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• Hidden Rewards Of Cycles by Mohab Nabil, MSTA

  ARTICLE SYNOPSIS ...Hidden Rewards Of Cycles by Mohab Nabil, MSTA Head and shoulders patterns appear frequently in price charts. By using simple cyclical analysis you can forecast not only the price target, but also when that price will be reached. Making a profit in the stock market is all about timing. Despite this, many investors and analysts still do not treat the dimension of time with the consideration it is due. The timing factor, along with risk and reward, should be sufficiently weighted when trading a specific pattern. To say that the reward-risk ratio of a given trade is 3:1 is not completely accurat...

AUTHOR: Mohab NabilDATE: SEP2001SUBJECT: Trading Techniques

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• Interview: J. Doyne Farmer by John Sweeney

  ARTICLE SYNOPSIS ...Interview: J. Doyne Farmer by John Sweeney The number of physicists and engineers who have dented their axes on market prediction is so vast that it led to the derisive term "quant." But who are these guys, and what are they up to? We tracked down one man who made the journey, successfully, from academia to research to trading, then back. We found him holed up in New Mexico, still pushing the boundaries of speculative thought and willing to chat. J. Doyne Farmer studied physics, receiving a bachelor of science degree from Stanford University and a doctorate from the University of California ...

AUTHOR: John SweeneyDATE: SEP2001SUBJECT: Interview

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• Letters To S&C

  ARTICLE SYNOPSIS ...Letters To S&C VERTICAL HORIZONTAL FILTER Editor, First of all, congratulations on your magazine. I have read the article "Vertical Horizontal Filter" (STOCKS & COMMODITIES, July 2000) and I would like to know how I can apply it in MetaStock. I used it in a spreadsheet in Excel and it is really fantastic! IGNACIO HUERTA SÁNCHEZ, Madrid, Spain Unfortunately, the VHF wasn't a Traders' Tips topic for that issue, so check with Equis International at Equis.com for MetaStock code.--Editor...

AUTHOR: Technical Analysis, Inc.DATE: SEP2001SUBJECT: Letters To S&C

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• Life On Hold by Adrienne Laris Toghraie

  ARTICLE SYNOPSIS ...Life On Hold by Adrienne Laris Toghraie If you have put your trading on hold, you undoubtedly have a compelling reason. To support your case for being stuck, you can find countless others who will nod in agreement and understanding as they wait to tell you their own sad tales. On the other hand, there are traders whose roadblock stories are just as compelling as yours, but who are successfully trading, nonetheless. How do traders overcome their excuses? As a new money manager, Joe had only $250,000 to manage. His own operating funds were based on a standard fee of 2% of capital and 20% of th...

AUTHOR: Adrienne Laris ToghraieDATE: SEP2001SUBJECT: Trading Psychology

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• Light Up Your Trading System With CandleCode Trading by Viktor Likhovidov

  ARTICLE SYNOPSIS ...Light Up Your Trading System With CandleCode Trading by Viktor Likhovidov Market sentiment has traditionally been associated with subjectivity. Here's a method that not only adds a quantitative bent to measuring market sentiment, but can also be applied to your trading. When I first devised CandleCodes, I designed them to quantitatively measure the market by ranking the CandleCodes according to typical interpretations. To put it simply, the CandleCode assigns a rank to each candlestick. A strongly bearish candle will have a very low rank, whereas one with less bearish sentiment will get a sl...

AUTHOR: Viktor LikhovidovDATE: SEP2001SUBJECT: Trading Systems

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• MESA Adaptive Moving Averages by John F. Ehlers

  ARTICLE SYNOPSIS ...MESA Adaptive Moving Averages by John F. Ehlers What if you combined the power of maximum entropy spectral analysis with the Hilbert transform's ability to discern phase change? The MESA adaptive moving average (MAMA) adapts to price movement in a new and unique way. The adaptation is based on the rate change of phase as measured by the Hilbert transform discriminator I described in my December 2000 article. In that article I derived the Hilbert transform, which generates the real and imaginary components from the analytical price waveform. The arctangent of the ratio of the imaginary compon...

AUTHOR: John F. EhlersDATE: SEP2001SUBJECT: Trading Techniques

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Opening Position by Jayanthi Gopalakrishnan

AUTHOR: Jayanthi GopalakrishnanDATE: SEP2001SUBJECT: Opening Position

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• Q&A by Don Bright

  ARTICLE SYNOPSIS ...Q&A by Don Bright LEVEL II TRADING I have been trading Level II for about three years now and did well until about a year ago. I know the market has changed considerably, but my main concern is the quotes themselves. Has something changed that I am unaware of?--Bret E., Denver, CO I find it interesting that most traders seem to feel that the market changed so dramatically last year. What was out of whack were the couple of prior years of the "bubble" in the Nasdaq. We simply went back to a more historical trading market, and those traders who adapted quickly were able to keep their streak g...

AUTHOR: Don BrightDATE: SEP2001SUBJECT: Q&A

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• Traders' Resource: Advisory Services

  ARTICLE SYNOPSIS ...Traders' Resource: Advisory Services Advisory services are all over the place, as this listing shows. You have plenty of choice and plenty of price points to consider. One key factor is whether the outfit you're checking out is a Registered Investment Advisor (RIA) or a registered Commodity Trading Advisor (CTA). Though it doesn't weed out the foolish advice, the act of registration puts the person or persons under the government's scrutiny. In this listing, filled in by the companies themselves, you'll find those who have RIA and/or CTA certifications as well as those who are nonregistered a...

AUTHOR: Technical Analysis, Inc.DATE: SEP2001SUBJECT: Advisory Services

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• Traders' Tips

  ARTICLE SYNOPSIS ...Traders' Tips This month's tips include: Viktor Likhovidov's CandleCode trading systems, described in "Light Up Your Trading System With CandleCode Trading" implemented in NeuroShell Trader, Investor/RT, Wealth-Lab, TechniFilter Plus, and TradingSolutions; and John Ehler's MESA adaptive moving average (MAMA) code in Byte Into The Market, NeuroShell Trader, Investor/RT, and TradingSolutions....

AUTHOR: Technical Analysis, Inc.DATE: SEP2001SUBJECT: Traders' Tips

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• Trading Within The Cup by Rick Martinelli and Barry Hyman

  ARTICLE SYNOPSIS ...Trading Within The Cup by Rick Martinelli and Barry Hyman The classic approach to trading the cup-with-handle pattern is buying on a pullback during an uptrend before price breaks out. But what about traders who prefer to begin taking a position in a stock as it is setting up, rather than waiting for it to hit a new high? Trading within the cup-with-handle is another way to profit. In our October 1998 article, we described an automated approach to identify stocks that have set up the cup-with-handle structure with proper price and volume characteristics. The impetus for writing such an algor...

AUTHOR: Rick Martinelli and Barry HymanDATE: SEP2001SUBJECT: Classic Technique