STOCKS & COMMODITIES magazine. The Traders' Magazine

Article Archive For NOV2003

  • Books For Traders by Technical Analysis, Inc.

    ARTICLE SYNOPSIS ...Books For Traders by Technical Analysis, Inc. ? An Introduction To Technical Analysis ? Candlesticks, Fibonacci, And Chart Pattern Trading Tools ? Hidden Financial Risk: Understanding Off- Balance Sheet Accounting ? High Performance Options Trading: Option Volatility & Pricing Strategies ? Investment Visionaries: Lessons In Creating Wealth From The World's Greatest Risk Takers ? Option Trading Indicators And Patterns For Increasing Profits ? Trading In The Stillness...

  • Bullish Consensus by David Penn

    ARTICLE SYNOPSIS ...Bullish Consensus by David Penn This enduring sentiment indicator was designed specifically for the futures markets. "Paradox is one of the deepest and most important secrets of life, and ? irony is the punishment for not having understood that." --James Dines, How Investors Can Make Money Using Mass Psychology During times of confusion in the markets, studies of market sentiment tend to become popular. This is probably unfortunate. It is the absence of a clear, distinct trend that forces uncertain market players to look away from their indicators and trendlines, their oscillators, and their...

  • Casino Trading by Phil Abel

    ARTICLE SYNOPSIS ...Casino Trading by Phil Abel The Monte Carlo simulation, a statistical technique used to model the expected outcomes of a random series of events such as a casino game, also has valuable applications in the evaluation of a systematic trading program. When you think of a successful trader, what comes to mind? Chances are you conjure up the image of a financial sage like Warren Buffett or George Soros, someone who can seemingly gaze into a crystal ball and pick out a winner. Or maybe you picture a commodity pit trader, hardened and wizened from days spent in battle on the exchange floor. Now w...

  • Charting The Markets by David Penn

    ARTICLE SYNOPSIS ...Charting The Markets by David Penn MOMENTUM Momentum? The Big Mo? Is there anything in the physical world more exciting than momentum? If you're going slowly and you gain momentum, you're going faster. If you're already going fast and you gain momentum, watch out! Speed may be king, but momentum is what propels unknown political candidates into front-runner status, what makes a team ending the regular season on a 10-game winning streak a real terror when the playoffs start. If it is true, as Madison Avenue would have it, that things go better with Coke, then things go great with Mo....

  • Does The Market Have A Personality? by James Kellndorfer

    ARTICLE SYNOPSIS ...Does The Market Have A Personality? by James Kellndorfer Here's a look at how you can convert the NYSE's tick into a sentiment indicator using statistical analysis. Along with the other US stock exchanges, the New York Stock Exchange (NYSE) provides investors with an internal statistic of the stock market called the tick. This statistic summarizes the number of stocks that are increasing in price versus those that are decreasing in price. But what does this really mean and how can you use this information in a meaningful way? THE TICK Generally, many view the tick as the amount of buying o...

  • Explore Your Options by Tom Gentile

    ARTICLE SYNOPSIS ...Explore Your Options by Tom Gentile VOLATILITY How do I figure out which strategies are best to implement when the volatility of the market changes so drastically from one season to the next? Fortunately for option traders, volatility is your friend, provided you understand just what strategies to use. Though the duration of each trend can be difficult to predict, periods of high or low volatility can be assessed by looking at a chart of the VIX (the volatility index from the Chicago Board Options Exchange) at any given time on most charting programs. The VIX has traded in an average range ...

  • Finding Out About Fractals by Clem Chambers

    ARTICLE SYNOPSIS ...Finding Out About Fractals by Clem Chambers How are fractals related to the financial markets? Fractals hold a powerful mystique, but few truly understand what a fractal is and how it relates to the market. To most, a fractal is a fantastically beautiful graph with curly edges that seems to have a hypnotic grip on the viewer. Expressed as images, fractals have an almost-magical charm, while the word itself, coined and popularized by scientist and mathematician Benoit Mandelbrot, has taken on an almost incantation-like property, as though it were a synonym for "abracadabra." You don't have to...

  • Interview: Trading Futures With Charles LeBeau by Jayanthi Gopalakrishnan

    ARTICLE SYNOPSIS ...Interview: Trading Futures With Charles LeBeau by Jayanthi Gopalakrishnan Charles LeBeau, who has been trading stocks and futures for more than 40 years (20 years of which was with E.F. Hutton & Co.), is a noted author, lecturer, and system developer and the co-author of Technical Analysis Of The Futures Markets, which is considered a classic of technical analysis. Currently, LeBeau is director of trading for Tan LeBeau LLC (www.tanlebeau.com), where he supervises the trading for a small hedge fund. He also operates an educational website for stock and futures traders at www.traderclub.com. S...

  • Letters To S&C by Technical Analysis, Inc.

    ARTICLE SYNOPSIS ...Letters To S&C by Technical Analysis, Inc. CODE AND TRADERS' TIPS Editor, I read S&C every month. It's a good magazine with good content and presentation. The only problem I run into is with the Traders' Tips section of your website. When you include the code for, say, TradeStation or MetaStock in an article, the problem is you don't post it to the Traders' Tips section at your website -- the tip simply refers us back to the article. ...continuded...

Opening Position by Jayanthi Gopalakrishnan

  • Q&A by Don Bright

    ARTICLE SYNOPSIS ...Q&A by Don Bright TRADING AT THE CLOSE My interest was piqued after reading your response in the July 2003 S&C detailing the REDIPlus order imbalances and how they can be used to trade at the close. Could you please go into a little more detail on how that works? How can I take advantage of those orders, since they are market-on-close/limiton- close? Aren't these orders executed too late for a nonprofessional trader to utilize for a quick scalp›? Thanks for your help....

  • The CCI Trade by Thomas Bulkowski

    ARTICLE SYNOPSIS ...The CCI Trade by Thomas Bulkowski It's not when you buy but when you sell that counts. These two trades used the commodity channel index as a sell signal. Many traders will tell you it's easy to buy a stock but difficult to sell. When you sell determines whether you make a profit or a loss. A buy and hold strategy in a rising market is a winning strategy -- until the trend changes. After that, holding on too long leads to reduced profits and even losses. So when do you sell? The easy answer is that you should sell when prices reach their maximum, but determining that point takes skill and luc...

  • The Zigzag Trend Indicator by Spyros Raftopoulos

    ARTICLE SYNOPSIS ...The Zigzag Trend Indicator by Spyros Raftopoulos Zigzag is a powerful noise filter, but it's not without its problems. Here's a technique that incorporates the power of zigzag into a more valid and tradable indicator. The popularity and usefulness of the zigzag indicator can be ascribed to three important characteristics. It is an effective noise filter; it graphically presents the main trend with great clarity; and it is still a very low-level indicator, in that its final interpretation of price is not filtered through one or more algorithms, but is based upon the price itself. While thes...

  • Traders' Notes: Stochastic Oscillator by Amy Wu

    ARTICLE SYNOPSIS ...Traders' Notes: Stochastic Oscillator by Amy Wu ? STOCHASTIC OSCILLATOR While stochastics is the mathematics of randomness, a stochastic oscillator compares a security's price relative to its price range over any given time period. ...

Traders' Resources: Data Services by Technical Analysis, Inc.

  • Traders' Tips by Technical Analysis, Inc.

    ARTICLE SYNOPSIS ...Traders' Tips by Technical Analysis, Inc. ? TRADESTATION: ZIGZAG TREND INDICATOR Spyros Raftopoulos's article in this issue, "The Zigzag Trend Indicator," describes a method of deducing trend from reversal filters. In earlier articles, Raftopoulos described methods for charting zigzags, but his zigzag validity indicator only displayed the "locked" high and low, not the moment when the retracement criteria were met. Raftopoulos's new zigzag trend indicator, described in this issue, can now display this previously undisplayed information on the chart....

  • Trading With Open Interest by John Boere

    ARTICLE SYNOPSIS ...Trading With Open Interest by John Boere Analyzing the open interest of equities can provide insight into the direction of the market. Find out why the expiration price is being manipulated, how it can be calculated, and how you can trade it. Open interest is the number of open contracts of a given option series. An open contract is one that is not exercised, closed, or expired. One unit of open interest represents two parties: a buyer (long) and a seller (short). Open interest increases when a buyer opens a long position and a seller opens a short position at the same time. Open interest de...

  • Websites For Traders: Trade-Ideas.com by Jayanthi Gopalakrishnan

    ARTICLE SYNOPSIS ...Websites For Traders: Trade-Ideas.com by Jayanthi Gopalakrishnan TRADE-IDEAS.COM Looking for trading ideas? Maybe www.Trade-Ideas.com can help. A look at the updating intraday chart on the homepage and the window displaying alerts will give you a good idea of what this site features (Figure 1). Whenever a pattern forms on the chart, the alert window displays the pattern and gives a short description. This alert window is the most popular feature on the site....

Working Money: Are You Trading On Borrowed Time? by Matt Blackman

Working Money: Options Calculator by Dennis D. Peterson

WorkingMoney: Insiders by David Penn

WorkingMoney: Swing Trading With Trendlines by Phillip S. Duke, Ph.D.







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