Article Archive For
NOV2002
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A Master Systems And Pattern Tester by Leslie N. Masonson
ARTICLE SYNOPSIS ...A Master Systems And Pattern Tester by Leslie N. Masonson
Chris Manning has spent thousands of hours poring over
published systems, models, and charting patterns. Now he is a
widely recognized systems expert who regularly appears on
the CNBC and the Bloomberg Channel cable networks, and
speaks frequently at international investment seminars. Here
Leslie Masonson, who featured an interview with Manning in
his book Day Trading On The Edge, reveals this expert
trader's approach.
It wasn't until Chris Manning, who was a
strategic consultant for a Big Five
accounting firm, attended a popular
inve...
AUTHOR: Leslie N. MasonsonDATE: NOV2002
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Affine Geometry Of The Markets by Viktor Likhovidov
ARTICLE SYNOPSIS ...Affine Geometry Of The Markets by Viktor Likhovidov
Think the market doesn't have a memory?
Think again.
bout five years ago, I came
across an interesting
article concerning the
channeling behavior of
market charts. I don't
remember much about
the article anymore,
except for a method using "magic" parallel
lines that seemed promising. I decided to
try to derive useful trading signals from the
idea with some simple geometric
transformations.
PRICE CHANNELS
AND MARKET MEMORY
In a nutshell, the premise is based on the
following recommendation: When you find
a good channel on a price chart, do...
AUTHOR: Viktor LikhovidovDATE: NOV2002SUBJECT: Charting
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Books For Investors by Technical Analaysis
ARTICLE SYNOPSIS ...Books For Investors by Technical Analaysis
Essential Stock Picking
Strategies (220 pages,
$29.95 hardcover, 2002,
ISBN 0471400637), by
Daniel A. Strachman,
published by John Wiley &
Sons.
...and many more!...
AUTHOR: Technical Analysis, Inc.DATE: NOV2002SUBJECT: Books for Investors
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Books For Traders by Technical Analysis
ARTICLE SYNOPSIS ...Books For Traders by Technical Analysis
Dynamic Trading Indicators:
Winning With Value
Charts And Price Action
Profile (230 pages, $69.95
hardcover, 2002, ISBN
0471215570), by Mark W.
Helweg and David C.
Stendahl, published by
John Wiley & Sons.
...and many more!...
AUTHOR: Technical Analysis, Inc.DATE: NOV2002SUBJECT: Books for Traders
AUTHOR: David PennDATE: NOV2002SUBJECT: Charting The Market
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Developing A Model With Auction Market Theory by Donald L. Jones
ARTICLE SYNOPSIS ...Developing A Model With Auction Market Theory by Donald L. Jones
Here's an intraday trading model that uses auction
market theory.
A tenet of auction market theory is the
unpredictability of the markets. An auction
market model is built from market
knowledge without predicting the market's
path. The auction market model requires input from both the market and the trader. It is
dynamic, attuned to the market, theoretically sound,
and universal. It is also unique to the trader who is
exercising it. I will show you the logical steps for
developing a trading model, using the auction market
theor...
AUTHOR: Donald L. JonesDATE: NOV2002SUBJECT: Daytrading
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Eve & Eve Double Bottom by Thomas Bulkowski
ARTICLE SYNOPSIS ...Eve & Eve Double Bottom by Thomas Bulkowski
Here's a look at one of the four combinations
of double bottoms.
You may be familiar with double bottoms,
but have you ever heard of an Eve & Eve
double bottom? I hadn't heard of them
myself until a few years ago, when I was
researching my latest book, Trading
Classic Chart Patterns. After discovering
the Adam & Eve combinations of double
bottoms on HARDRightEdge.com, I expanded their findings
to include all four types: Eve & Eve, Adam & Adam, Eve & Adam, and Adam & Eve. I'll
discuss the latter three types in future articles.
This article will focu...
AUTHOR: Thomas BulkowskiDATE: NOV2002SUBJECT: Charting
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Explore Your Options by Tom Gentile
ARTICLE SYNOPSIS ...Explore Your Options by Tom Gentile
VOLATILITY INDEX
Tom, I have heard of using the volatility
index (VIX) as a way of predicting overall
market movement. Can you explain
this to me, along with some ideas on
how to trade the VIX in the markets? --
Fred M.
The VIX is a measure of nervousness
among traders. The VIX is a chartable
indicator, and when it drops to 20% or
lower, it means that the markets are
calm and have a positive
outlook for the future....
AUTHOR: Tom GentileDATE: NOV2002SUBJECT: Explore Your Options
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How Do You Make A Trading Decision by Simon Vine
ARTICLE SYNOPSIS ...How Do You Make A Trading Decision by Simon Vine
What goes into making a decision
about a trade?
Whenever you
make a trading
decision, you
base your choices
on particular outlooks
regarding market developments. Although a predicted
scenario at a specific moment
may seem very likely, events rarely
occur in the way or at the time we
expect. How does the passage of time
transform your outlook?
TIME FACTOR IN
RISK EVALUATION
Suppose you place a straight stick in
a pool of water. Once submerged, the
stick appears to be bent. The water
acts as a prism through which you
observe the familiar objec...
AUTHOR: Simon VineDATE: NOV2002SUBJECT: Trading Psychology
Intermarket Review by David Penn
AUTHOR: David PennDATE: NOV2002SUBJECT: Intermarket Review
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Interview: Teresa Lo Of trendVue.com by Jayanthi Gopalakrishnan
ARTICLE SYNOPSIS ...Interview: Teresa Lo Of trendVue.com by Jayanthi Gopalakrishnan
Teresa Lo, founder and chief market strategist of the
trendVUE.com educational financial website, worked in the
stock brokerage business for more than a decade at Canada's
largest independent investment dealer before she retired
from the industry in 1998. She is a discretionary trader who
uses classic technical trading methods and techniques. She
has extensive experience in trading senior and junior equities,
index/equity options, and futures.
With a background in life sciences, Lo earned a bachelor's
of arts degree in economics ...
AUTHOR: Jayanthi GopalakrishnanDATE: NOV2002SUBJECT: Interview
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Letters to S&C
ARTICLE SYNOPSIS ...Letters by Technical Analysis
WAITING FOR THE FED
Editor,
Can you clarify a point
in the article "Waiting
For The Fed" by David
Penn, which was published
in August 2002
issue of STOCKS &
COMMODITIES? Does Mark Boucher's
system keep out of stocks if the T-bill
rate is lower than the prior year? I got
confused in reading the description of
the system and the commentary.
GLENN BERGEVIN via e-mail
David Penn replies:
Thanks for writing. The monetary timing
model I mentioned is a rate of change
model. In other words, it doesn't matter
if the percentage change is up or down.
If the year-to-year...
AUTHOR: Technical Analysis, Inc.DATE: NOV2002SUBJECT: Letters To S&C
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Novice Traders' Notebook: The Eve & Eve Double Bottom Vs. The Double Bottom
ARTICLE SYNOPSIS ...Novice Traders' Notebook: The Eve & Eve Double Bottom Vs. The Double Bottom
There are different types of double bottoms, as Thomas
Bulkowski's article "Eve & Eve Double Bottoms," will
attest. The notable difference between the classic double
bottom and the Eve & Eve double bottom is that in the latter,
the two bottoms should be at least three weeks apart and
volume is typically higher on the left bottom. The basic
characteristics of the double bottom, however, do not change....
AUTHOR: Technical Analysis, Inc.DATE: NOV2002SUBJECT: Novice Traders' Notebook
Opening Position by Jayanthi Gopalakrishnan
AUTHOR: Jayanthi GopalakrishnanDATE: NOV2002SUBJECT: Opening Position
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Q&A by Don Bright
ARTICLE SYNOPSIS ...Q&A by Don Bright
MONEY MANAGEMENT OF
OPTION SPREADS
What are some money management tips
for credit and debit spreads? Specifically,
when should I get out when a spread goes
against me? -- Bob Maclaurin
When you have a pure option spread
in place, each option has a theoretical
delta (percent equivalent to shares of
stock; 100 delta = 100 shares of stock).
So when a spread starts to go against you,
you can do a few things. First, of course,
you can get rid of it. Second, you can
adjust your net delta position to near zero
(plus or minus the amount of risk you
want to take on the long or short...
AUTHOR: Don BrightDATE: NOV2002SUBJECT: Q&A
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Trade The Dow Minis by Jayanthi Gopalakrishnan
ARTICLE SYNOPSIS ...Trade The Dow Minis by Jayanthi Gopalakrishnan
Risky, yes. Worth a try? Definitely.
or those who find
comfort in trading
equities, the thought of
trading futures may be
intimidating. And who
wouldn't be nervous when competing against the pit traders,
who come across as most aggressive?
But the transition from trading stocks to
futures doesn't have to be intimidating.
Sure, you need more initial capital, and
there's more risk involved. But in reality,
trading futures is not so different from
trading equities. The same analytical
principles still apply. The real difference
lies in the contract...
AUTHOR: Jayanthi GopalakrishnanDATE: NOV2002SUBJECT: Basic Techniques
Traders' Resource: Hardware
AUTHOR: Technical Analysis, Inc.DATE: NOV2002SUBJECT: Traders' Resource
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Traders' Tips by Technical Analysis
ARTICLE SYNOPSIS ...Traders' Tips by Technical Analysis
TRADESTATION: AFFINE GEOMETRY
In "Affine Geometry Of The Markets" in this issue, author
Viktor Likhovidov describes how to calculate the projected
affine price given the start and end points of a trendline.
Here, we'll present the EasyLanguage code for an affine
price indicator based on Likhovidov's ideas. The way the
indicator is written, the start and end points of the trendlines
are passed in as inputs to the indicator, and the actual input
values used are shown in the chart. Note that each point is
specified by a date, a time, and a price. (Another wa...
AUTHOR: Technical Analysis, Inc.DATE: NOV2002SUBJECT: Traders' Tips
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Using The Fisher Transform by John F. Ehlers
ARTICLE SYNOPSIS ...Using The Fisher Transform by John F. Ehlers
Looking for better trading results? This
indicator shows you how to identify price
reversals in a timely manner.
he common assumption is that
prices have a Gaussian, or
normal, probability density
function (PDF). A Gaussian PDF is the
bell-shaped
curve you are probably familiar with,
where 68% of all samples fall
within one standard deviation
around the mean. Do
prices follow such a curve?
No, but many people think
so, and that mistaken assumption
is why many trading indicators
fail....
AUTHOR: John F. EhlersDATE: NOV2002
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Websites For Traders: 3DStockCharts.com by David Penn
ARTICLE SYNOPSIS ...Websites For Traders: 3DStockCharts.com by David Penn
3DSTOCKCHARTS.COM
At a time when the electronic communications
networksÝ (or ECNs) industry
seems to be in the midst of rapid consolidation,
the arrival of 3DStockCharts.com
makes perfect sense. 3DStockCharts.com
provides both two- and three-dimensional
charts and other market data in
graphic form for the integrated order
books of two recently consolidated
ECNs: Island (which was acquired by
Instinet) and ARCA (or Archipelago,
which merged with the REDIBook ECN
in 2001). If, as some have suggested, the
consolidation of the ECN industry wa...
AUTHOR: David PennDATE: NOV2002SUBJECT: Websites For Traders
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Websites For Traders: TheTechnicalTrader.com by Jayanthi Gopalakrishnan
ARTICLE SYNOPSIS ...Websites For Traders: TheTechnicalTrader.com by Jayanthi Gopalakrishnan
THETECHTRADER.COM
The first question that may go through
your head when you visit The Technical
Trader homepage is, "Just who is
Harry?" The name "Harry Boxer" will
probably not ring a bell, but he has had
more than 30 years' experience in technical
analysis. Based on this foundation,
Boxer has created a website where
subscribers can watch him trade in real
time for $5 a day after the 15-day trial
period. You need to provide a credit
card number to take advantage of the trial
period. The focus of the site is Boxer's
insi...
AUTHOR: Jayanthi GopalakrishnanDATE: NOV2002SUBJECT: Websites For Traders
Working Money: Connors' Undeniables And Candlestick Clarity by David Penn
AUTHOR: David PennDATE: NOV2002SUBJECT: Candlestick Corner
Working Money: How Reliable Are Candlesticks? by Giovanni Maiani
AUTHOR: Technical Analysis, Inc.DATE: NOV2002SUBJECT: Candlestick Corner
Working Money: The Early Chartists: Schabacker, Edwards, Magee by James Maccaro
AUTHOR: James MaccaroDATE: NOV2002SUBJECT: Money People
Working Money: To Short Or Not To Short by Neil A. O'Hara
AUTHOR: Neil A. O'HaraDATE: NOV2002SUBJECT: Novice Traders' Notebook