Article Archive For
MAY2003
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Books For Traders by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Books For Traders by Technical Analysis, Inc.
? Winning With The Market
? 12 Simple Technical Indicators That Really Work
? Crash Profits: Make Money When Stocks Sink And Soar!
? Currency Trading: How To Access And
Trade the World's Biggest Market
? The Handbook Of Risk
? Investment Philosophies: Successful Strategies
And The Investors Who Made Them Work
? Monte Carlo Risk Analysis And Due Diligence Of New
Business Ventures
? The Psychology Of Trading: Tools And Techniques For Minding
The Markets
? Single Stock Futures: An Investor's Guide
? When Supertraders
Meet Kryptonite
? Co...
AUTHOR: Technical Analysis, Inc.DATE: MAY2003SUBJECT: Books For Traders
AUTHOR: David PennDATE: MAY2003SUBJECT: Charting The Market
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Choosing The Right Time Frame by Hal Masover
ARTICLE SYNOPSIS ...Choosing The Right Time Frame by Hal Masover
Using multiple time frames has many benefits, but which
ones work for you?
A friend once described his perspective on time
frames: "People have different definitions of
?long term,' ?short term,' and ?intermediate term.'
For me, ?short term' is when I get on the phone
with my broker and get in and out of a trade before
I hang up. ?Intermediate term' is when I get into a
trade, hang up, then call right back and get out. A long-term
trade might be when I get into a trade, get off the phone, go to
the bathroom, come back, call the broker, and get out...
AUTHOR: Hal MasoverDATE: MAY2003SUBJECT: Real World
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Explore Your Options by Tom Gentile
ARTICLE SYNOPSIS ...Explore Your Options by Tom Gentile
STOCK OPTIONS AND SPLITS
I was wondering what happens to stock
options when the underlying stock splits.
Does the call's strike price go down?
An example would really help me out --
James Kramer
When the underlying issue splits, so
do the options. For example, if you own
a January 50 call on stock XYZ when
the stock splits 2-for-1, you will own
two January 25 calls post-split. Sometimes,
stocks will have a fractional split,
such as a 3-for-2, in which case you will
own three options for every two you
owned prior to the split. A word of
caution when trading...
AUTHOR: Tom GentileDATE: MAY2003SUBJECT: Explore Your Options
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Interview: Ian Gordon by Jayanthi Gopalakrishnan
ARTICLE SYNOPSIS ...Interview: Ian Gordon by Jayanthi Gopalakrishnan
If this recession seems like it's going on forever, Ian Gordon of The
Long Wave Analyst newsletter will give you good news and bad news.
First, the good news: It won't last forever. The bad news: It's going
to hurt a lot more before it gets better. The good news: More likely than
not it will only happen once in your lifetime. The bad news: The same
goes for that phenomenal bull market that just passed. And Gordon
has more to say, including warnings about the probable collapse of
the worldwide economy.
Ian Gordon was educated in England. He att...
AUTHOR: Jayanthi GopalakrishnanDATE: MAY2003SUBJECT: Interview
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Letters To S&C by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Letters To S&C by Technical Anaylsis, Inc.
DAYTRADING QQQ
Editor,
I found the article
"Daytrading QQQ" in
the March 2003 STOCKS
& COMMODITIES to be
quite misleading.
In the latter part of the article, author
Misha Sarkovich suggests taking advantage
of the low probability of the
QQQ falling outside a daily price range
of +/- 2.5% from the open. For the
+2.5% case, the probability is stated to
be approximately 30%, which I confirmed
with my own testing. However,
the basis for the daily high technique is
described in the false statement: "If the
prices increase 2.5% from the open,
there is a ...
AUTHOR: Technical Analysis, Inc.DATE: MAY2003SUBJECT: Letters To S&C
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Making Sense Of Fractals by Erik Long
ARTICLE SYNOPSIS ...Making Sense Of Fractals by Erik Long
What is chaos? Here's a tool you can use
to trade on the cutting edge of chaos and
fractal theory.
haos is evident just about
everywhere: in lightning,
weather patterns, earthquakes,
and financial markets,
to name only a few. It
may seem to appear in a random fashion, but it doesn't. In a nutshell,
chaos is a nonlinear, dynamic system
that appears to be random but actually
is a higher form of order.
When you are studying the markets,
complexity is the point at which the transition
to chaos takes place. That should be
the focus of your interest. Order an...
AUTHOR: Erik LongDATE: MAY2003SUBJECT: FRACTAL FINANCE
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Novice Trader's Notebook by Amy Wu
ARTICLE SYNOPSIS ...Novice Trader's Notebook by Amy Wu
ON-BALANCE VOLUME
First developed by Joe Granville and published in
his text New Strategy Of Daily Stock Market Timing
For Maximum Profits, on-balance volume (OBV) is
a momentum indicator that relates volume to price
change. Specifically, the on-balance volume keeps
tabs on the running total of volume that is flowing in
and out of a security. For instance, if the price of a
security closes higher than the close of the previous
day, it's up volume. Likewise, when the security's
price closes lower than the previous day, it's down
volume....
AUTHOR: Amy WuDATE: MAY2003SUBJECT: Novice Traders' Notebook
Opening Position by Jayanthi Gopalakrishnan
AUTHOR: Jayanthi GopalakrishnanDATE: MAY2003SUBJECT: Opening Position
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Q&A by Don Bright
ARTICLE SYNOPSIS ...Q&A by Don Bright
FILLING ORDERS
I have found your Q&A column to be the
most helpful feature of STOCKS & COMMODITIES
since I subscribed, and I look
forward to it every month. Hopefully
with your experience and knowledge
you will be able to answer my question.
I placed a short sale order of 400
shares of HDI five minutes into the open
(9:35:33) on October 3, 2002, with my
Internet broker. It was a limit order at
47.63. At 9:36:05 the bid-ask was 47.50?
47.71, last trade at 47.61. Shouldn't my
short order of 47.63 show up? (I use
eSignal and refer to time and sales data.)...CONTINUDED...
AUTHOR: Don BrightDATE: MAY2003SUBJECT: Q&A
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Time And Money Charts by Stuart Belknap, Ph.D.
ARTICLE SYNOPSIS ...Time And Money Charts by Stuart Belknap, Ph.D.
Interested in a universal price display? This might be
the ticket.
Whether you use indicators, automated
setup and signal rules, or any other
method, before opening or closing
positions you probably read charts
to identify patterns, interpret indicators, and apply line studies. Hence, your price display
should be as helpful as possible. Your charts should
clarify the development and repetition of patterns,
cycles, and trends. They should accurately display
relative price moves, gains, and losses. Most important,
your charts should provide a func...
AUTHOR: Stuart Belknap, Ph.D.DATE: MAY2003SUBJECT: Cycles
Traders' Resource: Traders' Advisory Services
AUTHOR: Technical Analysis, Inc.DATE: MAY2003SUBJECT: Traders' Resource
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Traders' Tips by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...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 some of the articles in this issue.
Internet users will also find these and most previous Traders'
Tips at our website at www.Traders.com. To locate the various
tips, use our site's search engine or click on the STOCKS &
COMMODITIES magazine icon on the left-hand side of our
homepage, then scroll down to the "This month in S&C" section
on the left-hand side and...
AUTHOR: Technical Analysis, Inc.DATE: MAY2003SUBJECT: Traders' Tips
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Uncommon Chart Patterns by Thomas Bulkowski
ARTICLE SYNOPSIS ...Uncommon Chart Patterns by Thomas Bulkowski
Some bullish chart patterns are rare,
and some are simply not well known.
Read this to find out about both.
A few months ago, I received
e-mail from
someone asking about
identification techniques
for chart patterns.
I suggested the e-mailer could buy one of my books,
but short of a brain transplant, I could
do little else. This article addresses
the identification problem by highlighting
guidelines for some lesserknown
bullish chart patterns.
BROADENING FORMATIONS,
RIGHT-ANGLED
AND DESCENDING
In Figure 1 you see a right-angled,
descending, broade...
AUTHOR: Thomas BulkowskiDATE: MAY2003SUBJECT: Charting
WM: Most Of What You Need To Know About Technical... by Matt Blackman
AUTHOR: MATT BLACKMANDATE: MAY2003SUBJECT: Trader's Notebook
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Websites For Traders: ChartPatterns.com by Jayanthi Gopalakrishnan
ARTICLE SYNOPSIS ...Websites For Traders: ChartPatterns.com by Jayanthi Gopalakrishnan
CHARTPATTERNS.COM
The URL itself sends visions of triangles,
flags, wedges, rectangles, and head &
shoulder patterns dancing through your
head. But do you really know what
these patterns mean and how you can
use them for trading? If you don't, or if
you are simply curious to learn more
about them, Kevin Matras's site is a
place where you can find plenty of information.
Not all patterns are covered on this
site. It's mainly focused on symmetrical
triangles, ascending triangles, descending
triangles, head & shoulders,
wedges, ...
AUTHOR: Jayanthi GopalakrishnanDATE: MAY2003SUBJECT: Websites For Traders
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Websites For Traders: FinancialSense.com by David Penn
ARTICLE SYNOPSIS ...Websites For Traders: FinancialSense.com by David Penn
FINANCIALSENSE.COM
Who is Jim Puplava?
Among other things, Puplava is the
man behind Financial Sense Online, a
website that serves as a gateway to
Puplava's investment advisory and
money management firm, Puplava Financial
Services. The site also features
his talk show, Financial Sense Newshour,
and a sizable set of essays, articles, and
interviews by and about some of the
most "outside the box" thinkers and writers
on economics and finance today.
Robert Prechter of Elliott Wave International,
Doug Noland of Prudent Bear,
and Marc Faber ...
AUTHOR: David PennDATE: MAY2003SUBJECT: Websites For Traders
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Which Strike Is Best? by Ihor Vysotskyy
ARTICLE SYNOPSIS ...Which Strike Is Best? by Ihor Vysotskyy
Here's a method for selecting advantageous options.
Purchasing call options is often considered to
be the simplest strategy when it comes to
trading options. The method is based on the
assumption that when the price of the underlying
financial instrument goes up, the call
option will also rise, generating a profit.
However, this is not always the case. Most beginners in the
options market start out by purchasing a call option, but are
disappointed when they discover they have been misled into
believing no risk is involved. Instead of profits, they exp...
AUTHOR: Ihor VysotskyyDATE: MAY2003SUBJECT: Options
Working Money: Elliott Waves In C by David Penn
AUTHOR: David PennDATE: MAY2003SUBJECT: Working Money
Working Money: Using Relative Strength by Steve Watkins
AUTHOR: Steve WatkinsDATE: MAY2003SUBJECT: Novice Traders' Notebook
Working Money: Working In An Exponential World by Brian Bell
AUTHOR: Brian BellDATE: MAY2003SUBJECT: Charting