conway and Aaron Behle
Tired of trading Level II quotes and one-minute charts? Try a
market-neutral strategy.
It can take years of experience to discover one
unique insight to exploit that can consistently
pull money out of the stock market. Most
traders have a bias as to market direction and
position themselves accordingly; however,
market-neutral strategies are becoming
popular for those who are tired of trading on
the gerbil wheel of Level II quotes and one-minute charts.
Pairs trading is a market-neutral strategy where a long
position in one stock and a sh...
AUTHOR: Mark Conway and Aaron BehleDATE: MAY2002SUBJECT: Trading Techniques
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How Random Is The Dow by Tony Baker and William Arnold
ARTICLE SYNOPSIS ...How Random Is The Dow by Tony Baker and William Arnold
This study looks at the market fluctuations of the DJIA to
determine if there is any consistency in the markets.
One of the best-known, universally reliable
characteristics of the financial markets is their
tendency to fluctuate. In times of optimism or
pessimism, rising or falling interest rates,
inflation or deflation, these deviations from...
AUTHOR: Tony Baker and William ArnoldDATE: MAY2002SUBJECT: Theory
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Interview: John Bollinger Of Bollinger Bands Fame by Jayanthi Gopalakrishnan
ARTICLE SYNOPSIS ...Interview: John Bollinger Of Bollinger Bands Fame by Jayanthi Gopalakrishnan
Unlike many technicians who start out with degrees in
business, veteran analyst John Bollinger, the president and
founder of Bollinger Capital Management, started out with a
decidedly unmarket-like bent. He graduated from the School
of Visual Arts majoring in cinematography, and only afterward
started studying the market. Since then, though, he's become
one of the best-known market analysts in the field, with the
now-classic Bollinger Bands technique to his credit (which
has been integrated into most analytical softw...
AUTHOR: Jayanthi GopalakrishnanDATE: MAY2002SUBJECT: Interview
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Letters to S&C by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Letters to S&C by Technical Analysis, Inc.
POINT & FIGURE CHARTING ONLINE
Editor,
Regarding the letter in the January 2002
issue regarding point and figure
software, a good site for P&F is
PFscan.com. It's a UK company but
their software can also be used for the
US market. I hope this is of some help.
BILL THORNE, via e-mail...
AUTHOR: Technical Analysis, Inc.DATE: MAY2002SUBJECT: Letters To S&C
Opening Position by Jayanthi Gopalakrishnan
AUTHOR: Jayanthi GopalakrishnanDATE: MAY2002SUBJECT: Opening Position
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Plan To Win by Richard Ahrens
ARTICLE SYNOPSIS ...Plan To Win by Richard Ahrens
There are two kinds of traders: amateurs and professionals.
The amateurs supply the money. Which would you rather be?
It has been estimated that only 10% of
traders consistently make money. It has
also been estimated that only 10% of
traders have a clearly defined trading plan.
Coincidence? Not likely. In the same way
that a good builder must plan many
different aspects of his or her project before beginning
construction, a good trader must consider a variety of factors
before entering a trade. Failing to consider all the elements of
a trade may not lead to ruin...
AUTHOR: Richard AhrensDATE: MAY2002SUBJECT: Money Management
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Projected Fibonacci Targets by Mohab Nabil
ARTICLE SYNOPSIS ...Projected Fibonacci Targets by Mohab Nabil
Here's a new technique for determining
price targets after a breakout
from a previous price swing.
Fibonacci analysis,
which is employed
by practitioners of
various sciences such
as astronomy, mathematics, and architecture, also has a
role in projecting price targets of
financial securities. After working
with Fibonacci ratiosİ for several
years, I developed a new technique
for determining price targets after a
breakout (up or down) from previous
price swings, which I call projected
Fibonacci targets (PFT)....
AUTHOR: Mohab NabilDATE: MAY2002SUBJECT: Charting
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Q&A by Don Bright
ARTICLE SYNOPSIS ...Q&A by Don Bright
MARKET ORDERS
I rarely trade listed issues. But I feel
that exposure to this marketplace would
be advantageous to my trading over the
long term. Perhaps you could shed some
light on just how the system works. I
know the uptick rules -- it is the mystery
of the book and its depth that confound
me, I think. I used limit orders the last
time I tried to short a listed issue (AXP).
It was suggested to me then that market
orders were the way to go when going
short. Any insights would be appreciated
-- Greg...
AUTHOR: Don BrightDATE: MAY2002SUBJECT: Bright Q&A 0205
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Strategies For Single-Stock Futures by Don Bright
ARTICLE SYNOPSIS ...Strategies For Single-Stock Futures by Don Bright
With single-stock futures ready to make an
entry into the markets, you need to be armed
with the right strategies.
I 'm often asked what the traits
are that successful stock traders
have in common, and although
there are many, what I
find binds all good traders together is adaptability. We all thrived through
the euphoria of the dotcom phase, and the
Nasdaq's meteoric rise past common sense
into obscenity. Many a genius was behind a
computer when the buy-and-hold mentality
permeated the shell of proprietary trading.
Television analysts and on...
AUTHOR: Don BrightDATE: MAY2002SUBJECT: Real World
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Taming The Volatility Beast by Kevin Lund
ARTICLE SYNOPSIS ...Taming The Volatility Beast by Kevin Lund
Take advantage of volatility and play those options.
If you've traded options for any length of
time, you've probably experienced the
following scenario: You spot a stock that
seems to have some good swings. After
watching it drop for a few days, your
technical analysis suggests the selling was
simply profit-taking, and you feel the stock will move up
soon. So you buy some call options. Over the next couple of
days, however, as you watch your stock climb modestly, the
value of your options drops, probably because you purchased
expensive options.
Thi...
AUTHOR: Kevin LundDATE: MAY2002SUBJECT: Options
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The Center Of Gravity Oscillator by John F. Ehlers
ARTICLE SYNOPSIS ...The Center Of Gravity Oscillator by John F. Ehlers
Here's an indicator that identifies every major turning
point without much lag.
This new oscillator is unique in that it is
smoothed and has essentially zero lag. The
smoothing enables clear identification of
turning points, and the zero lag aspect
means action can be taken early in the
move. This oscillator is the serendipitous result of
my research into adaptive filters. While the filters
have not yet produced the results I am seeking, this
oscillator has substantial advantages over conventional
oscillators used in technical analysis....
AUTHOR: John F. EhlersDATE: MAY2002SUBJECT: Indicators
Traders' Resource: Exchanges
AUTHOR: Technical Analysis, Inc.DATE: MAY2002SUBJECT: Traders' Resource
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Traders' Tips by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Traders' Tips by Technical Analysis, Inc.
METASTOCK: Projected Fibonacci targets
In "Projected Fibonacci Targets" in this issue, Mohab Nabil
introduces Fibonacci studies, which may be new to some
readers. In MetaStock, it is very easy to apply Fibonacci
retracements to a chart.
In MetaStock, bring up a chart you want to analyze. With
your cursor, you can simply click on the Fibonacci
retracements icon or use the Insert menu and select Fibonacci,
then choose one of our four studies. It will then apply the
study to your chart. The defaults of 23.6, 38.2, 50, and 61.8%
will automatically appea...
AUTHOR: Technical Analysis, Inc.DATE: MAY2002SUBJECT: Traders' Tips
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Websites For Traders: Kitco.com by Bruce R. Faber
ARTICLE SYNOPSIS ...Websites For Traders: Kitco.com by Bruce R. Faber
KITCO.COM
All that glitters isn't gold, but Kitco.com
definitely is. If you want information on
gold or most other precious metals,
Kitco.com is a good place to start. It
would be nice if there were sites with as
much pertinent information on other
tradable commodities as Kitco.com has
about gold....
AUTHOR: Bruce R. FaberDATE: MAY2002SUBJECT: Websites For Traders
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Websites For Traders: OptionsXpress.com by Jayanthi Gopalakrishnan
ARTICLE SYNOPSIS ...Websites For Traders: OptionsXpress.com by Jayanthi Gopalakrishnan
OPTIONSXPRESS.COM
With online trading as popular as it is,
many traders may find it tempting to
place trades without doing their
homework. This is partly because of the
lack of websites that give you the
opportunity to learn about trading, analyze
your strategies, and place trades.
Fortunately, the founders of options-
Xpress.com realized that options traders
needed more than what traditional online
brokers offer. So they set out to create a
site that would give the options trader the
ability to analyze prospective trades
tho...
AUTHOR: Jayanthi GopalakrishnanDATE: MAY2002SUBJECT: Websites For Traders
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Working Money: Candlestick Profits by Stephen W. Bigalow
ARTICLE SYNOPSIS ...Working Money: Candlestick Profits by Stephen W. Bigalow
A charting technique
from long ago can help
you make a tidy profit.
Although candlestick
charting has been a
part of the US trading Acommunity for decades, only
recently has interest picked up
in this technique for investment
purposes. The investor who
takes the amount of time and
effort needed to master
candlesticks can reap handsome
profits. Candlestick analysis can
produce remarkably accurate
results, and using it may help
you maximize profits while
reducing risk exposure....
AUTHOR: Stephen W. BigalowDATE: MAY2002SUBJECT: Candlestick Corner
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Working Money: Confirming Averages by David Penn
ARTICLE SYNOPSIS ...Working Money: Confirming Averages by David Penn DOW THEORY
What happens when the Dow industrials
go where the transports fear to tread?
One of the original tenets of Dow theory, and
one of the most misunderstood, is the notion
that the averages must confirm each other.
Generally speaking, this refers to the rising
and falling price action of two of the three
main Dow Jones averages, the Dow Jones
Transportation Average (DJTA) and the Dow Jones Industrial
Average (DJIA). These averages have existed since their original inception by Charles Dow, though the actual components of
the averages ha...
AUTHOR: David PennDATE: MAY2002SUBJECT: Dow Theory
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Working Money: Trendlines And Consolidations by Dennis D. Peterson
ARTICLE SYNOPSIS ...Working Money: Trendlines And Consolidations by Dennis D. Peterson
Here's a technique that produces more accurate
trendlines.
Drawing trendlines correctly is more
challenging than many traders realize. The
rule is that the more peaks and valleys you
connect with a straight line, the more valid
the line is in defining a trend. But simply
connecting a set of the more prominent peaks or valleys can cause you to miss consolidations, since
the smaller peaks and valleys that are skipped over could be
defining a consolidation pattern. Consolidation patterns are
important because they can be used to...
AUTHOR: Dennis D. PetersonDATE: MAY2002SUBJECT: The Chartist
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Working Money: Trends And The 4% Solution by David Penn
ARTICLE SYNOPSIS ...Working Money: Trends And The 4% Solution by David Penn
Can you improve your odds of buying
bottoms and selling tops? Use both
trend-following and momentum-shift
approaches to learn when to hold 'em
and when to fold 'em.
From a technical perspective, there
are two general schools of thought
when it comes to buying and
selling stock. The first is that a
position should be entered only when the
stock has begun a trend (that is, a series of
higher highs and higher lows -- an uptrend
-- or a series of lower highs and lower lows
-- a downtrend). This, the trend-following
school, believes that the ea...
AUTHOR: David PennDATE: MAY2002SUBJECT: Dow Theory