1739511221,timestamp,3-5
stcov291dacu,d,"{""minimum-quantity"":""1"",""path"":""ch6j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:6 (16-23): Daytrading Cup Breakouts with Ken Calhoun"",""caption-linebreaks"":""Daytrading Cup Breakouts with Ken Calhoun
Here’s how you can daytrade momentum trades.
Entering and exiting intraday trades using precision technical trading signals has been popular with both retail and institutional traders, since it limits overnight risk exposure. The primary elements of professional daytrading include scanning for volatile breakouts during the first hour of the trading day, setting specific technical entry signals to initiate new trades, and using careful risk management to scale in and out of positions once they’re initiated. Daytrading stocks, eminis, forex, and exchange traded funds (Etfs) all require different entry and exit signals.
THE TWO-DAY HIGH STOCK CUP ENTRY
\nThe strongest entry pattern in daytrading equities is relatively simple. Entries are set using new high price breakouts roughly at 0.35 or so above the prior day’s highs during the first hour of the market open, following a cup breakout above a 35-step (as in, 35-period) moving average (MA) crossover on a two-day, one-minute chart on high volume.
In this intraday breakout in Molycorp Inc. (Mcp) in Figure 1, you can see that a bullish cup was formed between 44.7 and 45.3 during the premarket, slightly above the prior day’s high. A long entry signal is generated at 0.35 above the cup high at 45.65, with the exit generated when the price action crossed back under the 35-step MA at 47.8.
The chart setup is a one-minute, two-day chart with the time set to display data from 7 am to 4 pm Eastern time. The reason for showing so much premarket data is to be able to see gaps, cup patterns, and trends (with volume) before the start of the trading session. Focusing on premarket price action helps successful daytraders develop a specific price-based entry strategy for trading once the market opens. It is usually not a good idea to enter new positions premarket because of wide spreads and lower liquidity."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-16-23-daytrading-cup-breakouts-with-ken-calhoun-20.gif"",""height"":""628"",""width"":""465""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-16-23-daytrading-cup-breakouts-with-ken-calhoun-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-16-23-daytrading-cup-breakouts-with-ken-calhoun-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov29235to1,d,"{""minimum-quantity"":""1"",""path"":""faarfr202"",""ysw-page-title"":""Stocks & Commodities V. 29:6 (24-26, 35): Top 10 Candles That Work by Thomas N. Bulkowski"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-24-26-35-top-10-candles-that-work-by-thomas-n-bulkowski-29.gif"",""height"":""180"",""width"":""135""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-24-26-35-top-10-candles-that-work-by-thomas-n-bulkowski-30.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-24-26-35-top-10-candles-that-work-by-thomas-n-bulkowski-31.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov29235to,d,"{""minimum-quantity"":""1"",""path"":""ch6j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:6 (24-26, 35): Top 10 Candles That Work by Thomas N. Bulkowski"",""caption-linebreaks"":""Top 10 Candles That Work by Thomas N. Bulkowski
Which candlestick patterns trend the most in 10 days?
IN my last article, I described 13 candlesticks that worked best as reversal or continuation patterns. That means price closed above the top of the candle pattern or below the bottom of it, signaling a reversal or continuation not just once, but reliably in thousands of cases. However, just because a candle acts as a reversal 66% of the time doesn’t mean that price moves far beyond the candlestick boundaries.
This article discusses candles that perform best over time — that trend furthest — but they may not be good reversal or continuation candidates.
START AT THE BEGINNING
Doing research on candlesticks means making decisions on how to test them. How do you determine the best performance? Since candles are often short-duration patterns (most are three price bars or shorter), their trend often does not lead to a big, long-duration move. I would make that statement based on working with chart patterns, where the tallest ones outperform their shorter brethren, but also from testing more than 100 candlestick types using daily price data and 4.7 million lines (a candle line is a single price bar).
I decided to measure the price move from the close of the day the candle pattern ended (not the breakout) to one, three, five, and 10 trading days into the future. This article discusses the 10-day performance results in a bull market. For details on other varieties, such as bear market performance over five days, please refer to my book Encyclopedia Of Candlestick Charts.
UP BREAKOUTS: COLLAPSING DOKI STAR
The top-performing candle with an upward breakout is the collapsing doji star. I show the ideal configuration in Figure 1. It’s a three-line pattern with an uptrend leading to the start of the candlestick. The first line is white, but it can be tall or short. What matters is that it gaps above the next candle — a doji."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-24-26-35-top-10-candles-that-work-by-thomas-n-bulkowski-22.gif"",""height"":""629"",""width"":""473""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-24-26-35-top-10-candles-that-work-by-thomas-n-bulkowski-27.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-24-26-35-top-10-candles-that-work-by-thomas-n-bulkowski-28.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov292enpr,d,"{""minimum-quantity"":""1"",""path"":""ch6j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:6 (28-35): Entering The Prize Zone by Walid Khalil and David Steckler"",""caption-linebreaks"":""Entering The Prize Zone by Walid Khalil and David Steckler
In this second part of the series, we introduce the price zone oscillator (Pzo), a complementary indicator to the volume zone oscillator (Vzo).
IN our last article, we introduced a new oscillator that provides better guidance to buying and selling levels for securities: the volume zone oscillator (Vzo). This time, we introduce a similar, complementary indicator: the price zone oscillator (Pzo). See sidebar, “Price Zone Oscillator,” on page 29.
The formula for Pzo depends on only one condition: If today’s closing price is higher than yesterday’s closing price, then the closing price will have a positive value (bullish); otherwise it will have a negative value (bearish).\nPrice zone oscillator = 100 x (CP/TC)
where:\nCP (Closing position) = X-days Ema (± close)
and\nTC (Total close) = X-days Ema (close)
The price zone oscillator\nLike Vzo, Pzo has overbought and oversold levels. It is useful for identifying at which zone (bullish or bearish) price is positioned. Pzo is useful in uptrends, downtrends, or sideways market conditions. Please review the daily chart in Figure 1 of Dia, the Dow Jones Industrial Average Spdr, with Pzo.\nJust like with Vzo, the price crossing the 60-day exponential moving average (Ema) is the determinant between bullish (above the Ema) and bearish (below the Ema) conditions. When the 14-day average directional movement index (Adx) is below 18, the action is considered to be sideways regardless of whether price is above or below the Ema.\nAlso like Vzo, the components of Pzo are a 60-period Ema; a 14-period Adx; and seven oscillator zones, at +60 (extremely overbought), +40 (overbought), +15, zero, ‑5, ‑40 (oversold), and ‑60 (extremely oversold)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-28-35-entering-the-prize-zone-by-walid-khalil-and-david-steckler-20.gif"",""height"":""633"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-28-35-entering-the-prize-zone-by-walid-khalil-and-david-steckler-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-28-35-entering-the-prize-zone-by-walid-khalil-and-david-steckler-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov293royo,d,"{""minimum-quantity"":""1"",""path"":""ch6j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:6 (36-38): Routing Your Orders by Don Bright"",""caption-linebreaks"":""Stocks & Commodities V. 29:6 (36-38): Routing Your Orders by Don Bright
\nChanges in structure cause changes in order routing. And with growth and mergers taking place among exchanges, traders need to be aware of how to route their orders.
Back in the good old days, we just set up orders and clicked buy, sell, or sell short. We didn’t have any concerns about where the orders were going, because it didn’t matter. It didn’t matter because there were basically only two destinations, Nyse and Nasdaq. Of course, we also had Amex and a few regional exchanges, but overall, it didn’t matter because we were not being charged additional fees from alternate destinations.
I recently talked with some of the top people at the various market centers, which is what most destinations prefer to be called these days, and asked about basic order routing these days, with a little historical perspective. Most of this article was written before the Nyse Euronext announced its merger with Deutsche Borse, two of the world’s biggest exchange operators, so I’ll be writing another article altogether about those two.
OVERALL ORDER ROUTING (FROM THE START)
The Nyse traces its roots back to 1792, when 24 stock brokers signed the Buttonwood Agreement, a document stating that they would trade certain goods only with each other. From that beginning, believe it or not, the Nyse stayed more or less intact for approximately 200 years, growing by leaps and bounds, vowing only to trade to each other in the exchange. Then in 2006, the Arca electronic trading group was brought under the Nyse’s wing, and then in 2007, they merged with Euronext, bringing about the first truly global marketplace. In 2008, they brought the American Stock Exchange (Amex) on board. Along the way, the London International Financial Futures and Options exchange (Liffe) added a new dimension to their futures and options executions."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-36-38-routing-your-orders-by-don-bright-21.gif"",""height"":""633"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-36-38-routing-your-orders-by-don-bright-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-36-38-routing-your-orders-by-don-bright-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov293exyo,d,"{""minimum-quantity"":""1"",""path"":""ch6j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:6 (39): Explore Your Options"",""caption-linebreaks"":""Stocks & Commodities V. 29:6 (39): Explore Your Options
WEEKLY OPTIONS
I’ve noticed the more active large-cap stocks are offering options that expire weekly. Can you give some background on how these contracts work and how they might differ from standard listed calls and puts on equities?
Good question. What you’re seeing listed in names like Apple (Aapl), General Electric (GE), Google (Goog), and other highly liquid, large-cap stocks are weekly options. The exchanges and your broker can provide you with an up-to-date listing. This product will continue to grow, given the strong response from option traders for this new offering.
With these contracts, there are similarities, as “weeklys” are standardized contracts in most ways. For one, the models used to generate prices for regular contracts are the same as for the weeklys.
The weekly is simply a means by which to allow traders to place positions on a very short-term contract when none would otherwise be available if the front-month contract still had two to about five weeks of life remaining. This also means the risks (and rewards) surrounding the theta and gamma are heightened, as they would be with regular contracts."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-39-explore-your-options-21.gif"",""height"":""617"",""width"":""424""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-39-explore-your-options-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-39-explore-your-options-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov294adoc,d,"{""minimum-quantity"":""1"",""path"":""ch6j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:6 (40-42): Advanced OCA Orders by Heinz Popovic"",""caption-linebreaks"":""Stocks & Commodities V. 29:6 (40-42): Advanced OCA Orders by Heinz Popovic
Here are some simple ideas and concepts to automate stops, using “one cancels all” orders.
Every trade demands a stop-loss order. I cannot enter a position without a stop because the size of every trade is limited by the distance from entry to stop. Since my trading horizon is anywhere from several days to several weeks, I move stops in the direction of the trade once the price moves in my favor.
Modern platforms provide the ability to use trailing stops, moving stops in the direction of your trade. When the price moves against you, that triggers a stop and you are out with only a small loss or even with a profit. This method is often used for profit-taking, especially when you expect the market to move quickly in your direction.
No matter how you decide to move your stops, there are some additional concepts to help protect your trades. Think of a watchdog that guards your positions while you are not in front of your computer. Even if you sit in front of the screen, you cannot monitor too many tickers at once. For me, as a trader in Europe watching the US market, it is even more difficult, due to the time difference. I don’t want to spend all my evenings in front of one screen, let alone multiple screens.
As a result, I use “one cancels all” (Oca) orders to secure my positions and create flexible exit scenarios. A standard Oca order consists of two legs — one to take profits at a predetermined target and the other to limit a loss. Once either of the orders is triggered, the other one is canceled.
I use Oca orders to set a larger group of orders that are connected and only one of them will be filled; I want to use limit orders whenever possible. Think of using a trailing stop order. This means that when the stop price is triggered, a market order is issued. Such an order will most likely add another small loss due to slippage. Using a trailing limit order can solve this problem. The trouble is that a trailing limit order might not get filled if prices jump across it in a fast market.
My solution is to set a second order that is a classic trailing-stop order slightly below the trailing-limit order. A trailing stop can follow the trailing limit order at two cents below. If your trailing limit order is not filled, you will most probably exit on a trailing stop order. In addition, you could also set a hard stop that is not moving. If you are afraid of overnight gaps, you might even set several such hard stops.
All of these orders are connected in one Oca group. This means that as soon as one of these orders is filled, all other orders are automatically canceled."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-40-42-advanced-oca-orders-by-heinz-popovic-21.gif"",""height"":""626"",""width"":""460""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-40-42-advanced-oca-orders-by-heinz-popovic-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-40-42-advanced-oca-orders-by-heinz-popovic-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov294fufo,d,"{""minimum-quantity"":""1"",""path"":""ch6j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:6 (43): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
HEDGING PRICE RISK
Is there a way to hedge price risk in the futures market without giving up potential for favorable price movement?
The goal of a perfect hedge is to eliminate the price risk exposure in any particular market. In doing so, however, the end user also gives up any favorable price movement.
Hedging is like any other form of insurance; consumers pay a premium to insurance companies to protect themselves from unfavorable events that will likely never occur. In other words, it isn’t possible to enjoy the benefits of protection without giving something up. But that doesn’t mean that the hedge itself can’t be strategic.
Whether you are a producer or a user of commodities, you can purchase price protection in the form of a long option. For instance, if your business consumes large quantities of gasoline and is vulnerable to higher energy costs, you can purchase insurance against prices moving beyond a certain point by buying a call option. Doing so will be expensive, but it does provide absolute protection above the strike price of the option and leave the door open for falling prices. As appealing as this sounds on paper, I don’t believe it to be the best way to hedge. After all, options have a limited life span, and the money spent buying protection when it is not needed will certainly act as a tax against any favorable price movement."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-43-futures-for-you-by-carley-garner-21.gif"",""height"":""617"",""width"":""423""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-43-futures-for-you-by-carley-garner-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-43-futures-for-you-by-carley-garner-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov294coyo,d,"{""minimum-quantity"":""1"",""path"":""ch6j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:6 (44-51): Conquering Your Trading Fears With Corey Rosenbloom by J. Gopalakrishnan and B. Faber"",""caption-linebreaks"":""Conquering Your Trading Fears With Corey Rosenbloom by J. Gopalakrishnan and B. Faber
\nCorey Rosenbloom, Cmt, is the founder of www.afraidtotrade.com, a website dedicated to helping traders overcome their trading fears through education, and is the author of The Complete Trading Course (John Wiley & Sons, 2011), which outlines how to combine foundational principles, analysis techniques, and trade setups into a broader perspective. He began investing using fundamental analysis in 1998 during the runup to the market top in 2000, and the ensuing bear market opened his awareness to the field of technical analysis as a way to enhance performance and manage risk more effectively. Having also incorporated sector rotation and intermarket analysis into his investment and trading strategy, Rosenbloom switched to shorter time frame trading tactics to capture additional edge from the price action and trends. He began writing the afraidtotrade.com blog to share some of his experiences and define strategies, which detail his unique style of incorporating both the larger perspective of intermarket analysis with the shorter, intraday trading strategies that can be employed to minimize risk.
Stocks & Commodities Editor Jayanthi Gopalakrishnan and Staff Bruce R. Faber interviewed Rosenbloom via telephone on April 4, 2011.
Corey, tell us how you got interested in trading.\nI credit my father, who is an investor, and who was constantly prodding me to study business. We would talk stocks each evening, though what really got me into it more than just for fun was a stock market challenge in my high school. That got competitive and the entire class participated, and our team placed quite well, with most of us taking the challenge very seriously. That got me motivated. Dad helped in terms of looking at stocks and he focused on investment style, similar to that of Warren Buffett. He would read company prospectuses and focus on the fundamentals of the company.
That was before I discovered and started to practice charting. Of course, the market went up in 1998, 1999, and 2000. We did not get involved in the tech market bubble. We stayed away from the stocks we did not understand. If we could not talk about it, or understand it, or read the fundamentals of it — and a lot of those companies did not have fundamentals at that time — we just did not take part.
It was good to have that runup and the early success in the first few years. While I was in college, the stock market crashed. We lost money, but not to the extent that many others did. We had friends here in Huntsville, AL, who got involved in the tech bubble and they lost almost everything, because they got involved in that mania. They made a lot of money quickly, but they lost it just as quickly. We were able to sidestep that. My dad instilled in me that I shouldn’t just enter a trade because I thought it was interesting or hyped-up, or the price was low. It is all about price, fundamentals, and values. So do what works and stay away from what doesn’t. Sure, we lost money in that period, but we had early success, and that got me hooked.
When did you get interested in charting?
In college. I got involved in technical analysis through visiting StockCharts.com, reading books by John Murphy and Martin Pring. I got involved in a hybrid strategy where you select companies with good fundamentals but use the charts too. If the stock is a good fundamental buy but the stock is trending down, maybe it is not a good time to go long that stock. I use charts as a way to time my entries and exits. Once you have identified a good company, you have to ask how and when you actually purchase it. You could buy on a pullback, but what does a pullback mean? What are some indicators that help you with that? As I got more involved in technical analysis, it really energized me and I found I liked pattern recognition and solving puzzles. The charts addressed all the things I liked. Of course, around that time in 2003, the markets were in a recovery phase and almost everything was going up.
So with my father’s fundamental analysis–investing style and the runup into 2000, technical analysis came into the picture as a way of showing me how I could sidestep the down moves. From there, my love of technical analysis grew and I moved away from fundamentals over the next decade."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-44-51-conquering-your-trading-fears-with-corey-rosenbloom-by-j-gopalakrishnan-and-b-faber-21.gif"",""height"":""632"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-44-51-conquering-your-trading-fears-with-corey-rosenbloom-by-j-gopalakrishnan-and-b-faber-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-44-51-conquering-your-trading-fears-with-corey-rosenbloom-by-j-gopalakrishnan-and-b-faber-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov295qaby,d,"{""minimum-quantity"":""1"",""path"":""ch6j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:6 (52): Q&A by Don Bright"",""caption-linebreaks"":""Stocks & Commodities V. 29:6 (52): Q&A by Don Bright
END-OF-DAY CLOSE IMBALANCES
Mr. Bright, I attended one of your classes last year and found it very helpful. One of the things you taught was how to read and respond to end-of-day market close imbalances. If I recall, you said these imbalances were put out twice during the last half hour of trading. Is that still the case? Have there been any changes to your thought process regarding how to treat them? —Edwin G.
Don, I want to thank you for your column and your help on the various Internet boards. You had posted at some point that there had been major changes in the market on close imbalances and even a new order type. Can you expand on this a bit? —Tradercat1975
Let me go into more detail on the end-of-day strategies and specifically the market on close imbalance. To start with, during the day, many institutions and other trading entities submit orders to either buy or sell shares of specific stocks, with pricing to be the last trade of the day — basically, a market order for the final print each day."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-52-q-a-by-don-bright-21.gif"",""height"":""616"",""width"":""423""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-52-q-a-by-don-bright-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-52-q-a-by-don-bright-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov295prre5,d,"{""minimum-quantity"":""1"",""path"":""ch6j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:6 (54-56): Product Review: ONE44 by Dennis Peterson"",""caption-linebreaks"":""Stocks & Commodities V. 29:6 (54-56): Product Review: ONE44 by Dennis Peterson
One44 is a commodities trading platform that gives buy and sell recommendations for four very active commodities: Standard & Poor’s 500 and Nasdaq minis, euro, and yen. After downloading, just log in each time you want to use One44. Why just four commodities? That’s because One44 is predicting where price will turn, and some of that prediction requires trading experience. That experience comes from Nick Ehrenberg, a veteran of 30 years of analysis provided to a select few of the Cme floor traders. One44 was created to let a broad spectrum of traders see the analysis. But you might still be asking, “Why just four?”
The reason is that Ehrenberg Analytics uses Gann charts. Most traders, myself included, have looked at Gann theory and just written it off as unreliable. Lurking in the background was the problem of squaring the chart. Platforms that I was familiar with at the time let you approximate a squared chart, but that is as close as you could get. To actually square a chart, you need to be able to use equal units of time and price. (Wave59 is one example of software that allows you to do so.) Now you might want to know, “What’s the performance history?” One44 shows its history, and you will see it makes a profit on two out of every three trades.
So what do you do if you don’t use software that allows you to square a chart? For the S&P 500 emini, you build a chart where time (x-axis) and price (y-axis) are equal units, and in the case of the S&P 500 emini, Nick Ehrenberg’s chart is six feet tall. In fact, on what One44 calls its dashboard is a section called Market Outlook, and one of the tabs is “1x1 angles” (Figure 1)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-54-56-product-review-one44-by-dennis-peterson-21.gif"",""height"":""632"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-54-56-product-review-one44-by-dennis-peterson-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-54-56-product-review-one44-by-dennis-peterson-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov295prre6,d,"{""minimum-quantity"":""1"",""path"":""ch6j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:6 (58-59): Product Review: The Wizard by Leslie N. Masonson"",""caption-linebreaks"":""Product Review: The Wizard by Leslie N. Masonson
The Wizard offers self-directed investors an end-of-day investment decision-making and market timing system that provides specific buy and sell points for investments in four markets tracking over 9,000 stocks, 900 exchange traded funds (Etfs), 70 futures contracts, and 24 forex pairs. The entry and exit decisions are based on key support and resistance levels. The program also pinpoints high-probability trades in all these markets based on the simple concept of following the trend. Historical backtested and live data for the market calls for each investment vehicle provided is in a color-coded annual calendar format going back up to 20 years. The program indicates not only when to buy and sell, but also the exact price to do so, and the appropriate price for stops and target prices.
THE WIZARD HOME PAGE
Given that all we know is this program is based on trends, it’s probably a good idea for the investor to first view the market trend on the home page (Figure 1). The next step is to select one of the three scan strategies to pinpoint viable stocks, either for going long or for shorting, with the exact entry and exit signals for execution in a brokerage account. MarketTrends, in the upper right corner of the screen, highlights both the short- and long-term trend of the Dow Jones 30, Standard & Poor’s 500, Nasdaq 100, as well as the Russell 2000, the 10-year Treasury bond, and the US dollar."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-58-59-product-review-the-wizard-by-leslie-n-masonson-21.gif"",""height"":""617"",""width"":""424""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-58-59-product-review-the-wizard-by-leslie-n-masonson-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-58-59-product-review-the-wizard-by-leslie-n-masonson-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov296trti3,d,"{""minimum-quantity"":""1"",""path"":""ch6j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:6 (63-71): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Stocks & Commodities V. 29:6 (63-71): Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Walid Khalil and David Steckler’s article in this issue, “The Price Zone Oscillator.”
Code for the price zone oscillator for MetaStock and TradeStation is already provided in Khalil and Steckler’s article. Subscribers will also find the same code at the Subscriber Area of our website, www.Traders.com. Presented here is an overview of possible implementations for other software.
Traders’ Tips are provided to help the reader implement a selected technique from an article in this issue. The entries are contributed by various software developers or programmers for software that is capable of customization.
Readers will find all the code listings that accompany the following Traders’ Tips at our website, Traders.com. Provided here is some discussion of the technique’s implementation by the Traders’ Tips contributors as well as some example charts.
To locate Traders’ Tips at our website, use our site’s search engine, or click on the Traders’ Tips link from our home page. For past Traders’ Tips, click on the “Stocks & Commodities” link from our home page in the red box on the left, then click on the “Article Abstracts” link in the red box on the left, then click on the issue of interest, then on “Traders’ Tips.”"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-63-71-traders-tips-by-technical-analysis-inc-20.gif"",""height"":""618"",""width"":""426""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-63-71-traders-tips-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-63-71-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov297bofo5,d,"{""minimum-quantity"":""1"",""path"":""ch6j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:6 (76): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The Big Investment Lie: What Your Financial Advisor Doesn’t Want You to Know
Big Wave Surfing: Extreme Technology Development, Management, Marketing & Investing
Candlestick Profits: Eliminating Emotions
Financial Origami: How The Wall Street Model Broke
Jimmy Stewart Is Dead
Super Boom: Why The Dow Will Hit 38,820 And How You Can Profit From It"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-76-books-for-traders-by-technical-analysis-inc-20.gif"",""height"":""615"",""width"":""416""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-76-books-for-traders-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-76-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov297clsh,d,"{""minimum-quantity"":""1"",""path"":""ch6j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:6 (78): Classic Short Sell Setup by Jamie Theiss"",""caption-linebreaks"":""Classic Short Sell Setup by Jamie Theiss
Here’s an example of a classic short setup for daytraders.
Figure 1 is an example of a classic short setup for daytraders. This is a real bread & butter strategy used time and again. To set up this Monday morning trade, the premarket news was bearish with rumors of the country’s credit rating likely to be downgraded. All the market averages were down. So the bears were growling and sentiment was weak. BroadComm (Brcm) is one of 20 or so stocks I follow daily and at the open it frequently puts in a nice red bar, as do most of the other stocks I watch. So this time I stalked it for an entry to the short side.
THREE-BAR PULLBACK
On the five-minute chart, Brcm put in a nice three-bar pullback to the declining moving averages. Green is the eight-period simple moving average (Sma), while the blue line is the 20-period Sma and the red is the 200-period Sma. I was waiting for a red bar to take out the low of a green bar. This happened at $37.54 and my protective stop was placed a cent above the entry bar at $37.70. This gave me a 16-cent risk on the trade. If we used, for example, $100 as our risk per trade, our position size would have been 630 shares, which I always round down to an even lot size of 600 shares to account for slippage and costs."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-78-classic-short-sell-setup-by-jamie-theiss-20.gif"",""height"":""620"",""width"":""432""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-78-classic-short-sell-setup-by-jamie-theiss-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-78-classic-short-sell-setup-by-jamie-theiss-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov29810le,d,"{""minimum-quantity"":""1"",""path"":""ch6j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:6 (8, 10): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
Combining RSI with RSI
Editor,
I am a subscriber to your magazine and a student of technical analysis over the last 18 years. The subject is forever evolutionary and seldom do I come across an insight that can truly inspire and reflect upon the artistic nature that many professionals, working on charts, can possess. Peter Konner has done a wonderful job with the aspects mentioned in his January 2011 article (“Combining Rsi With Rsi”) and in its most simplest form. I just have one question for him: the rationale behind using the parameters for the weekly Rsi of 17 and 5.
Syed Rehan Ali
Author Peter Konner replies:
In my article, I briefly described the optimization performed on the model. I admit that it was a very sketchy test, but my subsequent optimizations show that five and 17 weeks for the Rsi periods are correct."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-8-10-letters-to-s-c-by-technical-analysis-inc-20.gif"",""height"":""617"",""width"":""423""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-8-10-letters-to-s-c-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-6-8-10-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov29126ho,d,"{""minimum-quantity"":""1"",""path"":""ch7j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:7 (10-12, 26-27): How High For Crude by Dean Rogers"",""caption-linebreaks"":""How High For Crude by Dean Rogers
Here’s a look at the NYMEX crude oil perpetual front-month contract focusing on the use of wave projections and retracements.
AS of late spring 2011, the varied response to geopolitics has pushed already firm Nymex Wti crude oil prices to more than $100 per barrel. Sensing the speculation, major media and news outlets have caught the “how high will crude oil go” bug, while the pundits have been suggesting barrel prices ranging from the $120s to $200-plus.
Of course, reacting to these forecasts can be treacherous. Pundits often blindly forecast prices without any measure or accountability or responsibility even if they turn out to be wildly wrong. And back in 2008, when prices zoomed to almost $150 per barrel, many people wondered how much higher prices might go.
This is happening again now. Here, I will examine the Nymex crude oil front-month contract from a purely technical standpoint and focus on the use of wave projections and retracements. The technicals are good at pinpointing near-term support and resistance and often accurately predict future price activity. The front-month or “perpetual” contract is a nonnormalized continuation chart of the prompt-month futures. Using the perpetual in forecasting allows us a historically long view of prices and waves.
OVERVIEW OF WAVE PROJECTIONS
Wave cycles consist of three distinct high and low swings, denoted by the labels X, Y, and Z. For an up wave, cycle X is the first and lowest point, Y is the swing high, and Z is the pullback low after Y. For a down wave, cycle X is the first and highest swing, Y is the swing low, and Z is the pullback high following Y.
Within a wave cycle, these three prices can project to targets using the golden mean, or phi (Φ = 1.62), and derivatives of Φ. The formula for a target is:
Z + (|X – Y| * factor of Φ) for up targets\nZ – (|X – Y| * factor of Φ) for down targets
\nThe factors of Φ used in this analysis are 0.62 (1/Φ), 1, 1.38 (1 + (1/Φ)2), 1.62 (Φ), and 2.76 (1.38 x 2). There is one additional target called the trend terminus, which is calculated as Y3/X2.
"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-10-12-26-27-how-high-for-crude-by-dean-rogers-20.gif"",""height"":""633"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-10-12-26-27-how-high-for-crude-by-dean-rogers-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-10-12-26-27-how-high-for-crude-by-dean-rogers-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov291cose,d,"{""minimum-quantity"":""1"",""path"":""ch7j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:7 (14-26): Comparing Seven Money Flow Indicators by Markos Katsanos"",""caption-linebreaks"":""Comparing Seven Money Flow Indicators by Markos Katsanos
An overabundance of money flow indicators can clutter your desktop and could confuse you with contradicting signals. But do these indicators have any predictive value? If so, which is best?
Since Joseph Granville presented the first money flow indicator in 1963, other technicians have attempted to improve on Granville’s original formula or devise a completely new approach using volume to predict market price moves. On-balance volume (Obv), Chaikin money flow (Cmf), accumulation/distribution, volume price trend (Vpt), volume oscillator (VO), ease of movement, negative volume index, positive volume index, Klinger oscillator, volume flow indicator (Vfi), and the money flow index (Mfi) are all indicators that technicians have developed to quantify the relationship between price and volume.
Yes, there are many. Bearing in mind that besides the stock chart and other price-based indicators there is only room on a 19-inch monitor for one or two volume indicators, you will have to choose from more than 15 money flow indicators for your standard layouts. An even more critical decision would be choosing a volume indicator for your trading system, given that two different indicators can produce contradicting signals.
Which ones work the best? To find out, I tested seven popular money flow indicators using two objective mechanical systems and a visual method. But first, here’s some background information on these indicators.
THE BASICS
Volume or money flow indicators can be divided into five categories:
Those using volume based on the interday change in price from one day to the next. The best-known indicator in this category is Granville’s Obv. Later variations include Markstein’s volume price trend (Vpt) and the volume flow indicator (Vfi), which I introduced in my June 2004 Stocks & Commodities article (see “Suggested reading” at the end of this article).
Those focusing on the change in prices on an intraday basis (such as the Cmf and the intraday intensity).
Those showing the periodic volume change without reference to price (such as the volume oscillator [VO]).
Those using volume to improve on existing indicators (such as the volume-weighted moving average convergence/divergence [Macd] or the volume-weighted moving average).
Those using both inter- and intraday price changes. The only indicator in this category is the finite volume elements (Fve). Details about this indicator can be found in my April and September 2003 articles."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-14-26-comparing-seven-money-flow-indicators-by-markos-katsanos-20.gif"",""height"":""619"",""width"":""428""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-14-26-comparing-seven-money-flow-indicators-by-markos-katsanos-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-14-26-comparing-seven-money-flow-indicators-by-markos-katsanos-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov292cosy,d,"{""minimum-quantity"":""1"",""path"":""ch7j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:7 (28-31): A Color-Based System For Short-Term Trading by Edgar Kraut"",""caption-linebreaks"":""A Color-Based System For Short-Term Trading by Edgar Kraut
Using the Spdr S&P 500 exchange traded fund as an example, here’s how you can apply a simple swing trading system that utilizes the colors of volume bars.
Most technical traders use some combination of price-based indicators to support their trading decisions. Here’s a very simple swing trading system based on coloring volume bars. It can be used either as a standalone trading system or in conjunction with other trading systems. This is how it works:
If today’s closing price and volume are greater than two weeks ago, color today’s volume bar green.
If today’s closing price is greater than two weeks ago but volume is not, color today’s volume bar blue.
Similarly, if today’s closing price and volume is less than two weeks ago, color today’s volume bar orange.
If today’s closing price is less than two weeks ago but volume is not, color today’s volume bar red.
It’s a very simple color-based trading system that takes only long positions and works as follows:
Buy the green or blue volume bars, use a 1% trailing stop, and stand aside on red or orange bars.
HOW WELL DOES THIS WORK?
With an initial investment of $10,000 on April 17, 2002, and trading the Spdr S&P 500 exchange traded fund (Spy), this simple mechanical trading system grew to $22,143 as of one year later (April 17, 2003). These numbers do not include commissions or slippage. This is a 121.43% gain compared to a buy & hold loss of ‑20.59% or ‑$2,059. I will show you how to construct this trading system in MetaStock (end of day) and how the system can be implemented as an Excel spreadsheet."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-28-31-a-color-based-system-for-short-term-trading-by-edgar-kraut-20.gif"",""height"":""642"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-28-31-a-color-based-system-for-short-term-trading-by-edgar-kraut-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-28-31-a-color-based-system-for-short-term-trading-by-edgar-kraut-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov293mopo,d,"{""minimum-quantity"":""1"",""path"":""ch7j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:7 (32-37): More Power To The Subordinates by Martha Stokes, CMT"",""caption-linebreaks"":""More Power To The Subordinates by Martha Stokes, CMT
There are primary indicators and there are subordinate indicators. Often we get caught up in the primary indicators and fail to see certain patterns within them. Here’s how applying the subordinates can help you see something that could give you the edge.
raders are always looking for ways to streamline their stock analysis process to make it more efficient and productive. One great way to speed up your indicator analysis is to tweak the way you use your indicators. There are two classifications of indicators, primary and subordinate (also known as sub- or child indicator).
PRIMARY INDICATORS
Among the 250-plus primary indicators, there are a number of main categories:
1. Trend\n2. Quality\n3. Accumulation/distribution\n4. Oscillators\n5. Flow of funds\n6. Velocity/momentum\n7. Hybrid\n8. Cycle
Each of the primary indicator categories defines the function and use of the indicators. Hybrid indicators, for example, are the new indicators written in the past three to four years for the modern automated market. Hybrids lead price, actually moving in advance of it.
Subindicators play a key role in faster, more reliable chart analysis, regardless of which category of indicator you use. They are especially important and useful for histogram indicators and single-line indicators.
Primary indicators can be placed alongside each other in the same indicator chart window for comparison between the two indicators and for confirmation of harmonious or disharmonious trends, patterns, and angles. All primary indicators are analyzing price and time, volume and time, or price, time, and volume in a unique formula. Some primary indicators are period-based, while others are cumulative."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-32-37-more-power-to-the-subordinates-by-martha-stokes-cmt-21.gif"",""height"":""633"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-32-37-more-power-to-the-subordinates-by-martha-stokes-cmt-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-32-37-more-power-to-the-subordinates-by-martha-stokes-cmt-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov293baop,d,"{""minimum-quantity"":""1"",""path"":""ch7j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:7 (38-41): Backtesting Option Strategies by John A Sarkett"",""caption-linebreaks"":""Backtesting Option Strategies by John A Sarkett
Looking for a quick way to backtest option strategies? You can use Excel to count occurrences of historical prices outside a price band you set to develop an expectation for future price movement. Here’s how.
SO much of the option trader’s life has been enhanced over just the past 10 or so years. We have radically lower commissions — $0.15 to $1.50 per contract, plus various ticket charge plans; we have tighter markets, with high-volume contracts just one penny apart; we have better software with risk curves, what-if scenarios, and charting, with brokers and vendors continuing to enhance their offerings; and finally, we have easier access to futures and world markets for intermarket hedging.
Only one aspect of the option trading experience remains, more or less, as it was years ago — option strategy backtesting. If I put on this Spx or Spy or Rut or Etf or Xyz butterfly, condor, calendar, or double diagonal, what are my chances of success based on the recent past? That is the biggest question for every option trader.
For a back-of-the-envelope type calculation, some use deltas as shorthand for the probability of going in-the-money. For example, an option with a 10 delta will have roughly a 10% chance of doing so. Actual probability math is much more complex (see my December 1997 S&C article), but the answers usually come out close enough. Some software calculates “probability of expiration” or “probability of touching” (strike) for you. Thinkorswim does this, for example.
Other traders take on a much more time-consuming task of establishing the trade in their option software, then clicking through, day by day, to see how the trade progresses. This allows you to insert “adjustments” and see how these fare. Many option traders have invested many weekend hours in this kind of research.
Industrial strength option packages provide this opportunity; OptionVue is still the gold standard, although there are new offerings, too. Typical time involved for just one ticker: one year’s worth of data can be analyzed in 30 to 60 minutes. The data accessed is typically real, historical option data. (In the case of missing data, some software programs will insert theoretical prices.)"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-38-41-backtesting-option-strategies-by-john-a-sarkett-21.gif"",""height"":""628"",""width"":""463""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-38-41-backtesting-option-strategies-by-john-a-sarkett-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-38-41-backtesting-option-strategies-by-john-a-sarkett-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov294game,d,"{""minimum-quantity"":""1"",""path"":""ch7j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:7 (42-46): Gail Mercer of TradersHelpDesk.com by J. Gopalakrishnan and B. Faber"",""caption-linebreaks"":""Gail Mercer of TradersHelpDesk.com by J. Gopalakrishnan and B. Faber
Gail Mercer, a 15-year veteran of the trading industry who is the founder and Ceo of TradersHelpDesk, has dedicated her career to helping traders achieve success. Committed to helping traders grow from amateur analysts to master traders, her unique methodology is rooted in her philosophy that success depends not on a trader’s indicators but the ability to remain focused and responsive to price. Self-responsibility, another cornerstone of her work, provides the mirror for what a trader needs to learn about him- or herself in relationship to the markets. Working with both the inner and outer aspects of trading, Mercer provides an integrated and holistic blueprint for prospering in the markets.
Mercer has recently partnered with Christopher Koozekanani of FulcrumTrader to bring the concepts of Cumulative Delta to a broader audience. The new website will launch in early July 2011.
She is a frequent contributor to Stocks & Commodities, Traders World, and Financial Sense, as well as a presenter at the International Traders Expo. She offers a free trading room where she trades on the live edge of the market. To join, go to www.tradershelpdesk.com.
S&C Editor Jayanthi Gopalakrishnan and Staff Writer Bruce R. Faber spoke with Mercer on May 4, 2011, via telephone.
Gail, how did you get interested in trading?
The funny thing is I never thought I would ever be a trader. I actually started out as a paralegal. When computers came out, I was so amazed at how something that would take me hours to do could be done by a computer in such a short time. After that, I studied everything about computers I could get my hands on. I was offered a job as an indicator specialist at a company in Greensboro, NC, which I accepted. At the time I had never heard about anything like TradeStation and when I saw those little price bars ticking away during the day, I was in love. That was it. I was never, ever going to do anything else again in my life. I just thought that was the most amazing thing I had ever seen in my life — and I still do.
You said your job was as an indicator specialist?
Yes, at a company that designed more than 500 indicators. They do a lot of custom programming. We programmed some really complex stuff. There was nothing I did not have access to. We did it for companies like TradeStation and eSignal.
What was it about those tick bars that fascinated you?
It was seeing the price movement of a company’s stock intraday. I had always been told that you look in your refrigerator, see what labels were in there, then you just buy the stocks of the companies behind those labels and hold them forever — and eventually your kids would get your money. So being able to see a price bar and actually see the price of a company increasing or decreasing had me think, “Oh man, what have I been missing?” It was absolutely astonishing. And I had always loved currencies, so the currencies attracted me like crazy. I was like, “Oh man! I could be sitting here trading the dollar and the euro when I am at work.” It just blew my mind.
As you have developed so many indicators, are there any that you specifically like or found useful?
At that time, I did not have a favorite indicator because all I did was jump from indicator to indicator to indicator. I went through everything. I don’t think there was an indicator I did not try.
Do you use that many indicators now?
No, I don’t. I made that change when I decided to become a trader instead of an indicator specialist. Things changed for me when I asked myself, “Am I doing this as a hobby? Am I doing it just for the fun of doing it, or do I really want to make money at it? If I want to make money, I have to get serious, and it has got to become a business.” I have always been good at running a business and applying business principles.
The one issue I had in my trading was applying a business model to trading. Everybody has a different opinion on what you need to do in order to succeed as a trader. So I told myself that if this was going to be a business, I had to go back to square one. What did I have to do to be a trader?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-42-46-gail-mercer-of-tradershelpdesk-com-by-j-gopalakrishnan-and-b-faber-20.gif"",""height"":""632"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-42-46-gail-mercer-of-tradershelpdesk-com-by-j-gopalakrishnan-and-b-faber-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-42-46-gail-mercer-of-tradershelpdesk-com-by-j-gopalakrishnan-and-b-faber-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov294exyo2,d,"{""minimum-quantity"":""1"",""path"":""ch7j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:7 (47): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
TAKING STOCK OF A BROKEN WING
If I’m bearish on a stock but wish to own shares at lower levels, would an out-of-the-money (Otm) long put broken butterfly through assignment be a win-win spread to consider? I like the idea of participating in larger dollar-priced stocks such as Google (Goog) or Apple (Aapl) for a credit with these two linked but somewhat different objectives in mind. At the same time, I am not completely sure of all the risks involved. Any light you shed on this would be greatly appreciated.
Designing an OTM broken butterfly can serve both your stated objectives of profiting on a bearish move in share price and build a long stock position at lower prices. However, there are no guarantees that if the former condition is met, the other condition of assignment will result in a profitable starting point for accumulating shares."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-47-explore-your-options-by-tom-gentile-21.gif"",""height"":""616"",""width"":""423""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-47-explore-your-options-by-tom-gentile-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-47-explore-your-options-by-tom-gentile-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov29455pr,d,"{""minimum-quantity"":""1"",""path"":""ch7j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:7 (48-49, 55): Profiting In Biotech by Mark Messier and Jeff Dos Santos"",""caption-linebreaks"":""Profiting In Biotech by Mark Messier and Jeff Dos Santos
Is biotech the way to go?
IS biotech investing the same as investing in slots? Is there any way to consistently build wealth in this sector? Many investors avoid biotechnology altogether, appalled at the prospect of stocks that can nosedive over 60% within minutes, while others are attracted to the extraordinary gains possible for companies that receive Food and Drug Administration (Fda) approval. All investors wonder: Is biotech investing a hopeless gamble? Without knowing what the Fda will decide beforehand, is there a way to trade biotech stocks with a high probability of success?
BUY THE RUMOR
It may come as a surprise, but there are ways to make low-risk trades in the biotech sector. In this article, I will explore a trading method built around a predictable anomaly of stock performance that is unique to the biotech sector.
The anomaly is the application of the “buy the rumor, sell the stock” mentality to Fda decisions. Here is the secret: Shares of biotechnology stocks tend to rise in the weeks and months prior to major Fda decisions. Let’s call it a “bio runup.” This runup allows a trader to profit from the increase in shares of companies well before any major Fda decision date, simply due to the speculative rally in the stock prior to the decision. A bio runup trader tags along for this rally prior to the announcement, but selling before the Fda makes an announcement. This is the “buy the rumor” concept in its purest form.
It’s simple and theoretically sound, sure, but does the behavior of public markets actually support this strategy? I will examine all Fda decision date runups from last year and see if there might have been a way to build wealth using the bio runup method."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-48-49-55-profiting-in-biotech-by-mark-messier-and-jeff-dos-santos-21.gif"",""height"":""620"",""width"":""431""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-48-49-55-profiting-in-biotech-by-mark-messier-and-jeff-dos-santos-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-48-49-55-profiting-in-biotech-by-mark-messier-and-jeff-dos-santos-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov295prre7,d,"{""minimum-quantity"":""1"",""path"":""ch7j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:7 (50-55): Product Review: Professional Flux Tool Set by Barbara Star, PhD"",""caption-linebreaks"":""Product Review: Professional Flux Tool Set by Barbara Star, PhD
Ben Letto, the computer programmer and creator of the Flux tools, has discovered a way for traders to view potential intraday price turning points that occur in the future. He has produced indicators based on predictive algorithms that harness the buying and selling behavior of institutional traders, revealing high-probability reversal times up to seven days in advance. In essence, he discovered a way to level the trading field by allowing the individual trader to peer through the tunnel of time and view potential price turning points that occur in the future.
The algorithms do this by looking back at thousands of bars of intraday data to find exact points in time when buying and selling patterns occurred on a regular basis. They identify the direction and magnitude of those patterns and use that information to predict future intraday market turns. Unlike fixed cycles that use measurements based on a specific number of days or data bars, the Flux indicator set detects repetitive patterns of institutional and large-scale trading behavior that tend to move the markets throughout the day.
And unlike optimization or curve-fitting, the Flux algorithms compare minute by minute and day after day of historical data to display only those patterns that repeat with enough frequency to show up clearly on a computer screen."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-50-55-product-review-professional-flux-tool-set-by-barbara-star-phd-21.gif"",""height"":""633"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-50-55-product-review-professional-flux-tool-set-by-barbara-star-phd-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-50-55-product-review-professional-flux-tool-set-by-barbara-star-phd-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov295prre8,d,"{""minimum-quantity"":""1"",""path"":""ch7j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:7 (56-59): Product Review: VisualTrader 8 by Sean M. Moore"",""caption-linebreaks"":""Product Review: VisualTrader 8 by Sean M. Moore
I last reviewed VisualTrader in 2008. The latest version, VisualTrader 8.0, remains unique in its ability to display technical information and market movement. Nirvana Systems has continued to add new features and make improvements to the software. With VisualTrader and just a few clicks of the mouse, you can determine which way the market is moving, find strong trade candidates, and execute trades.
VisualTrader is available as standalone software in three different versions: end-of-day, real-time, and professional. You will need access to a datafeed to pair with VisualTrader. There are several compatible options for both real-time and end-of-day. For this review, I used Nirvana’s OmniData feed and it worked seamlessly. With the professional version you have access to the OmniLanguage system, so you can build your own indicators and strategies, giving you even more customizing options. Earlier this year, Nirvana Systems partnered with another Austin-based company, Transcend Capital, to create a new retail brokerage, gxtrader. gxtrader features VisualTrader as the primary platform offered to clients who establish accounts at www.gxtrader.com."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-56-59-product-review-visualtrader-8-by-sean-m-moore-21.gif"",""height"":""632"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-56-59-product-review-visualtrader-8-by-sean-m-moore-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-56-59-product-review-visualtrader-8-by-sean-m-moore-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov296fufo2,d,"{""minimum-quantity"":""1"",""path"":""ch7j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:7 (60): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
CURRENCY FUTURES
What is the best way to build an intermediate- to long-term position in the currencies?
First, traders must choose a venue — whether foreign exchange, futures, or equity products such as exchange traded funds (Etfs). If you have been following this column, you likely know we have supported arguments for and against each method but lean toward the idea of currency futures.\nHere is a quick recap, but keep in mind these are highlights and do not encompass the entire argument:
Currency futures are highly regulated by the Nfa. Forex has recently fallen under the wings of the Cftc and Nfa in the US, but there is still a long way to go to get regulations in these markets up to par with those of futures.
Some forex brokers (known as dealing desks) go beyond acting as a broker, which brings buyers and sellers together. Dealing desks partake in the transaction by taking the other side of their clients’ trade, posing an obvious conflict of interest."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-60-futures-for-you-by-carley-garner-21.gif"",""height"":""616"",""width"":""423""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-60-futures-for-you-by-carley-garner-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-60-futures-for-you-by-carley-garner-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov296qaby1,d,"{""minimum-quantity"":""1"",""path"":""ch7j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:7 (61): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
REVERSING THE NEGATIVE EFFECTS
Mr. Bright, thanks for your column, I read it every month, it really helps. A while back I read about how some of your traders have taken advantage of what seemed to be a negative situation. High-frequency and subpenny trades take place with more frequency these days, and I think you said something about how to reverse the negative effects. Could you possibly go into that again, please? —coyotejk
Sure, let’s start with a quick review of what we’re addressing. Automated computer programs can and do send in high-frequency trading orders in subpenny increments. The guise is that they may offer some price improvement to the other side of the order. Much has been analyzed about the pros and cons of this type of trading. I suggest you check out www.defendtrading.com for background and continuing information about these very important aspects to trading these days."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-61-q-a-by-don-bright-21.gif"",""height"":""616"",""width"":""422""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-61-q-a-by-don-bright-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-61-q-a-by-don-bright-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov296trti4,d,"{""minimum-quantity"":""1"",""path"":""ch7j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:7 (62-70): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Edgar Kraut’s article in this issue, “A Color-Based System For Short-Term Trading.”
Code for MetaStock is already provided in Kraut’s article. Subscribers will also find the same code at the Subscriber Area of our website, www.Traders.com. Presented here is an overview of possible implementations for other software.
Traders’ Tips are provided to help the reader implement a selected technique from an article in this issue. The entries are contributed by various software developers or programmers for software that is capable of customization.
Readers will find all the code listings that accompany the following Traders’ Tips at our website, Traders.com. Provided here is some discussion of the technique’s implementation by the Traders’ Tips contributors as well as some example charts.
To locate Traders’ Tips at our website, use our site’s search engine, or click on the Traders’ Tips link from our home page. For past Traders’ Tips, click on the “Stocks & Commodities” link from our home page in the red box on the left, then click on the “Article Abstracts” link in the red box on the left, then click on the issue of interest, then on “Traders’ Tips.”"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-62-70-traders-tips-by-technical-analysis-inc-20.gif"",""height"":""624"",""width"":""449""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-62-70-traders-tips-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-62-70-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov297bofo6,d,"{""minimum-quantity"":""1"",""path"":""ch7j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:7 (76): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
Ben Graham Was A Quant: Raising The IQ Of The Intelligent Investor
Investing With Volume Analysis: Identify, Follow, And Profit From Trends
Mastering Trade Selection And Management: Advanced Strategies For Long-Term Profitability
The Naked Trader: How Anyone Can Make Money Trading Shares, 2d ed.
The Mejt System: A New Tool For Day Trading The S&P 500 Index
The Technical Analysis Course: Learn How To Forecast And Time The Market, 4th ed."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-76-books-for-traders-by-technical-analysis-inc-20.gif"",""height"":""614"",""width"":""414""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-76-books-for-traders-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-76-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov2987880,d,"{""minimum-quantity"":""1"",""path"":""ch7j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:7 (82, 78, 80-81): Calling The Tune In The Gold Market by Donald W Pendrgast, Jr."",""caption-linebreaks"":""Calling The Tune In The Gold Market by Donald W Pendrgast, Jr.
This trading system shows a glint of promise in trading the volatile precious metal.
Just about everyone seems to be aware of the long-running uptrend in the gold market, one that is now about 10 years old. Gold market traders, on the other hand, realize that the shorter-term swings and cycles in this highly emotional commodity are chaotic and unpredictable, and that a highly disciplined discretionary or mechanical trading system is an absolute must in order to make and retain trading profits. Here is a closer look at an intraday, fully mechanical trading system for gold futures.
A GOLD TRADING SYSTEM
Recently, I wrote an article based on an intraday gold futures trading system. The strategy trades the full-sized, front-month Comex gold futures contract and it showed some promise, but after much forward-testing and further optimization, I decided to lay it aside until I could learn how to garner more consistent profits in the daytrading environment. I discovered, however, that a swing trading system, one that is allowed to hold positions overnight (as needed), seemed to allow for more consistent equity growth with fewer drawdowns. Here, we’ll look at the basic code for this gold swing trading system and examine why it appears to work. We’ll also determine if the method offers promise for budding system builders and traders as they seek to work with and even enhance this simple trading method (see Figure 1)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-82-78-80-81-calling-the-tune-in-the-gold-market-by-donald-w-pendrgast-jr-20.gif"",""height"":""631"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-82-78-80-81-calling-the-tune-in-the-gold-market-by-donald-w-pendrgast-jr-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-7-82-78-80-81-calling-the-tune-in-the-gold-market-by-donald-w-pendrgast-jr-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov291leto1,d,"{""minimum-quantity"":""1"",""path"":""ch8a207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:8 (10-12): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
INTERVIEW WITH MARCUS HEITKOETTER
Editor,
In your recent interview with Marcus Heitkoetter (“Short Swings In Futures With Markus Heitkoetter,” May 2011), I noticed that when he was discussing the Bollinger Bands adjustment for the moving average, he suggests lowering the number of bars in the moving average. Then, however, the article goes on to say he adjusts them from nine to 12.\nIs this a typo? It seems that he is increasing the number of bars rather than decreasing them.
Thanks for your response. The interview was another good one.
Jmr
It is a typo. It should have read, “You should shorten the number of bars used in the moving average to something between 9 and 12.”
Heitkoetter goes on to say that he prefers to use a setting of 12 for the standard moving average.—Editor"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-10-12-letters-to-s-c-by-technical-analysis-inc-21.gif"",""height"":""619"",""width"":""428""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-10-12-letters-to-s-c-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-10-12-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov291aute,d,"{""minimum-quantity"":""1"",""path"":""ch8a207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:8 (14-31): Automated Techniques For Intraday Traders by Andrew Coles, PhD"",""caption-linebreaks"":""Automated Techniques For Intraday Traders by Andrew Coles, PhD
Find out how you can automate several time-based techniques to apply to intraday charts. In the first part of this series, we discuss the Fibonacci bar-counting technique and the Lucas number series.
\nIt’s fair to say that technical analysis has made its biggest strides in relation to price-based forecasting rather than time-based studies. Moreover, when time-based techniques are developed, they are applied to higher time frame charts. The result is that the intraday trading context has seen little exposure to time-based forecasting techniques comparable to higher time frame approaches such as the delta system, the spiral calendar, and Ermanometry.
Beyond this, a major problem in applying time-based techniques intraday is that unless they can be automated, their application demands a great deal from a trader. With a variety of screens and indicators, a daytrader’s attention is more than occupied: the last thing he needs are calculations running through his head. For higher time frames, which are forgiving of a more leisurely pace, these issues are not a concern.
In these articles, I want to do two things: first, to automate several time-based techniques so that they can be applied to intraday charts; and second, to assess their effectiveness intraday in relation to price-based technical analysis. Time-based techniques to be considered this time include the Fibonacci bar-counting technique and the Lucas number series.
FIBONACCI BAR COUNTING
The Fibonacci bar-counting technique is based on the Fibonacci number series. The numbers in the sequence are derived from the seed values zero and 1 and from the formula Fn+1 = Fn-1 + Fn. As the sequence progresses, the ratio of a number to the one before it gets closer and closer to the golden ratio, which is 1.618. Here I’ve programmed the sequence inclusive of 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987, 1597, 2584, 4181, and 6765. The bar-counting technique that derives from this sequence is well-established on higher time frame charts, especially in Elliott wave circles. John Murphy describes the technique thus:
Fibonacci time targets are found by counting forward from significant tops and bottoms. On a daily chart, the analyst counts forward the number of trading days from an important turning point with the expectation that future tops or bottoms will occur on Fibonacci days – that is, on the 13th, 21st, 34th, 55th, or 89th trading day in the future. The same technique can be used on weekly, monthly, or even yearly charts.
What about intraday bar counting? Even if it does work, it’s a tiresome procedure for a daytrader, especially when Elliott wave practitioners argue for better results when more than one bar count is taken from alternative pivots to produce coextensive time targets. It would be better if we could mechanize such a system (see sidebar, “MetaStock For Intraday Application Of Fibonacci Series”)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-14-31-automated-techniques-for-intraday-traders-by-andrew-coles-phd-21.gif"",""height"":""636"",""width"":""461""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-14-31-automated-techniques-for-intraday-traders-by-andrew-coles-phd-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-14-31-automated-techniques-for-intraday-traders-by-andrew-coles-phd-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov293trth,d,"{""minimum-quantity"":""1"",""path"":""ch8a207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:8 (34-42): Trend Thrust Indicator by Buff Pelz Dormeier, CMT"",""caption-linebreaks"":""Trend Thrust Indicator by Buff Pelz Dormeier, CMT
This indicator defines the impact of volume on the volume-weighted moving average, emphasizing trends with greater volume.
That determines a security’s value? Price is the agreement to exchange despite the possible disagreement in value. Price is the conviction, emotion, and volition of investors. It is not a constant but is influenced by information, opinions, and emotions over time. Volume represents this degree of conviction and is the embodiment of information and opinions flowing through investor channels. It is the asymmetry between the volume being forced through supply (offers) and demand (bids) that facilitates price change. Quantifying the extent of asymmetry between price trends and the corresponding volume flows is a primary objective of volume analysis. Volume analysis research reveals that volume often leads price but may also be used to confirm the present price trend.
TREND THRUST INDICATOR
The trend thrust indicator (TTI), an enhanced version of the volume-weighted moving average convergence/divergence (VW-Macd) indicator, was introduced in my book Investing With Volume Analysis. The Tti uses a volume multiplier in unique ways to exaggerate the impact of volume on volume-weighted moving averages. Like the VW-Macd, the Tti uses volume-weighted moving averages as opposed to exponential moving averages. Volume-weighted averages weigh closing prices proportionally to the volume traded during each time period, so the Tti gives greater emphasis to those price trends with greater volume and less emphasis to time periods with lighter volume. In the February 2001 issue of Stocks & Commodities, I showed that volume-weighted moving averages (Buff averages, or Vwmas) improve responsiveness while increasing reliability of simple moving averages.
Like the Macd and VW-Macd, the Tti calculates a spread by subtracting the short (fast) average from the long (slow) average. This spread combined with a volume multiplier creates the Buff spread (see Figure 1)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-34-42-trend-thrust-indicator-by-buff-pelz-dormeier-cmt-21.gif"",""height"":""633"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-34-42-trend-thrust-indicator-by-buff-pelz-dormeier-cmt-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-34-42-trend-thrust-indicator-by-buff-pelz-dormeier-cmt-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov294mayo,d,"{""minimum-quantity"":""1"",""path"":""ch8a207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:8 (44-49): Manage Your Trades With Elliott Wave by Ryan Henry"",""caption-linebreaks"":""Manage Your Trades With Elliott Wave by Ryan Henry
When should you take a position, where should you take a gain, and when should you call it quits? Here’s how you can identify entry, stop, and target levels for your trades.
The easy part of investing in stocks is getting into a trade. You study the chart, understand the company’s business and fundamentals, find your buy point, and then dive in with big expectations. But what’s next? How do you know when to take your gains off the table, or more important, when to tuck your tail and run when it goes against you?
SHOULD AND SHOULDN'T
Many traders know that you must protect your investment with a stop level, because no matter how much sweat and tears you put into your research, there will be plenty of times when it doesn’t matter and the stock goes the other way. The answer for many has been to use a trailing stop — say, 5% below their entry point. This seems like a rational conclusion because it defines your risk at a reasonable level. But who’s to say that the stock didn’t cue up a 5% pullback, just to reload for the next upleg?
Using an arbitrary target and stop level will get you arbitrary results. Hopefully, it works out in your favor, but if it doesn’t, you won’t know why or what the stock is telling us.
There’s a better way. You have to have a full understanding of your expectations from a stock move, based on what should and shouldn’t happen if the pattern being traded is the pattern you think it is.
No theory can provide you these answers as succinctly as the Elliott wave theory. When used in conjunction with Fibonacci retracement and extension levels, you have a wealth of knowledge about what a stock chart is telling us, when the time is right to take a position, where to take a gain, and when to call it quits because the pattern you thought was playing out is not.
The purpose of this article is to demonstrate how you can access this information so that there are good reasons for closing gains and taking losses at specific points. Let’s run through an actual trade to detail the process."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-44-49-manage-your-trades-with-elliott-wave-by-ryan-henry-20.gif"",""height"":""632"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-44-49-manage-your-trades-with-elliott-wave-by-ryan-henry-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-44-49-manage-your-trades-with-elliott-wave-by-ryan-henry-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov295vbuy,d,"{""minimum-quantity"":""1"",""path"":""ch8a207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:8 (50-52): The V-Bottom Buy Setup by Jamie Theiss"",""caption-linebreaks"":""The V-Bottom Buy Setup by Jamie Theiss
Profiting From Fear-Based Selloffs\nThe V-Bottom Buy Setup
While at least 90% of trades should be taken in the direction of the trend, there are also opportunities to enter and profit from countertrend trades. Here’s one setup you can take advantage of.
This article could also be jokingly titled “How To Properly Catch A Falling Knife.” While at least 90% of trades should be taken in the direction of the trend, there are occasionally legitimate opportunities to enter and profit from countertrend trades. The V-bottom climactic selloff is one. Ideally, you would want to be short when these climactic selloffs occur, but you rarely are, as they seem to come out of nowhere and for no reason.
As an example, let me show you a five-minute chart for daytrading. It is effective on most time frames and is particularly effective for swing trades using a daily chart. Try to stay away from the whippy one- and two-minute charts when using this technique, as there will be many false setups on these micro time frames.
POWER TREND OR SELLOFF?
First of all, it is important to differentiate between a power trend down and the fear-based selloff (Figure 1). The selloff has at least five consecutive red bars down. The bars also gain in size toward the end of the move as volume increases. The bars also resemble a vertical drop similar to a waterfall and show significant separation from the moving averages. Look at the distance from the moving averages in Figure 1 and the near-vertical fall of the bars."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-50-52-the-v-bottom-buy-setup-by-jamie-theiss-21.gif"",""height"":""620"",""width"":""433""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-50-52-the-v-bottom-buy-setup-by-jamie-theiss-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-50-52-the-v-bottom-buy-setup-by-jamie-theiss-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov295qaby1,d,"{""minimum-quantity"":""1"",""path"":""ch8a207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:8 (54): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
TRUE OR NOT TRUE?
I know a guy who has been trading his own money for a few years now. He daytrades commodities/futures with claims of 4% a month with return on investment (Roi) equaling 48% a year! With margin he can make twice that, he says. I’m confused because I’ve read and heard that some of the best traders make 20% per year daytrading, so is he most likely exaggerating? —Falcon
This is a really good question, on several levels. I have been telling my traders over the last 30 years to focus on making consistent profits until they make their first $5 million or so, then they can focus on return on interest.
First off, let’s sort out the phrase “How much should I expect to make. ...” We all know that we cannot expect to make anything in trading. However, none of us would ever get involved in this business if we didn’t plan on making money, would we? There really is no norm involved in trading, regardless of product, time frame, or capital considerations."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-54-q-a-by-don-bright-20.gif"",""height"":""617"",""width"":""423""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-54-q-a-by-don-bright-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-54-q-a-by-don-bright-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov295exyo2,d,"{""minimum-quantity"":""1"",""path"":""ch8a207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:8 (55): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
BULL AT A DISCOUNT?
I’ve noticed some bull call spreads trade for less than intrinsic value prior to expiration. Why is that, since it would seem like a good opportunity to buy at a discount compared to an outright call?
What you’re seeing is a function of larger extrinsic or time value in the short, higher strike call compared to the deeper long call. This causes some verticals, in particular those with one strike deep-in-the-money and the other slightly in- or out-of-the-money, appear to be trading at a discount to its intrinsic worth at expiration.
This relationship between the two makes profits harder to come by relative to an outright deep long call position as shares move up. But as expiration grows closer or if shares rally swiftly enough, the reduction in the extrinsic value of your short call will result in the spread expanding toward its maximum profit potential.
As with any spread, verticals can represent a stronger opportunity relative to an outright position. However, the determination of this value is a combination of implied and statistical volatility, market conditions, and a trader’s expectations.
At Optionetics, we would favor a vertical over a long call due to its reduction risks associated with the greeks. But we also stress the value in performing this kind of due diligence when a trader considers a position to reach an informed decision."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-55-explore-your-options-by-tom-gentile-20.gif"",""height"":""617"",""width"":""424""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-55-explore-your-options-by-tom-gentile-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-55-explore-your-options-by-tom-gentile-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov295rojo,d,"{""minimum-quantity"":""1"",""path"":""ch8a207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:8 (56-61): Robert Joiner On Managing Your Trades by J. Gopalakrishnan & B. Faber"",""caption-linebreaks"":""Robert Joiner On Managing Your Trades by J. Gopalakrishnan & B. Faber
\nRobert Joiner has been trading for a few years now, after discovering a little ebook that introduced him to another way to trading beyond the buy & hold method. In his first year of trading he lost a lot of money. After testing numerous trading strategies, he decided to developed his own. His discoveries led him to write several books and develop two video courses. Joiner started his website, http://www.start-day-trading.com, in late 2008 as a way to provide free training to people who are learning how to trade. Joiner developed strategies for trading a variety of time frames. Through Wealthpire, he leads Morning Hours Trading (a chatroom for daytraders) and Ichimoku Swing Trading (a swing trading alert service).
Stocks & Commodities Editor Jayanthi Gopalakrishnan and Staff Writer Bruce Faber interview Joiner on June 3, 2011.
Bob, tell us how you got interested in trading.
Basically, I am an entrepreneur at heart. I have spent most of my life looking for ways to make money that did not involve being someone else’s employee. I looked at stocks off and on through the years, but never got into it. The only thing I knew about stocks was sticking some money into a 401k, and I did not even manage that very much.
But I knew zilch about technical analysis. Then I did a search one day and found a little ebook on stock trading. The guy was offering free coaching along with the book, which was just crazy for the price he was selling it for, and I told him that. The guy was trying to introduce me to technical analysis, and I did not get it. It was completely over my head because I had never done anything like that before.
But I kept studying. I kept looking at the charts and doing my own technical analysis. I looked at patterns, read books, and studied online articles. But at the same time I started trading with real money. I made some good trades. And I made some terrible trades because I still did not know what I was doing. I was teaching myself by the seat of the pants because I did not have a real mentor. The guy I had bought the ebook from had tried to teach me, but I just didn’t get it. I learned, more than anything else, just by studying my own trades. I just went back and looked at my own trades over and over again, asking myself questions like, “What technical indicator made sense of this trade here?” I looked at the ones that worked, and tried to see why they did.
I did a lot of trades. Although I lost a lot of money, I learned a lot in the process too. It was in that first year I finally found this one trade that was a gap-down trade, and I played it and made about a 3% profit on a daytrade. Then I went back in my usual analysis of trades and asked myself, “Why did this trade work?” I didn’t even know what a gap-down stock was!
But I analyzed the trade and started putting together some indicators that helped me see how that pattern repeated itself in the market, which is what I had been looking for. I was looking for patterns that did that and had a high probability of doing the same thing over and over again. That is how I got started on gap stocks.
After that discovery, trading the gaps became my focus for the next year. I ended up writing a book, GapDown Profits, and that book was 90% rewritten with new insights and is now only available to annual subscribers of my chatroom.
What inspired you to write it?
I just wanted to put down stuff about gaps because I felt I had learned so much, and I did not find that much literature about trading the gaps, and nothing at all like the detailed analysis that I was doing. Manny Backus, who’s the CEO of Wealthpire, found my book, which was self-published online about gapdown profits, and he was intrigued by it. We started emailing and after about a year, we decided to start a chatroom about the gaps. I am the leader of Morning Hours Trading, which is a daytrading chatroom that is open each trading day. I’m there until about 12:30 each day. It’s been going for over two years now and has evolved into just a great group of traders.
You said you lost money in your first year of trading. What made you stick with it despite that loss?
Trading attracts a certain type of person. Often, it’s an entrepreneurial type. It’s a person who wants to be independent, and a person who is very determined. I think determination is part of it, but, as I tell my group, “You can be a determined loser.” You can be mule-headed about the whole thing and keep hitting your head on the wall and lose your shirt in trading. Determination alone is not enough. What kept me in the game was partly determination, but also getting those few good trades.\nThose good trades, where you are making decent money and you feel a rhythm to the market and your trades and you are making money, is what encourages you and makes you realize it is possible. It gives you hope. As a new trader, if every trade you did was bad, you would not last long moneywise, but you would certainly not last long in terms of emotional wherewithal and your determination.
In addition to making those few good trades and being determined, it was my analysis and reviewing the trades that made things click. Everything started to make sense to me, and that is what helped keep me in the game. But yeah, my first year was terrible, as it is for most new traders who don’t have any kind of mentoring process or a chatroom or something like that in place."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-56-61-robert-joiner-on-managing-your-trades-by-j-gopalakrishnan-b-faber-20.gif"",""height"":""621"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-56-61-robert-joiner-on-managing-your-trades-by-j-gopalakrishnan-b-faber-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-56-61-robert-joiner-on-managing-your-trades-by-j-gopalakrishnan-b-faber-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov296fufo3,d,"{""minimum-quantity"":""1"",""path"":""ch8a207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:8 (62): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
THE DOLLAR INDEX
The US Dollar Index seems to be overlooked. Are there opportunities there?
Yes! The US Dollar Index (DX) futures contract, traded on the Intercontinental Exchange (Ice), could be one of the most underrated futures products on the board. Let’s face it, traders are human and humans have an undeniable tendency to migrate toward the comfortable. Unfortunately, the dollar index is the oddball of the currency futures complex, simply because it doesn’t trade on the Cme Group with the others, and it carries different contract specifications. Nonetheless, it offers traders some attractive characteristics that can’t be found elsewhere, such as built-in diversity.
Unlike CME Group–traded currency futures, which are all paired against the US dollar in “American terms” (foreign currencies priced in dollars), the DX future is the value of the US dollar against a basket of foreign currencies. As a result, this futures contract enables speculators to trade the value of the dollar, as opposed to against a specific currency. In addition, it can be used as an effective tool to hedge risk of changes in greenback valuation for those with international stock, bond, or commodity exposure."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-62-futures-for-you-by-carley-garner-20.gif"",""height"":""620"",""width"":""433""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-62-futures-for-you-by-carley-garner-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-62-futures-for-you-by-carley-garner-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov296prre3,d,"{""minimum-quantity"":""1"",""path"":""ch8a207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:8 (64-65): Product Review: Trade Architect by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Product Review: Trade Architect by Jayanthi Gopalakrishnan
More market participants want to edge away from the buy & hold approach and take more control of their finances. To meet the needs of these self-directed investors or traders who are not interested in actively trading, TD Ameritrade has launched a web-based platform called Trade Architect. The objective of this product is to create a bridge to transition between fundamental analysis and technical analysis. The nice thing is that it is available to all TD Ameritrade account holders.
Features\nWhat caught my eye is that the features in this product are very visual. The most prominent feature on the opening screen (Figure 1), once you launch Trade Architect, is the video player that streams Cnbc news live. This is convenient, since you can always have access to financial news when you are away from home.\nBelow that is a window that displays charts of the indexes or, as in the case in Figure 1, a heat map of the various sectors. I prefer to look at the map since it gives you a quick glance at the market so you have an idea of which sectors are performing well and which aren’t. You have several options available when it comes to viewing the heat map. There are dropdown menus you can use to select what criteria you want to apply to view these maps. Each rectangle on the heat map represents an equity, and its size and color tell you how that particular stock is performing at that time."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-64-65-product-review-trade-architect-by-jayanthi-gopalakrishnan-20.gif"",""height"":""632"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-64-65-product-review-trade-architect-by-jayanthi-gopalakrishnan-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-64-65-product-review-trade-architect-by-jayanthi-gopalakrishnan-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov296qusc,d,"{""minimum-quantity"":""1"",""path"":""ch8a207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:8 (66-67): Quick Scan: Triggerpoint Trading by Technical Analysis, Inc."",""caption-linebreaks"":""Quick Scan: Triggerpoint Trading by Technical Analysis, Inc.
TriggerPoint Trading is software that implements a trading strategy based on the Wyckoff method. You download it and you need to supply the datafeeds. Three datafeed interfaces are supported: eSignal, BarChart, and Realtimedata. The cost of the datafeeds and exchange fees is in addition to the license fee for Triggerpoint Trading software.
TriggerPoint Trading utilizes two screens: a price chart with volume (Figure 1) and a list of symbols (Figure 2). The software follows Wyckoff theory and annotates the price screen with different symbols to indicate whether there is potential spring or thrust, confirmed spring or thrust, or trend change. These are mostly based on previous areas of support and resistance. If you are not familiar with Wyckoff, you can visit the Faq area on the website to get explanations. TriggerPoint Trading anticipates that new users will spend 15 to 30 minutes talking to customer service to understand how to use the information shown on the price chart."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-66-67-quick-scan-triggerpoint-trading-by-technical-analysis-inc-20.gif"",""height"":""617"",""width"":""423""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-66-67-quick-scan-triggerpoint-trading-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-66-67-quick-scan-triggerpoint-trading-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov29680tr,d,"{""minimum-quantity"":""1"",""path"":""ch8a207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:8 (68-73, 80): Traders' Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders' Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the main focus is Andrew Coles’ article in this issue, “Automated Techniques For Intraday Traders.”
Code for MetaStock for Coles’ technique for intraday application of the Fibonacci and Lucas series indicators is already provided in Coles’ article. Subscribers will also find the same code at the Subscriber’s Area of our website, www.Traders.com. Presented here is an overview of possible implementations for other software.
Traders’ Tips are provided to help the reader implement a selected technique from an article in this issue. The entries are contributed by various software developers or programmers for software that is capable of customization.
Readers will find all the code listings that accompany the following Traders’ Tips at our website, Traders.com. Provided here is some discussion of the technique’s implementation by the Traders’ Tips contributors as well as some example charts.
To locate Traders’ Tips at our website, use our site’s search engine, or click on the Traders’ Tips link from our home page. For past Traders’ Tips, click on the “Stocks & Commodities” link from our home page in the red box on the left, then click on the “Article Abstracts” link in the red box on the left, then click on the issue of interest, then on “Traders’ Tips.”"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-68-73-80-traders-tips-by-technical-analysis-inc-20.gif"",""height"":""622"",""width"":""441""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-68-73-80-traders-tips-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-68-73-80-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov297bofo7,d,"{""minimum-quantity"":""1"",""path"":""ch8a207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:8 (76): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
• Microsoft Excel For Stock And Option Traders
• What Would Ben Graham Do Now? A New Value Investing Playbook For A Global Age
• Modeling Trading System Performance: Monte Carlo Simulation, Position Sizing, Risk Management, And Statistics
• Technical Analysis: The Complete Resource For Financial Market Technicians, 2nd Edition
• Trend Qualification & Trading: Techniques To Identify The Best Trends To Trade
• The New Sell & Sell Short, 2nd Edition: How To Take Profits, Cut Losses, And Benefit From Price Declines"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-76-books-for-traders-by-technical-analysis-inc-21.gif"",""height"":""612"",""width"":""413""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-76-books-for-traders-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-76-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov29881at,d,"{""minimum-quantity"":""1"",""path"":""ch8a207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:8 (82, 81): At The Close by by Bulat Latipov"",""caption-linebreaks"":""At The Close by by Bulat Latipov
What’s Ahead For Mobile Trading?
How will current highlights develop into later ones?
\nIT all began with manual trading, when you had to send a request to a broker or be present at the exchange every time you needed to place an order. With the later development of information technologies, users adapted to the possibilities of Internet trading. The transparency of processes, minimum cost of transactions, trading right from a desktop computer, and access to various analytical tools — all these advantages made online trading a new standard for modern traders."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-82-81-at-the-close-by-by-bulat-latipov-21.gif"",""height"":""622"",""width"":""441""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-82-81-at-the-close-by-by-bulat-latipov-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-8-82-81-at-the-close-by-by-bulat-latipov-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov291tdse,d,"{""minimum-quantity"":""1"",""path"":""ch9s207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:9 (12-22): TD Sequential And Ermanometry by Andrew Coles, PhD"",""caption-linebreaks"":""Stocks & Commodities V. 29:9 (12-22): TD Sequential And Ermanometry For Intraday Traders by Andrew Coles, PhD
You can automate time-based techniques to apply to intraday charts. In the first part of this series, we discussed Fibonacci’s bar-counting technique and the Lucas number series. This time, we will examine two others: the TD Sequential and Ermanometry.
by Andrew Coles, PhD
You can automate time-based techniques to apply to intraday charts. In the first part of this series, we discussed Fibonacci’s bar-counting technique and the Lucas number series. This time, we will examine two others: the TD Sequential and Ermanometry.
\nTime-based techniques are effective and can be applied to intraday trading, but unless they are automated, they require a great deal of tending and tracking on the part of the trader. The Fibonacci and Lucas techniques, which we explored in the previous issue, can be mechanized (as seen in that article), but they will not continue to plot without further input. This is also true of William Erman’s Ermanometry, which we will look at later in this article. Meanwhile, Thomas DeMark’s TD Sequential can be automated without requiring further input, as we will see here.
TD SEQUENTIAL
In his book Day Trading Options as well as in various articles, Thomas DeMark demonstrated that his TD Sequential and TD Combo bar counting techniques are equally effective on intraday charts. However, there are many trading platforms that have not coded the indicators, and their manual calculation still presents a challenge for a busy daytrader.
It’s beyond the scope of this article to discuss DeMark’s two indicators in detail. Suffice it to say that TD Combo anticipates price exhaustion within trends, as does the countdown component of the TD Sequential. The setup component of TD Sequential focuses on the momentum component to define price ranges. Thus, if a directional move continues after the momentum component is complete, TD Countdown and TD Combo can be applied to identify areas of trend exhaustion.\nHowever, as Jason Perl stresses in his recent book about DeMark’s indicators, the momentum component is still important, since how the market responds to a setup determines whether it is range-bound. Each time price completes a setup, the price extremes are identified by a support and resistance line known as the TD Setup Trend (Tdst). If price fails to break through the Tdst, there is an opportunity to take a contrary position insofar as the market doesn’t have the momentum to start the countdown phase — that is, to break through the Tdst into a new distinct trend. This means that a mechanized version of the setup is capable of creating many interesting signals of its own."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-12-22-td-sequential-and-ermanometry-by-andrew-coles-phd-20.gif"",""height"":""191"",""width"":""144""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-12-22-td-sequential-and-ermanometry-by-andrew-coles-phd-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-12-22-td-sequential-and-ermanometry-by-andrew-coles-phd-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov292trgo,d,"{""minimum-quantity"":""1"",""path"":""ch9s207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:9 (24-30): Trading The Golden Ratio by Gareth Burgess"",""caption-linebreaks"":""Trading The Golden Ratio by Gareth Burgess
You can apply this technique to forex pairs to confirm price direction and anticipate when price will reach a certain point.
The golden ratio to chart analysis is useful, and you should try to incorporate it within your strategy wherever possible. In this article I want to discuss one simple way of doing this. I will not go into much detail here about the origins of the ratio, except to say it has been used throughout written history and perhaps before, and that it has been found within architectural designs and construction methods of the ancient Egyptian pyramids and the Greek Parthenon and can be seen in the growth and form of many plants. So it’s been around a while.
The golden ratio is certainly a number that has significance in everyday life, even if we are not always aware of it. And just like the early architects who took the ratio from nature and applied it to their structures, we as traders can take the natural occurrences of the market and apply the same golden ratio to create our own technical plan.
It is primarily the actions of the crowd that create many of the well-known chart patterns, and as a consequence of these patterns, there can be highly emotional and distraught moments in the marketplace. As a result, the response of these emotions can be seen as reflective of human nature, a response that is heightened when faced with the prospect of a loss or gain in the financial markets. The markets are reflective of human nature, and where natural occurrences happen, so can the golden ratio appear. There are many ways to use the golden ratio in the market, and here is one of the simpler applications.
APPLYING IT
For the purposes of this article I will first demonstrate the significance of this number by plotting the ratios on a graph and then show how to use it in the financial markets."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-24-30-trading-the-golden-ratio-by-gareth-burgess-21.gif"",""height"":""191"",""width"":""144""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-24-30-trading-the-golden-ratio-by-gareth-burgess-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-24-30-trading-the-golden-ratio-by-gareth-burgess-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov293fufo2,d,"{""minimum-quantity"":""1"",""path"":""ch9s207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:9 (31): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
THE DOLLAR INDEX
The US Dollar Index seems to be overlooked. Are there opportunities there?
Yes! The US Dollar Index (DX) futures contract, traded on the Intercontinental Exchange (Ice), could be one of the most underrated futures products on the board. Let’s face it, traders are human and humans have an undeniable tendency to migrate toward the comfortable. Unfortunately, the dollar index is the oddball of the currency futures complex, simply because it doesn’t trade on the Cme Group with the others, and it carries different contract specifications. Nonetheless, it offers traders some attractive characteristics that can’t be found elsewhere, such as built-in diversity.
Unlike Cme Group–traded currency futures, which are all paired against the US dollar in “American terms” (foreign currencies priced in dollars), the DX future is the value of the US dollar against a basket of foreign currencies. As a result, this futures contract enables speculators to trade the value of the dollar, as opposed to against a specific currency. In addition, it can be used as an effective tool to hedge risk of changes in greenback valuation for those with international stock, bond, or commodity exposure.
I would also argue that the US Dollar Index futures contract might be an alternative to the highly volatile and treacherous metals complex. If you ask any gold or silver bull why it is they believe metals prices will appreciate, they will likely tell you that a devaluing dollar, assuming the trend continues, will force precious metals prices higher.
If the primary argument for owning metals is the declining dollar, it might be feasible to speculate on the short side of the greenback, as opposed to playing the long side in the overly dramatic silver and gold contracts. As many traders have abruptly learned the hard way, the metals markets can be treacherous in both directions. This isn’t to say that the DX doesn’t see volatility from time to time, but in my opinion the risk exposure in this diversified index is much less than owning positions in gold and silver."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-31-futures-for-you-by-carley-garner-21.gif"",""height"":""191"",""width"":""144""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-31-futures-for-you-by-carley-garner-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-31-futures-for-you-by-carley-garner-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov293chin,d,"{""minimum-quantity"":""1"",""path"":""ch9s207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:9 (32-36): Channeling Into Forex Profits by Mohammed Isah"",""caption-linebreaks"":""Channeling Into Forex Profits by Mohammed Isah
Forex pairs are usually considered to move in defined trends. Here’s a trend-trading technique that can be applied to trading currency pairs or crosses.
For both professionals and novices to master the game of trading, they have to learn and adopt certain strategies to help them achieve consistent profitability. To do this, specific price patterns need to be identified on the price charts and utilized as one of the tools to execute trades. My focus is on price channels. I will define what a price channel is, identify its importance both in technical analysis and trading, and establish how they are formed as well as how traders can use them to better enhance their trading decisions.
WHAT IS A PRICE CHANNEL?
A price channel is a chart pattern bound by upper and lower trendlines. This pattern can occur in a downtrend and uptrend. The two lines can also be called boundaries, with the upper one acting as resistance and the lower one acting as support. Price channels can be bullish, bearish, or sideways and short, medium, or long term, depending on which time frame you are looking at.
Now that you know the basic definition of a channel, let’s turn to its characteristics.
CHARACTERISTICS OF A CHANNEL
Channeling as a trading pattern in technical analysis can be used in different ways to enhance your trading and execution. It creates trading opportunities, meaning it gives you clues as to where the market is headed in short, medium, and long terms. Channels:
a) Create trading opportunities. In a typical channel trading environment, whether in an uptrend or downtrend, a trader can take directional advantage of channels or take trades in the direction of the channel, as you will see. The advantage is that it allows you to build positions or enter trades in the direction of the channel, whether it is an uptrend or downtrend.
b) Define trends. Channels have natural characteristics of defining the trend. For example, in an uptrend a channel confirms the underlying trend of a particular currency pair. This gives traders more confidence to trade in the direction of the trend."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-32-36-channeling-into-forex-profits-by-mohammed-isah-21.gif"",""height"":""191"",""width"":""144""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-32-36-channeling-into-forex-profits-by-mohammed-isah-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-32-36-channeling-into-forex-profits-by-mohammed-isah-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov293qaby1,d,"{""minimum-quantity"":""1"",""path"":""ch9s207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:9 (37): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
SOURCE OF DATA
Hi Don, I have seen many traders who post the Nyse close imbalances in US dollars just after they have been released. Do you have any idea where they are getting this information? There must be a website out there posting them in real time. Thanks. —TradingNerd
Actually, the market-on-close imbalances are published daily at 3:45 Nyse time in number of shares, not US dollars. You can, of course, get a program to convert the shares to Usd if you like. We get our numbers from our trading platform, RediPlus (Goldman Sachs), but you can also access them from news services like Dow Jones or Reuters. Hope this helps."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-37-q-a-by-don-bright-21.gif"",""height"":""191"",""width"":""144""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-37-q-a-by-don-bright-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-37-q-a-by-don-bright-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov293stwi,d,"{""minimum-quantity"":""1"",""path"":""ch9s207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:9 (38-41): Stocks With Problems Falling Off A Cliff by Theresa Fernandez"",""caption-linebreaks"":""Stocks With Problems Falling Off A Cliff by Theresa Fernandez
For an investor, there is nothing worse than holding on to a stock and watching its price just keep going down. The news may be good, revenues may be growing, and the company’ s profitability may be encouraging. So what is going on? Not too long ago, investors could hold on through bull and bear markets to stocks that rewarded their loyalty by returning to their bull market highs once the bear got tired. They could hold on to those glamour or blue-chip stocks because those tradables would always come back. And as they waited patiently for their stocks to come back, investors would always count on those dividends. One way or another, they couldn’t lose.
BUT TIMES, THEY ARE CHANGING
American International Group (AIG) was such a stock. From 1984 the stock exploded to a high of $157.19 in July 1997 after splits. Aig has paid dividends from 1992 to 2008, with yields averaging 8.9% from 2000 to 2006.
Then there was Citigroup (C). The merger between Citicorp, the holding company of Citibank, and Travelers Group in 1998 created a $140 billion firm with assets of almost $700 billion. Although C had not displayed spectacular performance through the years, investors could rely on their dividends, which were paid every year from 1988 to 2007, with an average yield of 1.4% over the 1988–2007 period.
And what about General Motors (GM)? Since its founding in 1908, GM grew to the world’s second-largest automobile manufacturer in terms of sales. While its stock price was so-so over the 1962–2007 period, investors could always rely on dividends; GM has been paying them since 1985 to 2007, with yields averaging 5.0%. For decades, GM was secure that their investment had nowhere to go but up. Investors were unmoving in their belief that “as goes GM, so goes the stock market.”
PRICES CAN PLUMMET
All three stocks had in common a “falling off a cliff” pattern that became apparent in their charts months before their troubles became public. The pattern has the look of a mountain that rises ever higher, then slopes lower, and suddenly drops over a period of one to eight weeks. Price action just before the cliff is on average volume, drops off on significantly higher volume, sometimes displaying the heaviest volume at the bottom of the cliff."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-38-41-stocks-with-problems-falling-off-a-cliff-by-theresa-fernandez-21.gif"",""height"":""191"",""width"":""144""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-38-41-stocks-with-problems-falling-off-a-cliff-by-theresa-fernandez-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-38-41-stocks-with-problems-falling-off-a-cliff-by-theresa-fernandez-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov294intr,d,"{""minimum-quantity"":""1"",""path"":""ch9s207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:9 (42-47): Intraday Trading with 100 Shares by Josh DiPietro"",""caption-linebreaks"":""Intraday Trading with 100 Shares by Josh DiPietro
With this intraday trading strategy, you can consistently profit with 100-share blocks.
Since the birth of the American stock market, one pattern has always recurred: Major booms follow sharp crashes. The best-known example began on Black Thursday, October 24, 1929, the day when the market started to plummet. During the following three years, across-the-board losses came to almost 90%. In time, however, the numbers began to rise again, and in the end they gained healthy precrash levels.
That phenomenon has repeated several times since, most recently in this millennium’s first decade. The markets broke the 2000 highs in late 2007, and that came after a five-year recovery from the 2002 bottom.
And now, we’re in for it again. The Dow Jones Industrial Average (Djia) has just struggled back up from another historic drop that began in early 2008. That year, among other calamitous events, Bear Stearns put its head on the chopping block and filed for bankruptcy. The market headed south. Later, both novice traders and the public found out why, but the market had changed too fast, and the lessons learned came too late.
So how do we capitalize on these huge drops and seemingly guaranteed recoveries? How can we predict outcomes ahead of time? Is it foolish to even consider? How does an independent daytrader, a beginner or a pro, pick stocks to buy or short? How many shares? And when exactly does he take profit? I guess he could tune into Cnbc and listen to the talking heads…but no. Good luck with that.
THERE'S NO CRYSTAL BALL
If we all had answers to the golden goose questions, we would be billionaires. All you’d have to do was bet the farm on those answers. For example, since the recent market bottom back in March 2009, the Djia has gained over 5,000 points. If in early 2009 you had put 100% of your portfolio into stocks like Aapl or Amzn, by now you would have been a very happy camper.
I currently trade Amzn, but I haven’t made millions of dollars. I didn’t get rich holding Amzn for a 500% return, because I never hold positions overnight. I didn’t buy Amzn in 2007. At the time it had an average price of $40. Now it hovers around $200. Because I’m an intraday trader, in 2007 I had no way of knowing that in less than seven months, Amzn would climb from $40 to above $100. Then and now, the only stock trends I am certain of are what I see right now."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-42-47-intraday-trading-with-100-shares-by-josh-dipietro-21.gif"",""height"":""191"",""width"":""144""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-42-47-intraday-trading-with-100-shares-by-josh-dipietro-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-42-47-intraday-trading-with-100-shares-by-josh-dipietro-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov29462th,d,"{""minimum-quantity"":""1"",""path"":""ch9s207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:9 (48-53, 62): Through The Forex Trenches With Wade Hansen by J. Gopalakrishnan & B. Faber"",""caption-linebreaks"":""Through The Forex Trenches With Wade Hansen by J. Gopalakrishnan & B. Faber
Wade Hansen has been involved in investor education his entire career. Most recently, he cofounded Learning Markets and Pfx Global (Profiting With Forex) to help individual investors learn to take control of their investment portfolios. He has also created investment courses in stock, options, futures, and forex trading for Yahoo! Finance, Saxo Bank, and thinkorswim Group.
Hansen, who is actively involved in managing his own stock, option, and forex portfolio, is the coauthor of three books, the most recent of which are All About Forex Trading and All About Investing In Gold. He has also written articles for Forbes, Yahoo! Finance, Stocks & Commodities, and Nasdaq.com. His investment commentary and educational articles are featured across the web and at www.learningmarkets.com.
S&C Editor Jayanthi Gopalakrishnan and Staff Writer Bruce R. Faber interviewed Hansen on June 27, 2011.
Wade, how did you get started in trading currencies?
I started trading about 10 years ago. I had been invested in stocks since the mid-1990s. Right after 2000, trading currencies was just starting to become a little more mainstream in the US. I think it was through an early Fxcm account I had where I was just trying to find good resources for currency trading information. There just was not much out there. I was already involved in stock trading. I was a registered representative for a financial services company, and I decided to shift my focus away from stocks into currency trading for a while.
I did a lot of studying and research while I was trading, and eventually ended up with a few trading partners. We started a commodity trading advisory and then one of my partners, John Jagerson, and I wrote our first book, Profiting With Forex. It came out in 2006. Our second forex trading book just hit the shelves.
Which one is that?
It is called All About Forex Trading. I started as an individual trader, moved on, and started a commodity trading advisory. We wrapped that up a year or two ago, as we decided we did not want to deal with regulatory overhead and oversight anymore, and have stuck with individual education since that time.
You made a transition from equities to currencies. What led you to move away from trading equities?
I liked looking at the bigger picture in investing. I wanted to see what was happening on a global scale with money flows and interest rate differentials, and how politics played a role.
An interesting thing about the currency universe is that — especially if you were looking for currencies that have a large degree of liquidity — you are limited to a relatively small pool. If you want to dig down into some of the smaller currencies, you can, and there are plenty of them out there, but there are not a lot of big ones that have a lot of trading volume. It is easier to keep your arms wrapped around 98% of the forex market than it is to keep your arms wrapped around 98% of the listed stocks out there.
Are there specific currency pairs you favor over others?
It depends on what is happening at any given moment. Lately, the euro/Swiss franc has really been on a tear. Really, anything crossed with the Swiss franc has been moving. For a while, when we were coming out of the downturn, currencies were a great place to be. The aussie was great to watch. Before that, when the carry trade was in full swing, anything crossed with the yen, especially currencies that came from countries with higher interest rates, like the aussie/yen, the kiwi/yen, and the pound/yen, was a favorite for a lot of traders.
Since you look at the global aspects when it comes to trading currencies, what, in your opinion, moves the currency markets the most?
Again, that depends on what is happening in the markets. There is one fundamental factor out there that is always the trump card for the currency markets, and that is fear. If global fear levels rise like we saw in 2007 and 2008, we see a lot of people moving toward safe-haven currencies. The US dollar is one of them not because people really like the dollar, but because people really like US Treasury notes, and you have to buy those in US dollars. So if you are outside of the US and you want to buy Treasuries, you have to convert your currency into US dollars, and then buy the T-notes. So that increases demand for the US dollar."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-48-53-62-through-the-forex-trenches-with-wade-hansen-by-j-gopalakrishnan-b-faber-21.gif"",""height"":""191"",""width"":""144""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-48-53-62-through-the-forex-trenches-with-wade-hansen-by-j-gopalakrishnan-b-faber-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-48-53-62-through-the-forex-trenches-with-wade-hansen-by-j-gopalakrishnan-b-faber-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov295prre9,d,"{""minimum-quantity"":""1"",""path"":""ch9s207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:9 (54-55): Product Review FXCM Strategy Trader by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Product Review FXCM Strategy Trader by Jayanthi Gopalakrishnan
Given that the desktop computer may be a thing of the past very soon, it is only logical that software developers come up with products that are conducive to those on the go. Obviously, traders are not going to be left behind as we can see with the increase in the number of platforms that are offering automated trading strategies, or “robotic trading,” as I prefer to call it.
FXCM, a well-known forex broker, has recently released FXCM Strategy Trader (Fxcm ST), a platform that does exactly that. Installation and download is relatively quick and painless. After downloading and installing the product, the first thought that crossed my mind was that it resembled another popular forex trading platform. But there are a few features that are unique to FXCM ST.
FEATURES
When you open the program, the first thing you see is a price chart of a currency pair, a dealing rates window, navigation window, and an account management window (Figure\n1). There are a few built-in workspaces that you can start with. The dealing rates window displays live streaming quotes (bid/ask), spreads, pip costs, and minimum margin rates along with a few other choices. You can access these by right-clicking anywhere on the dealing rates window. To view a chart of any currency pair, you just have to drag and drop to the chart window.
From the account management window, you can access all your FXCM accounts. I should mention you can trade multiple accounts at the same time."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-54-55-product-review-fxcm-strategy-trader-by-jayanthi-gopalakrishnan-21.gif"",""height"":""191"",""width"":""144""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-54-55-product-review-fxcm-strategy-trader-by-jayanthi-gopalakrishnan-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-54-55-product-review-fxcm-strategy-trader-by-jayanthi-gopalakrishnan-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov295qusc,d,"{""minimum-quantity"":""1"",""path"":""ch9s207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:9 (56-57): Quick Scans: Marketsmith by Sean Moore"",""caption-linebreaks"":""Quick Scans: Marketsmith by Sean Moore
MarketSmith is the next generation of the Daily Graphs investment research service, which was begun in 1972 by Investor’s Business Daily founder William J. O’Neil. MarketSmith is a stock and mutual fund research tool that utilizes the wealth of market data available in the O’Neil Database, which is commonly used by institutional investors.
The MarketSmith tool runs in a web browser environment so it can be accessed anywhere that an Internet connection is available. With MarketSmith, we can generate, organize, and evaluate investment ideas, and then share them with others in the MarketSmith community.
The MarketSmith tool (Figure 1) is well organized with several slide-out panels. The three main modules are the Screener, the List Manager, and the chart."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-56-57-quick-scans-marketsmith-by-sean-moore-20.gif"",""height"":""191"",""width"":""144""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-56-57-quick-scans-marketsmith-by-sean-moore-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-56-57-quick-scans-marketsmith-by-sean-moore-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov295prre10,d,"{""minimum-quantity"":""1"",""path"":""ch9s207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:9 (58-62): Product Review: Neuroshell by Dennis Peterson"",""caption-linebreaks"":""Product Review: Neuroshell by Dennis Peterson
NeuroShell Trader (NT) is highly sophisticated software that is much more than just a way to utilize neural nets. NeuroShell Trader also deserves to be recognized for having well-designed interfaces that let the trader explore ideas with ease and speed. You can create trading strategies without doing any programming, or you can ask NeuroShell Trader to optimize over a range of parameters and do it in a minute or so. This newest version adds two new features that current users and traders in general have been looking for: position sizing and pyramiding. Thus, the ability to optimize over a range of parameters in a short amount of time is especially helpful when position and pyramid sizes are added to the list of items to be optimized.
THE WIZARDS
Two interfaces within NT are the Prediction Wizard and the Trading Strategy Wizard. For each you’ll go through a series of screens, some of which you’ll need to make a choice about before going to the next screen, but there will be others where you’ll probably use the defaults. Navigating has a couple of common threads for either wizard, as illustrated in Figure 1. Not only are they the same size, but the button locations at the bottom are the same for both. The only difference in the button labeling is that one button reads “Modify Prediction Parameters,” while the other one reads “Modify Strategy Parameters.” If you need an indicator(s), you’ll deal with the same Indicator Wizard, whether you are building a trading strategy, prediction, or indicator. Thus, there are three wizards: indicator, prediction, and trading strategy, and the wizards sometimes share similar screen formats to ease learning."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-58-62-product-review-neuroshell-by-dennis-peterson-20.gif"",""height"":""191"",""width"":""144""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-58-62-product-review-neuroshell-by-dennis-peterson-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-58-62-product-review-neuroshell-by-dennis-peterson-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov296trti5,d,"{""minimum-quantity"":""1"",""path"":""ch9s207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:9 (64-70): Traders' Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders' Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Andrew Coles’ article in this issue, “TD Sequential And Ermanometry For Intraday Traders.”
MetaStock code for the TD Setup and Ermanometry techniques is already provided in Coles’ article. Subscribers will also find the same code at the Subscriber Area of our website, www.Traders.com. Presented here is an overview of possible implementations for other software.
Traders’ Tips are provided to help the reader implement a selected technique from an article in this issue. The entries are contributed by various software developers or programmers for software that is capable of customization.
Readers will find all the code listings that accompany the following Traders’ Tips at our website, Traders.com. Provided here is some discussion of the technique’s implementation by the Traders’ Tips contributors as well as some example charts.
To locate Traders’ Tips at our website, www.traders.com, use our site’s search engine, or click on the Traders’ Tips link from our home page. For past Traders’ Tips, click on the “Stocks & Commodities” link from our home page in the red box on the left, then click on the “Article Abstracts” link in the red box on the left, then click on the “Traders’ Tips” button underneath an issue of interest. Or click on “S&C Magazine” from our home page and then click on “Archive.”"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-64-70-traders-tips-by-technical-analysis-inc-20.gif"",""height"":""570"",""width"":""431""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-64-70-traders-tips-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-64-70-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov297exyo,d,"{""minimum-quantity"":""1"",""path"":""ch9s207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:9 (71): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
MAKING BETTER \""CENTS\"" OF A SALE
Is selling an at-the-money (Atm) or out-of-the-money (Otm) option really better than selling a contract that has more premium attached to its market price due to its intrinsic worth?
That’s a tricky one. As for which type of sale constitutes the “better” one, we do know selling extrinsic or time premium associated with Atm or Otm has the advantage of time decay. All options do lose 100% of their extrinsic value by expiration. However, whether a contract lands in or out of the money and by what amount can prove to be the more important factor in calculating actual profits and losses.
At the end of the day, it does a trader little good if they’ve sold an Atm contract for, say, $1.25 with 100% extrinsic value if it loses all that value but is worth $10 intrinsically come expiration. Bottom line, if the trader failed to hedge the contract’s delta risk as the rise in shares created real value for either the short call or short put, he or she would be out $8.75."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-71-explore-your-options-by-tom-gentile-20.gif"",""height"":""191"",""width"":""144""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-71-explore-your-options-by-tom-gentile-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-71-explore-your-options-by-tom-gentile-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov297bofo8,d,"{""minimum-quantity"":""1"",""path"":""ch9s207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:9 (77): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
A Decade Of Delusions: From Speculative Contagion To The Great Recessions
All About Investing In Gold
The Liberated Stock Trader
Managed Futures For Institutional Investors: Analysis and Portfolio Construction
MIDAS Technical Analysis
Secrets Of A Pivot Boss: Revealing Proven Methods For Profiting In The Market"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-77-books-for-traders-by-technical-analysis-inc-20.gif"",""height"":""191"",""width"":""144""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-77-books-for-traders-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-77-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov298leto4,d,"{""minimum-quantity"":""1"",""path"":""ch9s207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:9 (8-11): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
\nCOLOR-BASED SYSTEM FOR SHORT-TERM TRADING
Editor,
The color-based system presented by Edgar Kraut in his July 2011 article (“A Color-Based System For Short-Term Trading”) looked promising and simple. However, using the Excel spreadsheet example given in your Traders’ Tips section in that same issue, I recoded it into Mechanica Professional, but I did not get anything close to the performance shown in the article. I’m fairly sure I coded it correctly because I get the same color bars as those shown in Figure 6 in the article and the same number (98) of bars (45 green bars and 53 blue bars) in the first trading period (4/17/2002 to 4/17/2003) shown in the article’s Figure 8. So it seems that there must be something wrong with my trailing 1% exit.
Since closing prices are used to color the bars and enter the trade, I assume that the author means to enter on the open the next day and use a 1% trailing stop, but he doesn’t say whether that stop is based on the close of the previous day or his open fill price. For there to be 98 trades, that means every trade had to have been entered and exited on the same day, and I don’t see how that could happen with a 1% trailing stop 98 out of 98 times, especially using intraday data.
I would appreciate it if the author clarified his exit and how he managed to get 98 one-day trades with a 1% trailing stop.
Bob Dannegger
See also the next letter and reply. —Editor"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-8-11-letters-to-s-c-by-technical-analysis-inc-20.gif"",""height"":""191"",""width"":""144""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-8-11-letters-to-s-c-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-8-11-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov29880at2,d,"{""minimum-quantity"":""1"",""path"":""ch9s207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 29:9 (82, 80-81): At The Close: Trading Time Frames In Forex by John Devcic"",""caption-linebreaks"":""At The Close: Trading Time Frames In Forex by John Devcic
A five-minute chart and a one-hour chart can tell you very different things about the same tradable. Which one is right for you?
Those who are new to forex trading never realize how dramatically different things look when they simply change the time frame. A standard time frame for almost any chart will either be a one-hour or a five-minute time frame. Neither chart will look the same, even though the prices will be exactly the same. There is no better way to illustrate this point than to view two drastically different charts. The currency pair would be the same, but the charts tell a very different story.
In Figure 1, you see a five-minute chart of the Eur/Usd for July 7, 2011. There are no other indicators or lines of any kind except the line drawn by the software that points out a level of resistance at 1.4362. By looking at this chart we can see a strong move to the upside has just occurred. Price is currently testing its resistance level.
The one-hour chart of the same currency pair in Figure 2 is a different picture indeed. The software drew a line along the 1.4361 level almost exactly the same as the 1.4362 line of resistance it drew on the five-minute chart. Clearly, the Eur/Usd has been in the midst of a downtrend since July 3, 2011.
While the differences between the five-minute and one-hour chart are noticeable immediately, the reason may not be. We need a better understanding of these time frames."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-82-80-81-at-the-close-trading-time-frames-in-forex-by-john-devcic-20.gif"",""height"":""191"",""width"":""144""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-82-80-81-at-the-close-trading-time-frames-in-forex-by-john-devcic-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-29-9-82-80-81-at-the-close-trading-time-frames-in-forex-by-john-devcic-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov301waev,d,"{""minimum-quantity"":""1"",""path"":""ch1j205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:1 (10-14) Walk-Forward Evaluation by Donald W Pendergast Jr"",""caption-linebreaks"":""Walk-Forward Evaluation by Donald W Pendergast Jr
When you design a trading system, you want to see an extensive set of walk-forward tested results. Here’s how you can do that.
Every system trader wants to see a healthy set of historically backtested results that will engender a sense of confidence before they begin to consider trading a given system with real money. But the truly savvy system trader will also want to see an extensive amount of forward-tested results from the same system using previously unseen data. A trading system that passes muster in both back- and forward-test mode (also known as “in sample” and “out of sample” [OOS] modes, respectively) has a far more promising future in the real world of trading than one that simply looks good when backtested over historical data. Every serious system trader should demand that both sets of test data be made available to them before they fork over their hard-earned money for any system, no matter who the developer is.
In Figure 1 you see the forward-tested results for an emini stock index futures trading system that I developed last year. I originally tested it on six months of historical data and after fine-tuning it, I decided to run it in forward-test mode for the long haul to see if the underlying market concept of the system was truly valid.
To do so, at the close of each trading session (0930 to 1600 Eastern time, Monday through Friday) I manually entered the trades into Adaptrade’s Market System Analyzer (MSA) using the commission, slippage, contract size, and starting balance you see on the chart in Figure 1. It was been a long and grueling test, but after 229 trades in OOS mode, it appears that the system has proved itself, and despite having endured some lengthy periods of drawdown and sideways choppiness, it has gone on to make new equity highs in recent trading action."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-10-14-walk-forward-evaluation-by-donald-w-pendergast-jr-20.gif"",""height"":""624"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-10-14-walk-forward-evaluation-by-donald-w-pendergast-jr-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-10-14-walk-forward-evaluation-by-donald-w-pendergast-jr-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov301buop,d,"{""minimum-quantity"":""1"",""path"":""ch1j205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:1 (16-23): Buying The Optimal Moneyness by Giorgos Siligardos, PHD"",""caption-linebreaks"":""Buying The Optimal Moneyness by Giorgos Siligardos, PHD
The market is ready to make a move. You feel it. You see it. It is time to buy options. What moneyness will you choose? In, at, or out? Here’s part 1 of 2.
he first time we encounter the derivatives market, we are fascinated about the potential of big and quick profits buying out-of-the-money (OTM) options and selling them before expiration. Soon we discover that there are times when although we may be correct about the market trend, we nevertheless lose money. Even if we make money, we wonder if we could have better results using options of other “moneyness.”\nIn this first part of two, I will try to present in a clear and methodical way the three main forces applied to option prices when the underlying instrument moves in the options’ favor. I will explain the deficiencies of the classic sensitivity gauges — delta, vega, and theta — with regard to the practical aspects of option trading for the non–market makers, and employ the elasticity, %vega and %theta functions, for a clearer understanding of these forces.
ON STOCK MARKET INDEX OPTIONS
Unless stated otherwise, all options mentioned are considered European with a stock market index as their underlying. Such options are liquid (and consequently more fairly priced than simple stock options) and perfect for simple modeling purposes (due to absence of dividends and early execution concerns).
DELTA TO MEASURE SENSITIVITY
The simplest greek is delta. Delta measures the sensitivity of an option to a change in its underlying instrument. For example, a delta of 0.3 roughly means that a $1 change in the underlying results in a $0.30 change in the price of the option. In Figure 1, you can see the textbook graphs of the fair prices of European calls and puts along with their corresponding deltas. Judging from Figure 1, the in-the-money (ITM) options have absolute deltas closer to 1, which makes them closely related to the underlying, and OTM options have deltas closer to zero, so they are insensitive to small changes of the underlying.
Though true, this is somehow misleading for our purposes because delta does not measure sensitivity in percentage terms, even though the trading performance is measured that way. If you have an ITM call that costs $40 and an OTM call that costs $5 and their deltas are 0.9 and 0.2, respectively, then a $1 increase in the price of the underlying results in $40.90 (a 2.25% rise in price) and $5.02 (a 4% rise in price) for the ITM and OTM calls. The ITM call gained more in absolute terms, but the OTM call gained more in percentage terms. Had you paid $40 to buy one ITM call, you would gain $0.90. Had you paid the same $40 to buy eight OTM calls, you would gain eight times $0.20, which is $1.60.
SEMILOGARITHMIC CHARTS OF FAIR VALUES
Instead of looking at arithmetic charts for fair values, it is more indicative to look at semilogarithmic charts. In the upper charts of Figure 2, you can see the fair values of options in semilogarithmic charts (the y-axis is logarithmically scaled to show changes from a percentage perspective). You can see that the OTM options are more sensitive in percentage terms than the ITM options are to momentary trends of the underlying."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-16-23-buying-the-optimal-moneyness-by-giorgos-siligardos-phd-20.gif"",""height"":""618"",""width"":""437""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-16-23-buying-the-optimal-moneyness-by-giorgos-siligardos-phd-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-16-23-buying-the-optimal-moneyness-by-giorgos-siligardos-phd-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov302rema1,d,"{""minimum-quantity"":""1"",""path"":""faarfr204"",""ysw-page-title"":""Stocks & Commodities V. 30:1 (24-28): Reversing MACD by Johnny Dough"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-24-28-reversing-macd-by-johnny-dough-29.gif"",""height"":""180"",""width"":""132""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-24-28-reversing-macd-by-johnny-dough-30.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-24-28-reversing-macd-by-johnny-dough-31.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov302rema,d,"{""minimum-quantity"":""1"",""path"":""ch1j205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:1 (24-28): Reversing MACD by Johnny Dough"",""caption-linebreaks"":""Reversing MACD by Johnny Dough
These two functions complement the MACD and can be used to calculate the price value of a specific MACD level and the price value that will cause the MACD to change direction. Find out how you can apply it to your trading.
Moving average convergence/divergence (MACD) created by Gerald Appel is probably one of the more popular momentum oscillators in use today. It is calculated using two exponential moving averages (EMAs) of different lengths and is the value of the shorter (fast) period MACD less the value of the longer (slow) period EMA. MACD fluctuates above and below the zero value where the moving averages cross.
In Giorgos Siligardos’ article “Reverse Engineering RSI,” he showed that the reverse-engineered relative strength index (RSI) can help determine the following time period’s closing price using the value of the oscillator. And in the article “RSI Bands,” François Bertrand showed overlaying RSI overbought/oversold levels on the price chart.
I will show the calculation of the price value of a specific MACD level and the calculation of the price value that will cause the MACD to change direction. These values in relation to price can then be shown by overlaying them on the price chart. Price charts and code shown here are from the AmiBroker charting package.
"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-24-28-reversing-macd-by-johnny-dough-23.gif"",""height"":""617"",""width"":""452""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-24-28-reversing-macd-by-johnny-dough-27.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-24-28-reversing-macd-by-johnny-dough-28.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov303guto,d,"{""minimum-quantity"":""1"",""path"":""ch1j205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:1 (30-34): A Guide To Forex Arbitrage by Joseph James Gelet, EES Research Team"",""caption-linebreaks"":""A Guide To Forex Arbitrage by Joseph James Gelet, EES Research Team
What should traders understand about arbitrage as it pertains to the forex market?
Foreign exchange arbitrage is a hotly debated topic in the forex community with many unknowns, as successful arbitrageurs may not have the incentives to disclose their methodology until after it is no longer effective. Since the concept of arbitrage is so intriguing, traders are attracted to it but do not have resources to find quality unbiased information on the subject. We will discuss some of the most important aspects that traders should understand about arbitrage as it pertains to the FX market.
FX VERSUS OTHER MARKETS
Forex markets are not traded on an exchange; forex is an over-the-counter (OTC) spot market where participants exchange one currency for another. Since there is no exchange, the price that one bank may quote for an FX rate may be different from that of another bank.
However, with technological developments such as the increase of Internet speeds, computing power, and pricing algorithms, FX prices can be obtained from multiple sources. Further, since banks also trade with multiple counterparties, a close to market price can be created. This means the difference in price between different FX liquidity pools could be minimal. Price discrepancies may only exist for a minuscule length of time (in fact, measured in milliseconds), and it is questionable whether these discrepancies provide ample opportunity for profit."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-30-34-a-guide-to-forex-arbitrage-by-joseph-james-gelet-ees-research-team-20.gif"",""height"":""614"",""width"":""444""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-30-34-a-guide-to-forex-arbitrage-by-joseph-james-gelet-ees-research-team-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-30-34-a-guide-to-forex-arbitrage-by-joseph-james-gelet-ees-research-team-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov303qaby,d,"{""minimum-quantity"":""1"",""path"":""ch1j205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:1 (35): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
ABOUT THE TRANSACTION TAX
I keep seeing online discussions of the new, proposed transaction tax. The things I have read make it seem like no big deal, a number around a quarter of 1% for each trade. I can see active traders paying a bit extra, but isn’t this just another cost of doing business? What are your thoughts? — fxguyandgal
Thanks for your insight over the years. I read a discussion of this new transaction tax that is being proposed. Will this have an effect on your traders? My broker hasn’t given us any news regarding this at all. — tradethemall
I have received several inquiries about this proposed transaction tax. The tempo on this tax has picked up since the European community has jumped on the wagon. My friends in the industry think it is inevitable, just a matter of how much, when, and who’s going to be affected."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-35-q-a-by-don-bright-20.gif"",""height"":""620"",""width"":""431""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-35-q-a-by-don-bright-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-35-q-a-by-don-bright-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov303goan,d,"{""minimum-quantity"":""1"",""path"":""ch1j205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:1 (36-41): Gold And The European Debt Crisis by Markos Katsanos"",""caption-linebreaks"":""Gold And The European Debt Crisis by Markos Katsanos
Ever since the Swiss franc was pegged to the euro, gold became the only safe haven investment in times of crisis. Here is a system to profit from the next crisis.
The value of gold has been subject to intense debate for centuries. London financier Nathan Rothschild once commented that he only knew of two men who really understood the true value of gold, an obscure clerk in the basement vault of the Banque de Paris and one of the directors of the Bank of England. And unfortunately, they disagreed.
Gold is a precious metal with many faces and multiple personalities, and trying to evaluate its intrinsic value can be difficult, since it can switch focus very quickly. When a crisis occurs, fear becomes the predominant factor, driving gold prices higher, eclipsing all other correlations.
In Figure 1, I calculated the yearly correlation between gold and various related assets. You can see that gold had been moving in lockstep with equities and the whole commodity complex until a major change occurred in 2011. The correlation with the CRB index from a strong positive turned negative, while the correlation with equities from a moderate positive went to a strong negative. Even the traditional correlation with the gold mining group broke down and the negative correlation with the dollar weakened dramatically.
In the summer of 2011, gold rose to multiyear highs as concerns about the European debt crisis and the risk of contagion pushed gold’s safe-haven asset and currency hedge status to the front. Note the correlation with European banks for the Dow Jones Eurostoxx bank futures (FESB) and Italy’s Unicredit Bank, which rose to a strong ‑0.90 in 2011. At the end of October 2011, European leaders agreed on a plan to stem the debt crisis by expanding the European Financial Stability Facility (EFSF) to €1 trillion, recapitalizing banks and prompting bondholders to accept a 50% haircut on Greek debt."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-36-41-gold-and-the-european-debt-crisis-by-markos-katsanos-20.gif"",""height"":""612"",""width"":""434""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-36-41-gold-and-the-european-debt-crisis-by-markos-katsanos-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-36-41-gold-and-the-european-debt-crisis-by-markos-katsanos-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov304intr,d,"{""minimum-quantity"":""1"",""path"":""ch1j205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:1 (42-47): Interview: Trading With John Joseph by G. Brendan Burden"",""caption-linebreaks"":""Interview: Trading With John Joseph by G. Brendan Burden
May Your Expectations Be Realistic
John Joseph can tell you first-hand what the difference is between academia and the real world of trading, because he had his ups and downs when he decided to make that transition from the ivory tower to the trading arena. Joseph, an experienced trader, speaker, and educator with five years of experience teaching mathematics at the University of Massachusetts (where he was nominated for the Distinguished Teaching Award), is one of the rising stars in the TradeStation community. He earned a bachelor’s degree in mathematics and biology with a minor in computer science, and earned a master’s in mathematics. There’s a big difference between life as a trader and life as a teacher, and you have to make sure that your expectations are realistic, as he learned.
Joseph is president and founder of The SEMA4 Group LLC, an NFA-member CTA with more than $35 million under management, and is a portfolio manager with LaSalle Street Investment Advisers. He also serves as president of NextDimension Creative Technologies LLC, a firm offering trading-related software and services.
John Joseph was interviewed by STOCKS & COMMODITIES contributor G. Brendan Burden.
John, how did you first get interested in trading?\nI was in graduate school and assigned an extra course to teach. I wanted to learn to do it right, so I started to look at the stock market and decided to practice. My first trade was in January 2000. I started off as a discretionary trader, but that didn’t work too well.
Why not?
I traded too little. That was right at the height of the dotcom bubble and I got involved with someone who owned a brokerage firm. The trading style at the time was to find a small tech company and hold onto it until it went up by a factor of 10 and then you sold it. Basically, there was no such thing as exits or risk management. It was just a matter of finding a stock that you thought would go up and wait.
What happened with that first trade?
It went up then down fast and that was that. So I came out with a loss. I had left graduate school to go work for him and three weeks after that, his brokerage shut down. This made me conclude that trading could be really dangerous. He had been in business for 20 years and within three weeks of my arriving there, he went belly up. I was employee no. 2. It was quite an experience.
How long did it take for you to get back into trading after that?
Three years. I got a job as a product manager and I was doing a lot of traveling, which meant a lot of time in hotels and on airplanes and sitting in airports not doing much. I was responsible for products related to enterprise document management, like online bill payments. It had nothing to do with trading. Anyway, I purchased TradeStation and started looking at systems. Some of them started to work fairly well, and that’s when I decided to leave my job and become a commodity trading advisor (CTA) and full-time trader.
That’s quite a step. How did you get to the point where you gained the confidence to leave your job?
I started backtesting systems and extrapolating forward the results. But I didn’t know what I didn’t know. I had more balls than brains. If I knew then what I know now, I wouldn’t have done it."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-42-47-interview-trading-with-john-joseph-by-g-brendan-burden-20.gif"",""height"":""624"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-42-47-interview-trading-with-john-joseph-by-g-brendan-burden-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-42-47-interview-trading-with-john-joseph-by-g-brendan-burden-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov304prre,d,"{""minimum-quantity"":""1"",""path"":""ch1j205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:1 (48-51): Product Review: Barrie Hetirachi's Five Point Pattern by Dennis D. Peterson"",""caption-linebreaks"":""Product Review: Barrie Hetirachi's Five Point Pattern by Dennis D. Peterson
The Five Point Pattern is part of the Wave59 drawing tools. This drawing tool was developed under the guidance of Barrie Hetirachi, who has 20-some years of experience with the markets, and worked with Earik Beann, the Wave59 designer/creator/developer, to create something that likely will expand your trading horizons. This particular drawing tool set, which used to be part of the Wave59 price/time tool set, is one you might pass over if it weren’t for Hetirachi’s comprehensive explanation of the use of the tool, and once you hear it, you can’t help but be impressed.
The name “Five Point Pattern” comes from an adaptation of a technique first published in H.M. Gartley’s 1935 book Profits In the Stock Market. A bullish or bearish Gartley pattern is sometimes referred to as the “222” pattern.
You can find a number of explanations of the Gartley pattern on the Internet (as well as software that incorporates some aspects of or specializes in Gartley’s work). Larry Pesavento was the first trader to popularize the pattern, and he has written numerous books on the subject.
The patterns are typically annotated with dashed lines depicting the relationship between the swings. I decided to draw the bullish Gartley pattern on my own (Figure 1), and here are the criteria you need to keep in mind when doing so. The first wave is the largest and I drew it at about 45 degrees, although that is not required. Just avoid price changes that are exhaustion or sideways movements.
This is the wave from X to A. The wave from A to B is an impulse wave that is the beginning of a retracement. If you remember from Advanced GET or the point system in the Pristine trading method, if the retracement is too large, it is likely that the impulse wave is not strong enough. You’ll see annotations on the web showing a 0.618 retracement.
The use of Fibonacci ratios as criteria for price change is the other part of the Gartley pattern. I made my A to B retracement around 38.2%. Thus, the price change of A to B should be something in the range of 38.2% to 61.8% of the price change from X to A, and some would argue that it shouldn’t be more than 50%.
"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-48-51-product-review-barrie-hetirachi-s-five-point-pattern-by-dennis-d-peterson-20.gif"",""height"":""624"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-48-51-product-review-barrie-hetirachi-s-five-point-pattern-by-dennis-d-peterson-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-48-51-product-review-barrie-hetirachi-s-five-point-pattern-by-dennis-d-peterson-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305prre,d,"{""minimum-quantity"":""1"",""path"":""ch1j205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:1 (52-55): Product Review TC2000 Version 12 by Bruce R. Faber"",""caption-linebreaks"":""Product Review TC2000 Version 12 by Bruce R. Faber
Version 12 is the latest upgrade to the now–cloud based TC2000. As long as your computer can run Microsoft Silverlight, you have a very fast charting program at your disposal because the actual program calculations are being run on banks of Worden Brothers’ super-fast computers and delivering the results to you using real-time data. Okay, let’s be honest: We are talking about two levels of real-time data. The Platinum users get the good stuff straight from the exchanges and pay an extra $9.25 per month for the up-to-the-millisecond data. The Gold users get the pretty good stuff from the BATS exchange (www.batstrading.com), and so far, Worden is eating the cost of that feed. But even pretty good real-time data is nice when you are only paying for end-of-day (EOD) data.
If you have followed the progression of what seems to be the philosophy of the Worden Brothers charting programs, it makes some sense that what used to be their EOD data plan is now nearly real-time. From what I have seen, they work to get the best affordable data for the TC family. From the old days of half a penny per day for each stock followed, with the data available two hours after the close of trading, to the current $1 a day for real-time data on thousands of stocks, indexes, and exchange traded funds (ETFs) is a great progression of value for program users.
Though data is a very important part of any charting program, Version 12 has also made important strides in its prime objective, that being to help traders make better decisions in buying and selling equities. I’ve spent a couple of days at well-planned seminars where Worden trainer-in-chief Michael Thompson, with the help of hundreds of great slides (and a deep understanding of the inner workings of the program), demonstrated the many abilities of this software. On top of that, I have watched hours of free webinars combined with tutorials on the specific abilities of TC2000, which is the first thing you should look at after you download the program and begin your 14 days of free data. I have used the cloud-based TC2000 since the release of Version 11, and I have only scratched the surface of what this cloud-based TC2000 is capable of."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-52-55-product-review-tc2000-version-12-by-bruce-r-faber-22.gif"",""height"":""624"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-52-55-product-review-tc2000-version-12-by-bruce-r-faber-27.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-52-55-product-review-tc2000-version-12-by-bruce-r-faber-28.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305prre11,d,"{""minimum-quantity"":""1"",""path"":""faarfr204"",""ysw-page-title"":""Stocks & Commodities V. 30:1 (52-55): Product Review TC2000 Version 12 by Bruce R. Faber"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-52-55-product-review-tc2000-version-12-by-bruce-r-faber-29.gif"",""height"":""180"",""width"":""140""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-52-55-product-review-tc2000-version-12-by-bruce-r-faber-30.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-52-55-product-review-tc2000-version-12-by-bruce-r-faber-31.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305exyo,d,"{""minimum-quantity"":""1"",""path"":""ch1j205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:1 (56): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
GIVEN THE SLIP
How can I best ensure against slippage on an option order?\nIf you’ve been trading long enough, you probably have learned about slippage the hard way. Two good ways to guard against this enemy of profits is to deal in options with strong liquidity characteristics and stay clear of market orders whenever possible.
As for a stock’s options providing strong liquidity: Average daily contract volume, large open interest, and tight quoted call and put markets are the three components that we can use as measures against unjust slippage. Having one of these characteristics in place is no guarantee of the other two. Without all three in place, without a contract month that’s new to the board, there’s a strong chance that what looks to be worth trading today, all else being equal, might not be so at a later date.
In addition, you might want to go back to earlier trading sessions and look at contract volume on any given day. Knowing how both larger and smaller traders are vested is better than a situation with the same volume but with all the activity stemming from one group. Block prints that occur with regularity can paint a distorted picture of liquidity, for example, as could a large amount of retail trading that’s there one day but gone the next due to the likes of a newsletter recommendation."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-56-explore-your-options-by-tom-gentile-20.gif"",""height"":""618"",""width"":""424""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-56-explore-your-options-by-tom-gentile-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-56-explore-your-options-by-tom-gentile-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov306oppo,d,"{""minimum-quantity"":""1"",""path"":""ch1j205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:1 (6): Opening Position by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Opening Position by Jayanthi Gopalakrishnan
X-SEQUENTIALS
Editor,
First, let me say how much I enjoy your magazine. In fact, today I renewed my subscription.\nI recently read with interest the article by Devin Sage “Spotting Momentum Reversals And Deriving Price Forecasts”(Stocks & Commodities, November 2011).
In the article’s conclusion, the author lists three variations of the X-sequentials X7 pattern, but nowhere does he give examples of when and how to apply these variations.
Will the author be writing another article to expand on these variations? The article leaves the reader hanging for more information.
Also, how can one contact the author? Is there an English edition of his book, Besser Traden Mit X-sequentials, and where can any edition of the book be purchased?\nLarry Escott
As for the book’s availability, Amazon.de carries it, for one, but it does not look as though there is an English translation.
A follow-up article is not planned at this point, but you can contact the author in care of this magazine at Editor@Traders.com.—Editor"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-6-opening-position-by-jayanthi-gopalakrishnan-20.gif"",""height"":""620"",""width"":""426""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-6-opening-position-by-jayanthi-gopalakrishnan-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-6-opening-position-by-jayanthi-gopalakrishnan-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov306fufo,d,"{""minimum-quantity"":""1"",""path"":""ch1j205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:1 (62): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
COT, REPORTABLE OR NON
How do I read the CFTC’s COT report and should I be following the commercial or nonreportable groups?
In the “Futures For You” column in the December 2011 issue, we learned that the CFTC’s Commitment of Traders (COT) report displays the net long and short positions of large speculators, hedgers, and small speculators. This time, let’s look at how this information might be useful to traders regardless of the overall strategy.
Traditionally, traders look to computer-generated oscillators such as relative strength index (RSI) and stochastics to identify overbought or oversold market conditions. I also like monitoring market sentiment in trading blogs, chat rooms, and news services for signs of overcrowded opinions; but the best place to determine whether prices have been stretched too far may be the COT report.
In my opinion, the best use of COT data is to identify overcrowded trades. Once a market is overheated, it can be vulnerable to mass liquidation, which can wreak havoc on the profits of those following the herd and, worse, could even lure latecomers just before the trend sharply reverses. Remember, once the last man buys, the market sells, and the COT offers a behind-the-scenes glimpse into when and where that might be."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-62-futures-for-you-by-carley-garner-20.gif"",""height"":""618"",""width"":""423""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-62-futures-for-you-by-carley-garner-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-62-futures-for-you-by-carley-garner-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov306trti,d,"{""minimum-quantity"":""1"",""path"":""ch1j205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:1 (63-71): Traders' Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders' Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Johnny Dough’s article in this issue, “Reversing MACD.”
Code for AmiBroker is already provided by Dough for his article, and subscribers will find this code in the Subscriber’s Area of our website, www.Traders.com. Presented here is an overview of possible implementations for other software.
Traders’ Tips are provided to help the reader implement a selected technique from an article in this issue. The entries are contributed by various software developers or programmers for software that is capable of customization.
Readers will find all the code listings that accompany the following Traders’ Tips at our website, Traders.com, in the Traders’ Tips area. Provided here is some discussion of the technique’s implementation by the Traders’ Tips contributors as well as some example charts.
To locate Traders’ Tips at our website, use our site’s search engine, or click on the Traders’ Tips link from our home page. For past Traders’ Tips, click on the “Archive” button in the S&C Magazine box in the middle of our home page, then click on a Traders’ Tips topic of interest, or click on a different year to see more choices."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-63-71-traders-tips-by-technical-analysis-inc-20.gif"",""height"":""614"",""width"":""431""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-63-71-traders-tips-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-63-71-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov307bofo,d,"{""minimum-quantity"":""1"",""path"":""ch1j205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:1 (76): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
Currency Trading For Dummies
The Little Book Of Trading: Trend Following Strategy For Big Winnings
The Market Taker’s Edge: Insider Strategies From The Options Trading Floor
Mastering Market Timing: Using The Works Of L.M. Lowry And R.D. Wyckoff To Identify Key Market Turning Points
The Monopoly Method: An Insider’s Guide To Navigating Wall Street And Becoming A Better Investor
TradeStation Made Easy! Using EasyLanguage To Build Profits With The World’s Most Popular Trading Software"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-76-books-for-traders-by-technical-analysis-inc-20.gif"",""height"":""603"",""width"":""407""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-76-books-for-traders-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-76-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov30880at,d,"{""minimum-quantity"":""1"",""path"":""ch1j205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:1 (82, 80-81): At The Close by Alex Wasilewski"",""caption-linebreaks"":""At The Close by Alex Wasilewski
Six Tips To Successful Daytrading
Daytrading’s not a profession for the weak, that’s for sure. Try these tips to help you trade.
\nIt's a classic catch-22 in a recessionary job market: People looking to enter a new profession find they cannot get in without at least some relevant experience, yet they have little chance of gaining any experience because employers are eliminating or outsourcing entry-level positions. One notable exception to this is daytrading, which is the practice of buying and selling a stock within the same day. Anyone with a few thousand dollars in seed money can set up a short-term trading account and compete for profits alongside huge investment firms and seasoned, multimillionaire traders. The only credential you need is a positive account balance to make tomorrow’s first trade.
Daytrading is also inherently adversarial: The strong make a profit by taking money from the weak. Inexperienced traders can (and do) lose thousands of dollars in a matter of minutes as the stock market soars and dives. For every beginning daytrader who goes on to achieve long-term profitability, about nine others fail.
Although there are no shortcuts or sure-fire formulas for successful daytrading, some of the most common pitfalls can be avoided by following six basic tips designed to help traders develop more consistent and professional practices.
1. PREPARE YOUR MIND
What you believe about yourself is the most powerful predictor of what you can achieve in daytrading. A world-class athlete does not wait until he wins that first Olympic medal to start thinking and training like a champion. Likewise, great traders start to envision themselves as being successful before they ever make their first profitable trade of the day."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-82-80-81-at-the-close-by-alex-wasilewski-20.gif"",""height"":""629"",""width"":""456""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-82-80-81-at-the-close-by-alex-wasilewski-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-1-82-80-81-at-the-close-by-alex-wasilewski-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov301swco,d,"{""minimum-quantity"":""1"",""path"":""ch10o208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:10 (10-13): SwamiCharts Convolution by John F Ehlers and Rick Way"",""caption-linebreaks"":""SwamiCharts Convolution by John F Ehlers and Rick Way
One of the major objectives of technical analysis is to decisively identify a major reversal so that we can trade the market primarily in the direction of the ensuing trend. SwamiCharts convolution is just the ticket to meet that objective.
IN mathematics jargon, “convolution” is an operation on two functions that produces a third function. Convolution is similar to cross-correlation between the two input functions — with a twist. An anachronistic term for convolution is faltung, which means “folding” in German. It is this concept that makes convolution useful for trading. Here, we will spare you the details of the mathematics and jump from the theoretical concept to useful trading examples.
THEORETICAL FOUNDATION
Consider what happens at an idealized market bottom. The prices decrease linearly until the bottom is reached and then increase linearly after the bottom has occurred. If we fold these idealized prices about the market bottom, the two price segments are perfectly correlated. We have cross-correlated two market segments that have been folded at the horizontal point of the market bottom. This correlation only occurs at the idealized market bottom that, in fact, establishes the need for prefiltering before the correlation is calculated so that a relatively high correlation can be achieved using real data."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-10-13-swamicharts-convolution-by-john-f-ehlers-and-rick-way-21.gif"",""height"":""625"",""width"":""449""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-10-13-swamicharts-convolution-by-john-f-ehlers-and-rick-way-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-10-13-swamicharts-convolution-by-john-f-ehlers-and-rick-way-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov301sest1,d,"{""minimum-quantity"":""1"",""path"":""ch10o208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:10 (14-21): A Seasonal Strategy With Leveraged ETFs by Gerald Gardner"",""caption-linebreaks"":""A Seasonal Strategy With Leveraged ETFs by Gerald Gardner
The Halloween indicator, also known as “Sell in May and go away,” is a well-known seasonal strategy that investors apply to the financial markets. But it comes with its share of risk. Here is how you can use this seasonal strategy with a twist using leveraged exchange traded funds.
A well-known anomaly in stock market timing is the Halloween indicator. It is possible to produce a 20% annual return with a modest 12% drawdown using this indicator combined with a simple moving average and a commodity fund. The risk is also half that of a buy & hold strategy due to the brevity of the investment, which usually runs about six months.
HALLOWEEN INDICATOR
The Halloween indicator is a famous anomaly in stock market cycles. A problem with using anomalies in the real world is that they can quit working at any time. For the anomaly to be useful, it must persist and continue despite its well-publicized results.
The Halloween anomaly has been analyzed since 1964. Emerging markets and other shorter time series have been studied since 1969. One study testing the Halloween indicator in US equity markets over a 21-year period (April 1982 to April 2003) using futures data verified the presence of a significant effect. The findings led researchers to conclude that the indicator was an “exploitable anomaly” in the US during that time period. That these studies have been published and yet the anomaly persists is a good sign that it will continue."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-14-21-a-seasonal-strategy-with-leveraged-etfs-by-gerald-gardner-21.gif"",""height"":""623"",""width"":""445""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-14-21-a-seasonal-strategy-with-leveraged-etfs-by-gerald-gardner-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-14-21-a-seasonal-strategy-with-leveraged-etfs-by-gerald-gardner-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov302buys1,d,"{""minimum-quantity"":""1"",""path"":""faarfr204"",""ysw-page-title"":""Stocks & Commodities V. 30:10 (22-26): Buy & Sell Signals Using Stochastics by Chris Pratsch"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-22-26-buy-sell-signals-using-stochastics-by-chris-pratsch-29.gif"",""height"":""180"",""width"":""130""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-22-26-buy-sell-signals-using-stochastics-by-chris-pratsch-30.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-22-26-buy-sell-signals-using-stochastics-by-chris-pratsch-31.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov302buys,d,"{""minimum-quantity"":""1"",""path"":""ch10o208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:10 (22-26): Buy & Sell Signals Using Stochastics by Chris Pratsch"",""caption-linebreaks"":""Buy & Sell Signals Using Stochastics by Chris Pratsch
Combining moving averages with stochastics can generate reliable buy and sell signals. Find out how you can use them to identify attractive trading opportunities in stocks and ETFs.
Many technical analysis indicators are based on complex mathematics that only seasoned mathematicians can handle, and sometimes even they can fail. Unfortunately, higher mathematics are required to handle intricate statistical formulations needed for large volume trades.
The single trader, however, for whom much smaller stock volume is available, cannot participate in such large trades. These single traders — and I consider myself to be part of such a group — can only react to market moves that, with or without influences from outside forces, gyrate in irregular cycles.
WHICH INDICATORS DO YOU USE?
The task here is to use technical indicators that describe price moves and have maximum forecasting power. Fortunately, quite a number of useful and valid indicators are available. They are simple to use, mathematically correct, and often are well displayed and easy to handle by normal trading platforms.
I will discuss using moving averages and stochastics in a number of combinations. You will be able to see how valuable buy & sell signals can be established and, when followed, form a basis for attractive trading activities of stocks and exchange traded funds (ETFs) by single traders.
MOVING AVERAGES
My basic demand for an indicator is for it to describe and signal price trends. Trend following is a key condition for successful trading. For this purpose, moving averages are quite useful; they are simple to select, simple to understand, and simple to define the current trend."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-22-26-buy-sell-signals-using-stochastics-by-chris-pratsch-24.gif"",""height"":""626"",""width"":""453""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-22-26-buy-sell-signals-using-stochastics-by-chris-pratsch-27.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-22-26-buy-sell-signals-using-stochastics-by-chris-pratsch-28.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov302caki,d,"{""minimum-quantity"":""1"",""path"":""ch10o208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:10 (28-30): The Calendar King by John A. Sarkett"",""caption-linebreaks"":""The Calendar King by John A. Sarkett
A calendar spread is among the simplest of option strategies, yet among the most durable and profitable. A simplified explanation: the strategist sells a near-month contract and buys a far month against it. The near month loses value faster than the back month, and that is how a profit is generated.
As in most things, there is more to it than that, and that is why two years into the practice of trading calendar spreads, trader Himanshu Raval sought out an option mentor to learn the greeks. He found Dan Sheridan on a CBOE website video. Sheridan traded as an IBM market maker in his 24-year CBOE career, including thousands of calendars, so he knew whereof he taught.
Raval signed on as a student, and as a result, he doubled his returns from the 5% to 10% per month range to a 15% to 20% per month level, becoming something of a star in the option mentoring community.
He holds forth on the merits of a consistent approach. A meticulous recordkeeper, in the past year he has earned 18% per month on his IBM calendars with an average of 25 to 27 days in a trade.
WHY IBM?
Historically, IBM has moved less than 8% per month on average. The less the underlying moves, the better for the calendar spreader. Raval also tried other tickers — JNJ, PG, and DIA — but like many professional traders before him, he settled on Big Blue, IBM. Here’s how he does it.
ELASTIC APPROACH
Raval seeks to initiate a calendar position 40 to 45 days before the expiration of the short options. When volatilities are expected to either remain low or trend slowly higher, he takes bigger positions, both in size and number of strikes. A low volatility setting may find him starting with a triple calendar, with one calendar at-the-money (ATM), and then bracket that with calendars five or 10 points above and below. For example, if IBM is at 180, he may put on calendars at 180, 185, and 175.
If volatilities are high and expected to decline, the enemy of the calendar since the back month loses more than the front, and the position becomes flat or a loser, he may start with only one calendar ATM, and after that add calendars as the market moves.
Raval aims to pay the midprice (exact middle between bid and ask for the spread) but will at times pay up to 0.20 higher."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-28-30-the-calendar-king-by-john-a-sarkett-21.gif"",""height"":""625"",""width"":""449""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-28-30-the-calendar-king-by-john-a-sarkett-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-28-30-the-calendar-king-by-john-a-sarkett-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov30330lo,d,"{""minimum-quantity"":""1"",""path"":""ch10o208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:10 (32-42): A 30-Year Lookback by Karen E. Wasserman"",""caption-linebreaks"":""A 30-Year Lookback by Karen E. Wasserman
We share some perspective on where this industry has taken us over the past three decades.
Technical Analysis of Stocks & Commodities magazine turns 30 this month. Launched in October 1982, this magazine got its start when its publisher, Jack Hutson, couldn’t find very many places to turn to further his education in technical analysis. Published material on the subject was in short supply, and technical analysis was far from a common approach to investing in the markets.
Since he was a mechanical engineer for The Boeing Co. at the time, it made sense for him to adapt engineering methods to market analysis. After purchasing a copy of the original CompuTrac system in the late 1970s (a product later taken over by Telerate, and then sold to Dow Jones & Co.), Hutson developed a way to apply Fourier analysis to price cycles. His work in this led to an invitation to speak on the subject at a CompuTrac seminar in Toronto, Canada, in 1982. The presentation and paper that he prepared for that talk became material for the premiere issue of Stocks & Commodities.
Today, technical analysis is a go-to approach for those looking for a more precise way to time their entries & exits in the market; or looking to guide their short-term trading; or for those who simply have a knack for mathematics and prefer a more mechanistic approach over fundamental analysis. Technical analysis has even become mainstream in many ways since the early days, with financial news networks presenting technical commentary and statistics, many websites offering free or paid charting services, and individual investors checking a stock’s chart before handing over their hard-earned dollars to the markets.
Technical analysis is the study of price charts and patterns. It seeks to apply various studies to price and volume charts to help analyze and forecast market cycles as well as small market movements. Traders might use a branch of technical analysis to forecast long-term, multiyear cycles in the broad markets, or they might use price patterns to predict the next tick on an intraday chart.\nTechnical analysis is a way to study the past to predict the future. In that spirit, let’s take a brief look back at the past 30 years of this magazine, the markets, and the securities industry — because where we’ve been is often just as important as where we’re heading.
IN THE BEGINNING
Circa 1982: These were the days when discussion of random walk theory, modern portfolio theory, and efficient market hypothesis dominated the finance curricula. The first issues of Stocks & Commodities covered topics like moving averages, trend channels, managing trading risk, and an introduction to computerized trading methods. It contained code in BASIC and examples of computer output. Jack Hutson and this magazine’s first contributor, Anthony Warren, also an engineer, each published a series of pioneering articles on Fourier analysis and spectrum analysis, techniques that were used to help discern price cycles in commodities and other securities."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-32-42-a-30-year-lookback-by-karen-e-wasserman-21.gif"",""height"":""629"",""width"":""463""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-32-42-a-30-year-lookback-by-karen-e-wasserman-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-32-42-a-30-year-lookback-by-karen-e-wasserman-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov30479ex,d,"{""minimum-quantity"":""1"",""path"":""ch10o208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:10 (43, 79): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
DECLARE YOUR RIGHT TO EXERCISE
Recently, Apple delivered its first quarterly dividend in years. In front of the ex-date was considerable interest in the company’s calls, even by Apple standards. If someone is long the call, my understanding is he or she doesn’t collect the payout. Is that true? Open interest the next day didn’t reflect the massive activity. What happened?
You’re correct in recognizing a long call position forfeits its right to the dividend, but the heavy and lopsided volume [1.6 million contracts & P/C = 0.11] you’re referring to on August 8 was tied to a speculative overnight spread trade known as the dividend play, with the goal to capture the quarterly payout of $2.65 with deep buy-writes.
This strategy most commonly uses swapped verticals in an attempt to secure the desired deep buy-write position. Through the proper exercising of the vertical’s long calls into stock and a good deal of luck in keeping targeted short calls through the Option Clearing Corp.’s lottery-style assignment process, the trader can “capture the dividend” — establish a buy-write for $2.65 (minus any commission and holding costs)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-43-79-explore-your-options-by-tom-gentile-21.gif"",""height"":""618"",""width"":""425""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-43-79-explore-your-options-by-tom-gentile-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-43-79-explore-your-options-by-tom-gentile-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov304inma1,d,"{""minimum-quantity"":""1"",""path"":""ch10o208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:10 (44-50): Interview: Marc Chikin by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Marc Chikin by Jayanthi Gopalakrishnan
Marc, I looked over the interview that S&C did with you back in 1993 or 1994, and right off the bat it was interesting in and of itself because you mentioned that the day you got your stockbroker’s license was the day that the bear market of 1966 ended.
It was!
That must have been a pretty exciting time for you.
It was exciting and it also made the whole process of investing and trading look easy, because everything went up for the first two years in my career. But a new bear market started in February 1969 and suddenly things weren’t so easy any more. That was when I started getting serious about technical analysis research.
The bear market that started a few years after you got your license is what led you to explore technical analysis?
Exactly. I had looked at technical analysis earlier than that, but it wasn’t that important because everything was going up and the firm I was with — which was Shearson Hammill back then, one of the predecessors of Morgan Stanley Smith Barney today — had a great fundamental research department.
I started following the firm’s research in a bull market and my clients did very well. The problem was that as the bear market started to unfold, all of these fundamental analysts kept reiterating their buy recommendations as stocks dropped from 100 to 15. Somewhere near the bottom they finally threw in the towel. I realized this was not the way to build a career. So then I got serious about technical analysis.
But how was the field of technical analysis doing at that time? It could not have been looked upon that highly.
Not at all. In fact, when I was at the main office of Shearson, you had to keep your chartbooks in a drawer. If you had them out, the manager of the office would come around and say, “Put that away. This is a fundamental research firm.” We used to get charts from Standard & Poor’s, or some of the early chart services. Mansfield had a chart service back then. It was frowned upon. Nobody acknowledged that they were using charts, although it turned out that institutional money managers like Jerry Tsai and some of the people at Fidelity were using charts, but they didn’t talk about it.
How did you get to the point where you were developing your own indicators and oscillators?
Initially, I was doing it all by hand. That was pretty much the way you had to do it. I read some books by Larry Williams and Joe Granville. I got interested in some of the old-time charting techniques having to do with relative strength. I got every book I could get my hands on and started doing these charts by hand on graph paper. This is what everybody was doing back then. You had to be dedicated because it was an awful lot of work."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-44-50-interview-marc-chikin-by-jayanthi-gopalakrishnan-20.gif"",""height"":""628"",""width"":""459""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-44-50-interview-marc-chikin-by-jayanthi-gopalakrishnan-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-44-50-interview-marc-chikin-by-jayanthi-gopalakrishnan-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305trti1,d,"{""minimum-quantity"":""1"",""path"":""ch10o208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:10 (52-53): Trading Ticket: Commodity/Leveraged ETFs"",""caption-linebreaks"":""Trading Ticket: Commodity/Leveraged ETFs
POWERSHARES DB COMMODITY INDEX TRADING (DBC)
This exchange traded fund (ETF) tracks changes in the level of the Deutsche Bank Liquid Commodity Index – Optimum Yield Diversified Excess Return, plus interest income from US Treasuries that the ETF holds. It invests in futures contracts on 14 of the heavily traded commodities. The commodities include light sweet crude oil, heating oil, RBOB gasoline, natural gas, Brent crude, gold, silver, aluminum, zinc, copper grade A, corn, wheat, soybeans, and sugar. The largest weightings are in light sweet crude oil, heating oil, Brent crude oil, and RBOB gasoline, which indicates that it has higher weighting in the energy sector. DBC is offered through Invesco Powershares:
• Launch date: February 3, 2006\n• Expense ratio: 0.93%\n• Average spread: 0.04%\n• Tracking error: 0.26%
Trading strategies: Considering that DBC is diversified among the most heavily traded commodities, you get the diversity of the commodities markets, especially in the energy sector.
It is structured as a partnership that invests in futures contracts. It is marked to market at the end of each year, which means that every year you will be apportioned a pro rated share of gains or losses. In the event that there was a very strong gain in any year, you may end up with a pretty significant tax liability. Something else to keep in mind is that you will have to fill out a Form-K1 every year. If you are prepared for all this additional administrative work and you want the exposure to the commodities market, DBC may be an ETF to consider."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-52-53-trading-ticket-commodity-leveraged-etfs-20.gif"",""height"":""620"",""width"":""434""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-52-53-trading-ticket-commodity-leveraged-etfs-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-52-53-trading-ticket-commodity-leveraged-etfs-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305prre9,d,"{""minimum-quantity"":""1"",""path"":""ch10o208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:10 (54-56): Product Review: Portfolio Maestro by Dennis D. Peterson"",""caption-linebreaks"":""Product Review: Portfolio Maestro by Dennis D. Peterson
Portfolio Maestro is software with its own installation that allows users to analyze portfolios of equities, futures, and forex. The major elements of Portfolio Maestro are a set of symbols that you backtest using trading strategies and can be further analyzed using walkforward analysis. Portfolio Maestro is highly integrated with TradeStation. Your symbol list and trading strategies are referenced directly from TradeStation. There are also selections for money management (dynamic position sizing), ranking, and portfolio stops.
The elements of Portfolio Maestro are organized into strategy groups, with each group having its own set of symbols and trading strategies. Groups are combined into a portfolio, and you can have more than one in a portfolio. After you have created a portfolio, you can backtest it, optimize it, or perform a walk-forward analysis on it, using TradeStation’s Walk Forward Optimizer. When optimizing, you can choose to use exhaustive or genetic algorithms. Of course, backtests and optimizations are subject to whatever money management, ranking, and portfolio stop rules you have chosen."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-54-56-product-review-portfolio-maestro-by-dennis-d-peterson-20.gif"",""height"":""630"",""width"":""472""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-54-56-product-review-portfolio-maestro-by-dennis-d-peterson-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-54-56-product-review-portfolio-maestro-by-dennis-d-peterson-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305qaby3,d,"{""minimum-quantity"":""1"",""path"":""ch10o208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:10 (57): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
ANSWERING SOME BASIC QUESTIONS
I recently opened an account with an online broker but have had a hard time getting any answers to some basic questions. I was hoping that you could help me. My questions are very basic, but I cannot get a few things straight:
1. The online brokers refer to marginable securities, but what does that mean for me? I was warned about the margin involved when buying a stock at about $3.00. What difference does it make?
2. When I asked about selling stocks short, they wanted me to read several pages of hard-to-understand information they provided. I thought selling short was like betting on a downward move. And again, there was that warning about $3.00 stock.
3. They told me about something called “interest differential” — and that I should be concerned about it. I don’t know what that means.
4. And finally, they referred to something called mark to market. I’ve heard that term as it relates to houses and stuff. Is this a tax consideration?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-57-q-a-by-don-bright-20.gif"",""height"":""618"",""width"":""426""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-57-q-a-by-don-bright-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-57-q-a-by-don-bright-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305wefo1,d,"{""minimum-quantity"":""1"",""path"":""ch10o208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:10 (58): Websites For Traders: SOCIALTRADE.COM by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Websites For Traders: SOCIALTRADE.COM by Jayanthi Gopalakrishnan
SOCIALTRADE.COM
With the rise in popularity of social networks, it is nice to see that traders are not being left behind. SocialTrade.com, a social media site for traders developed by Tim Knight (founder of Prophet.net, now owned by Ameritrade, and creator of ProphetCharts), is a place where you can organize and share your charts, articles, and anything with other traders. You could call it a virtual bulletin board where you organize and stack all your thoughts about the market. You can create a user profile and include various custom “stacks” that you can share with other social traders."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-58-websites-for-traders-socialtrade-com-by-jayanthi-gopalakrishnan-20.gif"",""height"":""628"",""width"":""427""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-58-websites-for-traders-socialtrade-com-by-jayanthi-gopalakrishnan-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-58-websites-for-traders-socialtrade-com-by-jayanthi-gopalakrishnan-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305fufo2,d,"{""minimum-quantity"":""1"",""path"":""ch10o208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:10 (59): Futures For You by Carley Gardner"",""caption-linebreaks"":""Futures For You by Carley Gardner
A “CRUDE” LOOK BACK (PART 2)
In honor of the 30th anniversary of Stocks & Commodities, we are reviewing the evolution of crude oil futures throughout the previous three decades. Last issue, we discussed price changes and historical seasonal patterns; this time, we will focus on order entry logistics, new technology, and most important, what we know about these topics to improve your odds of successful speculation.\nIn the early 1980s, screen trading seemed to be more of a pipe dream than a reality. Futures and options orders were executed via a system known as open outcry, or arbitrage (“arb”) trading, which is a system of hand signals used to communicate buy and sell orders from trading pits. Simply, open outcry trading is organized chaos. From the outside, it looks like a group of intoxicated fans at a rock concert, but a closer look reveals that the yelling and hand waving is an efficient means of price discovery."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-59-futures-for-you-by-carley-gardner-20.gif"",""height"":""618"",""width"":""426""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-59-futures-for-you-by-carley-gardner-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-59-futures-for-you-by-carley-gardner-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov306howw,d,"{""minimum-quantity"":""1"",""path"":""ch10o208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:10 (60-61): How We Began by Technical Analysis, Inc."",""caption-linebreaks"":""How We Began by Technical Analysis, Inc.
Before this magazine came together in the 1980s, trading and technical analysis were in a very different place in the financial industry than they are today. Fundamental analysis was the standard approach, while technical analysis was still considered exotic and suspect. Then personal computers were introduced, and a new era was born.\nOne of the few software products available in the early 1980s to help individual traders and investors perform technical analysis was CompuTrac, from a company of the same name run by Tim Slater. The CompuTrac software allowed for user studies to be added, which users could write in BASIC and for an Apple computer.
Jack Hutson, Technical Analysis of Stocks & Commodities magazine’s publisher and founder, had purchased a copy of the program, since he had an interest in the markets and technical analysis. Hutson had particular knowledge of fast Fourier transforms (FFT) at the time, having coded an FFT study in Fortran as part of an engineering project in college. Later, while employed as an engineer for The Boeing Co., he came back to that idea and began to work on it again, translating it to BASIC (remember that “all-purpose instruction code”?)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-60-61-how-we-began-by-technical-analysis-inc-20.gif"",""height"":""623"",""width"":""435""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-60-61-how-we-began-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-60-61-how-we-began-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov30679tr,d,"{""minimum-quantity"":""1"",""path"":""ch10o208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:10 (62-69, 79): Traders' Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders' Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Gerald Gardner’s article in this issue, “A Seasonal Strategy With Leveraged ETFs.” Here we present the October 2012 Traders’ Tips code.
Code for AmiBroker is already provided in Gardner’s article by the author. Subscribers will find that code at the Subscriber Area of our website, www.Traders.com. (Click on “Article Code” from our homepage.) Presented here is an overview of possible implementations for other software.
Traders’ Tips are provided to help the reader implement a selected technique from an article in this issue. The entries are contributed by various software developers or programmers for software that is capable of customization.
Readers will find the October 2012 Traders’ Tips code at our website, Traders.com. Here, you can read some discussion of the technique’s implementation by the Traders’ Tips contributors as well as some example charts.
To locate Traders’ Tips at our website, use our site’s search engine, or click on the Traders’ Tips link from our home page. For past Traders’ Tips, click on the “Archive” button in the S&C Magazine box in the middle of our home page, then click on a Traders’ Tips topic of interest, or click on a different year to see more choices."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-62-69-79-traders-tips-by-technical-analysis-inc-20.gif"",""height"":""620"",""width"":""431""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-62-69-79-traders-tips-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-62-69-79-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov307bofo9,d,"{""minimum-quantity"":""1"",""path"":""ch10o208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:10 (73): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
Hedge Fund Market Wizards: How Winning Traders Win
The Art And Science Of Technical Analysis: Market Structure, Price Action, And Trading Strategies
In Short: Successful Investing During Turbulent Times
Income Investing: An Intelligent Approach To Profiting From Bonds, Stocks, And Money Markets
Mindful Trading: Mastering Your Emotions And The Inner Game
Technical Analysis Of Gaps: Identifying Profitable Gaps For Trading"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-73-books-for-traders-by-technical-analysis-inc-21.gif"",""height"":""617"",""width"":""414""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-73-books-for-traders-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-73-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov307trno,d,"{""minimum-quantity"":""1"",""path"":""ch10o208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:10 (76-78): Traders's Notebook by Mike Carr, CMT, and Amber Hestia-Barnhart"",""caption-linebreaks"":""Traders's Notebook by Mike Carr, CMT, and Amber Hestia-Barnhart
How can individual traders manage risk?
Every successful trader learns to manage risk so they can avoid large losses like those that have crippled many Wall Street firms. In this article, we'll show how traders manage risk, identify the lessons we can learn from JPMorgan, and detail a way that technicians can duplicate the value at risk (VAR) metric that many large firms use to help add insight to their potential losses.
In what has become a fairly regular event, a Wall Street firm has announced a multibillion-dollar trading loss. JPMorgan told analysts and investors in early May that a hedge trade they had made would lead to a loss of at least $2 billion. CEO Jamie Dimon said that the firm \""screwed up\"" and a number of mistakes allowed the loss to occur. He said that the trades were \""riskier, more volatile, and less effective as an economic hedge than we thought.\"" Individual traders face the same challenges with trades that don't always behave as expected and they generally use a number of techniques to minimize the chance of a large loss.
Individual traders have different motivations than institutional traders. Often, the individual is trying to make sure they have enough money for retirement or they may even depend on trading profits as their primary source of income.
In contrast, institutional traders have a base salary to cover their monthly expenses, and benefits often include a well-funded retirement plan. For them, trading increases their bonuses, which means they would be more aggressive than individual traders. Because of this, institutional traders may not use the simple risk management tools that an individual would.
FIVE SIMPLE RULES TO MANAGE RISK
Most individual traders diversify their investments, although this may not be possible for those trading smaller accounts. Even when diversification is impossible, the individual uses other risk management strategies to ensure their trading survival.
In the JPMorgan trade, the trader seemed to be concentrating his bets in a single derivatives market. In a Bloomberg News story about the loss, the wire service noted that it \""first reported April 5 that [the trader in London at the center of the problem] had built positions that were so large he was driving price moves in the $10 trillion market for credit-swap indexes.\"""",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-76-78-traders-s-notebook-by-mike-carr-cmt-and-amber-hestia-barnhart-21.gif"",""height"":""621"",""width"":""436""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-76-78-traders-s-notebook-by-mike-carr-cmt-and-amber-hestia-barnhart-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-76-78-traders-s-notebook-by-mike-carr-cmt-and-amber-hestia-barnhart-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov308leto5,d,"{""minimum-quantity"":""1"",""path"":""ch10o208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:10 (8): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""AUGUST 2012 TRADESTATION TRADERS’ TIP
Editor,
I have a question about TradeStation’s Traders’ Tip from the August 2012 S&C.\nWhen I downloaded the EasyLanguage code file “SEMIND.ELD” from the TradeStation support forum website as mentioned in the writeup, the indicator feature could not be displayed on the chart. The error message I received was “_SRMIND is missing Data 2,3,4,5,6.” Please advise how I can solve this issue.
Thanks very much.\nJia"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-8-letters-to-s-c-by-technical-analysis-inc-21.gif"",""height"":""617"",""width"":""422""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-8-letters-to-s-c-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-8-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov30881at4,d,"{""minimum-quantity"":""1"",""path"":""ch10o208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:10 (82, 81): At The Close: Making A Sacrificial Trade by John Chapman"",""caption-linebreaks"":""At The Close: Making A Sacrificial Trade by John Chapman
It’s startling how such a concept can help you overcome the most destructive emotional impulses of trading.
\nAS a longtime professional trader, I don’t know how many times I have implored the trading gods to get me out of dicey positions with my dignity intact. In the course of these futile communications, I have learned a thing or two. For one, those higher powers are big-picture types; the minutia of accounting is of little interest to them.
This turned out to be a valuable insight. I have also learned how the trading gods inflict pain: they favor not only direct losses but also to add insult to injury. To appreciate this, you only have to think back to how many times a stock has soared right after you sold out at a big loss.
In my early days as a trader, I found myself on the receiving end of all too many humiliating losses. How could I placate those powerful beings? I finally came to the answer: animal sacrifice!
Well, sort of. Say I was long five lots of sugar and was getting pulverized. I would sell one lot — the “sacrificial lamb,” so to speak — and then announce, “I can’t take it anymore!” This is where knowledge of the gods’ disdain for detailed accounting pays off; they often miss the fact that I only partially liquidated my position. After my exclamation, almost as if on cue, the market would turn around and zoom back up, just the way it did when I used to bail out of my entire losing position. This time, though, I can sell out my remaining four lots at a much higher level!
INTERNAL STRUGGLE
As ludicrous as this all sounds, there is considerable merit to viewing sacrificial trading as a tool. Much of trading involves a battle to maintain discipline under stressful conditions. This struggle becomes most intense when you must decide whether to bail out of a losing position. Your emotions make you want to get out of the position or find some rationalization for staying in, thereby keeping hope — the destroyer of many a trading career — alive. Freeing yourself from the influences of these strong emotions is essential at such critical points if you are to make rational decisions."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-82-81-at-the-close-making-a-sacrificial-trade-by-john-chapman-21.gif"",""height"":""633"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-82-81-at-the-close-making-a-sacrificial-trade-by-john-chapman-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-10-82-81-at-the-close-making-a-sacrificial-trade-by-john-chapman-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov30181le,d,"{""minimum-quantity"":""1"",""path"":""ch11n209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:11 (10, 81): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
30-YEAR ANNIVERSARY OF S&C
Editor,
Congratulations on your 30th anniversary. I’ve enjoyed the entire ride with you, as I have every issue. Here’s to another 30.
Greg Morris\nChairman, Investment Committee\nChief Technical Analyst\nStadion Money Management
Greg Morris has contributed many articles to S&C over the years, including “Candlesticks And Stochastics” (August 1991), “Developing a Trading System” (March 1996), “East Meets West: CandlePower Charting” (December 1990), “Breadth Of Fresh Air” (December 2005), and our interview with him, “The Danger Zone With Gregory Morris” (September 2009).—Editor
ERRATA: 30-YEAR LOOKBACK
Editor,
Just finished reading the 30-year highlights article (“A 30-Year Lookback,” October 2012). Wow!\nOn page 4, there’s a statement that QQQ became QQQQ and that it is tradable.
I believe this to be in error. QQQ still tracks the NASD 100 and QQQQ is not tradable. QQQQ (also QQV) is the volatility index now.\nRudy Teseo"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-10-81-letters-to-s-c-by-technical-analysis-inc-21.gif"",""height"":""617"",""width"":""423""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-10-81-letters-to-s-c-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-10-81-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov301idst,d,"{""minimum-quantity"":""1"",""path"":""ch11n209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:11 (12-20): Identify The Start Of A Trend With DMI by BC Low, CMT"",""caption-linebreaks"":""Identify The Start Of A Trend With DMI by BC Low, CMT
Improve on certain directional movement index signals such as identifying\nthe start of a trending move and picking market tops and bottoms.
Directional movement index (DMI) is a long-accepted and popular technical indicator created by J. Welles Wilder to establish the existence of a trend in a market using three lines — ADX, +DI, and ‑DI. This article shows that the same three lines can be used to significantly improve on certain DMI signals to identify the start of a trending move and to pick market tops and bottoms. The new variations in this article feature clusters of three ADX lines, three +DI lines, and three ‑DI lines instead of the original three lines.
DIRECTIONAL MOVEMENT INDEX
ADX signal: Average directional movement index (ADX) signals a trending market when the ADX (14 periods) is above level 20 and rising. But ADX itself does not indicate whether the market is trending up or down. That signal is provided by +DI and ‑DI.
After ADX has risen to the 50 level and turns down, its decline represents a retracement. If there was an uptrend previously, then the declining ADX signals a correction down. If there was a downtrend previously, then the declining ADX signals a correction up.
When ADX declines to below 20 again, the market is nontrending until it rises above 20. Then the market trends again (Figure 1)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-12-20-identify-the-start-of-a-trend-with-dmi-by-bc-low-cmt-20.gif"",""height"":""627"",""width"":""459""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-12-20-identify-the-start-of-a-trend-with-dmi-by-bc-low-cmt-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-12-20-identify-the-start-of-a-trend-with-dmi-by-bc-low-cmt-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov302fufo,d,"{""minimum-quantity"":""1"",""path"":""ch11n209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:11 (21): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
CUSTOMER-SEGREGATED FUNDS
What exactly are customer-segregated funds in relation to futures trading accounts?
Until the autumn of 2011, more specifically the collapse of MF Global, few outside of the futures industry were aware of the term “customer-segregated funds.” The failure of PFG to uphold the sanctity of customer-segregated funds in the summer of 2012 catapulted the phrase into daily usage in national media outlets, and maybe even the homes of many Americans.
Customer-segregated funds are exactly what the name implies; they are monetary deposits made by clients that are segregated from the assets of the brokerage firm. When a client opens a trading account with a futures commission merchant (FCM), which is a term for a brokerage firm registered with the Commodities Futures Trading Commission (CFTC), he is writing a check payable to the FCM for deposit in a bank account that holds client funds but not the brokerage firm’s funds. Or if funding by wire, funds are sent directly into an account under the name of the FCM titled “customer-segregated account.”"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-21-futures-for-you-by-carley-garner-20.gif"",""height"":""617"",""width"":""426""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-21-futures-for-you-by-carley-garner-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-21-futures-for-you-by-carley-garner-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov302wabe,d,"{""minimum-quantity"":""1"",""path"":""ch11n209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:11 (22-28): Warning: Bear Activity By Anthony Trongone, PhD, CTA, CFP"",""caption-linebreaks"":""Warning: Bear Activity By Anthony Trongone, PhD, CTA, CFP
When a market revisits its upper price boundaries, should traders be wary of another breakdown?
\nWhere are many moving parts to an equities downturn. Most of them arrive unexpectedly in the form of economic surprises, political instability, or random shocks. Since they are not on our radar, they are beyond our control. This study, however, is not about these unforeseen factors; its emphasis is on the market’s ability to either push past or break down from previous resistance.\nGiven two unsuccessful attempts of Standard & Poor’s Depositary Receipts exchange traded funds (ETFs), known as SPDRs or spiders (SPY), to break above a closing price of $160, will the third time finally be the charm? In Figure 1, you see the line chart of the spiders from its inception; it demonstrates former price resistance. More important, after retreating to previous support, its three-year price run is approaching this same upper boundary. As of April 30, 2012, it remains to be seen if it will break through this psychological barrier. If history repeats itself, another failure will produce a steep decline, pushing the spiders back down to its previous $80 price range.
With respect to the past, as we drift toward a price of $160 in the spiders, a cautionary stance is advisable because of its two previous failures. A break above this upper boundary is always a possibility, but this could offer less return in comparison to the risk of a sharp slide down to its lower boundary. Because of the previous downturns, most market technicians would refer to this repetitive bottom as support, circulating around the $80 mark.
My focus, however, would be on the upper boundary; most technicians consider the eight years between these two points as evidence of price resistance. But because the market is a dynamic entity, before arriving at any conclusions about the current trading environment, it is best to study the days before these past peaks for hints of another possible breakdown.
Strict market technicians do not make decisions from economic factors. They put their focus on the inner workings of those technical indicators, which they believe are at least partly responsible for producing a bearish market environment. Despite many moving parts, this investigation focuses on daily price swings along with trading volume as the primary culprits responsible for the onset of a bear market.
"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-22-28-warning-bear-activity-by-anthony-trongone-phd-cta-cfp-21.gif"",""height"":""622"",""width"":""445""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-22-28-warning-bear-activity-by-anthony-trongone-phd-cta-cfp-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-22-28-warning-bear-activity-by-anthony-trongone-phd-cta-cfp-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov303depl,d,"{""minimum-quantity"":""1"",""path"":""ch11n209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:11 (30-35): Decimal Places In Forex by Solomon Chuama"",""caption-linebreaks"":""Decimal Places In Forex by Solomon Chuama
Understanding how and where to apply the decimal places of currency pairs and crosses can make a significant difference in your trading.
When trading forex, it is important to understand the differences between trading platforms and how to place trades, and how important it is to understand the concept of decimal places in those platforms. Some concepts like the stop-loss and take-profits are explained in your trading platform’s user manual. However, the concept of decimal places is not always clearly defined.
Nowadays, many brokers’ platforms are moving from the fourth decimal place to the fifth decimal place pricing in the forex market. This development has brought conflicting issues among novice traders, especially when they want to modify their stops and targets in trade placement. The situation becomes even more complex when a broker sets certain currency pairs and crosses to four and five decimal places in the same trading platform.
There are some advantages to pricing to the fifth decimal place in the forex market, in that:
1. Trading to the fifth decimal place can reduce the difference between the ask and bid price of a currency pair
2. Trading to the fifth decimal place provides better liquidity and execution for clients
3. Brokers can allow for tighter spreads and more\naccurate price execution.
The following are examples of computations from trading platforms:
COMPUTATION OF FOURTH DECIMAL PLACE\nIn this trading platform, we have the following:
1. All yen (JPY) pairs and crosses are quoted to two decimal places. For instance, the US dollar (USD)/JPY is bought at 90.25, so:\n• Stop-loss is 30 pips\n• Take profit is 100 pips
2. All other pairs and crosses are quoted to four decimal places (Figure 1)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-30-35-decimal-places-in-forex-by-solomon-chuama-21.gif"",""height"":""620"",""width"":""438""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-30-35-decimal-places-in-forex-by-solomon-chuama-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-30-35-decimal-places-in-forex-by-solomon-chuama-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov303mage,d,"{""minimum-quantity"":""1"",""path"":""ch11n209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:11 (36-40): Mandelbrot's Generator by Jay Norris"",""caption-linebreaks"":""Mandelbrot's Generator by Jay Norris
When I first read a book titled The (Mis)Behavior Of Markets, I was not sure if I had wasted my time. I did dog-ear a page and wrote a single note on another. I reread the book several years later, which was fortunate, because I got another, new impression of what author Benoit Mandelbrot called a “generator,” which defines the base component, or characteristic, of price movement.
The generator was such a completely simplified tool that Mandelbrot gave himself a professional caveat before introducing it, saying it was so uncomplicated that he hesitated to call it a “model,” instead calling it a “cartoon.”
The generator is a straight line with a zigzag placed over it (Figure 1). The straight line represents the trajectory of price over time, while the zigzag provides a model for price pattern. The pattern created by the generator is scalable, and fractal in nature in that it both reproduces itself in like form based on the larger time frame pattern and it creates or “generates” smaller patterns of itself on the lower time frames (Figure 2). A fractal is a pattern or shape whose parts echo the whole; and the smaller that part or pattern, the more complex the construction."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-36-40-mandelbrot-s-generator-by-jay-norris-21.gif"",""height"":""622"",""width"":""441""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-36-40-mandelbrot-s-generator-by-jay-norris-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-36-40-mandelbrot-s-generator-by-jay-norris-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov304mifo,d,"{""minimum-quantity"":""1"",""path"":""ch11n209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:11 (42-46): Mining For Gold by Ron McEwan"",""caption-linebreaks"":""Mining For Gold by Ron McEwan
Here’s how you can use the Commitment Of Traders report to help in trading commodities.
Coffee, oil, sugar, platinum, soybeans, oats, gasoline, and cheese are just a small handful of commodities you can trade. One of the most valuable data resources for traders today is the Commodity Futures Trading Commission’s (CFTC) Commitment Of Traders Report (COTR). The CFTC generates volumes of data on a daily basis, including the COTR that many are familiar with. On a weekly basis, the CFTC updates and makes available seven historical compressed COT reports, which are:
1. Disaggregated Futures Only Reports
2. Disaggregated Futures-and-Options Combined Reports
3. Traders in Financial Futures; Futures Only Reports
4. Traders in Financial Futures; Futures-and-Options Combined Reports
5. Futures Only Reports
6. Futures-and-Options Combined Reports
7. Commodity Index Trader Supplement
The amount of data is tremendous. In one month, for example, these seven reports include approximately 700,000 data points for more than 500 contracts. This is quite a large amount of information to try and analyze for trading ideas, but more than worth the effort.
Most of the COT analysis you find on the Internet will focus on these categories:
• Commercial\n• Long report\n• Open interest\n• Noncommercial\n• Nonreportable positions\n• Number of traders\n• Reportable positions\n• Short report\n• Spreading
That gives us about 29,000 data points used in all the reports. Most of the data is generally ignored by COT analysts. Do we need the rest of the data? Are we to assume that the CFTC has a number of people simply generating large reports? I don’t think so. The data generated by the CFTC is a gold mine of information. Unfortunately, you need to do some digging to find the nuggets.
These days, if you have a personal computer, a spreadsheet program, and an Internet connection, you can now apply some extremely powerful data mining tools to the reports to automate the search for the valuable relationships hidden in them."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-42-46-mining-for-gold-by-ron-mcewan-20.gif"",""height"":""623"",""width"":""439""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-42-46-mining-for-gold-by-ron-mcewan-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-42-46-mining-for-gold-by-ron-mcewan-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov304inmi,d,"{""minimum-quantity"":""1"",""path"":""ch11n209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:11 (48-54): Interview:Michele Mish Schneider by Jayanthi Gopalakrishnan and Bruce Faber"",""caption-linebreaks"":""Interview:Michele Mish Schneider by Jayanthi Gopalakrishnan and Bruce Faber
Michele “Mish” Schneider, the director of trading education & research for MarketGauge, provides in-depth trader training as the market analyst, writer, and host of Mish’s Market Minute. She contributes to several online trading publications and serves as a regular contributor to MarketGauge’s free newsletters Market Outlook and MMMDaily. Mish brings passion as well as expertise as a world-class educator to the trading world.
A former member of the Coffee, Sugar and Cocoa Exchange, NYMEX, and FINEX in New York City, as well as market analyst for Continental Grain and Floor Analyst for Conti-Commodities, Mish Schneider began as a floor broker before becoming an independent trader for her own account. Noted for her technical analysis, she has advised some of the most successful traders in the world.
In 2010, Schneider was voted one of the “100 Best Damn Stock Traders on Twitter” by SocialExec.com. She coauthored MarketGauge’s Complete Swing Trading System and currently serves as a trader/partner in Halcyon Trading LP, a hedge fund. She also is a founder/partner in Wizard IP, a software development company developing and deploying state-of-the-art trading technology.
Stocks & Commodities Editor Jayanthi Gopalakrishnan and Staff Writer Bruce Faber spoke with Schneider on September 7, 2012."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-48-54-interview-michele-mish-schneider-by-jayanthi-gopalakrishnan-and-bruce-faber-20.gif"",""height"":""632"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-48-54-interview-michele-mish-schneider-by-jayanthi-gopalakrishnan-and-bruce-faber-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-48-54-interview-michele-mish-schneider-by-jayanthi-gopalakrishnan-and-bruce-faber-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305exyo3,d,"{""minimum-quantity"":""1"",""path"":""ch11n209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:11 (55): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
BINARY OPTIONS: TO TRADE OR NOT TO TRADE?
I got a question the other day that had to do with a recent product called binary options — what they are, and if they were worth trading. Can you tell me?
A binary option, much like placing a bet, is basically an all-or-nothing option, meaning you either make a predetermined payout or asset if you are right or you get nothing if you are wrong. Binary options fall into one of two categories: all-or-nothing cash binaries, or all-or-nothing asset binaries. Each of these categories has both call and put options. So when choosing a binary option to trade, you must first ask yourself, “Do I want my payout in cash or in the asset?” From there, you determine the type of option.
Say you think that Apple, Inc. (AAPL), will close at or above $700 by the close of trading (Figure 1). You want to trade a binary option on AAPL where if the stock trades at or above $700 a share, you receive a $100 payout per contract. You decide to buy a call option on AAPL closing at or above $700 at 4:00 pm at a cost of $50 for the contract. What’s the risk and reward for this binary option trade?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-55-explore-your-options-by-tom-gentile-20.gif"",""height"":""620"",""width"":""425""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-55-explore-your-options-by-tom-gentile-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-55-explore-your-options-by-tom-gentile-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305prre10,d,"{""minimum-quantity"":""1"",""path"":""ch11n209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:11 (56-58): Product Review: StocksCharts Pro by Dennis D Peterson"",""caption-linebreaks"":""StocksCharts Pro by Dennis D Peterson
StockchartsPro, not to be confused with StockCharts.com and their “pro” plans that provide datafeeds, is software you install and use to find patterns that users find profitable. StockchartsPro has a unique style of chart that it calls a grid (Figure 1). Your main interest is in the patterns formed by the red and green squares on the right.
FEATURES
There are three pixel patterns: triangle, pullback, and mini pullback. A triangle pattern is a right triangle. Ideally, a triangle pattern has pixels of one color starting at one corner of the triangle and moving out and down at a 45-degree angle. The difference between an ideal triangle and one found in real life is that the top of the real-life one is often chopped off, and there are probably a few pixels of the opposite color in the body of the triangle. An example of a triangle can be seen in Figure 1."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-56-58-product-review-stockscharts-pro-by-dennis-d-peterson-21.gif"",""height"":""630"",""width"":""478""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-56-58-product-review-stockscharts-pro-by-dennis-d-peterson-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-56-58-product-review-stockscharts-pro-by-dennis-d-peterson-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305qaby4,d,"{""minimum-quantity"":""1"",""path"":""ch11n209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:11 (59): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
MARKET MECHANICS MUSINGS
You have mentioned “market mechanics” on more than one occasion. Are you referring to the actual mechanics of trading, like computer use? Or how one part of the market affects another? I would appreciate any light you can shed on this. — iowawin
You may have chatted with my traders who attended our training classes. I have focused for years on explaining how and why the markets move, both intraday and over the time of a short-term (few days, to a few weeks) trade. And yes, I can understand why you asked about the actual order entry.
Sir Isaac Newton’s words, “For every action, there is an equal and opposite reaction,” come to mind when I try to explain overall market mechanics — perhaps not always “opposite,” but maybe offset. For example, as most of us know, the futures are the leading indicators for exchange traded funds (ETFs) and equities."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-59-q-a-by-don-bright-21.gif"",""height"":""618"",""width"":""426""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-59-q-a-by-don-bright-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-59-q-a-by-don-bright-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov306prre1,d,"{""minimum-quantity"":""1"",""path"":""ch11n209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:11 (60-62): PRODUCT REVIEW: TC2000 Version 12.2 Update by Bruce R. Faber"",""caption-linebreaks"":""PRODUCT REVIEW: TC2000 Version 12.2 Update by Bruce R. Faber
IN my January 2012 review of TC2000 12, I stated, “What is available as I write this is less than what will be available when you finally read it because user suggestions are constantly being adopted.” This turned out to be more accurate than I could have imagined. And I am certain that the idea will continue to be true, as the improvements are added as a continuing process. Because these new features can be immediately programmed into the Worden computers, it is a relatively speedy process from concept to program capability for the end users.
FEATURES
TC2000 v12 is Worden Brothers’ cloud-based charting program. Your computer needs to run Microsoft Silverlight to run v12. Program calculations are taking place on Worden Brothers’ computers so even non–state of the art computers have very fast results. Platinum (real-time) users pay an extra $9.25 per month for the up-to-the-millisecond data. The Gold (end-of-day) users get their real-time data from the BATS exchange (www.batstrading.com) at no extra cost, but it can be delayed up to 15 minutes.
The first thing that should be mentioned is the cost of the alerts available to the program users. This affects your wallet — in a good way. In the January review, I stated that the alert monitoring service allows you to set your own condition for the alert, and then sends you an email as well as audio and visual alerts.
"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-60-62-product-review-tc2000-version-12-2-update-by-bruce-r-faber-21.gif"",""height"":""631"",""width"":""483""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-60-62-product-review-tc2000-version-12-2-update-by-bruce-r-faber-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-60-62-product-review-tc2000-version-12-2-update-by-bruce-r-faber-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov306prre2,d,"{""minimum-quantity"":""1"",""path"":""ch11n209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:11 (63-65): Product Review: FXCM MetaTrader 4 by Donald W. Pendergast, Jr."",""caption-linebreaks"":""Product Review: FXCM MetaTrader 4 by Donald W. Pendergast, Jr.
FXCM MetaTrader 4 (MT4) is an interesting software offering for traders who focus their trading activities on major forex pairs, and it is especially well-suited to those traders who need a nimble, feature-filled trading, charting, and system development platform that is directly integrated into their trading account. Here’s a brief look at its major features.
MARKET WINDOW
FXCM’s version of MT4 provides an active FX trader with all of the basic functionality required to make fast, efficient discretionary trading a reality. At the top left corner of the default trading screen is the market watch window that provides real-time bid-ask prices on virtually every FX pair (56 of them), major and minor. Need to see how Australian dollar versus US dollar (AUD/USD) pair is doing today, or maybe even the Turkish lira versus Japanese yen (TRY/JPY)? It’s all here. If you want to place a new order or bring up a new chart of any of these pairs, just right-click on the pair’s symbol and it’s done.
Quotes are extended out to five decimal places, depending on the pair under examination, and the price trend is highlighted by either a green or red arrow. The window is a drag-and-drop affair, making it simple to expand or contract it to the size you desire (see Figure 1).
Charting and indicators\nCharting functions are well organized and easy to use; the default window will display four separate charts of the pairs you wish to analyze, in the time frame of your choice, ranging from one minute to monthly charts. The actual available time intervals are one-minute, five-minute, 15-minute, 30-minute, hourly, four-hour, daily, weekly, and monthly. It’s a snap to switch between time frames using the tabs on the toolbar. Applying technical indicators is done by clicking “Insert” on the toolbar, then “Indicators.” I chose to use a parabolic SAR overlay on each of the four USD/Canadian dollar (CAD) charts I set up as my default screen, putting the indicator on the five-minute, 30-minute, four-hour, and daily charts for the pair to get a sense of trend harmonization (Figure 2).
"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-63-65-product-review-fxcm-metatrader-4-by-donald-w-pendergast-jr-20.gif"",""height"":""630"",""width"":""474""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-63-65-product-review-fxcm-metatrader-4-by-donald-w-pendergast-jr-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-63-65-product-review-fxcm-metatrader-4-by-donald-w-pendergast-jr-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov30676tr,d,"{""minimum-quantity"":""1"",""path"":""ch11n209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:11 (66-70, 76-77): Traders' Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders' Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is BC Low’s article in this issue, “Identify The Start Of A Trend With DMI.” Here we present the November 2012 Traders’ Tips code.
Code for Excel is already provided in Low’s article by the author. Subscribers will find that code at the Subscriber Area of our website, www.Traders.com. (Click on “Article Code” from our homepage.) Presented here is an overview of possible implementations for other software.
Traders’ Tips are provided to help the reader implement a selected technique from an article in this issue. The entries are contributed by various software developers or programmers for software that is capable of customization.
Readers will find the November 2012 Traders’ Tips code at our website, Traders.com. Here, you can read some discussion of the technique’s implementation by the Traders’ Tips contributors as well as some example charts.
To locate Traders’ Tips at our website, use our site’s search engine, or click on the Traders’ Tips link from our home page. For past Traders’ Tips, click on the “Archive” button in the S&C Magazine box in the middle of our home page, then click on a Traders’ Tips topic of interest, or click on a different year to see more choices."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-66-70-76-77-traders-tips-by-technical-analysis-inc-21.gif"",""height"":""617"",""width"":""426""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-66-70-76-77-traders-tips-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-66-70-76-77-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov307bofo10,d,"{""minimum-quantity"":""1"",""path"":""ch11n209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:11 (73): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
Currency Trading For Dummies: Getting Started Edition
Heikin-Ashi: How To Trade Without Candlestick Patterns
The Insider Edge: How To Follow The Insiders For Windfall Profits
The Trader’s Guide To Key Economic Indicators, 3rd ed.
Green Investing, 2nd ed.
Winning The Money Game: Separating The Myths From The Truth"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-73-books-for-traders-by-technical-analysis-inc-21.gif"",""height"":""613"",""width"":""412""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-73-books-for-traders-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-73-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov30880at3,d,"{""minimum-quantity"":""1"",""path"":""ch11n209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:11 (82, 80-81): At The Close: The Mindful Trader by Jeffrey R. Bacon"",""caption-linebreaks"":""At The Close: The Mindful Trader by Jeffrey R. Bacon
Traders know that market movements can play havoc with their emotions and concentration. Letting go of concentration-breaking emotions before sitting down to the trading desk can make the difference between a winning trading day and a losing one. Whether you are a high-pressured daytrader watching half a dozen positions on your monitor all day, or a buy & hold fundamentalist pouring over company financials, mindful moments in your trading day can sharpen your focus for more efficient and profitable trades.
WHAT IS MINDFULNESS?
Nyanaponika Thera, in his book The Power Of Mindfulness, described mindfulness as “the clear and single-minded awareness of what actually happens to us and in us at the successive moments of perception.” Traders understand that attention to market activity and research associated with due diligence requires discipline and some degree of separation of emotions from the facts.
David S. Ludwig and Jon Kabat-Zinn, in an article published in the Journal Of The American Medical Association, stated:
The current age has been referred to as one of “continuous partial attention.” E-mail, cell phones, and other technology invade nearly every moment of waking life. Economic pressures demand ever-increasing productivity, even as time to enjoy the fruits of labor declines.
Such external distractions, along with internal distractions like worries, frustrations, depression, anger, and fear, join forces to gnaw away at the trader’s concentration and discipline. Busy traders know such moments interfere with rational trading."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-82-80-81-at-the-close-the-mindful-trader-by-jeffrey-r-bacon-20.gif"",""height"":""634"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-82-80-81-at-the-close-the-mindful-trader-by-jeffrey-r-bacon-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-11-82-80-81-at-the-close-the-mindful-trader-by-jeffrey-r-bacon-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov301reri,d,"{""minimum-quantity"":""1"",""path"":""ch12d208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:12 (10-14): Reducing Risk While Finding Profit by John Ehlers and Ric Way"",""caption-linebreaks"":""Reducing Risk While Finding Profit by John Ehlers and Ric Way
Use this tool to examine the relative price movement of a pair of stocks or exchange traded funds. It makes you look at the bigger picture and prevents you from making ill-considered decisions.
no secret, really — it’s just a new trading approach that makes common sense. But to implement the approach, you need the proper tools. The basic concept was introduced about three decades ago by brokerage firm Morgan Stanley. The idea, known as pairs trading, calls for simultaneously trading two correlated stocks: one to the long side and the other to the short side. The risk reduction arises from the fact that some outside event such as a natural disaster will similarly affect both sides of the trade, with the result as a push on overall profits. One side will win due to the outside effect and the other side will lose.\nThe profitability arises from the break in correlation between the performances of the two stocks. For example, you might trade Ford (F) to the long side and General Motors (GM) to the short side if you believe the negative news stories about GM’s Volt automobile will adversely affect the company’s stock.
HOW CORRELATED ARE THEY?
The traditional technical approach to pairs trading is to monitor the correlation coefficient between the prices of the two stocks. If stocks A and B go up together or go down together, their correlation is theoretically unity. The pairs trade makes a profit when the long side of the trade goes up and the short side of the trade goes down, or at least goes up at a reduced rate. In either of these cases the correlation between stocks A and B is decreased. Monitoring correlation coefficients is mathematical and a little arcane. There is a better way."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-10-14-reducing-risk-while-finding-profit-by-john-ehlers-and-ric-way-20.gif"",""height"":""620"",""width"":""433""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-10-14-reducing-risk-while-finding-profit-by-john-ehlers-and-ric-way-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-10-14-reducing-risk-while-finding-profit-by-john-ehlers-and-ric-way-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov301usvi,d,"{""minimum-quantity"":""1"",""path"":""ch12d208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:12 (16-22): Using VIX To Forecast The S&P 500 by Trent Gardner"",""caption-linebreaks"":""Using VIX To Forecast The S&P 500 by Trent Gardner
Finding a trading system that beats the buy & hold method is a good find, especially in a volatile market. Here is a trading system that uses the volatility index as a forecasting tool and outperforms the buy & hold approach.
Can the volatility index (VIX) be used to predict the future of the Standard & Poor’s 500? New ideas have arisen in academic literature that suggest that combining technical analysis with the VIX can result in a predictive model that will beat the buy & hold of the S&P 500. James Kozyra and Camillo Lento tested nine trading rules and found that eight of the nine produced positive results.
The VIX is often referred to as the fear index or fear gauge. It represents the implied volatility in the stock market for the next 30 days. The VIX is calculated in real time by the Chicago Board Options Exchange (CBOE) and is a weighted blend of option prices for the S&P 500. The formula that calculates the index takes current market prices for all out-of-the-money options for the first and second nearest months.
Figure 1 shows the VIX from 2003 to October 2012. Note how it is mostly flat to down and is punctuated with violent spikes. The spikes in the data occur during times when the S&P 500 is selling off. Thus, it is safe to say that the VIX is negatively correlated with the S&P 500.
USING THE VIX TO FORECAST
The most robust trading rule is a simple 50-day moving average crossover of the VIX. It was able to produce 12.7% annual returns over the period from January 1999 through July 2009. These performances exceed the buy & hold approach by 12.49%, leading them to conclude that the VIX can predict the S&P 500. For the period, buy & hold yielded a total of 2.28% or an annualized yield of just 0.21%."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-16-22-using-vix-to-forecast-the-s-p-500-by-trent-gardner-22.gif"",""height"":""638"",""width"":""468""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-16-22-using-vix-to-forecast-the-s-p-500-by-trent-gardner-30.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-16-22-using-vix-to-forecast-the-s-p-500-by-trent-gardner-31.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov301usvi1,d,"{""minimum-quantity"":""1"",""path"":""faarfr204"",""ysw-page-title"":""Stocks & Commodities V. 30:12 (16-22): Using VIX To Forecast The S&P 500 by Trent Gardner"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-16-22-using-vix-to-forecast-the-s-p-500-by-trent-gardner-27.gif"",""height"":""180"",""width"":""132""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-16-22-using-vix-to-forecast-the-s-p-500-by-trent-gardner-28.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-16-22-using-vix-to-forecast-the-s-p-500-by-trent-gardner-29.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov302isit,d,"{""minimum-quantity"":""1"",""path"":""ch12d208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:12 (24-30): Is It Too Late To Buy Stocks? by Teresa Fernandez"",""caption-linebreaks"":""Is It Too Late To Buy Stocks? by Teresa Fernandez
This often-ignored indicator may have the answer.
When it comes to interest rates, few indicators are talked about more than the yield curve and yet, it is never used as a decision-making tool for buying and selling stocks. It remains in the background of discussions about when to buy, when to sell or, for the braver, more experienced investors, when to go short. During normal times, when long-term yields are higher than short-term ones, the yield curve looks like what you see in Figure 1. Today, for example, a 10-year Treasury note yields 1.57%, compared to the 90-day Treasury bill’s yield of 0.1%, or a yield premium of 1.47% points.
RISING YIELD CURVE
Many economists think that a rising yield curve means that investors believe there will be strong economic growth in the foreseeable future. Throughout the 1990s, not only was the yield curve positive during the entire decade, but it was a steeply rising one, where the differential between short-term and long-term rates peaked in April 1992 — when, for example, the 10-year Treasury note yield of 7.58% was a full 3.81 percentage points higher than the three-month Treasury bill yield of 3.77%. The decade witnessed a period of declining interest rates that saw the fed funds rate decline from 8.32% on January 1, 1990, to 6.48% on December 27, 2000.
"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-24-30-is-it-too-late-to-buy-stocks-by-teresa-fernandez-20.gif"",""height"":""627"",""width"":""459""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-24-30-is-it-too-late-to-buy-stocks-by-teresa-fernandez-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-24-30-is-it-too-late-to-buy-stocks-by-teresa-fernandez-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov303qado,d,"{""minimum-quantity"":""1"",""path"":""ch12d208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:12 (31): Q&A Don Bright"",""caption-linebreaks"":""Q&A Don Bright
CHOOSING A TRADING PLATFORM
What criteria should I use for choosing a trading platform?
It is in the best interests of brokerage firms to make it as easy as possible for their clients to trade. After all, they generate revenue on each transaction and the more convenient it is to enter an order, the more commission they could earn. Accordingly, brokerage firms have worked hard to provide each type of trader an attractive trading solution.
Unfortunately, finding the appropriate platform for your circumstances can be a cumbersome task. Platforms come in all sizes, costs, and specialties, but not all brokerage firms offer all platforms. Further, even platforms developed by third-party vendors likely have different data providers and will certainly have differing margin rules across various brokerage firms. This is because the brokers and exchanges set margin policy, not the platform. Thus, traders should consider their choice of brokerage house and platform within the same process."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-31-q-a-don-bright-21.gif"",""height"":""618"",""width"":""426""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-31-q-a-don-bright-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-31-q-a-don-bright-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov30346tr,d,"{""minimum-quantity"":""1"",""path"":""ch12d208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:12 (32-39, 46): Trading Elliott Waves As Mechanical Systems by Ryan Henry"",""caption-linebreaks"":""Trading Elliott Waves As Mechanical Systems by Ryan Henry
While there will always be subjective aspects to Elliott wave theory, there are also undeniable facts associated with the theory embodying some of its most profitable components. These facts can be used to trade the Elliott wave in an objective fashion as if it were a mechanical system.
The biggest knock on the Elliott wave theory has always been its subjectivity. To be sure, you can find as many Elliott wave market forecasts out there as there are Elliott wave analysts. This could leave the aspiring Elliottician feeling as though there were no black & white approach to trading a theory that otherwise has undeniable merit.
It doesn’t have to be that way. While there will always be subjective aspects to Elliott wave theory, there are also undeniable facts associated with it that embody some of its most profitable components.
These facts can be used to trade the Elliott wave theory in a completely objective fashion as if it were a mechanical system, and I will show you how. First, let’s discuss why the Elliott wave community seems to be such a divisive group and why it couldn’t matter less when it comes to the brass tacks of trading.
WAVE DIRECTION
The entire purpose of the Elliott wave theory is to identify the direction of the trend on each time frame and trade in that direction. To accomplish this, Elliott practitioners use price charts to identify the direction in which impulsive or five-wave patterns are occurring. If the direction in which these patterns are occurring can be determined, it will tell the analyst the direction of the dominant trend on that time frame."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-32-39-46-trading-elliott-waves-as-mechanical-systems-by-ryan-henry-21.gif"",""height"":""774"",""width"":""585""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-32-39-46-trading-elliott-waves-as-mechanical-systems-by-ryan-henry-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-32-39-46-trading-elliott-waves-as-mechanical-systems-by-ryan-henry-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov304caea,d,"{""minimum-quantity"":""1"",""path"":""ch12d208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:12 (40-46): The Cat's Ears Pattern by Giorgos E. Siligardos Ph.D."",""caption-linebreaks"":""The Cat's Ears Pattern by Giorgos E. Siligardos Ph.D.
Here’s a rare but reliable bearish formation: the cat’s ears. A visual hybrid of double-top and failed-cup formations, the cat’s ears formation occurs during downtrends, predicting further price decline with a price target.
Many technical analysts believe the most profitable patterns are the continuation ones. This is because the market has already established a trend and the odds favor its continuation after a short pause. Flags, pennants, rectangles, wedges, and head & shoulders are the widely known bearish continuation patterns. Some time ago, I discovered one more continuation pattern that occurs during downtrends, which I named “cat’s ears” (CE) due to its distinctive appearance. The CE is rare but reliable and offers a well-defined price target.
THE MODEL
In Figure 1 you can see the textbook model of the CE pattern. The CE takes place in the middle of a six-phase context:
• Phase 1: The price is in a severe downtrend\n• Phase 2: The price pauses for a while and oscillates\n• Phase 3: The price bumps up then quickly recedes, creating the “cat’s left ear”\n• Phase 4: The price oscillates again, creating the “scalp of the cat”\n• Phase 5: The price makes a second bump up but again recedes, creating the “cat’s right ear”\n• Phase 6: The price breaks the “scalp line” (the support line defined by the lows in the cat’s scalp) and resumes its previous downtrend.
USUAL VARIANTS
Figure 2 summarizes the usual variants of the pattern. The left and right ears may not be exactly the same height and the scalp line may be slightly above or below the low level of phase 2. While the cat’s ears usually develops in a context of six phases, there are cases where the second phase is absent. There are also cases where phase 2 is long and volatile, so the price appears as if it forms a bottom, but the emergence of the cat’s ears pattern is the last attempt of the price to recover before it dips again.\nAll these variations in the context of the pattern or the pattern itself do not alter its bearish implications.
"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-40-46-the-cat-s-ears-pattern-by-giorgos-e-siligardos-ph-d-20.gif"",""height"":""620"",""width"":""434""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-40-46-the-cat-s-ears-pattern-by-giorgos-e-siligardos-ph-d-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-40-46-the-cat-s-ears-pattern-by-giorgos-e-siligardos-ph-d-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov304fufo2,d,"{""minimum-quantity"":""1"",""path"":""ch12d208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:12 (47): Futures For You by Carley Gardner"",""caption-linebreaks"":""Futures For You by Carley Gardner
CHOOSING A TRADING PLATFORM
What criteria should I use for choosing a trading platform?
It is in the best interests of brokerage firms to make it as easy as possible for their clients to trade. After all, they generate revenue on each transaction and the more convenient it is to enter an order, the more commission they could earn. Accordingly, brokerage firms have worked hard to provide each type of trader an attractive trading solution.
Unfortunately, finding the appropriate platform for your circumstances can be a cumbersome task. Platforms come in all sizes, costs, and specialties, but not all brokerage firms offer all platforms. Further, even platforms developed by third-party vendors likely have different data providers and will certainly have differing margin rules across various brokerage firms. This is because the brokers and exchanges set margin policy, not the platform. Thus, traders should consider their choice of brokerage house and platform within the same process."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-47-futures-for-you-by-carley-gardner-20.gif"",""height"":""617"",""width"":""426""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-47-futures-for-you-by-carley-gardner-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-47-futures-for-you-by-carley-gardner-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov304indo,d,"{""minimum-quantity"":""1"",""path"":""ch12d208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:12 (48-54): Interview: Doing The Wave With Jeffrey Kennedy by Jayanthi Gopalakrishnan and Bruce Faber"",""caption-linebreaks"":""Interview: Doing The Wave With Jeffrey Kennedy by Jayanthi Gopalakrishnan and Bruce Faber
\nJeffrey Kennedy is chief commodity analyst at Elliott Wave International (EWI). With more than 20 years of experience as an analyst and trader, he writes and edits Futures Junctures, a premier forecasting package that focuses on Elliott wave analysis of the commodity markets. Kennedy also leads Elliott Wave Junctures, EWI’s newest educational service, and provides daily video lessons on the Elliott wave, technical analysis and trading.
In addition to being published in Stocks, Futures and Options magazine, Traders’ World magazine, and The Technical Analyst, he has appeared on Yahoo Finance’s “Breakout” and Business News Network’s “Berman’s Call.” He is also an adjunct instructor in the quantitative and computational finance program at the Georgia Institute of Technology, where he teaches technical analysis.\nStocks & Commodities Editor Jayanthi Gopalakrishnan and Staff Writer Bruce Faber spoke with Kennedy on October 10, 2012.
Jeff, can you tell us about what you do?
I am the chief commodity analyst at Elliott Wave International (EWI). I’m pushing 20 years at EWI, actually. I have been counting waves for 20 years. I consider myself an Elliottician, but even though I use the wave principle as my primary technical tool, I am passionate about technical analysis as a whole. I love Steve Nison’s work with candlesticks. I love John Bollinger’s work with Bollinger Bands. I love J. Welles Wilder’s work with relative strength index (RSI) and even Andrew Cardwell’s influence on the RSI as well as Gerald Appel’s moving average convergence/divergence (MACD). I am familiar with all the great names in the industry, and I have been fortunate enough to actually meet some of these people over the years.
So even though I am a trained Elliottician and the wave principle is my primary technical tool, I still find great value in a lot of the other disciplines that technical analysis has to offer. In fact, I teach technical analysis at one of the local universities, Georgia Tech. If I can make it back this year, it will be my fourth year teaching there for their graduate-level class in option trading and technical analysis. I teach a portion of that. I love technical analysis.
How did you get started in this business?
I got into it because I thought this was the place to be. I was fascinated with Wall Street, and stockbrokers and currency traders, the final years I was in college. I wanted to be the guy who really knew what was going on. At the time I didn’t want to be a broker because they basically have marching orders that their brokerage house gives them to follow.
The analyst, on the other hand, seems to know what’s going on. It is the stock market analyst who understands what is going to go up and what is going to go down. That is why I zeroed in on the analysis side of the business versus sales or being a broker.
I live near Atlanta and became familiar with the wave principle and Robert Prechter’s organization, Elliott Wave International (EWI). I joined them in the summer of 1993 and have been here ever since, and have enjoyed every moment of it.
Can you tell us about the Elliott wave?
The Elliott wave principle was developed by Ralph Nelson Elliott in the mid-1930s. What he observed was that the stock market moves in these recognizable patterns that are essentially fractal. Basically, the wave principle is a form of technical analysis based on pattern recognition and crowd psychology. Within the actual discipline of the wave principle are two types of waves. The wave principle primarily gives the analyst and trader a tool to view price action. That context is provided by one of two waves: motive waves and/or corrective waves.
There are five basic or five core wave patterns that I work with as an Elliottician. Within the motive wave family, there are two waves: an impulse wave and an ending diagonal. Within the corrective wave modality or the corrective wave family, you have three. You have a zigzag, what we call a flat, and then we have a triangle. Those are the five core wave patterns that Ralph Elliott identified. These patterns again are fractal in nature. You can pull up a one-minute price chart of the S&P and you can see these fives and threes."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-48-54-interview-doing-the-wave-with-jeffrey-kennedy-by-jayanthi-gopalakrishnan-and-bruce-faber-20.gif"",""height"":""632"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-48-54-interview-doing-the-wave-with-jeffrey-kennedy-by-jayanthi-gopalakrishnan-and-bruce-faber-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-48-54-interview-doing-the-wave-with-jeffrey-kennedy-by-jayanthi-gopalakrishnan-and-bruce-faber-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305qusc1,d,"{""minimum-quantity"":""1"",""path"":""ch12d208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:12 (56-58): Quick Scans: The Wizard by Leslie N. Masonson"",""caption-linebreaks"":""Quick Scans: The Wizard by Leslie N. Masonson
Following the trend and using support & resistance are two of the bedrocks of successful investing. These variables have been incorporated into the program using an algorithm to provide actionable buy & sell signals in four markets. Individuals searching for a nonemotional, time-tested, and profitable approach to investing or trading will find that TheWizard provides an easy-to-learn methodology that works well while providing a high percentage of winning trades. Moreover, the program provides daily and weekly historical data in calendar format for the market, as a whole and for each security over many years, so that the investor can see all past buy & sell signals.
FEATURES
TheWizard was initially reviewed in the June 2011 issue of Stocks & Commodities as an end-of-day offering. The latest program enhancement provides self-directed daytraders, swing traders, and investors with real-time intraday buy & sell signals using five fixed time frames (15, 30, 60, 120, and 240 minutes). Coverage includes 528 active stocks, 30 most active and liquid exchange traded funds (ETFs), and 29 forex pairs. Daily and weekly signals are also accessible on 9,272 stocks, 883 ETFs, 36 futures contracts, and 29 forex pairs. Daily updates are available about 7 pm ET, while weekly updates are provided on Friday by 9 pm ET.\nThe program provides the highest-probability trades in all four markets using an identical complex algorithm based solely on price. It is composed of a number of proprietary indicators that identifies the trend and key support and resistance levels. There are no technical or fundamental indicators used in the algorithm.
Over the course of several weeks, I tracked the percentage of winning trades among all four markets and found that they consistently ranged between 75% and 100% (with a cluster around 85% to 95%), where the average profit of winning trades was much greater than the average loss of the losing trades.
"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-56-58-quick-scans-the-wizard-by-leslie-n-masonson-20.gif"",""height"":""620"",""width"":""431""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-56-58-quick-scans-the-wizard-by-leslie-n-masonson-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-56-58-quick-scans-the-wizard-by-leslie-n-masonson-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305exyo4,d,"{""minimum-quantity"":""1"",""path"":""ch12d208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:12 (59-60): Explore Your Options by Price Headley"",""caption-linebreaks"":""Explore Your Options by Price Headley
VOLATILITY VS. TREND
Should I trade options on the higher-volatility names for greater profit potential, or am I better off focusing on lower volatility for greater stability?
Certainly, the tradeoff between potential profitability and risk assumed is a personal choice. However, there’s an assumption among most option traders that trading higher-volatility names will offer more potential if they can stomach the wider swings. I recommend an alternate path.
There’s a big difference between the volatility of an underlying asset and its trend or price direction, from the beginning to the end of the time period being examined. For example, over a 20-day period, I could show you an example of a volatile stock, ABC, moving up 10% one day, down 10% the next, and in this same zigzag pattern it would make no net movement from its starting point to its ending value over the combined 20 days. Or you could choose another stock, XYZ, going up a consistent 1% per day over 20 days, with no variation. And you’d be up more than 20% net (including compounding) on the stock.
Trend traders know the answer regarding which stock to buy options on: it’s no contest that XYZ will be better for those who want a trend with that type of consistency. In the real world, no stock is that perfect, but the concept still applies. Focus on significant trends for option buying, while considering volatile trading ranges like stock ABC for your option selling strategies, like iron condors.
"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-59-60-explore-your-options-by-price-headley-20.gif"",""height"":""774"",""width"":""585""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-59-60-explore-your-options-by-price-headley-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-59-60-explore-your-options-by-price-headley-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov306prre3,d,"{""minimum-quantity"":""1"",""path"":""ch12d208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:12 (61-65): Product Review: Eikon For Retail Traders by Dennis D. Peterson"",""caption-linebreaks"":""Product Review: Eikon For Retail Traders by Dennis D. Peterson
Eikon for Retail Traders is a robust, full-featured, flexible, real-time, news and data package from MetaStock. Eikon for Retail Traders is a standalone product but also the datafeed for MetaStock Pro 12. Eikon for Retail Traders provides a broad range of features that go beyond simply being a data vendor. It is the retail version of a product that has been available to institutions for years. It isn’t simply quote data; it is all manner of financial data. Besides quotes for stocks, forex, options, and commodities, it has marketwide news as well as company-specific news, economic news on several layers, charts with a long list of indicators that can be applied, and the list goes on.
OVERVIEW
You get an idea of the robustness when you see the home screen (Figure1). Across the top, just above the portion containing the picture, is a banner that has selectable items such as home, asset classes, countries, and news and research. Select one of these items — for example, Countries — and you will see information that is country-specific, or if you select news and research, you can read news for a specific company. You can also customize the information on your home screen using an icon that looks like a gear (Figure 2). When you click on the gear, you get a list of news items to choose from, and as you can see, the list is long."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-61-65-product-review-eikon-for-retail-traders-by-dennis-d-peterson-20.gif"",""height"":""625"",""width"":""458""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-61-65-product-review-eikon-for-retail-traders-by-dennis-d-peterson-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-61-65-product-review-eikon-for-retail-traders-by-dennis-d-peterson-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov30678tr2,d,"{""minimum-quantity"":""1"",""path"":""ch12d208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:12 (66-72, 78): Traders' Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders' Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Trent Gardner’s article in this issue, “Using VIX To Forecast The S&P 500.” Here we present the December 2012 Traders’ Tips code.\nCode for Wealth-Lab is already provided in Gardner’s article by the author. Subscribers will find that code at the Subscriber Area of our website, www.Traders.com. (Click on “Article Code” from our homepage.) Presented here is an overview of possible implementations for other software.
Traders’ Tips are provided to help the reader implement a selected technique from an article in this issue. The entries are contributed by various software developers or programmers for software that is capable of customization.
Readers will find the December 2012 Traders’ Tips code at our website, Traders.com. Here, you can read some discussion of the technique’s implementation by the Traders’ Tips contributors as well as some example charts.
To locate Traders’ Tips at our website, use our site’s search engine, or click on the Traders’ Tips link from our home page. For past Traders’ Tips, click on the “Archive” button in the S&C Magazine box in the middle of our home page, then click on a Traders’ Tips topic of interest, or click on a different year to see more choices."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-66-72-78-traders-tips-by-technical-analysis-inc-20.gif"",""height"":""615"",""width"":""418""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-66-72-78-traders-tips-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-66-72-78-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov307bofo11,d,"{""minimum-quantity"":""1"",""path"":""ch12d208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:12 (76) Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
Operations Due Diligence: An M&A Guide For Investors And Business
The Definitive Guide To Point And Figure: 2nd Edition
The Dividend Investor
Marber On Markets: How To Make Money From Charts
Mutual Funds Explained
Trend Trading Set-ups: Entering And Exiting Trends For Maximum Profits"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-76-books-for-traders-by-technical-analysis-inc-20.gif"",""height"":""613"",""width"":""412""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-76-books-for-traders-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-76-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov308leto6,d,"{""minimum-quantity"":""1"",""path"":""ch12d208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:12 (8) Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
LAST-HOUR TRADING TECHNIQUES
Editor,
I read Ashwani Gujral’s August 2012 article in S&C (“Last-Hour Trading Techniques”). It presents a really nice idea. I would like to know: How many years of data did he use in his backtest (2000–2012?). Which data vendor did he use and which software backtesting tool? How many stocks are included in the backtest? How many of the Indian stocks are liquid, and does he use a liquidity filter?
I’m in Germany, and my research shows that only around 100-150 German stocks are “tradable” from a liquidity point of view. Did Gujral test markets other than the Indian stock market for this idea?
Joachim Lenz
Author Ashwani Gujral replies:
Let’s get straight to your questions:
1) I have tested this strategy over the last two years (with real money). I would think this strategy would work on most days because there is always activity somewhere in the market."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-8-letters-to-s-c-by-technical-analysis-inc-20.gif"",""height"":""614"",""width"":""424""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-8-letters-to-s-c-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-8-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov30880at4,d,"{""minimum-quantity"":""1"",""path"":""ch12d208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:12 (82, 80-81): At The Close: Mastering Your Emotions by Rande Howell, MEd"",""caption-linebreaks"":""At The Close: Mastering Your Emotions by Rande Howell, MEd
In trading, the gap between performance and consistent profitability persists. What is the hard-working, aspiring trader missing in his or her quest to become successful?
ven after years of study and dedication, most traders find consistent profitability elusive. They see others who are using similar trading systems and methods who are successful, so they know it is possible. They assume that it is just a matter of finding the problem and fixing it. Born of a strong work ethic and their focus on solving this problem, traders work harder, jump to new methodologies, new systems, new trading gurus, new markets, or the next big thing that promises success.\nStill, the gap between performance and consistent profitability persists. Although they may be committed to succeeding, what is the aspiring trader missing?
BEING BLIND TO WHAT YOU ARE BLIND TO
The trader’s problem is hidden in plain sight, but his myopic vision does not allow him to see the forest because of the trees. Traders have an unspoken assumption that a solution to their trading performance problems is out there. And when they find it, they will find the success they have been searching for. This bias blinds the trader from evaluating the problem from another point of view.
The truth is that there is a glaring hole in the way traders develop their skills, embedded in how a trader learns to trade — a hole that blocks most traders from breaking through to consistent profitability.
As the traders are developing their skills so they have a proven edge in their trading, they neglect personal development. Without developing the trading mind, the traders’ methodology is hobbled by an emotionally rooted mind built to predict certainty from pattern recognition, not to manage the probability that is necessary for successful trading.
"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-82-80-81-at-the-close-mastering-your-emotions-by-rande-howell-med-20.gif"",""height"":""628"",""width"":""465""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-82-80-81-at-the-close-mastering-your-emotions-by-rande-howell-med-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-12-82-80-81-at-the-close-mastering-your-emotions-by-rande-howell-med-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov301firu,d,"{""minimum-quantity"":""1"",""path"":""ch13b204"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:13 (12-22): Fibonacci Rules To Get Ahead Of The Trend by Ryan Henry"",""caption-linebreaks"":""Fibonacci Rules To Get Ahead Of The Trend by Ryan Henry
Three To Make It Easy
Getting a feel for when market trends begin and\nend is a great skill to have. Gain some insight into\nmarket price moves using Fibonacci rules.
Fibonacci mathematics is a massively underrated\nstock market trading tool. It can\nprovide incredible insight into the true\nnature of market moves, determine likely\ntargets for the end of trending and countertrending\nmoves, and even provide reasonable expectations\nfor the amount of time a move will take before it\nis complete. Most important, it provides us with a\nreliable and scientific way to help determine high-probability\nmarket outcomes, and in this game that\nis the best you will ever do.
In this article, I will provide you with the most\ncritical elements of Fibonacci mathematics as it applies\nto the stock market and how you can use three\nFibonacci rules in your own trading right away. I will\nstart with a background on the man himself and how\nFibonacci mathematics came to be.
Leonardo of Pisa
Leonardo of Pisa, better known as Fibonacci, was\na 13th-century Italian mathematician who spent the\nfirst 30 years of his life traveling and the last 40\nwriting game-changing mathematical texts. One of\nhis biggest and most famous contributions to math\nwas the introduction to Europe of Arabic numerals,\nwhich are the numbers we use today, as a replacement\nfor Roman numerals. He also made major contributions\nto accounting, such as how to calculate the\nprofit created by a transaction, and how to convert\nbetween various currencies. Obviously, all of these contributions have had a huge impact on the very\nessence of today’s stock market, but none were as\nprofound as his discovery of the Fibonacci sequence\nand the golden ratio."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-13-12-22-fibonacci-rules-to-get-ahead-of-the-trend-by-ryan-henry-21.gif"",""height"":""593"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-13-12-22-fibonacci-rules-to-get-ahead-of-the-trend-by-ryan-henry-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-13-12-22-fibonacci-rules-to-get-ahead-of-the-trend-by-ryan-henry-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov30220re,d,"{""minimum-quantity"":""1"",""path"":""ch13b204"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:13 (24-38): 2012 Readers’ Choice Awards by Technical Analysis Inc."",""caption-linebreaks"":""2012 Readers’ Choice Awards by Technical Analysis Inc.
We are pleased to present the Technical Analysis of Stocks & Commodities magazine\n2012 Readers’ Choice Awards (RCA). Each year, we put before our readers a\nballot of products and services related to technical analysis and trading. The following\npages present the products and services you and your peers chose this year\nas your favorites.
The Readers’ Choice Awards begins each year with a list of products gathered by\nthe editors of Stocks & Commodities, with space for write-in votes (given that\nour list doesn’t claim to be complete). Then, to find out what our readers find to\nbe the most useful for their trading, we ask them to choose their favorite products or the ones\nthey find most useful from various categories by going to our website, Traders.com, and filling out the survey there. After that, we compile the results, just in time for the Bonus Issue you hold in your hands.
Products are categorized by their primary purpose. Just because a service\nor product is not listed does not necessarily mean that the product does\nnot have features germane to the category. In addition, some categories\nare divided by cost so that the comparisons can be made on a more level\nplaying field.
The winners in the Readers’ Choice Awards are almost always the dominant\nplayers in their niche, and rightfully so. You may have special needs\nfor your trading, however, so you should keep in mind those products that\nare not the big names in the category of your interest before you make\nyour final decision. The RCA is designed to be an aid for you when you\nare deciding on which of the numerous products and services currently\navailable to use for your trading and investing. With that in mind, we\nthink you’ll find the Readers’ Choices a terrific guide to products and\nservices that you’ll be interested in."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-13-24-38-2012-readers-choice-awards-by-technical-analysis-inc-21.gif"",""height"":""586"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-13-24-38-2012-readers-choice-awards-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-13-24-38-2012-readers-choice-awards-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov304popi,d,"{""minimum-quantity"":""1"",""path"":""ch13b204"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:13 (40-47): Pocket Pivots by Gil Morales & Chris Kacher"",""caption-linebreaks"":""Pocket Pivots by Gil Morales & Chris Kacher
Potent Weaponry
Find buyable pivot points before the stock breaks out and\nemerges into new high price ground. Here’s how.
In today’s fast-moving stock market, any technical breakout\nor powerful price move instantly attracts a herd of\ninvestors acting on the same information. Thus, certain\nprice/volume action in the market and in individual stocks\nbecomes obvious quickly, serving to minimize its effectiveness\nwhen using standard interpretations such as new-high\nor consolidation breakouts.
How does a trader gain an edge?
In technical analysis literature, you will find many references\nand definitions to new-high pivot-point buy points as well as\ntrendline and moving average breakouts, but finding a definition\nof “pocket pivot” buy point “signatures” will not be so easy.
The concept of “buying in the pocket” did not exist until\nChris Kacher described it in 2005. Simply put, a “pocket\npivot signature” is an early base breakout indicator designed\nto find buyable pivot points within a stock’s base shortly before\nthe stock breaks out of its chart base or consolidation and\nemerges into new-high price ground. It can also be employed\nas a continuation buy point where a stock is well extended\nfrom a recent base or consolidation after breaking out several\ndays or weeks earlier.
Institutional investors — for example, hedge funds, mutual\nfunds, and pension funds — do not begin buying any particular\nstock on a breakout to new highs. Most of the time, they prefer\nto buy stocks off of the price lows within a consolidation.\nIntuitively, this makes perfect sense, as institutions create the\nbottoms of chart bases, including the volume/accumulation\nclues along the lows of a constructive base formation, and it\nis institutions that come in and add to their positions in the\nmidst of a well-defined and persistent uptrend, far away from\n“safe” support levels."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-13-40-47-pocket-pivots-by-gil-morales-chris-kacher-21.gif"",""height"":""593"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-13-40-47-pocket-pivots-by-gil-morales-chris-kacher-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-13-40-47-pocket-pivots-by-gil-morales-chris-kacher-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov304injo1,d,"{""minimum-quantity"":""1"",""path"":""ch13b204"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:13 (48-53): Interview: Joyce Selander by Jayanthi Gopalakrishnan & Bruce Faber"",""caption-linebreaks"":""Joyce Selander by Jayanthi Gopalakrishnan & Bruce Faber
It takes skill and ego and nerve to trade in the pits, and this was especially the\ncase decades ago for one of the earliest female traders. Joyce Selander was the\nfirst woman to physically trade financial futures in the pits at the Chicago Board\nof Trade. She continues to work as a member/trader at the Chicago Board of Trade\nand the Chicago Mercantile Exchange. Through her work, she has met diplomats\nand US Presidents and has seen chaos and mayhem in trading. She chronicled her\nexperiences in the pits in her book Joyce: Queen Of The Mountain.
Stocks & Commodities Editor Jayanthi Gopalakrishnan and Staff Writer Bruce\nR. Faber spoke with Selander via telephone on January 18, 2012.
Joyce, can you tell us what\ngot you started in the trading\npits?
When I saw the excitement\nmy first day down in the pits, I\nknew it was what I wanted to do. Back\nin the 1960s, women were usually\nexpected to become schoolteachers or\nnurses. Once in a while, you would find\na girl who wanted to become a doctor,\nand if she ended up going through with\nit, she would often be harassed by her\ncoworkers. So I had that in mind when\nI decided to walk into a man’s world,\nand I did it because it just turned me on\nand gave me goals and ideas about what\nI wanted to do in life.
What kept you going?
Every morning, every single day, I\nwould wake up depressed. But I would\nsay to myself, “Okay, I am going to get’em today!”
That is what it was like. But I think\nit is like that with every trader. It is no\ndifferent because I am a woman. You\nhave to force yourself to get up and face\nthe day. I’d jump out of bed like an idiot,\nand run and get dressed and stare at the\ntrading screens.
How did you get in the door?
I was working at a bank and I was doing margins on marketable collateral\nstocks and bonds. A headhunter called me\none day and said, “If you can compute\nmargins on stocks and bonds, can you do\nthem with commodities?” In 1968, commodities\nincluded cattle and hogs. I said\nI could, so they sent me on an interview\nat the Chicago Mercantile Exchange\n(CME). I walked in and I got hired. Then\ntwo days after I started, I found a big\nproblem in the company that I alerted\nthem about. After that, my supervisor\nmoved me down to the floor.
So in two days I was running a floor\noperation. At the time there were two\nother women, and we were not allowed\nto go into the pits. But I just kept going\ninto the pit anyway, and every day\nthey would fine me. But how else was\nI going to run a floor operation? I had\nto go in to pull an order or get my boss\nout of there."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-13-48-53-interview-joyce-selander-by-jayanthi-gopalakrishnan-bruce-faber-21.gif"",""height"":""593"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-13-48-53-interview-joyce-selander-by-jayanthi-gopalakrishnan-bruce-faber-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-13-48-53-interview-joyce-selander-by-jayanthi-gopalakrishnan-bruce-faber-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305gest,d,"{""minimum-quantity"":""1"",""path"":""ch13b204"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:13 (54-59): Getting Started In Currency Trading by Rudy Teseo"",""caption-linebreaks"":""Getting Started In Currency Trading by Rudy Teseo
It’s Easier Than You Think
Do you think currency trading is too complicated\nor only for millionaires? It’s not.
Not too long ago, the commodity market was the place to go\nto make big money. But sometimes stock market participants\nwho looked into commodity trading had traumatic\nexperiences when they did, because the difference between the\ntwo markets was like night and day. A trader who understood\nthe mechanics of trading AAPL, for instance, could trade any\nother stock on the exchange. In the stock market, prices are quoted in dollars and trades are made in increments of pennies.\nHowever, that isn’t the case in commodities; traders find out\nin a hurry that each commodity is unique. They learn that they\nmust choose three or four commodities and become experts in\nthose few, as it is impossible to trade the entire market.
Fortunately, there is a market where money can be made\nusing all the tools and experience used in the stock market.\nIt’s currencies.
Forex 101
The foreign exchange market (also known as forex, or just\nFX) is where currencies are traded. Today, this market is the most liquid and largest financial\nmarket in the world. Upward of\n$4 trillion a day are traded. The\nmarket is open five days a week,\n24 hours a day from 5pm Eastern\ntime Sunday to 5pm Eastern time\nFriday. Not only that, it’s got\na reputation: when traders get\ntogether and the subject of forex\ncomes up, beginners and oldtimers\nagree that currency trading isn’t\nfor them, whether because of its\ncomplexity or the possibility of\nenormous losses.
This apprehension is probably\nkeeping a lot of you from dipping\nyour toe into the forex waters.\nWithout trying, you’ll never know\nhow well you could have done.
Take a look at the two charts in\nFigure 1. Can you tell which one\nis the one-minute chart of IBM\nand which one is the one-minute\nchart of the EUR/USD (euro/US\ndollar)? Does this give you some\nassurance that these two trading\narenas are not that far apart? Does\nthis mean you can continue to\nuse the same technical analysis\nindicators that you have been\nusing for stock trading?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-13-54-59-getting-started-in-currency-trading-by-rudy-teseo-21.gif"",""height"":""593"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-13-54-59-getting-started-in-currency-trading-by-rudy-teseo-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-13-54-59-getting-started-in-currency-trading-by-rudy-teseo-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov30610si,d,"{""minimum-quantity"":""1"",""path"":""ch13b204"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:13 (60-63): 10 Signs That Tell You When To Stop Trading by Matt Blackman"",""caption-linebreaks"":""10 Signs That Tell You When To Stop Trading by Matt Blackman
Everybody is hunting for the best buy signals, but this focus\nignores a major trading reality: You don’t earn a penny\nuntil you sell. And you won’t keep it if you don’t know when\nto sit on your hands.
Making money in the markets is a 10/90 proposition\n— 10% buying and 90% selling, according to trader\nLarry Williams. But take a look at any trading system\nor service out there and you’ll find they have one thing\nin common —generating buy signals. When exit signals are\nmentioned, it’s almost as an after-thought to the main message. Educators and systems developers will tell you that the\nsizzle comes from getting into the trade, leaving students to\nlearn about money management strategies, including when\nand how to exit on their own.
It is the same old story when it comes to staying out of\nthe market. How many trading books have you read or seen\nadvertised that teach you when to sit on the sidelines than be\ninvested? Not many!
Why not? It’s simple. Exit strategies, money management,\nand stepping aside simply aren’t sexy. Meanwhile, traders are\nhappy to spend a bundle to get the latest buy signal, even though\nthey don’t put a penny in their pockets until they’ve sold. And\nit’s easy to lose it all by trading an ugly market.
With these realities in mind, I thought it was high time to examine signs used by a well-known trader\nto see what he looks for when he’s exiting\ntrades and what keeps him out of the market\naltogether.
These are lessons that Dan Zanger, host of\nChartPattern.com, had to learn the hard way.\nIt was an expensive lesson but one that he says\nis necessary for all traders need to learn if they\nwant to be successful. And what he learned\nstood him in good stead in 2011."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-13-60-63-10-signs-that-tell-you-when-to-stop-trading-by-matt-blackman-21.gif"",""height"":""593"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-13-60-63-10-signs-that-tell-you-when-to-stop-trading-by-matt-blackman-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-13-60-63-10-signs-that-tell-you-when-to-stop-trading-by-matt-blackman-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov308knyo,d,"{""minimum-quantity"":""1"",""path"":""ch13b204"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:13 (8-10): Know Your Edge by Larry Schmidt"",""caption-linebreaks"":""Know Your Edge by Larry Schmidt
Who Are You?
Knowing your edge means more than just knowing the rules of the particular trading system\nyou use and executing them. Here’s how you can understand the personality of your system.
As difficult as it is for novice traders to understand the personality of a system, it is even\nmore difficult to develop a trading plan that will help them succeed. Toward that end,\na disciplined execution is only one of the first steps toward that goal. “Knowing” your\nedge means understanding how well the system performs in up, down, or sideways markets.\nUnderstanding it means that you know that certain systems should only be used in uptrending markets, while other systems\nare more profitable in downtrending\nmarkets. Some may\nperform well in one market\nand not another.
Understanding your system’s\npersonality makes a\nhuge difference in improving\nits profitability. A professional\ntrader can enhance\nhis or her performance by\nchoosing the signals that\na system generates by understanding\ncurrent market\nconditions.
Measuring performance
One of the keys to knowing\nyour edge is measuring\nperformance under a\nhost of market conditions.\nTo explain, let me use a\nsystem that works well in\nnontrending markets. This\ndaytrading system only\ntrades the Russell 2000\nand does not hold positions\novernight. On average, it\ntypically generates three\nto six signals each day.\nFigure 1 is an example of\nthe performance of this\nsystem on June 13, 2011.\nThe measurements track the\nperformance of the:"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-13-8-10-know-your-edge-by-larry-schmidt-20.gif"",""height"":""593"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-13-8-10-know-your-edge-by-larry-schmidt-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-13-8-10-know-your-edge-by-larry-schmidt-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov308dodi,d,"{""minimum-quantity"":""1"",""path"":""ch13b204"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:13 (80-82): Don’t Ditch The Dogs Of The Dow by Teresa Fernandez"",""caption-linebreaks"":""Don’t Ditch The Dogs Of The Dow by Teresa Fernandez
With just one modification, you can create a reliable variation\nof a money maker.
Since its introduction, the dogs of the Dow strategy\nhas appeared in widely read publications and financial\nwebsites. Dogsofthedow.com, which tracks the\nperformance of the strategy, has received accolades. Perhaps\nthe strongest proof of the investing public’s acceptance is\nthe fact that funds have been created to follow this strategy,\nfunds such as the Hennessy Balanced Fund (HBFBX) and\nthe Hennessy Total Return Fund (HDOGX).
Dogs of the Dow strategy
I tested the basic strategy of investing in the 10 highest-yielding Dow stocks for 2000–11 inclusive (a 12-year period), using\nthe following rules: First, the yield is calculated by taking the\nprevious year’s last-quarter dividend, multiplying it by 4, and\ndividing that by the year-end price of the previous year. Why\nnot just divide the sum of dividends paid in the previous year\nby the year-end price? Consider Alcoa (AA), whose 2009 yearend\nprice was $16.12 and the dividends paid in 2009 were from\nfirst to fourth quarters: $0.17, $0.03, $0.03, $0.03.
The total of dividends paid in 2009 of $0.26 divided by\nthe year-end price of $16.12 would have given us a yield of\n1.6%. However, dividend payments were reduced to $0.03\nper quarter. Realistically, we can expect no more than $0.12\n($0.03 x four quarters) in dividends for 2010, or a yield of\n0.74%. As it turned out, dividends paid per quarter remained\nat $0.03 throughout 2010.
Consider the opposite situation of McDonald’s (MCD), whose 2009 year-end price was $62.44.\nDividends paid in 2009 were from first\nto fourth quarters: $0.50, $0.50, $0.50,\n$0.55. The total of dividends paid in 2009\nof $2.05 divided by the year-end price of\n$62.44 would have given us a yield of\n3.3%; dividend payments were increased\nto $0.55 a quarter. We can expect to receive\ntotal dividends of $2.20 in 2010, or a yield\nof 3.5%. As it turned out, not only were\ndividends increased to $0.55 in the first\nthree quarters of 2010, they increased\nfurther in the last quarter to $0.61.
Second, dividends are reinvested per\nquarter in the same stock that paid the\ndividend, odd-lot, and fractional shares.
Third, and perhaps most important, rather\nthan calculate returns based on index levels\nand stock prices, we will assume that at the\nbeginning of 2000, 100 shares of each of the\n10 highest-yielding stocks are purchased for\na total investment of $56,689.50."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-13-80-82-don-t-ditch-the-dogs-of-the-dow-by-teresa-fernandez-21.gif"",""height"":""593"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-13-80-82-don-t-ditch-the-dogs-of-the-dow-by-teresa-fernandez-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-13-80-82-don-t-ditch-the-dogs-of-the-dow-by-teresa-fernandez-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov301trbr,d,"{""minimum-quantity"":""1"",""path"":""ch2f207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:2 (12-21): Trade Breakouts And Retracements With TMV"",""caption-linebreaks"":""Trade Breakouts And Retracements With TMV
A Series Of Indicators Used As One
Trade Breakouts And\nRetracements With TMV
Making good trading decisions involves finding indicators that cut through the market noise. But how do you do it without collapsing under the weight of information?
by Barbara Star, PhD
Chart analysis is a multidimensional affair; no single indicator can tell the entire story. After spending years cluttering my screen with multiple indicators, I discovered that more is not necessarily better because they sometimes present conflicting information. Often, it takes longer to analyze the information needed to make decisions.
The goal is to integrate the knowledge that indicators provide in order to evaluate the situation that leads to making good trading decisions. That means each trader needs to find those indicators that cut through the market news (and noise) in a way that makes most sense to him or her without collapsing from information overload. Here’s a method I have found useful.
The first step is to determine the categories from which to draw the indicators. For me, that includes trend, momentum, volatility, and volume (TMV). These present a multidimensional view of price behavior to supply a more complete picture.
The second step is to determine which indicators in those categories best fit our own personal trading styles. The TMV indicators I use are taken from technical tools found in most major charting packages: Keltner channels, the commodity channel index (CCI), the average directional movement index (ADX), and a volume oscillator. When combined, they reduce the clutter and offer the most bang for the informational buck (Figure 1).
The third and final step is to apply the chosen TMV indicators to trading. Because my preference is to trade in the direction of a trend, my examples will show how the indicators can be applied to trading price breakouts and retracements using either intraday or end-of-day data.
"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-12-21-trade-breakouts-and-retracements-with-tmv-23.gif"",""height"":""620"",""width"":""437""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-12-21-trade-breakouts-and-retracements-with-tmv-30.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-12-21-trade-breakouts-and-retracements-with-tmv-31.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov301trbr1,d,"{""minimum-quantity"":""1"",""path"":""faarfr204"",""ysw-page-title"":""Stocks & Commodities V. 30:2 (12-21): Trade Breakouts And Retracements With TMV"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-12-21-trade-breakouts-and-retracements-with-tmv-27.gif"",""height"":""180"",""width"":""127""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-12-21-trade-breakouts-and-retracements-with-tmv-28.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-12-21-trade-breakouts-and-retracements-with-tmv-29.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov302chop,d,"{""minimum-quantity"":""1"",""path"":""ch2f207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:2 (22-33): Choosing Optimal Moneyness Pt 2 by Giorgos E. Siligardos, PHD"",""caption-linebreaks"":""Choosing Optimal Moneyness (Pt 2 of 2) by Giorgos E. Siligardos, PHD
In his previous article, Giorgos Siligardos demonstrated how the movement of the underlying, the implied volatility changes, and the passage of time all affect the price of options. This time, he shows how a simple computerized approach to the problem of choosing the optimal moneyness could be what you’re looking for.
IN “Buying The Optimal Moneyness,” I showed how the movement of the underlying, the implied volatility changes, and the passage of time affect the price of out-of-the-money, at-the-money, and in-the-money options. In this article, I will show you a simple computerized approach to the problem of choosing the optimal moneyness to buy. For the rest of the article I will deal with European options on broad stock market indexes.
To identify what kind of options are the best to hold when a market trend is expected, we can use the Black-Scholes model and calculate the expected percentage profit in various cases. The results can then be plotted in charts that I call “theoretical %moneyness–%profit” charts (or simply, “%M%P charts”) and produce a curve (namely, the “%M%P curve”). The y-axis of a %M%P chart shows percentage profits, while the x-axis shows the “%moneyness” of an option (that is, how much percentage in-the-money the option is) as a percentage of its spot price.
Example 1: A %moneyness of 5% means that the option is 5% in-the-money (ITM), so if the option is a call and the spot price is, say, 1000, then its strike is 950. If the option is a put, then its strike is 1050.
Example 2: A %moneyness of ‑5% means that the option is ‑5% ITM, so it is 5% out-of-the-money (OTM). If the option is a call and the spot price is 1000, then its strike is 1050, whereas if the option is a put, then its strike is 950.
Example 3: A zero %moneyness means that the option is at-the-money (ATM).
It is clear that an option has positive %moneyness if it is ITM, zero %moneyness if it is ATM, and negative %moneyness if it is OTM. To calculate the values of a %M%P curve:
1. You assume an option, a market trend, and market data for the Black-Scholes model for both the start and the end of this trend.
2. You use the Black-Scholes model (see the sidebar “Black-Scholes Fair Value Formulas”) to find the fair prices P1 and P2 of the option at the start and at the end of the trend, respectively, and you calculate the percentage profit/loss: 100%*(P2-P1)/P1.
3. You repeat the calculations for various strike prices of the option (that is, for various %moneynesses), keeping the time to maturity constant."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-22-33-choosing-optimal-moneyness-pt-2-by-giorgos-e-siligardos-phd-20.gif"",""height"":""615"",""width"":""447""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-22-33-choosing-optimal-moneyness-pt-2-by-giorgos-e-siligardos-phd-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-22-33-choosing-optimal-moneyness-pt-2-by-giorgos-e-siligardos-phd-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov303ovre,d,"{""minimum-quantity"":""1"",""path"":""ch2f207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:2 (34-38): The Overnight Return Study by Erik Skyba, CMT"",""caption-linebreaks"":""The Overnight Return Study by Erik Skyba, CMT
Incorporating Biases\nAnomalies in the markets appear on occasion and challenge the efficient market hypothesis. Here’s a look at the overnight return anomaly, with some findings that may surprise you.
any within the financial community believe that the markets follow the efficient market hypothesis. This theory asserts that the current price of a security reflects all public and private information about that security. Changes in price are due to current news or events, which are impossible to predict. Thus, a tradable follows the path of a random walk, the premise of which states that current prices are not dependent on past prices and are normally distributed over time.
Over the years, many studies have presented data about what academics call “market anomalies.” These anomalies appear from time to time and challenge the efficient market hypothesis. There are three common classifications: fundamental, technical, and calendar-based. There is another class of anomaly that most people simply refer to as “other” for those that do not fit into the original three. In this article we will discuss one of these “other” market anomalies, called the overnight return.
CAN YOU MAKE RETURNS OVERNIGHT?
Day versus overnight returns can be studied by analyzing the differences in returns between the day’s session (defined here as regular NYSE trading hours) and the overnight period. In testing the returns for the day and overnight periods, we used the SPDR S&P 500 exchange traded fund (SPY) from February 2, 1993 to June 7, 2010. We can define the day’s return as the difference between the day’s open and the day’s close. The overnight return is the difference between the day’s close and the following morning’s open."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-34-38-the-overnight-return-study-by-erik-skyba-cmt-20.gif"",""height"":""618"",""width"":""459""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-34-38-the-overnight-return-study-by-erik-skyba-cmt-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-34-38-the-overnight-return-study-by-erik-skyba-cmt-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov304isit,d,"{""minimum-quantity"":""1"",""path"":""ch2f207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:2 (40-42): Is It Over For Gold? by Teresa Fernandez"",""caption-linebreaks"":""Is It Over For Gold? by Teresa Fernandez
Cycles and the futures volume open interest indicator will tell you.
IT is tempting to compare the recent breathtaking runup in gold (from $1,423 in January 2011 to $1,920 in September) to the equally stunning one in 1980. After all, the trajectory of the current move was similar to the one in 1980, and the media and public are just as involved, the way they were in 1980. And investors know that when the media and the public pay attention to a move in a commodity, it is usually close to the end of that move. In fact, I have seen a chart of gold superimposing the 1980 move with the one in 2011, and yes, the two are similar. But are they comparable?
The drop in the price of gold to $1,532 per ounce over a 20-day period in September 2011, a price drop of $388, further contributed to the perception of a peak in the price at $1,920 on September 6. Since then, gold has managed to crawl its way back up to $1,799 on November 8, only to be pushed back down to $1,667 on November 21 by the failure of Congress’ debt-reduction committee to reach an agreement, setting the stage for $1.2 trillion in automatic spending cuts.
IS IT OVER FOR GOLD?
When we are looking at gold charts from 1784 to the present, a 20-year cycle becomes evident in the price movements. The gold price cycle is the natural fluctuation in the price of gold between periods of the public’s and the government’s demand for gold as an investment, an inflation hedge, and a holder of its reserves, and the public’s preference for other investment avenues and the government’s preference for a strong currency instead of gold for its reserves."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-40-42-is-it-over-for-gold-by-teresa-fernandez-20.gif"",""height"":""618"",""width"":""459""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-40-42-is-it-over-for-gold-by-teresa-fernandez-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-40-42-is-it-over-for-gold-by-teresa-fernandez-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov304injo,d,"{""minimum-quantity"":""1"",""path"":""ch2f207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:2 (44-48): Interview: John Carter Of TradeTheMarkets.com by J. Gopalakrishnan and B. Faber"",""caption-linebreaks"":""Interview: John Carter Of TradeTheMarkets.com by J. Gopalakrishnan and B. Faber
John Carter was never that intrigued by the brokerage side of the trading world, preferring to test various online trading strategies. Eventually, he found a trading system he was satisfied with, and once he did, he left corporate America to pursue full-time professional trading. After a few years of trading on his own, he grew tired of daytrading by himself, with only his pet fish for company. He started to seek out other traders and post information online, which led to the launch of TradeTheMarkets.com and SimplerOptions.com.
Today, Carter is a Commodity Trading Advisor with Razor Trading. McGraw-Hill commissioned him to write a book entitled Mastering The Trade, which was released in January 2006.
Stocks & Commodities Editor Jayanthi Gopalakrishnan and Staff Writer Bruce Faber interviewed John Carter on December 6, 2011.
John, how did you get interested in trading?
When I was in high school, I spent the summer working at the mall making minimum wage, which at that time was about $4.25 an hour. I came home one day, and my dad, who is a stockbroker, and his buddies were sitting around the dining room table. I think they were reading Investor’s Business Daily. I asked them what they were doing, and they explained they were looking at making an option trade for the next day. I had no clue what they were talking about, but I had saved up $1,000 over the course of the summer, so I expressed some interest. Since I didn’t have time to open up an account, they told me that they would spot me the $1,000 for this play. They told me that if it made money, great, and if they lost money, I would just owe them the money directly. My response was, “Okay, let’s just try it.”
So what happened?
The next day they bought for me 10 call options on Intel at a dollar, and they ended up selling it four days later for something like $1.75. I made $700 or $800. So they gave me a check for the amount. It really hit me. Wow! I had just spent the whole summer working for almost the same amount, and here in four days, where I didn’t have to do anything, I actually made almost that same amount of money. That got me really interested in trading. I never had the desire to be a broker like my dad, but I just loved the idea of trading. So I really got into technical analysis, the markets, and trading options.
At first it was all about direction. I didn’t know anything about the greeks. I just knew that if Micron Technologies was going up, I should buy some call options. That was the start. I was interested in learning more about it, which led to my taking a course — I can’t remember the title, but I think it was taught by Don Fishback — and eventually, learning about greeks and selling premiums and other things about options.
So you started trading with options. You didn’t start with equities.
That is correct. My first trades were in options.
How did you progress from trading with covered calls to trading more complex strategies? Did it just come from experience?
What happens is that you keep on doing something as long as you are making money. Then when you’re not making money any more, you start looking at why. I would buy the cheap options — that is, out-of-the-money (OTM) calls. What was happening with the call buying was that I would be right on the direction of price movement but I would still lose money. If I was wrong on direction and lost money, then that would make sense. But if I was right on the direction and still lost money, that didn’t make sense to me at all.
That’s when I started looking into premium decay. I discovered that if you wanted to buy options, then it was better to buy them in-the-money (ITM), and if you were going to sell options, then it was better to sell them OTM. I remember getting into some complicated stuff like iron condors. I did not like that. I went from doing something that was simple to something that was extremely complicated, so today, I am back to keeping things pretty simple.
So what kind of simple strategies do you use?
There is just a handful I focus on. First and foremost is a pure directional play. I base this on the underlying stock. If I get a buy signal on Apple (AAPL), I will buy some ITM calls. I like to use a delta of at least 70. I try to give it a bit of time. If it is one week out, I will go out to the next month. I like to make sure there is a month or so in there. Most of the trade setups I do last a week, give or take. That is pretty easy.
I also like doing just vertical spreads, whether it is debit or credit. Taking AAPL as an example, I like to buy a deep ITM call. Then when price gets up to the zone of the first target, instead of just getting out of the option, I will sell an OTM call. I’ll buy ITM and when it gets close to the first target, I will sell an OTM option and then try to collect some premium from that. I like doing that.
The other way is doing a vertical or just doing a credit spread. What I really like, especially when a stock like AAPL or Google (GOOG) slams into some resistance or maybe breaks through some resistance, is selling a call credit spread."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-44-48-interview-john-carter-of-tradethemarkets-com-by-j-gopalakrishnan-and-b-faber-20.gif"",""height"":""633"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-44-48-interview-john-carter-of-tradethemarkets-com-by-j-gopalakrishnan-and-b-faber-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-44-48-interview-john-carter-of-tradethemarkets-com-by-j-gopalakrishnan-and-b-faber-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov304fufo,d,"{""minimum-quantity"":""1"",""path"":""ch2f207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:2 (49): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
WHAT'S A TYPICAL COMMISSION?
What kind of commission is typically charged to trade futures and options online or with a broker?
Before you can look at commission rates objectively, you must understand the background of the futures industry. In recent years, advances in technology have brought the futures and options markets closer to the average retail trader. Because of electronic trading, futures brokerage firms now implement tighter risk management techniques in their quest to prevent traders from losing more money than they have on deposit. Not only that, brokers are now willing to accept clients with much smaller account balances; charge less commission for their services; and offer market access with less interference from risk management teams."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-49-futures-for-you-by-carley-garner-20.gif"",""height"":""608"",""width"":""422""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-49-futures-for-you-by-carley-garner-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-49-futures-for-you-by-carley-garner-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305tafi,d,"{""minimum-quantity"":""1"",""path"":""ch2f207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:2 (50-55): Take The First Step by Tom Hamilton"",""caption-linebreaks"":""Take The First Step by Tom Hamilton
So you want to become a trader? Don’t miss the critical first step that can make you the trader you want to be.
Surely after reading a few books and taking a course or two you’ll be ready to be a profitable trader. Unfortunately, most people entering the profession of trading will give up or go broke within the first year. It’s not because they read the wrong book or used the wrong software; rather, it’s that they skipped the first step: Knowing themselves. Professional traders and money managers understand that they have to find and adapt a trading strategy that will work for their own personality before worrying about the details of hardware, software, and indicators.
DISCOVERING YOURSELF
The critical step often missing in the process is the step of self-discovery. You must first understand how you think, how you learn, and what you enjoy. Without this knowledge, the process of researching a successful trading strategy is next to meaningless and you will likely suffer a high degree of failure before you even begin. Trading is one of the few careers where you do not need to demonstrate competency in it. Doctors, lawyers, electricians, and pilots, for example, all have to do so. With trading, however, you’ll be going up against someone with more experience and more knowledge than you have, and that’s how you gain competence.
So let’s start with the first step, an understanding of yourself.
THE RUSH FOR ANSWERS
Traders who look at different portfolio management techniques can quickly become convinced that active technical analysis is the best practice for their portfolio. Active technical management techniques can set them apart and give them a competitive edge. Opportunities are limitless, and so are the options to consider. But how do you manage such a portfolio? Many well-intentioned traders go right to executing tactics and skip any review of strategies."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-50-55-take-the-first-step-by-tom-hamilton-20.gif"",""height"":""612"",""width"":""434""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-50-55-take-the-first-step-by-tom-hamilton-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-50-55-take-the-first-step-by-tom-hamilton-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305prre1,d,"{""minimum-quantity"":""1"",""path"":""ch2f207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:2 (56-58): Product Review: Ensign Software by Dennis D. Peterson"",""caption-linebreaks"":""Product Review: Ensign Software by Dennis D. Peterson
Ensign Software is an application that you can install on either Windows XP or Windows 7. It provides charting software using a variety of datafeeds, including free broker feeds from Interactive Brokers and TransAct Futures. Ensign also works with a free Yahoo! Finance feed and includes a free forex feed from FXCM. It also includes a couple of features that are unique.
CHARTING
Ensign has the usual price bars plus 11 trademarked bars, which are mostly variations of candlesticks. For example, the Ensign rocket is a candlestick-style bar where the wick has been drawn thicker to show direction (Figure 1).\nWhen setting the time scale, you have some options that are rarely seen and some that are unique. One of the options is to designate the number of ticks that will be used in a bar. We have seen this in TradeStation, when we reviewed the Jurik indicators. When you create a bar that is based on the number of ticks, the x-axis is now timeless, since a bar is no longer created based on a fixed time period, but on a fixed number of ticks. Another option is to create a chart based on range change (Figure 2). In other words, only create a new bar if the range exceeds a value — that is, if price trades within the range of the latest bar, then a new bar is not shown."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-56-58-product-review-ensign-software-by-dennis-d-peterson-20.gif"",""height"":""634"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-56-58-product-review-ensign-software-by-dennis-d-peterson-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-56-58-product-review-ensign-software-by-dennis-d-peterson-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305qaby,d,"{""minimum-quantity"":""1"",""path"":""ch2f207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:2 (59): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
PRICE PRECEDES NEWS? HOW?
Don, I have read a lot of your work in Stocks & Commodities, blogs, and other places. You seem to have a pretty good handle on the nuances of stock trading. This question may seem off the wall. I watch news very closely. I rely on news to make my buying decisions almost exclusively, and would like your feedback on two things, axioms, basically. “Price precedes news” — how can that be? And “Buy on rumor, sell on news.” I don’t get it. I hope you understand my question. This really has me baffled. —From xttrader1982
First off, thanks for the nice words, and thanks for buying and reading S&C.
There are many “axioms” in the trading world (for lack of a better term). Wikipedia states that in “traditional logic, an axiom or postulate is a proposition that is not proven or demonstrated but considered either to be self-evident or to define and delimit the realm of analysis. In other words, an axiom is a logical statement that is assumed to be true. Therefore, its truth is taken for granted, and serves as a starting point for deducing and inferring other (theory dependent) truths.”"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-59-q-a-by-don-bright-20.gif"",""height"":""613"",""width"":""423""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-59-q-a-by-don-bright-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-59-q-a-by-don-bright-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov306exyo,d,"{""minimum-quantity"":""1"",""path"":""ch2f207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:2 (60): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
PUTTING IT TO BETTER USE
If I want to accumulate a stock over time and am willing to buy on weakness, is hedging shares with protective puts the best means to do this? Or would a short put strategy be a better approach?
That’s a wonderful question. In the first scenario, by buying or “marrying” a put in conjunction with shares, you as a trader have guaranteed yourself limited losses and guard the stock against a bearish downside catastrophe. As someone who also wishes to buy on such weakness, as long as your outlook on the stock hasn’t changed, the small resulting loss compared to the kind suffered by a bull simply holding shares will mean you’re in a stronger position to average in or accumulate on weakness and capitalize on attractive value for a longer-term commitment.
With a married put, the trader always maintains control of their maximum risk exposure while allowing for unlimited upside, and after factoring in the cost of the put. These benefits, of course, aren’t free, as the trader is paying for protection, which increases the cost basis of the stock position. This can prove expensive if the stock isn’t dropping strongly enough to make the put worthwhile. Worse yet is if multiple put purchases over the course of a few months prove unnecessary and thus add up to being expensive protection, or if shares simply aren’t rising enough in price to offset the cost of the put(s)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-60-explore-your-options-by-tom-gentile-20.gif"",""height"":""617"",""width"":""422""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-60-explore-your-options-by-tom-gentile-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-60-explore-your-options-by-tom-gentile-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov306trti1,d,"{""minimum-quantity"":""1"",""path"":""ch2f207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:2 (61-70): Traders' Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders' Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Barbara Star’s article in this issue, “Trade Breakouts And Retracements With TMV.” Code for Star’s template of indicators in MetaStock is already provided in Star’s article. Subscribers will also find the same code at the Subscriber Area of our website, www.Traders.com. Presented here is an overview of possible implementations for other software.
Traders’ Tips are provided to help the reader implement a selected technique from an article in this issue. The entries are contributed by various software developers or programmers for software that is capable of customization.
Readers will find all the code listings that accompany the following Traders’ Tips at our website, Traders.com. Provided here is some discussion of the technique’s implementation by the Traders’ Tips contributors as well as some example charts.
To locate Traders’ Tips at our website, use our site’s search engine, or click on the Traders’ Tips link from our home page. For past Traders’ Tips, click on the “Archive” button in the S&C Magazine box in the middle of our home page, then click on a Traders’ Tips topic of interest, or click on a different year to see more choices."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-61-70-traders-tips-by-technical-analysis-inc-20.gif"",""height"":""618"",""width"":""426""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-61-70-traders-tips-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-61-70-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov307bofo1,d,"{""minimum-quantity"":""1"",""path"":""ch2f207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:2 (76): Books for Trader by Technical Analysis, Inc."",""caption-linebreaks"":""Books for Trader by Technical Analysis, Inc."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-76-books-for-trader-by-technical-analysis-inc-20.gif"",""height"":""605"",""width"":""410""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-76-books-for-trader-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-76-books-for-trader-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov30871le,d,"{""minimum-quantity"":""1"",""path"":""ch2f207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:2 (8-11, 71): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
BEST-PERFORMING CANDLESTICKS
Editor,
I read the article “The Eight Best Performing Candles” by Thomas Bulkowski in your November 2011 issue. I found it interesting that the bullish reversal pattern called three inside up was one of the top two best-performing candles. The other one, the above the stomach, I have never heard of, and I have most of the Japanese literature translated from 20 years ago. However, I’m sure there are some that I missed.
Your readers should know that the three inside up pattern was not an actual Japanese candle pattern but one that Norm North and I created about 20 years ago in an attempt to improve the performance of the bullish harami. We did this by adding an extra day to the harami, which gave a closing price above the second day’s body. And yes, it works quite well. There is also a three inside down pattern to enhance the bearish harami, and there are three outside up and down patterns to improve the bullish and bearish engulfing patterns.
Congratulations to Bulkowski for continuing his research on Japanese candle patterns. I especially agree with his comment about avoiding single-line candle patterns, as I say they should neither be traded nor ignored. However, there is always a message.
Gregory L. Morris
Greg Morris is author of Candlestick Charting Explained and Candlestick Charting Explained Workbook. —Editor"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-8-11-71-letters-to-s-c-by-technical-analysis-inc-20.gif"",""height"":""617"",""width"":""423""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-8-11-71-letters-to-s-c-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-8-11-71-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov30880at1,d,"{""minimum-quantity"":""1"",""path"":""ch2f207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:2 (82, 80-81): At the Close Trading Momentum by Brandon H VanLandingham"",""caption-linebreaks"":""At the Close Trading Momentum by Brandon H VanLandingham
Can one indicator be powerful enough to indicate momentum?
Most traders or investors using technical analysis to manage their portfolios use an array of indicators, and chances are they use some form of momentum. Generally, a technical analyst will combine a momentum indicator with one or more other technical indicators, such as volume, or price range indicators. An experienced technical analyst will avoid combining indicators that use the same information to trigger. For example, the moving average convergence/divergence (MACD), relative strength index (RSI), and stochastics all use the same information to trigger entries and exits. Therefore, combining them can be misleading since they are not independent variables. Combining indicators goes beyond the scope of this article, so I will keep it simple and focus on momentum alone.
MOVING AVERAGE CONVERGENCE/DIVERGENCE
One of the most popular price momentum indicators is the MACD, developed by Gerald Appel. Many investors understand how to interpret the MACD, but too many do not understand the basic calculation. Understanding the calculation, in my opinion, is essential in the interpretation of the indicator. The name may be difficult to say, but the calculation itself is simple."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-82-80-81-at-the-close-trading-momentum-by-brandon-h-vanlandingham-20.gif"",""height"":""627"",""width"":""460""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-82-80-81-at-the-close-trading-momentum-by-brandon-h-vanlandingham-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-2-82-80-81-at-the-close-trading-momentum-by-brandon-h-vanlandingham-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov301fore,d,"{""minimum-quantity"":""1"",""path"":""ch3m205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:3 (10-12): Four Reasons Why Stock Prices Move by Martti Luoma and Annukka Jokippi"",""caption-linebreaks"":""Four Reasons Why Stock Prices Move by Martti Luoma and Annukka Jokippi
Why do stock prices move?
IN a S&C December 2009 article titled “Gems Among The Talus,” Thomas Maskell outlined three reasons for stock price moves: growth, earnings, and money flow. He also discussed how those factors might be analyzed using technical analysis.
This article continues to explore that avenue of thought and presents another way of thinking about the causes of stock price moves, and also offers four reasons why stock prices move.
WHY AND WHAT?
Taking a cue from Maskell’s work, we decided to use a valuation model of stocks to provide a solid base to the analysis. We use the model first presented in S&C in May 2001 and later further developed by Luoma and Petri Sahlström elsewhere. Here are four ways that stock price moves are affected:
- Earnings per share\n- Earnings growth\n- Risk-free interest rate\n- Equity risk premium
The first is earnings per share (EPS). A stock acquires value through its ability to make money for its holders in the present and a promise to do so in the future. Thus, the higher the EPS is, the higher the stock price goes. Future expectations also affect stock prices: for example, the growth rate of the EPS predicts the size. In practice, rapidly growing companies reflect rapidly increasing EPS. This is why earnings growth is second on our list of reasons for stock price moves.
Third on our list is a risk-free interest rate, which is also an important factor in the stock market. It controls price through fixing the interest rate on bonds and other instruments. Companies generally need to obtain finance from the market for investment purposes at some point in their development, and that influences the firms’ EPS and hence stock price. But bonds are also alternative investment objects for stocks, and the interest rate available also influences stock prices.
While the interest rate is low and money is cheap, demand for stocks increases as money flows into stocks. When money is cheap, firms see opportunities for bigger returns; for example, companies may invest in more effective machinery, be able to produce more and, as a result, earn more.\nMarket sentiment is also an important factor. While often mentioned, it is nonetheless difficult to define and measure. Consequently, Maskell adopted the concept of money flow rather than market sentiment, but we prefer to concentrate on equity risk premium, the fourth reason on our list. The basic rule is that if market sentiment is strong, the equity risk premium is small."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-10-12-four-reasons-why-stock-prices-move-by-martti-luoma-and-annukka-jokippi-20.gif"",""height"":""621"",""width"":""441""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-10-12-four-reasons-why-stock-prices-move-by-martti-luoma-and-annukka-jokippi-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-10-12-four-reasons-why-stock-prices-move-by-martti-luoma-and-annukka-jokippi-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov301insw,d,"{""minimum-quantity"":""1"",""path"":""ch3m205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:3 (14-22): Introducing SwamiCharts by John Ehlers and Ric Way"",""caption-linebreaks"":""Introducing SwamiCharts by John Ehlers and Ric Way
Traditional technical indicators tend to provide a narrow view of the market. This technique can give you a broader one and help you select an indicator lookback period.
Here’s to technology in the 21st century! Computer hardware is fast and plentiful, with GPU graphics processors in our tablets and smartphones, and now, we can catch up with visualization improvements in our technical indicators. The SwamiCharts data visualization technique is created as a mosaic of technical indicator readings at multiple lookback periods, with each reading pieced together into a heatmap chart. This technique retains the core functionality of the technical indicators you are already familiar with while condensing more information into an easy-to-interpret heatmap.
In this, the first of several articles, we introduce SwamiCharts as a better way to visualize technical indicators in a big-picture context. We illustrate why the narrow scope offered by traditional indicators can result in a myopic view and how SwamiCharts solves this issue.
WHAT'S A GOOD LOOKBACK PERIORD?
When J. Welles Wilder introduced the relative strength index (RSI) in the late 1970s, a number of early technicians questioned why he used a 14-day lookback period. This led one of these authors of this article, John Ehlers, to a decades-long quest for the “correct” lookback period and spawned the idea for his MESA cycles-measuring program.
MESA enables indicator lookback periods to be adaptive to measured market conditions. Alternative techniques have been suggested, but each has inherent limitations:
1. The visualization may be narrow in scope. You’re not seeing the big-picture view of the indicator’s response to a range of periods.
2. The process of dynamically adjusting the lookback period introduces noise.
3. Adaptive techniques introduce lag.
Traditional indicators give you details, but what does it mean? For example, a chart of the RSI shows you precisely when the indicator crosses over 80, but does this occurrence always indicate the same thing? SwamiCharts offer a tradeoff for a better visualization — a wider view of the indicator’s true meaning. In addition, SwamiCharts provide a solution in the choice of lookback period. And of course, you can always continue to plot your old favorite classic indicator alongside a SwamiCharts version if you so choose.
In this article you will see several classic technical indicators rendered as SwamiCharts and be given tips on how to write your own indicators that way as well."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-14-22-introducing-swamicharts-by-john-ehlers-and-ric-way-20.gif"",""height"":""630"",""width"":""477""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-14-22-introducing-swamicharts-by-john-ehlers-and-ric-way-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-14-22-introducing-swamicharts-by-john-ehlers-and-ric-way-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov302qaby,d,"{""minimum-quantity"":""1"",""path"":""ch3m205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:3 (23): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
THE OPENING PLAY
I was wondering if you could help with a couple of things. You have written about your opening play a couple of times. Now that we seem to have 24-hour trading, with electronic communications networks (ECNs) and so on, is that play still working? Are there any major changes you can address that I may not know about? In addition, if you have time and space, could you please explain again how you see the end-of-day shares that are being bought or sold ahead of time? How can I get this information? Is this a special privilege? Is it something that has to be paid for? Thank you.\n— eqtyguy2008
Okay, good questions, and good time to review. Historically, the first hour and last hour have been the better times to trade, and this applies even more these days. Intraday, my traders are more focused on their “precalculated” numbers involved in correlated pairs and mergers. So there’s still some daytrading going on, but it’s more short term over a few days on multiple positions."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-23-q-a-by-don-bright-20.gif"",""height"":""616"",""width"":""423""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-23-q-a-by-don-bright-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-23-q-a-by-don-bright-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov302chtr,d,"{""minimum-quantity"":""1"",""path"":""ch3m205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:3 (24-30): Changing The Trader's Mindset by Ronald M. Brandt"",""caption-linebreaks"":""Changing The Trader's Mindset by Ronald M. Brandt
Reorienting a mindset for specific trading components requires understanding your current one, knowing what leads to trading success, identifying what needs to be changed, and developing a plan during trading activity. So how do you do it?
A trader’s profession requires a blend of training and experience from the fields of business, economics, mathematics, and psychology. What percentage comes from each discipline, however, is always a matter of debate. Some traders say that psychological factors can be removed by using rule-based mechanical systems with automated entry and exits. Some believe that combining discretion with mechanical signals provide the best results, while still others believe that trading is 100% psychological and that traders only trade their belief system about the markets and not the markets themselves.
WINNING VS LOSING
But one thing that everyone can agree on is that succeeding as a trader is difficult. Statistics suggest that in the commodity futures and forex markets, 90% of everyone who try their hand at trading lose over the long term. But there are untold numbers of successful trading systems and methods that have proven to be winners. So why do so many traders lose money?
The key is how they trade. How people must think during trading is exactly the opposite of how they are conditioned to think in business and society. How a trader views his or her trading means everything in the realm of the financial markets! It is the difference between winning and losing.
"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-24-30-changing-the-trader-s-mindset-by-ronald-m-brandt-20.gif"",""height"":""618"",""width"":""426""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-24-30-changing-the-trader-s-mindset-by-ronald-m-brandt-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-24-30-changing-the-trader-s-mindset-by-ronald-m-brandt-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov303fibu,d,"{""minimum-quantity"":""1"",""path"":""ch3m205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:3 (32-34,61): Fiery Bull Trade by Partha Mukherjee"",""caption-linebreaks"":""Fiery Bull Trade by Partha Mukherjee
It pays to know your stock. Here’s a step-by-step analysis about how one trader likes to trade the markets.
WE often hear you should buy strong stocks in the strongest sectors. But as with all stock market knowledge, the application of this knowledge can be a challenge. Let me share with you a type of trade I often find very rewarding, a fiery bull trade.
In his book Getting Started In Chart Patterns, Thomas Bulkowski mentions that stocks that rise more than 90% within a three-month period have the best performance. All you have to do is to get into such stocks during a flag/pause. With that in mind, I started looking for such stocks two years ago, using a four-step process:
STEP 1: TRIGGER\nBest movers in the strongest sectors
The first step is to find the best movers in the strongest sectors. One such stock I found was Hansen Medical (HNSN) when it moved from $1.58 on February 1, 2011, to a high of $3.78 on April 26, 2011. That is 139% in a matter of nearly 90 days. This was the period in the stock market when the health-care sector was leading, so I decided to look deeper into HNSN.
Step 2: THE BIG STORY\nHigher time frame
Next, I looked at a higher time frame chart to get a bigger picture. Looking at the monthly chart of HNSN, I saw a clear trend reversal as per the 1-2-3 reversal pattern as described by Victor Sperandeo in his book Trader Vic: Methods Of A Wall Street Master. See the sidebar “1-2-3-Reversal Pattern” for a description of this setup. The monthly chart can be seen in Figure 1.
Step 3: THE DANCE\nDistinctive movement
Every stock has its own signature moves, and finding that move is critical if you want to trade that stock successfully. I started to analyze the HNSN weekly chart. HNSN has a habit of pausing about six weeks before rising for the next four to five weeks, so I thought of pursuing the stock after its characteristic five-week pause. This is pretty much the high-to-high count Gann technique, which I learnt from Robert C. Miner’s book High Probability Trading Strategies. You can see the HNSN weekly rhythm in Figure 2.\nWith the HNSN rhythm in hand and knowing very well that HNSN likes to rest for six weeks, I put in an alert on my calendar to be notified after four weeks from the first weekly red candle with a lower high."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-32-34-61-fiery-bull-trade-by-partha-mukherjee-20.gif"",""height"":""626"",""width"":""459""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-32-34-61-fiery-bull-trade-by-partha-mukherjee-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-32-34-61-fiery-bull-trade-by-partha-mukherjee-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov303sytr,d,"{""minimum-quantity"":""1"",""path"":""ch3m205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:3 (36-41): System Trading Made Easy With John Bollinger"",""caption-linebreaks"":""System Trading Made Easy With John Bollinger
John Bollinger is an analyst, author, and president and founder of Bollinger Capital Management, an investment management company that provides technically driven money management services. Bollinger Capital Management also develops and provides proprietary research for institutions and individuals. He may be best known as the creator of Bollinger Bands, which he developed in the mid-1980s. Since then, investors and traders have come to view Bollinger Bands as a reliable tool for assessing expected price action, and the bands are featured on most financial charting software and websites.
Bollinger’s Capital Growth Letter, which has been published since 1987, provides market commentary, charts, and investment advice for the average investor employing a technically driven asset allocation approach. He has also developed several investor websites, among which are BollingerBands.com, EquityTrader.com,\nBollingerOnBollingerBands.com, BBScript.net, and a forex website, BBForex.com.
John Bollinger, a longtime proponent of rational analysis, the combination of technical and fundamental analysis, was the first analyst to earn both Chartered Financial Analyst (CFA) and Chartered Market Technician (CMT) designations.\nS&C Editor Jayanthi Gopalakrishan and Staff Writer Bruce R. Faber interviewed John Bollinger via telephone on January 4, 2012.
John, as you and your work are well known in our industry, can you begin by telling us the most recent things you’ve been working on?
A little more than two years ago, I had the pleasure of spending time with Ian Woodward, who has been doing some interesting things with Bollinger Bands. It was an inspiring time for me. Over the next few weeks, I realized that I could develop an entire framework of indicators around Bollinger Bands that covered virtually all of the traditional technical analysis tasks.
Where did you start?
The first result was an indicator called BB Impulse, which quantifies price action in relation to the bands, and from there I went on to develop a trend indicator. I next developed a momentum indicator, and kept expanding the horizon until I had a complete suite of indicators that were all logically consistent and drawn from the same basic pool of technical information. I’ve ended up with an array of new tools. I have been able to leave behind some older tools and replace them with better ones. It has been a great two years.
The two projects I worked on went way back for me. When I created Bollinger Bands, I created two indicators to go with them, %b and BandWidth. %b tells us where we are in relation to the bands. If prices are at the upper band, %b is 1 and if prices are at the lower band, %b is zero. If prices are at the middle band, %b is 0.5. BandWidth tells you how wide the bands are. In order to measure that, we use the middle band, or the moving average, as a reference point. Those were the two building blocks we had to start with.
And what was the second project?
About that time I started thinking about a language in which we could express these ideas and exchange these ideas with other technicians and others who are interested in developing systems and approaches to the market. Using as a basis a logic we employed, I created a simple computer language and called it “Trade.” To get there we tried to overcome the disadvantages of traditional logic for traders. In traditional logic, everything is black or white, one or zero, yes or no, long or short.\nBut that does not really model how traders think about the markets. So I worked with an engineer friend and developed a tristate logic, which was 1, 0, and ‑1. We could map that better onto the trading process — that is, long, flat, or short. With that, we had a logic that modeled what traders did better. I wrote Trade to be able to communicate those ideas. All of these parts and pieces started to come together in the past couple of years.\nAt some point I abandoned the tristate logic model because I realized that even that was not sufficient to describe what traders really did. Traders often scale in or out of positions, or are 20% long, or 20% short, or some variation. So we combined the ideas of fuzzy logic from the original tristate model and produced a smooth-valued logic that describes how traders function in real life.\nThen the final piece was to write the language as a computer interface to express our ideas in a straightforward way. We wrote a compiler that would interpret those ideas and put them on the screen.\nIt’s been a very, very active two years, during which I pulled together a large number of threads from past years and combined them into a powerful framework for traders.
Sounds like a lot of work. So how would a trader use something like that?
It was an awful lot of ideas in a very short time, so it might be better to focus on a few of the indicators and how they might be used."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-36-41-system-trading-made-easy-with-john-bollinger-20.gif"",""height"":""632"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-36-41-system-trading-made-easy-with-john-bollinger-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-36-41-system-trading-made-easy-with-john-bollinger-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov304exyo,d,"{""minimum-quantity"":""1"",""path"":""ch3m205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:3 (44-45): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
A BROKEN BUTTERFLY?
Being relatively new to options, I’m paper trading various strategies until I thoroughly understand them and commit real capital. One position that’s stumped me is a long butterfly using two contracts (2 x (4) x 2) purchased for $1.00. The stock proceeded to dive shortly thereafter and much to my surprise, instead of a maximum loss I thought was contained to $200, the position was down more than $1,200! Can you help explain this to a slightly disconcerted newbie?
First, let’s start off with a bit of congratulations on your willingness to learn the mechanics of option trading and smart sense to utilize your broker’s paper trading platform as an integral part of that process. As for your long butterfly position, it sounds as though you have a modified version of this spread, with a larger embedded, sold vertical as your likely profit & loss culprit.
Say what? Know this: a long butterfly can have a unique risk profile with greater losses than the initial debit if the purchased vertical (either lower bull call spread or higher bear put spread) is tighter than the sold vertical component. Similarly, long butterflies can be modified with different ratios such as 1 x (3) x 2 with equal strike distances for the verticals and yield similar lopsided risk on one side of the spread."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-44-45-explore-your-options-by-tom-gentile-20.gif"",""height"":""618"",""width"":""425""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-44-45-explore-your-options-by-tom-gentile-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-44-45-explore-your-options-by-tom-gentile-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov304prre1,d,"{""minimum-quantity"":""1"",""path"":""ch3m205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:3 (46-49): Product Review: OptionVue by Dennis D. Peterson"",""caption-linebreaks"":""Product Review: OptionVue by Dennis D. Peterson
OptionVue software, which specializes in option trading, is a product that needs to be downloaded and installed on your computer. The software is designed to automatically use real-time datafeeds (for example, QuoteVue at $199.99 a month or $1,695 annually). You can make trades directly from OptionVue with two different brokerage firms, and there are two choices for a datafeed: OptionVue (using TrackData) and PFGBest for futures and future option trades.
FEATURES
OptionVue has some nifty features, and the website offers a number of videos to help users. They also have a patient and informed staff. In fact, almost all of the technical staff trade options themselves. Trading options is different than trading equities. Option traders focus on volatility and what the market is paying for volatility, and as a consequence, they use a different set of tools than those used by equity traders. Option traders want to have an idea how a stock, index, or future is going to move in what time frame, and commonly, they hedge their trades through the use of multiple-leg option strategies.
QUOTES AND VOLATILITY
OptionVue has a quote screen that comes up automatically and lists all the items, such as stocks, indexes, and futures, you have chosen to view (Figure 1).
From your quote display, you can open up an option chain simply by double-clicking on the symbol of your choice. But before you do that, you might want to look at the volatility chart for the symbol you have selected.
For those not so familiar with options, let’s take a quick step back. Option traders have two types of volatility, historical and implied. For historical volatility, OptionVue has come up with its own adaptation that it calls “statistical volatility” (SV). It is a standard deviation of price movement but uses the daily high and low, rather than closing prices. The high and low values it chooses are exponentially weighted over the previous 20 days. The exact computation can be found in OptionVue’s user manual at www.optionvue.com/OV6Help/OpVue.htm."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-46-49-product-review-optionvue-by-dennis-d-peterson-20.gif"",""height"":""631"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-46-49-product-review-optionvue-by-dennis-d-peterson-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-46-49-product-review-optionvue-by-dennis-d-peterson-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305prre2,d,"{""minimum-quantity"":""1"",""path"":""ch3m205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:3 (52-54): Product Review: eSiganl 11 by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Product Review: eSiganl 11 by Jayanthi Gopalakrishnan
After having used eSignal for several years, my first reaction to the latest release, eSignal 11, was how modern the user interface was. After I downloaded the program from the eSignal website — which was a snap — and opened it, the unfamiliar interface with the black background and lack of the ever-so-familiar toolbars gave me the impression that I had to relearn everything. Fortunately, that wasn’t the case. Once I started exploring, I realized it wasn’t too different. Once I figured out that toolbars were tucked in and the right-click feature and the use of tabs along the bottom were used extensively, it didn’t take long to get acclimated.
FEATURES
Along the top of the screen, you will see a menu bar. The leftmost bar, the eS menu, takes the place of the file menu from the previous versions. Once I clicked on that menu, I saw the typical eSignal features and it was smooth sailing from there. From that point you can create a new page, open/close pages, save pages, print pages, and so on. The screenshot in Figure 1 gives you an idea of the new eSignal 11 interface.
At the bottom of the dropdown menu there’s a button labeled “Application properties.” This is what you use to change the appearance of your windows, the mode of the windows (docked or independent), whether you want your pages to open from previous sessions, or whether you want to start with an empty screen. You can also opt to select Auto Save pages. Currently, there are two color themes available but there are plans to add more. By default, the page mode is docked, and if you want to change the location of any of the windows, all you have to do is drag and drop them to a new location.
To the right of the dropdown menu you can see a list of recently visited pages. With just one click, you can go back to a page you previously visited.
Other things you can do from here is check your connections, set your time zones, choose how you want your data to appear, select colors for quote ticker/bar, and select your trading preferences, among other things. I should also mention that eSignal 11 supports eight different languages, which include English, Japanese, German, Italian, French, Spanish, Chinese, and Russian.
The next menu — new — enables you to create new watchlists, charts, time and sales, hot lists, and so on. These windows can, of course, be arranged on your desktop in any way you prefer. The image in Figure 2 consists of a watchlist, hot list, chart, and research window."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-52-54-product-review-esiganl-11-by-jayanthi-gopalakrishnan-20.gif"",""height"":""625"",""width"":""458""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-52-54-product-review-esiganl-11-by-jayanthi-gopalakrishnan-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-52-54-product-review-esiganl-11-by-jayanthi-gopalakrishnan-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305scfo,d,"{""minimum-quantity"":""1"",""path"":""ch3m205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:3 (55-56): Scanning For Cash-Rich Stocksy by Donald W. Pendergast Jr."",""caption-linebreaks"":""Scanning For Cash-Rich Stocksy by Donald W. Pendergast Jr.
You can scour the markets for stocks meeting specific fundamental and technical criteria, and here’s one way to do it.
TradeStation, as those who rely on it for their trading activity already know, has so many features that to explore and write about every one of them would probably take thousands of hours of research and compilation. In this article, we’ll look at one particular feature — the Scanner — to seek out stocks that meet a specific set of fundamental and/or technical criteria. Then we’ll take a look at the charts of the top-ranked stocks and see what kinds of trading opportunities may exist.
Let’s look at the scan in TradeStation (Figure 1); this standard scanning template looks for stocks with a strong cash position and a positive EPS — and that could be a great set of criteria for risk-averse investors and traders. You’ll note the fundamental criteria in the first screenshot; I won’t go into detail, as the list of “fundie” items included are self-explanatory. One change I made was that I upped the 10-day average daily volume figure from 100,000 to 500,000 and I lowered the close value to 5 (from 10). I also added a technical item at the very bottom, which tells the scan to only evaluate stocks that are outperforming the .SPX over the past four weeks, returning the top 25 stocks that meet the fundamental criteria.
Essentially, the scan, as modified, seeks cash-rich stocks with a positive earnings per share (EPS) that are also outperforming (high relative strength [RS]) the Standard & Poor’s 500 over the last 28 days. All that’s left to do is to include a list of stocks to scan. I chose the NYSE stocks list and tossed in the gold and silver stock list. See Figure 2.
The scan output appears a few moments after pressing the run button; I clicked on the “4 wk vs. SP 500” column header to bring the highest-ranked RS stocks to the top. BanCorpSouth (BXS) was ranked the top cash-rich stock that was also outperforming the .SPX over the past four weeks.
That’s good to know, but what is BXS’s daily chart telling us? To find out, simply right-click on the BXS ticker, click create and then chart analysis for BXS; a five-minute (default) chart appears and then you can format it, changing it to a daily (weekly, monthly, 60-minute, whatever you like) chart if you prefer.
"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-55-56-scanning-for-cash-rich-stocksy-by-donald-w-pendergast-jr-20.gif"",""height"":""625"",""width"":""458""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-55-56-scanning-for-cash-rich-stocksy-by-donald-w-pendergast-jr-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-55-56-scanning-for-cash-rich-stocksy-by-donald-w-pendergast-jr-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov306trti2,d,"{""minimum-quantity"":""1"",""path"":""ch3m205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:3 (62-71): Traders' Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders' Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is John Ehlers & Ric Way’s article in this issue, “Introducing SwamiCharts.”\nCode in EasyLanguage for TradeStation is already provided in the article. Subscribers will also find the same code at the Subscriber Area of our website, www.Traders.com. Presented here is an overview of possible implementations for other software.
Traders’ Tips are provided to help the reader implement a selected technique from an article in this issue. The entries are contributed by various software developers or programmers for software that is capable of customization.
Readers will find all the code listings that accompany the following Traders’ Tips at our website, www.Traders.com. Provided here is some discussion of the technique’s implementation by the Traders’ Tips contributors as well as some example charts. Code is shown as space allows.
To locate Traders’ Tips at our website, use our site’s search engine, or click on the Traders’ Tips link from our home page. For past Traders’ Tips, click on the “Archive” button in the S&C Magazine box in the middle of our home page, then click on a Traders’ Tips topic of interest, or click on a different year to see more choices."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-62-71-traders-tips-by-technical-analysis-inc-20.gif"",""height"":""620"",""width"":""436""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-62-71-traders-tips-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-62-71-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov307fufo,d,"{""minimum-quantity"":""1"",""path"":""ch3m205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:3 (72): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
LIMITS TO LIMIT ORDERS
When is it appropriate to use a limit order to enter a market, and when should they be avoided?
As a reminder, a limit order is one in which execution is permissible only if it can be done at a price named by the trader, or at a better price. You might hear this order type referred to as an “or better” order.
Most traders are probably familiar with order types — specifically, the difference between a limit order and a stop order. Yet many of them use various order types to their detriment rather than their advantage. For instance, they may miss trades because of unfilled limit orders while attempting to save a measly $12.50, or buying a futures contract on a stop at a price that ends up being the high of the move.
Clearly, what is a better price for buyers is not for sellers. A buyer would be better off with a lower price (cheap), and a seller would be better off with a higher price (expensive). This is like anything else in business, or life for that matter, so if you look at things logically it will sink in.
"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-72-futures-for-you-by-carley-garner-20.gif"",""height"":""618"",""width"":""424""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-72-futures-for-you-by-carley-garner-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-72-futures-for-you-by-carley-garner-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov307bofo2,d,"{""minimum-quantity"":""1"",""path"":""ch3m205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:3 (76): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
- All About Exchange-Traded Funds
- Commodity Trader’s Almanac 2012
- Stock Trader’s Almanac 2012
- Buy And Hedge: The 5 Iron Rules For Investing Over The Long Term
- Down Traders: The Only Guide You Will Need To Make Money On Stocks That Go Down
- The Little Book Of Stock Market Profits: The Best Strategies Of All Time Made Better"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-76-books-for-traders-by-technical-analysis-inc-20.gif"",""height"":""612"",""width"":""414""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-76-books-for-traders-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-76-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov308leto,d,"{""minimum-quantity"":""1"",""path"":""ch3m205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:3 (8): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
GOLD SYSTEM
Editor,
In the July 2011 issue of Stocks & Commodities, Donald Pendergast Jr. wrote about a fully mechanical intraday trading system for gold futures that he called GoldTASCMaster, but he also mentioned an article he wrote on a swing-trading system, and the July 2011 article’s Figure 1 (“The Eldorado Gold System”) seems to be from the other referenced article; is this the case?\nDoes he intend to do any follow-up articles in the near future on these systems? Has he traded either of these systems successfully?
Thanks for any clarification or additional information that you can provide.
Peter LaBreck\nMilan, MI
Donald Pendergast’s July 2011 article, “Calling The Tune In The Gold Market,” was an enhancement of one of his earlier articles published in our online publication, Traders.com Advantage (“Gold Futures System Music To The Ears?”, February 4, 2011, www.traders.com). The chart in Figure 1 appears in both articles. Pendergast has not followed up on either system, as he has since developed better systems. These systems were presented as a work in progress to see what would work. He has not traded these systems for his personal account.\n—Editor"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-8-letters-to-s-c-by-technical-analysis-inc-20.gif"",""height"":""616"",""width"":""423""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-8-letters-to-s-c-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-8-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov30881at,d,"{""minimum-quantity"":""1"",""path"":""ch3m205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:3 (82, 81): At The Close: Using Price Extreme Values by Voznjuk Vladimir Vladimirovich"",""caption-linebreaks"":""At The Close: Using Price Extreme Values by Voznjuk Vladimir Vladimirovich
Here’s one way to look for entry points by using extreme price values.
ALL traders dream about opening a position at an extreme low or high price value. In an ideal world, everybody would open short positions at a high price and open long positions at a low price. This is because doing so guarantees a small floating drawdown, minimal risk, and the possibility of an effective trailing position.
To pursue this idea, I created an interesting algorithm to search for entry points using extreme price values. Here is an idea for such an indicator. (Code follows for the MetaTrader 4 trading platform.) The charts I have created will help you to understand this algorithm better."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-82-81-at-the-close-using-price-extreme-values-by-voznjuk-vladimir-vladimirovich-20.gif"",""height"":""618"",""width"":""429""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-82-81-at-the-close-using-price-extreme-values-by-voznjuk-vladimir-vladimirovich-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-3-82-81-at-the-close-using-price-extreme-values-by-voznjuk-vladimir-vladimirovich-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov301sest,d,"{""minimum-quantity"":""1"",""path"":""ch4a208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:4 (12-18): Setting Strategies With SwamiCharts by J. F. Ehlers and R. Way"",""caption-linebreaks"":""Setting Strategies With SwamiCharts by J. F. Ehlers and R. Way
Once you have identified a cyclical movement, you may think the most difficult part is over. Unfortunately, not all cycles are tradable. Here’s one indicator that can tell you the best time to use a swing wave as an effective trading signal.
For the most part, the rendering of technical indicators has not changed since the days of pencil & paper charting. The powers of modern computers have made this unnecessary and allowed for deeper insight into market activity. In our last article, we introduced SwamiCharts as a new and intuitive way to view indicators in context of all lookback periods. SwamiCharts accomplished this by using the vertical scale as the indicator lookback period and painting the indicator value at each lookback period as a color.
In this article, we will show you how to see all the waves in the data, which leads to some startling conclusions. However, the existence of cycles does not necessarily mean they are all tradable; for example, the cyclic swings can be overwhelmed by the slope of a trend. We will show you how to compute this and how to use the result as a decision to follow the trend or to swing trade.
SWAMICHARTS SWING WAVE
If you know the correct cycle period, the best way to isolate the wave is to use a bandpass filter. We decided to use the EasyLanguage code to compute the bandpass filter in corona charts to measure the dominant cycle and one of the filters in the Swiss army knife indicator. For your convenience, a two-pole bandpass filter EasyLanguage code fragment is shown in the first sidebar, “EasyLanguage Code Fragment To Compute A Bandpass Filter.” The bandpass filter code is displayed in the second sidebar, “Bandpass Filter Code In EasyLanguage.” In the code, delta = 0.1 means the filter has a +/‑10% passband about the tuned cycle period."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-12-18-setting-strategies-with-swamicharts-by-j-f-ehlers-and-r-way-20.gif"",""height"":""619"",""width"":""432""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-12-18-setting-strategies-with-swamicharts-by-j-f-ehlers-and-r-way-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-12-18-setting-strategies-with-swamicharts-by-j-f-ehlers-and-r-way-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov302enlo,d,"{""minimum-quantity"":""1"",""path"":""ch4a208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:4 (20-27): Engineered Look At Trends In Cycles by Arthur Zernov"",""caption-linebreaks"":""Engineered Look At Trends In Cycles by Arthur Zernov
It’s easier to gain from trending markets than choppy or cyclical market movements. But you can detect trends from a cyclical perspective.
Identifying trends in prices is nothing new; these days, technical analysts and traders develop various methods for detecting trends, trying to determine what is trending now and what may trend in the future. Behind such interest in trends is a desire for an easy profit, since it is much easier to gain from a trend than it is from choppy or cyclical market movements. There are many ways to detect trends, and in this article I will examine one such method: looking at a trend from a cyclical perspective.
WHAT IS A TREND?
The traditional definition of a trend is a directional movement of prices long enough to be identified and tradable. In Figure 1, you will see a graphical representation of a trend in the weekly chart of the Standard & Poor’s 500.
In my April 2011 Stocks & Commodities article, I stated that the mathematical methods used in electrical engineering to describe signal wave forms can be used for market price data analysis. From a cyclical perspective, a trend is a long cycle of a given period, whether known or unknown. The length of the cycle is relative to the cycle under review.
If you look at Figure 1, you will see the presence of a cycle when the price was trending. The cycle had a period of 14 weeks from September till December 2010. The entire trend from September 2010 till February 2011 can be considered to be part of a larger cycle; it looks as though the long cycle reached its peak in mid-May 2011.
USING MOVING AVERAGES
In addition to trendlines, moving averages are another common method with which to track trends, using various time periods and types. The weekly chart of the S&P 500 in Figure 2 shows a trendline and an 18-bar moving average. Note how the moving average closely tracks the trend.\nThe big question is how to select the correct period for the moving average. After all, not all periods are going to track the trends as closely. One way is to analyze historical data and select the period that works the best in various market conditions. The “best” does not mean the highest return, but rather the most stable one. You can then look at various parameters such as average profit factor and standard deviation.
After your analysis, the period you select for your moving average can give you secure results in many market situations. However, the moving average may underperform if the character of the market changes significantly; in fact, I am certain that the change will happen the moment I put my money on the table or when I don’t expect any change to occur. If you envision the market as a big casino, you should remember that we are the players, not the dealers. We have no input on the rules, but we can try to adapt to an ever-changing market."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-20-27-engineered-look-at-trends-in-cycles-by-arthur-zernov-20.gif"",""height"":""639"",""width"":""471""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-20-27-engineered-look-at-trends-in-cycles-by-arthur-zernov-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-20-27-engineered-look-at-trends-in-cycles-by-arthur-zernov-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov302cyin,d,"{""minimum-quantity"":""1"",""path"":""ch4a208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:4 (28-30): Cycles In The Dow Emini Futures by Alex Wasilewski"",""caption-linebreaks"":""Cycles In The Dow Emini Futures by Alex Wasilewski
In the world of trading, risk, and reward, cycles are natural — and so are the cycles of greed. How do you overcome these cycles or least prosper from them?
Most of us understand and even plan our lives on cycles that occur throughout our lives. Night and day, summer and winter are cycles that a child can understand. The concept can get a bit fuzzy, however, when you think about the cycles that affect each of us without our being aware of them. How about the mood swings we observe in others and others may point out in us? What about the ebb and flow of momentum that occurs during a sporting event?
Cycles have a natural flow to them. When you are amid a cycle, you are aware of what’s going on around you, but you know you can’t fight it; your best bet is to go with the flow. In the world of trading, this means not demanding perfection but recognizing that the risk and reward cycles are natural.
So are the cycles of fear and greed. If we want to prosper from panic, we need to understand the cycles of greed and fear and the time frames that traders must operate within.
THE CYCLICAL NATURE OF TRADING
This article will help you view the market volatility cycles a bit differently than what you may be used to. The more popular way to look at cycles has been to study the recent history of price movements, count the time between relative low points, average the time, and then predict the next turning point in the market. Every time I have attempted to trade this way, the market seemed to go out of phase. What has brought me more success is to see the market swings as cycles of traders’ fear and greed."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-28-30-cycles-in-the-dow-emini-futures-by-alex-wasilewski-20.gif"",""height"":""617"",""width"":""428""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-28-30-cycles-in-the-dow-emini-futures-by-alex-wasilewski-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-28-30-cycles-in-the-dow-emini-futures-by-alex-wasilewski-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov303enpa,d,"{""minimum-quantity"":""1"",""path"":""ch4a208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:4 (32-37): The Engulfing Pattern For Swing Traders by Omar Ait Hellal and Gerald Meyer"",""caption-linebreaks"":""The Engulfing Pattern For Swing Traders by Omar Ait Hellal and Gerald Meyer
This swing trading strategy can be applied to currency markets, common stocks, and exchange traded funds that track commodities and track indexes.
ost swing traders are in and out of their positions in one to five days. They tend to rely on common trading patterns. In particular, swing traders often look for certain simple candlestick patterns that are indicative of a reversal of the prevailing trend. Candlestick bars consist of a body and an upper and lower shadow. The body is determined by the open and close, and the color depicts the direction, usually green for a higher close and red for a lower close. It is a widely held belief that an engulfing candle is a reliable predictor of reversals. Is it? Let’s examine the engulfing pattern across markets over a period of 11 years to find out."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-32-37-the-engulfing-pattern-for-swing-traders-by-omar-ait-hellal-and-gerald-meyer-20.gif"",""height"":""624"",""width"":""453""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-32-37-the-engulfing-pattern-for-swing-traders-by-omar-ait-hellal-and-gerald-meyer-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-32-37-the-engulfing-pattern-for-swing-traders-by-omar-ait-hellal-and-gerald-meyer-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov303desl,d,"{""minimum-quantity"":""1"",""path"":""ch4a208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:4 (38-40): Defeating Slippage by Zoltan Csesnick"",""caption-linebreaks"":""Defeating Slippage by Zoltan Csesnick
Slippage is one of the biggest problems for traders to overcome. While there are no ways to defeat slippage completely, here are four ways to decrease it significantly.
For many traders, slippage is the single biggest problem. For those who are not trading reversal strategies where they can be easily filled with limit orders, slippage, which is also known as price deviation, can easily destroy a strategy.
It’s a trader’s catch-22: markets are designed in such a way that if we want a sure fill, we need to go with stop market/market orders. But if we place a stop market order, we will suffer a slippage. In other words, slippage is the difference between the filled price and the desired price, and it represents the narrow path on which traders must walk.
There is no way to completely eliminate slippage, but there are ways to decrease it significantly. Here are four ways to do so.
LIQUIDITY
The bid-ask spreads tend to be much lower for stocks with larger volume. I don’t think I am revealing a big secret by saying that trading large-cap stocks or at least stocks with an average volume of more than a million will provide you with much better fills. And there are enough of these stocks, not to mention other futures products and forex pairs/crosses. But I specialize in stocks, and my experience comes mainly from trading them, so that’s what I will stick to discussing here.
Before you trade a stock or include it in your portfolio, you should always watch the Level 2 quotes and observe the bid/ask for a while. If you trade moderate risk (few hundreds of stocks), it is easy to find well-performing stocks with relatively small volume and a tight bid-ask difference."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-38-40-defeating-slippage-by-zoltan-csesnick-20.gif"",""height"":""621"",""width"":""440""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-38-40-defeating-slippage-by-zoltan-csesnick-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-38-40-defeating-slippage-by-zoltan-csesnick-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov304qaby,d,"{""minimum-quantity"":""1"",""path"":""ch4a208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:4 (41): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
PREP FOR THE TRADING DAY
I enjoy your articles and hope you can help me. I am not a newbie trader, and I have been doing okay for the last three years. I have friends who tell me they spend more than two hours each morning before the market opens getting ready for the session. I daytrade some and swing trade some, and I spend time on research. Mostly I look at fundamentals and technicals, and seek breakouts and other anomalies. I rarely spend more than two hours per week at this. Is there something I’m missing? What do your traders spend their prep time doing? Any help would be appreciated. — evolution4
Thanks, and please keep reading Stocks & Commodities. I have to say that S&C is one of the longest-running, solid trading resources available. Yes, I’m a bit biased, but I respect what they do here."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-41-q-a-by-don-bright-20.gif"",""height"":""617"",""width"":""423""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-41-q-a-by-don-bright-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-41-q-a-by-don-bright-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov304inma,d,"{""minimum-quantity"":""1"",""path"":""ch4a208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:4 (42-48): Interview Market Kinematics With Stan Harley by Bruce Faber and Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview Market Kinematics With Stan Harley by Bruce Faber and Jayanthi Gopalakrishnan
Stan Harley’s career has spanned investment advisory services, defense/aerospace, and military service. A former naval aviator in various fighter aircraft, Harley attended the US Navy’s fighter weapons school better known as “Top Gun.” An investment advisor since 1991, he has developed mathematical algorithms for trend assessment, determination of cyclical functions, statistical analysis, regression modeling, and time-series forecasting. The chief investment officer for a Dallas, TX–based hedge fund, Harley provides support to institutional managers, individual investors, and traders, and since 1995 he has published The Harley Market Letter, which analyzes the stock market, bonds, precious metals, crude oil, housing, unemployment, and casino gaming, with a focus on the analysis of market kinematics, the study of market movements. Further information can be found at www.harleymarketletter.com.
Stocks & Commodities Jayanthi Gopalakrishnan and Staff Writer Bruce Faber spoke with Stan Harley via telephone on January 31, 2012.
Stan, how did you get interested in analyzing cycles?
My background is in engineering. I was also a naval aviator. My core areas of engineering focused on harmonic oscillations, solid materials, and fluid mechanics. I applied my expertise in solving complex engineering problems to the study of financial markets. When I started getting involved with the markets and looking at charts, I noticed that the oscillations were sometimes regular in their recurrences and sometimes not. I found it both baffling as well as a challenge, so I had to try to solve the puzzle. That is how I got into it.
What do you look for first when you try to identify these cycles?
I always thought there had to be some kind of mathematical approach to solving the cyclical business we see in the markets, so I look at a whole host of things. I look at a data series. I look at the ups and downs. I start by doing a visual inspection and a detailed statistical analysis. I do some extensive regression modeling and from that I extrapolate my time series forecasting of the recurring series. It is both simple and complex.
That said, too many people try to make the approach to market analysis overly simplistic. I think that starting out we should be aware that cycles are the essential algorithm in predicting how long a trend should run, when to expect reversals, and ultimately, how to exploit this information to make a profit. I think it is a top-down approach.
First, I look at a long-term chart and try to get as much data as I can. I try to identify the longest, dominant cycles and then work down to shorter and shorter time periods. I have found that almost all cycles have subcycles embedded within them, usually two or three, and I call these subcomponents “alpha,” “bravo,” and “charlie.” I keep a detailed database of cyclical functions that I have under study.
I think that cycles have their grounding in Fibonacci numerology. I have found that 99.9% of cycles can be derived from Fibonacci numbers. That doesn’t mean just the straight Fibonacci number itself, but some mathematical multiple or derivative of that number. I see these same recurring rhythms outside of the financial markets. I see them in such economic statistical databases as unemployment and I see them in commodities. I even see these cycles in the casino games. Actually, I have made a detailed study of the games.
How did you find these Fibonacci correlations? Was it just by observation and trial and error or something else?
First it was just by inspection, and then it was by doing statistical analysis. Then I would think there had to be some math that could define these things more accurately. So I went through thousands of attempts, trying to find formulas that would fit cyclical functions. I did this until I finally found an approach that seemed to work.
What compounded all of this is the fact that cycles are not always a fixed beat. For example, we can look at a price chart and we can see two, three, maybe four iterations of a fixed-beat cyclical function. Then it seems to disappear. That is not to say the cycle will evaporate altogether, but it may skip a beat or two, only to recur later on, or more often it will either expand or contract and then resume its regular beat, or it may just synthesize into a new cycle.\nCycles are not simple. It really is complex, but not so much that mortal man can’t figure it out."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-42-48-interview-market-kinematics-with-stan-harley-by-bruce-faber-and-jayanthi-gopalakrishnan-20.gif"",""height"":""632"",""width"":""484""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-42-48-interview-market-kinematics-with-stan-harley-by-bruce-faber-and-jayanthi-gopalakrishnan-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-42-48-interview-market-kinematics-with-stan-harley-by-bruce-faber-and-jayanthi-gopalakrishnan-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov304exyo1,d,"{""minimum-quantity"":""1"",""path"":""ch4a208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:4 (49): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
BUY MORE FOR LESS?
I recently bought calls that proceeded to go up in price despite implied volatility dropping fairly hard from the levels associated with my initial purchase. Not wanting to look a gift horse in the mouth, yet wanting to maintain some directional exposure but also unwilling to sell call premium that appeared too cheap to me, I sold two-thirds of my position and let the balance ride. Do you think this was the right adjustment to make?
Congrats on taking one course of action that, as the saying goes, allows you to have your cake and eat it too. As a rule, you can’t fault your adjustment if, when executed, you took what you considered to be an acceptable portion of your profits and were confident with the size of the remaining position whose premium remains vulnerable to opportunity costs.
In what is typical of this type of scaling out of a position, many traders will look to adjust and sell half of the contracts once a profit of 50% to 100% is reached. For instance, if you purchase 10 calls for $1.00 and can sell five for $1.50, the balance of the five contracts still held have an effective price of $0.50, while selling five for a 100% gain or $2.00 would allow for a free call position on the remaining contracts. That said, it looks as if your actions were motivated by this popular adjustment route."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-49-explore-your-options-by-tom-gentile-20.gif"",""height"":""619"",""width"":""421""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-49-explore-your-options-by-tom-gentile-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-49-explore-your-options-by-tom-gentile-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305wefo,d,"{""minimum-quantity"":""1"",""path"":""ch4a208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:4 (50-53): Websites For Traders: HurstTradingSignals.com by D. Pendergast"",""caption-linebreaks"":""Websites For Traders: HurstTradingSignals.com by D. Pendergast
HURSTTRADINGSIGNALS.COM
Hurst Trading Signals (HTS) is an online software application that attempts to identify and measure tradable price cycles according to the trading and market theories made famous by J.M. Hurst in the early 1970s. HTS identifies and evaluates numerous price cycles and generates actionable trading signals complete with entry, stop-loss, and profit target guidelines. HTS can be applied to a variety of futures and forex markets on six distinct time frames: 40-day cycle, 20-day cycle, five-day cycle, two-day cycle, one-day cycle, and five-hour cycle. The futures markets currently covered are the NQ, YM, and ES. The forex pairs currently covered are EUR/USD, EUR/GBP, GBP/USD, AUD/USD, USD/JPY, and EUR/JPY.
HTS subscribers can also elect to receive Twitter alerts whenever HTS identifies a prime trading setup in any of the markets and price cycles it covers.
THE BASICS
Since Hurst Trading Signals is an online software application, the only hardware that a trader needs to use it is a computer with a browser and an Internet connection; no datafeed subscription is required. Once logged into the website, you are taken to the “dashboard” (Figure 1) where all of the futures/forex instruments covered can be analyzed."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-50-53-websites-for-traders-hursttradingsignals-com-by-d-pendergast-20.gif"",""height"":""615"",""width"":""419""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-50-53-websites-for-traders-hursttradingsignals-com-by-d-pendergast-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-50-53-websites-for-traders-hursttradingsignals-com-by-d-pendergast-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305prre3,d,"{""minimum-quantity"":""1"",""path"":""ch4a208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:4 (58-59): Product Review: Harmonic Trader by Dennis D. Peterson"",""caption-linebreaks"":""Product Review: Harmonic Trader by Dennis D. Peterson
Harmonic Trader is a website that offers a number of technical tools that were created by Scott Carney. Besides being the author of three books, Carney is the architect of Harmonic Analyzer, a web-based application that will search for Gartley, butterfly, bat, and crab patterns. For some, these names may not ring any bells. The Gartley pattern is sometimes referred to as the “222” pattern because it is discussed on page 222 of H.M. Gartley’s book, Profits In The Stock Market.
As a bit of review, Gartley patterns can be either bullish or bearish. They consist of four legs or segments of price movements (Figure 1). There is a convention for naming the starting and ending points, with X being the start and A, B, C, and D being the next four.
Carney focuses on specific Fibonacci ratios to define the geometry of Gartley patterns. His approach to validating the pattern is using specific values of Fibonacci numbers (Figure 2). The beauty of Carney’s web package is that it will search for the patterns.
An additional feature is that Harmonic Analyzer (HA) software uses free Yahoo Finance! data for daily data. For intraday data, HA interfaces with eSignal. For the Gartley pattern especially, Carney has found that most profitable trades come from having AB=CD — that is, the price change defined by points A and B equaling the price change between points C and D.
Point D is a potential turning point, but all you can do is estimate a range as to where price might turn. Carney refers to this as the potential reversal zone (PRZ). The Harmonic Analyzer projects price points where price might turn. Carney has some insights as to what works best for Gartley versus bat versus butterfly. For example, for Gartley, the PRZ you will typically see is point D, as given by AB=CD, 0.786XA, and 1.414BC. I say “typically,” because there are alternatives."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-58-59-product-review-harmonic-trader-by-dennis-d-peterson-20.gif"",""height"":""624"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-58-59-product-review-harmonic-trader-by-dennis-d-peterson-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-58-59-product-review-harmonic-trader-by-dennis-d-peterson-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov306fufo1,d,"{""minimum-quantity"":""1"",""path"":""ch4a208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:4 (60): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
TECHNOLOGY AND TRADING
Technological advances seem to have improved the trading environment tremendously in recent years. What are your thoughts?
Unfortunately, an improved trading environment hasn’t necessarily translated into more successful traders. Too many beginning traders fail to prepare for the challenges they will face before jumping into the speculative pool. Technological advances in the arena have created an environment in which it is all too easy for novice traders to fall victim to the idea that successful trading is as simple as buying the right software and subscribing to a datafeed.
Dramatic improvements in information flow and convenient charting tools have failed to improve the odds of success, however. Even after these trading environment improvements, roughly 70% to 80% of traders lose money in the markets; for those in their first year or two, the odds are probably much worse."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-60-futures-for-you-by-carley-garner-20.gif"",""height"":""608"",""width"":""422""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-60-futures-for-you-by-carley-garner-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-60-futures-for-you-by-carley-garner-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov306quco,d,"{""minimum-quantity"":""1"",""path"":""ch4a208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:4 (64): QuickScan: Commodity Trader's Almanac by Barbar Star"",""caption-linebreaks"":""QuickScan: Commodity Trader's Almanac by Barbara Star
Both experienced and beginning traders looking for seasonal trading opportunities will find the 2012 edition of the Commodity Trader’s Almanac published by John Wiley & Sons a welcome resource. Entering its sixth year of publication, coauthors Jeffrey Hirsch and John Person take this book beyond the realm of commodity trading. Even though it spotlights commodities, the Almanac links the underlying commodity to its closely related stock, index, currency, or sector counterpart. This unique perspective makes the Commodity Trader’s Almanac equally valuable to stock, exchange traded fund (ETF), and forex traders.
The Almanac is hard-bound for durability but with an inner spiral binding that allows it to lie flat for a hands-free view of both pages. The book contains two major divisions. The first is a calendar section with its focus on the seasonal trade selections, while the second portion is given over to a historical databank and a directory of seasonal trading patterns.
The calendar section is formatted so that the page on the left provides analysis of the featured commodities. The page on the right displays a weekly calendar with reminders about entry and exit dates for seasonals soon to be, or already, in play, first notice day, last trading day, and option expirations, plus quotations from traders and others."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-64-quickscan-commodity-trader-s-almanac-by-barbar-star-22.gif"",""height"":""611"",""width"":""420""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-64-quickscan-commodity-trader-s-almanac-by-barbar-star-26.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-64-quickscan-commodity-trader-s-almanac-by-barbar-star-27.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov306trti3,d,"{""minimum-quantity"":""1"",""path"":""ch4a208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:4 (66-71): Traders' Tips by Technical Analytical, Inc."",""caption-linebreaks"":""Traders' Tips by Technical Analytical, Inc.
For this month’s Traders’ Tips, the focus is John Ehlers & Ric Way’s article in this issue, “Strategies With SwamiCharts.”
Source code for Swami Charts renditions of several classic technical indicators (Aroon, CCI, RSI, and stochastics) for TradeStation and NinjaTrader may be downloaded for free from SwamiCharts.com. Thinkorswim users will find SwamiCharts indicators available on the thinkorswim platform.
In addition, some EasyLanguage code for TradeStation is provided in Ehlers & Way’s article elsewhere in this issue. (Subscribers will also find the same code at the Subscriber Area of our website, Traders.com.) Presented here is additional code and possible implementations for other software.
Traders’ Tips are provided to help the reader implement a selected technique from an article in this issue. The entries are contributed by various software developers or programmers for software that is capable of customization.
Readers will find all the code listings that accompany the following Traders’ Tips at our website, Traders.com, in the Traders’ Tips area. Provided here is some discussion of the technique’s implementation by the Traders’ Tips contributors as well as some example charts.
To locate Traders’ Tips at our website, click on the Traders’ Tips link from our home page."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-66-71-traders-tips-by-technical-analytical-inc-20.gif"",""height"":""617"",""width"":""426""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-66-71-traders-tips-by-technical-analytical-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-66-71-traders-tips-by-technical-analytical-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov307bofo3,d,"{""minimum-quantity"":""1"",""path"":""ch4a208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:4 (77): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-77-books-for-traders-by-technical-analysis-inc-20.gif"",""height"":""604"",""width"":""407""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-77-books-for-traders-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-77-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov307patr,d,"{""minimum-quantity"":""1"",""path"":""ch4a208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:4 (78-82): Pair Trading With Spreadsheets by Ron McEwan"",""caption-linebreaks"":""AT THE CLOSE
Pair Trading With Spreadsheets by Ron McEwan
Build a spreadsheet to aid in revealing profitable opportunities in pair trades.
Pair trading is classified as a market neutral\nstrategy where you are not concerned with\nmarket direction, whether up or down. Instead,\nthe idea is to exploit temporary price discrepancies\nin two (or more) securities by simultaneously\ngoing long the outperforming security and going\nshort the underperforming one.
An important concept in pair trading is in\nselecting securities that have a spread with a\n“mean reverting” (comovement) characteristic.\nCorrelation of the two securities was\noften used as a measure to find similarity\nin the movement of two or more securities.\nCorrelation is not always indicative of mean\nreversion. Cointegration is a more accepted\nmethod for detecting mean reversion — that\nis, comovement — of the spread in securities.
Other than knowing that cointegration is a way to measure comovement\nor mean reversion, it is not necessary to go into detail about it\nhere. There are commercial software packages and web services that\nwill perform cointegration analysis on a pair of stocks. In addition,\nthere are free scripts for Matlab and “R,” the free language and environment\nfor statistical computing and graphics, that will perform the\ncointegration calculations.
For this article I have constructed an Excel spreadsheet to aid in\nidentifying the spread in a pair of stocks that have a mean reversion\ncharacteristic that can be traded profitably."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-78-82-pair-trading-with-spreadsheets-by-ron-mcewan-20.gif"",""height"":""621"",""width"":""438""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-78-82-pair-trading-with-spreadsheets-by-ron-mcewan-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-78-82-pair-trading-with-spreadsheets-by-ron-mcewan-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov308leto1,d,"{""minimum-quantity"":""1"",""path"":""ch4a208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:4 (8-10): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
BACKTESTING WITH OUT-OF-SAMPLE DATA
Editor,
I have been developing an intermediate-term stock trading model, which captures weekly closes of stock prices (approximately 550) and major indexes from 12/31/1999 to 1/27/2012. My model has been optimized and backtested for the in-sample data from 12/31/1999 to 06/25/2010 with excellent results. The data from 6/25/2010 to 1/27/2012 has been forward-tested (out of sample) and has a return of 32.05% compared to a 24.81% return of the Dow Jones Industrial Average (dividends not included).
In order to determine the feasibility of my model and also to enhance my confidence in it, I would like to know: If I downloaded several additional stocks to my database from 2000 to present and run them against my rules, would the additional data be considered out-of-sample data?
Dominick Paoloni\nRoselle, NJ
Looking at the definitions of in-sample and out-of-sample testing may help you determine whether testing on additional data would qualify as out-of-sample. When you run a system on the same historical data set that was used to develop the system, it is considered in-sample data. Out-of-sample testing is when you run the same system on data that it has not encountered before in the same market and time frame.\n—Editor"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-8-10-letters-to-s-c-by-technical-analysis-inc-20.gif"",""height"":""616"",""width"":""423""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-8-10-letters-to-s-c-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-4-8-10-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov301sezo,d,"{""minimum-quantity"":""1"",""path"":""ch5m208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:5 (12-17): Sentiment Zone Oscillator by Walid Khalil, MFTA, CFTe"",""caption-linebreaks"":""Sentiment Zone Oscillator by Walid Khalil, MFTA, CFTe
Here’s an indicator that measures extreme bullishness and bearishness and helps you identify a change in sentiment.
\nAfter developing the volume zone oscillator (VZO) and price zone oscillator (PZO), I found there were sides of the market not covered by those two oscillators — namely, time and sentiment. Sometimes, the market could reverse from a point with attractive price and volume indicators, but by then the sentiment could be be too high for the move to continue.
The psychology of that extreme sentiment point is best described in John Murphy’s Technical Analysis Of The Financial Markets, where he states that the more bullish the forecast, the more aggressively the trader will approach the market.
SENTIMENT ZONE OSCILLATOR
The sentiment zone oscillator (SZO) is a leading contrary oscillator that measures the extreme emotions of a single market or share. It measures and defines both extremes, bullishness (overoptimism) and bearishness (overpessimism), that could lead to a change in sentiment, eventually changing the trend of the time frame under study.
The SZO was devised on the belief that after several waves of rising prices, investors begin to get bullish on the stock with increasing confidence since the price has been rising for some time. The SZO measures that bullishness/bearishness and marks overbought/oversold levels.
CALCULATING IT
The SZO formula is based on the number of rising days to declining ones. It only uses the closing price as a separation rule.
To include both time and sentiment, a value of +1 is stored for each higher close above the previous period closes. Otherwise, a value of ‑1 is stored. With that calculation method, the time is covered and categorized bullish or bearish. In addition, a positive or a negative value serves the sentiment condition.
For smoothing purposes, a triple exponential moving average (TEMA) of those plus and minus values is divided by the total number of days of the period being studied:
Sentiment zone oscillator = 100 * (SP ÷ Range)
where:
SP (sentiment position) = X-days TEMA (number of up days minus number of down days)\nRange = Period being studied
The AmiBroker and MetaStock formulas for calculating the SZO are shown in the sidebar “Calculating SZO.”"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-12-17-sentiment-zone-oscillator-by-walid-khalil-mfta-cfte-20.gif"",""height"":""628"",""width"":""471""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-12-17-sentiment-zone-oscillator-by-walid-khalil-mfta-cfte-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-12-17-sentiment-zone-oscillator-by-walid-khalil-mfta-cfte-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov301fren,d,"{""minimum-quantity"":""1"",""path"":""ch5m208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:5 (18-24): Fractal Energies by Doc Severson"",""caption-linebreaks"":""Fractal Energies by Doc Severson
Learning how to read the swings within the swings and understanding how much energy is available in these time frames are keys to survival in today’s markets. Here’s how you can apply an obscure indicator and plain, old-fashioned price action to anticipate market movements.
DO technical indicators work any more? When was the last time you saw a stochastic or moving average convergence/divergence (MACD) crossover lead to a good entry? When was the last time a relative strength index (RSI)(14) signal below 30 led to a great buy signal, or a rise above 70 led to a solid sell signal? Most of the time we see oscillators saturate on long bull runs, as what becomes overbought can remain overbought, and during choppy price action, we’ll see longer-term RSI just stay between the 30 and 70 levels for months at a time. The signals that were sold at educational seminars five to 10 years ago simply don’t provide any edge in today’s market.
TAKING IT A NOTCH HIGHER
So the next level of sophistication that a typical retail trader learns is to anticipate leading signals on oscillators or MACD histograms by reading divergences. A higher high in price with a corresponding lower high in the indicator can often be a signal that momentum is tiring and a reversal is imminent. And there was some truth to that a few years ago in the choppier, low-volatility markets that we saw in 2004–07.
Since then, however, the unique characteristic about how markets operate today is that we’re seeing more extended swings that seem to have no end. In markets that show long swings, each restoring pullback will automatically generate a lower high on the indicator and give you a false reading that a reversal is around the corner.
As I was told a few years ago, markets tend to run in one direction for as long as they can — usually farther than everyone expects — before sentiment shifts too far. Then the market reverses and goes as far as possible in the opposite direction, again going farther than anyone expects.
If we can’t identify major turning points through standard oscillator or momentum indicators, nor through our advanced read on divergences, how can we gain an edge? Perhaps it’s time to explain how physics apply to the forces behind the market."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-18-24-fractal-energies-by-doc-severson-20.gif"",""height"":""624"",""width"":""452""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-18-24-fractal-energies-by-doc-severson-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-18-24-fractal-energies-by-doc-severson-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov302exyo,d,"{""minimum-quantity"":""1"",""path"":""ch5m208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:5 (26): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
DOUBLE DOWN OR UP?
If a trader is long stock that goes against him and he’s unwilling to sell, are there any option strategies to recoup those paper losses without laying out more capital?
Hypothetically, anything is possible. But it’s also true when a trader opens up his portfolio to options, there are more opportunities to produce a larger profit or reclaim open losses faster. For a longer-term investor intent on holding shares despite an existing loss, one such strategy is called a double long position.
In an unprofitable long stock scenario, a double long consists of executing a ratio front spread as close to free or a credit as possible. That’s easier done than said. The front spread looks to purchase a lower strike call, typically at-the-money call, while selling higher strike calls of the same contract month. The most popular ratio is 1 x (2). Without stock ownership, this strategy is net short calls above the higher strike, but that’s not necessarily a bad situation to be in, at first at least, as the maximum profit is also at the strike. The breakeven on a 1 x (2) is this profit added to the shorted strike call."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-26-explore-your-options-by-tom-gentile-20.gif"",""height"":""616"",""width"":""423""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-26-explore-your-options-by-tom-gentile-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-26-explore-your-options-by-tom-gentile-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov302flfo,d,"{""minimum-quantity"":""1"",""path"":""ch5m208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:5 (28-32): Flexible Forex Strategies by Gary Ender"",""caption-linebreaks"":""Flexible Forex Strategies by Gary Ender
Forex traders need a successful strategy made up of components that allows them to be flexible and effective in changing market conditions. Here’s one way to find it.
Trading the financial markets is similar to a great round of golf; the players who use the best techniques and work hard to refine their skills come out on top. Golfers need to be able to play in all conditions, hit shots from different distances, maneuver in any situation, and use all the clubs in their bags. They accomplish this by testing different strategies and swing changes, and getting lots of practice.
The same goes for forex trading. You need a strategy made up of components that allow you to be flexible and remain effective despite constantly changing market conditions. Your approach needs to be tested so you have the confidence to minimize your emotions. In my opinion as a golfer and a trader, the backbone of any successful strategy is learning to use the proper tools of the trade.
THE TOOLS
I began trading in the currency markets to provide opportunities for when the stock market is consolidating or not providing good-quality trades. The high-odds swing trades in the forex market come in cycles, and therefore, it provides an alternate vehicle for a serious trader. It also gives insight into the stock, futures, and commodities markets.
I prefer to swing trade, but like many, I will daytrade if that is all the market has available. So in an effort to keep things relatively simple, at that point I was searching for indicators with the same flexible qualities as candlesticks. I was looking for just one trading plan that would be effective in different markets and time frames. I found it in forex and candlesticks.
CANDLESTICKS
I have been using candlesticks for more than a decade, and I combine candlestick strategies with a group of classic technical indicators such as moving averages, Bollinger Bands, and stochastics. When I selected these indicators, my goal was to have a trading plan that would be effective with many markets and in any time frame.
Candlestick reversal patterns generate support and resistance points that can be used in several ways. The support and resistance formed by the candlestick patterns are the same in every time frame, ranging from a 15-minute chart to a monthly one. Even by using one-minute or tick charts, you can add your favorite Western-style indicators. This is just one reason to have candlestick charting as a part of your strategy.
Using candlestick charting tactics has advantages over other chart types in that they are easy to learn and easy to use.
"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-28-32-flexible-forex-strategies-by-gary-ender-20.gif"",""height"":""634"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-28-32-flexible-forex-strategies-by-gary-ender-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-28-32-flexible-forex-strategies-by-gary-ender-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov303moda,d,"{""minimum-quantity"":""1"",""path"":""ch5m208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:5 (34-38): The Most Dangerous Game by Gareth Burgess"",""caption-linebreaks"":""The Most Dangerous Game by Gareth Burgess
In the high-risk trading world, we are confronted with fear, greed, and hope. Understanding why may help us embrace some of our emotional shortcomings and incorporate them into our trading.
The desire to make money is what attracts people to the financial markets, and even if you have found a method or plan that works for you, your emotions could get the better of you. To fight against such an occurrence, we must train to combat every type of situation that the trading life throws at us. Learning about the financial markets, making a plan, and then preparing for it is a must for every trader and investor.
ANALYZING CHARTS
Chart observation tells us that price action moves up and down. This analysis, however, becomes counterproductive once a trade has actually been initiated. If you are losing money on the trade, you must decide when to exit, but often that decision is not taken and the loss continues to grow. All too often, the losses end up big and the profits small.
To understand the problems that many traders face, especially during their first months of trading, you must define the time range of each trade. A trade based on a daily chart signal that is meant to run over a period of weeks, if not months, has a different profile from one placed on a 15-minute chart with the intention of running for minutes or hours. This becomes clear from Figures 1 and 2."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-34-38-the-most-dangerous-game-by-gareth-burgess-20.gif"",""height"":""620"",""width"":""434""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-34-38-the-most-dangerous-game-by-gareth-burgess-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-34-38-the-most-dangerous-game-by-gareth-burgess-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov303fufo,d,"{""minimum-quantity"":""1"",""path"":""ch5m208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:5 (39): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
STAYING COOL
How can traders improve their ability to manage emotions and stay calm under pressure?\nThe most influential factor in trader success or failure is the ability to manage emotions. The inability to keep fear and greed in check can lead to financial and psychological devastation. After all, speculation is not a 9-to-5 venture in which traders are paid to show up for work. It is performance based; the capacity to produce income is contingent on the ability to function efficiently and behave logically.
Emotional traders are more likely to make poor decisions driven by revenge rather than analysis. Such a mindset can lead to overzealous trading, excessive risk taking, and a disregard for the intended strategy.
Unfortunately, the ability to stay calm in both good and bad times is difficult to learn. Those who have mastered the art were probably born with a chunk of their proficiency, with the rest earned through experience."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-39-futures-for-you-by-carley-garner-20.gif"",""height"":""618"",""width"":""423""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-39-futures-for-you-by-carley-garner-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-39-futures-for-you-by-carley-garner-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov304rive,d,"{""minimum-quantity"":""1"",""path"":""ch5m208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:5 (40-43): Riding The Velocity Express by Martha Stokes, CMT"",""caption-linebreaks"":""Riding The Velocity Express by Martha Stokes, CMT
Understanding the difference between momentum, velocity, and volatility in price and volume patterns will improve trading results for swing traders. Here’s an in-depth look.
nalyzing price action starts with an examination of the market condition. There are six primary market conditions in today’s stock market. Within each of these market conditions are various trading conditions. Swing traders must be aware of the trading conditions so they can find stocks to trade that are going to move with momentum of velocity action or avoid volatility action. Let’s look at the difference among momentum, velocity, and volatility price actions.
MOMETUM
Momentum is the price action that most swing traders use. A momentum run is an abrupt move up with inconsistent energy and frequent resting day candles and/or consolidations within the run. A resting day candle is a candle that forms at or near the high of the previous day and is a continuation candle pattern indicating continued upward or downward action. Momentum moves can last longer than a velocity run because the angle of ascent is mitigated by the resting or brief consolidations that form during the duration of the run.
To trade a momentum run successfully, swing traders need to understand the price to volume relationships that form during a momentum run (Figure 1).
Momentum runs occur during moderately trending and trading range market conditions. They are characterized by inconsistent volume patterns and frequent pauses in price movement, which create the resting day or brief consolidation patterns within the run.
This kind of price action requires a different placement of stop-losses and profit stops to avoid being taken out of the trade too early. These runs can last for a few days to more than a week. Stops need to be checked each day and moved up to protect profits but not as tightly as a velocity run due to the resting day and overlapping candle patterns. Volume will move inconsistently and resting days will have lower volume patterns."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-40-43-riding-the-velocity-express-by-martha-stokes-cmt-20.gif"",""height"":""620"",""width"":""438""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-40-43-riding-the-velocity-express-by-martha-stokes-cmt-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-40-43-riding-the-velocity-express-by-martha-stokes-cmt-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov304inse,d,"{""minimum-quantity"":""1"",""path"":""ch5m208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:5 (44-49): Interview: Seasonality With Sy Harding by Jayanthi Gopalakrishnan and Bruce Faber"",""caption-linebreaks"":""Interview: Seasonality With Sy Harding by Jayanthi Gopalakrishnan and Bruce Faber
Sy Harding publishes the financial website Street Smart Report Online and a morning blog three times a week at www.StreetSmartPost.com. In 1999 he published the book Riding The Bear: How To Prosper In The Coming Bear Market, in which he correctly predicted the worst bear market since the 1930s was right around the corner. The 2000–02 bear market, in which the Standard & Poor’s 500 lost 50% of its value and the NASDAQ lost 78%, began just a few months later. His latest book is Beat The Market The Easy Way: Surprising Seasonal Strategies That Double The Market’s Performance.
Stocks & Commodities Editor Jayanthi Gopalakrishnan and Staff Writer Bruce Faber posed a series of questions to Harding, which he answered via email on March 8, 2012.
SY when did you get interested in the markets?
That would have been in the 1980s. Up to that point my career had been as an entrepreneur, launching and building a couple of successful high-tech manufacturing companies. During that period when the businesses required my attention, my investments were handled by stockbrokers and money managers. Their performance was disappointing. When my last manufacturing company was acquired by an NYSE firm in 1985, I began managing my investments myself.
With my engineering background it was probably inevitable my approach would involve technical charting and analysis. In August 1987, against the advice of the experts, I moved half of my portfolio to cash. In early October, with the Dow Jones Industrial Average (DJIA) down 12% since August and my charts deteriorating even more quickly, I moved 100% to cash, just a few days before the brutal 1987 crash.
When I read that virtually no one had called the crash, I knew something was missing in available information. So in 1988 I founded Asset Management Research Corp. and began publishing my research and market recommendations. I was almost immediately in Timer Digest’s top 10 timers rankings; I was the no. 2 stock market timer in 1990, the no. 2 long-term timer in 1991, and the no. 1 gold timer in 1991. I have been in the top 10 for rankings almost every year for the last 25 years.
Your work is mostly based on seasonal strategies. How did you discover these patterns in the markets?
In 1998 I was again very concerned about my charts and what appeared to be a bubble forming in the stock market. So I wrote a book, Riding The Bear: How To Prosper In The Coming Bear Market, predicting that the most severe bear market since the 1929 crash was right around the corner. The book only sold 20,000 copies. Understandably, no one wanted to believe anything negative at that point. In contrast, the best-selling investment book in 1999 was James Glassman’s Dow 36,000. The severe 2000–02 bear market began a few months later.
In my research for a simple strategy that would allow investors to participate in the 1990s bull market but also prosper in the coming bear market, the market’s seasonality seemed to have significant potential. Further work confirmed that and resulted in the development of my seasonal timing strategy (STS).
I introduced the strategy in my book and as a second strategy and portfolio in my newsletter, while also continuing my original strategy of market timing via technical charting and analysis."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-44-49-interview-seasonality-with-sy-harding-by-jayanthi-gopalakrishnan-and-bruce-faber-20.gif"",""height"":""632"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-44-49-interview-seasonality-with-sy-harding-by-jayanthi-gopalakrishnan-and-bruce-faber-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-44-49-interview-seasonality-with-sy-harding-by-jayanthi-gopalakrishnan-and-bruce-faber-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305prre4,d,"{""minimum-quantity"":""1"",""path"":""ch5m208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:5 (50-52): Product Review: eSignal 11 by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Product Review: eSignal 11 by Jayanthi Gopalakrishnan
\nIN a recent guest appearance on CNBC, author and analyst Nassim Taleb mentioned that a robust system is one that sustains shocks and improves after each one. Of course, he was referring to the banking and financial system of nations, but we could easily apply this concept to creating our own trading systems.
ESIGNAL FORMULA SCRIPT
The challenge, of course, lies in creating such a system, but just because it is challenging does not mean it is not possible. Almost all technical analysis software gives you the option of creating your own customized trading systems. eSignal offers their customers their eSignal Formula Script (EFS), which is a simple formula language that uses JavaScript. In this, the second part of this review series, I will cover the EFS feature of eSignal along with the trade integration feature.
Not much has changed with regarding how you write the code for a trading system. You open the Script Editor, enter your code, and save it. After that, it is just a matter of inserting that study onto your charts. In Figure 1, you see John Ehlers’s SwamiCharts stochastic inserted into the chart.
There are a few new features that have been added to the EFS feature set. For example, in previous versions if you wanted to change things like the colors on a chart or the appearance of a line, you would have to go into the EFS code and make changes to it. In this new version, all you do is double-click on the indicator in the chart and change the options on the Edit Chart window (Figure 2)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-50-52-product-review-esignal-11-by-jayanthi-gopalakrishnan-20.gif"",""height"":""636"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-50-52-product-review-esignal-11-by-jayanthi-gopalakrishnan-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-50-52-product-review-esignal-11-by-jayanthi-gopalakrishnan-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305qaby1,d,"{""minimum-quantity"":""1"",""path"":""ch5m208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:5 (53): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
DETERMINING LARGER NUMBERS
Maybe you can help me understand something about share volumes. I hear the volume levels are around three to four billion shares on a daily basis. How is this calculated? Do they count a buy and a sell as two separate transactions? The New York Stock Exchange only trades about a half billion, according to my platform. How do they determine these larger numbers? I can understand adding NASDAQ, but is there a way to show the total shares each day? — techtrdr39
Good question, and I had to check a couple of sources to get a reasonable response. First off, a buy and a sell make a single transaction. Historically, the NASDAQ used each side as a trade, but it hasn’t for a long time. You can start by going to www.nyxdata.com/Data-Products/National-Market-VolumeSummary. It will show volume by listed stock and the various market centers.
You can then go to http://nasdaqtrader.com/ to see what they call “tape A,” “tape B,” and “tape C” volumes by the various NASDAQ-run exchanges (Boston, PSX, and PHLX). You’ll find a large gap between the total market volume and the cumulative total of each of these market centers. The best I could do was merge these sites and make the assumption that the balance was traded on electronic communication networks (ECNs) as market centers, such as BATS, EDGE, and so on. The “dark pools” would have to make up the difference, although they, too, are reported to a market center for clearance."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-53-q-a-by-don-bright-20.gif"",""height"":""617"",""width"":""423""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-53-q-a-by-don-bright-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-53-q-a-by-don-bright-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov30581pr1,d,"{""minimum-quantity"":""1"",""path"":""faarfr204"",""ysw-page-title"":""Stocks & Commodities V. 30:5 (54-58, 81): Product Review: ThinkorSwim.com by Dennis D. Peterson"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-54-58-81-product-review-thinkorswim-com-by-dennis-d-peterson-27.gif"",""height"":""180"",""width"":""138""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-54-58-81-product-review-thinkorswim-com-by-dennis-d-peterson-28.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-54-58-81-product-review-thinkorswim-com-by-dennis-d-peterson-29.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov30581pr,d,"{""minimum-quantity"":""1"",""path"":""ch5m208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:5 (54-58, 81): Product Review: ThinkorSwim.com by Dennis D. Peterson"",""caption-linebreaks"":""Product Review: ThinkorSwim.com by Dennis D. Peterson
Thinkorswim (TOS) by TD Ameritrade is software you can use with a number of different devices such as an iPhone, BlackBerry, Android, PC, touch iPod, or Apple Macintosh to trade stocks, stock options, futures, currency, spread orders, or future options. It has a number of order types, such as trailing stops, OCO (one cancels other), and one triggers all. It covers a broad spectrum of trading activities. It is free if you can live with delayed quotes; you can go to thinkorswim.com, fill out a brief registration form, and download the software for a trial, which is good for 60 days, or you can open a TD Ameritrade brokerage account (with no funds) with delayed quotes, and you can paper trade indefinitely. Such a deal!
I reviewed this product using a paper trading account, so some features were not available such as Level II quotes, although if you put up a price chart, it will show the current inside bid and ask. Thinkorswim is loaded with features, and some of the navigation techniques are unique to TOS such as the colored dots to the left of the titles, or entry windows respond to a left-click, resulting in a dropdown list. To set the background color, there are three choices: metal, white, black. You need to select “Configure” at the bottom of the log-in screen. At the log-in, you might get a warning message that a 1024x768 resolution is recommended, but you can get by with 800x600. For the tutorials, however, I recommend a 24-inch screen."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-54-58-81-product-review-thinkorswim-com-by-dennis-d-peterson-23.gif"",""height"":""633"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-54-58-81-product-review-thinkorswim-com-by-dennis-d-peterson-30.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-54-58-81-product-review-thinkorswim-com-by-dennis-d-peterson-31.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305qusc,d,"{""minimum-quantity"":""1"",""path"":""ch5m208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:5 (59-61): Quick Scan: VectorVest 7 by Barbara Star, PhD"",""caption-linebreaks"":""Quick Scan: VectorVest 7 by Barbara Star, PhD
The July 2009 issue of Stocks & Commodities featured a review of the VectorVest RealTime program. Now, with the release of VectorVest 7, the same user-friendly platform is available for end-of-day and intraday subscribers as well as real-time users. While the 2009 review offered an in-depth look at the major features within VectorVest, this Quick-Scan focuses on some of the new features that subscribers will find in VectorVest 7.
Foremost among the changes from VectorVest 6 is a customizable home page that identifies market timing, top-ranked stocks, industry groups, and sectors plus easy access to news, charts, watchlists, and search strategies (see Figure 1).
TIMING
Because the movement of individual stocks is often heavily influenced by the direction of the broad market indexes, market timing plays a prominent role in the VectorVest program. The software uses a color guard to reflect directional changes of current price movement and also the underlying market trend as identified by a market timing indicator (MTI).
In addition to the more aggressive, shorter-term primary wave system and the more conservative confirmed market calls that were found in the earlier versions, two new market timing systems have been added to this version of VectorVest. The DEW system, seen in Figure 2, provides intermediate market timing using technical analysis to identify entry and exit points.
The green light system is specifically for those traders who wish to increase their portfolio gradually by adding just one stock at a time during a favorable market period."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-59-61-quick-scan-vectorvest-7-by-barbara-star-phd-20.gif"",""height"":""622"",""width"":""441""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-59-61-quick-scan-vectorvest-7-by-barbara-star-phd-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-59-61-quick-scan-vectorvest-7-by-barbara-star-phd-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov306trti4,d,"{""minimum-quantity"":""1"",""path"":""ch5m208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:5 (62-71): Traders' Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders' Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Walid Khalil’s article in this issue, “Sentiment Zone Oscillator.”
Several code listings for AmiBroker and one for MetaStock are already provided in Khalil’s article in this issue, and subscribers will find that code in the Subscriber Area of our website, Traders.com. (Click on “Article Code” from our homepage.) Presented here is additional code and possible implementations for other software.
Traders’ Tips are provided to help the reader implement a selected technique from an article in this issue. The entries are contributed by various software developers or programmers for software that is capable of customization.
Readers will find all the code listings that accompany the following Traders’ Tips at our website, Traders.com, in the Traders’ Tips area. Provided here is some discussion of the technique’s implementation by the Traders’ Tips contributors as well as some example charts.
To locate Traders’ Tips at our website, click on the Traders’ Tips link from our home page."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-62-71-traders-tips-by-technical-analysis-inc-20.gif"",""height"":""617"",""width"":""426""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-62-71-traders-tips-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-62-71-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov307bofo4,d,"{""minimum-quantity"":""1"",""path"":""ch5m208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:5 (77): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
- Behavioral Investment Management: An Efficient Alternative To Modern Portfolio Theory
- Confessions Of A Wall Street Whiz Kid
- The Essentials Of Financial Analysis
- Fusion Analysis
- Joyce, Queen Of The Mountain
- Profit With The Market Profile: Identifying Market Value In Real Time"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-77-books-for-traders-by-technical-analysis-inc-20.gif"",""height"":""612"",""width"":""412""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-77-books-for-traders-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-77-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov308leto2,d,"{""minimum-quantity"":""1"",""path"":""ch5m208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:5 (8-10) Letters To S&C by Technical Analysis Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis Inc.
TECHNICAL & FUNDAMENTAL FILTERS
Editor,
I read Mike Carr & Amber Hestla’s March 2012 article in S&C, “Find The Biggest Winners,” which has the premise that studying the winners of the past 10 years can give you an idea of possible winners for the next five. Based on the article, just to clarify, should I be filtering on the following data points?
1. Market cap less than 300 million
2. Closing prices increasing during the last 12, 24, 36 and 40 months
3. Positive earnings for the past four years
4. 48-month moving average.
FRANK HOPKINS
Author Mike Carr replies:
There are a number of ways to screen for microcap stocks with strong potential for the long term. The market cap cutoff of $300 million could be raised or lowered to expand or limit the number of buy candidates. Positive earnings are a common factor in big winners from the past — investors want to see results in addition to potential.
A technical screen, such as MACD giving a buy signal, is helpful. That captures stocks moving higher, instead of buying value stocks that are declining toward possible problems. A long-term moving average filter serves the same purpose. It is important to find stocks that others are buying to avoid holding dead money in your investment account.
The requirement for higher prices in the various periods that you mention could serve this purpose."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-8-10-letters-to-s-c-by-technical-analysis-inc-20.gif"",""height"":""612"",""width"":""423""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-8-10-letters-to-s-c-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-8-10-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov30880at2,d,"{""minimum-quantity"":""1"",""path"":""ch5m208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:5 (82, 80-81): At The Close: Pair Trading And Chart Construction by Ronald McEwan"",""caption-linebreaks"":""At The Close: Pair Trading And Chart Construction by Ronald McEwan
Pair Trading And Chart Construction
In this, the second part of this series, find out how to construct a spreadsheet to help reveal profitable opportunities in pair trades.
IN the first part of this series, I explained that pair trading is classified as a market-neutral strategy, where you are not concerned with market direction, up or down. The idea, I asserted, is to exploit temporary price discrepancies in two (or more) securities by simultaneously going long the outperforming security and going short the underperforming security. I looked at how to enter stock data and the formulas to calculate returns, cumulative returns, regression residuals, and the formulas to transform the calculations for use as chart inputs.\nThis time, we will complete the Excel spreadsheet for identifying the mean reversion (comovement) characteristic of a spread in a pair of stocks. Here’s how:
Step 1
Plot cumulative return residuals. The first chart to create is an XY scatter chart of the residual data in columns K and M. Figure 1 displays the spreadsheet, but please refer to my previous article for a detailed description of how to create this spreadsheet. Enter these ranges in an XY scatterplot B:
X values =Sheet1!$K$10:$K$118\nY values =Sheet1!$M$10:$M$118
You will need to add a trendline to the residual data points and select the “display R-squared value.” The finished chart will look like what you see in Figure 2."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-82-80-81-at-the-close-pair-trading-and-chart-construction-by-ronald-mcewan-20.gif"",""height"":""621"",""width"":""439""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-82-80-81-at-the-close-pair-trading-and-chart-construction-by-ronald-mcewan-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-5-82-80-81-at-the-close-pair-trading-and-chart-construction-by-ronald-mcewan-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov301leto,d,"{""minimum-quantity"":""1"",""path"":""ch6j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:6 (10): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
EXCEL SPREADSHEET FOR CHOOSING OPTIMAL MONEYNESS
Editor,
I have received many emails from Stocks & Commodities readers who trade options, asking me about the possibility of providing the Excel spreadsheet mentioned in my February 2012 article in Stocks & Commodities, “Choosing Optimal Moneyness.”
In response, I’ve created a similar spreadsheet and would like to make it available to all S&C subscribers.
Giorgos Siligardos
\nWe have made this Excel spreadsheet available for download from the Subscribers’ Area of our website. From our homepage at Traders.com, scroll down to the section labeled “Article Code” and click “Enter now.” Look for the file from Giorgos Siligardos associated with the article “Choosing Optimal Moneyness.” Screen captures from the spreadsheet are shown in Figures 1 and 2.—Editor"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-10-letters-to-s-c-by-technical-analysis-inc-20.gif"",""height"":""617"",""width"":""423""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-10-letters-to-s-c-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-10-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov301trhi,d,"{""minimum-quantity"":""1"",""path"":""ch6j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:6 (12-17): Trading High-Yield Bonds Using ETFs by Brooke Gardner"",""caption-linebreaks"":""Trading High-Yield Bonds Using ETFs by Brooke Gardner
In the high-risk arena of high-yield bonds, it’s a good idea to use a trading system that avoids large drawdowns. Try applying a simple moving average.
IN 2008, when investors dumped assets of all kinds, high-yield bonds yielded about 20% interest. Since then, the subsequent rebound of about 75% has become so dramatic that many wonder if the high-yield bond market could be ready for another plunge.
The large drawdowns of high-yield bonds make for risky investing. Investors need to find a way to avoid these large down drafts, such as slightly improving the high-yield bonds’ total return by using an eight-month simple moving average (SMA).
According to The Economist, high-yield bonds returned some 15% last year after a 58% rise in 2009. Price levels surpassed the highs of 2007 (see Figure 1). Since then, the returns have been partially fueled by income investors seeking higher yields in a low-return bond market. But too many people have evidently gone into the market at one time as investment banks have earned $5.8 billion in high-yield bond fees, more than they made from investment-grade bonds.
Trend-following works well on high-yield bonds because they autocorrelate. Autocorrelation means that on an up day, the following day can be expected to be up also. Autocorrelation also works for down days, the upshot being that high-yield bonds form trends, and those tendencies can be identified with any moving average, especially one that avoids whipsaws."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-12-17-trading-high-yield-bonds-using-etfs-by-brooke-gardner-20.gif"",""height"":""622"",""width"":""446""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-12-17-trading-high-yield-bonds-using-etfs-by-brooke-gardner-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-12-17-trading-high-yield-bonds-using-etfs-by-brooke-gardner-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov301dapr,d,"{""minimum-quantity"":""1"",""path"":""ch6j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:6 (18-24): Daytrading Price Volatility Breakouts by Ken Calhoun"",""caption-linebreaks"":""Daytrading Price Volatility Breakouts by Ken Calhoun
Here’s how to recognize specific patterns that can be incorporated into a successful trading strategy.
\nEntering daytrades using well-defined technical signals is often based on specific price-based patterns. One of the most valuable daytrading tactics is using price volatility breakouts, which is defined as using the length of single price action moves to help determine trading entries. For example, the height of a specific cup pattern and percentages of the average trading range (ATR) are integral parts of daytrading strategies used by experienced traders when trading specific price volatility patterns.
DAYTRADING PRICE EXTENSIONS
Understanding specific price elasticity patterns is a key to precise daytrading because the most recent price elasticity (in both a full day’s average range as well as the depth of cups) is the best predictor of future price action. For example, in the two-day Netflix (NFLX) chart in Figure 1, you can see that on March 20, 2012, the opening range breakout range was exactly three points (116.7–113.7). On the following day, the opening range price extension was an identical three-point range (115.8 to 118.8).
Armed with this information, an astute daytrader would know to scale into a trade during the initial three-point run. He or she would also know to tighten in a trailing stop as the trade reaches the three-point price extension area during the second day in which this pattern is observed.\nThis type of price volatility breakout pattern recognition skill is part of what makes pattern daytrading a potentially successful technical trading strategy. The more often these microprice patterns are observed, the better our understanding of the volatility, and thus the more knowledge that a trader can gain about the instrument being traded."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-18-24-daytrading-price-volatility-breakouts-by-ken-calhoun-20.gif"",""height"":""623"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-18-24-daytrading-price-volatility-breakouts-by-ken-calhoun-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-18-24-daytrading-price-volatility-breakouts-by-ken-calhoun-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov302fiyo,d,"{""minimum-quantity"":""1"",""path"":""ch6j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:6 (26-33): First, You Design The System by Sunny Harris"",""caption-linebreaks"":""First, You Design The System by Sunny Harris
To become a proficient trader you need to test and confirm your ideas before placing a trade. But how do you go about doing that? Here are the first steps you need to take when you’re designing a trading system.
by Sunny Harris
I have been trading for more than 30 years. I have been designing and testing trading systems for 30 years as well. In this article and the ones that follow, I will cover system design and testing. We will go through the entire process in detail, so you can see what it takes to become a proficient trader. You cannot simply get up one morning and decide that you are a trader; you must do the homework, the study, the grueling process of testing, and confirming your ideas before putting real money after those ideas. Otherwise, you are liable to lose everything.
Through these articles, I will use several different software products for my charts, figures, and illustrations. Rather than make the articles all about one program, I will be using several. The concepts apply equally well to them all.
Design and testing of systems is tedious at best and grueling at worst. In fact, maybe the worst would be never finding a system that works the way you want it to.
Testing used to be even worse. When I first began researching and testing trading systems, I had to do it with pencil and paper and a calculator. Then came Excel and spreadsheet math, which was much easier. Eventually, SystemWriter, the predecessor to TradeStation, was invented, and then it was off to the races. What used to take me months now only takes days to find out if my system works. So what does “works” mean in this case?
WHAT DOES IT MEAN?
As far as a system is concerned, for these articles, a system “works” when it makes a profit. It could mean that the system places buy & sell arrows on a chart. But as far as I am concerned, “works” means that a system is profitable. Figure 1 works as far as arrows go. But as you will see from Figure 2, it doesn’t work as far as profit goes.
The very first line in the strategy performance report, under the “All trades” heading and across from “Net profit,” shows a loss of $92.42. So while the system draws nice arrows and connecting lines and it looks pretty on the chart, it does not work as far as my definition goes.
"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-26-33-first-you-design-the-system-by-sunny-harris-20.gif"",""height"":""621"",""width"":""435""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-26-33-first-you-design-the-system-by-sunny-harris-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-26-33-first-you-design-the-system-by-sunny-harris-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov303intr1,d,"{""minimum-quantity"":""1"",""path"":""ch6j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:6 (34-39): Intraday Trading In The First Hour by Josh DiPietro"",""caption-linebreaks"":""Intraday Trading In The First Hour by Josh DiPietro
This system could allow you to earn consistent profits by trading during the first market hour.
by Josh DiPietro
Not every would-be daytrader has the time to sit at his or her trading station for the entire day’s market session. That can be tough to do even part time. During the trading hours of 9:00 am to 4:30 pm Eastern time (ET), many people aren’t available at all. If you live on the West Coast, however, you’re in luck. You have the advantage of being able to start trading at 6:30 am Pacific time (PT) and going into your day job on time.
Don’t get me wrong: I’m not trying to make this sound easy. You have to be wired for action when the birds are just starting to sing. If you weren’t a morning person before, you certainly have to be if you’re daytrading at the open. Fifteen minutes before the ringing of the bell, you have to be studying your charts. You have to be alert and in tune with your strategy, just as you would be if you were trading full time. You have to be ready to concentrate on an hour and a half of daytrading before you are out the door to your regular paycheck.
You may get stained teeth from extra coffee consumption, but if you follow this system, you may find that it is worth it. Ultimately, you may find yourself earning profits of $100 to $300 per day, all in that tiny dawn window, whether you start at 6:30 am PT or 9:30 am ET.
BEFORE THE OPENING BELL
My trading methodology requires you to execute real-time equity orders during the first market hour. During this period you have to be riveted to your station, focused on each entry and exit. You cannot take a break for a bowl of cereal and come back munching to see how your trade is doing. All your trades must be done in real-time, buy and sell (long and short positions). During this hour you will place two to five round-trip trades (four- to 10-order executions), and this must be with one stock only."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-34-39-intraday-trading-in-the-first-hour-by-josh-dipietro-20.gif"",""height"":""626"",""width"":""462""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-34-39-intraday-trading-in-the-first-hour-by-josh-dipietro-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-34-39-intraday-trading-in-the-first-hour-by-josh-dipietro-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov304pswi,d,"{""minimum-quantity"":""1"",""path"":""ch6j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:6 (40-42): The Psychology Within Patterns by David Garrard"",""caption-linebreaks"":""The Psychology Within Patterns by David Garrard
Experienced traders appreciate the connection between technical analysis of the financial markets and the psychology of the market participants. Find out how psychological drivers lead to pattern formations that are used regularly by traders and investors.
Technical analysis is often lumped in with black magic. Yet a simple review of some of the underlying pattern psychology that technicians use would help us all understand and appreciate better why price patterns are used — sometimes exclusively — by some traders and investors. In some emerging markets, where it can be difficult to find fundamental data that is both reliable and historically complete, technical analysis is hugely popular. Recent research in behavioral finance has exposed some new ideas and taken some of the magic out of how markets work. And both magic and technical analysis have a basis in psychology. Looking at patterns with an understanding of the psychological drivers that can lead to the pattern formations themselves will make you a better trader.
Here, we explore how technical analysis has a basis in human psychology. We’ll also explore how these drivers lead to pattern formations that are used by traders and investors. You will be able to judge individual patterns for quality based on the attributes of the patterns themselves.
Most of the geometric attributes of popular patterns have a psychological basis. Let’s review a few.
TRIANGLE PSYCHOLOGY
Take, for example, the ascending continuation triangle. This pattern has a price geometry characterized by at least two higher lows, plus multiple attempts to penetrate resistance that is apparent at the price level defined by the near-horizontal upper boundary of the triangle (Figure 1). With a well-established rising inbound trend and a final breakout of the pattern to the upside, we expect a continuation of the earlier uptrend. Psychologically, most triangle patterns signify a collective pause as participants rest and test the new price level. Individual price pivots occur as buyers and sellers map out the supply and demand curves for this stock."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-40-42-the-psychology-within-patterns-by-david-garrard-20.gif"",""height"":""625"",""width"":""455""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-40-42-the-psychology-within-patterns-by-david-garrard-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-40-42-the-psychology-within-patterns-by-david-garrard-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov304fufo1,d,"{""minimum-quantity"":""1"",""path"":""ch6j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:6 (43): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
THE JOYS OF PAPER-TRADING
How long should novice traders paper-trade before getting involved in the markets?
The benefits of paper-trading significantly diminish beyond a couple of weeks. In fact, those who spend months (or even years) perfecting their skills in a simulated trading account are likely getting more entertainment than education.
The bottom line? Trading success is largely determined by mental stability, but unfortunately, paper-trading excludes the psychological aspect of the game. As a result, the practice fails to provide traders with a realistic account of their skills. For instance, a successful paper-trader might be proficient in technical analysis and fundamental research, but if he is not capable of managing his emotions, the success enjoyed in a simulated account will not carry into live trading.
The difference between a simulated account and live trading is that there is actual money involved in a live account and, therefore, risk of loss. Along with financial risk comes psychological challenges; a less obvious difference between simulated and live trading is that making rational decisions with what is essentially Monopoly money can be done relatively quickly and efficiently. Yet, when there is hard-earned money on the line, the mind has a tendency to play tricks on traders as fear, greed, and frustration breed pressured decisions."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-43-futures-for-you-by-carley-garner-20.gif"",""height"":""616"",""width"":""423""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-43-futures-for-you-by-carley-garner-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-43-futures-for-you-by-carley-garner-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov304inda,d,"{""minimum-quantity"":""1"",""path"":""ch6j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:6 (44-48) Interview David Vomund and The World Of Exchange Traded Products"",""caption-linebreaks"":""Interview David Vomund and The World Of Exchange Traded Products
David Vomund is the president of Vomund Investment Management, an investment advisory company that specializes in managing exchange traded fund (ETF) portfolios. While other advisory firms are only now discovering ETFs, Vomund’s firm has an exceptional nine-year track record of ETF trading.
With more than 20 years of investment and portfolio management experience, he is a frequent speaker at national investment conferences. Vomund’s analysis and forecasts have appeared in many publications such as Active Trader, Los Angeles Times, and Barron’s, and he was our interview subject previously, in the October 1999 issue of Stocks & Commodities.
The author of two highly acclaimed books, ETF Trading Strategies Revealed and Exchange Traded Profits, Vomund is methodical and practical in addressing both the technical and behavioral approaches to investing. Several of the methods discussed in these books are applied to his management account program. He also publishes VIS Alert.com, a weekly newsletter that covers market timing, ETF rotation, and stock selection.
This interview was conducted via email, with S&C Editor Jayanthi Gopalakrishnan sending a series of questions to Vomund. The interview was completed on April 16, 2012.
David, how did you get interested in technical analysis?
You know how your first job after college is always very important in determining your future direction? My first job was in the technical research department for a small investment newsletter company. I am a numbers guy so it suited me well, but this was in the mid-1980s, so a lot of the work was by hand. We had some impressive-looking point & figure charts! A bull market was on, so we had to tape graph paper to the top of existing charts because prices were literally going off the charts. We also did a lot of work with sector rotation, something that is still important in my analysis.
What led to your interest in exchange traded funds?
We have to learn from every bear market so that mistakes are not repeated. I learned from the 2000–03 bear market that you need to be flexible in the type of analysis that you use. For example, growth investors did very well in the 1990s, but then value investors fared better in the early 2000s. Along the same lines, the large-cap stocks in the NASDAQ 100 performed best in the 1990s, but small-cap stocks performed best in the early 2000s.
As market conditions change, your trading style will move into and out of favor. We have to be flexible, but that is easier said than done. It is hard for a growth investor to employ a value strategy, and it is hard for a value investor to employ a growth strategy.
I am a growth investor so it goes against my nature to buy undervalued, high-yielding value stocks. That’s where ETFs come in. Instead of forcing myself to become a value investor when growth investing is out of favor, I can just buy a value ETF.
So in 2003 I began a managed account program that used a mechanical strategy to, in effect, jump around the Morningstar box. If large-cap value stocks are leading, then I’ll own a large-cap value ETF. If small-cap growth stocks are in favor, then I’ll buy a small-cap growth ETF.
ETFs gave me the flexibility to employ whatever style of investing was in favor at the time. Nearly 10 years later, the portfolios, after all the fees, have almost doubled in value.
You have done a lot of work with ETFs, publishing a couple of books on the subject. How is trading ETFs different from trading equities or futures?
In many ways it is the same. The chart patterns that we employ on stocks can also be used on ETFs. The price-based indicators that are used on stocks, such as moving averages and stochastics, can also be used on ETFs.
However, there is a real distinction when it comes to volume analysis. Indicators that use volume as an input need to be used in a different way. The price of a stock or an ETF is determined by supply and demand, but the supply side of the two securities is very different.
If an institutional investor places a large buy order on an illiquid stock, the stock will jump in price in order to execute his order. If, on the other hand, an institutional investor places a large buy order on an illiquid ETF, then more shares can be created in order to fulfill his order. The ETF doesn’t have to jump in price in order to complete the buy order.
The divergence between the two securities, therefore, is that for stocks the supply is generally fixed. For ETFs, the supply side can change so it is possible to have declining prices at the same time there is an influx of buy orders."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-44-48-interview-david-vomund-and-the-world-of-exchange-traded-products-20.gif"",""height"":""632"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-44-48-interview-david-vomund-and-the-world-of-exchange-traded-products-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-44-48-interview-david-vomund-and-the-world-of-exchange-traded-products-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305qaby2,d,"{""minimum-quantity"":""1"",""path"":""ch6j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:6 (50): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
UNEQUAL CREATION
I have been watching various exchange traded funds (ETFs) and exchange traded notes (ETNs) during the day and have found that I need to keep them overnight since I’m still bullish, but they did not go my way. I have read from Direxion that leveraged ETFs are made for daytrading only. What are your feelings about standard ETFs and especially ETNs? —RonJMemphis
Good questions, and I can start out by saying “Stop” — stop keeping any of these products overnight until you understand much better how they work. And by the way, because something goes against you is not a reason to keep it overnight. Traders need to find an actual edge in their trading, even their directional trading, especially when keeping overnight. I asked Rob Friesen, my resident expert on pairs and derivates, to chime in on this question. Friesen is a trader/member and has been a manager for Bright Trading for more than 14 years. He also manages www.pairtrader.com for equity pair traders. His reply:"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-50-q-a-by-don-bright-20.gif"",""height"":""617"",""width"":""423""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-50-q-a-by-don-bright-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-50-q-a-by-don-bright-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305trti,d,"{""minimum-quantity"":""1"",""path"":""ch6j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:6 (52-54): Trading Ticket by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Trading Ticket by Jayanthi Gopalakrishnan
High-Yield Bond ETFs\n• iShares iBoxx High Yield Corporate Bond ETF (HYG)\n• SPDR Barclays High Yield Bond (JNK)\n• ProShares Short High Yield (SJB)
According to the March 11, 2012, Financial Times article “Warning On High-Yield ETF Returns,” high-yield exchange traded funds (ETFs), which mostly consist of junk bonds, have seen net inflows of $6.6 billion so far (and at that time, we were not even done with the first quarter). Total net inflows into high-yield ETFs in all of 2011 was $8.4 billion. Is it an indication that investors are willing to take higher risks? Or are they attracted to them because their yields are much better than short-term interest rates?
Junk bonds typically carry a high risk, given that they are bonds that carry a credit rating below BBB (Standard & Poor’s) or Baa3 (Moody’s). The main risk concern with high-yield bonds is the increased likelihood of the companies defaulting on their loans. But besides that, you need to be mindful of how closely the ETF tracks its benchmark index (tracking error).
It is well known that ETFs tend to underperform their benchmark indexes, but you’ll find that high-yield bond ETFs underperform their benchmark indexes even more than other ETFs. The reason behind this is the high turnover and high transaction costs. In addition, the pricing in the junk bond market is not transparent, making the bid/ask spread relatively wide.
It would be to your benefit to keep an eye on the correlation between the equity markets and the high-yield bond market. Typically, bonds and equities are negatively correlated, but studies have shown that when high-yield bonds start to become highly correlated with equities, there is reason to be cautious."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-52-54-trading-ticket-by-jayanthi-gopalakrishnan-20.gif"",""height"":""617"",""width"":""425""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-52-54-trading-ticket-by-jayanthi-gopalakrishnan-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-52-54-trading-ticket-by-jayanthi-gopalakrishnan-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305wepr,d,"{""minimum-quantity"":""1"",""path"":""ch6j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:6 (56-59): Wealth-Lab Pro by Dennis D Peterson"",""caption-linebreaks"":""Wealth-Lab Pro by Dennis D Peterson
\nWealth-Lab Pro is a complete trading platform that you can download on your computer. The product is aimed at programmers who want to program and backtest trading strategies for stocks or futures. It has a drag & drop feature that lets you build strategies with prebuilt indicators, but the greatest flexibility comes from using its programming language, Wealthscript.
When Wealth-Lab was initially developed, it was free via the Internet. It was quite a find: software that was well written in terms of navigation and capability, and you didn’t have to pay through the nose for it. After a while, you did have to buy it, and then it was called Wealth-Lab Developer. A while after that, company cofounders Volker Knapp and designer/developer Dion Kurczek sold it to Fidelity Investments. Fidelity marketed the product as Wealth-Lab Pro and has made it available to US residents with a brokerage account with Fidelity Investments.
DATAFEEDS
The first thing you’ll want to do is access a datafeed. Wealth-Lab Pro offers six different feeds (Figure 1), five of which are end of day (EOD). As a result of MetaStock’s popularity, there is an interface to MetaStock formatted data. There are a couple of ways to get data into MetaStock format. Perhaps the easiest is to use CSI (Commodity Systems Inc.), which has a large number of leasing plans such as US stocks and indexes (with a 10-year history) for $285 a year. Or you could use Yahoo! Finance data, which is free EOD data.
CHARTING
Wealth-Lab Pro charts display price data in the usual formats — candlesticks, line, and OHLC, to name a few — but also in relatively rare formats such as equivolume, equicandle, kagi, point & figure, and renko, which is similar to point & figure. Renko creates boxes only when there is sufficient price movement, but uses only closing prices. The two classes of indicators to chart are TASC (as in Technical Analysis of Stocks & Commodities) indicators and Wealth-Lab standard indicators."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-56-59-wealth-lab-pro-by-dennis-d-peterson-20.gif"",""height"":""633"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-56-59-wealth-lab-pro-by-dennis-d-peterson-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-56-59-wealth-lab-pro-by-dennis-d-peterson-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov306exyo1,d,"{""minimum-quantity"":""1"",""path"":""ch6j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:6 (60-61): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
WHERE’S MY HEDGE?
If I put on a bull vertical spread, what can I do to hedge the position?
By either purchasing a bull call vertical or selling a bull put spread, you are starting out with a hedged position. Compared to an outright long call using the same strike for the purchased vertical or selling the same strike put, the trader is dramatically cutting down vega (volatility) and theta (time decay) risk. At the same time, desired directional risk is reduced but remains the crux of the spread’s ability to turn a profit.
Once you are in this type of position and you are showing a paper profit, further hedging using adjustments are possible. The most straightforward way of cutting risk down further and possibly ensuring a guaranteed profit would be to close down a portion of the existing spread if more than one contract were initiated. If a trader’s outlook on shares remains intact and there’s still room for the spread to expand nicely before hitting its maximum profit potential, this type of adjustment is certainly appropriate to consider."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-60-61-explore-your-options-by-tom-gentile-20.gif"",""height"":""619"",""width"":""430""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-60-61-explore-your-options-by-tom-gentile-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-60-61-explore-your-options-by-tom-gentile-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov306wefo,d,"{""minimum-quantity"":""1"",""path"":""ch6j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:6 (62): Websites For Traders by Jayanthi Gopalakrishanan"",""caption-linebreaks"":""Websites For Traders by Jayanthi Gopalakrishanan
TRADINGVIEW.COM
Anyone interested in profiting from the markets is always looking for good trading ideas. So the ability to share ideas with people of similar interests from around the world is something that all traders will welcome. Tradingview.com has entered the social network arena for traders by providing you with a unique tool with which to communicate your ideas with other traders. Tradingview.com has developed a cloud-based, state-of-the-art online charting application that any technical trader will find of interest. Given that the parent company of Tradingview.com is trading software developer MultiCharts, it’s no surprise that they would have come up with something so technologically modern and targeted at technical analysts.
LEARN, TRACK, AND SHARE
It would be hard to miss the three large icons on the home page (Figure 1) — “Learn,” “Track,” and “Share” — which really are the main features of this site. I found it very easy to get carried away navigating from feature to feature on this site, so having it organized into the three categories helped point me in the direction I wanted to go."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-62-websites-for-traders-by-jayanthi-gopalakrishanan-20.gif"",""height"":""617"",""width"":""423""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-62-websites-for-traders-by-jayanthi-gopalakrishanan-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-62-websites-for-traders-by-jayanthi-gopalakrishanan-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov30678tr,d,"{""minimum-quantity"":""1"",""path"":""ch6j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:6 (63-72, 78-79): Traders' Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders' Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Brooke Gardner’s article in this issue, “Trading High-Yield Bonds Using ETFs.”
Code for eSignal (an EFS study) is already provided in Gardner’s article. Subscribers will find that code at the Subscriber Area of our website, www.Traders.com. (Click on “Article Code” from our homepage.) Presented here is an overview of possible implementations for other software.
Traders’ Tips are provided to help the reader implement a selected technique from an article in this issue. The entries are contributed by various software developers or programmers for software that is capable of customization.
Readers will find all the code listings that accompany the following Traders’ Tips at our website, Traders.com. Provided here is some discussion of the technique’s implementation by the Traders’ Tips contributors as well as some example charts.
To locate Traders’ Tips at our website, use our site’s search engine, or click on the Traders’ Tips link from our home page. For past Traders’ Tips, click on the “Archive” button in the S&C Magazine box in the middle of our home page, then click on a Traders’ Tips topic of interest, or click on a different year to see more choices."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-63-72-78-79-traders-tips-by-technical-analysis-inc-20.gif"",""height"":""617"",""width"":""426""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-63-72-78-79-traders-tips-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-63-72-78-79-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov307bofo5,d,"{""minimum-quantity"":""1"",""path"":""ch6j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:6 (77): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
Foreign Exchange: The Complete Deal — A Comprehensive Guide To The Theory And Practice Of The Forex Market
The Business Of Trading: 101 Steps To Trading Success
Currency Trading In The Forex And Futures Markets
Deemer On Technical Analysis: Expert Insights On Timing The Market And Profiting In The Long Run
Exchange Data’s Closing Prices Handbook: The Definitive Guide To Closing Prices Definition
Survival Guide For Traders"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-77-books-for-traders-by-technical-analysis-inc-20.gif"",""height"":""612"",""width"":""412""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-77-books-for-traders-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-77-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov30881at1,d,"{""minimum-quantity"":""1"",""path"":""ch6j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:6 (82, 81): At The Close: Daytrading Rule 1: No Overnights by Fausto Pugliese"",""caption-linebreaks"":""At The Close: Daytrading Rule 1: No Overnights by Fausto Pugliese
Having the discipline to follow your rules of daytrading will limit your losses and maximize your gains. Find out how one rule can make a world of difference.
IN my experience teaching thousands of individuals to daytrade, I have found that the ultimate determining factor in success is not experience, analytical ability, or risk tolerance. No, the secret ingredient in 99% of trading success stories is discipline. Some traders have natural self-control, while others develop it over time.
Achieving the discipline to follow the strict rules of daytrading will limit your losses and maximize your gains. A few easy steps can get you on the right track, and the first one I always suggest is to Never hold overnight positions.
BUT WHAT IF...?
Traders use the phrase “daytrading” because daytraders open and close all their positions during the same trading day. A true daytrader starts each session with no open positions, makes his or her trades during the course of that day, and ends each day the way he started it — with no open positions, no exceptions!
This is an easy rule to follow when you’re making money. If your trade is showing a positive return, it is not that hard to cash out of the position by the end of the day and take your profits.
This rule becomes more difficult to follow, however, when you are cashing out a losing position. For example, let’s say you bought a stock late in the day at support, expecting to sell as it bounced back up near resistance sometime before the closing bell. Yet for some reason, the stock broke through its support level and now, you’re looking at a $1,000 loss on the trade as the close looms.\nIn this case, holding onto the stock will be tempting as you hope it resumes its normal trading pattern at the opening bell the next morning, getting you back close to where you started. A voice in your head will say, “Why close out a losing position that might turn into a winning one if I just wait an extra day?” Ignore that voice! It is the voice of financial ruin."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-82-81-at-the-close-daytrading-rule-1-no-overnights-by-fausto-pugliese-21.gif"",""height"":""621"",""width"":""439""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-82-81-at-the-close-daytrading-rule-1-no-overnights-by-fausto-pugliese-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-6-82-81-at-the-close-daytrading-rule-1-no-overnights-by-fausto-pugliese-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov301oppo,d,"{""minimum-quantity"":""1"",""path"":""ch7j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:7 (10-18): Opening Position by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Opening Position by Jayanthi Gopalakrishnan
Last time, we covered the basics of what a system is, why you need one, and how to find one. This time, you will learn how to design and test a system, whether it is your own or someone else’s.
The steps to building a system are simple. They are: Find the right indicator. Design your setups, and determine when to buy, when to sell if you’re right, and when to sell if you’re wrong. Test the system. And finally, analyze the results. That’s about it. It sounds easy when I put it that way, doesn’t it? Well, it’s not really difficult; it’s just tedious. But here’s why you need to go through it all.
FIND THE RIGHT INDICATOR(S)
Many traders like to put a variety of indicators and/or systems on their charts in the hope that the more they add, the more likely they are to capture profits. Unfortunately, that is the least likely approach to capturing real-time profits. While indicators on charts look great, when you are reading a chart as it is forming, it is difficult to tell what the market might do next. So how do you find out?
Knowing there is money to be made going long and short because of the potential hourly wage (PHW) analysis (as explained in my June 2012 article) in the choppy market presented in Figure 1, we must determine what approach will net us something close to the 40% PHW number calculated.
I like to leave the yellow-dot indicator on my chart while I am conducting research and I am trading to remind myself to examine just how close I am getting to the ideal. The problem becomes one of finding an indicator or pattern that gives us close approximations to the yellow dots. If we find an indicator that gives more signals than the ideal, that’s okay. We can always weed out extraneous signals with filters and pare back to the optimal dots configuration."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-10-18-opening-position-by-jayanthi-gopalakrishnan-21.gif"",""height"":""627"",""width"":""460""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-10-18-opening-position-by-jayanthi-gopalakrishnan-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-10-18-opening-position-by-jayanthi-gopalakrishnan-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov302lotr,d,"{""minimum-quantity"":""1"",""path"":""ch7j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:7 (21-28): Long-Term Trading Using Exchange Traded Funds by Sylvian Vervoort"",""caption-linebreaks"":""Long-Term Trading Using Exchange Traded Funds by Sylvian Vervoort
Since ETFs track indexes, thus averaging a large number of underlying instruments, price movements tend to be relatively small. This makes it difficult to profitably trade ETFs using daily charts. Here’s how you can overcome this drawback.
arious approaches can be found for technical analysis–based buy & sell signals, all of which are categorized into three methods. The first is the one I use in my book Capturing Profit With Technical Analysis, a method called LOCKIT. It uses all kinds of technical analysis techniques to come up with reliable buy & sell signals. This is not the easiest method because you need a broad knowledge of all the basic techniques and the know-how to apply them.\nThe second method applies artificial intelligence, feeding the data and technologies out of the first method into neural networks, automatically capturing price, volume, or any other pattern displayed by LOCKIT.\nThen there’s the third method. This one trails price movement, basing your buying and selling on the idea that breaking a short- or medium-term up- or downtrend signals a trend reversal. Here, you have to find the most profitable balance between entering a trade quickly and avoiding false entries as much as possible, staying in as long as possible to let profits run. This is the method I apply in different trading expert systems. However, once there is a buy or sell signal, you should look for techniques from the first or second method to avoid nonprofitable trades.
TRADING EXCHANGE TRADED FUNDS
The third method can only be profitable if price moves are regular and large enough. Since exchange traded funds (ETFs) are tracking indexes that average a large number of underlying instruments, it is unusual to find larger moves with limited drawbacks on daily charts of ETFs. This makes it difficult to trade ETFs profitably with a trend-following system.
I tested a number of country ETFs with different expert systems on daily charts. As I expected, the results were not to my satisfaction, considering the limited price moves. Only when I started using weekly charts instead of daily ones were the profits consistent. The weekly charts represented larger moves we need for a profitable trend-following system. One advantage is that you only need to look for buy or sell signals once a week. Now, all you have to do is find the best-performing expert.
The best-performing system I found was my heikin-ashi candles oscillator (HACO), details about which were published in the December 2008 issue of Stocks & Commodities. First, let’s look at the backtest settings and the historical results using HACO."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-21-28-long-term-trading-using-exchange-traded-funds-by-sylvian-vervoort-21.gif"",""height"":""626"",""width"":""452""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-21-28-long-term-trading-using-exchange-traded-funds-by-sylvian-vervoort-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-21-28-long-term-trading-using-exchange-traded-funds-by-sylvian-vervoort-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov303quof,d,"{""minimum-quantity"":""1"",""path"":""ch7j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:7 (30-34) The Queen Of The Iron Condors by John Sarkett"",""caption-linebreaks"":""The Queen Of The Iron Condors by John Sarkett
Find out what one trader did when her favorite trading vehicle was down 43 points one Monday, en route to a 25% July–October, top-to-bottom loss.
her worldwide trading community, Amy Meissner is known as “the queen of the iron condors.” Part of that is attitude. There was one recent day when the Russell 2000 (RUT), her favorite trading vehicle, was down 43 points en route to a 25% July–October, top-to-bottom loss.\n“I wasn’t worried,” she explained. “First of all, the RUT was already oversold. Second, the catalyst for the loss was political wrangling in Washington over the debt ceiling, something that had been going on for months. And my short put options had only moved from -8 delta to -14 delta on the open, then -16 during the day, and 16 is where I adjust. It was manageable.”\nIt’s that kind of unflappability that makes Meissner well-suited to her role as an option queen.
THIRD TIME'S THE CHARM
Meissner began her trading in the 1990s. “I learned about options from an article I had read and I decided to give it a try,” she explains. “It was much more expensive to trade back then, and only special brokerage firms would trade options.”
She started by selling SPX credit spreads. The venture lasted several months before she gave it up. Meissner decided to give the option initiative another look in 2005, opening a $20,000 discretionary account with an online advisory firm. Their specialty: iron condors.
At the outset, it was steady as she goes. It took about half a year to boost the account to $28,000, a 40% return — stunning, especially in the aftermath of the 2000–01 tech meltdown.
Then came sudden destruction. “One Wednesday before expiration, I was nervous about holding through Friday, and said I wanted to cover,” she recalls. “The traders assured me there was a high statistical probability of the options going out at zero.” It was part of the firm’s method to let options expire worthless. It was a good idea, until it’s not."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-30-34-the-queen-of-the-iron-condors-by-john-sarkett-21.gif"",""height"":""623"",""width"":""442""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-30-34-the-queen-of-the-iron-condors-by-john-sarkett-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-30-34-the-queen-of-the-iron-condors-by-john-sarkett-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov306oppo1,d,"{""minimum-quantity"":""1"",""path"":""ch7j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:7 (35): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
SIDE BY SIDE
What are the advantages of trading forex and currency futures side by side?
If you’ve been a regular reader of this column or have had the opportunity to read my latest book Currency Trading In The Futures And Forex Markets, you might have gathered I favor currency speculation in the futures markets relative to forex. There are several arguments for and against each venue, but the safety of regulation and customer segregated funds offered to futures traders appeals to me. That said, there are certainly times in which having access to the forex markets can be beneficial.
Three instances in which traders can benefit from trading forex are when:
Trading small quantities in off-market hours, or currency pairs other than the highly liquid EUR/USD\nI’ve discussed the CME Group’s relatively new line of emicro currency futures before and we’ve touched upon the fact that these products sometimes suffer from a lack of liquidity. Despite having good market makers to improve the ability of traders to execute at fair prices, there are times when efficient execution is challenging. In many instances, forex pair traders might find favorable execution using forex mini contracts (10,000 units) due to smaller pip spreads, particularly during the off-hours such as late afternoon. Tighter spreads lower the overall transaction costs and mitigate some of the frustrations of entering and exiting a market with slippage in pricing."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-35-futures-for-you-by-carley-garner-21.gif"",""height"":""620"",""width"":""427""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-35-futures-for-you-by-carley-garner-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-35-futures-for-you-by-carley-garner-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov303adan,d,"{""minimum-quantity"":""1"",""path"":""ch7j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:7 (36-39): Adaptive and Optimized Channels by Dirk Vandycke"",""caption-linebreaks"":""Adaptive and Optimized Channels by Dirk Vandycke
Chart channels are core instruments that belong in the toolbox of any technical analyst. As useful as they are, they tend to be subjective in nature, which makes them hard to implement algorithmically. Here’s how to optimize horizontal channels, calculate the most optimal ones, and as such, create setups based on their support and resistance characteristics.
Ranges are important when it comes to the automated analysis of charts. They capture price movements between parallel support and resistance lines, enabling us to monitor trends so we know when they are accelerating and when they are slowing. Horizontal channels are useful in detecting consolidating ranges, which indicate if prior existing trends are catching on or turning around or if new ones are emerging. Many popular systems like William O’Neil’s CANSLIM approach, Stan Weinstein’s stage analysis, the box system of Nicolas Darvas, and most trend-following strategies depend on horizontal channels to assess when a new trend, phase, box, or stage is starting.\nOf all channels, horizontals are the easiest to define, given that most of what we need to identify them are two price levels. However, what those price levels are is subjective. Trader Richard Donchian provided us with the oldest, perhaps most popular but definitely the most useful ways to define horizontal channels.
DONCHIAN CHANNELS
These channels are also known as x-bar high/low. Simply, they are an implementation of the maximum (max) and minimum (min) functions we often come across in mathematics. These functions are derived by looking back over a certain period and calculating the lowest low and the highest high. These then form support and resistance levels. Figure 1 displays a chart of VMware, Inc. (VMW), with one upper Donchian channel line (resistance) with a lookback period of 59 days and a lower channel line (support) with a window of 16 days. Starting from the right side of the chart and going back, the highest high over the previous 59 days was $27.21, while the lowest low over the previous 16 days was $20.02. These lines are labeled as D59 and D16 on the chart in Figure 1."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-36-39-adaptive-and-optimized-channels-by-dirk-vandycke-21.gif"",""height"":""620"",""width"":""432""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-36-39-adaptive-and-optimized-channels-by-dirk-vandycke-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-36-39-adaptive-and-optimized-channels-by-dirk-vandycke-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov304kowa,d,"{""minimum-quantity"":""1"",""path"":""ch7j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:7 (40-44): The Kondratieff Wave And The Presidental Cycle by Koos van der Merwe"",""caption-linebreaks"":""The Kondratieff Wave And The Presidental Cycle by Koos van der Merwe
History has shown that the stock market and the four-year Presidential election cycle follow strong predictable patterns. What can we expect going forward?
The year 2011 was one of uncertainty, with many investors staying in cash rather than risk investing in the stock market. With its financial problems, Greece was on everyone’s mind, and the market felt the burden. Italy, suffering from its own woes, stood in the wings waiting to take the stage once Greece took its bow. Then of course, even nature joined in the market’s negative game. On March 11, 2011, a massive earthquake and tsunami in Japan rocked the stock markets of the world. Could Nikolai Kondratieff, the Russian economist (1892–1938) who developed the famous wave theory, have foreseen all of that?
THE KONDRATIEFF WAVE
When Kondratieff developed his theory, he theorized that economic forces repeated themselves in a pattern of a 54- to 55-year boom-and-bust cycle. He described the collapse of a boom as characterized by the “renunciation of debt.” Isn’t that what happened to the banks throughout the world, and isn’t that what is happening to selective countries that did not take a stronger action with their monetary policy in the eurozone today?
In “My Kondratieff Wave,” my S&C November 2008 article, I wrote, “What is fluid is the depth of the recession forecast by the wave. Fortunately, this can be controlled by monetary policy, yet even that is uncertain...”
What is happening in Europe today has shown how uncertain that can be. In my April 2010 article “Kondratieff Wave Comeback,” I concluded with, “I often wonder to what extent [Kondratieff] would change his charts if he had lived in today’s fast world, or if he would change them at all.”"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-40-44-the-kondratieff-wave-and-the-presidental-cycle-by-koos-van-der-merwe-21.gif"",""height"":""622"",""width"":""439""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-40-44-the-kondratieff-wave-and-the-presidental-cycle-by-koos-van-der-merwe-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-40-44-the-kondratieff-wave-and-the-presidental-cycle-by-koos-van-der-merwe-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov304qaby1,d,"{""minimum-quantity"":""1"",""path"":""ch7j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:7 (45): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
FLASH CRASH REDUX?
You have written about the flash crash and its impact on how the markets are working. Has there been anything done to assure that it won’t happen again, or to make the spreads tighter for the average trader? —Maverick99Boston\nTalk about a timely issue! My first reaction was to say, “Of course things are much better” — but then I asked Dennis Dick, one of my resident experts, on the topic. He had just put together an article about the subject. Some excerpts:
http://premarketinfo.com/2012/05/07/two-years-after-the-flash-crash-spreads-are-narrower-and-liquidity-deeper-than-ever-before-guess-again/"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-45-q-a-by-don-bright-21.gif"",""height"":""619"",""width"":""434""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-45-q-a-by-don-bright-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-45-q-a-by-don-bright-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov304inti,d,"{""minimum-quantity"":""1"",""path"":""ch7j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:7 (46-51): Interview: Timing The Market With Walter Deemer by Jayanthi Gopalakrishnan and Bruce Faber"",""caption-linebreaks"":""Interview: Timing The Market With Walter Deemer by Jayanthi Gopalakrishnan and Bruce Faber
Walter Deemer began his Wall Street career as a Merrill Lynch research trainee in 1963 and moved into their market analysis department in 1964, where he worked directly under technician Robert Farrell. He has been a full-time market analyst ever since.
Deemer joined Jerry Tsai’s Manhattan Fund just before its record-breaking offering in 1966, observing the “go-go years” from one of the epicenters. He went to Putnam in 1970 to head their market analysis department, eventually becoming a senior vice president and investment policy committee member. He struck out on his own in 1980 via Deemer Technical Research and advised institutional investors until his quasi-retirement in 2010 (he still writes commentaries for some of his old clients). His book, Deemer On Technical Analysis, was published in February 2012 by McGraw-Hill.
Deemer is a founding member and past president of the Market Technicians Association, and a founding member of the American Association of Professional Technical Analysts. He has appeared on the Nightly Business Report and has been the special guest on Wall $treet Week. He was the featured technical analyst in “Dean LeBaron’s Treasury Of Investment Wisdom,” joining such luminaries as John Bogle, Peter Lynch, and George Soros. And finally, Deemer was one of the analysts featured in The Heretics Of Finance: Conversations With Leading Practitioners Of Technical Analysis by Andrew Lo and Jasmina Hasanhodzic.\nS&C Editor Jayanthi Gopalakrishnan and Staff Writer Bruce Faber interviewed Walt Deemer via telephone on May 7, 2012.
WALT how did you get interested in the markets and especially technical analysis?
As a kid, I was interested in statistics. When I was in grade school, I followed the sports pages, and next to the sports pages were the financial pages. My father explained the financial pages to me, so I got interested in them. I kept model portfolios of stocks.
Then when I went to college at Penn State, there was one brokerage office in town, and out of the three brokers there, two were very technically oriented, one of whom was an adjunct professor.
That was in autumn 1961, and the winter and spring of 1962. If you remember, there was a crash in the stock market in May 1962. The technically oriented brokers had seen it coming, and I was very impressed. I got curious, so one day out of the college library I got Joseph Granville’s A Strategy Of Daily Stock Market Timing For Maximum Profit. I was captivated by it, and I have been hooked on technical analysis ever since. That was 50 years ago.
What do you do now?
I write market commentaries when the spirit moves me and send what I write to friends and clients. I retired at the end of 2010, and I spent all of 2011 working on the book Deemer On Technical Analysis.
Once the book was published, I settled back a little more. The problem is if you have been as involved as I am, the markets are in my blood. I couldn’t just retire. The market is a fascinating creature. Old technicians never retire, they just chart away.
What prompted you to write the book?
I had a long career’s worth of things I had learned. I was lucky because I worked on the buy side from 1966 when I left Merrill Lynch until 1980, when I left Putnam. I was able to work with the best technical analysts on Wall Street. I had some brilliant instructors. I wanted to share some of the things they had taught me, plus some of the things I picked up along the way."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-46-51-interview-timing-the-market-with-walter-deemer-by-jayanthi-gopalakrishnan-and-bruce-faber-21.gif"",""height"":""633"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-46-51-interview-timing-the-market-with-walter-deemer-by-jayanthi-gopalakrishnan-and-bruce-faber-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-46-51-interview-timing-the-market-with-walter-deemer-by-jayanthi-gopalakrishnan-and-bruce-faber-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305exyo1,d,"{""minimum-quantity"":""1"",""path"":""ch7j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:7 (52): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
FLYING RISKS
Can you explain what extra risks I would assume with a long butterfly position if assigned on any or all of my short contracts?
Great question. First, realize a forced assignment in a long butterfly position won’t open up the trader to more dollar risk. The assumed debit and maximum dollars at stake when the position was opened remains the same, no matter how many of your short calls or puts are assigned. This is because you are hedged and contract neutral. Understanding you are essentially in a covered position, as far as dollars at risk are concerned, might be easier if you break down the long butterfly into its component spreads of one bull vertical and one bear vertical and look at different assignment scenarios.\nTo illustrate, assume you have a one-lot XYZ 30/35/40 (1 x ‑2 x 1) long call butterfly established for $1.50. With shares at 37, you receive assignment on one of your two short 35 calls. Now short 100 shares as part of your overall position, you can exercise the long 30 call to flatten the stock inventory. The exercise, which is your right to buy 100 shares at 30, maximizes the value of the 30/35 bull vertical as you were already forced to sell or short shares at 35."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-52-explore-your-options-by-tom-gentile-21.gif"",""height"":""617"",""width"":""424""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-52-explore-your-options-by-tom-gentile-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-52-explore-your-options-by-tom-gentile-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305prre5,d,"{""minimum-quantity"":""1"",""path"":""ch7j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:7 (54-55): Product Review eSignal 11.4 by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Product Review eSignal 11.4 by Jayanthi Gopalakrishnan
IN March 2012, eSignal released version 11.4, which includes some notable new features as well as some enhancements. In the previous two parts of this series, I discussed some of the more popular features of eSignal 11 such as charting, designing trading systems, and backtesting. Once you have figured out how to create your trading systems, setups, and strategies, you need an alert system in place. In this, the final part of this series, I will discuss eSignal’s alert system, plus a few other features that traders would find interesting.
ALERTS
One feature I did not mention in the previous two parts is the Alerts feature. Although it isn’t entirely new, it does have some improvements. In version 11.4, you can place alerts on all the built-in studies as well as Advanced GET studies. I just looked at the built-in studies for this review.
There are various options when it comes to setting alerts, and the nice thing is you can create them directly from the charts. You can either have the alerts displayed as a popup, such as what you see in Figure 1, or as an audible alert or get a message via email. Setting them is extremely simple, and they can be set on each indicator or drawing tool you have on your chart. For example, if you have Bollinger Bands overlaid on your price chart and you want to be alerted when prices cross either the upper band or lower band, all you have to do is highlight the indicator, right-click on the chart, and select Edit from the dropdown menu.
The Edit Chart window has two tabs, one of which is for setting alerts (Figure 2). You can select which indicator or tool you want to set the alert on. In the case of the Bollinger Band, you have the option of being alerted when price crosses the upper Bollinger Band, the basis line, or the lower Bollinger Band."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-54-55-product-review-esignal-11-4-by-jayanthi-gopalakrishnan-21.gif"",""height"":""633"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-54-55-product-review-esignal-11-4-by-jayanthi-gopalakrishnan-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-54-55-product-review-esignal-11-4-by-jayanthi-gopalakrishnan-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov30564tr,d,"{""minimum-quantity"":""1"",""path"":""ch7j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:7 (56-59, 64): Trading Ticket: iShares Country ETFs by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Trading Ticket: iShares Country ETFs by Jayanthi Gopalakrishnan
Select Sector SPDRs
• Financial Select Sector SPDR (XLF)\n• Consumer Discretionary SPDR (XLY)
We have seen our fair share of volatile markets over the past few years. Just when we thought the markets were gearing up for a nice rally, the economic problems in the eurozone sent them back to that same volatile behavior. Even though in times of economic crisis all sectors tend to follow the broader markets, there are some such as consumer staples, health care, and utilities that are considered safe havens. Then, just as the markets start to recover, sectors such as financials, consumer discretionary, and industrials tend to outperform.
In Giorgos E. Siligardos’ article this issue, “Applying The Sector Rotation Model,” the author states that the outperformance of energy, consumer staples, health care, and utilities warn of possible trouble in the broader markets, whereas the outperformance of financials and consumer discretionary sectors indicate a stock market flush.
In addition, Siligardos also suggests two sites where you can keep track of the performance of the various sectors. Let us take a look at these as our first step in analyzing sectors. The sector charts available at StockCharts.com (see end of this article) gives you a picture of the various Select Sector SPDRs. I chose the charts of the five sectors mentioned in the article using the Select Sector SPDR funds, XLF, XLY, XLE, XLP, and XLU."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-56-59-64-trading-ticket-ishares-country-etfs-by-jayanthi-gopalakrishnan-21.gif"",""height"":""618"",""width"":""426""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-56-59-64-trading-ticket-ishares-country-etfs-by-jayanthi-gopalakrishnan-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-56-59-64-trading-ticket-ishares-country-etfs-by-jayanthi-gopalakrishnan-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov306prre,d,"{""minimum-quantity"":""1"",""path"":""ch7j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:7 (60-64): Product Review: TradeStation 9.1: OptionStation Pro"",""caption-linebreaks"":""Product Review: TradeStation 9.1: OptionStation Pro
OptionStation Pro is TradeStation’s latest entry into the area of option analysis. It is a robust set of software that shows attention to detail and gives the option trader tools that are extremely useful. It is the brainchild of TradeStation option product manager Roy Radziszewski (who was also an S&C interview subject in 2011), who has had the benefit of teaching options and zeroing in on areas that typically stump option students or are at least difficult to visualize. Partnering with Radziszewski is a team of talented engineers and testers, who have created a powerful option tool.
OptionStation Pro is easy to find. It is one of the icons on the left side of your window when you first open TradeStation 9.1. It is only available on that version, and in the future, TradeStation will be phasing out OptionStation Search and possibly OptionStation Analysis, which you will find in 9.1 and earlier.
OPTION CHAINS
After typing the underlying of your choice in the top left, you are shown the option chains for the underlying (Figure\n1). This is where you’ll first see the attention that Radziszewski has given to the details. For the second entry you see “May 11, 12 (100) Amer Weekly 6d 20h 22m left.” Translation: this option contract expires on May 11, 2012. It is an American option, as opposed to a European option (which can only be exercised on the day of expiration); it is a weekly option, and most weekly options actually last eight days (available to buy/short on Thursday and expiring on the following Friday). One example of an exception is the Russell index, which lasts seven days (Thursday through the following Thursday)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-60-64-product-review-tradestation-9-1-optionstation-pro-21.gif"",""height"":""633"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-60-64-product-review-tradestation-9-1-optionstation-pro-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-60-64-product-review-tradestation-9-1-optionstation-pro-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov306trti5,d,"{""minimum-quantity"":""1"",""path"":""ch7j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:7 (65-70): Traders' Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders' Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Sylvain Vervoort’s article in this issue, “Long-Term Trading Using Exchange Traded Funds.”
Code for MetaStock is already provided in Vervoort’s article. Subscribers will find that code at the Subscriber Area of our website, www.Traders.com. (Click on “Article Code” from our homepage.) Presented here is an overview of possible implementations for other software.
Traders’ Tips are provided to help the reader implement a selected technique from an article in this issue. The entries are contributed by various software developers or programmers for software that is capable of customization.
Readers will find all the code listings that accompany the following Traders’ Tips at our website, Traders.com. Provided here is some discussion of the technique’s implementation by the Traders’ Tips contributors as well as some example charts.
To locate Traders’ Tips at our website, use our site’s search engine, or click on the Traders’ Tips link from our home page. For past Traders’ Tips, click on the “Archive” button in the S&C Magazine box in the middle of our home page, then click on a Traders’ Tips topic of interest, or click on a different year to see more choices."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-65-70-traders-tips-by-technical-analysis-inc-21.gif"",""height"":""622"",""width"":""439""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-65-70-traders-tips-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-65-70-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov307bofo6,d,"{""minimum-quantity"":""1"",""path"":""ch7j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:7 (73): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
4 Keys To Profitable Forex Trend Trading: Unlocking The Profit Potential Of Trending Currency Pairs
Bloomberg Visual Guide To Candlestick Charting
The Financial Spread Betting Handbook, 2nd Ed.
In Gold We Trust? The Future Of Money In An Age Of Uncertainty
High Performance Trading: 35 Practical Strategies And Techniques To Enhance Your Trading Psychology And Performance
The Post-Reform Guide To Derivatives And Futures"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-73-books-for-traders-by-technical-analysis-inc-21.gif"",""height"":""622"",""width"":""439""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-73-books-for-traders-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-73-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov30864le,d,"{""minimum-quantity"":""1"",""path"":""ch7j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:7 (8, 64): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
CHOPPINESS INDEX CODE FOR THINKORSWIM
Editor,
I was going through the May 2012 article on the choppiness index (“Fractal Energies” by Doc Severson) and the code given for thinkorswim. I have copied & pasted the code from the article, but it’s giving me an error at the following line:
#Plot1(100 * Log(Summation (TrueRange,Len) / (Highest(C[1],Len)\n- Lowest(C[1],Len)) / Log(Len)), \""CI2\"");
Can you help?\nJohn Parbhu
Author Doc Severson replies:
That instruction needs to be on one line for it to work correctly.
If you format that line of code so that it is entered in thinkorswim as one line, it will work fine. I will show the code listing again here, with the command in question highlighted in red, but keep in mind it is difficult to show the code listing correctly on the printed page with the formatting and line breaks that the printed page imposes.
# { CI: Choppiness Index }\ndeclare lower;
# Inputs: Len(13);\ninput Len = 14;\ninput CIx = {default CI3, CI2};
#Plot1(100 * Log(Summation(TrueRange,Len)/(Highest(C[1],Len) - Lowest(C[1],Len))/Log(Len)), \""CI2\"");\ndef CI2 = 100 * log( Sum( TrueRange(high,close,low),Len)\n) / ( Highest(close[1],Len) - Lowest(close[1],Len))\n/ log(Len);
def CI3 = ( ( log(Sum(TrueRange(high,close,low),Len) /\n(\nHighest(if high >= close[1] then high else\nclose[1],Len) -\nLowest( if low <= close[1] then low else close[1],Len)\n)\n) / log(10)\n) / (log(Len)/log(10))\n) * 100;
plot CI = if CIx == CIx.CI3 then CI3 else CI2;\nCI.AssignValueColor( Color.Blue);
# Plot2(60,\""60Li\"");\nplot line60 = 60;\nline60.AssignValueColor(Color.DARK_GREEN);
# Plot3(35,\""35Li\"");\nplot line35 = 35;\nline35.AssignValueColor(Color.BLACK);
Editor: Subscribers will find this code listing at the Subscriber’s Area of our website."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-8-64-letters-to-s-c-by-technical-analysis-inc-21.gif"",""height"":""616"",""width"":""423""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-8-64-letters-to-s-c-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-8-64-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov30876at,d,"{""minimum-quantity"":""1"",""path"":""ch7j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:7 (82, 76-81): At The Close by Barry D. Moore"",""caption-linebreaks"":""At The Close by Barry D. Moore
It may seem like it’s too good to be true, but it is common sense and it is simple. What is it?
Sidestepping The Next Crash
THE biggest fear that financial market participants have is the threat of losing their money in a crash. With that in mind, I decided to write about a system that will help people deal with this concern and allow them to sleep at night.
The stock market crash detector, is made up of two signals, the shock event warning and the bear market signal. The bear market signal will help you spot a market crash just as it begins so you may exit the market with only a minor loss. The shock event warning allows you to see abnormal changes in stock market prices, so you may need to prepare for a crash. I will also show you a simple way to implement the system.
THE STOCK MARKET CRASH DETECTOR
During volatile times when no one knows which way the market is going to turn, it becomes increasingly important to formulate your approach. If the market crashes, it does not really matter what stocks you have bought, because they will get dragged down too. Wouldn’t it be nice if you had some sort of early warning system to let you know that there may be a serious crash on the way?
I have spent some time developing a system that will warn me when a potential crash is coming and when there will be a shock in the market (usually a precursor to a crash). I have backtested the system over the past 20 years and found it to work very well. I developed this system using Worden Brothers’ Stock Finder. Using three different indicators, I can spot the conditions that lead to a large stock market crash."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-82-76-81-at-the-close-by-barry-d-moore-21.gif"",""height"":""629"",""width"":""467""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-82-76-81-at-the-close-by-barry-d-moore-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-7-82-76-81-at-the-close-by-barry-d-moore-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov301apse,d,"{""minimum-quantity"":""1"",""path"":""ch8a208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:8 (10-20): Applying The Sector Rotation Model by Girogos E Siligardos PhD"",""caption-linebreaks"":""Applying The Sector Rotation Model by Girogos E Siligardos PhD
\nTwo simple tools can help you incorporate the macro perspectives of the stock market in your technical analysis: the sector rotation model and the yield curve. Both are based on macro fundamentals, both have a technical application, and both have signals that usually precede major market reversals and highlight signals from classic technical analysis. In this article I will explain the logic of the first, the sector rotation model, and present a simple indicator to monitor its waves.
A market sector is a group of companies conducting similar types of business, and a sector rotation model (SRM) is a paradigm that describes which sectors are expected to be the most active during various periods of the economic cycle. Since business activity for the companies translates to more revenue, an SRM has implications in the profitability of sectors. Thus, an SRM could be used to find the top-performing sectors in the stock market. While there is no common acceptance of an SRM, all variations have minor differences so they come under the same name: the sector rotation model.
In this article I will first outline the necessary macroeconomic concepts that will help explain the logic and the basic parts of the SRM. Then I will introduce an indicator based on the SRM that can strengthen long-term technical analysis signals for the stock market.
NOT ALWAYS THE ROOT OF EVIL
For the companies to make money, they must sell goods or services. As long as there is sufficient money in the marketplace and no fear of disasters, people can consume and companies can sell.
Moreover, since banks conduct business by borrowing and lending, they are more willing to lend with lower interest when they have excess money. So when there is plenty of money around, people and companies borrow money from the banks to satisfy their needs and make investments. Investments create jobs, which provide salaries and further boost economic activity.
While money is not a precondition for people to prosper, history and common sense teaches us that its use as a medium of exchange facilitates economic activity in free economies by encouraging borrowing and lending.\nThere are therefore two necessary conditions for the activation and sustainability of economic activity and, as expected, uptrends in the stock market: sufficiently available money and movement of money."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-10-20-applying-the-sector-rotation-model-by-girogos-e-siligardos-phd-21.gif"",""height"":""620"",""width"":""435""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-10-20-applying-the-sector-rotation-model-by-girogos-e-siligardos-phd-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-10-20-applying-the-sector-rotation-model-by-girogos-e-siligardos-phd-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov302usfo,d,"{""minimum-quantity"":""1"",""path"":""ch8a208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:8 (22-30): Using Four Levels Of Risk Strategy by Oscar G. Cagigas"",""caption-linebreaks"":""Using Four Levels Of Risk Strategy by Oscar G. Cagigas
Here’s a modification to the fixed rate strategy that makes it not so fixed. This variation looks at four levels of risk and uses the one most appropriate to current market characteristics.
Editor’s note: Due to space considerations, some figures in this article are shown only at our website, Traders.com, as designated by the reference “online figure x” here.
One of the simplest and more efficient money management strategies is the fixed risk concept, when you choose a percentage of available capital on the next trade. It is a very effective strategy in that it is based on increasing the amount of money risked in the next trade when you have more capital, thanks to the profits of previous trades. It also works well on the downside, risking less when you have less. This is referred to as an antimartingale strategy.\nHere’s an antimartingale that works with a faster response. It is similar to an optimal f strategy that looks at a few previous trades and updates the risk for the coming trades. I define four levels of risk and use the most appropriate for the current market situation.
THE MARGIN LIMITIATION
Most money management strategies stem from the world of financial derivatives. Strategies that work in futures or other derivatives don’t have to work in stocks because of the margin limitation. The biggest leverage usually available to trade stocks overnight is 2:1. That means that you will not be able to risk the optimal amount of money, since you are limited by the stock price.
Suppose you want to trade MasterCard (MA) after a pullback, with an entry price of $360 on December 14, 2011 (see Figure 1). The stop-loss is placed below the previous low ($340). The risk is $20 per share. Assume that you have $10,000 of trading capital and the optimal risk that your trading system indicates is 0.30, or 30%. Thus, you should risk $3,000, which means you buy 3,000/20 = 150 shares of MA.
But 150 shares of MasterCard at the current price of $360 requires an investment of $54,000, which is far more than the $10,000 you have available. So it is impossible to risk 30% of your capital. Based on available capital, the maximum number of shares you can buy is 27. If you trade the maximum, then the risk is 27 x 20 = $540, or 5.4% of your capital. This is why optimal f strategies are difficult to implement when trading stocks because of the margin limitations.
In general, you will not be able to risk more than 20% of your trading capital, depending on the price of the stock. Because of this I will establish 20% as the maximum risk.\nThe four-levels strategy is money management designed specifically for stocks. It changes the risk depending on previous results. The four-levels strategy is a powerful tool that adapts to the needs of the trading system in terms of optimal risk."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-22-30-using-four-levels-of-risk-strategy-by-oscar-g-cagigas-21.gif"",""height"":""764"",""width"":""550""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-22-30-using-four-levels-of-risk-strategy-by-oscar-g-cagigas-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-22-30-using-four-levels-of-risk-strategy-by-oscar-g-cagigas-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov303latr,d,"{""minimum-quantity"":""1"",""path"":""ch8a208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:8 (32-35): The Last-Hour Trading Techniques by Ashwani Gujral"",""caption-linebreaks"":""The Last-Hour Trading Techniques by Ashwani Gujral
This trading strategy can be used to enter the market in the last hour of the trading day and exit in the first hour of the next.
They say 95% of daytraders lose money, but that’s not the case anymore if you are operating in the right time zone of the day and in the right stocks. In fact, it is possible to daytrade the markets with 80% accuracy. The overall volatility of markets seems to be increasing every year, so the more time spent in markets leads to greater risks being taken. It has now become possible to slice the trading day into the most active and profitable time periods and least profitable and active time periods.
The AG last-hour technique is a “Buy today, sell tomorrow” or “Sell today, buy tomorrow” daytrading strategy. This can be used for entry in the last hour of the trading day and exiting in the first hour of the next trading day.\nI have conducted real-time backtesting of the strategy in the last year. The strategy has a documented backtesting accuracy within given parameters of about 80% odds of getting 2% or better on a daily basis. The beauty of this strategy is that you always have a play for the day, and you do not have to watch a quote screen all day.
WHAT'S SO SPECIAL ABOUT IT?
The first and last hours of any trading day are the most active in terms of price and volume. The activity in the last hour happens because most large institutions operate in the post–lunch session. There are also up and down swings during the day, with the market revealing its hand only in the final hour.
The first hour of a trading day is also interesting and active but for a different reason, in that stocks that have closed strong or weak in the previous session tend to open in that direction as well. This happens because technical analysts, newsletter sellers, and retail traders look at daily charts for breakouts. Thus, a strategy can be created where you buy and/or sell with the big institutions and book profits when the rest of the market tries to get on the bandwagon.
The Indian markets open at 9:15 am and close at 3:30 pm local time. So the techniques described here are from that point of view, where the first hour is 9:15–10:15 am and the last hour is 2:30–3:30 pm. These principles can be applied across all markets and time zones."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-32-35-the-last-hour-trading-techniques-by-ashwani-gujral-21.gif"",""height"":""633"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-32-35-the-last-hour-trading-techniques-by-ashwani-gujral-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-32-35-the-last-hour-trading-techniques-by-ashwani-gujral-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov303vosp,d,"{""minimum-quantity"":""1"",""path"":""ch8a208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:8 (36-40): Volume Spike Analysis by Vince Knott, CMT, CAIA"",""caption-linebreaks"":""Volume Spike Analysis by Vince Knott, CMT, CAIA
Just about every trader uses volume. How can you use it?
There are many ways to use technical analysis to generate profitable trades with enticing risk/reward ratios. However, the sellers of technical analysis–based products often exaggerate the power of simple technical tools. To succeed as a trader, you must not only apply your methods properly but also use your technical tools in a different way than others do. In this article, you will discover a new method for analyzing volume and how it can be applied to a trading strategy to be used on multiple time frames.
VOLUME
Volume is one of the most important tools in trading. Every type of market participant, whether trader or investor, uses volume. Volume shows how many shares of a stock have been traded in a given period of time. Price bars with high volume are more informative than those with low volume. Many patterns emerge out of volume bars, and many technical tools are also derived from volume.
One important factor in generating a good risk/reward ratio is trading the right stocks. You want to trade stocks that are active. It is generally accepted amid technicians that an increase in volume leads to an increase in volatility.
Filtering your stocks to trade only the ones with a recent increase in volume will help you find better trading candidates. Finding stocks that are about to make large moves is at the essence of a great risk/reward ratio. Once you have found the proper stocks, how do you use volume to evaluate your entries? Let’s go over some of the ways traders deal with volume analysis:
Technically derived volume indicators: One of the more popular ways of looking at volume is through technically derived volume indicators. A popular one is the on-balance volume (OBV). OBV is a running total of positive and negative volume. You can judge whether volume is flowing into or out of a stock. This indicator appears on your chart in a similar way as the relative strength index (RSI). You can see an example of the OBV applied to a price chart of Intuitive Surgical Inc. (ISRG) in Figure 1. One way that traders use OBV is to identify divergences and anticipate reversals. A downfall of this indicator is that large volume spikes can throw off the indicator in the near term."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-36-40-volume-spike-analysis-by-vince-knott-cmt-caia-21.gif"",""height"":""636"",""width"":""459""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-36-40-volume-spike-analysis-by-vince-knott-cmt-caia-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-36-40-volume-spike-analysis-by-vince-knott-cmt-caia-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov304exyo2,d,"{""minimum-quantity"":""1"",""path"":""ch8a208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:8 (41): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
CONVERTING PROFITS?
I’ve heard professional option traders use a spread called a “conversion” to establish risk-free positions. Is this true? And if so, why don’t we hear more about these strategies, or is this something the larger players don’t want us to know about?\nWhile there may be some situations out there that merit consideration, the establishment of conversions, or the other side of the trade, the reversal, aren’t prime suspects. These spreads aren’t risk-free positions, as much as they are nondirectional arbitrage strategies.\nWith a conversion or reversal, synthetic stock is built using same-month, same-strike calls and puts that are executed as a hedge against a stock position of the same ratio size. In the case of the conversion, the trader has bought a 1-to-1 ratio of long stock and synthetic short stock using a short call and long put. To establish the reversal, the position would maintain short stock, a short put, and long call."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-41-explore-your-options-by-tom-gentile-21.gif"",""height"":""617"",""width"":""424""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-41-explore-your-options-by-tom-gentile-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-41-explore-your-options-by-tom-gentile-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov304tedo,d,"{""minimum-quantity"":""1"",""path"":""ch8a208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:8 (42-45): Testing Dollar Cost Averaging by Daryl Guppy"",""caption-linebreaks"":""Testing Dollar Cost Averaging by Daryl Guppy
Passive investment strategies such as dollar cost averaging are back in fashion, but do they deliver as promised?
The flood of capital into exchange traded funds (ETFs) reflects a disillusionment with fund managers and investment funds. It also reflects a growing feeling that the market has become too difficult to trade. Passive investment strategies such as dollar cost averaging are back in fashion as an antidote to volatility. But do they deliver as promised?
Dollar cost averaging (DCA) is an investment strategy frequently recommended by fund managers. It encourages people to add the same amount of cash each month to a portfolio, a fund, or an individual stock. By doing so, the investor is supposed to overcome the difficulties of timing the market. In good times his cash buys less, and in bad times it buys more. The dollar cost of each purchase averages out.
Many claims are made for DCA. Some of these claims of outperformance are based on activities that are not dollar cost averaging, however. DCA theory requires the investor to allocate the same amount of cash on a regular basis at a consistent time interval. Its primary purpose is to avoid the need for market timing and asset allocation — picking the best sectors. DCA is not:
Comparing the returns from entry at the worst point and the highest point in the year
Rebalancing a portfolio on a regular basis to drop losers and pick winners.
Dollar cost averaging is critically dependent upon the time you start the process. DCA is sensitive to the time you enter the market on a regular basis. The results can be substantially different, particularly over the 10- and 20-year longer time frames typically advocated by DCA investors. Several key claims are made, among which are that DCA is independent of market timing so results are much the same no matter what time the market is entered, and that it delivers at least market performance. We are making certain assumptions, which are:
The investor adds a $10,000 position once every quarter over a 20-year period, most recently ended December 2011. Sound unfair? Try telling that to people who used this method over the past 20 years and who are now approaching retirement and wondering why the results are lackluster. We also test this for the first 10 years, the last 10 years, and the last 15 years.
Entry is based on the opening price for the period.
The Dow Jones Industrial Average (DJIA) is used as the investment instrument.
This is raw return, not an accumulation return. All investors during this period would receive essentially the same level of dividends so we eliminate this for the ease of calculation."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-42-45-testing-dollar-cost-averaging-by-daryl-guppy-21.gif"",""height"":""628"",""width"":""463""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-42-45-testing-dollar-cost-averaging-by-daryl-guppy-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-42-45-testing-dollar-cost-averaging-by-daryl-guppy-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov304inda1,d,"{""minimum-quantity"":""1"",""path"":""ch8a208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:8 (46-50): Interview David Stendahl And Position Sizing by Jayanthi Gopalakrishnan and Bruce Faber"",""caption-linebreaks"":""Interview David Stendahl And Position Sizing by Jayanthi Gopalakrishnan and Bruce Faber
David Stendahl is the portfolio manager at Capitalogix, a Commodity Trading Advisor (CTA) firm specializing in systematic trading. He is also a leading industry expert, author, and speaker focused on the managed futures industry. Stendahl has lectured at numerous national and international conferences and written on system evaluation and money management techniques. He is also the author of Profit Strategies: Unlocking Trading Performance With Money Management and the coauthor of two additional books, Dynamic Trading Indicators and Computerized Trading. His trading expertise has been featured in a number of educational videos, including The Systematic Trader. He also cocreated various performance analysis software packages, including Performance Summary Plus (now incorporated into TradeStation), Portfolio Evaluator, and Money Manager.
Stocks & Commodities Editor Jayanthi Gopalakrishnan and Staff Writer Bruce Faber spoke with David Stendahl on June 7, 2012.
DAVE, how did you get interested in technical analysis?
As a kid, I was interested in the stock market, but it wasn’t until I became a stockbroker that I started taking things more seriously. Then I began to examine technical analysis. I discovered I liked to design trading systems, but to analyze and design them, I knew I needed better tools. Eventually, I cofounded a software company called Rina Systems. We ended up creating a number of tools such as the Performance Summary Plus, Portfolio Evaluator, and Money Manager, each of which are now part of TradeStation.
After that, I started a career on the trading side. I am now with Capitalogix, where we are forming a fund. It is all systematic, which is how I like to trade. We are looking at new ways of designing systems and how to construct portfolios.
You have done a lot of work with money management. How did that come about?
I realized that with trading systems, there was money to be made, but the real money was in how you manipulated the buys and sells.
In addition, the real money could also be found in the use of position sizing, finding ways in which you can increase/decrease position size, number of contracts, or leverage to maximize your ability to make as much money as you can, given whatever buy and sells were presented.
How do you go about determining position size?
That is a complicated question. I view the markets now in terms of baskets. You could think of them as mini-portfolios combined into a larger one. In certain instances we use a fixed fractional with an average true range (ATR) formula (see sidebar, “Position Sizing Terms”) that looked at when a position was on, how much downside risk it had, how many positions you want, and how much capital you have for that individual portfolio.
In other instances, we use a basket concept where we have a lot of systems similar to one another each with an equal weighting within that basket. We then trade the basket taking positions once certain ratio levels are triggered. We call them “ratio levels” because we are looking for certain ratios of systems to trigger before we execute our position.
The position sizing is in how you combine those baskets using portfolio allocation. Basically, you are giving a weighting to that individual basket. The way I implemented money management was simple, but I have taken things further and extended them to understanding what mini-portfolios/baskets are all about, and what kind of a strategy or position sizing, money management, and formula you want to apply to it.
"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-46-50-interview-david-stendahl-and-position-sizing-by-jayanthi-gopalakrishnan-and-bruce-faber-21.gif"",""height"":""632"",""width"":""484""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-46-50-interview-david-stendahl-and-position-sizing-by-jayanthi-gopalakrishnan-and-bruce-faber-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-46-50-interview-david-stendahl-and-position-sizing-by-jayanthi-gopalakrishnan-and-bruce-faber-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305prre6,d,"{""minimum-quantity"":""1"",""path"":""ch8a208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:8 (52-54): Product Review: ActiveTick.com by Donald Pendergast"",""caption-linebreaks"":""Product Review: ActiveTick.com by Donald Pendergast
ActiveTick is one of the newer up-and-coming challengers to the market data/charting/automated trading niche. The product appears to be well thought out and offers many useful features that will appeal to a variety of budget-conscious stock and forex traders (intraday, swing, and position) — things like advanced charting with real-time data direct from the exchanges; integrated trading via TD Ameritrade, FXCM, and Gain Capital Forex; programmable indicators; trading strategies and backtesting; and more. Here’s an overview of the main features.
FEATURES
ActiveTick (AT) makes much of the fact that the data they deliver is ultra-low latency, delivered directly from the exchanges. In running the software side by side with TradeStation 9.0, it appears that this is not an exaggeration. The basic demo version of the software provided US stock data without issue or delay. Quote screens can be easily modified with the column headers that are most useful to a given trader and the color/fonts of the screens can also be changed around to suit a user’s preference, too. There is no limit to the number of streaming quotes that can be added to a quotes list; more than 250 preinstalled symbol lists arrive with the platform, making it easier to organize trading activities by index, sector, and industry groups — a nice feature for traders who watch for market rotation action.
Individual quotes can be called up for any given ticker, providing a snapshot look at key price data fields. There is also a time and sales view. AT also offers a Microsoft Excel add-in to enable users to handle serious number-crunching tasks directly from the AT feed. You can also download tick data and bar data that can be requested via an easy GUI and analyzed for patterns. An interesting feature is the “quick quote designer,” which enables a user to custom design a specific quote layout for a given ticker symbol, with dozens of different market data inputs from which to choose.
AT also features an easy-to-use heatmap feature (Figure 1), similar to ones you may have used at Fidelity and other major brokerage firms. This also offers a way to analyze the market’s stock components from a market cap or equal weight vantage and provides predefined sector and industry group components. Want to see how the individual component stocks of the gold industry group are faring? Just a few right-clicks on the heatmap screen will bring up the daily map of all the significant gold players, ranging from Barrick Gold Corp. (ABX) to Exeter Resource Corp. (XRA). It’s a cool tool, indeed."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-52-54-product-review-activetick-com-by-donald-pendergast-21.gif"",""height"":""633"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-52-54-product-review-activetick-com-by-donald-pendergast-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-52-54-product-review-activetick-com-by-donald-pendergast-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305fufo,d,"{""minimum-quantity"":""1"",""path"":""ch8a208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:8 (55): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
TRADE, YA BUM!
I’m interested in becoming a professional trader. Can you provide any advice?
Those looking to make a career out of trading for others are facing multiple obstacles. For starters, managing money for others, especially if done on leverage, is a thankless job. When things are good, your clients will always be wondering why they aren’t better, and when things are bad...well, you get the idea. Warren Buffett once described it this way: The stock market is a no-called-strike game. You don’t have to swing at everything — you can wait for your pitch. The problem when you’re a money manager is that your fans keep yelling, “Swing, ya bum!”
Aside from the obvious struggles mentioned, actually breaking into the industry can be a daunting task. Many assume that there are millions (billions!) of dollars just waiting to be traded by anyone who feels up to the task, but the truth is, traders must prove themselves first, and this can be challenging. For instance, showing profitable trades in a demo account is a waste of time because there aren’t any emotions involved in winning or losing Monopoly money. Accordingly, it won’t get anybody’s attention."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-55-futures-for-you-by-carley-garner-21.gif"",""height"":""618"",""width"":""426""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-55-futures-for-you-by-carley-garner-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-55-futures-for-you-by-carley-garner-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305prre7,d,"{""minimum-quantity"":""1"",""path"":""ch8a208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:8 (56-61): Product Review: Trading Blox by Technical Analysis, Inc."",""caption-linebreaks"":""Product Review: Trading Blox by Technical Analysis, Inc.
Trading Blox is software you install on your PC to perform backtesting across selected portfolios using different money management schemes and trading systems. The mission for Trading Blox is to provide all of the flexibility needed by money managers, and as such more than 50% of Trading Blox’s clients are corporations with staff who have the ability to program new schemes if needed.
Trading Blox is available in three versions to fit your skill level and needs. If you’re looking for a way to trade portfolios using the Turtle strategy with Turtle money management, N-based unit sizing, and so on, Trading Blox would be your choice and no programming is needed. If you want more than Turtle, Trading Blox Pro might be your choice with 10 trading systems, which include money management schemes and the ability to trade futures and stocks simultaneously in different portfolios, to name just a few features. Again, no programming is needed.\nFinally, Trading Blox Builder gives you all of the capability of Pro but adds the ability to write scripts using a Visual Basic–like language. Using Builder’s script language, you can create dynamic system allocation (shift between trading systems using an algorithm you have programmed), dynamic start/end dates, and customizable results filtering.
COMPLETE SYSTEM TRADING
Let’s discuss the breakout approach. The theory can be explained by examining two different price patterns. Looking at Figure 1, you see two price movements depicted. Price movement 1 shows prices rising from point A. During the move up, traders come in anticipating a reversal and start shorting the call at point B. They would be ready to abandon their positions if prices broke out above point C. In the early 1980s, the time span between points A and C that worked best was 20 days. For price movement 2, however, those who shorted at point B are making a profit, while those who bought at point A are still seeking one."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-56-61-product-review-trading-blox-by-technical-analysis-inc-21.gif"",""height"":""633"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-56-61-product-review-trading-blox-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-56-61-product-review-trading-blox-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov306qaby,d,"{""minimum-quantity"":""1"",""path"":""ch8a208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:8 (62): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
WHAT ABOUT REBATES?
I’m reading around these forums, and apparently you can get rebates for providing liquidity. What is this, how do you do it, and how much is it (rate, I guess)? — ZapCoffee
Mr. Bright, on one of your webinars, I heard you speak about order routing in your firm. You spoke about rebates from exchanges and electronic communications networks (ECNs). Is my broker getting paid for my orders as well? Can you go into more detail about this rebate trading, and how it may affect the average retail trader? How is your firm different from retail in this regard? —noobtrader
A couple of good questions. Things are constantly changing in the world of both retail and professional trading relating to routing and rebates. Historically, firms and traders are paid to “provide” liquidity, which means placing your limit orders and waiting for someone else to either hit the bid or take your offer. We now have “inverse payment” ECNs that actually pay us for “taking” liquidity."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-62-q-a-by-don-bright-21.gif"",""height"":""618"",""width"":""426""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-62-q-a-by-don-bright-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-62-q-a-by-don-bright-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov3067679,d,"{""minimum-quantity"":""1"",""path"":""ch8a208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:8 (63-67, 76-77, 79): Traders' Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders' Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Giorgos Siligardos’ article in this issue, “Applying The Sector Rotation Model.”
Code for MetaStock is already provided in Siligardos’s article. Subscribers will find that code at the Subscriber Area of our website, www.Traders.com. (Click on “Article Code” from our homepage.) Presented here is an overview of possible implementations for other software.
Traders’ Tips are provided to help the reader implement a selected technique from an article in this issue. The entries are contributed by various software developers or programmers for software that is capable of customization.
Readers will find all the code listings that accompany the following Traders’ Tips at our website, Traders.com. Provided here is some discussion of the technique’s implementation by the Traders’ Tips contributors as well as some example charts.
To locate Traders’ Tips at our website, use our site’s search engine, or click on the Traders’ Tips link from our home page. For past Traders’ Tips, click on the “Archive” button in the S&C Magazine box in the middle of our home page, then click on a Traders’ Tips topic of interest, or click on a different year to see more choices."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-63-67-76-77-79-traders-tips-by-technical-analysis-inc-21.gif"",""height"":""615"",""width"":""414""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-63-67-76-77-79-traders-tips-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-63-67-76-77-79-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov306trti6,d,"{""minimum-quantity"":""1"",""path"":""ch8a208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:8 (68-70): Trading Ticket by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Trading Ticket by Jayanthi Gopalakrishnan
SELECT SECTOR SPDRs
• Financial Select Sector SPDR (XLF)
• Consumer Discretionary SPDR (XLY)
We have seen our fair share of volatile markets over the past few years. Just when we thought the markets were gearing up for a nice rally, the economic problems in the eurozone sent them back to that same volatile behavior. Even though in times of economic crisis all sectors tend to follow the broader markets, there are some such as consumer staples, health care, and utilities that are considered safe havens. Then, just as the markets start to recover, sectors such as financials, consumer discretionary, and industrials tend to outperform.
In Giorgos E. Siligardos’ article this issue, “Applying The Sector Rotation Model,” the author states that the outperformance of energy, consumer staples, health care, and utilities warn of possible trouble in the broader markets, whereas the outperformance of financials and consumer discretionary sectors indicate a stock market flush."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-68-70-trading-ticket-by-jayanthi-gopalakrishnan-21.gif"",""height"":""617"",""width"":""423""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-68-70-trading-ticket-by-jayanthi-gopalakrishnan-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-68-70-trading-ticket-by-jayanthi-gopalakrishnan-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov307bofo7,d,"{""minimum-quantity"":""1"",""path"":""ch8a208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:8 (73): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new book offerings."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-73-books-for-traders-by-technical-analysis-inc-21.gif"",""height"":""614"",""width"":""413""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-73-books-for-traders-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-73-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov308leto3,d,"{""minimum-quantity"":""1"",""path"":""ch8a208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:8 (8): Letters to S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters to S&C by Technical Analysis, Inc.
LOGGING INTO ONLINE ISSUE
Editor,
How do I get into the online magazine?
Tim Clark
You can download the monthly full-issue PDF by clicking on “Digital Edition [enter now]” from our homepage, then clicking on the issue to be downloaded. (As these are large files, the downloading could take a few minutes.) We offer only the past 12 issues for download. These PDF files are digital versions of the full printed issue.
You can access individual articles by issue as PDF files by clicking on “Complete Archive [enter now]” from our homepage, then clicking on the year & issue of interest, then clicking on “Download article.” The PDF file will download as an individual article. These files are relatively small and thus should download quickly.
To log into the Subscriber Area of our website, Traders.com, click on any area for which a subscription is required (that is, the top half of our home page), or go to http://technical.traders.com/sub/sublogin.asp. Where prompted, input your last name (or company name as appropriate) and subscriber number. Your subscriber number can be found on the left top line of your magazine’s mailing label (detailed instructions and diagram are provided at the login prompt) or on any statement or renewal notice.
If login fails to work, it is most likely a cookie issue. Make sure your browser can accept cookies from our site and that any browser add-ons you use aren’t preventing cookie-writing.
Not only can subscribers download the latest digital edition or individual articles from our 30-year archive, but they can also access all of the articles published in our two online publications, Traders.com Advantage and Working Money, and can download spreadsheets and programming code that has been featured in current or past issues.
—Editor"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-8-letters-to-s-c-by-technical-analysis-inc-21.gif"",""height"":""618"",""width"":""423""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-8-letters-to-s-c-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-8-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov30881at2,d,"{""minimum-quantity"":""1"",""path"":""ch8a208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:8 (82, 81): At The Close by Boris Tolmachev"",""caption-linebreaks"":""At The Close by Boris Tolmachev
From Strategy To System
“How in the world do I become a cricket?” the ant asked. Crossly, the owl replied: “I’ve given you the strategy. Surely you can figure out the tactics on your own.”
Traders have different ideas when it comes to the definition of a trading strategy. Most of them believe that strategy is a combination of price indicators and chart patterns. This includes double (triple) bottoms, double (triple) tops, head & shoulders, or various divergences. This includes the existence of filters and a system of signals for opening and closing transactions similar to envelopes, trendlines, and volatility. The best systematic approaches to trading include initial screening methods such as Alexander Elder’s weekly chart or Van K. Tharp’s big picture.
WHAT IS STRATEGY?
In spring 2008, the quantitative aspect of this problem attracted my attention. Intrigued, I asked various traders about the number of strategies they use. As I expected, their answers varied. Mayank Bajaj of India uses one, Elder uses two, and Catherine Shuster uses as many as necessary. I have used as many as six, while E. Berne said about three; Daniel Wiggins replied he used about 40 and Kerry Lovvorn said about 250 that he had researched.
I got the impression the estimates of the number of trading strategies were erratic. Strategies mostly indicated the different combinations of trading rules. For example, Bajaj expected hanging man or hammer candles to be reversal days. Is this a strategy? To me, it is more of a standard tactical position, similar to corner playing in soccer.
This means that participating in the team attack is not necessary. Instead, you can wait for the corner kick by staying conveniently close to the goalposts. As soon as the ball arrives, kick it past the goalkeeper! This is a way to score goals, but it is not a strategy.
A generalization of my observations suggests that what is considered a strategy are decisions at the initial phase where you anticipate the market status in the form of a trading idea. An alternative decision is to stay out of the market. Does this mean that a strategy determines the direction of the trade?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-82-81-at-the-close-by-boris-tolmachev-21.gif"",""height"":""627"",""width"":""459""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-82-81-at-the-close-by-boris-tolmachev-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-8-82-81-at-the-close-by-boris-tolmachev-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov301toco,d,"{""minimum-quantity"":""1"",""path"":""ch9s208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:9 (10-22): To Cover or Not? by Markos Katsanos"",""caption-linebreaks"":""To Cover or Not? by Markos Katsanos
Covered call writing is one of the most popular option strategies, but there is, of course, a catch. This variation will reduce risk and increase profitability and compare it with related call writing strategies.
Covered call writing has been around for a while, and it may be the most commonly used option strategy, as many investors believe that it produces income without the unlimited risk of naked option writing. In this method, the option investor buys the underlying issue and writes (sells) call options on that same stock in order to generate additional income from the option premium. This strategy has lured many investors and even fund managers, but there is a catch, because there is no such thing as free money on Wall Street.
While covered calls can be a great way to generate income in a flat or moderately up market, the risk in today’s highly volatile market should not be overlooked, as the downside protection that covered calls can create is only the amount of premium received.
The notion that you can enhance your income by writing calls against your portfolio is a delusion because it ignores the damage to your underlying stock portfolio. There is an easy way to find the extent of this damage by looking at the performance of one of the covered call exchange traded funds (ETFs) trading on the NYSE. In Figure 1, you can see a chart of the Madison/Claymore Covered Call Fund (MCN) superimposed on the Standard & Poor’s 500. I have also plotted the same ETF adjusted for distributions (in green).
You can see the damage that option writing does to your principal in the unadjusted MCN (in red). It underperformed the S&P 500 since inception and it has not come anywhere close to recovering to its IPO level. In fact, even after taking into account dividends and distributions (in green), it barely broke even during the seven and a half year period (from August 19, 2004, to December 3l, 2011) compared to a 34% total return for the S&P 500.
This is because of the “fat tail” effect: Stock returns are not normally distributed and most of the big returns or fat losses are in the tails of the distribution. By selling covered calls, you are in effect cutting off the upside (right-hand tail of the distribution) while leaving the left-hand tail (downside) intact. You are therefore vulnerable to potentially unlimited losses and only moderate profits.
This became apparent during the 2008 bear market or the sharp correction in the summer of 2011, as the option premium did very little to protect the option traders from the sharp declines in their stocks. This was more evident in Figure 1, where the adjusted MCN (in green) underperformed during the bull markets in 2006–07 and 2010, while the option premium did little to alleviate the 2008 crisis blowup.
Taking a closer look at the risk curve of a covered call (Figure 2), it is evident why this strategy is not as safe as everyone thinks; it actually has the same risk curve as a naked put! In fact, if you compare the two strategies on a return on account basis, the naked put is superior to the covered call as the margin requirement is more favorable.\nThere is a better way to write call options and take advantage of the time decay without exposing yourself to the downside risk."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-10-22-to-cover-or-not-by-markos-katsanos-21.gif"",""height"":""624"",""width"":""445""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-10-22-to-cover-or-not-by-markos-katsanos-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-10-22-to-cover-or-not-by-markos-katsanos-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov302prfr,d,"{""minimum-quantity"":""1"",""path"":""ch9s208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:9 (24-27): Profiting From Protracted Comnsolidations by Azeez Mustapha"",""caption-linebreaks"":""Profiting From Protracted Comnsolidations by Azeez Mustapha
How can a pattern in the USD/JPY indicate what to expect in the EUR/CHF? Find out how you can use it to your advantage.
Most market biases can be summarized by understanding that trading and investing are simple processes and human beings try to make it into something much more complex. In looking at the US dollar/yen (USD/JPY) and the euro/Swiss franc (EUR/CHF) currency pairs, the former had a recent development that could be used as a basis of what was happening in the latter. Here’s something that happened to the USD/JPY and the EUR/CHF, and how it could benefit you.
THE USD/JPY CONSOLIDATION
The dynamics of the markets are a battlefield in which money is transferred from the accounts of novices into those of professionals. On the screen, it may appear not to be a battlefield, since what we see are only candlesticks and bars. During price equilibrium phases, traders open trades and close trades, and the outcomes are not great because the prices are consolidating. Some traders realize minor profits, while others do not realize any.
From October 2011 to January 2012, the USD/JPY pair was in a serious consolidation mode. One market analyst even declared that he would stay out of this market indefinitely. Only short-term traders were able to realize some meaningful gains, not swing or position traders.
As prices change in consolidation modes, there is a tendency to smooth positions prior to reversals. Intraday speculators do not have much time to capitalize on gains. They use the least possible period for trading. As a result, they run losses or decrease their accumulated gains. Intraday speculators would prefer to have opened that kind of position and banked their gains before reversals occurred.
In Figure 1, you can see that two horizontal lines are used to pinpoint where the consolidation on the USD/JPY started and where it ended. On February 14, 2012, the pair broke out of the upper horizontal line and continued moving up on the following day. In fact, this pair moved by more than 500 pips within the following bullish phase before it broke down the lower trendline (you would see two trendlines used to show the bullish trend).
On March 22, 2012, after hesitating for a few days, the pair nosedived, falling more than 500 pips. The currently strong US dollar cannot withstand the stamina of the stronger yen.
These recent moves on the USD/JPY was seen and capitalized upon. Now what about the EUR/CHF?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-24-27-profiting-from-protracted-comnsolidations-by-azeez-mustapha-21.gif"",""height"":""625"",""width"":""449""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-24-27-profiting-from-protracted-comnsolidations-by-azeez-mustapha-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-24-27-profiting-from-protracted-comnsolidations-by-azeez-mustapha-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov302demu,d,"{""minimum-quantity"":""1"",""path"":""ch9s208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:9 (28-31): Developing A Multilevel Strategy by Vladimir Vladimirovich Voznjuk"",""caption-linebreaks"":""Developing A Multilevel Strategy by Vladimir Vladimirovich Voznjuk
Here’s an automated trading strategy that can be used to trade currency pairs.
Multianalysis based on the simultaneous movement of various currency pairs is popular among traders. There are many methods you can use when it comes to this form of analysis. They can be classified based on the number of different trading instruments and the principles of their underlying. For example, if you only use two trading instruments, then two options are possible:
1. The instruments are either moving in one direction (for example, EUR/USD and GBP/USD), in which case the opening and closing of a position occurs when signals occur on the two currencies at the same time such as a simultaneous increase or decrease.
2. The other option is that they are moving in different directions (for example, EUR/USD and USD/JPY), in which case you would be opening and closing positions when they are moving in opposite directions.
Another common strategy involves three instruments, such as the two major currencies and a cross (say, EUR/USD, GBP/USD, and EUR/GBP). As a rule when using multi-instrument strategies, you should open positions for all instruments involved in the analysis simultaneously. This forms a multicurrency hedge. But you can open a position just on one instrument, and use signals with other tools to solely confirm the signal.
ANALYZING CORRLATIONS
I will write a simple group of multi-indicators in NinjaTrader script that will help analyze the correlations between currency pairs. Once you do this, you will be able to create multicurrency strategies.
To do so in NinjaTrader 7, use the wizard to create an empty indicator. Call it multiJPY (since you are looking at a multidirectional movement of EUR/USD and USD/JPY). (For the address of the code referenced here, see the end of this article.)"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-28-31-developing-a-multilevel-strategy-by-vladimir-vladimirovich-voznjuk-21.gif"",""height"":""633"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-28-31-developing-a-multilevel-strategy-by-vladimir-vladimirovich-voznjuk-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-28-31-developing-a-multilevel-strategy-by-vladimir-vladimirovich-voznjuk-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov303busy,d,"{""minimum-quantity"":""1"",""path"":""ch9s208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:9 (32-34): Building Systems For Forex by Joseph James Gelet"",""caption-linebreaks"":""Building Systems For Forex by Joseph James Gelet
When developing designs for forex trading systems, you need to give a lot of thought to the logic involved. Here is a look at the components necessary for a good forex trading system.
AS system developers know, the process of building automated trading systems is complex and filled with biases. A machine is not necessarily a physical mechanical machine. It can be a virtual machine, electrical machine, or in our case, software-based logical trading machine. System trading is the process of building and implementation of algorithm-based systems that execute trades automatically. While many associate this with machine intelligence, only the execution is fully automated.
Many trading systems rely on simple rules and do not fully exploit the possibilities of machine intelligence, considering the recent rapid increase in computing power. By refining the process of building the logic behind trading systems, we can build intelligent systems that not only exploit processing power, but rely less on the skill of developers and traders. Some flaws in building any system are:
• Past performance will not necessarily indicate future performance
• There are so many choices that it becomes difficult to approach devising the logic of a winning system.
LOGIC AS A PARAMETER
Common parameters in automated trading systems may include values such as lot size, time, and indicator levels (such as a Bollinger Band standard deviation). When optimizing systems, traders will backtest, usually resulting in overoptimization, and sometimes use techniques for real-time optimization. Other software includes walk-forward optimization, which is questionably accurate to determine the best parameters."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-32-34-building-systems-for-forex-by-joseph-james-gelet-21.gif"",""height"":""621"",""width"":""438""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-32-34-building-systems-for-forex-by-joseph-james-gelet-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-32-34-building-systems-for-forex-by-joseph-james-gelet-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov303voan,d,"{""minimum-quantity"":""1"",""path"":""ch9s208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:9 (36-44): Volume And Divergence by Gail Mercer"",""caption-linebreaks"":""Volume And Divergence by Gail Mercer
\nHere’s how you can use a divergence between price and volume for trading forex futures or exchange traded funds.
The first time I looked at volume on my charts, I thought there had to be something significant in those bars, but I just could not put my finger on what it was. So to find out, I read books, went to seminars, attended online webinars, and studied all the cutting-edge techniques: the low-volume bars, the high-volume bars, the ultra high-volume bars, the signs of weakness, and the signs of strength. Yet on the live edge of the market, the concepts eluded me.
Instead of trading, I found myself frozen with fear of pulling the trigger because I did not know if there were hidden buyers or sellers behind the bar.
KNOW YOUR BUYERS AND SELLERS
After years of frustration I simply took volume off my charts altogether, realizing I might not ever be able to read those little sticks as others could. In lieu of volume, I opted to simply focus on price with my analysis premise defined around price making higher highs and lows, or lower lows and highs, or in congestion (erratic highs and lows).
As I continued to analyze the markets that way, I revamped my understanding of volume to price with a simplified approach. This new method took my volume analysis to the following two questions: was the close greater than the open (buyers), or was it less than the open (sellers)? That was all I needed to know regarding volume.
Nevertheless, I still had this feeling that volume was important, so I continued to look at it on occasion. Finally, I partnered with the principals of FulcrumTraders.com who specialize in cumulative delta volume analysis (CDVA). CDVA displays what buyers and sellers are doing at a particular moment in a candlestick formation. It allows you to actually see the volume displayed just like a candlestick price chart. For the first time, this new approach made me feel as though I might be able to understand volume.
Although cumulative delta allows a higher level of understanding of the auction process, the technique I was attracted to was the momentum play. I gravitated toward momentum because I understood divergence, and the momentum play was based on divergence. It was also the most visual of their applications, and this made it easier for me to grasp. Finally, I was beginning to see what volume analysis was all about rather than trying to grasp vague volume concepts."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-36-44-volume-and-divergence-by-gail-mercer-21.gif"",""height"":""477"",""width"":""333""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-36-44-volume-and-divergence-by-gail-mercer-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-36-44-volume-and-divergence-by-gail-mercer-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov304inka,d,"{""minimum-quantity"":""1"",""path"":""ch9s208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:9 (46-50): Interview: Kathy Lien of BKForex.com by Jayanthi Gopalakrishnan and Bruce Faber"",""caption-linebreaks"":""Interview: Kathy Lien of BKForex.com by Jayanthi Gopalakrishnan and Bruce Faber
Kathy Lien is managing director of FX Strategy for BK Asset Management and cofounder of BKForex.com. Lien has more than 13 years of experience in the financial markets with a specific focus on G20 currencies. Her career started at JPMorgan Chase, where she worked on the interbank FX trading desk making markets in foreign exchange and later in the cross-markets proprietary trading group where she traded FX spot, options, interest rate derivatives, bonds, equities, and futures. In 2003, she joined FXCM and started DailyFX.com, a leading online foreign exchange research portal. In 2008, Lien joined Global Futures & Forex as director of currency research, where she provided research and analysis to clients and managed a global foreign exchange analysis team.
As an expert on G20 currencies, Lien is often quoted in The Wall Street Journal, Reuters, Bloomberg, and other leading news publications. She also appears regularly on CNBC and on Sky Business. Her extensive experience in developing trading strategies using cross-markets analysis and her edge in predicting economic surprises serve as key components of BK’s analytical techniques.
Stocks & Commodities Editor Jayanthi Gopalakrishnan and Staff Writer Bruce Faber interviewed Kathy Lien on July 12, 2012."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-46-50-interview-kathy-lien-of-bkforex-com-by-jayanthi-gopalakrishnan-and-bruce-faber-21.gif"",""height"":""633"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-46-50-interview-kathy-lien-of-bkforex-com-by-jayanthi-gopalakrishnan-and-bruce-faber-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-46-50-interview-kathy-lien-of-bkforex-com-by-jayanthi-gopalakrishnan-and-bruce-faber-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305exyo2,d,"{""minimum-quantity"":""1"",""path"":""ch9s208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:9 (51): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
MARRIED TO A CALENDAR?
I’ve read about getting into married put and collar positions using short puts. I also realize you can cut down risk if assigned by selling a bull put spread instead. What about using a long put calendar to enter into a married put?
Using a long put calendar or time spread can certainly allow a trader to establish a married put if the front short contract is assigned; however, there can at times be advantages to approaching a married put with this strategy. As with the bull put spread, not only are you in a limited risk position, but upon assignment the married put is in place as the long stock is already hedged with the back-month put.
Conversely, the holder of a vertical that receives assignment on the put may need or want to go back into the option market to redesign his or her married put, as they don’t have a longer-dated contract to guard the new long stock holdings. This trader only maintains protection into expiration which, if exercised, will result in a closing of shares for a loss equivalent to the strike distance of the vertical minus the initial credit."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-51-explore-your-options-by-tom-gentile-21.gif"",""height"":""617"",""width"":""424""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-51-explore-your-options-by-tom-gentile-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-51-explore-your-options-by-tom-gentile-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305chby,d,"{""minimum-quantity"":""1"",""path"":""ch9s208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:9 (52-56): ChaosHunter by Dennis D. Peterson"",""caption-linebreaks"":""ChaosHunter by Dennis D. Peterson
The purpose of ChaosHunter is to find a formula that gives the relationship between independent variables and a dependent variable. If your dependent variable is tomorrow’s opening price, you’re probably thinking about some sort of formula to use in trading equities. If your dependent variable is tomorrow’s weather, you’re obviously trying to forecast weather. What your dependent variable is really doesn’t matter because ChaosHunter is an extremely versatile tool.
GETTING STARTED
ChaosHunter is written to accept text files using commas or alternative field separators as data files. It is set up to use US or European conventions. It is flexible, and of course, data using a .csv extension works. Since it is trading data we seek, one way to find it is to open a price chart using NeuroShell Trader and save the data; it is saved as a .csv file. Using the File menu, open the saved data file (Figure 1).
As you can see, it is laid out in a spreadsheet format. At this point, you should be thinking, “What portion of this data do I want to use to create the formula, and what portion do I want to use to run the formula and see how it performs?” Click on “Select ranges.” A window (Figure 1: right half) will appear that lets you pick the rows of the data to be used for “Optimization” versus “Out of sample.” The rows you choose for optimization will be the rows used to create the formula, whereas the out-of-sample rows are the ones you use to see how well it performs."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-52-56-chaoshunter-by-dennis-d-peterson-21.gif"",""height"":""626"",""width"":""458""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-52-56-chaoshunter-by-dennis-d-peterson-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-52-56-chaoshunter-by-dennis-d-peterson-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305fufo1,d,"{""minimum-quantity"":""1"",""path"":""ch9s208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:9 (57): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
A “CRUDE” LOOK BACK AT OIL FUTURES
I know it’s a little early, but I’d like to congratulate Technical Analysis of Stocks & Commodities for its 30th anniversary! Without a doubt, successfully operating a print publication for this span of time has taken hard work, dedication, and the ability to adapt to various business and economic environments.
In honor of the occasion, we thought it would be fun to take a look at how the crude oil market has evolved over the previous three decades. In this month’s column, we’ll focus on price changes and tendencies; after all, before we can attempt to predict where prices might go, we must understand where they have been. Stay tuned for the October issue in which we will discuss the logistics of trading, technology and, most important, what we know about these topics to improve your odds of trading success.\nWhen S&C was opening its doors for business in the autumn of 1982, the price of a barrel of crude oil was about $32. Although this sounds cheap to us now, this was considered an excessive price that was brought about by two significant events in Iraq in the late 1970s and early 1980s. The Iranian revolution is estimated to have decreased production by two to 2.5 million barrels of oil per day between June 1979 and November 1979. Shortly after, the Iran/Iraq War led to further production cuts and helped force crude oil prices from $14 per barrel in 1978 to the low $30s in the early 1980s."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-57-futures-for-you-by-carley-garner-20.gif"",""height"":""618"",""width"":""426""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-57-futures-for-you-by-carley-garner-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-57-futures-for-you-by-carley-garner-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov305prre8,d,"{""minimum-quantity"":""1"",""path"":""ch9s208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:9 (58-59): Product Review: Portfolio Health Check by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Product Review: Portfolio Health Check by Jayanthi Gopalakrishnan
One of the biggest challenges that retail traders face every day is deciding what they should buy. And one of the main reasons that traders are faced with such a challenge is because they are not privy to the same information as the banks and other large financial institutions are. To make up for the lack of information, Marc Chaikin developed and created Portfolio Health Check, an analytical service that uses the same type of analytics used by professional money managers to help improve the results of your portfolio.
How does it work?\nPortfolio Health Check is powered by the Chaikin Power Gauge, which is designed to identify stocks that are likely to outperform or underperform in the next three to six months. It looks at 20 factors, some of which have to do with what the analysts are doing. So instead of just looking at technical indicators, it looks at the more traditional value metrics such as price to sales and price to earnings ratios. Chaikin refers to this approach as “quantamental.”"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-58-59-product-review-portfolio-health-check-by-jayanthi-gopalakrishnan-20.gif"",""height"":""633"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-58-59-product-review-portfolio-health-check-by-jayanthi-gopalakrishnan-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-58-59-product-review-portfolio-health-check-by-jayanthi-gopalakrishnan-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov306trti7,d,"{""minimum-quantity"":""1"",""path"":""ch9s208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:9 (60-62): Trading Ticket: Single-Currency ETFs by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Trading Ticket: Single-Currency ETFs by Jayanthi Gopalakrishnan
Recently, the Chicago Mercantile Exchange (CME) launched a new tool for traders that will allow them to look at open interest patterns in equity option contracts. Many traders like to look at the open interest to help them make decisions on which options to trade, since there can be so many different options (puts or calls, different months, and different strike prices). The open interest profile tool by the CME will provide traders insight into the direction of the equity markets.
USING IT
One of the main things that traders will look for with this tool will be the support and resistance of markets by being able to see where large contracts of open interest at particular levels could indicate support or resistance. Since out-of-the-money options tend to be more active, traders want to see where extremely out-of-the-money options are trading as a possible indicator of support or resistance. For example, in Figure 1 you will see a display of the open interest and open interest difference for the July 2012 Standard & Poor’s 500 contracts on July 16, 2012. The spikes in the open interest and the open interest difference (that is, the difference in open interest between the current day and the last trading day) help you determine where the support and resistance levels of the specific market are."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-60-62-trading-ticket-single-currency-etfs-by-jayanthi-gopalakrishnan-20.gif"",""height"":""621"",""width"":""433""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-60-62-trading-ticket-single-currency-etfs-by-jayanthi-gopalakrishnan-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-60-62-trading-ticket-single-currency-etfs-by-jayanthi-gopalakrishnan-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov306qaby1,d,"{""minimum-quantity"":""1"",""path"":""ch9s208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:9 (63): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
FRONT ENDS AND BACK ENDS\nI’m almost embarrassed to ask you about what is probably a simple thing. I keep getting emails from vendors wanting to know if I’m satisfied with my “front end.” They talk about how easy it would be to have better filtering for stocks and better integration with order entry, and I’m not sure what they’re talking about. I called my broker, and they tell me everything is handled on their “back end.” Am I missing something? Hope you can help. —eqtrdr
Good question, especially these days. There are dozens, if not hundreds, of software developers who have entered the trading arena in the last decade or so. The market has become saturated with “new and better” platforms. Let’s break it down.
Most retail brokers and even professional broker/dealers have an order entry platform. Mine is RediPlus, which is provided by Goldman Sachs. RediPlus has recently spun off so it can be made available to other firms, not just Goldman Sachs firms. We see it as a group of windows that show market data, allow for entering and updating live orders, keeping track of positions, and keeps your profit and loss up to the second."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-63-q-a-by-don-bright-20.gif"",""height"":""618"",""width"":""426""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-63-q-a-by-don-bright-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-63-q-a-by-don-bright-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov30678tr1,d,"{""minimum-quantity"":""1"",""path"":""ch9s208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:9 (65-70, 78-79): Trading Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Trading Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Vladimir Vladimirovich Voznjuk’s article in this issue, “Developing A Multilevel Strategy.” Here we present the September 2012 Traders’ Tips code.
Code for NinjaTrader 7 is already provided in Voznjuk’s article by the author. Subscribers will find that code at the Subscriber Area of our website, www.Traders.com. (Click on “Article Code” from our homepage.) Presented here is an overview of possible implementations for other software.
Traders’ Tips are provided to help the reader implement a selected technique from an article in this issue. The entries are contributed by various software developers or programmers for software that is capable of customization.
Readers will find the September 2012 Traders’ Tips code at our website, Traders.com. Here, you can read some discussion of the technique’s implementation by the Traders’ Tips contributors as well as some example charts.
To locate Traders’ Tips at our website, use our site’s search engine, or click on the Traders’ Tips link from our home page. For past Traders’ Tips, click on the “Archive” button in the S&C Magazine box in the middle of our home page, then click on a Traders’ Tips topic of interest, or click on a different year to see more choices."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-65-70-78-79-trading-tips-by-technical-analysis-inc-20.gif"",""height"":""615"",""width"":""414""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-65-70-78-79-trading-tips-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-65-70-78-79-trading-tips-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov307bofo8,d,"{""minimum-quantity"":""1"",""path"":""ch9s208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:9 (72): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-72-books-for-traders-by-technical-analysis-inc-20.gif"",""height"":""613"",""width"":""412""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-72-books-for-traders-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-72-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov308leto4,d,"{""minimum-quantity"":""1"",""path"":""ch9s208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:9 (8-9): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
IRON CONDORS AND MARGINS\nEditor,
I read “The Queen Of The Iron Condors” by John Sarkett in your July 2012 issue about Amy Meissner and her approach to option trading, and I have a few questions.\nIf I am correct, a trader would need an account with at least $60,000 to trade the iron condor approach discussed in the article.\nIn Figure 2 in the article, take the example of the January expiration month with a 31.1% gain of the original credit. The gain would be 31.1% of 4, which is 1.2. With a 1.46% gain of maximum risk, the maximum risk would be 100/1.46 *1.2 = $82,000.\nSince you open a new position 80–88 days before expiration, you must have at least two months’ open positions, so the margin must be way more than $100,000.\nIn addition, the Russell 2000 (RUT) out-of-the-money options have a wide bid/ask spread — for instance, 2.8 to 3.45 — which would make it hard to get good executions.\nOr do I have it wrong?
Kees Collee\nThe Netherlands
Amy Meissner replies:
Yes, you would need more than a $60,000 account. I’ll have a maximum of two expiration months on at the same time. I started 2011 with about $275,000 and only traded 20 contracts for the first five months, then 25 contracts after that for the rest of 2011. The bid/ask spread can seem wide for the RUT, but I haven’t had any problems getting filled. I sometimes get the mid price and if not will give them 0.05 to 0.10 cents off the mid."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-8-9-letters-to-s-c-by-technical-analysis-inc-20.gif"",""height"":""618"",""width"":""423""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-8-9-letters-to-s-c-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-8-9-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov30881at3,d,"{""minimum-quantity"":""1"",""path"":""ch9s208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 30:9 (82, 81): At The Close: Charting True Internals & Peripherals by Richard J. Johnson"",""caption-linebreaks"":""At The Close: Charting True Internals & Peripherals by Richard J. Johnson
This simple charting technique is derived\nfrom J. Welles Wilder’s true range.
Welles Wilder, one of the founders of modern technical analysis, developed many technical indicators and tools still in use today: relative strength index (RSI), average directional movement index (ADX), and true range (TR), to name only a few. I have developed a simple charting technique derived from his construction of the true range.\nWilder’s true range concept presupposes that the human mind is aware of not only a present period’s activity, but also the immediate prior period’s activities and results. Consciously or not, traders and technicians are cognizant of present market action relative to the previous period’s performance and levels. Therefore, when determining data to analyze, at least a whisper of the previous period’s closing price should be factored into the present data.
INTERNALS AND PERIPHERALS
True highs are either the present period’s high or the prior closing price, whichever is higher. True lows are either the present period’s low or the prior closing price, whichever is lower. These are the data points that compute the present period’s true range. True internals & peripherals (TIP) are two data screening techniques that refer back to the prior period based on Wilder’s insight.
"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-82-81-at-the-close-charting-true-internals-peripherals-by-richard-j-johnson-20.gif"",""height"":""623"",""width"":""442""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-82-81-at-the-close-charting-true-internals-peripherals-by-richard-j-johnson-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-30-9-82-81-at-the-close-charting-true-internals-peripherals-by-richard-j-johnson-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov311filo,d,"{""minimum-quantity"":""1"",""path"":""ch1j204"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:1 (10-12): Finding Low-Risk Entry Points by Danish Kapur"",""caption-linebreaks"":""Rediscover The Basics
Finding Low-Risk Entry Points by Danish Kapur
Sometimes you have to go back to the basics, especially when\nyou hit a rut. One of the most basic technical indicators you\ncan go back to is the moving average. It works well in trending\nmarkets but it also has its shortcomings. Here’s how you can\nuse it to your advantage.
Several myths are tied to the use of moving averages.\nHere, I will try to simplify the implementation of moving\naverages and clarify some of the more popular myths\nassociated with them. Moving averages are one of the simplest\ntools available to a trader, and they can be of great help\nin identifying potential low-risk entry points. But you can’t take them for granted.
There are different types of moving averages such as the\nsimple moving average (SMA), exponential moving average\n(EMA), and weighted moving average (WMA). I will focus\non the SMA, which is the arithmetic average of prices over a\nspecified period of time.
It’s simple
Moving averages are helpful in determining the direction of a\ntrend, but if a market is in a trading range, you are better off\nusing another type of indicator. In addition, there is no “one size\nfits all” parameter to use for moving averages. You may find\nthe 50-day SMA works well for one stock but not for another.\nDifferent moving averages work for different markets and you need to do your due diligence when\nit comes to determining which SMA\nto use. Discretionary traders can do\nthis by applying the SMA to a chart\nand checking to see how well prices\nrespect that specific moving average.\nSystem traders can determine how\nwell the SMA performs by backtesting\nand analyzing its performance."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-10-12-finding-low-risk-entry-points-by-danish-kapur-23.gif"",""height"":""632"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-10-12-finding-low-risk-entry-points-by-danish-kapur-31.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-10-12-finding-low-risk-entry-points-by-danish-kapur-32.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov311filo1,d,"{""minimum-quantity"":""1"",""path"":""faarfr205"",""ysw-page-title"":""Stocks & Commodities V. 31:1 (10-12): Finding Low-Risk Entry Points by Danish Kapur"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-10-12-finding-low-risk-entry-points-by-danish-kapur-28.gif"",""height"":""632"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-10-12-finding-low-risk-entry-points-by-danish-kapur-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-10-12-finding-low-risk-entry-points-by-danish-kapur-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov311syun,d,"{""minimum-quantity"":""1"",""path"":""ch1j204"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:1 (14-18): Systematic & Unsystematic Risk And CAPM by Daniel Subach"",""caption-linebreaks"":""Systematic & Unsystematic Risk And CAPM by Daniel Subach
This article is a continuation of Subach’s previous article\nconcerning diversification and risk reduction. This time, he\nwill explore systematic and unsystematic risk with respect\nto total risk of investment. The capital asset pricing model\n(CAPM) presents how the market prices securities and\nhelps determine expected returns. You must be compensated\nfor the risk of your investment, and the CAPM provides a\nmeasure of the risk premium and a tool for estimating your\nexpected return curve.
In my previous article, I indicated that combining\nsecurities into portfolios reduces risk. When securities\nare combined, a portion of a stock’s variability\nin turn is canceled by complementary variations in the returns\nof other securities. The total risk is the sum of unsystematic\nrisk and systematic risk. The capital asset pricing model’s\n(CAPM) assumptions result in investors holding diversified portfolios to minimize risk.
If the CAPM correctly describes market\nbehavior, the measure of a security’s risk\nis its market-related or systematic risk. The\nCAPM provides insight into the market’s\npricing of securities and the determination\nof expected returns. Therefore, it also has\na clear application in investment management.\nThe model relates to a firm’s cost\nof equity capital and the cost of equity for\nthe market as a whole. The tool will arm\nyou with a simple equation to assist you\nin optimizing your investment decision\nand the creation of your portfolio."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-14-18-systematic-unsystematic-risk-and-capm-by-daniel-subach-20.gif"",""height"":""645"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-14-18-systematic-unsystematic-risk-and-capm-by-daniel-subach-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-14-18-systematic-unsystematic-risk-and-capm-by-daniel-subach-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov312brpo,d,"{""minimum-quantity"":""1"",""path"":""ch1j204"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:1 (20-30): The British Pound Cubed, Redux by Dennis Meyers"",""caption-linebreaks"":""Using Least-Squares
The British Pound Cubed, Redux by Dennis Meyers
Trading systems involve several components to\nmake sure they perform as well as you would\nlike them to. Here’s how you can apply these\ncomponents using the least-squares cubic system.
Years ago, in a Stocks & Commodities article\ntitled “The British Pound, Cubed,” I examined\ntrading the British pound (BP) using a least-squares\ncubic polynomial to serve as a better proxy for the\nBP market trend. The cubic polynomial should\nrespond faster to changes in the underlying trend\nand model the trend changes more accurately than\nthe straight-line version. In that article, I used walkforward\noptimization with an in-sample period of\nfive years of daily prices and an out-of-sample (OOS)\nperiod of one year. I examined these in-sample and\nOOS periods:
In-Sample Period Out-Of-Sample Period\n1/1/89 to 12/31/93 1/1/94 to 12/31/94\n1/1/90 to 12/31/94 1/1/95 to 12/31/95\n1/1/91 to 12/31/95 1/1/96 to 12/31/96\n1/1/92 to 12/31/96 1/1/97 to 12/31/97\n1/1/93 to 12/31/97 1/1/98 to 12/31/98
Computers were not as fast or powerful as they are\ntoday. In addition, the walk-forward software then was nowhere as sophisticated as it is now. Given today’s\ntechnology, I can bring the British pound cubed\nstrategy up to date and use shorter in-sample and\nOOS periods so changing relationships in economic\ndata and trading patterns in the currency world can\nbe quickly mirrored in the in-sample data.
I will examine an in-sample period of one year of\nBP daily prices followed by an OOS period of three\nmonths of daily BP prices. Each walk-forward period\nwill advance three months and I will examine 82 walkforward\nin-sample and OOS periods from January\n1, 1991, to June 30, 2012. In Figure 1, you see the\n82 in-sample and OOS windows, the cubic strategy\ninputs, and the quarterly OOS profit/loss results using\nthe performance metric filter I will describe.
The British pound (BP) is a major currency traded\n24 hours per day, and most of the world’s largest banks\nmake a two-sided market in the BP and its associated\nderivatives. Small traders, however, are constrained\nto trade the BP futures on the Chicago Mercantile\nExchange (CME). While the CME BP futures trading\nvolume is small compared to total worldwide bank\nand institutional trading volume, arbitrage keeps the\nfuture prices in line with the bigger markets."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-20-30-the-british-pound-cubed-redux-by-dennis-meyers-20.gif"",""height"":""611"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-20-30-the-british-pound-cubed-redux-by-dennis-meyers-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-20-30-the-british-pound-cubed-redux-by-dennis-meyers-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov313qaby,d,"{""minimum-quantity"":""1"",""path"":""ch1j204"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:1 (31): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
NEW TRADER, NEW QUESTIONS
From Claude Moran: Mr. Bright, I’m\nin my late 20s and have just started a\ncareer in professional trading. I have my\nlicense, have put up my own capital, and\nget to keep most of my trading profits.\nI have read your column in Stocks &\nCommodities for a long time, and I do\nmy best to digest your responses when\nthey apply to my situation. Like your firm,\nI stick with equities and trade stocks and\nexchange traded funds (ETFs) exclusively.\nI hope you won’t mind answering\nsome basic questions. Here we go:
1. I have a mentor who likes to trade\nfrom the news on individual stocks.\nHe pays for several services that give\nhim news before anyone else gets it. I\nam skeptical if this is really true. And\ndo you have experience with this type\nof trading?
Don Bright answers: Please feel free\nto ask me anything about anything to do\nwith the markets and trading. Now, as to\ntrading “news stocks.” This is a tough and\ncompetitive portion of trading. My opinion\nis that “someone always knows things\nbefore I do.” Period. That said, there are\ntraders who have developed computer\nprograms to search multiple data vendors\nfor keywords, news items, things like\n“dividend,” “increase,” “sales,” and so\nforth and will immediately check out\nother symbols in the same sector(s) and\nexecute trades immediately. That level\nof sophistication is not extreme these\ndays. So if you think you can compete\nwith this, then feel free."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-31-q-a-by-don-bright-20.gif"",""height"":""650"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-31-q-a-by-don-bright-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-31-q-a-by-don-bright-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov313dmis1,d,"{""minimum-quantity"":""1"",""path"":""faarfr205"",""ysw-page-title"":""Stocks & Commodities V. 31:1 (32-38): The DMI Stochastic by Barbara Star"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-32-38-the-dmi-stochastic-by-barbara-star-28.gif"",""height"":""631"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-32-38-the-dmi-stochastic-by-barbara-star-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-32-38-the-dmi-stochastic-by-barbara-star-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov313dmis,d,"{""minimum-quantity"":""1"",""path"":""ch1j204"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:1 (32-38): The DMI Stochastic by Barbara Star"",""caption-linebreaks"":""Getting Into The Game
The DMI Stochastic by Barbara Star
When a trend has already begun, does that mean it’s too\nlate to get in? Not necessarily. This trading technique can\nhelp you get into a trend so you don’t have to miss trading\nopportunities.
Computer charting software that allows traders to create\ntheir own custom studies and formulas opens the\ndoor to a world of experimentation that could lead\nto the development of a new trading indicator. But it\nisn’t always necessary to go to those lengths in order\nto find useful trading tools. Sometimes simply combining\nthe components of one well-known indicator with another is enough to create a type of synergy that can\nenhance trading.
For several years, one of my templates for short-term trading\nhas included something I call the DMI stochastic, which I\nuse mainly to identify potential entries into an existing trend.\nThe template consists of a trend-identifying oscillator based\non indicators from J. Welles Wilder’s directional movement\nindex (DMI) and also a momentum indicator derived from\nthat oscillator. Together, they offer two indicators that capture\nthree powerful technical analysis basics: trend, momentum,\nand support/resistance. While not as reliable for intraday\ntrading, they work well in 60-minute, end-of-day (EOD),\nand weekly time frames. This article shows how to create\nand apply these indicators using EOD charts.
DMI oscillator
Within the suite of indicators that make up Wilder’s directional\nmovement index (DMI) are the plus directional movement\nindicator (+DI) and the minus directional movement indicator\n(‑DI). They provide the foundation for the more widely recognized\naverage directional index (ADX). Whereas the ADX\noffers information about the strength of price movement but\nnot its direction, the +DI and ‑DI furnish information about\nthe positive or negative direction of price movement over a\nperiod of time."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-32-38-the-dmi-stochastic-by-barbara-star-23.gif"",""height"":""631"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-32-38-the-dmi-stochastic-by-barbara-star-31.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-32-38-the-dmi-stochastic-by-barbara-star-32.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov31464in,d,"{""minimum-quantity"":""1"",""path"":""ch1j204"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:1 (40-42, 64): Intermarket Checkup by Matt Blackman"",""caption-linebreaks"":""Intermarket Checkup by Matt Blackman
Where the heck are we, anyway? Knowing where we are now and what economic forces\nare in play in the broader scheme of things can be useful in anticipating where we’re\nheaded.
In his latest book, Investing In The Second Lost Decade, Martin Pring et al. provide\na credible explanation about the business cycle and how it can be used to\nenhance investment and trading decisions. Pring breaks the idealized cycle down\ninto six stages and provides an overview of how the three major asset classes (bonds,\nstocks, and commodities) should be performing at each stage of the cycle.
According to Pring, bonds should\nlead stocks and stocks should lead\ncommodities on the way up and down\nin a textbook cycle. Figure 1 is a\nstylized diagram of the Pring-Turner\nbusiness cycle, described thus:
To everything a season
Stage 1: The economy is still contracting,\nbut stocks are approaching\ntheir lows and commodities aren’t\nfar behind. Once bonds demonstrate\nthey have bottomed, it’s a good\ntime to start buying them since they\nlead the other two asset classes in\na recovery.
Stage 2: At this point, the economy\nhas bottomed. Stocks have begun to\nmove up behind bonds.
Stage 3: As the economy improves,\ninflation begins to creep in, which\nis good for commodities that have\nbottomed and stocks, at least in the\nearly inflationary stages. This is\na good time to buy commodities.\nBonds, stocks, and commodities\nmove up together during stage 3 as\nthe economy continues to expand."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-40-42-64-intermarket-checkup-by-matt-blackman-20.gif"",""height"":""629"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-40-42-64-intermarket-checkup-by-matt-blackman-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-40-42-64-intermarket-checkup-by-matt-blackman-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314fufo,d,"{""minimum-quantity"":""1"",""path"":""ch1j204"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:1 (43): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
What are some highlights of popular\ntrading platforms?
Futures brokerage firms typically offer\ntrading platform options including\na “free” version along with an array of\npremium platforms for additional cost.\nLast issue, we discussed various types\nof platform subscriptions and capabilities.\nThis time, we’ll focus on a few of\nthe more popular trading environments\navailable, their costs, and highlights.
The free trading platforms provided to\nbrokerage clients are often developed inhouse\nand are, therefore, only available\nat the firm offering it. Don’t automatically\nassume the platform is inferior to\nthe high-cost options. In fact, one of the\nmost efficient and feature-rich platforms\nwe’ve made available to our DeCarley\nTrading clients is accessible at no cost\nto clients. Don’t forget, brokerage firms\nonly make money when their clients\ntrade, so strides are made to ensure it is\nas easy for clients to pull the trigger.
Premium platforms are developed by\nthird parties whose sole purpose is to\ngenerate revenue via platform subscriptions,\nsales, and fees. These vendors don’t\nbenefit from trading commission or any\nother fees you pay to your brokerage firm.\nAccordingly, they have an incentive to\ncontinually improve their product for\ntraders. If they didn’t, traders would opt\nfor the free options. For those looking\nfor upgraded charting, complex order\ntypes, the ability to save settings or host\ncontingent orders on a server, a premium\nplatform might better accommodate.
Some of the most popular paid-for\nplatforms are QST (Quick Screen Trading),\nNinjaTrader, Cunningham Trading\nSystem’s T4, and Rithmic’s R-Trader.\nEach platform has significant capabilities\nwith various strengths; consequently,\nI’ve arranged to offer all of them to my\nbrokerage clients along with free platform\nchoices. I cannot do these platforms\njustice in a brief description, but it’s\nworthwhile to provide a synopsis."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-43-futures-for-you-by-carley-garner-20.gif"",""height"":""649"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-43-futures-for-you-by-carley-garner-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-43-futures-for-you-by-carley-garner-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314chva,d,"{""minimum-quantity"":""1"",""path"":""ch1j204"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:1 (44-47): The Chartmill Value Indicator by Dirk Vandycke"",""caption-linebreaks"":""Jumping Those Hurdles
The Chartmill Value Indicator by Dirk Vandycke
Oscillators identify overvalued and undervalued situations.\nThey have their advantages, especially in short-term valuations,\nbut also struggle with recurring disadvantages. In this,\nthe first of a series, we will look at how to overcome these\ndisadvantages.
Any technical analyst is familiar with the concept of an\noscillator. Oscillators like relative strength index (RSI),\nmoving average convergence/divergence (MACD), and\nstochastic try to capture a relative short-term valuation of\ntheir underlying series. Almost all classical oscillators fall into\ntwo categories. On the one hand, there are range compression\noscillators like RSI, which basically try to squeeze a price chart into a fixed range like [0, 100] or [‑1, +1]. Smoothing\noscillators like MACD, on the other hand, use moving averages\nto get rid of noise. Neither set of these classic oscillators\ninterprets the relative value of a stock, which accounts for\nalmost all of their shortcomings.
How do you cope?
Not only that, range compression oscillators just give you\nthe same information you see if you squint at the original\nprice chart. They also have a stickiness problem, which is\nthe tendency to stick to the minimum or maximum of their\ninterval during strong trends, as they try to fit trends of any\nlength into the same narrow range. Those trends almost always\nget compressed in the small oversold or overbought zones.\nThat is because the biggest part of their range is reserved for short-term reactions to price. This gives extended overbought\nor oversold signals with the trend just marching on, making\nthose signals useless. Smoothing oscillators on their part have\nthe same lagging problems as moving averages, the primary\ncomponents on which they are built.
To make things even worse, they all need parameters, which\nleaves them open to a lot of subjectivity in their usage and\ninterpretation. This puts traders who are backtesting these\noscillators in harm’s way, as they might fall victim to curvefitting.\nThis lack of transparency can be seen in the numerous\nways they are used, while in fact they are often nothing more\nthan a small, distorted version of the original price chart.
This leaves us with the question: Can we cope with the lag,\nstickiness, and subjectivity to come up with a better oscillator?\nYes. The solution to this problem of building such an oscillator\nlies in the statistics of what short-term value is."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-44-47-the-chartmill-value-indicator-by-dirk-vandycke-20.gif"",""height"":""604"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-44-47-the-chartmill-value-indicator-by-dirk-vandycke-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-44-47-the-chartmill-value-indicator-by-dirk-vandycke-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314incr,d,"{""minimum-quantity"":""1"",""path"":""ch1j204"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:1 (48-51): Interview: Creative System Design With Roman Bogomazov by Gopalakrishnan"",""caption-linebreaks"":""Creative System Design With Roman Bogomazov by Gopalakrishnan
Where better to learn technical analysis and trading than a university with courses\nspecializing in the subject? Roman Bogomazov is a trader and an educator, an\nadjunct professor at Golden Gate University (GGU) in San Francisco, where he\ncoordinates technical analysis programs and teaches classes on trading strategies\nand implementation, including Wyckoff analysis. He is a board member of\nthe International Federation of Technical Analysts and of the Technical Securities\nAnalysts Association of San Francisco. Bogomazov is a frequent speaker at local,\nnational, and international trading conferences.
Stocks & Commodities Editor Jayanthi Gopalakrishnan interviewed Bogomazov\nin a series of emails in late October and early November 2012.
Roman, how you did get interested\nin technical analysis?
The first time I saw a trading\nterminal was in Russia in 1994.\nA local bank had organized an event for\nprospective forex traders to promote the\nbank’s brokerage services and gave an\nelaborate presentation of a potentially\nlucrative trade in the yen.
I found out the next morning that the\nbank took a major loss on that trade.\nDespite that, I got hooked on the idea of\ntrading. So I emigrated from Russia in\n1996 and started trading the forex market\nusing a momentum-based system. My\nanalyses were correct much of the time\nbut my execution was poor. Those initial\nlosses and the accompanying grief were\nthe best things that happened to me as a\ntrader, making me acutely aware of the\nknowledge gap in my trading approach. I\nsought ways to improve, which brought\nme to Golden Gate University’s technical\nanalysis program.
Many classes later, I applied technical\nprinciples in my trading. I also pursued\nCMT designation and was mentored by\nHenry Pruden and Bruce Fraser. I am\nalways continuing to learn through my\nteaching, coaching, and ongoing research\nof the Wyckoff method."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-48-51-interview-creative-system-design-with-roman-bogomazov-by-gopalakrishnan-21.gif"",""height"":""584"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-48-51-interview-creative-system-design-with-roman-bogomazov-by-gopalakrishnan-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-48-51-interview-creative-system-design-with-roman-bogomazov-by-gopalakrishnan-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov315exyo,d,"{""minimum-quantity"":""1"",""path"":""ch1j204"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:1 (53): Explore Your Options by Price Headley"",""caption-linebreaks"":""Explore Your Options by Price Headley
STRADDLES AND THE SPX
Will the straddle work with index options\nlike SPX? I’d given up on individual\nstocks and have been trading SPX options\nexclusively. Except for the price\nof the premiums, it seems to make little\ndifference in volatility if I buy the SPX\noptions in- or out-of-the-money (OTM),\nso I buy them OTM for the cheaper\npremiums. I remember reading about\nstraddles and spreads, and correct me\nif I’m wrong but the behavior of options\non individual stocks seems to depend on\nwhether they are in or out of the money,\nand I thought that was the key to straddle/\nspread strategies. Am I correct in thinking\nthese strategies won’t work for index\noptions? Are there similar strategies that\ncan be employed that work to hedge risk\nand make money both ways with index\noptions like for SPX?
First, here’s how a straddle works. Say\nXYZ shares are trading at 50 and you\nexpect the stock to be volatile, up to the\n60 area of higher or down to 40 or lower\nover the next several months. The only\nissue is you don’t know which way it’s\ngoing to move first. The straddle purchase\nis an option strategy, which can get you\non board the start of a big move.
By purchasing the six-month XYZ\n50 call and simultaneously buying the\nsix-month XYZ 50 put, we now have\na position that can benefit as long as\nXYZ shares are even more volatile\nthan expected. When you buy the same\nstrike price on both sides, it’s known as\na straddle. If the strike prices are different,\nit’s called a strangle. The key to\nsuccess in buying straddles is what you\npay for the call and put option relative\nto the volatility, which is implied or\nexpected to occur. There are factors to\nconsider in getting the cheapest straddles, which can offer the greatest leverage in\na potentially volatile move:"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-53-explore-your-options-by-price-headley-25.gif"",""height"":""652"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-53-explore-your-options-by-price-headley-28.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-53-explore-your-options-by-price-headley-29.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov315exyo5,d,"{""minimum-quantity"":""1"",""path"":""faarfr205"",""ysw-page-title"":""Stocks & Commodities V. 31:1 (53): Explore Your Options by Price Headley"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-53-explore-your-options-by-price-headley-30.gif"",""height"":""652"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-53-explore-your-options-by-price-headley-31.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-53-explore-your-options-by-price-headley-32.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov31561tr,d,"{""minimum-quantity"":""1"",""path"":""ch1j204"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:1 (54-55, 61): Trading ETF Pairs by Moshé Prince and Brian Scollick"",""caption-linebreaks"":""Trading ETF Pairs by Moshé Prince and Brian Scollick
How do you know what direction the market is taking and\nwhere to invest with prevailing trends? How can you recognize\na new trend developing? Starting in 2009 until recently, several\nexchange traded funds (ETFs) have gained the attention of the\nmarket since they have been showing prevailing trends.\nETFs are made up of a fund of individual stocks that\ntrade like a single stock. Because they are made up of many\nstocks — for example, 500 stocks in the case of the Standard & Poor’s 500 — they are diverse and have low or moderate\nvolatility. A single action like a CEO mismanaging assets does\nnot have the same impact on ETFs as it does on that specific\nstock and its resulting value from the CEO’s poor choices.\nI chose to track 10 pairs of ETFs, with each pair having an\ninverse ETF or an opportunity to make money when the stock\nmarket pulls back.
Both sides of the coin
During pullbacks and trend reversals, the key is to look at\npairs of ETFs — upside and downside ETFs. The real power\ncomes from knowing when to enter the market, exit the market,\nreenter the market, and go to or stay in cash.
Trends begin to emerge or typically start from patterns\nin certain sectors or areas of the market where you see continued\ngrowth and opportunity over a period of time. The\ntrend can continue for a few weeks, months, or even years.\nBeing able to focus on trends and recognize the patterns\ntakes close personal scrutiny, a loyal advisor, or the use of a\ntrend-following tool.
Another way to identify emerging trends is by looking at a\nfew of the stronger stocks in the sectors of ETFs I follow. Take\na look at the technology sector, for example. The ETF pair I\nlook at is the Direxion Daily Technology Bull 3X (TECL)–a\nDirexion Daily Technology Bear 3X (TECS) combination.\nThese ETFs have a higher risk since they are rated with a\nbeta, being 1X, 2X, or 3X, with 3X being the most potentially\nvolatile since it is highly leveraged."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-54-55-61-trading-etf-pairs-by-mosh-prince-and-brian-scollick-21.gif"",""height"":""613"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-54-55-61-trading-etf-pairs-by-mosh-prince-and-brian-scollick-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-54-55-61-trading-etf-pairs-by-mosh-prince-and-brian-scollick-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov315prre,d,"{""minimum-quantity"":""1"",""path"":""ch1j204"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:1 (56-61): Product Review: MetaStock Pro 12 by Dennis Peterson"",""caption-linebreaks"":""Product Review: MetaStock Pro 12 by Dennis Peterson
METASTOCK
90 South 400 West, Suite 620\nSalt Lake City, UT 84101
Phone: Sales 800 508-9180; technical\nsupport 801 265-9998
Email: Sales: sales@metastock.com;\nsupport: support@metastock.com
Product: Trading platform
Requirements: MetaStock Pro 12 is\nsoftware you install on your computer\nand designed to support real-time\nintraday trading. It uses the Eikon\nfor Retail Traders datafeed, which\nprovides not only quotes but also\nrobust access to news.
Price: $100/month, $960/year or\n$1,395 (permanent version)
Upon launching MetaStock Pro\n12 (MSPro12), the first thing\nyou see is an overlay of the\nMetaStock main screen. Called the\n“Power Console” screen, it has three\ntabs on the left: Charts, Explorer, and\nSystem Tester. Selecting the Charts tab\nstarts you off with finding the instrument\nyou want (Figure 1). If you are familiar\nwith a companion product Eikon for\nRetail Traders, it should be no surprise\nto see a worldwide list of exchanges to\nchoose from.
Once you have chosen the instrument\nyou want charted, you are just one\nscreen away from seeing a chart. Click\non “Next” (Figure 1: lower right-hand\ncorner) to bring up a screen that lets\nyou choose how many days you want\ncharted and the interval. One of the nice\nfeatures of MetaStock has always been\nthe custom choice for interval. It lets you\npick any of the usual intervals such as\ndaily, weekly, or hourly and also has a\nchoice called “Multiplier.” If you have\nchosen a daily interval and a multiplier\nof 2, all of your bars are now two-day\nbars. Try it. You’ll see some interesting\nresults. Having made your choice of the\nnumber of days and the interval, you’ve\ncreated a chart (Figure 2)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-56-61-product-review-metastock-pro-12-by-dennis-peterson-21.gif"",""height"":""584"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-56-61-product-review-metastock-pro-12-by-dennis-peterson-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-56-61-product-review-metastock-pro-12-by-dennis-peterson-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov316quch,d,"{""minimum-quantity"":""1"",""path"":""ch1j204"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:1 (62-64): Quick-Scans: ChartLabPro by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Quick-Scans: ChartLabPro by Jayanthi Gopalakrishnan
CHARTLABPRO
TheChartLab.com
Which stock should you buy? Are the\nstocks you own worth holding on to or\nshould you sell them? Are they oversold\nor overbought? Should you put all your\nequity into a trade? Trading is all about\nmaking decisions based on an unknown\noutcome. Sometimes you make the\nright decision, sometimes you don’t.\nBut that’s the nature of the game, and\noften, those decisions are made purely\non guesswork.
To take guesswork out of the equation,\nthe folks at TheChartLab.com developed\nChartLabPro, a technical analysis–based\nplatform to help traders gain an edge in\ntheir trading. It is designed to give you an\noverall view of your portfolio so you are\nbetter able to make trading decisions.
Features
When you log on to ChartLabPro (Figure\n1), you will see all the alerts for your\nportfolio, watchlist, and sectors. These\nalerts let you know which stocks or sectors\nhad some change in their rankings —\nthat is, they may have been downgraded\nor perhaps their trend reversed. To the\nright of the alerts you will see the performance\nof the Standard & Poor’s 500\nwith three support and resistance levels\nand a meter that indicates if the index is\noversold or overbought. You will also\nsee several articles that provide market\ncommentaries. They are titled “Morning\nCoffee,” “Afternoon Tea,” and “Happy\nHour.” Prior to trading, if you looked at\nthe Morning Coffee section, you will get\na summary of the important news items\nthat could affect your trading.
The rating change alerts, which you will\nalso see on the home page, are good to keep\nan eye on. Here you see rating changes\nfor longs, shorts, and the S&P 500 for the\ncurrent day, the last two days, and the last\nfive days. You also see the long and short\nalerts where you see the previous rating\nas well as the new one. Another variable I\nwould like to point out is the current day,\ntwo-day, and five-day outperformance,\nwhich is your average return of longs and\naverage return of shorts."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-62-64-quick-scans-chartlabpro-by-jayanthi-gopalakrishnan-21.gif"",""height"":""644"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-62-64-quick-scans-chartlabpro-by-jayanthi-gopalakrishnan-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-62-64-quick-scans-chartlabpro-by-jayanthi-gopalakrishnan-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov316trti2,d,"{""minimum-quantity"":""1"",""path"":""faarfr205"",""ysw-page-title"":""Stocks & Commodities V. 31:1 (65-73): Traders’ Tips by Technical Analysis Inc."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-65-73-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""649"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-65-73-traders-tips-by-technical-analysis-inc-31.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-65-73-traders-tips-by-technical-analysis-inc-32.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov316trti,d,"{""minimum-quantity"":""1"",""path"":""ch1j204"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:1 (65-73): Traders’ Tips by Technical Analysis Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis Inc.
For this month’s Traders’ Tips, the focus is\nBarbara Star’s article in this issue, “The DMI\nStochastic.” Here we present the January\n2013 Traders’ Tips code.
Code for eSignal is already provided in\nStar’s article by the author. Subscribers will\nfind that code at the Subscriber Area of our\nwebsite, www.Traders.com. (Click on “Article\nCode” from our homepage.) Presented here is an overview\nof possible implementations for other software.
Traders’ Tips are provided to help the reader implement\na selected technique from an article in this issue.\nThe entries are contributed by various software developers\nor programmers for software that is capable of customization.
Readers will find the January 2013 Traders’ Tips code\nat our website, Traders.com. Here, you can read some\ndiscussion of the technique’s implementation by the Traders’\nTips contributors as well as some example charts.
To locate Traders’ Tips at our website, use our site’s\nsearch engine, or click on the Traders’ Tips link from our\nhome page. For past Traders’ Tips, go to http://traders.\ncom/index.php/sac-magazine/departments/traders-tips\nor click on the Complete Archive button from Traders.com\nfor past articles and Traders’ Tips in PDF format."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-65-73-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""649"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-65-73-traders-tips-by-technical-analysis-inc-28.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-65-73-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov317bofo,d,"{""minimum-quantity"":""1"",""path"":""ch1j204"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:1 (77): Books For Traders by Technical Analysis Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis Inc.
The following selection of book descriptions represents a sampling of recent book\nreleases in the investing field. Books described here may be from some of the major\nbook publishers as well as some independent book publishers. These are not\ncritical reviews or editorial evaluations, but rather a brief look at the book marketplace\nto help keep readers up to date on new book offerings."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-77-books-for-traders-by-technical-analysis-inc-21.gif"",""height"":""664"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-77-books-for-traders-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-77-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov318leto,d,"{""minimum-quantity"":""1"",""path"":""ch1j204"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:1 (8): Letters To S&C by Technical Analysis Inc."",""caption-linebreaks"":""ADX & DMI
Editor,
I have a question for the\nauthor of “Identify The\nStart Of A Trend With\nDMI” from your November\n2012 issue.
Having just recreated the worksheet\nshown in the article’s sidebar beginning\non page 18 of the November 2012 issue,\nI am not clear on which columns are to\nbe graphed. Please help with this.
As for the author’s technique, it looks\nquite interesting. Has the author explored\nusing this technique intraday?
Thanks, and my apologies for my lack\nof understanding.
Dan Cash
\nAuthor BC Low replies:
I’m not sure what software you are using,\nbut I use MetaStock, and I simply\nadd the ADX, +DI, and -DI lines into\nthree windows, and you are ready to\nread the signals.
I do not have software that can create\nthe three lines intraday. As such, my\ntechniques tend to apply to end-of-day\ncharts. In general, intraday signals are\ntrickier, I feel.
\nEditor replies:
The sidebar on ADX merely shows how\nto calculate the ADX. It does not reflect\nor implement the system discussed by\nLow in his article.
For an example of how to implement\nBC Low’s technique in Microsoft Excel\nspreadsheet software, please refer to the\nTraders’ Tips section of our November\n2012 issue and see Ron McAllister’s contribution\non page 77 of that issue. This is\nalso available in the Traders’ Tips area of our website at http://www.traders.com/\nindex.php/sac-magazine/departments/\ntraders-tips/1830-microsoft-excelnovember-\n2012 (or click on the Traders’\nTips link from our homepage at Traders.\ncom and scroll down to the “Microsoft\nExcel: November 2012” item, or type\n“November 2012” in the title filter search\nbox in the Traders’ Tips area)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-8-letters-to-s-c-by-technical-analysis-inc-21.gif"",""height"":""618"",""width"":""423""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-8-letters-to-s-c-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-8-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov318arey,d,"{""minimum-quantity"":""1"",""path"":""ch1j204"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:1 (81-82): Are You Lost? by Mike Lauderdale"",""caption-linebreaks"":""Are You Lost? by Mike Lauderdale
Ask yourself these 10 thought-provoking questions to rediscover the right trading path.
Trading can be so isolating and detail-oriented that we can get lost. We can be so\nfocused on the practical details of trading that we forget both where we have been\nand where we want to go. Sometimes, the most expedient thing we can do is look\nat the big picture. It is important to stay pointed in the right direction to achieve\nour goals in trading and in life.
These 10 thought-provoking\nquestions can help you rediscover\nthe right path. If you have\ndifficulty answering any of these\nquestions, you might want to\ndiscuss them with someone who\nknows you well and cares about\nyou. You might also consider\nreturning the favor. This is not\nonly a great self-awareness tool,\nbut it also can help in developing\nbetter understanding of others\nand building more meaningful\nrelationships.
1. What is currently your biggest\ninvestment of time and emotional\nenergy? In trading? In life? Is\nthis where you want your focus\nto be?
All of us can be distracted by\nthe urgent at the expense of the\nimportant. Concentrate on what\nmatters most. Becoming aware\nof what is important can help\nyou refocus on the achievement\nof life-defining goals.
One client found himself focused\non his trading and at the\nsame time frustrated with his\nmarriage and the lack of support\nhe felt from his wife. When\nwe talked through this issue, he\nrealized one of his great motivations\nfor trading was to better\nprovide for his wife. I suggested\nsome tools he could use to better\ncommunicate with his wife and\nunderstand what was in her heart.\nHis wife responded by wanting\nto support her husband. As his\nfocus turned to the priority of his\nmarriage, mutual empathy and\nsupport progressed immediately.\nAs a result, his life perspective\nand trading results improved\nimmensely."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-81-82-are-you-lost-by-mike-lauderdale-21.gif"",""height"":""632"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-81-82-are-you-lost-by-mike-lauderdale-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-1-81-82-are-you-lost-by-mike-lauderdale-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov31146mi,d,"{""minimum-quantity"":""1"",""path"":""ch10o209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:10 (10-15, 46): The Missing Link, Part 2 by Mircea Dologa"",""caption-linebreaks"":""The Missing Link, Part 2 by Mircea Dologa
A Golden Approach
In this second part of a two-part series, you see the time & price\nrelationship develop in real time on a chart of gold futures.
Last month in part 1, I discussed how I examine the time\n& price relationship in the market by focusing on the\nfourth wave, W(4). I used a combination of Elliott wave\nanalysis, Gann methodology, and mapping multiple\ntime frames, all of which I consider before making any final\ntrade determinations. Once this analysis has been performed,\nthe next step, which is a detailed study of the particular market\nyou are trading, comes naturally. Here, I’ll use the gold\ncontinuous futures contract as an example.
The price of gold futures tends to exhibit a complex development,\nwhich is why I chose to use it as an example to\ndiscuss the relationship between time & price. Understanding this relationship can help you identify the optimal time frame\nsetup for your market.
The development of W(4) wave is fundamental in revealing\nwhere the current impulsive pattern, or main direction of the\ntrend, terminates. Here, I will present some arguments that\nexpose the future potential of W(4) and W(5) waves, with W(5)\nterminating the current parabolic impulsive pattern.
Indirect and direct
If you closely observe the monthly chart of the gold continuous\nfutures contract in Figure 1, you can see that the time &\nprice elements efficiently predict the development of W(4)\nwave and W(5) wave.
Indirect impact: The indirect impact of the price & time\nrelationship of W(2) wave on the development of W(3) is\nrelevant. The long duration of W(2) implied a strong buildup\nof the market’s kinetic energy, which, as a consequence, had a strong W(3) wave momentum, responsible for its parabolic\nshape. Price-wise, the size of W(3) wave was 2.146 times the size\nof W(1), climbing all the way up to the 1923.7 key level, thus\nhalting the market flow at exactly this Fibonacci key level.
The high-steamed momentum of W(3) wave implies a deeper\nthan classic retracement (38.2%) of W(4) wave. On the other\nhand, you could say that this retracement is still in progress due\nto its current position in the OSC (5,35) indicator on the subchart\nin Figure 1 — outside the 0.90–1.40 W(4) zone. In addition, this\ntremendous parabolic trajectory occurred in 144 bars, a legendary\nGann number period — the square of 12 (12 x 12 = 144\nbars). This number will help define the future time retracement\ndegree of W(4) wave. Hence, it becomes necessary to be aware\nof the following numbers of bars when it comes to observing\ntime: 18, 36, 54, 72, 90, 108, 126, 144, and so on — numbers\nthat represent Gann ratios (eighths, quarters, and halves).
Before continuing, I think it’s necessary to mention something\nabout the validity of this type of labeling for the entire\nimpulsive pattern. The W(2) duration of 236 bars may appear\nto be confusing, but this W(3) wave labeling (Figure 1) is one\nof the most probable due to multiple confirming factors:"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-10-15-46-the-missing-link-part-2-by-mircea-dologa-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-10-15-46-the-missing-link-part-2-by-mircea-dologa-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-10-15-46-the-missing-link-part-2-by-mircea-dologa-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov311trsm,d,"{""minimum-quantity"":""1"",""path"":""ch10o209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:10 (16-19): Trading Smiles And Frowns by Thomas Bulkowski"",""caption-linebreaks"":""Trading Smiles And Frowns by Thomas Bulkowski
Patterns With Personality
Can a technique this simple really boost trading\nprofits? Find out more.
Buy smiles and sell frowns: It’s easy to remember,\nbut is it easy to trade? In this article I will\nshow you how this simple pattern-recognition\ntechnique works and how it could improve your\nbottom line.
How it works
Figure 1 shows an idealized trade. Price is the wavy\nblack line. In any trade, one price represents the\nperfect entry. Which of the labels — A, B, or C\n—represents the best buy price? The correct choice\nis B. Price bottoms at B, and forms the lowest price\non the chart.
Points A and C are at the same price, as denoted by\nthe horizontal dashed line. If you buy at point A, price\nis still heading down toward the perfect entry price.\nThis is the entry that novices often use when bottomfishing.\nThey see the stock dropping and feel that it\ncan’t go any lower, so they buy. The market knows\nbetter and continues to punish the stock, driving price\nlower. Within days of buying the stock, the trader who\nbought at point A is already losing money.
If the trader is lucky, price will bottom close to\ntheir buy price. If they are unlucky, price continues\nlower. Eventually, the pain of holding a stock whose\nvalue drops almost daily becomes so great that they\nfinally sell. Often, this happens about a week or two\nbefore the stock bottoms at B.
Obviously, A is a bad price to pay for the stock.\nYou don’t know where the bottom is, but you do\nknow that price is dropping (just look at the trend using a moving average, or switch to a line chart if\nthat helps).
Consider price C. It’s at the same value as A.\nBut it’s a better entry because price is moving up\ninstead of down. You are buying the stock after the\nperfect entry (B), but at least the worry of selling for\na loss is diminished — not absent, mind you, just\nlessened. Almost every day, price climbs, making\nprofits grow."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-16-19-trading-smiles-and-frowns-by-thomas-bulkowski-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-16-19-trading-smiles-and-frowns-by-thomas-bulkowski-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-16-19-trading-smiles-and-frowns-by-thomas-bulkowski-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov312exof,d,"{""minimum-quantity"":""1"",""path"":""ch10o209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:10 (20-25): An Expert Of A System by Sylvain Vervoort"",""caption-linebreaks"":""An Expert Of A System by Sylvain Vervoort
Colorized Candles
In this sixth part of a seven-part series, we look at an\nexpert trading system that color-codes candlesticks to\nsimplify entry & exit decisions.
When in doubt, follow the expert — except that this\nexpert is a trading system that will make your buy\n& sell decisions easier. Keep in mind there is no\nperfect expert that will make profitable trades all\nthe time. Your best chance for a profit at the end of\nthe day is to stay in a profitable trade for as long as possible\nand avoid entering losing trades. Together with good risk &\nmoney management, the odds will be in your favor.
An expert system that color-codes your candlestick chart\nwill give you the best possible indication of when to buy and\nwhen to sell. In the standard candle chart in Figure 1, a green\ncandle body indicates that the day closed with a price higher
than the opening price; a red candle body means the closing\nprice was below the opening price. On this chart, it’s not so\neasy to see where to take action.
Now look at Figure 2. It’s the same chart but color-coded by\nan expert color-coding system. With this chart, if you buy when\nthe candle color changes to green and sell or go short when it\nchanges to black, it’s fairly clear where you will buy and sell.
Besides having clearer indications for long or short positions,\nyou also have the advantage of the candlestick chart format\nitself. In Figure 2, a white or unfilled candle body means the\nday closed with a closing price above the opening price. A\nfilled body, either green or black, means the day closed below\nthe opening price of the day. Figure 2 shows a nice, profitable\nexample, but it will not always be that way!
Creating the expert
First, you need a rule that tells you when to go long and when\nto go short. This could be an extremely complicated setup with several rules, or it could be a simple approach\nsuch as a trend-following system using\nmoving averages and a crossover between two\naverages.
A crossover rule will work well as long as\nprices are trending. Unfortunately, as we know\nall too well, this is often not the case. The moving\naverages will cross and result in losses. Hence, it\nbecomes necessary to apply techniques to avoid\nthese unprofitable crosses as much as possible.\nAnd even then, with every signal you will have\nto decide whether to take the trade based on\nother technical analysis techniques.
To limit the volatility of the price change, I will\nnot use closing prices to create the expert indicator\n(“SVEHaTypCross”). I will use a smoothed\nversion of closing prices based on heikin-ashi\ncalculations on one side, and on the other side I\nwill use the typical closing price that is calculated\nby adding the high, low, and closing price and\ndividing the sum by three.
The first step is to create two new datasets,\none with the recalculated heikin-ashi closing\nprice (haC) and the other with the typical closing\nprice (typical):"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-20-25-an-expert-of-a-system-by-sylvain-vervoort-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-20-25-an-expert-of-a-system-by-sylvain-vervoort-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-20-25-an-expert-of-a-system-by-sylvain-vervoort-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov312bube,d,"{""minimum-quantity"":""1"",""path"":""ch10o209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:10 (26-30): Build A Better Moving Average by Richard D. Ahrens"",""caption-linebreaks"":""Build A Better Moving Average by Richard D. Ahrens
Smooth Those Spikes
Is it possible to have a moving average that minimizes\nzigzags and powers through the occasional price spike?\nFind out here.
Smoothing market price data sounds like a simple\nconcept, yet it is extremely difficult to do. We apply\nmoving averages to a time series to reduce noise and\nreveal the underlying trend with as little delay as possible. As\nsuch, there are three main elements we have to look at:
* Trend—\nIn digital signal processing (DSP), this is also\nreferred to as the signal.
* Noise—Gyrations inherent in any complex system.
* Delay—How long we have to wait to get an answer.
Moving averages essentially act as low-pass filters, that is, they\nare supposed to smooth away high-frequency noise and leave\nthe lower-frequency signal for us to view. The problem is that large price changes can overwhelm the smoothing\nability of short-term averages, and long-term averages\nintroduce so much delay that the answers are\nof limited use by the time we get them.
Is there an optimal average?
A 200-day simple moving average (SMA) does a\nwonderful job of getting rid of noise, but you have\nto wait 100 days to get an answer. An 11-day simple\nmoving average gets you an answer with only five days\nof delay, but doesn’t do much to quiet the noise. You\ncan see why it’s difficult to smooth price data!
Averages were originally intended to work with\nreasonably well-behaved data. Teachers of mathematics\nand statistics generally warn their students\nthat using an average isn’t useful for every kind of\ndata. An average always gives you an answer, but\nif the data is badly behaved, the answer may not be\nvery useful.
Market price data is particularly problematic because\nit is not normally distributed. Discontinuities\n(sudden jumps in price) happen frequently, and the\nsudden jumps in price tend to overwhelm moving\naverages and cause unwanted distortions in their\nresults. Market price data follows a power law distribution,\nalso known as the Laplace double exponential distribution,\nwhich means it will have frequent, large jumps (Figure 1).\nThis was documented as early as 1915 by Wesley Claire\nMitchell and later by Benoit Mandelbrot in the 1960s. These\nprice discontinuities constitute a special sort of noise, and\nfrom time to time it can be a significant issue. Sometimes\nprice will jump, leaving a sizeable gap, and then it gaps back\nto the previous level a few days later. Other times, it will gap\nup or down and simply stay at the new level."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-26-30-build-a-better-moving-average-by-richard-d-ahrens-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-26-30-build-a-better-moving-average-by-richard-d-ahrens-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-26-30-build-a-better-moving-average-by-richard-d-ahrens-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov313inor,d,"{""minimum-quantity"":""1"",""path"":""ch10o209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:10 (32-36): Intraday Or Swing Trader? by Josh DiPietro"",""caption-linebreaks"":""Intraday Or Swing Trader? by Josh DiPietro
The Perfect Fusion!
You can be both. Find out how this trader combines these two time frames to\ncreate a logical trading plan.
Can you define yourself as either an intraday trader or a swing trader? In my trading,\nI synergize both in a logical way, the reason being that intraday and swing\ntrading are not mutually exclusive.
Beginner and advanced traders\nenter my training program with\nexperience in both intraday and\nswing. However, very few traders\ncome to me knowing these facts:
1. You must learn intraday\ntrading prior to swing trading
2. Intraday and swing trading\nare interlinked.
When I first started trading in\n1998, I wish someone had taught\nme those facts. With regard to fact\n1, I hadn’t been properly coached.\nI would mistakenly trade an intraday\nsupport/resistance (S/R)\nlevel and then, if my trade was in\nthe red at market close, I would\nalways hold overnight. That’s a\nclassic mistake!
With regard to fact 2, I would\nfind strong swing trading levels,\nbut I would fail to account for\nnewly formed intraday trading\nlevels. In other words, I wasn’t\nadjusting my limit orders, so my\nswing trades were mostly off. I\nwas a mess!
I didn’t give up
It wasn’t until 2007 that I learned a\nconsistent system. I call it the Wall\nStreet way. I moved to Manhattan\nfrom San Diego and started trading\non a private equity floor. I’ll return\nto the Wall Street way in a bit. First,\nI want to map out the framework of\nmy methodology for both intraday\nand swing trading.
Most important, I only trade\nequities (stocks). This is because\nof all the securities, they are the\nmost transparent, and they don’t\nhave expiration dates or intrinsic\nvalue. Equities are best for\nsystems like mine that base their\nstrategy around key price levels.\nFor instance, if the stock price\nmoves 15 cents in either direction,\nthen your share value will remain\npar-value."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-32-36-intraday-or-swing-trader-by-josh-dipietro-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-32-36-intraday-or-swing-trader-by-josh-dipietro-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-32-36-intraday-or-swing-trader-by-josh-dipietro-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov313inch,d,"{""minimum-quantity"":""1"",""path"":""ch10o209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:10 (38-41): Interview: Charting The Future With Scott Brown by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Charting The Future With Scott Brown by Jayanthi Gopalakrishnan
Better Than Tea Leaves
Scott Brown is president of MetaStock and has been with the company for more\nthan 13 years. Initially hired to work in the sales department, Brown soon\nbecame an integral part of the company, working in almost every department.\nAs a product manager, he played a key role in the development of MetaStock\nversions 8, 9, 10, and 11. In addition to product management, Brown also\nmanaged business development and events, directed sales/marketing/support,\nthen finally taking the position of president in 2010. In 2013, seeing a need\nfor greater focus on the retail environment, Brown navigated the divestiture of\nMetaStock from Thomson Reuters.
Brown has presented at trade shows and trade associations as well as to\nindividual traders about technical analysis and MetaStock in more than 20\ncountries. Stocks & Commodities Editor Jayanthi Gopalakrishnan spoke with\nBrown on August 7, 2013 about using software to trade, developing systems,\nand the future of charting.
Scott,\ntell us a little bit about\nhow you got interested in the\nfinancial markets.
When I was growing up, my mother\nmanned the business library at Brigham\nYoung University, and that’s where I got\nintroduced to the financial markets. I\nwould use the Bloomberg terminal when\nI accompanied her to work. While in college\nI worked in the business library, and\nafter graduating, I worked for MetaStock\nbecause it was the one company in the\narea that was involved with the markets.\nMetaStock was looking for sales individuals\nand I worked for the company in sales.\nSince then, I’ve spent almost 13 years at\nMetaStock in sales, product management,\nas president, and doing everything in\nbetween. Recently, I bought the company\nfrom Thomson Reuters.
You have been with MetaStock for a\nwhile. What are some changes you\nhave seen in charting features over\nthe years?
One thing for sure is that markets\nare interconnected. These days, when\nyou wake up in the morning and turn\non the TV, or open up any type of business\nnewspaper or website, you will see what’s going on around the world.\nPeople interested in the markets want\nto know what happened the night before\nin the Asia Pacific region, where\nthe European markets are headed,\nand whether there’s been any global\nmishap that could affect our markets\nhere in the US. Over the years, people\nhave been looking at global data and\ntrying to figure out ways to read the data\ncorrectly, in the sense of how it can help\nthem with their trading.
Markets are definitely linked and I\nthink that’s a huge change that has happened\nover time, especially in the last\n10 to 15 years. Another thing that has\nchanged, of course, is the availability\nof charting. That’s a big change, since\npeople can get charts from all over the\nworld. They can get everything from\ntheir brokerages, they can get basic charts\nfree over the Internet, and they can get\nadvanced charts through different charting\nsoftware packages."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-38-41-interview-charting-the-future-with-scott-brown-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-38-41-interview-charting-the-future-with-scott-brown-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-38-41-interview-charting-the-future-with-scott-brown-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314exyo1,d,"{""minimum-quantity"":""1"",""path"":""ch10o209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:10 (42-43): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
CAN OPTIONS BE DAYTRADED?
Here’s a question I get asked from time to\ntime when I’m circling the globe to speak\nat events: Can options be daytraded for\nprofit? In the past, I would have answered,\nnot unless you want to give your money\naway over time. In the last year, however,\nI have changed my tune, researching and\neven trading options inside of a day. I\nnow answer with a yes, but answering\nthis question thoroughly takes more than\na one-word response.
Let’s get one thing straight right now:\nThere is no 100% winning system. I\nknow; I have spent over half my adult\nlife trying to find it, and I have accepted\nthat no matter whether you are a technical\nor fundamental trader, it’s not out\nthere. If it is, it’s probably illegal. Now\nthat we’ve got that out of the way, let’s\nconsider that with any option strategy,\nthere is a directional (or nondirectional)\napproach that a trader has to make. I\nhave a three-step process. Spotting the\nopportunity is first, and it’s not much\ndifferent for short- or long-term trades. If\nyou’re technical, a chart is a chart — it’s\njust that short-term traders have no room\nfor distractions. If you’re considering\na directional trade, what type of rulebased\nsystem will you use to trade? In\nshort-term trading or daytrading, I use a\nsystem based on a breakout of resistance\nlevels (or a breakdown from support\nlevels) with a few other indicators that I\nmix in to determine the likelihood that a\nstock will rise or fall during the day. The\nexample in Figure 1 uses Apple (AAPL)\non August 9, 2013.
As you can see from the chart, this was\na snoozer of a Friday. Fridays are often\nsnoozers, due to the lack of government\nreports, though sometimes traders will\npush the markets one way or another\neither to get out of or to hedge positions\nahead of the weekend. Taking a short\nposition on 100 shares of AAPL for the\nbetter part of the day would have cost\nbetween $10,000–45,500, depending\non the margin requirement at your brokerage.\nNevertheless, an $85 profit (the\namount the stock moved in your favor)\nfor the day isn’t much when it comes to\nreturn on investment (ROI) on this trade.\nCould there have been another way to\nmake this paltry amount without putting\nup the cost?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-42-43-explore-your-options-by-tom-gentile-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-42-43-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-42-43-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314qupi,d,"{""minimum-quantity"":""1"",""path"":""ch10o209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:10 (44-45): Quick-Scan: Pit-View.com by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Quick-Scan: Pit-View.com by Jayanthi Gopalakrishnan
Pit-View.com
ADVANCED MARKET\nSYSTEMS, LLC
13300-56 South Cleveland Ave., Fort Myers, FL 33907
Internet: www.pit-view.com
Email: sales@AdvancedMarketSystems.com
Product: Indicator used to find\ntrades in the forex market
Price: $89.99 per month
In a market in which around $5 trillion\nis traded each day, and one that is\ndominated by large financial institutions,\nit’s unsettling if not intimidating for the\nretail trader to want to be a part of this\ngroup. Yet it is possible for the retail\ntrader to make money in the currency\nmarkets; you just have to play the game\nin a different way.
Since the large financial institutions\ndominate this market, it’s necessary and\nimportant to keep track of what the banks\nare doing. The Pit-View indicator does\njust that by listing all the forex liquidity\nproviders and showing whether they are\nbuying or selling a specific currency pair.\nIt allows you to see when the liquidity\nproviders make their moves, when they\nchange direction, and whether there is\na follow-through on that move. And the\nnice thing is that it can be used on any\nforex platform: Pit-View is broker- and\ntrading platform–independent.
Here’s how it works
Pit-View has three major window types.\nThe most important is the Insiders\nMontage, which is a window that helps\nto identify the currency pairs that have\nstrong imbalances in bid/ask, tracks\nwhen the major liquidity providers in\nthe currency markets are changing their\nbid/ask activity, and reveals action that is\ngoing on in the inside bids/asks. There is\na unique ID for each liquidity provider,\nalthough you don’t know who or what\nthey are since banks like to remain\nanonymous. However, by following\nthe unique IDs, you can find out what a\ncertain liquidity provider is doing."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-44-45-quick-scan-pit-view-com-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-44-45-quick-scan-pit-view-com-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-44-45-quick-scan-pit-view-com-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314fufo4,d,"{""minimum-quantity"":""1"",""path"":""ch10o209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:10 (47): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
COMMODITY POOLS
What is a commodity pool? Is this a\nviable way to get into the commodity\nmarkets?
Commodity pools are essentially the\nmutual funds of the futures industry. By\ndefinition, a commodity pool is a private\ninvestment structure, typically a limited\npartnership, that combines the contributions\nof multiple investors to be used in\nfutures and option trading in the commodity\nmarkets. Simply put, a commodity pool\nis a fund that operates as a single entity to\nspeculate in the futures markets on behalf\nof the fund’s investors. Another way to look\nat a commodity pool is as a specialized\nhedge fund that deals only in futures, or\noptions on futures, traded on organized\nfutures exchanges and is registered as such\nwith the appropriate US regulators.
The term “commodity pool” is a legal\nword assigned to this type of fund by\nregulators. Commodity pools are regulated\nby the Commodity Futures Trading Commission\n(CFTC) and the National Futures\nAssociation (NFA). This is in stark contrast\nto traditional mutual funds, or even hedge\nfunds, which answer to the Securities\nExchange Commission (SEC).
The person, or entity, responsible for\nmanaging the commodity pool’s assets\nand the trading activity within the fund\nis referred to as the Commodity Pool Operator\n(CPO). A CPO differs greatly from\nthe alternative form of managed futures,\na Commodity Trading Advisor (CTA), in\nthe manner that client funds are allocated\nand traded. As mentioned, a CPO pools\ninvestor funds to create a single trading\naccount. Trades are executed within the\ncommodity pool account with profits and\nlosses allocated to participants based on\nthe size of their contribution to the fund.\nA CTA, on the other hand, instructs his\nclients to open individual accounts; any\ntrade executed by the advisor on behalf\nof his clients is done so directly in each\nindividual client account.
Investors of commodity pools typically\nopt to participate in the fund with the\nbelief they will have access to markets\nand trading strategies that they might not\notherwise be able to afford based on their\ncontribution size. Similarly, the pooled\nstructure enables investors to share market\nrisk with other investors, making it\nviable for smaller investors to participate\nin relatively high-risk trading strategies.\nThe pool investor’s risk is generally limited\nto the amount of his or her contribution\nto the fund, but any venture into such an\narrangement should include confirmation\nof risk details.
Although pools can be a great way for\nsmall investors to get involved in the commodity\nmarkets with relatively little trading\ncapital, there are some glaring drawbacks\nto pooled arrangements compared to a\nmore traditional CTA-managed account.\nHere are a few to mention:"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-47-futures-for-you-by-carley-garner-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-47-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-47-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314prre4,d,"{""minimum-quantity"":""1"",""path"":""ch10o209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:10 (48-50): Product review: EquityFeed by Technical Analysis Inc."",""caption-linebreaks"":""Product review: EquityFeed by Technical Analysis Inc.
EQUITYFEED CORP.
5485 Pare, Suite 204,\nMontreal, Quebec H4P 1P7, Canada
Email: service@equityfeed.com
Website: www.equityfeed.com
Phone: 855 853-6666
Product: Real-time trading platform for\nretail traders
Price: $180/month for US equities
quityFeed, a Java-based software\nproduct, delivers real-time market\nquotes. The exchanges supported by\nEquityFeed include the NYSE, AMEX,\nNASDAQ, OTCBB, and pink sheets.\nAn attractive feature of EquityFeed\nis that streaming data is provided for\nall the equities in the aforementioned\nexchanges in one table, which in turn\nfacilitates sorting and filtering. The data includes price quotes, volume,\nnumber of trades, bid, ask, and\nso on. To send all of this data,\na proprietary compression\nalgorithm is used. EquityFeed\nemploys an SaaS (software as\na service) paradigm. You’ll\nwant the latest version of Java\ninstalled on your computer to\nrun EquityFeed.
Overview
Rather than use one large window\nwith a menu line, EquityFeed opted\nto create a small screen from which you\ncan select items of interest. The small\nscreen is called the LaunchPad (Figure\n1). Click on the item of interest and it will\nexpand to give you more choices.
Market View
EquityFeed’s principal screen is the Market View screen (Figure 2). If, after\nselecting it from the LaunchPad, you\ndon’t see it, look on the Windows task\nbar for an image of the Market View\nscreen. Right-click, select move, and\nthen use your arrow keys to position it\nwhere you want it to be on the screen.\nAs you can see, the Market View screen\nis a table of values. Columns can easily\nbe added or deleted by clicking on a\ncolumn header. Across the top of the\nMarket View screen, you see buttons\nthat allow you to filter, select specific\nstock types, or select specific market\ntypes. The filter allows you to specify\nthe usual criteria such as price or\nvolume (more about this later). There\nis a five-letter naming convention for\nNASDAQ symbols that allows you to\nidentify stock types, such as class A or\nclass B shares. There are 26 different\nstock types corresponding to the 26\nletters of the alphabet, and EquityFeed\nsupports 20 of those."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-48-50-product-review-equityfeed-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-48-50-product-review-equityfeed-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-48-50-product-review-equityfeed-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov315qaby3,d,"{""minimum-quantity"":""1"",""path"":""ch10o209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:10 (51): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
WHAT IS THE BEST INVESTMENT?
Recently, I inherited some money and\nhave been deluged with people offering\nme great advice on how to invest\nthis money. I don’t really understand\nthe markets very well, but I was given\nyour name from a friend in hopes that\nI could learn more.
I have been reading that the stock\nmarket has been growing at rates from\n5–12% or even more. Brokers tell me\nthat long-term stocks are the best investments.\nI realize they make their money\nfrom investors who buy and sell stocks,\nso I have to question their motives.
I was told to look into mutual funds\nas well. There seems to be hundreds of\ndifferent funds sold by many different\nbrokers.
Can you shed some light on the numbers\nabove? Do you have any suggestions\nfor me? I don’t need income or use of this\nmoney for some years. – Cesarsghost\nYour questions remind me of my seven\nyears of doing our radio show, Stocktrading\nWith The Bright Brothers. Even\nthough we focused on trading stocks for\na living, we would always do our best to\nanswer all questions asked. You are right\nabout brokers or investment advisors;\nalways do your own due diligence.
First off, let me explain a bit about\n“returns” and “growth.” There are many\nways to determine if the overall market\npays off more than inflation. Let us start\nwith the Dow Jones Industrial Average\n(DJIA). This index consists of 30 largecap\nequities. Those equities determine\nthe average value to get the index value\n– and this can be tricky. Of the original\n30 stocks in the DJIA, I believe only one\n(GE) is still in the DJIA. The components\nare changed periodically; some call this\n“replacement accounting.” So if you had\ninvested in all 30 original stocks, you\nwould not have much left today.
The same thing applies to the S&P\n500 stocks, except that the S&P has 500\nlarge-cap stocks vs. only 30 for the DJIA.\nThis index is controlled by Standard &\nPoors, and they too replace symbols from\ntime to time. So it is doubtful that the\noverall markets have returned anywhere\nnear the numbers you were told."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-51-q-a-by-don-bright-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-51-q-a-by-don-bright-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-51-q-a-by-don-bright-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov315trti5,d,"{""minimum-quantity"":""1"",""path"":""ch10o209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:10 (52-61): Traders’ Tips by Technical Analysis Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis Inc.
For this month’s Traders’ Tips, the focus is Sylvain\nVervoort’s article in this issue, “An Expert\nOf A System.” Here we present the October\n2013 Traders’ Tips code with possible implementations\nin various software.
Code for NinjaTrader is already provided\nin Vervoort’s article. Subscribers will find that\ncode at the Subscriber Area of our website, www.Traders.\ncom. (Click on “Article Code” from the S&C menu.)\nPresented here is an overview of possible implementations\nfor other software.
Traders’ Tips code is provided to help the reader implement\na selected technique from an article in this issue.\nThe entries are contributed by various software developers\nor programmers for software that is capable of customization.
Readers will find the October 2013 Traders’ Tips code\nand formulas at our website, Traders.com, in the Traders’\nTips area. Here, you can read some discussion of the\ntechnique’s implementation by the Traders’ Tips contributors\nas well as some example charts.
To locate Traders’ Tips at our website, click on the link\nfrom our home page, or use our site’s search engine."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-52-61-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-52-61-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-52-61-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov316bofo5,d,"{""minimum-quantity"":""1"",""path"":""ch10o209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:10 (62): Books For Traders by Technical Analysis Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis Inc.
Visual Guide To Elliott Wave Trading\n(263 pages, $40.58 softcover,\n2013,\nISBN 978-1-118-44560-0) by Wayne\nGorman and Jeffrey\nKennedy, published by Bloomberg Press.
This guide provides practical guidance on\nhow to use Elliott wave theory to find, assess,\nenter, and manage trades by raising\nor lowering protective stops. It also covers\nexiting trades. It offers a realistic look\nat how the reader can become a better Elliottician\nand a more consistently successful\ntrader. Divided into three parts, it opens\nwith an introduction to the anatomy of Elliott\nwave trading. Part 2 provides practical\nexamples step-by-step through the authors’\nthinking during trades they made,\nand setups you may encounter in your own\ntrading. Part 3 rounds out the discussion\nby going beyond the basics to address how\nyou can apply other indicators to your trading\nand how to use wave analysis and option\nstrategies.
Advanced Options Course (DVD, $400,\n2013, ISBN 978-1-118-62694-8) by\nPri ce Headley,\npublished by Wiley.
This multi-DVD set\nfrom Price Headley,\nfounder of Big-\nTrends.com, offers\nfull coverage of advanced\noption trading.\nDVDs in the set\ninclude Automate Your Option Trading: The\nSecrets To Generating Winning Trades,\nwhich offers a simple approach to building\na personal trading system that minimizes\nlosses and locks in wins; Profiting From Big\nTrends: Using Options To Catch Big Market\nMoves, which offers a system with market\nentry & exit rules for identifying stocks\nbefore they make big moves; The 7 “Golden\nRules” For Option Trading Success,\nwhich presents a seven-step program for\nweathering market events and profiting\nfrom them; High-Impact Options Trading:\nOption Profits Through Superior Stock Selection,\na hands-on workshop for improving\nmarket timing and trading skills, including\nadvice on spotting trends, targeting\ngood stocks, and using indicators effectively;\nand Using Option Charts To Boost\nTrading Profits, which offers an option trading\nsystem that uses simple charting techniques\ntaken from BigTrends.com. Together,\nthese DVDs offer much education on\nthe ins & outs of option trading."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-62-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-62-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-62-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov316tras,d,"{""minimum-quantity"":""1"",""path"":""ch10o209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:10 (65-66): Trading As A Business by Jerry Cartwright"",""caption-linebreaks"":""Trading As A Business by Jerry Cartwright
Get a different perspective by following these six principles.
Very few traders treat trading like the serious business it is. Most approach it like a\nhobby. While trading is a lot of fun, it’s still a business, and if you don’t frame it —\nthat is, approach it with the attitude that it’s a business — you will not do well in the\nlong run. Here’s a different twist to help you see your trading in a different light.
1. Think of it this way: As a trader, you have a “trading company.” It just so happens\nthat you are the head trader. As with any other job, you should have a job description\n(that is, your trading plan). You should know exactly what your daily duties are as the\nhead trader. You should have your daily quota or trading goal already set, just as with\nother businesses. And you should have rules and guidelines for your business so you\nknow how to handle any situation that comes your way during the trading day.
2. You have shareholders — they are your spouse, your kids, your business partner,\nand so on. They are expecting a positive return on their investment. Yes, they too have invested time and money\nin your business, and as the\n“CEO” of your trading company,\nyou have a fiduciary\nresponsibility to trade according\nto company policy and to\nturn a profit. All businesses\nare expected to turn a profit,\nand your trading company is\nno different."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-65-66-trading-as-a-business-by-jerry-cartwright-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-65-66-trading-as-a-business-by-jerry-cartwright-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-65-66-trading-as-a-business-by-jerry-cartwright-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov318leto5,d,"{""minimum-quantity"":""1"",""path"":""ch10o209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:10 (8–9): Letters To S&C by Technical Analysis Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis Inc.
BACK TO BASICS
Editor,
What’s the newest craze in commodity\ntrading? Going back to basics, as Ronald\nStuart requested in his letter to S&C in\nyour August 2013 issue.
I have been teaching the basics of\ntrading for more than 10 years. I am now\nsemi-retired from trading, but when I\nstarted trading in 1984, I read Commodity\nPerspective magazine. Each day, I filled\nin charts by hand. Each day, the tally\nsheet would come in the mail and you\nhad three days to correct any mistakes.\nThose who were traders did better, as\neach trade had to be written down and\nchecked against the broker’s sheet that\nwas mailed. There were only three data\nsuppliers then. But my old Epson 286\nwith a math coprocessor was great, as\nwas my CQG data via satellite on a\nmonochrome screen. All orders had to\nbe called in via phone. The library had\nonly two dozen books on its shelves\nabout trading, and most were historical\ncharts. I sent away for free booklets from\nbrokers that advertised in the Wall Street\nJournal on “how to place an order” —\nyes, we had to place orders by phone in\na specific wording order.
I received several booklets that I still\nkeep next to my desk today, from Lind-\nWaldock, the CME, CBOT, and works\nby Jake Bernstein, Larry Williams, plus\na few inept how-to books on technical\nanalysis. Then I came across George\nLane and stochastics, and next J. Welles\nWilder’s book. From then on, I was a\ntiger, making up to 50 trades a day.
I now teach. I’ve taken dozens of\nclasses over the years — several from\nGeorge Lane himself. I am a bit partial\nsince he developed stochastics while at\nthe University of Michigan and I am a Michigander. He used a Univac in\n1955–57 that took up a room as big as\nmy living room today. Today, our cell\nphones have more computing power\nthan that Univac did. From many of\nthe classes and seminars that I have\ntaken, it seems that no one really knows\nhow to use stochastics. Calculating it\nby hand, as well as making a “jig” to\ndo backtesting, was work. A “jig” is a\ntemplate; after taping several years of\nCommodity Perspective together on the\nwall, I would trace back the algorithm\nI was backtesting via the template and\nsee if my calculations worked. Today,\npeople think the computer will do it all\nfor you."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-8-9-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-8-9-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-10-8-9-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov311unyi,d,"{""minimum-quantity"":""1"",""path"":""ch11n2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:11 (10–17): Understanding The Yield Curve, Part 1 by Giorgos E. Siligardos, PhD"",""caption-linebreaks"":""Understanding The Yield Curve, Part 1 by Giorgos E. Siligardos, PhD
The Shape Of Things To Come
Understanding The Yield Curve Part 1
In this two-part series, you’ll get a comprehensive\nreview of yield curve analysis and how it can be\napplied to making decisions in the stock market. In\nthis first part, we’ll look at basic theory as well as\nsome guidelines for how discretionary investors can\nuse it to gauge the investing landscape.
Understanding macro perspectives\ncan provide\nsome added insight into\nyour analysis. I touched on this\nidea in my August 2012 Stocks\n& Commodities article “Applying\nThe Sector Rotation Model,”\nin which I introduced a simple\nindicator that can help quantify\nthe flow of money between expansionary\nand recessionary\nstock market sectors. Quantifying\nthe money flow will uncover\nthe macro investors’ actions and\nprojections about the entire stock\nmarket. In this article, I will focus\non another interesting and useful\nanalysis tool, directly from the\narsenal of macroeconomics —\nthe yield curve.
In this first part, I will outline\nthe basic theory behind the yield\ncurve and explain why it’s important\nfor you to keep an eye on it\nfor your long-term analyses. I will\nalso discuss basic usage guidelines\nfor discretionary investors.
What is the yield curve?
Throughout this article, the term yield curve (YC)\nwill refer to a curve created using the annualized\nyields-to-maturity (that is, the annualized interest\nrates paid when you use compound interest) of various\ngovernment debt securities (GDS) of the same\ncountry across all possible\nmaturities in a yield-maturity\nchart. Theoretically, the YC can\ntake any shape, but it usually\nmanifests itself in one of three\nvarieties: positive, flat, or negative\n(see Figure 1)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-10-17-understanding-the-yield-curve-part-1-by-giorgos-e-siligardos-phd-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-10-17-understanding-the-yield-curve-part-1-by-giorgos-e-siligardos-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-10-17-understanding-the-yield-curve-part-1-by-giorgos-e-siligardos-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov311apir,d,"{""minimum-quantity"":""1"",""path"":""ch11n2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:11 (18-27): Applying The IRSTS Swing Trading Rules by Sylvain Vervoort"",""caption-linebreaks"":""Applying The IRSTS Swing Trading Rules by Sylvain Vervoort
The Grand Finale!
Applying The IRSTS Swing Trading Rules
This seven-part series has thus far provided the components of\nthe indicator rules for a swing trading strategy (IRSTS), from\ncolor-coding candlesticks to smoothing oscillators to creating\nan expert system. Now that all of the components have been\ndetailed, here’s how you can put this swing trading strategy\nto use in your trading.
In this seventh and final part of my series on indicator\nrules for a swing trading strategy (IRSTS), I will\nshow you how you can apply the IRSTS rules to make\ntrading decisions. But before diving into it, I’ll first review\nsome general trading guidelines and principles.\nGeneral trading guidelines
1. Trading long and short: It’s as easy to trade a short position\nas it is a long position. Trading long means buying a stock in anticipation of a price rise. You want to make a\nprofit when the stock price rises by selling it at a higher\nprice. When you trade a short position, you are essentially\nselling a stock that you do not have in your possession. In\nother words, you are borrowing the stock. You make money\nwhen the stock price goes down by buying the stock back at\na lower price, closing the lending transaction. Please keep\nin mind it is much more difficult to make money trading\nshort because while a stock can drop only 100%, there is\nno limit to how far it can rise.
2. Spread the risk: Trading a single stock or bond of a\ncompany is risky. If that company goes broke, all your\nmoney is lost.
3. Compound profits: One of the most powerful moneymaking\ntactics is compounding profits. This means that\nyou must reinvest at least part, if not all, of your profits\nin upcoming trades."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-18-27-applying-the-irsts-swing-trading-rules-by-sylvain-vervoort-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-18-27-applying-the-irsts-swing-trading-rules-by-sylvain-vervoort-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-18-27-applying-the-irsts-swing-trading-rules-by-sylvain-vervoort-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov312reme,d,"{""minimum-quantity"":""1"",""path"":""ch11n2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:11 (28–33): The Repeated Median Velocity Strategy, Part 1 by Dennis Meyers, PhD"",""caption-linebreaks"":""The Repeated Median Velocity Strategy, Part 1 by Dennis Meyers, PhD
There’s More To It Than Luck
It sounds complicated, but it’s actually simple. In this first part of a two-part\nseries, find out how to use this strategy to place buy & sell orders as well as the\nbest way to test the strategy.
In a May 1998 Stocks & Commodities\narticle, I examined\na trading system that used the velocity\nof prices fit by a least-squares straight\nline through N past prices to determine\nbuy & sell points. The reasoning behind\nthis type of system was to only\ntrade when the straight-line slope or\nvelocity was above a certain threshold.\nOftentimes, during the day, prices\nmeander without a notable trend.\nWhen prices move around like that,\nwe don’t want to trade because of the\nwhipsaw losses that can occur from\nthis type of price action. When a price\ntrend finally begins, the velocity of\nthat price trend moves above some\nminimum threshold value. Thus, the\nvelocity system would only issue a\ntrade when certain velocity barriers\nwere crossed.
The least-squares polynomial is\ndetermined by minimizing the sum\nof the squares of the difference between\nN prices and the value of the\npolynomial line:
******
This mathematical technique has an\nexact solution that dates back to mathematician\nand scientist Carl Friedrich\nGauss in the 1800s.
The point of breakdown
Recently, a lot of work has been done\nin what is called robust regression and\noutlier detection techniques. Robust\nregression techniques are now defined\nby a measure called the breakdown\npoint. The breakdown point is loosely\ndefined as the smallest amount of bad\ndata points that can cause the regression\ncoefficient solutions to take on\nvalues some distance from their true\nvalues. Unfortunately, the leastsquares\ntechnique has a breakdown\npoint of 1/N. In other words, just one bad data point can significantly change the computation of the velocity or slope\nof a straight line. The median of a set of numbers has a breakdown point of\n50%. This is because when 50% of the numbers are bad, then there is no way\nof telling which are the bad numbers and which are the good numbers. The\nhighest breakdown point is 50%."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-28-33-the-repeated-median-velocity-strategy-part-1-by-dennis-meyers-phd-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-28-33-the-repeated-median-velocity-strategy-part-1-by-dennis-meyers-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-28-33-the-repeated-median-velocity-strategy-part-1-by-dennis-meyers-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov313rema,d,"{""minimum-quantity"":""1"",""path"":""ch11n2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:11 (34–39): Reversing MACD: The Sequel by Johnny Dough"",""caption-linebreaks"":""Reversing MACD: The Sequel by Johnny Dough
Indicator Crossing Ahead!
Here’s a look at a function that calculates what the price of\nthe next bar would need to be for the MACD line and signal\nline to cross.
It's not uncommon to stare at an indicator on a chart and\nwonder what it will take for a price signal to be generated\nby that indicator. In my January 2012 Stocks & Commodities\narticle “Reversing MACD,” I discussed a couple of\nfunctions that were based on the relationship of the moving\naverage convergence/divergence (MACD) line. You could\nplot those functions on a price chart with price projection\none bar ahead. One function showed the price required for\na change in the direction of MACD. The other showed the\nprice required for the MACD line to cross a certain value\nlevel. Specifically, when you are looking at MACD crossing\nthe zero level, you can anticipate the price required for the\ncrossing of the two exponential moving averages used to compute the MACD line.
In this article, I will look at one relationship based on the\nMACD line and its signal line to price. I will also show three\nsimilar price functions for the MACD formula using simple\nmoving averages.
Macd and signal
The MACD was created by Gerald Appel. It’s calculated using\ntwo exponential moving averages (EMAs) of different lengths\nand is the value of the shorter (fast)–period EMA less than\nthe value of the longer (slow)–period EMA.
In the fall of 1986, Thomas Aspray developed an indicator\nhe called the MACD-histogram (MACD-His). It’s based on\nthe spread of the MACD and signal lines and is commonly\nseen plotted as a histogram with the MACD or as an indicator\nby itself. It is also known as MACDH. Visually, it shows\nclearly the size of the spread and the crossing of the MACD\nand signal lines. Aspray used divergences to produce reliable\nsignals before those of the MACD."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-34-39-reversing-macd-the-sequel-by-johnny-dough-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-34-39-reversing-macd-the-sequel-by-johnny-dough-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-34-39-reversing-macd-the-sequel-by-johnny-dough-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314cath,d,"{""minimum-quantity"":""1"",""path"":""ch11n2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:11 (40–43): Catch That Trend by Ryan Henry"",""caption-linebreaks"":""Catch That Trend by Ryan Henry
Can It Be So Simple?
Is instinct all it takes to succeed in the markets? Do you really need to use\nindicators, chart patterns, and trading systems? Find out how this trader’s\napproach is just a little different from the way most traders approach the market.
We all try to find a way to\ntrade in the direction of\nthe most dynamic trends in hopes\nof watching price — and our trading\naccounts — explode favorably. Some\ntraders use a trend-following model\nto accomplish this. Others prefer\ncountertrend or reversal methods\nthat seek to identify pending changes\nin direction before they even show\nup on the chart. The tools used to\nachieve these goals are varied. There\nare tons of technical indicators that\nattempt to predict changes in momentum,\nunseen weakness or strength,\nunappreciated changes in volume,\nunderlying complacency, or basic\ntrendiness.
Then there is the price approach.\nWe can try to identify price patterns\nthat have been successful in the\npast, we can attempt to label waves\non price charts, we can use point &\nfigure charts to remove the noise\nof price fluctuations, or we can use\nany number of available techniques.\nYet despite all of these ways to\nmanipulate market data in search\nof an edge, none have proven to be\nthe golden ticket. One of the biggest\nbenefits of today’s high-powered\ntrading technology is that we can\ntest anything that is quantifiable to\nsee if it really works, both in today’s\nand yesterday’s marketplace. But do\nthese entry strategies perform better\nthan a random entry?
The holy grail
If one particular method was head and\nshoulders above the rest (and I’m not\ntalking about a head & shoulders price\nformation), we’d all know about it\nand the edge would disappear shortly\nthereafter. Is there a way to get in on\ndynamic trends without spending the\nrest of our lives searching for the holy\ngrail? There is, and it has to do with\nkeeping things ridiculously simple,\nfocusing more on the exit strategy\nas opposed to the entry strategy, and\nexpanding your horizons to make sure\nyou catch the trends no matter where\nthey are occurring."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-40-43-catch-that-trend-by-ryan-henry-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-40-43-catch-that-trend-by-ryan-henry-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-40-43-catch-that-trend-by-ryan-henry-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314intr,d,"{""minimum-quantity"":""1"",""path"":""ch11n2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:11 (44–47): Interview: Trading Futures With Scott Slutsky by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Trading Futures With Scott Slutsky by Jayanthi Gopalakrishnan
From Chalk Boards To Screen Trading
Scott Slutsky has more than 30 years’ experience in the futures industry. For 20\nyears he was a currency trader and broker at the Chicago Mercantile Exchange.\nIn addition to trading for his own account, he managed and filled orders in various\ntrading pits for firms such as Goldman Sachs, Morgan Stanley, and Lehman\nBrothers. Long active in industry affairs, he is a former director of the CME and\nis a current director of the CME Group Political Action Committee. In 2012, he\nformed BRICS Global Markets, where he is president and CEO. Based in Chicago,\nthe firm offers specialized global clearing and execution services, financial\nconsulting services, and fund management expertise. Since 2000, he has traveled\nthe world promoting the futures industry. He is the author of three books: Masters\nOf The Futures, The Complete Guide To Electronic Trading, and The Promises\nAnd Pitfalls Of FX.
Stocks & Commodities Editor Jayanthi Gopalakrishnan spoke with Slutsky on\nSeptember 9, 2013 about the transition from floor trading to screen trading and\nwhat he enjoys most about the industry.
Scott, how did you get interested\nin the financial markets?
I consider myself lucky — I\nbasically grew up in the futures industry.\nMy father was an egg trader at the Chicago\nMercantile Exchange (CME) in the\nearly ’60s. My first summer job was at\nthe CME working on the chalkboards in\nthe foreign currencies. In those days, we\nhad to run back and forth to the different\ncurrency boards putting up bids, offers,\nand trades. After the close, we would\ntake a Polaroid picture of the settlement\nprices and eventually that went out across\nthe financial wire services to customers\naround the world.
Having developed a passion for currencies,\nI later purchased my own CME\nmembership and traded the Swiss franc,\nJapanese yen, and the euro currency for\nthe next 25 years. Then, in 1990, I was\nfortunate enough to have been elected to\nthe CME’s board of directors, and that\ntruly was the best learning experience\nof my life. I had the unique opportunity\nto participate in shaping the future of\nfutures."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-44-47-interview-trading-futures-with-scott-slutsky-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-44-47-interview-trading-futures-with-scott-slutsky-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-44-47-interview-trading-futures-with-scott-slutsky-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314fufo5,d,"{""minimum-quantity"":""1"",""path"":""ch11n2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:11 (49): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
SO MANY CHOICES
Which futures markets should I focus on,\nand which should I avoid?
Ultimately, the key to fluid and reasonable\nprice action is liquidity. As we\nall know, even in the deepest and most\ncommonly traded markets there will be\ntemporary lapses in judgment that cause\npricing to enter ridiculous territory. Nonetheless,\nsuch abhorrent pricing happens\nfar more frequently in thinly traded futures\nmarkets. As a result, traders should fight\nthe urge to play exotic markets; instead,\nthey should stick to those with efficient\nprice discovery.
Ideal commodity markets: Futures markets\nwith attractive liquidity include\nTreasuries (10-year notes and 30-year\nbonds), eurodollars, certain stock indexes\n(emini S&P and emini NASDAQ), crude\noil, grains (corn, wheat, and soybeans),\nand the euro.
Viable commodity markets: Commodity\nmarkets that are liquid — but that\nshould be seen as venues to trade a bit\nmore sparingly — are alternative stock\nindexes such as the S&P Midcap, the\nRussell 2000, the full-sized S&P, and\nthe NASDAQ.
Similarly, natural gas and unleaded\ngasoline markets tend to be more treacherous\nthan crude oil; this is particularly\ntrue in the option markets in which traders\ntypically face substantial spreads between\nthe bid & ask.
In the grain complex, traders sometimes\nenjoy the relatively lower volatility in soy\nbyproducts (soybean meal and soybean\noil). These futures and option contracts\nare viable candidates for futures traders\nbut are on the thin side. Further, option\ntraders would want to keep any position\nin either of these products to a minimum.\nShould the “going get tough,” it might be\ndifficult for the market to efficiently price\noptions causing traders to be forced into\nunfortunate fill prices.
The major currency futures contracts are\nliquid markets; specifically, the yen, the\nBritish pound, the Canadian dollar, and the\nAussie see in excess of 100,000 contracts\ntraded on a daily basis. Options written\non currency futures are not always highly\nliquid, but they are certainly tradable, and\nthe CME provides very capable market\nmakers to help in the price-discovery\nprocess. In our view, the euro futures\nand option contracts are the preferable\nvehicles in the currency complex because\nthey typically see twice the volume of the\naforementioned currency products."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-49-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-49-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-49-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov315prre4,d,"{""minimum-quantity"":""1"",""path"":""ch11n2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:11 (50–52): Product Review: Dr. Stoxx Trend Trading Toolkit by Technical Analysis Inc."",""caption-linebreaks"":""Product Review: Dr. Stoxx Trend Trading Toolkit by Technical Analysis Inc.
MetaStock
90 South 400 West, Suite 620, Salt Lake City, UT 84101
Phone: Sales: 800 508-9180; support: 801 265-9998
Email: sales@metastock.com,\nsupport@metastock.com
Internet: www.MetaStock.com
Product: Add-in for MetaStock
System requirements: Same as for\nMetaStock
Price: $399
Thomas Carr, or “Dr. Stoxx” as he\nis known, is the brains behind the\nDr. Stoxx Trend Trading Toolkit,\na MetaStock add-on. Carr’s website,\nwww.drstoxx.com, offers daily stock\nand exchange traded fund (ETF) picks\nby subscription. Carr has had two books\npublished, Trend Trading For A Living\nand Micro-Trend Trading For Daily\nIncome. The former is written from the\nstandpoint of multiday trading, while\nthe latter is for intraday trading (that\nis, daytrading). Carr’s resume includes\ninterviews by the Wall Street Journal,\nInvestors Business Daily, and US News\nAnd World Report, and he holds a master’s\nand doctorate in philosophy from\nOxford University in the UK. For 16\nyears he held an associate professorship\nat the University of Mount Union in\nOhio. He is currently a full-time trader,\ntrainer of traders, and fund manager. His\ncompany, Kingdom Capital, manages\nThe 8.18 Fund.
Overview
Carr got interested in the equity markets in\nthe early 1990s. His initial efforts focused\non fundamental analysis, but he later began\nto include technical analysis. He spent\ntime each day studying charts and building\nwatchlists. He looks for candlestick patterns as well as bigger patterns such as\nflags, head & shoulders, and so on. The\nresults of those efforts are captured in his\nbook Trend Trading For A Living. In fact,\nthe Dr. Stoxx add-on lets you mirror Carr’s\nprocess, except that the task of screening\nis automated via the add-on. Sometimes\nthese screens will result in a dozen or\nmore candidates. Dr. Stoxx filters those\nby using fundamental data."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-50-52-product-review-dr-stoxx-trend-trading-toolkit-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-50-52-product-review-dr-stoxx-trend-trading-toolkit-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-50-52-product-review-dr-stoxx-trend-trading-toolkit-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov315exyo3,d,"{""minimum-quantity"":""1"",""path"":""ch11n2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:11 (53): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
“Last In, First Out”
Want to trade options just one day a month?\nOne of my students wanted to and was\nasking me about it at a recent West Coast\nseminar. It seems this option trader wants\nto trade options short-term, based on a well\nknown — and pretty good — system that\nsignals a bullish day in the stock market\neach month. That’s right, he wants to enter\nthe market at the close of business on one\nday and exit the position the following\ntrading day at the open, and wanted to\nknow which option strategy would best\nfit his bullish prognosis. Now that I have\npiqued your interest, let me first explain\nthe seasonal (or psychological) tendency\nbefore discussing using options as a surrogate\nfor the asset.
First trading day of the month\nI first learned of this pattern from\nJeffrey Hirsch, cofounder of the Stock\nTrader’s Almanac. It seems there is\na tendency for the stock market to\nmove higher over the first trading\nday of each month. Why does this\ntendency happen? It has long been\nthought that hedge fund, mutual\nfund, and retirement fund managers\nare putting money to work at the end\nof each month and the beginning of\nthe following month, adding to their\npositions. Even if this is just hearsay,\nthe idea alone is enough for the crowd\nto push money to the buy side. A\npush on various large-cap stocks is\nenough to move the index markets\nfor that day. When does this move actually\noccur, how much of a move happens,\nand most important, how can a trader take\nadvantage of this?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-53-explore-your-options-by-tom-gentile-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-53-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-53-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov315qucr,d,"{""minimum-quantity"":""1"",""path"":""ch11n2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:11 (54–55): Quick-Scan: Cracking The Money Code by Darrell Jobman"",""caption-linebreaks"":""Quick-Scan: Cracking The Money Code by Darrell Jobman
Cracking The Money Code
LnL Publishing, LLC
5013 Chandlers Wharf, Christiansted, VI 00824
Internet: www.ireallytrade.com
Product: Fundamentals trading course\nas a 185-page manual plus videos
Price: $249
Anyone who has been trading the markets\nfor a while is probably familiar with Larry\nWilliams, the innovator and developer of\nnumerous trading concepts and custom,\nproprietary indicators during a trading\ncareer spanning nearly a half century.\nAs his website, www.ireallytrade.com,\nimplies, he still really trades.\nThe essence of all of his years of\ntrading knowledge and experience is\ngathered together in Williams’ core fundamentals\ncourse, Cracking The Money\nCode, now available online. It’s not a\nnew course, having been developed and\nrefined over the past 15 years to keep\npace with changing market conditions\nand prices.
What is new is that Williams has collaborated\nwith Lane Mendelsohn and\nMendelsohn’s R&D team to program\nWilliams’ indicators within Mendelsohn’s\nTradeShark analytic trading\nplatform.
Although TradeShark is a comprehensive\nanalytic platform, Williams’\nstudents will have access within Trade-\nShark to his unique indicators without\nhaving to delve into TradeShark’s other\ncapabilities or do any programming\nwhatsoever.
It may surprise some traders that Williams,\ndeveloper of so many technical\ntools associated with chart analysis, is\na fundamentalist at heart; before paying\nattention to technical chart setups,\nhe looks for fundamental conditions to\nbe in place that create the conditions\nneeded to produce the trending moves\nthat account for most trading profits."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-54-55-quick-scan-cracking-the-money-code-by-darrell-jobman-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-54-55-quick-scan-cracking-the-money-code-by-darrell-jobman-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-54-55-quick-scan-cracking-the-money-code-by-darrell-jobman-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov315trti6,d,"{""minimum-quantity"":""1"",""path"":""ch11n2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:11 (56–62): Traders’ Tips by Technical Analysis Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis Inc.
For this month's Traders' Tips, the focus is Johnny Dough's article in this issue. \""Reversing MACD: The Sequel.\"" Here we present the November 2013 Traders' Tips code with possible implementations in various software.
Code for AmiBroker is already provided in Dough's article. Subscribers will find that code at the Subscriber Area of our website, www.Traders.com. (Click on \""Article Code\"" from the S&C menu.) Presented here is an overview of possible implementations for other software.
Traders' Tips code is provided to help the reader implement a selected technique from an article in this issue. The entries are contributed by various software developers or programmers for software that is capable of customization.
Readers will find the November 2013 Traders' Tips code and formulas at our website, Traders.com, in the Traders' Tips area. Here, you can read some discussion of the technique's implementation by the Traders' Tips contributors as well as some example charts.
To locate Traders' Tips at our website, click on the link from our home page, or use our site's search engine."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-56-62-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-56-62-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-56-62-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov316bofo6,d,"{""minimum-quantity"":""1"",""path"":""ch11n2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:11 (65): Books For Traders by Technical Analysis Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis Inc.
Keene On The Market (229 pages, $75\nhardcover, 2013, ISBN 978-1-118-59076-8)\nby Andrew Keene,\npublished by John\nWiley. Options can\nprovide a high-leverage\napproach to trading\nthat can significantly\nlimit the overall\nrisk of a trade or\nprovide additional income.\nOption expert\nAndrew Keene helps\naspiring investors to enter this sector by explaining\nthe principles of the option market\nand showing readers how to utilize calls &\nputs. Written for beginners as well as experienced\noption traders, Keene On The\nMarket covers a lot of material ranging from\nput & call basics, to complex options strategies\nsuch as butterfly spreads and condors,\nto time-tested trading plans to help maximize\noverall trading returns while minimizing\nlosses. It also lays out techniques for\ncombining the elements of simple put & call\ntrades into more complex — yet possibly\nsafer and potentially more lucrative — option\ntrades. Keene was an independent equity\noption trader at the Chicago Board Options\nExchange for 11 years, spending most\nof that time as a market maker in more than\n125 stocks.
Way Of The Trade: Tactical Applications\nOf Underground Trading Methods For\nTraders And Investors, with online video\ncourse (346 pages,\n$125 hardcover,\n2013, ISBN 978-\n1-118-59068-3) by\nJea Yu, published\nby Wiley/Bloomberg\nPress. While algorithms\nhave the upper\nhand in today’s\nmarkets with their\nfirepower and speed,\nindividual traders can still succeed by using\nthe market landscape to their advantage,\naccording to this author. In the book,\nYu presents an optimized and market-tested\nhybrid approach for intraday, swing, or portfolio\ntraders. In his approach, he may hold\na position that fades the market for weeks\nor even months at a time. It’s not a traditional\nbuy-and-hold method but a portfolio-\nmanagement system combining execution,\ntechnical analysis, and the risk-aversion\nand timing of a daytrader merged with\nthe analytics of an activist investor. This\nbook shares the author’s hybrid system. A\ncofounder of the trading site Underground-\nTrader.com, Yu provides analysis, lessons,\nillustrations, and case studies."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-65-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-65-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-65-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov318leto6,d,"{""minimum-quantity"":""1"",""path"":""ch11n2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:11 (8–9): Letters to S&C by Technical Analysis"",""caption-linebreaks"":""Letters to S&C by Technical Analysis
SMILES AND FROWNS
Editor,
I enjoyed Tom Bulkowski’s article\n“Trading Smiles And Frowns” (S&C,\nOctober 2013). I am uncertain of why he\noffset the 50-day moving average by 25\ndays. Could you explain why and also,\nwhat is meant by the term offset? If this\nexplanation lies in one of Bulkowski’s\nbooks, I would look to that.
Rsafanda
Author Tom Bulkowski replies:
This concept is discussed further in my\nbook Swing And Day Trading: Evolution\nOf A Trader (Wiley Trading). Using\na moving average helps you visualize\nthe smile or frown. It has no trading\nsignificance.
As my October 2013 S&C article\nexplains, you can push (offset) the moving\naverage to the left to help line it up\nwith price so that the smile or frown\nbecomes obvious. To do this, use half\nthe wavelength of the moving average.\nFor example, if you’re using a 200-day\nmoving average, then you would push\nit to the left by half that amount, or 100\ndays. That “offset” will properly line it\nup with price.
KEEP YOUR PORTFOLIO SAFE
Editor,
Azeez Mustapha’s August 2013 S&C\narticle “Keep Your Portfolio Safe” has\nmany gems of wisdom. It’s worth reading\nagain and again.
Sudarshan Sukhani"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-8-9-letters-to-s-c-by-technical-analysis-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-8-9-letters-to-s-c-by-technical-analysis-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-11-8-9-letters-to-s-c-by-technical-analysis-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov311leto1,d,"{""minimum-quantity"":""1"",""path"":""ch12d209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:12 (10-11): Letters To S&C by Technical Analysis Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis Inc.
SELF-OPTIMIZAT ION OF INPUTS?
Editor,
I concur with your reader, Ronald Stuart,\nwhose letter was published in the August\n2013 issue. I, too, would like to see old\nstrategies revisited (albeit with a modern\ncomputerized twist). I have been trading\nfor 29 years, and have subscribed to S&C\nfor two years now. I particularly enjoy\nthe digital editions.
My current project is to place each\nstrategy addressed in the Traders’ Tips\nsection of your magazine each month\non the same symbol and time frame\n(for example, symbol ANV placed on a\n20-minute chart).
At the TradeStation forum, an inverse\nFisher strategy is offered based on the\nMay 2004 article in your magazine\nby John Ehlers (“The Inverse Fisher\nTransform”). I imported that strategy\ninto TradeStation. I can even optimize\nthe strategy inputs such as the buy line\n& sell line. I usually need to optimize\nthe strategy inputs, as the backtesting\nand walk-forward trade analysis results\ndid not appear very favorable. I open\nan additional workspace chart (same\nsymbol, same time frame, which is a\n20-minute chart) for each strategy from\neach month’s Traders’ Tips. I then optimize\nthe inputs for each strategy.
Each strategy seems to have the same\nlimitations: It will be profitable for a\nfew days, then the inputs have to be\nreoptimized.
Then I read with great interest the\narticle and related Traders’ Tips contributions\nfor the self-adjusting RSI strategy\nas presented by David Sepiashvili in\nyour February 2006 issue (“The Self-\nAdjusting RSI”).
I placed the self-adjusting RSI strategy\non a 20-minute chart of ANV on July 24, 2013. It’s been running one week, and\nI can’t tell what I should be optimizing\nor even if I should be optimizing the\nlength and/or K inputs. I see buy/sell\nshort/cover on the chart.
What’s more, it seems to me that our\ncomputers should be able to optimize\nthese inputs in real time on any given\nstrategy. I read several technology magazines\neach month, and I am amazed at the\namount of resources poured into predictive\nsoftware and apps. For example, the\nGoogle Now app aims for “predictive\nintelligence,” offering assistance as users\ngo about their day — from hailing a cab,\nto suggesting proper clothing (based on\npreferences and weather conditions), to\nlocal cuisine recommendations (based\non previous consumptions), to timely\nreminders for personal grooming, and\nso on.
Real-time adaptive, automatic optimization\nof strategy inputs or self-adjusting\nstrategy inputs could make great strides\nin placing the power of profitable trading\nin the hands of your readers.
P.S. What inputs should I be optimizing\nin the self-adjusting RSI strategy, or\nis it already set as a truly self-adjusting\nstrategy?
Dave Sidwell
Thank you for your feedback. Regarding\nthe self-adjusting RSI, it’s the overbought\n& oversold levels that are adjusted. The\nformulas provided in the article make\nthese benchmarks self-adjust. —Editor"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-10-11-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-10-11-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-10-11-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov311unyi2,d,"{""minimum-quantity"":""1"",""path"":""faarfr205"",""ysw-page-title"":""Stocks & Commodities V. 31:12 (10–17): Understanding The Yield Curve, Part 1 by Giorgos E. Siligardos, PhD"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-10-17-understanding-the-yield-curve-part-1-by-giorgos-e-siligardos-phd-10.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-10-17-understanding-the-yield-curve-part-1-by-giorgos-e-siligardos-phd-11.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-10-17-understanding-the-yield-curve-part-1-by-giorgos-e-siligardos-phd-12.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov311unyi1,d,"{""minimum-quantity"":""1"",""path"":""ch12d209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:12 (12-19): Understanding The Yield Curve, Part 2 by Giorgos E. Siligardos, Ph.D."",""caption-linebreaks"":""Understanding The Yield Curve, Part 2 by Giorgos E. Siligardos, Ph.D.
The World Of Yields
Last month in part 1, we presented the basics of yield curve analysis. Here, we\nreview its historical performance in various countries through the use of yield\nspread indicators.
What constitutes a positive\nor negative yield curve?\nThe strict definition is that\na yield curve (YC) is positive when\nall of its parts are rising; it’s negative\nwhen all of its parts are falling; and\nit’s flat when it’s a straight horizontal\nline. Oftentimes, however, the YC\nis close to being considered positive\nor negative even though parts\nof it — usually the far left and/or\nfar right — do not conform to the\nstrict definition (Figure 1). Further,\nit is almost impossible for the yields\nof all maturities to be exactly the\nsame, which means that if you go\nby the strict definition of a flat curve,\nrealistically you will probably never\nfind a flat curve. From studying past\nperformance of yield curves, I have\nfound that these loosely positive\nand negative curves have similar\nimplications for the economy as the\noutright positive and negative ones\ndo. This is why it is necessary to be\nmore flexible in defining the YC. The\nsimplest way to do this is through\nyield spread indicators.
Yield spread indicators
Academics usually study differences\n(known as “spreads”) between longand\nshort-term government debt\nsecurities (GDS) as surrogates of the\nYC shape in order to see how well\nthey relate to business and economic\ncycles. Practitioners study these\nspreads to help them make better\ninvestment decisions in the stock\nmarket (Figure 2). The most popular\nspread (and considered the best by\nmany analysts) is the three-month/10-\nyear spread, which is computed by\nsubtracting the yield of GDS that\nmature in three months from the yield\nof GDS that mature in 10 years. When\nthe spread is positive, the YC is considered\npositive and when the spread\nis negative, the YC is considered\nnegative. Other similar short-term/\nlong-term spreads are believed to\nunderperform the three-month/10-\nyear spread, but not by much."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-12-19-understanding-the-yield-curve-part-2-by-giorgos-e-siligardos-ph-d-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-12-19-understanding-the-yield-curve-part-2-by-giorgos-e-siligardos-ph-d-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-12-19-understanding-the-yield-curve-part-2-by-giorgos-e-siligardos-ph-d-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov312fute,d,"{""minimum-quantity"":""1"",""path"":""ch12d209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:12 (20-30): Fundamental, Technical, Or Both by Markos Katsanos"",""caption-linebreaks"":""Fundamental, Technical, Or Both by Markos Katsanos
An Unlikely Marriage
Forecasting models tend to rely either on fundamental\nor technical analysis to select stocks. Is one superior to\nthe other? Find out here.
Fundamental and technical analysis methods\noffer radically different approaches to market\nforecasting. Although they both observe equities,\nfundamental analysts study underlying factors\ndriving the market, while technical analysts focus\non the market itself.
The fundamental approach can’t be used for shortterm\ntrading because it lacks a timing factor. No matter\nhow good your fundamental model is, it won’t tell\nyou when to buy or sell. You will still need something\nto help you time your entries & exits.
It is no coincidence that most fund managers fail to\nbeat their benchmark index. According to data from\nStandard & Poor’s (S&P) annual fund performance\nscorecard, about 84% of US actively managed stock\nfunds in 2011 and 66% in 2012 underperformed the\nS&P indexes representing the market segment they\ninvest in. Interestingly, as time periods get longer,\nmore funds underperform.
Why have the professional money managers done\nso poorly? While a few successful fund managers — including George Soros’ Quantum hedge fund — have started using technical analysis (according\nto The Economist), many fund managers still rely on\nfundamental analysis for their stock picking. This also\nimplies something for our technical trading systems.\nSince trading is a zero-sum game, the various funds\nthat lose money must be supplying an inexhaustible\nsupply of profits to anyone who uses a different or\nopposite approach to their system.
According to my personal research in designing and backtesting technical systems and other ideas, I\nhave come to the conclusion that a transaction timing\nmodel based on technical conditions can consistently\noutperform any passive investment scheme. I haven’t,\nhowever, seen any backtesting performance data on\nsystems using fundamental criteria. This led me to\ndesign such a system, backtest it, and compare the\nresults to a technical system. I am also going to investigate\nthe viability of combining both approaches\nin a hybrid system."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-20-30-fundamental-technical-or-both-by-markos-katsanos-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-20-30-fundamental-technical-or-both-by-markos-katsanos-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-20-30-fundamental-technical-or-both-by-markos-katsanos-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov313reme,d,"{""minimum-quantity"":""1"",""path"":""ch12d209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:12 (32-35): Repeated Median Velocity Strategy, Part 2 by Dennis Meyers, PhD"",""caption-linebreaks"":""Repeated Median Velocity Strategy, Part 2 by Dennis Meyers, PhD
All Aboard The Trend!
Here in the second part of this article, you’ll identify optimal\nparameters and find out how the system performed.
Last month in part 1, I described the repeated median\nvelocity (RMV) strategy and how it can be used to place\nbuy & sell orders as well as how to test this strategy.\nHere in part 2, I will discuss how to find the optimized system\nparameters so you can increase your overall trading profits.
Finding the system parameters
In the RMV strategy, there are three strategy parameters to\nfind: N, vup, and vdn. For the test data, I ran the TradeStation optimization engine on the Russell 2000 index emini futures\n(TF) one-minute price bars from March 30, 2011 to May 3,\n2013 with the following optimization ranges for the repeated\nmedian strategy inputs:
* N from 20 to 70 in steps of 10
* vup from 0.5 to 10 steps of 0.5
* vdn from 0.5 to 10 in steps of 0.5.
I created 105 30-day in-sample periods each followed by a\nseven-day out-of-sample period for the in-sample/out-of-sample\nperiods (see sidebar “Walk-Forward Out-Of-Sample Performance\nSummary” at http://www.traders.com/files/MeyersSB.html). This will produce 2,400 different input combinations\nor cases of the strategy input parameters for each of the 105\nin-sample/out-of-sample files for the two years of one-minute\nbar TF data.
What I am trying to do is statistically identify the best performance\nmetric (which I call a filter) or combination of best\nperformance metrics that I can apply to the in-sample section\nthat will give me strategy inputs that will produce, on average,\nvalid profits in the out-of-sample section, or future data.\nWhen I run an optimization over many combinations of\ninputs in TradeStation, it creates an output page with each\nstrategy input combination as its rows, and, as its columns,\nvarious trading performance measures such as profit factor,\ntotal net profits, and so on.
A simple filter would be to choose the strategy input optimization\nrow in the in-sample section that had the highest net\nprofit, or choose a row that had the best profit factor with its\nassociated strategy inputs. Unfortunately, this type of simple\nmetric performance filter has been found to rarely produce\ngood out-of-sample results. Some of the more complicated\nmetric filters have been found to produce good out-of-sample\nresults, as they minimize spurious price movement biases."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-32-35-repeated-median-velocity-strategy-part-2-by-dennis-meyers-phd-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-32-35-repeated-median-velocity-strategy-part-2-by-dennis-meyers-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-32-35-repeated-median-velocity-strategy-part-2-by-dennis-meyers-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov313fufo2,d,"{""minimum-quantity"":""1"",""path"":""ch12d209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:12 (36): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
FOREIGN FUTURES
I’m interested in trading foreign futures\nin an account held at a US brokerage\nfirm; what should I be aware of?
Most US brokerage firms offer their\nclients access to foreign futures and options.\nIf your broker doesn’t, you should\nreconsider where you house your commodity\ntrading account. Even if you don’t\nintend to trade foreign markets, that they\nare offering you limited product access is\na telltale sign of a brokerage that simply\nisn’t equipped to specialize in commodity\ntrading. Perhaps their focus is in stocks\nor FX, but it isn’t futures.
Some of the most popular foreign\nfutures contracts are the German DAX\n(a stock index futures contract), the German\nbunds (sovereign debt futures), and\ncanola oil (a.k.a. rape seed traded on the\nICE Canada exchange).
Trading in foreign products can complicate\nthe accounting on your brokerage\nstatements because such products are\nnot traded in US dollars, as contracts on\ndomestic exchanges are. Instead, they are\nvalued and traded in the designated currency\nin which the exchange is located. For instance, those buying or selling the\nDAX futures are not making or losing US\ndollars on each trade; instead, they are\naccumulating profits and losses in euros.\nSimilarly, if you buy and sell a canola\nfutures contract, your profit & loss will\nbe calculated in Canadian dollars. In\nother words, upon exit of the position,\nyour account will either be credited or\ndebited in “loonies.”
Brokerage firms will typically give you\nthe green light to trade foreign products in\nyour account even though you are holding\nUS dollars on deposit for margin. Once\nyou do, your account will no longer be\nvalued in a single currency. Your brokerage\nstatement will display the current US\ndollar balance along with the balance of\nany other currency resulting from trades\nexecuted in foreign markets.
For instance, if a trader started with\n$10,000 and netted a profit of 200 euro on\na DAX trade, his statement would display\n$10,000 and a separate account balance\nof 200 euro. The net is then figured by\nconsidering the current exchange rate\n(typically the 5 pm reading of the spot FX\nprice on the statement date) and displayed\non a third line of the brokerage statement.\nAssuming a value of $1.35 for the euro,\nthe client account statement would read a\n“combined currency balance” of $10,270\n($10,000 + (200 euro × 1.35)). For simplicity,\nthis example ignores transaction\ncosts associated with the trade."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-36-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-36-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-36-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov313idsu,d,"{""minimum-quantity"":""1"",""path"":""ch12d209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:12 (38-40): Identifying Successful Futures Trading Rooms by Dean Handley"",""caption-linebreaks"":""Identifying Successful Futures Trading Rooms by Dean Handley
Raising The Bar
Virtual trading rooms allow participants to log in and follow trade signals provided\nby a head trader. Ever thought of joining one? Here are a few things to keep in mind\nbefore you select one to trade from.
When I decided to learn to\ntrade futures four years ago,\nI assumed there would be dozens of\nsuccessful methods, each involving a\ncustomized blend of education, indicators,\nand strategies, and all of which\nwould be neatly packaged for sale\namong the hundreds upon hundreds\nof virtual trading rooms out there. I\nchose to learn futures trading from\na large trading organization where\nthe head trader had amassed great\npersonal wealth from trading. Within\nnine months, it was apparent that the\ntrading methods of that room were not\neffective; I had blown out my account,\nand learned I was not alone.
Most new traders fail at futures\ntrading, even after having purchased\nspecific education and indicators, as\nI had done. I reviewed what has been\nwritten to address the reasons traders\nfail. When I looked at the 10 most\ncommon mistakes, and I attended to\neach in turn, I still had not achieved\nsuccess at futures trading.
The absence of failure is not the\npresence of success. Success lies\nwell beyond removing failure, and\nfor myself, identifying tactics to\nachieve trading success was a far\nmore intractable task than attending to\na checklist of mistakes. Since failure\nin futures trading is pandemic while\nsuccess elusive, I will focus on tactics\nI developed over the last several years\nthat are fundamental to my current\nsuccess at futures trading.\nWhat does successful\ntrading entail?\nHere are the considerations I give my\nevaluation process:"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-38-40-identifying-successful-futures-trading-rooms-by-dean-handley-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-38-40-identifying-successful-futures-trading-rooms-by-dean-handley-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-38-40-identifying-successful-futures-trading-rooms-by-dean-handley-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314swtr,d,"{""minimum-quantity"":""1"",""path"":""ch12d209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:12 (41-43): Swing Trading With Three Indicators by Donald Pendergast"",""caption-linebreaks"":""Swing Trading With Three Indicators by Donald Pendergast
Three, Two, One ... Liftoff!
You’ve heard it time and time again: You need to have a trading plan. But how do\nyou create one? You have to start somewhere, and here’s one system that can lift\nyou into the world of system traders.
Thousands of trading systems are available in the marketplace today; some are relatively\ninexpensive to buy or lease, while others cost several thousand dollars or more.\nThese systems can be based on volatility breakouts, moving average crossovers,\nneural networks, genetic optimization, oscillators, and linear regression. But no matter how plain or fancy the trading\nlogic is for a system, all that matters\nare your answers to the following two\nquestions:
1. Is the system’s logic based on an\nobservable (with my own eyes\nand a price chart) market dynamic\nthat repeats again and again?
2. Will I be comfortable trading\nthis system in the markets with\nreal money on the line?
If you can honestly answer “yes” to\nthe first two questions, you might also\nwant to ask yourself a third question,\nwhich is:
3. Based on the system’s cost and\nongoing maintenance fees (upgrade\nfees, data fees, training, and\nso on), is it cost effective for my\ntrading account size, commission\ncosts, and markets traded?
If you answered all three questions\nhonestly, you can learn to become a\nconsistently profitable trader, even if\nyou use a simple system that you can\ncreate yourself using standard indicators\nfound in virtually every popular\ntrading/charting platform (and your\nown eyes).
A simple and visual system
Here’s a look at my simple, visually\nbased “trading with the trend” system\nthat is nonoptimized, noncurve-fitted,\nand is a no-brainer to construct and\nmaintain. The key ingredient for success\nin trading with this template is\nyou, because there are no secret market\nindicators or forecasting tools that can\nguarantee you trading success. But\nthis no-cost trading template that is\neasy to construct will help you stay on\ntrack with the mental and emotional\ndiscipline needed to learn to trade\nprofitably. After that, you may want\nto further fine-tune it by obtaining\neducation in other market dynamics\nlike relative strength analysis,\nmoney management techniques, price\ncycle studies, or wave analysis. (The\nStocks & Commodities article archive\nhas many articles on these and\nother topics.)"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-41-43-swing-trading-with-three-indicators-by-donald-pendergast-28.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-41-43-swing-trading-with-three-indicators-by-donald-pendergast-33.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-41-43-swing-trading-with-three-indicators-by-donald-pendergast-34.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314swtr2,d,"{""minimum-quantity"":""1"",""path"":""faarfr205"",""ysw-page-title"":""Stocks & Commodities V. 31:12 (41-43): Swing Trading With Three Indicators by Donald Pendergast"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-41-43-swing-trading-with-three-indicators-by-donald-pendergast-35.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-41-43-swing-trading-with-three-indicators-by-donald-pendergast-36.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-41-43-swing-trading-with-three-indicators-by-donald-pendergast-37.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314inun,d,"{""minimum-quantity"":""1"",""path"":""ch12d209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:12 (44-50): Interview: Uncovering The Layers With Jea Yu by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Uncovering The Layers With Jea Yu by Jayanthi Gopalakrishnan
Digging Deep
Jea Yu is cofounder of UndergroundTrader.com, a virtual trading desk and trader\neducation site. Yu is the author of Trading Full Circle, UndergroundTrader.com\nGuide To Electronic Trading, and Secrets Of The UndergroundTrader, as well as\nseveral trading videos: Swing Trading Secrets, Short-Term Profit Hunter, Level\nII Trading Warfare, and Beating The Bear, published through Wiley Trading and\nTraders’ Library. His latest book, Way Of The Trade: Tactical Applications Of\nUnderground Trading Methods For Traders And Investors, was released in August\n2013 by Bloomberg Press and John Wiley & Sons. Yu has been a contributing\nwriter for Benzinga.com, TradingMarkets.com, Trade2Win.com, and Active Trader\nmagazine. Together with Benzinga.com, he produces The Morning Profit Maker\nservice on Marketfy.com, based on his proprietary patterns.
Stocks & Commodities Editor Jayanthi Gopalakrishnan interviewed Yu on\nOctober 8, 2013, about how the markets have changed since he first started trading\nin the 1990s— from the daytrading bubble of 1999–2001 to the rise of algorithmic\nand high-frequency trading — and how he has responded to some of the changes\nin his own trading.
Jea, tell us a little about yourself\nand how you got interested in\nthe markets.\nWhile in college, during the early 1990s,\nI had a roommate who had discovered the\nstock market. He showed me quotes in\nthe newspaper. That’s when I caught the\nbug. I opened up an account with Charles\nSchwab & Co.. After college, my buddy\nbecame a broker at Smith Barney.
I went the normal route. I did my research,\nand I would read the stock quotes\nin the paper, but I always had a tendency\nto want more current quotes than I could\nget in the printed newspaper. I would bug\nmy broker about 20 times a day and ask\nwhat a stock was trading at!
Most people tell you to focus on the\nfundamentals of stocks, which is one\nway of looking at it, but why does a\nstock price fluctuate from day to day,\nor from minute to minute? There was\nalways some type of disconnect there\nfor me, and that’s what got me started\non my journey.
I didn't have a lot of money back then,\nso I was playing small stocks and putting\ntogether research reports. One of my internships was at Prudential Securities,\nand I put together a couple of research\nreports on some of these small stocks. On\nmy first day there, I met with a broker\nwho said he wanted to give me a lot of\nopportunities. So I showed him my folder\nand told him that I had five stocks he\nneeded to look at. But he just turned me\nover to his sales assistant, who gave me a\nstack of envelopes and a stack of letters,\nand asked me to lick the envelopes and\nmail them out. That was the extent of my\ninternship at a brokerage firm."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-44-50-interview-uncovering-the-layers-with-jea-yu-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-44-50-interview-uncovering-the-layers-with-jea-yu-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-44-50-interview-uncovering-the-layers-with-jea-yu-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov315exyo4,d,"{""minimum-quantity"":""1"",""path"":""ch12d209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:12 (51): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
’Tis the season…to buy options\nWith December now upon us, what’s a\ntrader to do? As everyone starts planning\ntheir holiday parties, their vacations, and of\ncourse, their gift-buying, the market, too,\nis in planning mode. There are gifts from\nFather Wall Street for those who bear (no\npun intended) to look for them. They come\nin the form of seasonality. Let’s take a look\nat a well-known seasonal pattern with an\napproach that’s an alternative to sticking\nyour neck out with stocks or futures.
SANTA CLAUS RALLY
The Santa Claus rally was first observed by\nmy friends at the Stock Trader’s Almanac.\nYale Hirsch and his son Jeff came across\nthe so-called seasonal week back in the\n1970s. Jeff, who has taught at several of our\nseminars in the past, says\nthe rally consists of the\nlast five trading days of\nthe year plus the first two\nfollowing New Year’s\nDay. Don’t confuse this\nwith the “January effect”\n— that’s a different\nseasonal pattern.
Jeff says that his father\nwent back as far as 1950\nwith this Christmastime\npattern and found that\nthe S&P 500 averaged\naround 1.5% during that\nweek. Not huge gains, but\ngains nonetheless. He\ngoes on to tell me that this is mainly due to\nlower volume, general lack of news, and the\npros buying into the end of the year.\nLet’s change this around a bit to look at\noptions as an alternative way to invest in\nthis seasonal pattern. To do so, we’ll look\nat last year’s Santa Claus rally and what\nalternatives there were to buying stocks,\nexchange traded funds (ETFs), or futures\nduring that short time frame.
If you were to buy the SPX at the open of\nDecember 24, 2012 and get in at the closing\nprice of 1426.66 and then sell the position\non the close of January 3, 2013 at 1459.37,\nyou would have a profit of 32.71, or a 2.2%\ngain. But what would happen if you were\nto trade options during this time frame? I\nanalyzed two different positions using the\nJanuary options on the following short-term\ntrading strategies:
* Option 1 – Buying a January 1425 [atthe-\nmoney (ATM) call option] for 16.75\non the close of December 24, 2012. The\ncost and risk of this option is the debit.\nThe cost is cheaper, but consists of pure\ntime value, so you need this option to\nmove in your direction."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-51-explore-your-options-by-tom-gentile-29.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-51-explore-your-options-by-tom-gentile-33.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-51-explore-your-options-by-tom-gentile-34.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov315prre5,d,"{""minimum-quantity"":""1"",""path"":""ch12d209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:12 (52-54): Product review: BollingerOnBollingerBands (BBands.com) by Technical Analysis Inc."",""caption-linebreaks"":""Product review: BollingerOnBollingerBands (BBands.com) by Technical Analysis Inc.
Bollinger Capital Management
PO Box 3358, Manhattan Beach, CA 90266
Phone: 310 798-8855
Email: BBands@BollingerBands.com
Website: BBands.com
Product: Technical analysis website
Price: $25/month; 30-day free trial
John Bollinger’s website provides a\nwealth of tools for the trader. New\nfeatures have been added, including\nan app that lets you get most\nof the website features on your Android\nor Apple IOS device. Also included is\nan artificial intelligence (AI) interface\nusing an expert system, and who would\nyou want more as your expert than John\nBollinger? He has also added a formula\nprogramming language called BBScript,\nwhich is a perfect balance between\nrobustness and ease of use — not too\ncomplex and not too simple.
Bollinger has a total of eight technical\nanalysis websites. This review focuses\non one of them, BollingerOnBollinger-\nBands.com, which can also be reached\nat http://BBands.com. Most traders will\nfind all they need in this one website and\nit costs only $25 a month after a 30-day\nfree trial. His other websites might be of\ninterest as well, and will be the subject\nof a future review, so you will be able\nto see how BollingerOnBollingerBands\nfits in with the other major sites.
Advanced charting
Advanced charting (Figure 1) is one of\nseveral items within the BollingerOnBollingerBands\nmenu and is comprehensive,\ncontaining charting, an AI expert system,\nscreening, pattern searches, and other\nfeatures.
One of the first things you will notice\nis the default price bars, or Bollinger\nBars. An explanation is given in Figure\n2. Candlesticks, line, and traditional OHLC bars are also available. Navigation\nbuttons let you select different stocks\nwithin an industry group depending on\ntheir strength or weakness, or you can\nenter the ticker of your choice — there\nare more than 4,000 in their database.
Next to the navigation arrows is a button\nlabeled expert. Clicking on it results\nin a dialog that gives you three options:\naudio, text, or cancel. Selecting text for\nthe Curtis Wright (CW) price chart for\nSeptember 10, 2013 results in the following\nsort of text:"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-52-54-product-review-bollingeronbollingerbands-bbands-com-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-52-54-product-review-bollingeronbollingerbands-bbands-com-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-52-54-product-review-bollingeronbollingerbands-bbands-com-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov315trti7,d,"{""minimum-quantity"":""1"",""path"":""ch12d209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:12 (55-64): Traders’ Tips by Technical Analysis Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis Inc.
For this month’s Traders’ Tips, the focus is\nDonald Pendergast’s article in this issue,\n“Swing Trading With Three Indicators.”\nHere we present the December 2013 Traders’\nTips code with possible implementations\nin various software.
In his article, Pendergast uses TradeStation\nto implement his technique, and\nalthough no code is provided in the article,\na template for the strategy is given.
Traders’ Tips code is provided in this column to help\nthe reader implement a selected technique from an article\nin this issue. The entries are contributed by various\nsoftware developers or programmers for software that is\ncapable of customization.
Readers will find the December 2013 Traders’ Tips\ncode and formulas at our website, Traders.com, in the\nTraders’ Tips area. Here, you can read some discussion\nof the technique’s implementation by the Traders’ Tips\ncontributors as well as some example charts.
To locate Traders’ Tips at our website, click on the link\nfrom our home page, or use our site’s search engine."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-55-64-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-55-64-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-12-55-64-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov311bayo,d,"{""minimum-quantity"":""1"",""path"":""ch13b205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:13 (15-22): Balancing Your Indicators by Martha Stokes, CMT"",""caption-linebreaks"":""Balancing Your Indicators by Martha Stokes, CMT
The Technical Triad
With so many indicators to choose from, how do\nyou select which ones to use? By looking at three\nprimary data, you can select a few that will prove\nuseful. Find out how.
It is not uncommon to find anywhere from 70\nto 100-plus indicators built into a charting\nprogram. It’s nice to have a choice, but you\nare not going to use all of them on a regular basis. So\nhow do you decide which ones to use? It is important\nto remember the three primary data in a chart: price,\ntime, and quantity (volume). All indicators make\nup at least two of these data items, either price and\ntime, or quantity and time. A few include all three\ndata. Using all three data creates a hybridized leading\nindicator that can outperform the other kinds of\nindicators for short-term trading styles.
The long lists of indicators now available to retail\ntraders can often cause confusion, frustration, and\nserious trading problems. The most common problem\nwith these long lists is that it lures the traders into\nperforming incomplete analysis without them realizing\nthat what they are doing is out of balance.
The main reason behind this is that the preponderance\nof indicators available to traders is price and\ntime indicators. About 75% to 80% of the indicators\nare price/time-based indicators versus a mere\n20% to 25% quantity/time-based indicators. As a\nresult, traders tend to choose too many price/time\nindicators and too few quantity/time indicators in\ntheir trading platform. This leads to too much price\nanalysis and too little quantity analysis.
For retail trading systems, emphasis has been\nplaced on price/time indicators for a variety of\nreasons. Most of the overly popular indicators were\nwritten decades ago for a very different market\nfrom what we have today. Those indicators were\nthe first to be ported into the charting systems back\nin the 1990s, when retail trading started to gain\npopularity."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-13-15-22-balancing-your-indicators-by-martha-stokes-cmt-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-13-15-22-balancing-your-indicators-by-martha-stokes-cmt-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-13-15-22-balancing-your-indicators-by-martha-stokes-cmt-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov312pube,d,"{""minimum-quantity"":""1"",""path"":""ch13b205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:13 (23): PulteGroup’s Bearish Breakaway Gap by Donald W. Pendergast Jr."",""caption-linebreaks"":""PulteGroup’s Bearish Breakaway Gap by Donald W. Pendergast Jr.
Shares of PulteGroup have enjoyed a massive runup in\nprice since October 2011, but a new bearish breakaway\ngap is warning of a major reversal in trend.
Home construction stocks are among the more cyclical of\nstock industry groups, with some issues able to mount\nincredible rallies — or declines — in relatively short\nperiods of time. Here’s a look at PulteGroup (PHM), a recent\nhigh-flier stock from the construction services industry, which\njust printed a powerful bearish breakaway gap — one that is\nvery likely warning of a substantial trend reversal in the weeks\nand months just ahead.
PulteGroup (PHM) achieved a major multicycle low on\nOctober 4, 2011, and after bottoming out at the bargain basement\nprice of 3.29, the stock went on to soar more than 567%\nby January 28, 2013, when it hit $21.97. That’s a noteworthy\ntrend move in anybody’s book, but the unexpected arrival of\na major intraday reversal (down by more than 5% in early\nmorning trading) and bearish breakaway gap may now be\nsignaling the death knell for PHM’s powerful bull run (Figures\n1 and 2).
PHM, like many large-cap stocks, tends to spend most of\nits time trading within the bounds of its two inner Keltner\nchannels (red bands); the stock’s latest surge upward since\nmid-November 2012 was only able to make a few daily closes above the band, with the bears ready to sell short at a moment’s\nnotice."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-13-23-pultegroup-s-bearish-breakaway-gap-by-donald-w-pendergast-jr-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-13-23-pultegroup-s-bearish-breakaway-gap-by-donald-w-pendergast-jr-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-13-23-pultegroup-s-bearish-breakaway-gap-by-donald-w-pendergast-jr-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov312rech,d,"{""minimum-quantity"":""1"",""path"":""ch13b205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:13 (24-37): Readers’ Choice Awards by Technical Analysis Inc."",""caption-linebreaks"":""Readers’ Choice Awards 2013 by Technical Analysis Inc.
We are pleased to present the Technical Analysis of Stocks & Commodities magazine\n2013 Readers’ Choice Awards (RCA). Each year, we put before our readers a\nballot of products and services related to technical analysis and trading. The following\npages present the products and services you and your peers chose this year\nas your favorites.
The Readers’ Choice Awards begins each year with a list of products gathered by\nthe editors of Stocks & Commodities, with space for write-in votes (given that\nour list doesn’t claim to be complete). Then, to find out what our readers find to\nbe the most useful for their trading, we ask them to choose their favorite products or the ones\nthey find most useful from various categories by going to our website, Traders.com, and filling out the survey there. After that, we compile the results, just in time for the Bonus Issue you hold in your hands.
Products are categorized by their primary purpose. Just because a service\nor product is not listed does not necessarily mean that the product does\nnot have features germane to the category. In addition, some categories\nare divided by cost so that the comparisons can be made on a more level\nplaying field.
The winners in the Readers’ Choice Awards are almost always the dominant\nplayers in their niche, and rightfully so. You may have special needs\nfor your trading, however, so you should keep in mind those products that\nare not the big names in the category of your interest before you make\nyour final decision. The RCA is designed to be an aid for you when you\nare deciding on which of the numerous products and services currently\navailable to use for your trading and investing. With that in mind, we\nthink you’ll find the Readers’ Choices a terrific guide to products and\nservices that you’ll be interested in."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-13-24-37-readers-choice-awards-by-technical-analysis-inc-25.gif"",""height"":""291"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-13-24-37-readers-choice-awards-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-13-24-37-readers-choice-awards-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov313lucy,d,"{""minimum-quantity"":""1"",""path"":""ch13b205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:13 (38-40): Lunar Cycles And Stock Market Volatility by Ron McEwan"",""caption-linebreaks"":""Lunar Cycles And Stock Market Volatility by Ron McEwan
New Moon Mania
Have you ever objectively analyzed the data of lunar cycles and its relationship with the\nfinancial markets? Here is one method that could bring some value to your trading.
If you were to do a\nweb search for “lunar\ncycles finance,”\nyou would get approximately\n4.65 million hits. You can\nsee that a number of people\nhave thought about this topic\nenough to tweet, blog, or write\na paper about it. Yet how\nmany of you have plugged\nthis data into a spreadsheet\nor programmed the function\ninto charting software to find\nout whether this is the holy\ngrail of trading or just an old\nwives’ tale? Maybe you were\nonce bold enough to mention\nto your trading desk manager\nthat “it’s a new moon, so we\nshould short the SPOOZ!”\nYou may be at the unemployment\noffice even now.
But wait, it works!
There seems to be a great deal\nof interest in this topic but\nnot that much conversation\nabout it around the trading\ndesk. Some of you may have\ntried this and sorted through\nnumerous equity, foreign exchange,\nand even commodities\ndata series. As hard as you\ntried, it just did not play out.\nSometimes the charts looked\nalmost prescient, then poof!\nthe nicely fitted cycle just\nevaporated.
Is there something to this\nthat some basic instinct is\ntelling us is valid? It should\neither work or be dismissed\nas a useless trading tool.
When properly used, it is a\nvaluable trading tool. What if\nwe are just not applying this in\nan appropriate manner? What\nif it’s us? Essayist Ronald\nWright mentioned in one of\nhis lecture series that “we\nare trying to run 21st-century\nsoftware on 50,000-year-old\nhardware.” I wanted to see if\nthis relationship were functioning on a more\nbasic emotional\npart of our hardware.\nMaybe it is\nsomething more\nprimitive."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-13-38-40-lunar-cycles-and-stock-market-volatility-by-ron-mcewan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-13-38-40-lunar-cycles-and-stock-market-volatility-by-ron-mcewan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-13-38-40-lunar-cycles-and-stock-market-volatility-by-ron-mcewan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314trap,d,"{""minimum-quantity"":""1"",""path"":""ch13b205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:13 (42-45): Triple Approach To Forex Markets by Solomon Chuama"",""caption-linebreaks"":""Triple Approach To Forex Markets by Solomon Chuama
Which Works For You?
Fundamental analysis, technical analysis, or sentiment\nanalysis: which do you prefer? Find out how you can\ndetermine which type of analysis is best suited for you.
Price moves in the forex markets are correlated to fundamental\ndata, given that you are trading world currencies.\nTo master fundamental analysis, you need to know enough\nabout micro and macro economics. In addition to that, you\nneed to be able to identify trends, since currency markets trend\nmore often than not. To master technical analysis, you need a\ngrasp of analyzing charts and knowledge of indicators.
The third approach, sentimental analysis, entails your sense\nof judgment on the market. It is the overall thoughts and opinions expressed by traders that form the basis of sentimental\nanalysis. When you effectively master the three types\nof analysis, you can call yourself a forex master. But if one\ntype of analysis is preferable, why do you need to consider\nall three? Let’s take a look at each.
Fundamental analysis
Fundamental analysis is the process of looking at the forex\nmarket by considering the economic, social, and political\nfactors that influence demand and supply and in turn have\nan effect on the currency value of a particular country. In\ntrading any currency pair, your analysis should be based on\nthe economy of the currencies in question.
For instance, if you want to trade US dollar/yen (USD/JPY),\nyou should analyze the Japanese and US economies, looking economic news, micro and macro data, and the pace at which\nthese data are changing. Put together, these factors will determine\nwhether the economy is doing well. A good economy will make\nthe value of its currency higher in value while a bad economy\nwill make its currency lower in value against other currencies.\nMost of the examples will be linked to the US economy because\nits currency is tied to major currencies.
These micro and macro economic variables will affect the\neconomy of a country:"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-13-42-45-triple-approach-to-forex-markets-by-solomon-chuama-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-13-42-45-triple-approach-to-forex-markets-by-solomon-chuama-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-13-42-45-triple-approach-to-forex-markets-by-solomon-chuama-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314swtr1,d,"{""minimum-quantity"":""1"",""path"":""ch13b205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:13 (46-50): Swinging Trades With Steven Place by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Swinging Trades With Steven Place by Jayanthi Gopalakrishnan
Consistency Is Key
Steven Place is a professional trader specializing in swing trading equity\noptions. He focuses on structuring trades to exploit quantitative models and\ntechnical analysis while minimizing risk through portfolio hedging. He has\nbeen profitable in both bullish and bearish environments.
Stocks & Commodities Editor Jayanthi Gopalakrishnan spoke with Steven\nPlace on January 23, 2013.
Steven, tell us how you got interested\nin trading options.
I run a website called “InvestingWithOptions.\ncom,” where\nwe look to make people better option\ntraders. Back in 2006, when I was still\nin college, I got interested in the stock\nmarket. After using more traditional\ninvesting techniques with only stocks,\nI started to read up on derivatives —\nfutures and options and forex.
My background is in electrical engineering,\nspecifically wireless signals\nand cellular phones and things like that.\nThe math and statistics used in signal\nanalysis carries over very well when\nyou’re learning the math behind options.\nYou don’t need to have an applied math\ndegree to understand options, but it helps.\nIt gave me an affinity toward options and\nI understood it very well. That’s when\nI picked up option trading to use in my\nown trading.
What do you do now?
I trade full-time and I also run InvestingWithOptions.\ncom. We have a\nchatroom for idea generation and have\ndeveloped a good community of option\ntraders.
I take it you’re in tune with option\ntraders’ needs.
Yes. A lot of people who join Investing\nWith Options are new to option trading.\nSo I understand what people need when\nit comes to understanding options and\nlearning to trade them confidently.
What are some of the common\nmistakes you see among people who\nwant to start trading options?
One of the main problems I see\nwith newer option traders is that they\nview options as just a leveraged stock\nplay, where they can get access to 100\nshares of stock for 10% of the cost.\nBut with options, other things affect\nthe pricing of an option. It’s not just\nstock price movement. When you\ntrade options, you need to not only\ncare whether the stock is going up or\ndown, you also need to care how fast\nit is going to move, and how long it\nis going to take to get to your price\ntarget because options have a time\nexpiration.
There are other things — those things\nknown as the greeks — that affect the\nrisk of the option and affect the profit and\nloss of the option. A lot of people will\ncome to me and say, “I bought a call and\nthe stock went higher, but I didn’t make\nas much money as I thought.” That’s because\nthey were not including those extra\ncomponents in the option pricing."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-13-46-50-swinging-trades-with-steven-place-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-13-46-50-swinging-trades-with-steven-place-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-13-46-50-swinging-trades-with-steven-place-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov316fist,d,"{""minimum-quantity"":""1"",""path"":""ch13b205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:13 (65-66): Five-Year Study On Soybean Price Trends by Ted Seifried"",""caption-linebreaks"":""Five-Year Study On Soybean Price Trends by Ted Seifried
Ever thought of trading commodities? This may give you\nsome insight.
After a massive drought-driven bull move in the grains\nthis summer resulting in record high prices, it occurred\nto me that we were not looking at the lowest soybean\nending stock numbers we had seen in the last five years.\nSo I did some digging into old reports, which thankfully\nare kept on file by the USDA (our tax dollars at work). There\nare some interesting comparisons that we can make to give us\nperspective on our current situation. Our economy has been\non a wild roller-coaster ride in the last five years, and it would be foolish for me not to take that into account as well.
For this exercise I looked back at the September 2012\nUSDA reports, as this has been the lowest 2012–13 numbers\nwe have seen thus far. Note that these are not the final ending\nstock numbers for the year. Here are what the projected US\nand world ended stock numbers were for soybeans:
2008–09
US: 110 million bushels
World: 40.22 million metric tons
2009–10
US: 150 million bushels
World: 62.85 million metric tons
2010–11
US: 225 million bushels
World: 68.82 million metric tons
2011–12
US: 145 million bushels
World: 51.94 million metric tons
2012–13 (tentative)
US: 115 million bushels
World: 55.66 million metric tons"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-13-65-66-five-year-study-on-soybean-price-trends-by-ted-seifried-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-13-65-66-five-year-study-on-soybean-price-trends-by-ted-seifried-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-13-65-66-five-year-study-on-soybean-price-trends-by-ted-seifried-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov318exri,d,"{""minimum-quantity"":""1"",""path"":""ch13b205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:13 (8-13): Expectancy Risks In Trading by Norman J. Brown"",""caption-linebreaks"":""Expectancy Risks In Trading by Norman J. Brown
The Kelly Criteria
There are always some unexpected trading profits and associated\nrisks involved with expectancy and with the use of\nthe Kelly criteria for betting. Here’s a clarification of two\nimportant issues.
There is some uncertainty in understanding trading using\nexpectancy and the Kelly criteria (the optimum bet, FO);\nthis article should clarify those two issues. To calculate expectancy (E), the equation for such is simple enough:
Expectancy (E) = B * R – (1 – B) = B * (1 + R) –1
(See sidebar, “Expectancy Glossary,” for definition of terms.)\nIf the expectancy is greater than zero, it gives you an edge in\nyour trading. This makes sense because a positive expectancy\nleads to positive (enhanced profit) trading, while a zero or negative expectancy\nmeans you should\nnot be trading at all.
Basically, there are\ntwo types of trading:\nfixed-dollar trading\nusually associated\nwith casino gambling\nand fixed-fraction\n(FF) trading usually\nassociated with stock\nmarket trading. For\nexample, in roulette\ngambling, we usually\nbet a fixed-dollar\namount and repeat\nthis in an iterative,\nnoncompounding,\napproach. It turns out\nthat roulette trading\nis a losing game to\nthe gambler as E =\n‑0.0526.
In the long run, the gambler will lose his money (of course,\nthere is always the exception where the lucky gambler beats the\nhouse). Because no compounding (generally) is involved, the\ngambler loses $2 for every 38 spins of the wheel (betting $1\nper turn), resulting in a linear loss at a ‑5.26% rate, increasing\ndirectly as the number of bets made (on average).\nThus, the resulting loss of equity on average is given by:
EE = E * N * Amount bet
The FF investing in the marketplace is different as the returns\nand losses compound at an exponential rate, given by\nthe following equity trading formula:
Equity = 1 + Profit = (1 + R * Bet)BN * (1 – Bet) [(1 – B) * N]
Here, the resulting equity varies at a compounded, nonlinear\nrate, with up and down surges. In the case of fixed-dollar\ngambling, the ending equity is predictable since you know\nthe values of E, N (number of trades), and the dollar amount\nbet. This is not true in FF\ntrading as the compounded\nresults eventually turn\ndown, as you will soon\nfind out."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-13-8-13-expectancy-risks-in-trading-by-norman-j-brown-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-13-8-13-expectancy-risks-in-trading-by-norman-j-brown-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-13-8-13-expectancy-risks-in-trading-by-norman-j-brown-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov311vors,d,"{""minimum-quantity"":""1"",""path"":""ch2f208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:2 (10-13): The Volatility (Regime) Switch Indicator by Ron McEwan"",""caption-linebreaks"":""Shifting Gears
The Volatility (Regime) Switch Indicator by Ron McEwan
Here’s how you can construct a simple Excel spreadsheet\nfor the volatility switch indicator.
Which trading strategy should you use? This is a dilemma that most traders face,\nespecially when the market changes its trend, which seems to be the norm\nthese days. You may be dealing with a market that is reversing direction every few days, and without warning, the\nmarket breaks out into a lengthy\ntrend that catches you off-guard. By\nthe time you can adapt to the new\nmode, you could have sustained a\nconsiderable drawdown.
Regime switching
Years ago, some very clever individuals\ncame up with methods to cope\nwith abrupt and dramatic changes.\nThis concept was labeled “regime\nswitching,” a method for adapting\na trading strategy when the market\nchanges from a trending mode to a\nmean-reverting one.
Many regime switching algorithms\nare available today. They generally\ninvolve complex mathematical\nalgorithms. At the heart of most of\nthe regime switching strategies is a\nmeasure of volatility. The direction of\nvolatility, rising or falling, as well as\nthe level of volatility, will give a good\nindication of whether the market is in\na trending or mean reversion mode.\nAs a basic first step, this article will\nexplain how to construct a simple\nvolatility switch indicator to assist\nin determining whether your security\nof choice is trending or in a mean\nreversion mode.
To start, you should have at least\none year’s worth of data for your security.\nThree to five years (or more)\nwill give you a more reliable picture\nof how the security reacts over time\nto change in volatility."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-10-13-the-volatility-regime-switch-indicator-by-ron-mcewan-20.gif"",""height"":""635"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-10-13-the-volatility-regime-switch-indicator-by-ron-mcewan-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-10-13-the-volatility-regime-switch-indicator-by-ron-mcewan-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov311whha,d,"{""minimum-quantity"":""1"",""path"":""ch2f208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:2 (14-23): What Happened To My Profit? by James Leahy"",""caption-linebreaks"":""What Happened To My Profit? by James Leahy
Implied Volatility And Its Effects
The effects of implied volatility are underestimated\nby many option traders. It can vary greatly and unpredictably\nover an option’s life and have a negative\nimpact on the profitability of an option position.
Option volatility, referred to as implied volatility\n(IV), is reflected in the option price through an\noption’s vega. Vega is defined as an option’s\nsensitivity to changes in the implied volatility of the\noption. It is expressed as the change in the option’s\nvalue as implied volatility rises or falls by 1%. Vega\nis negative for short options and positive for long\noptions. For example, assume a call option has an\nimplied volatility of 15%, the theoretical price of the\nlong call option is 1.50, and the vega of the option\nis 0.30. If the volatility increases from 15% to 16%,\nthe theoretical price of the option will increase to\n1.80. Conversely,\nif the option is a\nshort call, the theoretical\nprice will\ndecrease to 1.20.\nAn option’s vega\ndecreases toward\nzero as the option\nmoves deeper\nin-the-money\n(ITM) or farther\nout-of-the-money\n(OTM).
The vega is maximum\nat the option’s\nstrike price\nand declines exponentially\nat prices above and below this price. Vega also decreases as\ntime passes. Figure 1 shows a three-dimensional\nplot of the theoretical vega of a long call for the last\n18 days before an option’s expiration. Assuming a\nconstant implied volatility, you can see that each day,\nvega declines till it reaches zero at expiration.
One of the best trades that shows the impact of\nvolatility changes are stock earnings plays. These are\nshort-term options trades made just before a company\nreleases earnings, hoping to capture a quick profit\nas a result of greater than normal price movement\ndue to companies beating or missing analysts’ profit\nexpectations."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-14-23-what-happened-to-my-profit-by-james-leahy-20.gif"",""height"":""608"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-14-23-what-happened-to-my-profit-by-james-leahy-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-14-23-what-happened-to-my-profit-by-james-leahy-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov312buca,d,"{""minimum-quantity"":""1"",""path"":""ch2f208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:2 (24-27): Butterflying Cattle With Commodity Options by Tom Gentile"",""caption-linebreaks"":""Butterflying Cattle With Commodity Options by Tom Gentile
Moo
Butterfly the strategy, not the steak!
My wife and I don’t frequent the local steakhouse as often as I would like. It’s not me, I\nlove a good cut of filet mignon; she’s just not into red meat. In fact, when we do go, she\ninsists that her beef be well done — so much so that the server often asks if she wants\nher steak “butterflied.” Butterflying a steak is a process where the chef will split the\nfilet, enabling the steak to cook through quicker. Personally, I think butterflying a steak is a disaster, but butterflying\na commodity — now that’s\nsomething entirely different.
Let’s take our filet mignon\nin its rarest form — in the form\nof live cattle — and look at\ncutting the meat of this risk\nsubstantially.
The butterfly strategy
Cattle futures and options are\ntraded on the Chicago Merchantile\nExchange (CME).\nTo give you an idea of the\ncontract values, look at some\nrecent trading action in the\ncattle pits (Figure 1). The\nFebruary futures contract for\nlive cattle traded at near 130\ncents per pound recently. One\ncontract of live cattle is good\nfor 40,000 pounds, according\nto the specifications. To get\nthe contract price, you simply\nmultiply the current price of\nthe contract by the contract\nsize (130 x 40,000).
The February contract on\nDecember 3, 2012, is worth\napproximately $52,000. With\novernight margins, the cost to\ncontrol the contract is obviously\nmuch less, but we need\nto remember the calculations\nin order to determine the dollar\ncost of the options."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-24-27-butterflying-cattle-with-commodity-options-by-tom-gentile-20.gif"",""height"":""621"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-24-27-butterflying-cattle-with-commodity-options-by-tom-gentile-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-24-27-butterflying-cattle-with-commodity-options-by-tom-gentile-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov312miex,d,"{""minimum-quantity"":""1"",""path"":""ch2f208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:2 (28-34): Minimum Expectations Of A Trading Strategy by Wayne Mueller"",""caption-linebreaks"":""Minimum Expectations Of A Trading Strategy by Wayne Mueller
Fixing Your System
Is your system performing adequately? Here is a method you\ncan use to determine minimum expected performance.
I have learned that if you are going to trade, you should\ntrade a system that you have developed using known\nparameters in which you have reasonable confidence.\nA trading system is a collection of rules and conditions by\nwhich to select, buy, and sell financial instruments. Your\ngoals, psychology, personality, and capital limits are part of\nthe mix of influences that ultimately determine the makeup\nof the strategies to be implemented. If you are thorough, perceptive, and resourceful enough, you will end up creating\na successful strategy.
The R-factor
Typically, you will backtest your system and come up with a\ncollection of performance results before you start trading your\nsystem. One form of performance results is a set of R-multiples,\nor a distribution, from which a mean R (expectancy or expectation)\nand a standard deviation can be derived. R means risk per\ntrade. For example, if you bought 200 shares of XYZ at $100 and\nplaced a stop-loss at $95, then R = ($100 - $95) 200 = $1,000.\nBy keeping R equal to a constant dollar amount or a constant\npercentage of equity for each trade, you can keep a good handle on your risk and have an effective method to\ntrack your system’s performance.
From these parameters, I will show how you\ncan derive a minimum performance curve and\ndetermine the maximum drawdown you can\nexpect as well as the maximum breakeven trade\nnumber and the terminal wealth relative (TWR) (the retire\npoint). From that curve and the values described, you can apply\na risk level and enhance profitability by using proportional\nbet sizing and Ed Seykota’s “market’s money” concepts (the\ndifference between current equity and starting equity).
You will want to know the worst-case performance of your\nstrategy, given a specified confidence level and the minimum\nlevel of performance below which you should consider the\nsystem to be broken. Here, I will propose a method that will\nhelp you make that determination."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-28-34-minimum-expectations-of-a-trading-strategy-by-wayne-mueller-20.gif"",""height"":""635"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-28-34-minimum-expectations-of-a-trading-strategy-by-wayne-mueller-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-28-34-minimum-expectations-of-a-trading-strategy-by-wayne-mueller-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov313chva,d,"{""minimum-quantity"":""1"",""path"":""ch2f208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:2 (36-39): Chartmill Value Indicator, Part 2 by Dirk Vandycke"",""caption-linebreaks"":""Chartmill Value Indicator, Part 2 by Dirk Vandycke
Under- And Overvaluation
In the first part of this series, you were introduced to an oscillator\nnot prone to stickiness in overbought/oversold regions and\nthat didn’t have the lag commonly associated with oscillators.\nIn part 2, here’s how to apply it and profit from it.
When using the Chartmill value indicator (CVI), which is\na short-term oscillator, I try to capture overbought and\noversold setups. Based on a normalization procedure\nwell-known to engineers and statisticians, the indicator’s\nconstruction makes for far different properties than those\nof most popular oscillators. To begin with, the CVI doesn’t have the stickiness that keeps other, range-bound oscillators in\noverbought and oversold zones while strong trends develop.\nSecond, the lag typical for moving average–based oscillators\nis far less of an issue with the CVI. Finally, because of its\nadaptable dynamic nature, there are no parameters involved\nin its equation, so the CVI is totally objective by definition.
But it is still necessary to give it an objective interpretation.\nLet’s find out if this indicator is of any real and statistical\nsignificant usefulness.
Consensual value
In my previous article I introduced the CVI and how it is\nbuilt. Because of its normalizing nature, it can be used in the same way for any time series. Any value between ‑4 and +4\nindicates a strong short-term consensus regarding current\npricing as fair value. Any value between 4 and 8 indicates\nslight overvaluation, while anything higher than 8 indicates\nplain overpricing in the short term.
Even though the CVI isn’t a range-bound oscillator, you\nwill rarely see values higher than 8 with this indicator. Given\nthat values for the CVI are next to never much higher than\n9, this would indicate major overvaluation with respect to\nshort-term consensus. In order to cope with the stickiness\neffect that plagues other oscillators, the CVI has a tendency\nto time-correct toward zero and considers new price extremes\nmore normal as time goes by.
Likewise, minor undervaluation, in regard to short-term\nconsensus, is defined as between ‑4 and ‑8 and plain undervaluation\nbelow ‑8. Any value lower than ‑9 would be considered\nto be a major undervaluation.
These levels are not written in stone, of course, but they\ncome from a statistical normalization procedure. As a consequence,\nall four beacons pinpoint the CVI equivalent of the\nstatistical standard deviations.
If you want to find an edge the CVI offers, you should look\nfor violations of the 8 and ‑8 levels. So your focus here will be\non over- and undervaluation signals. Going still farther from\nzero would result in far too few signals to build a meaningful\nsample space."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-36-39-chartmill-value-indicator-part-2-by-dirk-vandycke-20.gif"",""height"":""628"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-36-39-chartmill-value-indicator-part-2-by-dirk-vandycke-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-36-39-chartmill-value-indicator-part-2-by-dirk-vandycke-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314exyo,d,"{""minimum-quantity"":""1"",""path"":""ch2f208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:2 (40-41): Explore Your Options by Price Headley"",""caption-linebreaks"":""Explore Your Options by Price Headley
ABOUT CREDIT SPREADS
How does a credit spread work?
There are several types of spreads, but\nthey all work similarly. Option spreads\ncan be used to take a bearish, bullish,\nor neutral position. For example, let’s\nlook at a credit spread, which is what a\nspread is called when it generates a net\ninflow of cash into your account.
In this instance, we are bearish; according\nto our calculations, we think the\nprice of XYZ stock will go down. We\ndecide to sell a September 30 call for a\nprice of $3. Since we think that XYZ\nwill go down in price, we assume that\nnobody will want to exercise our short call against us — that is, make us sell\nthem XYZ shares at $30 — since they\ncan be bought in the open market for\nless than $30.
However, to protect ourselves in case\nwe are wrong (in case XYZ shares increase\nin value), we buy a September 35\ncall at a price of $1. That way, if XYZ\nshares go to $40, we can get someone\nelse to sell their shares to us at $35, and\nwe can cap our risk at the $5 difference.\nOur real maximum risk is the $5 difference\nminus the credit collected. Take a\nlook at our position in Figure 1."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-40-41-explore-your-options-by-price-headley-20.gif"",""height"":""640"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-40-41-explore-your-options-by-price-headley-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-40-41-explore-your-options-by-price-headley-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314inst,d,"{""minimum-quantity"":""1"",""path"":""ch2f208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:2 (42-48): Income-Generating Strategies With Brad Reinard by Gopalakrishnan & Faber"",""caption-linebreaks"":""Income-Generating Strategies With Brad Reinard by Gopalakrishnan & Faber
Deceptively Simple Credit Spreads
Brad Reinard, who is editor-in-chief of Monthly Cash Thru Options LLC, has\nextensive experience in directional and nondirectional option trading strategies.\nHe has consistently returned greater than 40% annually in his own personal\ntrading account since 2002, primarily leveraging out-of-the-money credit spread\nand iron condor options on the broad indexes. He has a bachelor’s of science\nin electrical engineering from Columbia University and a master’s in business\nadministration from the University of Chicago Booth School of Business.
Stocks & Commodities Editor Jayanthi Gopalakrishnan and Staff Writer\nBruce R. Faber spoke with Reinard on December 11, 2012.
Btelling us about yourself and\nhow you got interested in trading\noptions.
I am an electrical engineer by trade.\nI worked in the General Electric Spacecraft\nGroup in New Jersey for three\nyears and then got an MBA from the\nUniversity of Chicago. From there I\nmoved out to Silicon Valley, and I stayed\nin high-tech. My expertise was in chip\ndesign software. I was selling to all the\nsemiconductor companies like Intel,\nAMD, and Fujitsu.
All that time, I was trading stocks.\nEven with the day job, I was constantly\ntrading stocks, especially the high-tech\nones. I was in and out of stocks and did\npretty well, but I kept hearing about options,\nso in 1998 I took a training course.\nI just started from there."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-42-48-income-generating-strategies-with-brad-reinard-by-gopalakrishnan-faber-20.gif"",""height"":""585"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-42-48-income-generating-strategies-with-brad-reinard-by-gopalakrishnan-faber-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-42-48-income-generating-strategies-with-brad-reinard-by-gopalakrishnan-faber-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314quop,d,"{""minimum-quantity"":""1"",""path"":""ch2f208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:2 (49): Quick-Scan: OptionsXpress by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Quick-Scan: OptionsXpress by Jayanthi Gopalakrishnan
OPTIONSXPRESS
PO Box 2197\nChicago, IL 60690–2197
Internet: www.optionsxpress.com
Product: Broker
Phone: 888 280-8020\nAn in-depth and fair review of an online\nbroker can only be done if you trade live\nwith them for a while. You need to be\naware of their execution speed, commissions,\nspreads, and ease of order entry,\namong other things. For a reviewer to\ntrade live with several brokers is just\nabout impossible, though, which is why\nyou won’t find us reviewing brokers\noften. But every once in a while if we\nnotice one that provides its customers\nsome powerful trading tools, we think\nwe should let our readers be at least\naware of them.
OptionsXpress offers its account\nholders some tools that reduce some of\nthe complexities involved with trading\noption strategies. I will not go into details\nabout how much you need to open an\naccount, what you can trade, costs, order\nentry, and so forth. You can find out more\nby visiting their website. My focus will be\non the trading tools that OptionsXpress\noffers its customers. All these tools can\nbe found under the Toolbox menu.
Screener
One of the first obstacles you face as\na trader is deciding what to trade. OptionsXpress\ndoes have a screening tool\nthat scans for stocks, options, covered\ncalls, put selling, mutual funds, and\nexchange traded funds (ETFs) based\non your choice of search criteria. Your\noptions for filtering are limited to price\nrange, average volume, price/earnings\nratio, dividend percentage, historical\nvolatility, sectors, and industry. There\nis not much in terms of screening based\non purely technical indicators, which is\nwhat I would prefer to base my screens\non. The chart patterns tool, which I will\ncover later, includes some technical chart\npatterns for screening."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-49-quick-scan-optionsxpress-by-jayanthi-gopalakrishnan-20.gif"",""height"":""654"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-49-quick-scan-optionsxpress-by-jayanthi-gopalakrishnan-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-49-quick-scan-optionsxpress-by-jayanthi-gopalakrishnan-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov315prre1,d,"{""minimum-quantity"":""1"",""path"":""ch2f208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:2 (50-53): Product review: Updata by Dennis Peterson"",""caption-linebreaks"":""Product review: Updata by Dennis Peterson
UPDATA
Hutchison House, 5 Hester Road, London SW11 4AN
Phone: 212 763-8535/+44(0)207 199-4747
Internet: http://www.updatata.com,\nhttp://www.updata.co.uk
Email: sales@updataTA.com
Product: Technical analysis platform
Requirements: Windows XP, Vista, 7\n(32 or 64 bit); dual core processor+; 4GB\nRAM+; 2GB hard disk space.
Price: Updata Pro $395/month (minimum\none year); Updata Trader Pro\n$499/year; Updata Analytics (requires\nBloomberg feed): $100/month
Updata, a UK-based company,\nhas a wide range of analysis\nfeatures. The platform can be\ninstalled on your desktop or laptop and\nworks equally well with Windows 7 or\nXP operating systems. You can have\nmultiple installations, but only one can\nbe active, and you will need to disable\nsecurity, which is accomplished with a\ncouple of clicks on your current installation\nbefore moving to the next one.
Updata is compatible with several data\nsources, including eSignal and Thomson\nReuters as well as Bloomberg and its own\nUpdata datafeed. Updata comes in three\nvarieties: Pro, Trader Pro, and Analytics.\nThe big plus with Pro versus Trader\nPro is that Pro has free programming of\nindicators and/or trading systems.
In addition, the staff at Updata is proficient at converting MetaStock formula\nlanguage or TradeStation EasyLanguage\nto the C++ like language used by Updata.\nFor easy coding tasks, they will provide\n24-hour turnaround (they use their UK\nstaff for coding tasks).
To give you an idea of how extensive\nthis software is, consider there are 457\nprebuilt custom indicators in addition to\nseveral dozen standard indicators, and 229\nprebuilt trading strategies. Plus, they have\none of the best point & figure interfaces.\nNot only that, Jeremy DuPlessis, author\nof the book The Definitive Guide To Point\nAnd Figure, is a member of the Updata\nstaff and also the author of their 700-some\npage user manual.
Installation is straightforward. You’ll\nbe prompted during installation to identify\nyour data sources, and in the case\nof Trader Pro you’ll be given the option\nto identify Yahoo and/or Google (which\nare free)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-50-53-product-review-updata-by-dennis-peterson-20.gif"",""height"":""584"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-50-53-product-review-updata-by-dennis-peterson-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-50-53-product-review-updata-by-dennis-peterson-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov315fufo,d,"{""minimum-quantity"":""1"",""path"":""ch2f208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:2 (54): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
CME AND ITS CHANGES
The CME has made changes to the trading\nhours of various products. What was\ntheir motivation and what is the impact\non traders and the markets?
The CME recently made two significant\nchanges to the trading hours of some of\ntheir most popular contracts. The first\nwas implemented in late May 2012 and\ngreatly expanded the number of hours that\ntraders could speculate in grain futures\nand options; the second went into effect\nin mid-November 2012 and altered the\ncutoff point between trading sessions in\nstock index futures and options.
What changes were made to CME Group\ngrain trading hours, and why?
Following the changes implemented in\nthe summer of 2012, CME Group grain\nfutures and options trade 21 hours per day.\nPrior to the change, the markets were available\n17 hours per day. Although 17 hours\nsounds ample, it was far less than most other\ncommodity markets and failed to provide\nmarket access during the announcement of\ncritical USDA reports, which are typically\nreleased early in the morning on various\nweekdays.
Under the new schedule, grain trading\nbegins on Sunday afternoon at 5 pm Central\ntime. The market then trades around the\nclock before pausing at 2 pm; trade then\nresumes at 5 pm Monday through Thursday;\nbut trading halts for the weekend at\n5 pm Central on Friday. In a nutshell, the\nmarket is closed only from 2 pm to 5 pm\nduring the week but is open during all other\ntimes of the day.
I can’t speak on behalf of the CME Group,\nbut from what I’ve gathered, there were\ntwo primary goals in expanding trading\nhours for grain products. First, the new\nhours created an opportunity for traders\nto immediately react to the USDA reports. Prior to the changes, traders were forced to\ndigest the news for two hours before they\nwere able to react in the marketplace. As\nyou can imagine, inability to enter or exit\na market following such an event opened\nthe door to emotions running wild; this\noften triggered panicked trades on the\nmarket open."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-54-futures-for-you-by-carley-garner-20.gif"",""height"":""651"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-54-futures-for-you-by-carley-garner-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-54-futures-for-you-by-carley-garner-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov315qaby,d,"{""minimum-quantity"":""1"",""path"":""ch2f208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:2 (56): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
HIGH-FREQUENCY TRADES
Recently, the Stocks & Commodities\n“Opening Position” referred to the\ndomination of the markets by highfrequency\ntrades (HFTs) (S&C, July\n2012). I have heard that many times and\nmany places, but I have never heard any\nactual statistics on the subject. I realize\nit is in the HFTs’ interest to remain out\nof sight, hidden in dark pools and other\nnot easily defined spooky places. Any\nexamples of HFT trading seem to suggest\nthey trade large volumes of equities,\nfutures, options, and the like for small\namounts of price movement — maybe\ntwo-tenths of a cent. Liquidity is always\nnecessary, as is exchange help for volume.\nLarge volume with large bid/ask\nranges are obvious price movers. How\ndo large volumes of small spreads have\nmuch effect on pricing? I’ve never been\nable to understand that. Thank you.
—Robert B. Millar
First off, let me say that you can see the\nvolume of HFT trades on most datafeeds.\nIf you set your price ticker or last-sale\nprice to four decimal places, you’ll\nsee hundreds or thousands of orders\ngo through between the whole-penny\nnumbers. And if you buy at $25.001\nand sell at $25.009, then you’ve made\neight-tenths of a penny maybe a million\ntimes. Nice money. Since these firms\npay nearly nothing to clear these trades,\nthey do well.
Bright Trader Dennis Dick has written\nextensively on this subject: “Imagine\nbeing in a traffic jam. There are always\ncars trying to speed past you in the fast\nlane, trying to merge in at the last second,\nskipping ahead of the line. This slows\ndown the line for everyone else. This is\nwhat high-frequency traders specialize\nin, jumping the order queue. Except\ninstead of cutting in front of you once,\nthey do it again and again. The highfrequency\ntrader is always at the front of\nthe line, which means the retail investor\nis always at the back.”"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-56-q-a-by-don-bright-20.gif"",""height"":""651"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-56-q-a-by-don-bright-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-56-q-a-by-don-bright-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov315seun,d,"{""minimum-quantity"":""1"",""path"":""ch2f208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:2 (58-60): Seeking The Uncommon Trade by L.A. Little"",""caption-linebreaks"":""Seeking The Uncommon Trade by L.A. Little
Are you looking for just another trade, or an uncommon one?
There’s always another trade, the saying goes, and it’s true. But should\nyou be looking for just another trade? It may be to your advantage to\ngo where others don’t. Instead of looking for just another trade, it’s\nthe uncommon one you should be seeking. The uncommon trade is\nthe diamond in the rough. It’s the trade with greater potential not only\nfrom a reward-to-risk perspective, but from a probability of success.\nThat these trades are uncommon is what makes them so sought after,\nbut how can you find them?
Trades come in two flavors
One of the problems with trading and life\nin general is that there is an abundance of\ncomplexity. In this highly technical and\ninterconnected world where information is\ninstantly at your fingertips, it is best to just\ntune out sometimes and step back in order to\nsee the big picture. In trading, there are just\ntwo trade types: either you take a position\n(long or short) when the instrument you are\ntrading is breaking out, or you do so when it\nis retracing back to a prior breakout point.
It sounds simplistic and it was intended\nthat way, because in my opinion far too many\ntraders and commentators make it overly\ncomplex. Here are a couple of simple charts\nfor visualization.
In Figure 1 you see an example of a bullish\nbreakout. In such a case, price pushes up to\na prior resistance area and then jumps above\nit, breaking higher. A breakout trade implies\nthat the trader buys once a breakout occurs.\nAlthough Figure 1 depicts a bullish breakout,\nbearish breakouts are essentially the same pattern\n— in reverse. Whether prior resistance\nis defined as a swing point, a resistance line,\nor any other technical area, the point is that\nprice first reaches then exceeds the levels\nwhere resistance resides.
Figure 2 is an example of a retracement,\nwhich is preceded by a breakout; otherwise,\nthere would be nothing to retrace. A successful\nretracement sees prices approach the\nprior breakout area, hold, and then reverse\nto head back the other way. Like breakouts,\nretracements apply to both bullish and bearish\nsetups.
These two trade setups and variations make\nup all trade setups. Every trade we have made\ncan be explained by these two basic trade\ntypes. It is a useful simplification and, once\nmade, allows you to focus on the question at\nhand: What makes one breakout or retracement\nsetup better than another?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-58-60-seeking-the-uncommon-trade-by-l-a-little-20.gif"",""height"":""637"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-58-60-seeking-the-uncommon-trade-by-l-a-little-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-58-60-seeking-the-uncommon-trade-by-l-a-little-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov316ritr,d,"{""minimum-quantity"":""1"",""path"":""ch2f208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:2 (62-64): Right-Angle Triangles by Bruce Tintelnot"",""caption-linebreaks"":""Right-Angle Triangles by Bruce Tintelnot
When chart patterns form, they can give you some idea on\nwhere prices may be going as they go their own way. Here’s\nthe right triangle chart pattern, the two types that form, and\nwhat they indicate.
When market technicians began charting trending markets, they observed\nthat the charts formed recognizable patterns as the bulls or\nthe bears struggled for control of prices. Some of the patterns are\nconsistent with the continuation of a trend and some often indicate a trend reversal. The right triangle pattern,\nwhether it is ascending or descending, is one\nthat most often indicates the continuation of\na trend.
Ascending triangles
The ascending triangle is a continuation\npattern that indicates accumulations with\nbullish, uptrending prices on a price chart.\nIts characteristics are a horizontal ranging\nof prices forming two or more almost equal\npeaks that can be connected by a straight,\nhorizontal line. Usually, an equal number of\ntroughs form at ascending price levels that can\nalso be connected by a straight angular line\nforming a triangle pattern. If the beginning\nof the trendline is connected to the horizontal\nline by a perpendicular one, a right triangle\nis the result.
This is a robust formation that isn’t relegated\nto any particular trend duration. The upper\nhorizontal line forms a resistance level that\nis continually tested by buyers. Each failure\nto break out above the resistance results in a\nreaction low that is higher than the previous\nlow, indicating the bullishness of the continuation.\nUsually, volume contracts as the trading\nrange decreases with a surge of activity when\nthe resistance level is actually breached.
As usual in technical analysis, the resistance\nlevel becomes a support level for the rising\nprices when the breakout occurs. The daily\nchart of Tanger Factory Outlet Centers in\nFigure 1 displays an ascending triangle from\nMay 2012 to August 2012. Prices broke out\nof this triangle in early August 2012 accompanied\nby high volume."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-62-64-right-angle-triangles-by-bruce-tintelnot-20.gif"",""height"":""611"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-62-64-right-angle-triangles-by-bruce-tintelnot-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-62-64-right-angle-triangles-by-bruce-tintelnot-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov316trti1,d,"{""minimum-quantity"":""1"",""path"":""ch2f208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:2 (66-72): Traders’ Tips by Technical Analysis Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis Inc.
For this month’s Traders’ Tips, the focus is Ron\nMcEwan’s article in this issue, “The Volatility\n(Regime) Switch Indicator.” Here we present\nthe February 2013 Traders’ Tips code.
Code for Microsoft Excel is already provided\nin McEwan’s article by the author. Subscribers\nwill find that code at the Subscriber\nArea of our website, Traders.com. (Click on\n“Article Code” from our homepage.) Presented here is an\noverview of possible implementations for other software.
Traders’ Tips are provided to help the reader implement\na selected technique from an article in this issue.\nThe entries are contributed by various software developers\nor programmers for software that is capable of customization.
Readers will find the February 2013 Traders’ Tips code\nat our website, Traders.com, in the Traders’ Tips area.\nHere, you can read some discussion of the technique’s\nimplementation by the Traders’ Tips contributors as well\nas some example charts.
To locate Traders’ Tips at our website, use our site’s\nsearch engine, or click on the link from our home page.\nFor past Traders’ Tips, click on the “Archive” button in the\nS&C Magazine box in the middle of our home page, then\nclick on a Traders’ Tips topic of interest, or click on a different\nyear to see more choices."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-66-72-traders-tips-by-technical-analysis-inc-20.gif"",""height"":""649"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-66-72-traders-tips-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-66-72-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov317bofo1,d,"{""minimum-quantity"":""1"",""path"":""ch2f208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:2 (77): Books For Traders by Technical Analysis Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis Inc.
The following selection of book descriptions represents a sampling of recent book\nreleases in the investing field. Books described here may be from some of the major\nbook publishers as well as some independent book publishers. These are not\ncritical reviews or editorial evaluations, but rather a brief look at the book marketplace\nto help keep readers up to date on new book offerings."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-77-books-for-traders-by-technical-analysis-inc-20.gif"",""height"":""664"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-77-books-for-traders-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-77-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov31865le,d,"{""minimum-quantity"":""1"",""path"":""ch2f208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:2 (8-9, 65): Letters To S&C by Technical Analysis Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis Inc.
THE CAT’S EARS PATTERN
Editor,
Please extend my\nthanks to Giorgos\nSiligardos for his\nDecember 2012 article,\n“The Cat’s Ears\nPattern.” I found the\narticle well written\nand it adds a twist to the traditional take\non double tops, especially when paired\nwith the RSI. I look forward to testing\nit and to see whether a reliable bottom\nversion exists.
Thomas Bulkowski
S&C Contributing Writer and\nauthor of Encyclopedia Of Chart\nPatterns
MISH SCHNEIDER INTERVIEW
Editor,
Your interview with\nMish Schneider was\nwonderful (“Michele\n‘Mish’ Schneider\nOf MarketGauge,”\nStocks & Commodities,\nNovember\n2012). I am saving it to reread in the\nfuture. Thank you to her for the great\ndetail and wonderful information.
Becky McClain
CLARIFICATION: METASTOCK REVIEW
In our review of MetaStock\n12 in the January\n2013 S&C, the\nname of the datafeed\ngiven was “Eikon\nfor Retail Traders.”\nMetaStock reports\nthat the name of that\ndatafeed has since changed to “MetaStock\nXENITH.”"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-8-9-65-letters-to-s-c-by-technical-analysis-inc-20.gif"",""height"":""655"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-8-9-65-letters-to-s-c-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-8-9-65-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov318fuof,d,"{""minimum-quantity"":""1"",""path"":""ch2f208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:2 (81-82): The Future Of The Financial Markets by Richard Johnson"",""caption-linebreaks"":""The Future Of The Financial Markets by Richard Johnson
Here’s one way to look at it.
Traders and market technicians tend to assume that the\nfinancial markets will always be available to them. After\nall, trading markets have existed during much of history,\nand today’s traders have experienced open-access free\ntrading markets of many kinds, so there is little or no reason\nto believe they wouldn’t exist in the markets of the future.
But then...
If the financial and political environments drastically changed\naround the world, could financial markets be suspended for\nseveral years, as happened during World War I? Even worse,\ncould free and open-access trading markets be shut permanently\nif the world economy reverted to such previous nonmarket\nconditions? While absence of markets have been exceedingly\nrare, for much of recorded history, commodity and currency\nmarkets predominated, and financial markets only materialized over the last few centuries. Indeed, the Dutch started them\nin the early years of the 17th century. But what conditions or\nevents could bring about such disturbing circumstances?
Another world war would suffice. Even a relatively quick\nand painless victory by the forces of one side or the other\nwould likely destroy traditional trade routes and access to\nmanufacturing and material resources. And it could be decades\nbefore worldwide confidence would return to restart\nthe planetwide economic engine. And would the merging\npostwar cultures permit free markets and capitalism? Could\nentrepreneurialism disappear, thereby discouraging economic\nand technological progress?
Traders should not scoff at these dire possibilities, as many\nmarket and political observers have noticed a profound disquiet.\nEvents from the Middle East to the Pacific Rim could\nget out of hand in an instant. But we don’t require a world\nwar, much less a regional skirmish to encourage economic\ndisaster. Prognostications are not necessary; just consider the\nconditions of trading today."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-81-82-the-future-of-the-financial-markets-by-richard-johnson-20.gif"",""height"":""607"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-81-82-the-future-of-the-financial-markets-by-richard-johnson-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-2-81-82-the-future-of-the-financial-markets-by-richard-johnson-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov311capo,d,"{""minimum-quantity"":""1"",""path"":""ch3m206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:3 (10-15): Camarilla Points by Slawomir Bobrowski"",""caption-linebreaks"":""Camarilla Points by Slawomir Bobrowski
Trading In Multiple Time Frames
Here’s how you can use camarilla points to trade in\nmultiple time frames.
Pivot points are a common trading tool, especially among\nfloor traders. Camarilla points are similar to pivot points,\nbut there are some differences. The concept is based on\nthe assumption that markets fluctuate about a point of balance\n(referred to as a pivot). Eight basic points (levels of prices) are\ncalculated by camarilla formulas for a time frame of interest.\nThe inputs are the previous trading session’s high, low, and\nclose for the time frame you choose.
Camarilla points are best suited for range trading, but are ill\nsuited for trading runaway breakouts. I will provide examples\nof such situations later on. The backtesting of trading strategies\nbased on the application of camarilla points shows that\nthe time of exposure to risk created by market uncertainties\nis reduced.
In this article I will show you how to apply the camarilla points to your trading on various time frames. “S” stands for\n“support” and “R” stands for “resistance”:
Levels S1, S2, S3, and S4 are considered basic support\nareas
Levels R1, R2, R3, and R4 are considered basic resistance\nareas
Levels S5 and R5 are added to handle breakouts
Levels S3, S4, R3, and R4 are considered the most\nimportant in a trading plan.
Most price congestion is going to happen in these support\nand resistance areas. The levels important in trading breakouts\nare R4 in conjunction with R5, and S4 in conjunction with S5.\nHowever, breakouts more often than not are better handled\nwhen using Elliott wave analysis (wave count)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-10-15-camarilla-points-by-slawomir-bobrowski-21.gif"",""height"":""611"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-10-15-camarilla-points-by-slawomir-bobrowski-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-10-15-camarilla-points-by-slawomir-bobrowski-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov311isit,d,"{""minimum-quantity"":""1"",""path"":""ch3m206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:3 (16-20): Is It Too Late To Jump In? by Avi Gilburt"",""caption-linebreaks"":""Is It Too Late To Jump In? by Avi Gilburt
Buy High, Sell Low?
When you notice momentum in the stock market or\na particular stock, is it too late to jump in? Here’s\none way you can take a step back and look at the\nmarket as a whole to avoid being trapped.
A stock that you have been watching has\nseemingly gone straight up with no end in\nsight. It caught your attention, as it did that\nof many other investors, after the second full week\nof its parabolic run. You keep watching as it goes\nup for another week while you tell yourself, as the\n“smart” investor you are, “I’ll wait for a pullback\nand then buy in for the next parabolic run that will\nsurely be coming.”
But at the end of the third week, you see the stock\nweakening. The pullback lasts about a week, and then\nyou think, “Here’s my chance!” You jump into the\nstock on the pullback. The stock goes up for another\nweek, but not quite as strongly as you had expected\nthat it would. But it doesn’t matter, because you are\nso proud that you are now making money.\nThen you wake up one morning, and the stock has\ndropped 10% in price. You convince yourself it is\njust a small setback. The parabolic rally will surely\nresume at any time now.
The stock meanders over the next few days. You\nmaintain your position, waiting for that rally to\ncontinue. The week after that, the stock gaps down\nanother 10%. The stock has now moved below the\npoint at which you bought the stock. But your ego\nwill not allow you to sell it. “It will come back. It\nwill!” you try to persuade yourself."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-16-20-is-it-too-late-to-jump-in-by-avi-gilburt-21.gif"",""height"":""623"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-16-20-is-it-too-late-to-jump-in-by-avi-gilburt-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-16-20-is-it-too-late-to-jump-in-by-avi-gilburt-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov312fufo,d,"{""minimum-quantity"":""1"",""path"":""ch3m206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:3 (21): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
Placing Stop Orders
Is it possible to place a stop order on\nan option?
As with option trading platforms, futures\nexchanges do not accept stop orders on\nelectronically placed options. Some open\noutcry execution brokers might be willing\nto take the order by phone for execution in\nthe trading pit, but in general, stop orders\non options are a thing of the past. That said,\neven if it were possible to place stop orders\non options, it isn’t generally a good idea.
On the surface, having the ability to\ndefine approximate risk via stop order\nplacement, similar to the way a futures\ntrader does, is an appealing idea. Nonetheless,\nwhether you are trading long or short\noptions, the practice works much better\nin theory than it does in reality.
By definition, a stop order becomes a\nmarket order once the stated price becomes\npart of the bid/ask spread (bid is defined\nas the price at which you can sell, and ask\nis defined as the price at which you can\nbuy). In other words, the order is elected\nonce the price of the option, as determined\nby the spread between the bid and ask,\nreaches the stop price. Upon election of\nthe stop order, the trade is executed at the\nbest possible price available.
Exchanges do not accept stop orders\non options because they are prone to\nexcessive slippage. For instance, crude\noil options rarely have market makers\nduring the overnight session. As a result,\nthe bid and ask of any particular option\nrepresents only those orders being worked\nby retail traders; in many instances, the\nspread between the prices can be excessive.\nDuring such off-market hours, it is\nnot uncommon to see the spread between\nbid and ask in multiple dollars in premium\n(thousands in price)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-21-futures-for-you-by-carley-garner-21.gif"",""height"":""651"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-21-futures-for-you-by-carley-garner-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-21-futures-for-you-by-carley-garner-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov312avag,d,"{""minimum-quantity"":""1"",""path"":""ch3m206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:3 (22-26): The Average Age Of Averages by Giorgos Siligardos"",""caption-linebreaks"":""The Average Age Of Averages by Giorgos Siligardos
A Visual Approach
Have you ever considered why you use 2/(n+1) as a smoothing\nparameter when using exponential moving averages? Here\nyou will find a simple explanation.
When you’re using an n-period exponential moving\naverage, do you ever think about why it has a smoothing\nparameter of 2/(n + 1)? And even if you did, there is a\nchance you may not understand why this formula exists\nand how it is derived. Let me explain in simple and visual\nterms the underlying reasoning behind the use of 2/(n + 1) as\na smoothing parameter.
While exponential smoothing was originated by Charles\nHolt in 1957 and Robert Goodell Brown in 1959, the first who\nused exponential smoothing to track stock prices was most\nlikely P.N. Haurlan, a rocket scientist from the Jet Propulsion\nLaboratory of NASA in the early 1960s. Haurlan published\nhis work on the subject in his 1968 booklet Measuring Trend\nValues (see “Suggested reading”).
The first connection between the simple moving average\n(SMA) and the exponential moving average (EMA) along\nwith the 2/(n + 1) conversion formula was presented in\nBrown’s 1963 book, Smoothing, Forecasting And Prediction\nof Discrete Time Series. Later, the conversion formula became\nbroadly adapted by technical analysts after the publication of Jack Hutson’s 1984 article “Filter Price Data:\nMoving Averages Vs. Exponential Moving\nAverages” in Technical Analysis of Stocks &\nCommodities (see “Suggested reading”).
The connection between SMA and EMA\nin Brown’s book originates from the idea of\nequating the average age of price data for the\ntwo smoothing methods."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-22-26-the-average-age-of-averages-by-giorgos-siligardos-21.gif"",""height"":""611"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-22-26-the-average-age-of-averages-by-giorgos-siligardos-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-22-26-the-average-age-of-averages-by-giorgos-siligardos-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov312qaby,d,"{""minimum-quantity"":""1"",""path"":""ch3m206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:3 (27): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
ARE CHANGES DOING US GOOD?
Mr. Bright, first of all, I want to thank\nyou for your assistance in the past. You\nhave been kind enough to send back\nemail responses personally, and I read\nyour column in Stocks & Commodities\nevery month.
There have been so many changes\nin the markets over the last few years,\nsome good, some not so. I am looking\nforward to a new year of trading and\nwas hoping you could help me with a\nfew issues. Perhaps either give me some\nsolace, or send me in another direction.\nThank you in advance:
1. Fear or fantasy. Subpennies and highfrequency\ntrading (HFT). You’ve written\nabout both, but I would love to hear\nyour opinion about them for 2013.
2. Strategies. You’ve spoken highly about\nopening-only plays, pairs trading,\nmarket on close (MOC) imbalances,\nand basic market making. How are\ntraders making these things work?\nAnd is there anything new in the Bright\nTrading group?
3. Market centers. I’ve been told there\nare dozens more market centers than\nI can see on my screen. Can you tell\nme if there are any edges that can be\nderived from these locations? How\nmany do your people use?
—Chicagotrademan
Good questions. I’m going to defer,\nonce again, to Dennis Dick, a top Bright\ntrader and CFA, for the first question:
“Adjusting your trading style for the\nHFT toll: the one thing that high-frequency\ntrading has done is monopolized the\ntop of the order queue. That means the\nhigh-frequency traders are always the\nfirst to get filled at any pricing increment.\nThey have various tools that allow them\nto get to the top of the queue, whether\nthrough the use of subpennies, order\ntypes, or speed."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-27-q-a-by-don-bright-20.gif"",""height"":""649"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-27-q-a-by-don-bright-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-27-q-a-by-don-bright-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov312exmu,d,"{""minimum-quantity"":""1"",""path"":""ch3m206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:3 (28-32): Extended Multiple Time Frame Analysis by Tristan Jeanneault"",""caption-linebreaks"":""Extended Multiple Time Frame Analysis by Tristan Jeanneault
Seeing The Undercurrents
This new twist to applying multiple time frame analysis will\nhelp you refine your entry and exit points.
Multiple time frame analysis (MTA) is not a new concept\nto traders but it can be examined in a new way, making\nit a more robust tool. The concept can be used in\nconjunction with any trading strategy, and it works well\nfor most markets that can be traded. MTA allows you to set\nup your trading desktop and:
Identify the underlying trends in the market
Gauge the strength of a trend
Visualize the potential maximum daily range of the\nmarket
Visualize the common levels of support/resistance\nover multiple time frames
Filter existing trade indicators (signals)
Refine your entry and exit points.
Most traders trade with the market trend, buying or selling\nretracements against the prevailing one. However, many traders\nbecome frustrated when the retracement they buy or sell\nis actually an inflection point in the market, leaving them in\na trade against the new trend, ultimately leading to a stopout\nand fewer profitable trades."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-28-32-extended-multiple-time-frame-analysis-by-tristan-jeanneault-20.gif"",""height"":""630"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-28-32-extended-multiple-time-frame-analysis-by-tristan-jeanneault-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-28-32-extended-multiple-time-frame-analysis-by-tristan-jeanneault-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov313quin,d,"{""minimum-quantity"":""1"",""path"":""ch3m206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:3 (33): Quick-Scan: Investprofits.com by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Investprofits.com by Jayanthi Gopalakrishnan
INVESTPROFITS.COM
info@investprofits.com
You can view stock charts and educational\nvideos as well as identify buy/sell signals\nwith this free charting website. If you\nwant to familiarize yourself with technical\nanalysis, the various features available in\nthis site will introduce you to charting,\nmany technical analysis indicators, and\nhow you can apply them to your trading.
To access all the features, you do need\nto register, but it’s a simple process and\nthe nice thing is it is free. If you’re a\nFacebook or Twitter user, you can log on\nfrom those accounts. If you don’t have a\nJava application installed, you will need\nto do that to access the charting feature.\nI have not had much luck with websites\nthat have charting features that run on a\nJava applet, and this one was no different.\nNonetheless, features are offered here that\nare worth mentioning, especially for those\nwho are new to technical analysis."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-33-quick-scan-investprofits-com-by-jayanthi-gopalakrishnan-20.gif"",""height"":""652"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-33-quick-scan-investprofits-com-by-jayanthi-gopalakrishnan-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-33-quick-scan-investprofits-com-by-jayanthi-gopalakrishnan-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov313chva1,d,"{""minimum-quantity"":""1"",""path"":""ch3m206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:3 (34-36): The Chartmill Value Indicator (Part 3) by Dirk Vandycke"",""caption-linebreaks"":""The Chartmill Value Indicator (Part 3) by Dirk Vandycke
Enhancing And Nonenhancing
In the final article of this series, you’ll find more ways to apply the Chartmill value indicator\nand determine if it enhances the indicators you already use.
The Chartmill value indicator (CVI) is a short-term oscillator which, like dozens of other\noscillators, tries to capture overbought and oversold situations. Because it is created using\na statistical normalization procedure, it is unlike most other well-known oscillators. For\none, it doesn’t suffer from the stickiness that keeps other range-bound oscillators in overbought\nand oversold zones while a strong trend is developing. Second, the CVI copes nicely with the lag\nthat moving average–based oscillators have. Finally, because it doesn’t use any parameters, it is objective in its definition\nand hence is ideal for algorithmic\nimplementation in\nsoftware.
Hence, it becomes necessary\nto have an objective\ninterpretation of the\nCVI. In this article, you\nwill find out if the CVI has\nany real and statistically\nsignificant usefulness.
Recap
The CVI going below ‑8\n(two standard deviations)\nis considered oversold or\nshort-term undervalued,\nwhile having it above +8\nwould be overbought and\nshort-term overvalued. If\nnecessary, you can consider\nsmaller intervals to\nincrease the number of\nsamples like [‑7, +7], as\n[‑8, +8] might give too few\nsignals while backtesting.\nIn addition, the interval\nused doesn’t have to be\nsymmetrical. In a bull market,\nyou could consider\nanything below ‑6 already\noversold. But the indicator\nseems to perform well using\n[‑8, +8]. The changes\nin the interval are merely\nto drive up sample size\nin backtests and generate\nmore signals."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-34-36-the-chartmill-value-indicator-part-3-by-dirk-vandycke-20.gif"",""height"":""641"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-34-36-the-chartmill-value-indicator-part-3-by-dirk-vandycke-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-34-36-the-chartmill-value-indicator-part-3-by-dirk-vandycke-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov313inme,d,"{""minimum-quantity"":""1"",""path"":""ch3m206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:3 (38-44): Interview: Measuring Market Internals With L.A. Little by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Measuring Market Internals With L.A. Little by Jayanthi Gopalakrishnan
L.A. Little, who is a professional money manager trading his own accounts\nwhile managing investment funds for qualified investors from his Coloradobased\noffice, is the author of three books (Trade Like The Little Guy, Trend\nQualification And Trading, and Trend Trading Set-Ups) and has written\nextensively for many popular publications such as Active Trader, TheStreet.\ncom, RealMoneyPro.com, MarketWatch.com, Minyanville.com, and Technical\nAnalysis of Stocks & Commodities. He writes daily on his website Technical\nAnalysis Today (www.tatoday.com), which offers services that implement the\nconcepts he espouses. He may be reached at tat@tatoday.com.
Stocks & Commodities Editor Jayanthi Gopalakrishnan interviewed Little\non January 5, 2012.
L.A., can you tell us about your\nbackground and how\nyou got interested in the\nfinancial markets?
I was raised on a ranch in Texas, and\nthat led me to my first experience with\nthe markets. My father had a herd of beef\ncattle — I don’t remember the exact time,\nbut it was around the autumn of 1973 —\nand he was trying to figure out the best\ntime to sell his herd. Because of the oil\nembargo that was taking place at that\ntime, there was a lot of inflation.
The question we faced was, “How do\nwe time the market?” I was fascinated\nby the idea. Although I didn’t act on\nthat curiosity until much later, that was\nmy first experience with realizing that\nthere was this dynamic system out there\nwhere things got priced. And that those\nwith products to bring to market have to\ntry to figure out when is the best time\nto sell.
We were rudimentary in our approach,\nand we were absolutely wrong when we\nsold! But that was my first experience\nwith the market. When I began trading\n— around 1988 or 1989 — I traded the\ncommodity markets. That was where I\ntried to make my fortune, so to speak.\nBeing able to leverage your money like\nyou can in the commodity markets and\nthe potential to become a millionaire overnight was enticing. But like most\npeople, I lost my money."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-38-44-interview-measuring-market-internals-with-l-a-little-by-jayanthi-gopalakrishnan-20.gif"",""height"":""584"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-38-44-interview-measuring-market-internals-with-l-a-little-by-jayanthi-gopalakrishnan-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-38-44-interview-measuring-market-internals-with-l-a-little-by-jayanthi-gopalakrishnan-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314bofo,d,"{""minimum-quantity"":""1"",""path"":""ch3m206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:3 (45): Books For Traders by Technical Analysis Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new book offerings."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-45-books-for-traders-by-technical-analysis-inc-20.gif"",""height"":""666"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-45-books-for-traders-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-45-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314prre,d,"{""minimum-quantity"":""1"",""path"":""ch3m206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:3 (46-51): Product review: Updata (Part 2) by Dennis Peterson"",""caption-linebreaks"":""Product review: Updata (Part 2) by Dennis Peterson
UPDATA
77 Water Street, 8th floor
New York, NY 10005
Phone: 646 400-5893
Email: sales@updataTA.com
Internet: http://www.updatata.com,\nhttp://www.updata.co.uk
Product: Technical analysis platform
Requirements: Windows XP/Vista/7 or\n8 (32 or 64 bit); dual core processor+;\n4GB RAM+; 2GB hard disk space
Price: Updata Pro $395/month (minimum\none year); Updata Trader Pro\n$499/year; Updata Analytics (requires\nBloomberg feed) $100/month
In part 1 of this two-part series, I\ncovered the basics of Updata.\nThis time, I will cover features,\nsome of which are difficult to find\nanywhere else. As in the first part of\nthe review, all chart data was provided\nthrough an eSignal datafeed, although\nUpdata is compatible with more than 20\ndifferent datafeeds, including Thomson\nReuters.
Charting
A poorly understood area by many\nanalysts/traders is point & figure (P&F)\ncharting. P&F ignores time and is only\nconcerned about price movement. Typically,\nit takes the form of columns of Xs\nand Os. Each X or O is called a box.\nA box represents a price change. How\nmuch change is up to the user, but the\nimportant aspect of box size is that any\nprice movement less than the box size\ndoes not create a new box. If you had\na box size of $1.00 and prices were at\n$100 and went to $100.99, it would not\ncreate a new box. If prices went to $101,\nyou would have an additional box, and\nin this case it would be an X, not an O,\nsince prices went up."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-46-51-product-review-updata-part-2-by-dennis-peterson-20.gif"",""height"":""638"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-46-51-product-review-updata-part-2-by-dennis-peterson-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-46-51-product-review-updata-part-2-by-dennis-peterson-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov315exyo1,d,"{""minimum-quantity"":""1"",""path"":""ch3m206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:3 (52-53): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
AN OPTION TWIST ON DOGS OF THE DOW
Dogs of the Dow is a stockpicking strategy\ndevoted to selecting high-dividend\nstocks. Over time, the dogs have yielded\nabout 50% more per year on average than\nsimply buying the Dow Jones Industrial\nAverage (DJIA). The last few years,\nhowever, the dogs have been mixed. Will\nthis trend continue, or is there safety in\nbuying the dogs in the event that the\nmarket will continue to stabilize?
Investing in the dogs is relatively\nsimple. After the stock market closes on\nthe last trading day of the year, of the\n30 stocks that make up the DJIA, select\nthe 10 stocks with the highest dividend\nyield. The strategy involves investing\nequal dollar amounts in each stock that\nqualifies as a dog. Then hold these 10\ndogs for one year. Repeat annually. It\ncan’t get any simpler than that.
The safety is in the dividend yields,\nand with the market down big again,\ndividends are higher than normal. There\nare a few that I like very much for more\nthan this reason. Of the 10 dog stocks,\ntake a look at the cheapest five, which\nare referred to as the “puppies of the\nDow,” or the “Flying Five.” They offer\na smaller stock price and are considered\nsafer due to stock price. The investment\nstrategy is no different from the 10 dogs.\nLet’s look at the five stocks over the last\nyear (Figures 1 through 4)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-52-53-explore-your-options-by-tom-gentile-20.gif"",""height"":""613"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-52-53-explore-your-options-by-tom-gentile-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-52-53-explore-your-options-by-tom-gentile-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov31560tr,d,"{""minimum-quantity"":""1"",""path"":""ch3m206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:3 (54-56, 60-65): Traders’ Tips by Technical Analysis Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis Inc.
For this month’s Traders’ Tips, the focus is\nSlawomir Bobrowski’s article in this issue,\n“Camarilla Points.” Here we present the\nMarch 2013 Traders’ Tips code with possible\nimplementations in various software.
Traders’ Tips code is provided to help the\nreader implement a selected technique from\nan article in this issue. The entries are contributed\nby various software developers or programmers\nfor software that is capable of customization.
Readers will find the March 2013 Traders’ Tips code\nat our website, Traders.com, in the Traders’ Tips area.\nHere, you can read some discussion of the technique’s\nimplementation by the Traders’ Tips contributors as well\nas some example charts.
To locate Traders’ Tips at our website, click on the link\nfrom our home page, or use our site’s search engine."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-54-56-60-65-traders-tips-by-technical-analysis-inc-21.gif"",""height"":""650"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-54-56-60-65-traders-tips-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-54-56-60-65-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov318leto1,d,"{""minimum-quantity"":""1"",""path"":""ch3m206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:3 (8-9): Letters To S&C by Technical Analysis Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis Inc.
Two EXCELLENT ARTICLES
Editor,
Dennis Meyers deserves huge congratulations\non his January 2013 article\nin S&C, “The British Pound Cubed,\nRedux.” I think it’s one of the best articles\never published in Stocks & Commodities.\nThe article includes numerous solid\ntechniques based on Meyers’s considerable\nexperience. It offered clear and\ndetailed formulas, and it had meaningful\nlength. I wish all articles provided as\nsufficient information to reproduce the\nresults as Meyers’s did.
Congratulations also to Dirk Vandycke\nfor his excellent article in the January\n2013 issue of S&C, “The Chartmill Value\nIndicator.” It’s very well written and\ninsightful. I especially appreciate how\nhe included detailed formulas so we can\nreproduce his calculations. I only wish I\ndidn’t have to wait another month to see\nthe continuation of this article. Please\nwrite much more.
Scott Z.
INTERVIEW WITH Mish Schneider
Editor,
Thanks so much for your\ninterview with Mish Schneider\nin your November\n2012 issue (“Michele\n‘Mish’ Schneider Of\nMarketGauge”).
It was one of the most\nencouraging articles for a trader one could read. It really reinforced what you\nteach. It was really neat to get the glimpse\ninto how she got to where she is today.\nSure glad Keith was there to rescue her\nfrom the “floor wolves.”\nThanks for that interview and thanks\nto her for all she does to help the retail\ntrader.
Steve P"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-8-9-letters-to-s-c-by-technical-analysis-inc-21.gif"",""height"":""653"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-8-9-letters-to-s-c-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-3-8-9-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov311cofi,d,"{""minimum-quantity"":""1"",""path"":""ch4a209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:4 (10-13): The Contracting Fibonacci Spiral by David Petch"",""caption-linebreaks"":""The Contracting Fibonacci Spiral by David Petch
Capturing Human Psychology
Are the markets trapped? Find out about contracting\nFibonacci spirals and their implications for the financial\nmarkets going forward.
Currently, the broad market indexes are trapped in a contracting\nFibonacci spiral (CFS), with the implications\nof the CFS between December 2012 and 2020. Figure\n1 illustrates the importance that a currency has within a\nsociety. The method by which a currency is backed, be it by\na gold standard or fiat declaration, affects mass psychology.\nPatterns of mass psychology form various cycles, which are\nlinked to progression through longer-term durations. The\nstock market is the ultimate method of capturing human\npsychology ranging from greed to fear, and every combination\nin between.
In the 1930s, commodity-backed monetary policy tended\nto make people more honest, which was a direct reflection of\nthis policy. As time went by, the economy became increasingly\nunstable, bringing high-order events closer and closer in the\neconomy and markets. Every cycle has booms and busts, but\nthe CFS has numerous tops that have occurred within 5% of set\ntime posts, followed by corrections of at least 40% to 50%."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-10-13-the-contracting-fibonacci-spiral-by-david-petch-21.gif"",""height"":""593"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-10-13-the-contracting-fibonacci-spiral-by-david-petch-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-10-13-the-contracting-fibonacci-spiral-by-david-petch-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov311rean,d,"{""minimum-quantity"":""1"",""path"":""ch4a209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:4 (14-20): Reelections And The Presidential Cycle by Koos van der Merwe"",""caption-linebreaks"":""Reelections And The Presidential Cycle by Koos van der Merwe
How’d They Do?
What happens to the markets when a US\nPresident is elected for a second term?
My article “The Kondratieff Wave And The Presidential\nCycle” was published in July 2012. At the end of\nit, I concluded that “with the K-wave suggesting a rise into\n2016, the pattern suggests that President Obama will be\nreelected.” It is gratifying to know that technical analysis\nand the cyclical pattern can predict the future. But to be\nhonest, I hedged my bets with this statement:
Although the relationship between the Presidential election\ncycle and the stock market appears to be strong, it does not\nmean that the play will be the same every cycle. However,\nwhen combined with technical analysis, additional insights\ncan assist investors in their investment decisions.
Keeping that in mind, looking at the Presidential cycle in\ncloser detail bears study. Why, for example, did the market fall the week after President Obama was reelected? Was\nthis correction forecast by the Presidential cycle? Surely,\nthe Dow Jones Industrial Average (DJIA), the Standard\n& Poor’s 500, and the NASDAQ should have continued\nrising as forecast by the Kondratieff wave. Surely those\nRepublicans who bought shares betting on a win by their\ncandidate would not have sold their shares indiscriminately\nwithout looking at the technicals first?
The Presidential cycle
To figure out all these unknowns, a closer study of the\nPresidential cycle is necessary. I have also added the\nFederal Reserve chairmanship cycle to the chart to see if\nthis cycle has any bearing on the movement of the market.\nFigure 1 shows the Kondratieff wave updated, with an\noverlay of the S&P 500 to November 18, 2012."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-14-20-reelections-and-the-presidential-cycle-by-koos-van-der-merwe-21.gif"",""height"":""593"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-14-20-reelections-and-the-presidential-cycle-by-koos-van-der-merwe-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-14-20-reelections-and-the-presidential-cycle-by-koos-van-der-merwe-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov312liai,d,"{""minimum-quantity"":""1"",""path"":""ch4a209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:4 (22-25): Lindsay’s Aid To Timing by Ed Carlson"",""caption-linebreaks"":""Lindsay’s Aid To Timing by Ed Carlson
The Methods Of The Man
George Lindsay made some significant contributions to\ntechnical analysis, yet we often don’t hear about him or his\nwork. Here’s a look at his methods and how they can be\napplied in today’s markets.
\nAlthough unfamiliar today, analyst George Lindsay was\nwell known in his time (1950s to 1970s). He never\nwrote a book about his unusual and unique market\ntiming methods, so the books I wrote about Lindsay and his\ntechniques are the result of cobbling together information\nfrom his old newsletters, all of which are at least 40, 50, and\neven 60 years old. Someone once referred to my work about\nhim as my “journey with Lindsay.” It’s true! It has been a\nlearning experience finding and reading his newsletters in\norder to understand what he was doing that enabled him to\nforecast market highs and lows months in advance and often\nto the very day. I am indebted to those who shared those\nnewsletters with me.
During the writing of my first book, George Lindsay And\nThe Art Of Technical Analysis, I often found Lindsay making\nreferences to his 1950 paper, “An Aid To Timing.” It wasn’t\nuntil after my book was published that chartist Sam Hale sent\nme a folder of old Lindsay newsletters he had kept for decades.\nThere in that folder was the missing paper.
In Lindsay’s seminal paper, published in 1950, he laid out\nthe framework. The basic cycles are used to determine from which lows in the market the basic\nmovements are counted. In my latest\nbook, An Aid To Timing: The Annotated\nEdition, I have reproduced the entire\npaper in order to preserve it for history.\nI have added annotations to the text in\norder to better explain what Lindsay\nwas doing.
When it comes to George Lindsay,\neven though he devised numerous and\nmore rigorous trading methods, most\npeople are preoccupied with his bestknown\nmodel, three peaks and a domed\nhouse. The real magic lies with his standard time spans and,\nas I discovered, the basic cycles."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-22-25-lindsay-s-aid-to-timing-by-ed-carlson-21.gif"",""height"":""593"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-22-25-lindsay-s-aid-to-timing-by-ed-carlson-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-22-25-lindsay-s-aid-to-timing-by-ed-carlson-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov312hesh,d,"{""minimum-quantity"":""1"",""path"":""ch4a209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:4 (26-29): Head & Shoulders, Algorithmically (Part 1) by Giorgos Siligardos"",""caption-linebreaks"":""Head & Shoulders, Algorithmically (Part 1) by Giorgos Siligardos
New Tech For Old Tech
Ever wanted to use a simple mechanical recognition algorithm\nin your favorite software for spotting head & shoulders patterns?\nIf yes, this two-part article is for you. Here’s the first\npart.
If you were asked to represent the term “chart analysis”\nsomehow, you would probably start with a drawing of\nthe patriarch of chart formations: the head & shoulders\n(H&S). The H&S is usually one of the first formations you’ll\nencounter in chart analysis, and it is certainly an unforgettable\none. In this article — the first of two — I will present a way\nto algorithmically identify milestone points of a H&S in a\nscale-free fashion. Then, in the second article, I will tell you\nabout the basic conditions these points satisfy so a recognition\nalgorithm will be achievable.
Pattern recognition & technical analysis
The difficulty in algorithmic pattern recognition for technical\nanalysis lies mainly in variation and scale problems. They are:
Variation problems
The beauty of a price formation is in the eye of the beholder.\nThis means that since price moves in zigzags, there are endless\nways for a textbook pattern to manifest itself in a real\nprice chart. If you try to create a pattern recognition algorithm using a simple swing indicator (that is, a crooked line that\nconnects peaks to troughs based on a percentage threshold),\nyou will probably give up when you realize that your eyes,\nperception, and probably your charting experience are not\nsatisfied with the results and that numerous cases must be\ntaken into account.
Scale problems
Almost all chart formations of classic technical analysis are\nscale-free. A formation may take from a few to as many as\nhundreds of price bars to develop and it may take price swings\nranging from minuscule to huge, so again the use of a simple\nswing indicator is inefficient for decent pattern recognition\nand of little practical help most of the time."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-26-29-head-shoulders-algorithmically-part-1-by-giorgos-siligardos-21.gif"",""height"":""593"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-26-29-head-shoulders-algorithmically-part-1-by-giorgos-siligardos-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-26-29-head-shoulders-algorithmically-part-1-by-giorgos-siligardos-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov313lotr,d,"{""minimum-quantity"":""1"",""path"":""ch4a209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:4 (30-34): Low-Frequency Trading by Ron McEwan"",""caption-linebreaks"":""Low-Frequency Trading by Ron McEwan
Low-Tech, Low-Stress
Here’s one way you can combat the high-frequency traders.\nThe best part is, you can sleep well at night, using the oneyear\nmoving average of the cumulative advance-decline\ndata.
Is Wall Street turning your 401k into a 201k? Maybe you\ndon’t have a bank of supercomputers in your garage\ncranking out high-speed trading algorithms. Maybe\nyou don’t golf with a member of the Federal Banking Committee\nwho can offer “insights” into upcoming market-moving\ndecisions. Or maybe your neighbor isn’t a ranking member\nof the US Treasury Department with wealth-creating tips. If\nyou’re an individual retail trader who doesn’t have access to\nthe information that moves the markets, then you may be a\ncandidate for low-frequency trading.
Low-frequency trading?
You’ve heard of high-frequency trading. Low-frequency\ntrading is the alternative to the gut-wrenching, career-ending,\nthrombosis-inducing 200 trades a millisecond technology\ncalled high-frequency trading. Low-frequency trading lets you\nsleep at night and spend time with your family, friends, and\nreal-life interests. With this method, you only need to update\nyour data and check your signals a few times a year (or as\noften as you like). All you will need is a pencil and paper, a\nnewspaper, or a personal computer with a spreadsheet program. The data you need can be found in the daily business section\nof most newspapers or available online.
Here’s how it works
The low-frequency trading strategy is simply to be in the stock\nmarket when the cumulative advance-decline line is above its\none-year moving average and to be out of the market when\nthe cumulative advance-decline line falls below the one-year\nmoving average.
A longstanding and time-tested stock market indicator is\nthe measure of advancing issues versus declining issues. This\ndata has been available for analysis since before the advent of\nthe desktop PC. It is the data source that has been the basis for\ngenerations of in-depth analysis and given birth to a vast list\nof technical indicators. This article covers a basic technique\nthat is the simple one-year moving average of the cumulative\nadvance-decline data."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-30-34-low-frequency-trading-by-ron-mcewan-21.gif"",""height"":""593"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-30-34-low-frequency-trading-by-ron-mcewan-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-30-34-low-frequency-trading-by-ron-mcewan-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov313qaby1,d,"{""minimum-quantity"":""1"",""path"":""ch4a209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:4 (33): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
ANALYST REPORTS
I am part of a small group of traders and\ninvestors, most of us pretty new to the\nbusiness. We spend a lot of time doing\nresearch, checking charts, fundamentals,\ntechnicals, and all the rest. A newcomer\nto our group is telling us we should really\njust focus on analyst reports, because\nit’s easier to rely on these “experts.”\nWhat do you and your team of traders\nrely on?
—Jeric
Let’s go through the list, and then I’ll\nanswer your question regarding analysts\ndirectly. First, we are big fans of doing\nresearch ourselves. Of course, we have\nteams who share in the work, but when\nit comes to the individual trader, especially\none with fewer than five years’\nsolid experience, doing it yourself is\nalmost a must.
Fundamentals are very important,\nespecially for longer-term positions. We\nfocus on factors like price to book value\ninitially. The book value (BV) is basically\nthe value of the company based on assets\nminus liabilities and can be thought of\nas similar to the BV of your car. You\nwouldn’t want to pay $10,000 for a car\nwith a book value of $5,000, right? Sort\nof similar with stock valuations."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-33-q-a-by-don-bright-21.gif"",""height"":""593"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-33-q-a-by-don-bright-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-33-q-a-by-don-bright-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov313inma,d,"{""minimum-quantity"":""1"",""path"":""ch4a209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:4 (34-39): Interview: Market Cycles With Donald Dony by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Market Cycles With Donald Dony by Jayanthi Gopalakrishnan
Money Has No Home
Donald W. Dony is a professional technical analyst and holds the top global\ndesignation of Master of Financial Technical Analysis from the International\nFederation of Technical Analysts (IFTA), the first in Canada to achieve this\ndesignation. Dony has been in the investment profession for more than 25 years,\nfirst as a stockbroker and then as the principal of DW Dony and Associates, a\nfinancial consulting firm. He is the editor and publisher of the Technical Speculator,\na monthly international investment newsletter, which reviews major world\nequity markets, currencies, commodities, bonds and interest rates.\nDony is often called upon to design technical analysis training programs\nand provide teaching to industry professionals on technical analysis at many\nof Canada’s leading brokerage firms. He is a respected specialist in the area of\nintermarket and business cycle analysis and a frequent speaker at international\ninvestment conferences. He is a member of the Canadian Society of Technical\nAnalysts and IFTA.
Stocks & Commodities Editor Jayanthi Gopalakrishnan interviewed Donald\nDony on January 29, 2013.
Donald, how did you get started in\nthe markets?
My dad was always interested
in the markets. He was similar to a lot\nof people of that generation. They held\nonto things, never sold. They stayed\nwith a company, thick or thin. That got\nme interested.
In the 1980s, it was a difficult time\nto find a job and I had taken the Canadian\nSecurities Institute course, mainly\nbecause I didn’t know what I wanted\nto do. I passed the course. I didn’t get\nhired right then, but I continued taking\nmore and more courses and advancing\nmy education.
Eventually, I did get hired and I stayed\nwith one of the major banks until the\nearly 1990s. I recognized I wanted to be\nmore of an analyst than a stock salesman.\nSo I took more courses and finished my\nmaster’s degree in financial technical\nanalysis (MFTA). I finished that in 2004,\nI think, and put my shingle out, and now,\nI send research all around the world."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-34-39-interview-market-cycles-with-donald-dony-by-jayanthi-gopalakrishnan-21.gif"",""height"":""593"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-34-39-interview-market-cycles-with-donald-dony-by-jayanthi-gopalakrishnan-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-34-39-interview-market-cycles-with-donald-dony-by-jayanthi-gopalakrishnan-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314syde,d,"{""minimum-quantity"":""1"",""path"":""ch4a209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:4 (40-43): System Design Software (Part 1) by Sunny Harris"",""caption-linebreaks"":""System Design Software (Part 1) by Sunny Harris
Basics Of Using Trading Software
Back when I first began\ntrading, only one\npiece of software addressed\nthe trading community:\nit was called CompuTrac, the\nonly available DOS program\nfor a long time. It was wonderful\nby comparison to the\nalternative: pen and paper, or\neven primitive spreadsheets.\nCompuTrac (the company) put\non annual seminars where they\ninvited notable gurus to share\ntheir trading ideas. It was exciting\nto meet all these famous\npeople face-to-face.
Somewhere along that time\ncame an upstart young company\ncalled Omega Research. They\nintroduced a DOS program\ncalled SystemWriter, later\nSystemWriter Plus. It answered a fantasy: backtesting concepts and\nproducing detailed reports of the\noutcomes. It only processed daily data,\nbut I created 15-minute data (by hand)\nand fed it into SystemWriter Plus and\nthen wrote in all the corresponding times\non my charts. It was definitely primitive.\nBut it was head and shoulders above\nanything else available.
When Windows came along, it didn’t\ntake long for it to catch on, along with\nthe need for intraday data. And along\ncame an upgrade to SystemWriter Plus,\ncalled TradeStation. After that, it all\nhappened very fast, as computers became\nmore sophisticated, operating systems\nblossomed, and datafeeds got faster.
I do not pretend to know all there is\nto know about available software. I’m\ndangerous: I know a little about a lot, but\nnot a lot about much except TradeStation.\nIn this series of reviews, I will show you\navailable software products, but not a\nlot about them. This isn’t meant to be\nin-depth reviews of each product, but\na sweeping stroke over a lot of choices\navailable to you as a trader.
I will present these products alphabetically,\nwith no evaluation as to fitness for\npurpose. That is up to you. I have lots\nof software because I love software and\nbuy everything I can afford. I’ll show\nyou what I currently have."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-40-43-system-design-software-part-1-by-sunny-harris-21.gif"",""height"":""593"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-40-43-system-design-software-part-1-by-sunny-harris-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-40-43-system-design-software-part-1-by-sunny-harris-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314prre1,d,"{""minimum-quantity"":""1"",""path"":""ch4a209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:4 (44-47): Product Review: Ditto Trade by Donald Pendergast"",""caption-linebreaks"":""Product Review: Ditto Trade by Donald Pendergast
DITTO TRADE
200 W. Monroe St., Suite 1675,\nChicago, IL 60606
Internet: http://www.dittotrade.com
Email: info@dittotrade.com
Phone: 877 99-DITTO
Fax: 312 263-8333
Product: Trading platform
Price: Free with a brokerage account
Imagine a scenario where you open\nand fund a brokerage account, download\none of its trading platforms, and\nthen review the real-world trading track\nrecords of a group of high-performance\ntraders and/or trading advisory services\nwith attractive returns. Since you have\nlittle or no time (or inclination) to put in\nthe hundreds of hours required to build\nyour own trading system from scratch\n(assuming you have the years of market\nexperience and education to do that in the\nfirst place), much less seven hours a day\nto monitor the markets, you simply scan\nthrough the list of performance rankings\nand decide to sign up for a trading service\nthat will allow you to take the exact same\ntrades, and as part of the same block trade\nas the lead trader at the advisory service\nwith the great track record.
The cost for such a service might run\nfrom $25 to $99 per month (or maybe\nmore, depending on the style of trading,\ntypes of markets traded, and so on), but\nsince the trading service you’ve signed\nup for has such a terrific real-life track\nrecord, paying such a monthly fee\nappears to be a bargain, far outweighing\nthe monthly subscription fee.
Even better, you retain control over\nyour trading account and with a simple\nclick of a button can choose to opt out of\ncertain trades or, once a trade is initiated\nby the trading service, you can opt to\nmanage the trade on your own and close\nit early, add more shares, or hold the\nopen position for as long as you like.\nEven better, you no longer have to do\nyour own after-hours market research,\nscanning for stocks, testing and running\nsystems, placing your own orders with\nyour broker, checking the next morning\nto see if you were filled.
In short, you now have all the\nadvantages of having access to a winning\nmethodology for your own trading\naccount but without having to devote all\nof the time and effort needed to operate\nand maintain it."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-44-47-product-review-ditto-trade-by-donald-pendergast-21.gif"",""height"":""593"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-44-47-product-review-ditto-trade-by-donald-pendergast-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-44-47-product-review-ditto-trade-by-donald-pendergast-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314fufo1,d,"{""minimum-quantity"":""1"",""path"":""ch4a209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:4 (48): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
FOCUS ON ONE MARKET OR SEVERAL?
Should I focus on one market, or scan\nseveral markets for opportunities?
The answer to this question largely\ndepends on the strategy used and the time\nframe you are trading in. For instance,\na daytrader is likely to have developed\nspecific technical trading guidelines to\ntrigger entry and exit signals. However,\nnot all markets are created equally — and\nwhat works in one may not\nwork in another.
Accordingly, to daytrade\nmultiple markets it might\nbe necessary to implement\nslightly different trading\nparameters for each symbol\ntraded. In addition, it can\noften be difficult to follow\nmultiple markets on short\ntime frames. Unlike position\ntraders, the difference\nbetween profit and loss for\na daytrader can be a few\nshort minutes, or even seconds. On the\nother hand, a position trader, particularly\nan option trader, would likely find an\nadvantage in the ability to diversify his\nspeculations among multiple markets.\nUnlike daytraders, position traders have\nthe luxury of having ample reaction time\nand less hands-on monitoring. Therefore,\na position trader can likely monitor a\nhandful of markets simultaneously.
Although it is clear that personality,\nnatural talent, and the ability to focus\nall play a part in whether a trader can be\nsuccessful across multiple asset classes,\nas a rule of thumb, daytraders should limit\nthemselves to a couple of markets. Position\ntraders, on the other hand, should\nconsider any liquid commodity market\nfair game. Obviously, the term liquid is\nambiguous, but the idea is that you should\nrefrain from trading option markets with\nwide bid-ask spreads such as lumber and\ncopper. Likewise, futures markets that\nsee daily volume below about 30,000\nshould be traded sparingly."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-48-futures-for-you-by-carley-garner-21.gif"",""height"":""593"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-48-futures-for-you-by-carley-garner-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-48-futures-for-you-by-carley-garner-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314trti,d,"{""minimum-quantity"":""1"",""path"":""ch4a209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:4 (49-56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is\nRon McEwan’s article in this issue, “Low-\nFrequency Trading.” Here we present the\nApril 2013 Traders’ Tips code with possible\nimplementations in various software.
Spreadsheet formulas for Microsoft Excel\nare already provided in McEwan’s article.\nSubscribers will find a copy of his spreadsheet\nat the Subscriber Area of our website, www.Traders.\ncom. (Click on “Article Code” from our homepage.)\nPresented here is an overview of possible implementations\nfor other software.
Traders’ Tips code is provided to help the reader implement\na selected technique from an article in this issue.\nThe entries are contributed by various software developers\nor programmers for software that is capable of customization.
Readers will find the April 2013 Traders’ Tips code at\nour website, Traders.com, in the Traders’ Tips area. Here,\nyou can read some discussion of the technique’s implementation\nby the Traders’ Tips contributors as well as\nsome example charts.
To locate Traders’ Tips at our website, click on the link\nfrom our home page, or use our site’s search engine."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-49-56-traders-tips-by-technical-analysis-inc-21.gif"",""height"":""593"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-49-56-traders-tips-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-49-56-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov316exyo,d,"{""minimum-quantity"":""1"",""path"":""ch4a209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:4 (61): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
DOUBLE SPREADS
At a recent seminar, I was asked what might\nbe the best way to take advantage of a stock\nthat drops after an earnings disappointment.\nI knew what stock he was talking\nabout — Apple (AAPL). Just a week earlier,\nI had created a case study for AAPL just\nafter the earnings report. Here’s a typical\npost-earnings drop on a big-name stock,\nas well as one strategy to look at trading\nwhen this occurs.
Typically, post-earnings disappointments\nare not from good stocks. Companies\npost earnings outside of the daytime\ntrading sessions, usually announcing\nafter the market close or before the\nmarket opens. Often, this results in a\ngap occurring, as the stock will most\nlikely drop. Unless you want to trade\nthe after- or before-market sessions, as\noption traders we are limited to trading\nwhen the market opens in New York\nfollowing the announcement. Because\nafter- and before-market announcements\ngive us an idea of where the stock will\nbe trading during the next-day session,\nit gives us time to set up a strategy.
Typically, the option market gets\nstirred up right before an important\nearnings announcement, and implied\nvolatility gets higher than average. After\nthe announcement, the next session will\nusually see the stock price move, either\nup (for positive earnings announcements)\nor down (for negative), but option\npremiums will most likely fall either way.\nBut there are rare occurrences when a\nstock drops, and the time premium in\noptions will not fall as fast. This presents\nan opportunity for the option seller. But how\ndo we sell premium and protect ourselves\nfrom unlimited risk? Spreading. And how\ndo we create a trade that’s neutral in direction\nand risk? Double spreading!"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-61-explore-your-options-by-tom-gentile-21.gif"",""height"":""593"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-61-explore-your-options-by-tom-gentile-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-61-explore-your-options-by-tom-gentile-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov316bofo,d,"{""minimum-quantity"":""1"",""path"":""ch4a209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:4 (62): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new book offerings."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-62-books-for-traders-by-technical-analysis-inc-21.gif"",""height"":""593"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-62-books-for-traders-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-62-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov316seto,d,"{""minimum-quantity"":""1"",""path"":""ch4a209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:4 (65-66): The Secret To Success? Small Losses by Danish Kapur"",""caption-linebreaks"":""The Secret To Success? Small Losses by Danish Kapur
Taking small steps, being patient, and following a\nwell-thought-out plan makes all the difference.
You’ve read enough books on technical analysis. You’ve attended seminars and\ncourses. Now you’re ready to tackle the markets. Most people think that if they\ncan analyze the markets correctly, they can make a profit easily. After spending years learning different forms of\nanalysis and modeling techniques,\nand spending enough on expensive\nsoftware or trading systems that you\nthink can do some magic, people assume\nthey can make money easily,\nbut that is not the reality.
You can come up with the best\nanalysis of the market and economy\nand still lose money. It happens to a\nlot of traders. Although I think analyzing\nthe markets is important, it\nhas little to do with successful trading.\nSuccessful trading has more to\ndo with getting your money out of\nthe market in a disciplined way.
The small loss
The biggest hindrance to successful\ntrading is the refusal to accept\nyour mistake when it can be done\nat a small loss. It is human nature,\nand unfortunately, one that comes\nat a cost. It can lead to massive\ndestruction of all your wealth and\nall your confidence.
People assume that taking an\nearly small loss will somehow\nlower their self-esteem. What eventually\nhappens is that the small loss\nturns into a greater one and ends\nup putting you in a situation where\nyou are trapped. Sometimes you\njust can’t find a way out. It’s not\na good situation to be in, which is\nwhy it is so important to predefine\nyour risk in every trade you take.\nNot doing so is a sure way to make\nyour relationship with the market\na very brief one.
Often, your views tend to be\none-sided and you assume there is\nno room for error. When the stock\nstarts moving in the opposite direction,\nyou start thinking that it is a\ntemporary pullback and the stock\nwill resume its previous trend."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-65-66-the-secret-to-success-small-losses-by-danish-kapur-21.gif"",""height"":""593"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-65-66-the-secret-to-success-small-losses-by-danish-kapur-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-65-66-the-secret-to-success-small-losses-by-danish-kapur-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov318leto2,d,"{""minimum-quantity"":""1"",""path"":""ch4a209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:4 (8-9): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
KONDRATIEFF WAVE
Editor,
Since Koos Van der Merwe’s last assessment\nof the S&P and Dow Jones\nIndustrial Average was correct (“The\nKondratieff Wave And The Presidential\nCycle,” July 2012 S&C), we are wondering\nwhat his view is on where we are now\nin the K-wave. Was the 2009 low just\nearly for the 2012 wave? Are the 2016\nand 2019 highs our next targets, or has\nsomething changed in the wave count?\nCan we expect something different? We\nhaven’t changed any of our stock positions\nand are profitable in all.
Can Merwe tell us his ideas on the\nUS economy, the stock market, and his\noverall picture for 2014?
Doug
Author Koos van der Merwe replies:\nSee my article in this issue (“Reelections\nAnd The Presidential Cycle” beginning\non page 14), in which I revisit the Kondratieff\nwave and review the Presidential\nelection cycle and update my market\noutlook.
I would say that this year will be a\nslow rise, as Congress keeps fighting\nPresident Obama. Things will improve\ngoing into 2014, and the market will be\nhigher, but it won’t be an easy ride. I still\nsee banks as being the best performer.\nHowever, by 2016, the market will be\nmuch higher, so have patience, and look\ncarefully at what you invest in."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-8-9-letters-to-s-c-by-technical-analysis-inc-21.gif"",""height"":""593"",""width"":""448""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-8-9-letters-to-s-c-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-4-8-9-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov311tchp1,d,"{""minimum-quantity"":""1"",""path"":""faarfr205"",""ysw-page-title"":""Stocks & Commodities V. 31:5 (10-13): ‘Trendy’ Chart Patterns by Thomas Bulkowski"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-10-13-trendy-chart-patterns-by-thomas-bulkowski-28.gif"",""height"":""297"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-10-13-trendy-chart-patterns-by-thomas-bulkowski-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-10-13-trendy-chart-patterns-by-thomas-bulkowski-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov311tchp,d,"{""minimum-quantity"":""1"",""path"":""ch5m209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:5 (10-13): ‘Trendy’ Chart Patterns by Thomas Bulkowski"",""caption-linebreaks"":""‘Trendy’ Chart Patterns by Thomas Bulkowski
May The Best Pattern Win
Which chart patterns precede a strong breakout move?\nFind out here.
I never associate chart patterns with being trendy, but when\nI received an email asking me which chart patterns are\ntrendiest, I had to think twice.
What is a trendy chart pattern?
A chart pattern is trendy if price forms the first minor high\nor low well after a breakout. In other words, if price changes from moving sideways (consolidating in the chart pattern)\nto moving up or down (after the breakout), then a new trend\nhas begun. The chart pattern with the highest percentage gain\n(upward breakout) or loss (downward breakout) to the first\nminor high or low, respectively, after the breakout, becomes\nthe trendiest; it leads to the strongest trends.
To determine which pattern is the trendiest, you need only\nmeasure from the breakout of a chart pattern to the first minor\nhigh or low, sort the results, and you will have a list of the\ntrendiest chart patterns. Those chart patterns showing the\nhighest percentage runs to the first minor high or low are the\ntrendiest.
For downward breakouts, I used the same database\nand a similar technique to find the first minor low\nafter the breakout from a chart pattern. The table\nin Figure 4 shows the results for the top 10 chart\npatterns with downward breakouts. The head &\nshoulders top, another popular chart pattern, did\nnot make the top 10. It ranked 22 out of 35.
Notice that diamond bottoms and big W patterns\ndo not have large sample counts. Big Ws are double\nbottoms with tall sides. Instead of price continuing\nto rise, it reverses and drops below the bottom of\nthe pattern, staging a downward breakout. When\nthat happened in the 92 patterns tested, there was a\nstrong down move.
If you test using three and 10 days, it will change\nthe order of the chart patterns to some degree (for\nupward breakouts, for example, the top three remain\nthe same; for downward breakouts, only diamond\nbottoms remain first). Separating the chart patterns\ninto bull and bear markets, using other definitions\nfor minor highs or lows, or adding more samples\nwill likely change the order, too."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-10-13-trendy-chart-patterns-by-thomas-bulkowski-24.gif"",""height"":""297"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-10-13-trendy-chart-patterns-by-thomas-bulkowski-31.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-10-13-trendy-chart-patterns-by-thomas-bulkowski-32.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov311inru,d,"{""minimum-quantity"":""1"",""path"":""ch5m209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:5 (14-20): Indicator Rules For Swing Trading Strategies, Part 1 by Sylvain Vervoort"",""caption-linebreaks"":""Indicator Rules For Swing Trading Strategies, Part 1 by Sylvain Vervoort
One Step At A Time
In today’s volatile markets, making money consistently\nis a challenge. You need a good strategy with\nreliable trading rules. This seven-part series will\ndiscuss such a strategy and its trading rules. In this,\nthe first part, an overview is presented.
Too many people believe that if they could\njust get their hands on some secret trading\nrules, making money in the stock market will\nbe easy. You can’t blame them: They want to be like\nthat trader who effortlessly made more than 100 pips a\nday using a fully automated forex trading system. On\nthe other extreme, there are people who say that if you\nwant to be a successful trader, you have to spend long\nhours studying and analyzing the markets.
Which side should\nyou be on?
If you want to be successful\nin anything, you need to\nwork hard. But your time\nand effort should be well\nspent. For example, if you\nspend your time studying\nfundamentals, it will likely\nmake you money in the long\nterm, in a sustained up or\ndown market. But in volatile\nmarkets, you may not make\nmoney consistently. This\nmay tempt you to turn to an\nautomated trading system,\nbut think about this: Would\nyou sell a system that consistently\ngenerated, say, $5,000\nprofit each month?
Before you can make any money, you need a trading\nstrategy with reliable trading rules that has been\nshown to make money in backward and forward testing\nusing historical data. To do that, you need to learn\nthe basics — that is, technical analysis, money & risk\nmanagement, and trading knowledge — and you need\nto gain experience.
I am going to put you on the right track with my\nindicator rules for a swing trading strategy (IRSTS). It\nwill take a series of articles to demonstrate and explain\nthe strategy. I will also introduce some new indicators\nthat I use in my trading. Let’s start with an overview\nof the IRSTS strategy."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-14-20-indicator-rules-for-swing-trading-strategies-part-1-by-sylvain-vervoort-25.gif"",""height"":""297"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-14-20-indicator-rules-for-swing-trading-strategies-part-1-by-sylvain-vervoort-31.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-14-20-indicator-rules-for-swing-trading-strategies-part-1-by-sylvain-vervoort-32.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov311inru1,d,"{""minimum-quantity"":""1"",""path"":""faarfr205"",""ysw-page-title"":""Stocks & Commodities V. 31:5 (14-20): Indicator Rules For Swing Trading Strategies, Part 1 by Sylvain Vervoort"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-14-20-indicator-rules-for-swing-trading-strategies-part-1-by-sylvain-vervoort-28.gif"",""height"":""297"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-14-20-indicator-rules-for-swing-trading-strategies-part-1-by-sylvain-vervoort-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-14-20-indicator-rules-for-swing-trading-strategies-part-1-by-sylvain-vervoort-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov312sein,d,"{""minimum-quantity"":""1"",""path"":""ch5m209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:5 (22-24): Sell In May And Go Away by Mark Vakkur"",""caption-linebreaks"":""Sell In May And Go Away by Mark Vakkur
Still As True As Ever
The S&P 500 continues to make most of its gains between\nNovember and April and underperform between May and\nOctober. Here is an updated look at this phenomenon and\nhow you can put it to use.
From November 1979 until November 2012, the S&P 500\nclimbed from 101.82 to 1,412.16, a gain of 1,287.23%\n(Figure 1). In net points, the index gained 1,380.8\nduring the November–April period but lost 70.4 during the\nMay– October period of this 22-year span.
Looking at the numbers
Using nominal point differences can be misleading: The most\nrecent years are given more weight since the number of points gained or lost is greater for every percentage point change\nin the S&P 500. Yet, even by using percentage differences,\nthere are dramatic differences between the November–April\nand May–October spans (Figure 2).
The average November–April span saw a 7.3% change\nin the S&P 500 (15.1% annualized) versus 1.9% (3.9% annualized)\nfrom May–October; the November –April period\noutperformed the May–October period by 5.4% on average.\nIf you invested $10,000 on November 1, 1979 and moved to\ncash on April 30 each year, it would have grown to $89,361,\nignoring dividends, money earned in cash, commissions, and\nslippage. By contrast, the same $10,000 invested on May 1,\n1980 and moved to cash every Halloween would have grown\nto $15,520. The November–April investor would have gained\n475.8% more."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-22-24-sell-in-may-and-go-away-by-mark-vakkur-21.gif"",""height"":""297"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-22-24-sell-in-may-and-go-away-by-mark-vakkur-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-22-24-sell-in-may-and-go-away-by-mark-vakkur-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov312hesh1,d,"{""minimum-quantity"":""1"",""path"":""ch5m209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:5 (26-34): Head & Shoulders, Algorithmically, Part 2 by Giorgos E. Siligardos, PhD"",""caption-linebreaks"":""Head & Shoulders, Algorithmically, Part 2 by Giorgos E. Siligardos, PhD
Crossing The (Neck)line
In part 1, we looked at how to find important milestone points\nin a head & shoulders formation. In this, the second article\nof a two-part series, we present an algorithm that will let the\ncomputer find the formations for us.
In Figure 1, you can see what I call milestone points for\na completed closing-price head & shoulders (H&S)\nformation — that is, an H&S formation generated by\nthe closing price where it has penetrated the neckline. However,\nthese milestones are defined regardless of whether there is an\nH&S pattern present. In this article, I will elaborate on the necessary conditions that these points must meet in order to\noutline an H&S. Being aware of these conditions will help\nyou create an identification algorithm.
Metrics and notations
Before delving into the conditions, I will define some of the\nimportant points and metrics (see Figure 2):
* V is the highest closing price during the time span\nbetween L0 and H1
* W is the highest closing price during the time span\nbetween L3 and the last closing price
* The time distance (number of bars) between H1\nand H will be called Dist1 and the time distance\nbetween H and H2 will be called Dist2
* The time distance between L0 and L1 will be called\nDist1#, the time distance between L1 and L2 will\nbe called Dist#, and the time distance between L2\nand L3 will be called Dist2#
* t1 will be the time distance between H1 and L1 and\nt2 will be the time distance between L2 and H2.
The conditions
The first condition has to do with the vertical distance\nrelationship between H1 and H as well as between H2\nand H. We want H1 to be sufficiently higher than\nL1, but not too close to H. In addition, H2 must\nbe sufficiently higher than L2 but again not too\nclose to H (see Figure 2)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-26-34-head-shoulders-algorithmically-part-2-by-giorgos-e-siligardos-phd-21.gif"",""height"":""306"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-26-34-head-shoulders-algorithmically-part-2-by-giorgos-e-siligardos-phd-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-26-34-head-shoulders-algorithmically-part-2-by-giorgos-e-siligardos-phd-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov313fufo,d,"{""minimum-quantity"":""1"",""path"":""ch5m209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:5 (36): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
MARKET SPECULATION
What are the option greeks and can they\nbe applied to commodity options?
Collectively, the option greeks are\na group of equations used to measure\nand identify the sensitivity of an option\nprice to outside forces such as price\nchanges in the underlying asset, the\npassage of time, or changes in market\nvolatility. The greeks can be useful to\noption traders in many ways, but are\nmost often used as a proxy for trade\nprobability.
The greeks are similar to other market\ntools in that they tell traders what has\nalready happened, not what will happen\nin the future. This is the case despite\nsome option probability software that\nattempts to project trade probabilities.\nFor instance, the greek calculations take\ninto account today’s market environment\nbut could adjust dramatically if\nvolatility or market sentiment changes\nsignificantly tomorrow. In other words,\nthe greeks and any resulting probability\ncalculations are dynamic, not static. Accordingly,\ntraders should refrain from\nallowing favorable greeks to lure them\ninto complacency.
In the case of commodity options,\nI argue that the greeks might be less\nreliable than is the case for options on\nstocks. This is partly due to generally\nless liquid market conditions (although\nmany commodity markets are highly\nliquid) and leveraged underlying assets.
Here is a list of what I believe to be\nthe most useful greeks along with a\nshort description of the role they play\nin market speculation. I’ve listed them\nin the order of what I believe to be their\nrelevancy."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-36-futures-for-you-by-carley-garner-21.gif"",""height"":""325"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-36-futures-for-you-by-carley-garner-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-36-futures-for-you-by-carley-garner-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov313inca,d,"{""minimum-quantity"":""1"",""path"":""ch5m209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:5 (38-45): Interview: Catch The Swings With Arthur Hill by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Catch The Swings With Arthur Hill by Jayanthi Gopalakrishnan
Plan Your Trade, Trade Your Plan
Arthur Hill, CMT, is the senior technical analyst for StockCharts.com\nand an independent trader. He was a member of the Society of Technical\nAnalysts (London) and passed its diploma exam with distinction\nin 1998. He went on to teach the diploma modules on momentum\nand candlesticks. In 1997, Hill launched TDTrader.com, a website\nspecializing in technical analysis and swing trading. It was acquired\nby StockCharts.com in 1999, where today Hill provides daily market\nanalysis, produces companion videos, and develops the ChartSchool,\nwith more than 100 in-depth articles. His approach to market analysis\nstarts with broad market analysis, defines sector rotations, identifies\nindustry groups on the move, and ends with stock selection for swing\ntrades. His recent book, Define The Trend And Trade The Trend,\nshows how to determine trend direction and find low-risk entry points\nwithin that trend. Hill has contributed articles to Technical Analysis\nof Stocks & Commodities and to our online publications, Traders.\ncom Advantage and Working Money. Hill is a member of the Market\nTechnicians Association and holds the Chartered Market Technician\n(CMT) designation. He can be followed on Twitter (@ArthurHill) or\nreached through StockCharts.com.
Stocks & Commodities Editor Jayanthi Gopalakrishnan spoke\nwith Hill on March 11, 2013, via telephone.
Arthur, tell us about yourself and\nhow you got interested in technical\nanalysis.
After graduating from high\nschool in 1980 in Houston, I got a summer\njob at an engineering firm. One of\nthe engineers working there was trading\nusing technical analysis. He subscribed\nto the Granville Market Letter. I started\nhanging out with him and started learning\nabout the markets. I bought my first\nstock, an odd lot of Cities Service, while\nI was working at the engineering firm.\nDuring our lunch hour, we used to go to\nthe brokerage house, Kelly Associates,\nand that is when I got hooked.
I left the engineering firm when I got a\njob in the financial industry. I worked at\nOppenheimer & Co. as a cold-caller for\nthe brokers. That put me in the middle of\nthe action. I had access to a Quotron machine,\nI went to the morning conference\ncalls, and I studied my daily graphs.
That was in the early 1980s and I was\nreading everything I could get my hands\non. I started following Richard Russell,\nStan Weinstein, and Marty Zweig. I\nstarted trading actively and unfortunately\ndiscovered options at that time."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-38-45-interview-catch-the-swings-with-arthur-hill-by-jayanthi-gopalakrishnan-21.gif"",""height"":""292"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-38-45-interview-catch-the-swings-with-arthur-hill-by-jayanthi-gopalakrishnan-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-38-45-interview-catch-the-swings-with-arthur-hill-by-jayanthi-gopalakrishnan-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314niby,d,"{""minimum-quantity"":""1"",""path"":""ch5m209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:5 (46-49): NinjaTrader by Technical Analysis, Inc."",""caption-linebreaks"":""NinjaTrader by Technical Analysis, Inc.
NINJATRADER, LLC
1236 Clarkson Street, Denver, CO 80218
Email: support@ninjatrader.com
Internet: www.ninjatrader.com
Fax: 801 806-2591
Price: $995 for lifetime license;\n$50/month lease; free version with\nstandard features
Product: Trading and analysis software
System requirements: Windows XP\n(SP3 required)/2003/Vista/7 or 8; minimum\nscreen resolution of 1024x768;\nminimum P4 processor or higher; 2GB\nRAM; Microsoft .NET Framework 3.5\n(preinstalled on most PCs or can be\ndownloaded)
A full-featured trading platform\nthat’s free: That’s the reason behind\nthe success of NinjaTrader.\nNinjaTrader (NT) was started in 2003\nwith a handful of people and now has\n40 employees. Since the program is\nfree, it attracts a lot of users, and as\na consequence, also attracts a large\nnumber of third-party product vendors.\nHow does NT make its money? It does\nso predominantly by selling the lifetime\nlicense version and monthly subscription\nlicenses. The difference between the\nlifetime version and the free one is that\nthe lifetime version lets you trade directly\nwith your broker using a NinjaTrader\ninterface. If you get a free version of the\nprogram from your broker, it is likely to\nbe missing the ATM (Advanced Trade\nManagement) feature; thus, not all free\nversions of it are the same.
What type of trader would be willing\nto pay $995 to have a brokerage interface\nbuilt into the software? He or she will\nlikely be a daytrader. Otherwise, a trader\nwho holds positions for two or more\ndays can easily place orders through a\nseparate brokerage interface."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-46-49-ninjatrader-by-technical-analysis-inc-24.gif"",""height"":""297"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-46-49-ninjatrader-by-technical-analysis-inc-28.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-46-49-ninjatrader-by-technical-analysis-inc-29.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314niby1,d,"{""minimum-quantity"":""1"",""path"":""faarfr205"",""ysw-page-title"":""Stocks & Commodities V. 31:5 (46-49): NinjaTrader by Technical Analysis, Inc."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-46-49-ninjatrader-by-technical-analysis-inc-30.gif"",""height"":""297"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-46-49-ninjatrader-by-technical-analysis-inc-31.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-46-49-ninjatrader-by-technical-analysis-inc-32.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov315trti,d,"{""minimum-quantity"":""1"",""path"":""ch5m209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:5 (50-56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus\nis Giorgos Siligardos’ article in this issue,\n“Head & Shoulders, Algorithmically (Part 2).”\nHere we present the May 2013 Traders’ Tips\ncode with possible implementations in various\nsoftware.
Code for both MetaStock and AmiBroker\nare already provided in Siligardos’ article.\nSubscribers will find that code at the Subscriber Area of\nour website, www.Traders.com. (Click on “Article Code”\nfrom our homepage.) Presented here is an overview of\npossible implementations for other software.
Traders’ Tips code is provided to help the reader implement\na selected technique from an article in this issue.\nThe entries are contributed by various software developers\nor programmers for software that is capable of customization.
Readers will find the May 2013 Traders’ Tips code at\nour website, Traders.com, in the Traders’ Tips area. Here,\nyou can read some discussion of the technique’s implementation\nby the Traders’ Tips contributors as well as\nsome example charts.
To locate Traders’ Tips at our website, click on the link\nfrom our home page, or use our site’s search engine."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-50-56-traders-tips-by-technical-analysis-inc-21.gif"",""height"":""297"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-50-56-traders-tips-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-50-56-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov315qaby1,d,"{""minimum-quantity"":""1"",""path"":""ch5m209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:5 (57): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
MARGIN CALLS WITH PORTFOLIO MARGIN
I have been trading for many years,\nbut I have some concerns regarding my\nbroker. Although I was promised something\ncalled “portfolio margin,” which\nwas supposed to have a leverage of six\ntimes my capital, I have received margin\ncalls when using a much lower amount.\nShould I pursue other alternatives, such\nas trading with a firm like yours? How\ndoes your firm, and others like yours,\nmonitor the risks taken by its traders?\nHow do you ensure that traders don’t\nblow out a lot of money? I have heard\nhorror stories from some traders. Am I\nmissing something here? I hope you can\nclarify this for me.
—Natofan
You have good reasons to be concerned,\nand your questions address some\nthings that are often misunderstood.
Let’s talk about portfolio margin first.\nRetail brokerage firms\nhave been offering 6:1\nleverage to their larger\naccounts — accounts\nof around $100,000.\nThis can work, but\nunfortunately it often\ndoesn’t. The brokerages\ncan decide on their own\nthat you’re too risky for\nthem, and they can invoke their own risk\ntolerance to give you more restrictions.\nThis has caused a problem for many\ntraders I know, and it’s something you\nneed to be aware of.
Things are different in our world of\nprofessional trading. Our traders are\nusing our money to trade with, entering\ntrades that may be 50 times their\nequity, such as with the opening-only\nplay and correlated pairs. Our traders\nmay, for example, enter a large number\nof orders premarket, in anticipation of\ngetting filled on only a few extreme cases\nwhere they can make quick profits. This generally cannot be done with a retail\naccount, with or without a portfolio\nmargin feature."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-57-q-a-by-don-bright-21.gif"",""height"":""325"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-57-q-a-by-don-bright-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-57-q-a-by-don-bright-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov316exyo1,d,"{""minimum-quantity"":""1"",""path"":""ch5m209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:5 (61): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
PUT OR CALL: WHICH HAS THE\nMOST LIQUIDITY OF ALL?
Recently, a question came out of left\nfield: What are the best options to buy\nor sell for a daytrader? In the world of\noption trading, there are the few who\nwish to daytrade options. Trading options\nis a skill, but daytrading them\nrequires a different skill set. My first\ninclination was to answer “Don’t do it,”\nbut in this industry, “don’t” and “can’t”\nare not in the trading vocabulary.
There are roughly 4,000 indexes,\nexchange traded funds (ETFs), and\nstocks that are optionable. Not all options\nare created equal. To answer the\nquestion, the first thing I did was head\nover to the CBOE (www.cboe.com) to\nlook for an answer. There are options\non familiar products such as index options\nand equity options, but that’s only\nthe beginning. There are options on\nexchange traded products, and credit\nswaps, binary products, and even options\non volatility.\nChances are that\nif you’re an option\ntrader and you\ndon’t know what it\nis, you shouldn’t be\ntrading it, let alone\ndaytrading it.
Then there are index and equity\noptions. I didn’t have to look far for\nindex options. The information at\nthe CBOE showed me that of the top\n10 index options traded in 2007, the\nStandard & Poor’s 500 (SPX) traded\nmore volume than the others combined.\nWhen I looked at the Standard &\nPoor’s SPDR ETF, it trades very high\nvolume as well."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-61-explore-your-options-by-tom-gentile-21.gif"",""height"":""327"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-61-explore-your-options-by-tom-gentile-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-61-explore-your-options-by-tom-gentile-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov316bofo1,d,"{""minimum-quantity"":""1"",""path"":""ch5m209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:5 (62): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
A Trader’s First\nBook On Commodities,\n2nd\nEd. (271 pages,\n$39.99 hardcover, 2012,\nISBN 978-0-13-324783-1)\nby Carley Garner,\npublished\nby FT Press, an\nimprint of Pearson.
Commodities markets\nare unique, and they can be treacherous.\nYou need realistic, up-to-the-minute knowledge\nof the markets and their risks. This\nguide offers specific and current guidance\non accessing commodity markets cost-effectively,\navoiding common mistakes, and\nimproving your odds of success. It looks\nat today’s realities, including the failures of\nMF Global and PFG Best. Readers learn\nto calculate profit, loss, and risk in commodities\nand choose the best brokerage\nfirm, data sources, and market access. It\nhelps you understand what you’re buying\nand selling and walks you through the trading\nprocess.
Trading Options In Turbulent Markets,\n2nd Ed.\n(277 pages,\n$75 hardcover,\n2013, ISBN 978-1-118-34354-8)\nby Larry Shover,\npublished\nby Bloomberg\nPress, an imprint\nof Wiley.
As we continue\nto emerge from\nthe rubble of the\n2008 financial disaster, traders and investors\nstill find themselves struggling to deal\nwith markets and an economy besieged\nby uncertainty. These conditions have prevailed\nlonger than anyone expected. Part 1\nexamines how volatility in option trading relates\nto today’s marketplace and shows you\nhow to manage risk and take advantage of market volatility when investing in derivatives.\nPart 2 digs into the tools for evaluating\noption trading decisions, the greeks:\ndelta, vega, theta, and gamma. Part 3 outlines\neffective strategies for trading options\ncontracts in uncertain times. It also looks at\nspecific option trading strategies to offset\nrisk and reach for profit."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-62-books-for-traders-by-technical-analysis-inc-21.gif"",""height"":""333"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-62-books-for-traders-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-62-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov316keyo,d,"{""minimum-quantity"":""1"",""path"":""ch5m209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:5 (65-66): Keeping Your Balance by Moshé Prince"",""caption-linebreaks"":""Keeping Your Balance by Moshé Prince
Mental balance is crucial to trading and investing successfully,\nyet so challenging to master. Here’s how you can master it.
Predicting price direction in the financial markets is risky. If you follow someone\nelse’s advice and jump into a trade too early or too late, it can end up being a bad\ninvestment. To avoid getting into such a situation, many traders develop trading\nsystems before they start trading. If you use a method or system for your trading, you\nmust know it inside and out. Knowing your system can make a big difference in your\ntrading results. You need to test it, test it, and test it some more over at least a two-year period. Traders who go through this\nprocess are putting their knowledge\nto use, always striving to learn\nmore, and relying on their skills.\nBy doing so, they are bringing\nthemselves into balance.
Boost your knowledge
There are many ways to increase\nyour knowledge level, such as\nattending webinars, investment\ncourses, and seminars; reading\nbooks and printed periodicals like\nthis one; and consulting blogs.\nSince these can provide you with\naccess to a wealth of information\nand boost your knowledge, it’s\ngood to set aside some time every\nday to increase your trading knowledge.\nThis can bring about balance\nin your life as well.
As I increased my knowledge\nover the years, I found technical\nanalysis to be more valuable than\nfundamental analysis. We are\nall different — some may prefer\nfundamental analysis, while others\nmay prefer a combination of\ntechnical and fundamental analysis,\nor any other type of analysis.\nRegardless of what approach you\nprefer, understand that there is no\nperfect method."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-65-66-keeping-your-balance-by-mosh-prince-21.gif"",""height"":""297"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-65-66-keeping-your-balance-by-mosh-prince-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-65-66-keeping-your-balance-by-mosh-prince-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov318leto3,d,"{""minimum-quantity"":""1"",""path"":""ch5m209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:5 (8-9): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
Head & Shoulders,\nAlgorithmically
Editor,
Though it is my belief\nthat all who go to the\neffort to advance or\neven attempt to advance\ntheir knowledge should\nbe applauded, I must\nnonetheless deplore author Giorgos\nSiligardos’ inappropriate use of the\nterm “head & shoulders” in his April\n2013 S&C article (“Head & Shoulders,\nAlgorithmically, Part 1”).
That term, adopted a number of years\nago by his predecessors, was intended to\napply to a specific chart formation identified\naccording to certain rules. Those\nrules were set down in detail by early\nwriters in the field of technical analysis,\nsuch as the writings of Robert Edwards\n& John Magee most famously, dating,\nif memory serves, from the 1940s. The\ncharts displayed in Siligardos’ article do\nnot fit those rules, at least as I recall them\n(unfortunately, I do not have a copy of\nthe book). I must apologize in advance\nif your own investigation shows my\nmemory to be faulty in some respect.
I do recall, however, that there was\ngeneral agreement among technicians of\nthe 1950s–60s that the neckline must be\nlevel or downsloping to the right, and that\nvolume declination across the three peaks\nwas also required. Volume is nowhere\nmentioned in his piece, and the necklines\nof all his figures are upsloping.
It should be further noted that there\nwere good and valid reasons for those\nrequirements, which reasons I presume\ndo not require specification here (though\nI do not resist discussion if Siligardos\nfeels it appropriate)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-8-9-letters-to-s-c-by-technical-analysis-inc-21.gif"",""height"":""327"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-8-9-letters-to-s-c-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-5-8-9-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov311411w,d,"{""minimum-quantity"":""1"",""path"":""ch6j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:6 (10–19, 41): The 1-2-3 Wave Count by Sylvain Vervoort"",""caption-linebreaks"":""The 1-2-3 Wave Count by Sylvain Vervoort
Riding The Zigzags
The 1-2-3 Wave Count
In this second part of a seven-article series, find out about the 1-2-3 wave count\nsystem that’s part of the indicator rules for a swing trading strategy (IRSTS).
I have found that about 99% of the time, any move in the financial markets is\ncomposed of three or more up or down waves. The 1-2-3 wave count is based\non this finding. To help count these waves, I will introduce a high-low zigzag\nindicator that is based on a fixed-percent price change between high and low prices, or that uses an average true\nrange (ATR) volatility factor. I have\nfound that a combination of both\nmethods makes a good indicator.
High-low zigzag
In Figure 1 you see an example of a\nzigzag between the lowest low and\nhighest high levels at the turning\npoints. The minimum change required\nin this example is the sum of a 3%\nprice change and a three-period ATR\nmultiplied by a factor of 1.5.
I call this zigzag indicator “SVEHLZZperc”\nand use NinjaTrader’s\nNinjaScript to implement it. I keep\nthe last lowest low value in parameter\nll and the last highest high value in\nparameter hh. I need to store the bar\nposition of this highest high or lowest\nlow value. To do this, I use the last\nhighest bar lhb and last lowest bar llb\nas the parameters."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-10-19-41-the-1-2-3-wave-count-by-sylvain-vervoort-24.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-10-19-41-the-1-2-3-wave-count-by-sylvain-vervoort-28.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-10-19-41-the-1-2-3-wave-count-by-sylvain-vervoort-29.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov311411w1,d,"{""minimum-quantity"":""1"",""path"":""faarfr205"",""ysw-page-title"":""Stocks & Commodities V. 31:6 (10–19, 41): The 1-2-3 Wave Count by Sylvain Vervoort"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-10-19-41-the-1-2-3-wave-count-by-sylvain-vervoort-30.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-10-19-41-the-1-2-3-wave-count-by-sylvain-vervoort-31.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-10-19-41-the-1-2-3-wave-count-by-sylvain-vervoort-32.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov312eamo,d,"{""minimum-quantity"":""1"",""path"":""ch6j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:6 (20–24): Early Morning Activity by Anthony Trongone"",""caption-linebreaks"":""Early Morning Activity by Anthony Trongone
Let The Trades Begin
Early Morning Activity
Can an analysis of early morning trading activity\noffer you a forecasting advantage in the opening\nhour of the equities market? Find out here.
When trading the spiders (SPDR S&P 500 ETF\nTrust) in the opening hour of the regular\ntrading session (9:30–10:30 am ET), many\ndaytraders overlook early morning trading\nvolume as a forecasting indicator. Yet\ntrading activity during the 7:30–8:30 am\nhour appears to have a strong impact on the\ndirection of equities.
The early hours
I looked into this further and studied data from\nNovember 8, 2010, when the spiders (SPY) were\nat $122.37 (7:30 am) and reached a closing price of\n$156.24 (10:30 am) at the conclusion of this study\non March 31, 2013. This spectacular run of $33.87\nwas impressive but the focus of my study was on\ntrading from 9:30–10:30 am. In this opening hour,\nthe summary performance of the spiders was $6.42\nin these 600 trading days. If, however, you use early\nmorning (7:30–8:30) trading volume as an indicator,\ncan this performance be improved?
Before entering a trading position during the early\nmorning hour, it’s a good policy to contrast its pricing\nvolatility with the daily trading range (highest–lowest\ndaily price) of $1.497. In comparison, its hourly average\nwas $0.786. Given this disparity, you can expect\nwide price swings in this opening hour to deliver\neither strong gains or inflict massive damage."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-20-24-early-morning-activity-by-anthony-trongone-21.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-20-24-early-morning-activity-by-anthony-trongone-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-20-24-early-morning-activity-by-anthony-trongone-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov312qaby1,d,"{""minimum-quantity"":""1"",""path"":""ch6j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:6 (25): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
THE USE OF PIVOTS
I am trying to learn more about technical\nanalysis and trading in general.\nI am getting better, I think, but would\nlike to have a decent explanation of\npivot points. I see them on various\nwebsites, including yours, but I don’t\nknow how to use them. Can you help?
—Techtrdr201
I’m glad you have decided to learn\nmore about technical analysis, and glad\nthat you’re reading the best magazine in\nthe field, Technical Analysis of Stocks\n& Commodities. Now, let’s discuss\npivot points.
I post two primary factors every day to\nmy Daily Trading Info page at Stocktrading.\ncom. One is the daily fair value (FV)\nnumbers. This number, provided by my\nfriend Hank Camp (www.programtrading.\ncom), helps us in two ways. In the\npremarket, we can calculate where the\nmarket will open — up or down — and\nby about how much. We take the closing\nprice of the S&P 500 (SPX on my monitor)\nand subtract the FV number to give\nus what is called parity. Parity is where\nthe market would open if everything\nwere flat from the previous day, which\nrarely happens. We then subtract the actual\nnumber of S&P futures contracts. If\nthe S&P futures indicate that the market\nis opening down eight SPX points, then,\nbased on this information, we know that\nwe will place opening-only orders on\nthe buy side at predetermined pricing.\nIt is similar if the market is opening\nup, except we sell short, counting on a\nretracement in both instances.
The pivot points that we use are the\nsame levels used by the exchange floor\ntraders and other professional futures\ntraders. These levels tend to act as caution\nsigns or small support & resistance levels. These levels are presented as\nprimary pivot support levels 1,2, and 3,\nand resistance levels 1, 2, and 3. These\nlevels are calculated using the previous\nday’s high, low, and close numbers.
Here is an example of how they can\nbe calculated:"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-25-q-a-by-don-bright-21.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-25-q-a-by-don-bright-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-25-q-a-by-don-bright-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov312miwe,d,"{""minimum-quantity"":""1"",""path"":""ch6j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:6 (26–30): Mining The Web by Neville Millar"",""caption-linebreaks"":""Mining The Web by Neville Millar
Yes, Data Matters
Mining The Web
Can we really use something that’s already available on\nour computers to get the data we want to help us in our\ntrading? Find out here.
\nIt may have its limitations, but Microsoft’s popular\nspreadsheet program Excel can be used to do everything\nfrom archiving historical financial data, to\ntracking technical indicators, to maintaining options\nvaluation/volatility models. Oftentimes, you use cell formula\nscripting to create Excel utilities involving mathematical\ncomputation. An alternative to cell formula scripting is the\nExcel Visual Basic for Applications (VBA) programming\nengine, which can be used to build software programs that do everything from processing advanced analytical tools or\ntrading system models to data mining the Internet.
It can be done
VBA programming code is easier to understand than advanced\ncell formula scripting, and Excel provides an easy-to-learn\nprogramming environment. The built-in macro recorder is an\nexcellent set of training wheels for the beginner, showing you\nhow various Excel tasks translate into programming code.\nLearning VBA at your own pace also gives you the opportunity\nto discover different ways to build market-timing indicators\nand fundamental analysis tools that are in line with your trading/\ninvestment decision-making temperament.
My objective in this article is to show you how Microsoft\nExcel VBA can help speed up the process of downloading data from financial websites. Manually transcribing data from\nweb pages can be tedious, and Excel workbook downloads\navailable on popular financial websites such as Yahoo.com\nand NASDAQ.com are formatted in the inverse order of\nthe standard database architecture. The most current record\nshould be at the bottom of the list instead of at the top. With\nthe help of VBA, Excel programs can combine multiple subroutines\n(referred to as “macros”) to reverse the date order\nand set the correct display format. After you have finalized\nyour historical data redesign, you can autodownload\ndata on\na daily basis from the Internet in a fraction of the time it takes\nto do manual updates."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-26-30-mining-the-web-by-neville-millar-21.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-26-30-mining-the-web-by-neville-millar-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-26-30-mining-the-web-by-neville-millar-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov313fufo1,d,"{""minimum-quantity"":""1"",""path"":""ch6j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:6 (31): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
ICEBERG ORDERS
In recent years, electronic trading\nplatforms have added the capability to\nplace iceberg orders. What are they, and\nare they helpful to the average retail\ntrader?
The reference to iceberg stems from\nthe idea that the tip of the iceberg is the\nonly visible part of a large mass of ice\nemerging from a body of water. Accordingly,\nthe term iceberg order is defined\nas the practice of breaking up an order to\nbuy or sell a large quantity of contracts\ninto multiple smaller orders through the\nuse of automated software. As the futures\nmarkets moved from open-outcry execution\nto electronic, this order type has\nbecome more popular. This is because\ntraders — retail or commercial — who\ntrade large quantities typically prefer to\nmask the true volume from view of others.\nIn other words, iceberg orders enable\nthe public to see only a small portion of\nthe actual order at a time.
Most futures trading platforms offer\nthe ability to view DOM (depth of\nmarket) data in which it is possible to\nobserve the working buy limit and sell\nlimit orders of other traders. These working\norders on display are often referred to\nas the “book.” Some traders monitor the\ntrading book for large-quantity orders.\nIn theory, large buy orders indicate the\nmarket may be inclined to move higher,\nor at least it suggests that large players\nbelieve it will. These inferences, whether\nright or wrong, can influence prices and\npossibly prevent the entity placing the\nlarge quantity to be filled at their desired\nprice. As a result, funds and institutions\nplacing sizable orders have incentive\nto mask the true quantity of their order.\nSimply put, those using iceberg orders do so under the belief that it will reduce the\nimpact the order has on price movement\nas it is absorbed into the market.
When an iceberg order is placed, the\ntrader determines the disclosed volume,\nwhich will be placed as a regular limit\norder, and the hidden volume, which is\nplaced once the first trade is filled. For\nmost retail traders, iceberg orders are\nnot necessary, but the ability to execute\nthem is available on most futures trading\nplatforms, which is why it’s a good idea to understand what they are. However,\nit’s typically not a good idea for average\nretail traders to use this order type. Those\ntrading small quantities will have little or\nno impact on prices, so there is no need\nto disguise the quantity. Furthermore,\nbecause the hidden quantity is placed\nafter the disclosed quantity, it will fall\nto the bottom of the priority list in the\nexchanges’ trade-matching system. In\nother words, traders unnecessarily using\niceberg orders are reducing their odds of\ngetting filled at their limit price."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-31-futures-for-you-by-carley-garner-21.gif"",""height"":""324"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-31-futures-for-you-by-carley-garner-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-31-futures-for-you-by-carley-garner-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov313evof,d,"{""minimum-quantity"":""1"",""path"":""ch6j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:6 (32–37): Evaluation Of Stocks, ETFs, And Funds by Chris Pratsch"",""caption-linebreaks"":""Evaluation Of Stocks, ETFs, And Funds by Chris Pratsch
Doing It My Way
Evaluation Of Stocks, ETFs, And Funds
In times of price volatility and diverging political and\nfinancial theories on world markets, how will independent\ntraders survive? Find out how one trader navigates the\nmarkets with a daily evaluation method.
Trading activities are controlled by organizations\nthat trade large volumes, profit from small gains,\nand use ultrafast computer trading systems. Do\nindependent retail traders have a place in such\nan environment?
In my article “Buy & Sell Signals Using Stochastics” published\nin October 2012, I discussed the advantage of buy and\nsell signals using variable-length stochastics. I am going to\nextend those ideas and incorporate them into a daily stockevaluation\nmethod that anybody with access to a computer\nand printer can use.
Almost every evening after the markets close, I evaluate\nthe entire database of my trading platform. There are about\n7,500 entries. To look at each of those charts for 10 seconds\nwould be time-consuming, which is why I use the sorting and\nscanning features available in my trading platform, TC2000\nv12. My evaluation, when properly planned, takes about five to 10 minutes and forms the basis of my trading decisions for\nthe next day. All formulas I have provided in this article are\nin the TC2000 format.
There are many ways to perform an exhaustive stock\nevaluation; I do not claim to know the best one, but what\nI do works for me. In this article I will share my approach,\nwhich I hope will help you set up an evaluation system that\nworks for you."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-32-37-evaluation-of-stocks-etfs-and-funds-by-chris-pratsch-21.gif"",""height"":""318"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-32-37-evaluation-of-stocks-etfs-and-funds-by-chris-pratsch-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-32-37-evaluation-of-stocks-etfs-and-funds-by-chris-pratsch-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov313neev,d,"{""minimum-quantity"":""1"",""path"":""ch6j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:6 (38–41): News Events, Earnings, And Economic Numbers by Avi Gilburt"",""caption-linebreaks"":""News Events, Earnings, And Economic Numbers by Avi Gilburt
Leaders And Followers
News Events, Earnings,\nAnd Economic Numbers
The stock market is considered a leading indicator of economic\ntrends. And yet traders rely on economic trends when\nit comes to placing trades. Which leads which? Here’s what\nyou should focus on.
It's a commonly accepted principle that the stock market\nis the best leading indicator of future economic\ntrends. Historically, every boom in the economy\nhas been preceded by a boom in the stock market, and every\ndownturn in the economy has been preceded by a downturn in the stock market. This highlights why economists have\nearned such a poor record at predicting the direction of the\nstock market, whereas an astute market observer can predict\nthe direction of the economy. There’s a reason economics is\nknown as the dismal science. A January 30, 2013 article on\nthe Wall Street Journal blog titled “Why Did Economists Get\nGDP Wrong?” states that none of the 24 economists surveyed\nforecast a negative GDP for the fourth quarter of 2012. This is\nnothing new. In September 1996, an article in Business Week\npointed out that “over the past 25 years, economic forecasters\nhave missed four of the five past recessions.” A quote commonly\nattributed to economist John Kenneth Galbraith but which may have first been said by economist Ezra Solomon\nsums it up well: “The only function of economic forecasting\nis to make astrology look respectable.”
Common scene
If the stock market is the best leading indicator of economic\ntrends, why do we see the same scenario play out time and\ntime again? Here’s an example.
Say it’s 8:25 am on a Thursday, and many market participants\nare glued to their televisions watching CNBC or Bloomberg\nwaiting, with bated breath, for the latest deluge of economic\nreports to be released. At 8:29 am, they have their finger on the\ntrigger, expecting to make a trade based on the news releases.\nAt 8:30 am, the numbers are released.The numbers aren’t\npositive and don’t point to economic growth. The investors’\ninitial reaction is that they will have to hit the sell button. But\nwait! The market is starting to move up, and it is even doing\nso explosively. How is that possible? The numbers were\nshowing economic contraction, but the market is going up!
Here’s another scenario. How many of us have watched\nthis scene play out when it comes to “Fed watching”? The\ncommon argument of Fed watchers is that when the Fed (US\nFederal Reserve) injects “money” into the system, the stock\nmarket goes up and the US dollar goes down. So why, at the\nannouncement of Operation Twist in late 2011, did the stock\nmarket sell off? Well, the newshounds will tell us that it was not\nas much money injected into the system as the market wanted.\nBut then why did the US dollar begin a strong rally right after\nthat announcement following a protracted multiyear decline?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-38-41-news-events-earnings-and-economic-numbers-by-avi-gilburt-21.gif"",""height"":""313"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-38-41-news-events-earnings-and-economic-numbers-by-avi-gilburt-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-38-41-news-events-earnings-and-economic-numbers-by-avi-gilburt-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314inpi,d,"{""minimum-quantity"":""1"",""path"":""ch6j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:6 (42–47): Interview: Pinning Trades With Huzefa Hamid by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Pinning Trades With Huzefa Hamid by Jayanthi Gopalakrishnan
Price Has Plenty To Say
Pinning Trades\nWith Huzefa Hamid
Huzefa Hamid began trading in 2000 with UK & US equities and equity options.\nHe gravitated toward technical trading, building his own trading rules\nand systems. In 2012, Huzefa was appointed senior analyst at DailyForex.com.\nHis published articles present technical trading strategies and market analysis.\nBesides trading, Huzefa enjoys mentoring traders of all levels, communicating\nhis ideas, and developing a shared learning environment. As TheForexRoom’s\noriginal founder and a dedicated administrator, he is interested in providing\nthe best possible user experience for members to help them develop successful\ntrading careers.
Stocks & Commodities Editor Jayanthi Gopalakrishnan spoke with Huzefa\nHamid on April 11, 2013, via Skype.
Huzefa, tell us a little bit about\nyourself and how you got interested\nin the financial markets.
I was 16 years old, in high school,\nliving in England, and I had just got my\nfirst Internet connection. It was an AOL\ndial-up connection. Every day when I\nwould connect to the Internet, one of the\nwelcome pages showed the stocks that\nmoved the most that day on the London\nStock Exchange. I would watch the prices\ngo up and down. It was just raw numbers\nat the time. There were companies such\nas Marks & Spencer on the British exchange,\nand I thought, “Wow, all I have\nto do is buy this in the morning and sell\nit in the evening and I would’ve made\na lot of money.” It was a simplistic and\nnaive view of how the markets operated,\nbut that is what initially got me interested\nin the markets.
After that I started to pay attention to the\nmarkets in the newspapers and started reading\nthe financial pages. We have a fabulous\nweekly journal called Investors Chronicle\nin the UK and I would purchase that. With\nonly my savings from the first few parttime\njobs I had while I was at school, I\nopened my first brokerage account. One\nof my first trades was Manchester United.\nMy trading started because of a personal\ninterest in the equity markets. Back then, in the ’90s, the markets were really\nbooming, and the brokers in the industry\nbecame deregulated.
Were you working for a trading\nfirm?
No, I wasn’t with a trading firm. I\nstudied business at university and I\nwas working for, initially, Deloitte,\nand then a few other financial services\nfirms. I was in pensions and actuarialrelated\nroles, and it didn’t have anything\nto do with the financial markets. It was\ncompletely divorced from trading. My\ntrading has always been a personal\ninterest."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-42-47-interview-pinning-trades-with-huzefa-hamid-by-jayanthi-gopalakrishnan-21.gif"",""height"":""292"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-42-47-interview-pinning-trades-with-huzefa-hamid-by-jayanthi-gopalakrishnan-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-42-47-interview-pinning-trades-with-huzefa-hamid-by-jayanthi-gopalakrishnan-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314prre2,d,"{""minimum-quantity"":""1"",""path"":""ch6j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:6 (48–51): Product Review: StockSpotter by Dennis Peterson"",""caption-linebreaks"":""Product Review: StockSpotter by Dennis Peterson
StockSpotter
STOCKSPOTTER.COM
6595 Buckley Drive, Cambria, CA 93428
Phone: 805 927-3065
Email: Ehlers@stockspotter.com,\nRicWay@stockspotter.com
Product: Daily alert service for stocks
Price: $45/month or $95/month\ndepending on signals provided
Requirements: Web browser
StockSpotter.com, which provides\ndaily alerts for equity buy trades\n(long positions), has a new and\nimproved look. It still offers the MESA\n(maximum entropy spectral analysis)\ntools developed by John Ehlers, which\nare available for free to perform your\nown analysis. In addition, some premium\ntools are offered. Business partner Ric\nWay has developed some serious data\nmining tools using DSP (digital signal\nprocessing) techniques to provide highprobability\nsignals for setups that come\nfrom the MESA tools. It is the signals that\nyou pay for, as well as some specialized\nscreeners. All of the MESA tools are free\nat the website. In developing the new\nDSP indicators, Way has attempted to\nanswer the following question: Given\na perfectly genuine setup using MESA\ntools, is it time to enter a trade?
There is more. StockSpotter includes\nthe SwamiCharts indicators, which are\nalso available on the ThinkOrSwim\nplatform by TD Ameritrade. When you\nview a price series on StockSpotter.\ncom, it will generally have two MESA\nindicators in separate subcharts below\nthe price chart. The two indicators have\nbeen preselected to analyze the price\nseries for three different trading styles:\nswing, momentum, and trend.
Thus, StockSpotter supports these\nthree types of traders with tools for each,\nand also has screeners that let you find\nthe best long position candidates after\nsearching more than 4,000 stocks and\nETFs. It performs searching/screening daily. StockSpotter provides signals for\ntrades expected to last from two days\nto as long as a couple of weeks. It also\nprovides as many as 15 different types of\nscreeners. Since StockSpotter generates\nentry and exit signals on its own, statistics\ncan easily be gathered to see how well\ndifferent classes of trades work."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-48-51-product-review-stockspotter-by-dennis-peterson-21.gif"",""height"":""301"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-48-51-product-review-stockspotter-by-dennis-peterson-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-48-51-product-review-stockspotter-by-dennis-peterson-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov315trti1,d,"{""minimum-quantity"":""1"",""path"":""ch6j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:6 (52–60): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is\nSylvain Vervoort’s article in this issue, “The\n1-2-3 Wave Count.” Here we present the\nJune 2013 Traders’ Tips code with possible\nimplementations in various software.
Code for NinjaTrader is already provided\nin Vervoort’s article. Subscribers will\nfind that code at the Subscriber Area of\nour website, www.Traders.com. (Click on\n“Article Code” from our homepage.) Presented here is an\noverview of possible implementations for other software.
Traders’ Tips code is provided to help the reader implement\na selected technique from an article in this issue.\nThe entries are contributed by various software developers\nor programmers for software that is capable of customization.
Readers will find the June 2013 Traders’ Tips code at\nour website, Traders.com, in the Traders’ Tips area. Here,\nyou can read some discussion of the technique’s implementation\nby the Traders’ Tips contributors as well as\nsome example charts.
To locate Traders’ Tips at our website, click on the link\nfrom our home page, or use our site’s search engine."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-52-60-traders-tips-by-technical-analysis-inc-21.gif"",""height"":""324"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-52-60-traders-tips-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-52-60-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov316quom,d,"{""minimum-quantity"":""1"",""path"":""ch6j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:6 (61): Quick-Scan: Omega Institute of Trading by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Quick-Scan: Omega Institute of Trading by Jayanthi Gopalakrishnan
Omega Institute Of Trading
111 Smithtown Bypass, Suite 101, Hauppauge, NY 11788
Phone: 855-OMEGA88
Email: support@omegatrades.com
Internet: www.omegatrades.com
Product: Trading education course for\nforex and option traders.
Price: $99/month for chat, $79/month\nfor weekly coaching (one-week free\ntrials are available for each); classes\nrange from $399–5,000
In trading, the two actions that are involved\nare buying and selling. It sounds\nso simple, which is why so many are\nattracted to trading. What they don’t\nrealize is that behind those two actions\nlies a complex network of variables. To\nunderstand that complex network you\nneed to have a structured education in\ntrading.
There is no shortage of trading courses\nto choose from, which makes it difficult\nto find the right course for your needs.\nSome courses have a narrow focus,\nwhereas others offer diverse choices.
Omega Institute of Trading (OIT)\noffers courses for forex and option traders.\nIts offerings are divided into four\nmain sections: option trading, technical\nanalysis, forex trading, and forex traders\nchat. All classes are web-based and they\nare all recorded so you can study at your\nown pace. If you are a registered student,\nyou have access to all the recordings of\nthe course you signed up for. An outline\nof the various courses are available on\nthe website."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-61-quick-scan-omega-institute-of-trading-by-jayanthi-gopalakrishnan-21.gif"",""height"":""324"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-61-quick-scan-omega-institute-of-trading-by-jayanthi-gopalakrishnan-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-61-quick-scan-omega-institute-of-trading-by-jayanthi-gopalakrishnan-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov316bofo2,d,"{""minimum-quantity"":""1"",""path"":""ch6j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:6 (62): Books for Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books for Traders by Technical Analysis, Inc.
Trading Beyond The\nMatrix: The Red Pill\nFor Traders And Investors\n(397 pages,\n$40 hardcover,\n2013, ISBN 978-1-\n1185-2566-1) by Van\nK. Tharp, PhD, published\nby John Wiley\n& Sons.
Author and\nprofessional trading\ncoach and consultant Van K. Tharp encourages\nreaders to improve their trading results and\nfinancial life by looking within themselves. He\ntakes the reader through the steps of self-transformation,\nincorporating what he calls “Tharp\nThink” — ideas drawn from his modeling work\nwith great traders. Readers will learn how they\ncan stop making mistakes and avoid methods\nthat don’t work, which only obstructs trading\nsuccess. Instead, they can adopt the beliefs\nand attitudes necessary to win. The book\ngoes beyond discussing trading systems to\nhelp readers develop a more effective trading\npsychology.
Money Makers: The Stock Market Secrets\nOf Britain’s Top Professional Investment\nManagers, Updated\nSecond Edition (356\npages, £11.00/£12.74\nebook, 2013, ISBN\n978-0857191434) by\nJonathan Davis, published\nby Harriman\nHouse.
Who are the\nprofessional investment\nmanagers responsible\nfor moving\nand making millions on the stock market? What\napproaches and strategies do they adopt? Britain\nhas more successful stock market investors\nthan any other country outside the US, but\ntheir activities have remained largely unknown\noutside the Square Mile. Davis profiles top professional\ninvestors in the UK and their investing\nstyles. His subjects include Jim Slater; investment\ntrust manager Michael Hart; stockpicker\nAnthony Bolton; and emerging market specialist\nMark Mobius, among others."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-62-books-for-traders-by-technical-analysis-inc-21.gif"",""height"":""330"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-62-books-for-traders-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-62-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov316exyo2,d,"{""minimum-quantity"":""1"",""path"":""ch6j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:6 (65): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
Maximizing your hedge with minis
Here’s a question I get asked at almost\nevery option event at which I teach: “Tom,\nhow do I hedge 10 shares of Google?”\nUntil recently, my answer used to be, “Get\n90 more shares, and then we can talk.”\nBut as of March 18, 2013, my answer\nhas changed.
On that date, the Chicago Board Options\nExchange (CBOE) launched a new\nproduct called mini-options aimed at the\nsmaller investor (in this case, an investor\nwho holds less than 100 shares of some\nhigher-priced stocks) who is looking to\nhedge odd-lot securities. What exactly is\na mini-option? First, to review, a regularsized\nequity option contract gives the\nbuyer the right, but not the obligation,\nto buy 100 shares of the underlying\nasset at a set price for a set period of\ntime. Regular-sized options have many\nstrike prices both above and below the\nstock price. Regular options could have\nas little as one week to expiration or as\nlong as years. A mini-option represents\none-tenth of the value of a regular-sized\noption. Thus, a mini-option contract is\ngood for 10 shares of stock and is in many\nways like standard options.
Now, before you go out and analyze\nyour odd-lot portfolio, you should know\nthat the launch by the CBOE is a pilot\nprogram and mini-options are offered\nonly on the following stocks:
AAPL, AMZN, GOOG, GLD, SPY
These mini-options, like the regular-sized\noptions, offer various strike prices and\nthe same expiration dates as their larger\ncounterparts. They are similar to their\nbigger brother, but smaller. I can think of\ntwo segments of the trading and investing\ncommunity that may look to mini-options\nas a viable product for their portfolio:"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-65-explore-your-options-by-tom-gentile-21.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-65-explore-your-options-by-tom-gentile-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-65-explore-your-options-by-tom-gentile-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov318leto4,d,"{""minimum-quantity"":""1"",""path"":""ch6j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:6 (8–9): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
HEAD & SHOULDERS REVISITED
Editor,
In the May 2013 Letters\nTo S&C, reader\nGeorge Jones brings up\nsome identification issues\nregarding Giorgos\nSiligardos’ April 2013\narticle (“Head & Shoulders, Algorithmically,\nPart 1”). The question that was\nconsidered was: Can we call a pattern a\nhead & shoulders if the neckline slopes\ndifferently or the volume trends differently\nthan is described in historical texts\n(such as the one mentioned in the letter,\nTechnical Analysis Of Stock Trends by\nRobert Edwards & John Magee)?
Jones makes an interesting point that\nit is important to consider the work of\nothers. Siligardos, in his reply, is also\ncorrect regarding neckline slope and\nvolume trend as they relate to trading,\nbut they can also be important to identification.
Knowing that today’s markets are\ndifferent from those when Edwards\n& Magee lived, I researched the\nperformance of the head & shoulders\npattern and tested the neckline slope,\nvolume trend, and other attributes,\nand published the results in my 2005\nbook, Encyclopedia Of Chart Patterns,\nSecond Edition. I used the historical\nrecord to build a foundation, and then let\nthe test results describe which variation\nworked best.
For the head & shoulders top, I found\n814 patterns in bull and bear markets.\nPatterns with downsloping necklines\nresulted in the worst performance\n(horizontal and upsloping were better,\nrespectively). Patterns with a rising volume\ntrend also outperformed those with a falling trend. The same results occurred\nin both bull and bear markets.
A glance at the Edwards & Magee\nbook shows numerous charts of head &\nshoulders tops with upsloping necklines,\nand they describe the volume pattern\nas being sometimes highest on the left\nshoulder, sometimes equal to the head,\nand sometimes the head has a higher\nvolume.
My conclusion is this: If it looks like\na duck and quacks like a duck — even\nif it has a weird neckline or leaves behind\na volume of droppings — it’s still\na duck.
Tom Bulkowski"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-8-9-letters-to-s-c-by-technical-analysis-inc-21.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-8-9-letters-to-s-c-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-6-8-9-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov311treq,d,"{""minimum-quantity"":""1"",""path"":""ch7j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:7 (10–17): Trading The Equity Curve by Oscar Cagigas"",""caption-linebreaks"":""Trading The Equity Curve by Oscar Cagigas
Getting Lean And Mean
Trading The Equity Curve
A trading system that brings in consistent profits is a\nkeeper. But if it stops giving you the results you want, is it\nbest to stop using it? We take a look.
When a trading system’s equity falls below its moving\naverage, most traders will deactivate their system to\nlimit its damage, or remove any component of a portfolio\nthat is not performing as well as the others. But there\nis another way to reduce risk, drawdown, and the possibility\nof portfolio ruin.
Creating a simulated environment
In this article, I will demonstrate several tests you can perform\nto trade the equity curve of your system. I ran several tests\nusing a simple trend-following trading system of my own that\nis Donchian-based. The system itself is not relevant for this\narticle, since you can use any trading system. The portfolio I chose to trade is a mix of randomly selected commodities as\nfollows (eSignal tickers are in parenthesis):
Australian dollar (AUD A0-FX)
Eurodollar (EUR A0-FX)
Gold (GC #F)
Lean hogs (HE #F)
Copper (HG #F)
Heating oil (HO #F)
Coffee (KC #F)
Palladium (PA #F)
Platinum (PT #F)
Brent crude (QM #F)
Sugar (SB #F)
Silver (SI#F)
Swiss franc (USDCHF A0-FX)
Treasury bonds (ZB #F)
Corn (ZC #F)
Soybeans (ZS #F)
10-year Treasury notes (ZN #F)
Dow (DJ #F)
When traded individually, some of these commodities generate\nlosses in the system. When one or several of these markets\nstarts losing traction or desynchronizing with the system’s\nlogic, I try to identify techniques that can be applied to reduce\nthe system’s risk."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-10-17-trading-the-equity-curve-by-oscar-cagigas-21.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-10-17-trading-the-equity-curve-by-oscar-cagigas-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-10-17-trading-the-equity-curve-by-oscar-cagigas-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov311prma,d,"{""minimum-quantity"":""1"",""path"":""ch7j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:7 (18–24): Predicting Market Turning Points by Martti Luoma, PhD, and Seppo Pynnönen, PhD"",""caption-linebreaks"":""Predicting Market Turning Points by Martti Luoma, PhD, and Seppo Pynnönen, PhD
Follow The Leaders
Predicting Market Turning Points
Here’s a unique look at how you can\nidentify market turning points.
Identifying the beginning of a trend or foreseeing\nwhen a trend is about to start is on every\ntrader’s wish list. Being able to do this would\nhelp optimize the timing of when to shift from\nstocks to cash and equivalents ahead of bearish turns,\nand from cash to stocks ahead of bullish turns.
Predicting market turning points will always be a\ntopic of interest among traders and investors. It will\nremain a challenge and will never be completely\nachievable. However, in order to gain some ability\nto anticipate potential turning points in a prevailing\nmarket trend, it is helpful to identify the processes\nthat affect these trend turnings.
Is volatility a good measure of risk?
Typically, at the end of a bullish regime, investors\nstart to reexamine their risk exposure in stocks. This\ndecreases the demand of the stock at current prices.\nThe supply increases, exceeds demand, and prices\nstart to fall –– and markets turn bearish.
This may lead you to think that monitoring market\nrisk measures is the key to anticipating turns in\ntrends. But risk is an elusive concept and difficult to\ncapture. It is usually measured by subjective means,\noften by volatility calculated from daily returns. But\nusing volatility as a risk measure can be a problem\nbecause it gauges variation in stock prices. Hence,\ncritical risks may not show up in the amount of volatility,\neven if the markets have priced in the risks.
Risk, theoretically, is associated with the probability\nof an unpleasant outcome (potential losses themselves\nare called risks). But probabilities are not visible\nin real life. They can’t be observed until they are\nrealized in concrete terms such as monetary losses.\nBecause volatility cannot fully capture the invisible\nprobabilities, simple risk monitoring by volatility is\nnot adequate to anticipate market turnings. It is better\nto turn to other tools."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-18-24-predicting-market-turning-points-by-martti-luoma-phd-and-seppo-pynn-nen-phd-21.gif"",""height"":""307"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-18-24-predicting-market-turning-points-by-martti-luoma-phd-and-seppo-pynn-nen-phd-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-18-24-predicting-market-turning-points-by-martti-luoma-phd-and-seppo-pynn-nen-phd-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov312fufo1,d,"{""minimum-quantity"":""1"",""path"":""ch7j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:7 (25): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
DEPTH OF MARKET
Should all traders be placing futures\norders through a DOM panel? What\nare the advantages and disadvantages\nof doing so?
The DOM (depth of market) panel is\na platform feature that enables traders to\nview the “trading book” of a particular\nfutures market while providing quick\nand efficient order-entry capabilities.\nThe trading book is purely the collective\nworking limit orders of other market\nparticipants at various prices surrounding\nthe current market price. Note that\nstop orders are not included, and market\norders are executed immediately so they\nnever become part of the “book.”
The DOM panel has become increasingly\npopular among daytraders because\nof the belief that it offers users an “edge”\nover other market participants due to\nthe visibility of others’ working limit\norders. Nonetheless, I argue that since\nnearly every trader has access to DOM\ntrading capabilities these days, there really\nisn’t an edge at all. Moreover, savvy\ntraders executing large trading size have\ndeveloped methods to disguise the true\nsize of their orders through the use of\n“iceberg orders” (discussed in my June\n2013 Futures For You column).
Perhaps the true advantage of using\na DOM panel is the ease and quickness\nat which traders can execute orders. Although\neach platform will have slightly\ndifferent logistics and designs, nearly\nall of them offer one-click order entry;\ndrag & drop order modification; a panic\nbutton that exits all positions and cancels\nany working orders; and strategy orders\nsuch as brackets or OCO (one cancels\nthe other) orders."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-25-futures-for-you-by-carley-garner-21.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-25-futures-for-you-by-carley-garner-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-25-futures-for-you-by-carley-garner-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov312stca,d,"{""minimum-quantity"":""1"",""path"":""ch7j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:7 (26–32): The Step Candle Pattern by Sylvain Vervoort"",""caption-linebreaks"":""The Step Candle Pattern by Sylvain Vervoort
Up And Down They Go
The Step Candle Pattern
In this third part of a seven-part series on indicator rules for\na swing trading strategy (IRSTS), we look at how to identify\na candlestick pattern that appears at turning points.
One of the rules for my swing trading strategy (IRSTS)\ninvolves recognizing a candlestick pattern at pivot points.\nThere are several reversal patterns that could occur at\nthese turning points, but I have observed one pattern that I\ncould not find in the literature on candlestick patterns. In this\narticle, I will introduce you to this pattern.
When looking for chart patterns, try not to get into the habit\nof looking for a specific pattern anywhere on a price chart\nor combining it with price averages in an up or downtrend. Instead, make sure the pattern is visible at a price turning point,\npreferably followed by some additional buy or sell signals.\nIn addition, the move that follows the pattern should be large\nenough to make a profit.
High-low zigzag
In part 2 of this article series last month, I introduced my 1-2-3\nwave count using a high-low zigzag pattern on the price chart.\nThis zigzag is a tool that identifies price turning points, and at\nthese points you can look for candlestick patterns. When you\nbring up a daily chart, look for prices to move at least 10%\nbetween highs and lows. Only then can you make worthwhile\nprofits. There should also be several such moves so you can\ncontinue to make higher profits. The chart in Figure 1 shows\nan example of a zigzag between the lowest low and highest high levels at pivot points triggered by a minimum low-tohigh\nand high-to-low price change of 10%.
The pattern
Let’s take a look at the pattern I have discovered. I will start with\nthe up reversal pattern, which I named the upstep pattern.
Upstep pattern
The upstep pattern is one I found appearing frequently at\nturning points. The pattern consists of a white (green) candle\nafter or at a pivot low point that opens inside or equal to the\nlow side of the previous candle body, and closes above the\nupper side of the previous body. The first candle of this upstep\npattern can be black (red) or white (green).
There are four possible ways this pattern can appear\n(Figure 2):"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-26-32-the-step-candle-pattern-by-sylvain-vervoort-20.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-26-32-the-step-candle-pattern-by-sylvain-vervoort-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-26-32-the-step-candle-pattern-by-sylvain-vervoort-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov313exyo,d,"{""minimum-quantity"":""1"",""path"":""ch7j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:7 (33): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
GETTING ENOUGH LIQUIDITY?
On top of the list of things that option\ntraders look at to measure liquidity is\nthe bid/ask spread on the option they\nare interested in buying or selling. The\nthinner the spread between these two\npoints, the more efficient the ability to\nbuy and sell in a shorter time period, and\nthe more likely you are to make a profit\nover time. I look at the bid/ask spread\nthe way a professional gambler looks at\nthe edge in a casino game. Casino games\nand option trading are not that far off;\nas traders, we know there are certainties\nwe can’t overcome. The spread between\nwhat we can buy something for and what\nwe can sell it for is one of them. Here’s\nhow to make sure you’re trading at the\nclosest price to the middle.
1) Look at the stock universe. There are\ntens of thousands of issues that trade each\nday, but only about 4,000 of the listed\nsecurities trade options. Which of these\nhave the most liquidity? You may think\nthe stocks that represent the S&P 500\nbasket have higher liquidity than those\nthat do not. Going deeper, perhaps the\nOEX 100 or the Nas daq 100 will give\nus even more traded issues, hence more\nliquidity. That’s a great place to start,\nbut on an individual stock basis, it’s not\ngoing to tell you which options have the\nthinnest spreads. My suggestion is to\nlook at the PPP.
What is the PPP? PPP stands for\npenny pilot program, which was\nput in place by the CBOE (Chicago\nBoard Options Exchange) a few\nyears back. Prior to the start of the\nPPP, options would trade no less\nthan the five-cent spread (bid .95/offer\n1.00). This program started with\njust a few stocks that started trading\noptions in the pennies. Now there\nare more than 300 stocks on the penny\nlist. This list can be found at https://www.\ncboe.org/hybrid/pennypilot.aspx.
2) Look at the strike universe. Option\nstrikes are plentiful, but which ones offer\nthe best liquidity? Let’s take a look\nat each type of option:"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-33-explore-your-options-by-tom-gentile-20.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-33-explore-your-options-by-tom-gentile-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-33-explore-your-options-by-tom-gentile-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov313trbu,d,"{""minimum-quantity"":""1"",""path"":""ch7j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:7 (34–38): Trading Buy & Hold by Thomas Bulkowski"",""caption-linebreaks"":""Trading Buy & Hold by Thomas Bulkowski
There’s No Holding On
Trading Buy & Hold
There comes a time when you have to sell your long-term holdings. Here’s how you\nknow when to sell them.
Trading buy & hold may sound like an oxymoron, but one day the hold in buy &\nhold will become a sell. Usually, when someone buys and holds a stock for the\nlong term, it means they will own it for years, sometimes decades. In 1990 I bought shares of Michaels Stores and after\n17 years, had to sell them. I didn’t\nhave a choice; the company went\nprivate. Fortunately, I made almost\n5,000% on the trade. Whether you\nhave a choice or not, most buy & hold\ninvestments have an expiration date\n— a time when it’s best to sell.
When is that time?
Take a look at the chart in Figure\n1. In the period leading to the bear\nmarket in 2000, many semiconductor\nstocks showed a profile similar\nto that of Intel (INTC).
In the late 1990s, the value of\nINTC made tremendous gains, but\nthe velocity ramped up in 2000\nwhen the froth for technology stocks\npushed them to Everest heights. Then\nlook what happened. The tech bubble\nburst and the bear market did the\nrest. Since then, the stock has been\nstuck at base camp.
To highlight that the plight of\nINTC was not alone, I show another\nexample in Figure 2. The chart of\nAnadigics (ANAD), another semiconductor\nstock, looks similar to that\nof INTC. The stock price waved up\nand down and then had a sharp rise\nfrom 1999–2000. After spending\ntwo months in the rarified atmosphere\nover $100, the stock started\nits return down the price mountain.\nAt the summit in March 2000, the\nstock price reached $112. A year\nlater, the value of the stock bottomed\nat $10.50. An investor seeing that\nkind of giveback would question\nthe sanity of holding a stock for the\nlong term."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-34-38-trading-buy-hold-by-thomas-bulkowski-20.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-34-38-trading-buy-hold-by-thomas-bulkowski-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-34-38-trading-buy-hold-by-thomas-bulkowski-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov313qaby2,d,"{""minimum-quantity"":""1"",""path"":""ch7j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:7 (39): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
Short selling revisited
You have written previously about the\nidea of selling stocks short. I think I\nunderstand the concept of profiting when\na stock’s price goes down, but I still am\nunclear on some things. Perhaps you\ncan help me. I remember from years ago\nsomething about an uptick rule. A friend\ntold me recently that we don’t need to\nworry about that rule any longer. To be\nhonest, I’m not even sure what that term\nmeans; is it something I need not worry\nabout these days?
Another question is about stocks that\ncannot be shorted because they are\n“hard to borrow.” What does this mean?\nIs this something that would affect my\ndesire to sell stocks short to make money\non the downside? I think the market is\nway too high and will likely go down\nsoon.
— Jlong, Denver, CO
Okay, my friend, first off I have to\nrespond to your last comment about the\nmarket being too high. The Street is paved\nwith ex-traders who thought the market\nwas too high\nabout 3,000\nDow points ago! Be careful with\nyour directional\ntrading.\nPicking\ndirection (stubbornly, especially) is how\nwe lose new people from time to time.\nYou might check Tesla Motors (TSLA)\nas an example of a “short squeeze” (look\nback at a May 2013 chart of TSLA).
Regarding your questions about\nshort selling and the details of how it\nall works: Traders tend to think of buying\nand selling simply as entry and exit\npoints. Sometimes we buy first, then sell.\nSometimes we sell (short) first, then buy\nback. It doesn’t make much difference to\nus, since stocks tend to go up and down\neach day, week, month, and so on. If I\nbuy something at $30.40 and sell it at\n$30.90, I make 50 cents on, say, 1,000\nshares, or $500. If I sell (short) something\nat $30.90 and buy it back at $30.40, I\nagain make the same $500. That part is\npretty straightforward."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-39-q-a-by-don-bright-20.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-39-q-a-by-don-bright-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-39-q-a-by-don-bright-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314howl,d,"{""minimum-quantity"":""1"",""path"":""ch7j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:7 (40–43): How Long Will The Trend Last? by L.A. Little"",""caption-linebreaks"":""How Long Will The Trend Last? by L.A. Little
The Big Question
How Long Will\nThe Trend Last?
All trends begin and eventually end, but the rate at which they end is not the same\nacross all time frames. Find out how incorporating trend failure rates into your\ntrading can make you a more effective trader.
Time is the hardest element\nto integrate with technical\ntrading. After studying many\nways that others have attempted to do\nthis, I somehow felt they were lacking\nand still wanted to take it further.
In most engineering disciplines,\nyou’ll come across the concept of measuring\na product’s useful life cycle. It\nis often referred to as the mean time\nto failure (MTTF). Essentially, it’s\nan estimate of the average, or mean\ntime until product failure. It is a useful\nmeasure and is drawn from a representative\nsample set of the population\nunder study, whatever that may be.
Mean time to failure?
Some common, everyday examples\nof objects with MTTF rates include\nyour washing machine, your microwave\noven, or the toaster sitting on\nyour countertop. All have a useful life\ncycle and in all cases, that expected\nlife cycle is estimable. They come\noff the factory floor, are purchased,\nand then serve their owner for some\nuseful period of time before breaking\nand being retired.
In my book Trend Qualification\nAnd Trading, I outlined a neoclassical\nmethodology centered on the notion\nthat not all trends are created equal.\nThis conclusion was reached after I\nsystematically studied thousands of\ntrading instruments across multiple\ntime frames in an automated fashion.\nI then examined the probability of the\ntrend continuing based on various\nattributes I observed. The most interesting\nattribute where a correlation\nwas clearly observable was related\nto volume characteristics. Volume\nconfirmation (confirmed trend) or\nnonconfirmation (suspect trend) at\nthe time of a trend’s transition led to\nan increased or decreased probability\nof trend continuance."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-40-43-how-long-will-the-trend-last-by-l-a-little-20.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-40-43-how-long-will-the-trend-last-by-l-a-little-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-40-43-how-long-will-the-trend-last-by-l-a-little-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314inpo,d,"{""minimum-quantity"":""1"",""path"":""ch7j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:7 (44–48): Interview: Power Up Your Indicators With Jean Folger by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Power Up Your Indicators With Jean Folger by Jayanthi Gopalakrishnan
Click And Trade? Not So Fast!
Power Up Your Indicators\nWith Jean Folger
Jean Folger is a technical analyst and system researcher with PowerZone Trading,\na company she cofounded. She is author of Make Money Trading: How\nTo Build A Winning Trading Business, and a private trader specializing in the\nemini markets. She is an affiliate of the Market Technicians Association, and\nis a regular contributor to financial magazines and news outlets.
PowerZone Trading (www.powerzonetrading.com) develops commercial trading\nindicators and systems for the NinjaTrader, TradeStation, and MultiCharts\ntrading platforms. The company provides programming and consulting services\nfor active traders. Folger can be contacted at jean@powerzonetrading.com.
Stocks & Commodities Editor Jayanthi Gopalakrishnan interviewed Folger\non May 9, 2013.
Tell us a little bit about yourself\nand how you got interested in the\nmarkets — specifically, technical\nanalysis.
The markets have always fascinated\nme. As a young teenager I remember\nwatching my dad study The Wall Street\nJournal, Investor’s Business Daily, and\nTechnical Analysis of Stocks & Commodities\nmagazine. He’d always have a\npencil, graph paper, and calculator out on\nthe table and he helped me make my first\ninvestment. When it did well, I became\nreally interested in taking a more active\napproach in the market because, up to\nthat point, I’d really only been exposed\nto buy & hold investing. I had to spend\nconsiderable time reading everything\nI could about trading and eventually\ntechnical analysis. Technical analysis\nreally clicked for me from the beginning,\nand that might take a little background\nhistory to explain why.
I’m curious.
I am active in a lot of adventure sports\nlike mountain biking, kite surfing, and\nwhitewater kayaking. When I started\nkayaking hard rivers, I never felt comfortable\njust blindly following a more\nexperienced kayaker through a difficult\nrapid. I always wanted to stop above the rapid and scout it, take a look at it,\nwatch how the water is moving, and\ncome up with a plan based on what I\nsaw. Ultimately, this meant looking at\na rapid, figuring out where I wanted\nto be at the bottom of the rapid, and\nworking my way up to the top to figure\nout the best line through the rapid.\nOnce I saw my line, I was confident\nI could navigate the rapid, whereas if\nsomeone else was telling me where to go,\nit didn’t work well for me. I had to see it\nmyself. Trading is the same way.
I felt like it was really easy to follow\nother people, like analysts, when making\ninvestment decisions, but I wanted to see\nthe trade for myself. Technical analysis\ngave me the tools I needed to make my\nown decisions. Eventually, I used technical\nindicators to build a daytrading\nstrategy, but I found I was looking at the\nsame indicators that everyone else was\nlooking at, such as moving averages and\nthe CCI (commodity channel index). I\nwanted a unique view of the market, so\nI worked on developing several custom\nindicators to help me find specific market\nconditions instead of being limited to the\nindicators that were already included\nin my trading platform. These custom\nindicators became the basis for the first\ndaytrading strategy that I developed, tested, and ultimately traded for several\nyears. That’s how I became interested in\ntechnical analysis."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-44-48-interview-power-up-your-indicators-with-jean-folger-by-jayanthi-gopalakrishnan-20.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-44-48-interview-power-up-your-indicators-with-jean-folger-by-jayanthi-gopalakrishnan-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-44-48-interview-power-up-your-indicators-with-jean-folger-by-jayanthi-gopalakrishnan-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314quin,d,"{""minimum-quantity"":""1"",""path"":""ch7j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:7 (49): Quick-Scan: Indicator Warehouse by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Quick-Scan: Indicator Warehouse by Jayanthi Gopalakrishnan
Indicator Warehouse\nProfitable Decisions, Inc.
9002 Chimney Rock Rd.,\nSuite G-115
Houston, TX 77096
Internet: www.indicatorwarehouse.com
Phone: 877 646-5249
Product: Add-on indicators for\nNinjaTrader
As the name Indicator Warehouse (IW)\nsuggests, this is a place where you can find\nseveral indicators. They are not standalone\nindicators; they are all add-ons for\nNinjaTrader, which means you’ll have to\nbe a NinjaTrader user to use them. Their\nflagship indicator, Diversified Trading\nSystems (DTS), includes several signal\ngenerators, all of which are proprietary.\nIf you look through the various add-ons\noffered by IW, you will see that their\nproducts tend to be visual, making it\neasy to identify patterns, overbought/\noversold levels, support/resistance levels,\nprice channels, and various other tools\nyou can apply to charts. One product I\nfound interesting was Trade Manager,\na risk management add-on you can use\nwith your trading system."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-49-quick-scan-indicator-warehouse-by-jayanthi-gopalakrishnan-20.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-49-quick-scan-indicator-warehouse-by-jayanthi-gopalakrishnan-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-49-quick-scan-indicator-warehouse-by-jayanthi-gopalakrishnan-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov315prre2,d,"{""minimum-quantity"":""1"",""path"":""ch7j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:7 (50–52): Product Review: Unfair Advantage by Technical Analysis, Inc."",""caption-linebreaks"":""Product Review: Unfair Advantage by Technical Analysis, Inc.
Unfair Advantage
CSI Corporate Headquarters
200 West Palmetto Park Rd., Suite 200
Boca Raton, FL 33432
Internet: www.csidata.com
Phone: 800 274-4727,\nFax: 561 392-8663
Email: (sales) info@csidata.com;\n(support) support@csidata.com
System requirements: Most Windows\noperating systems supported
Product: Supplier of end-of-day and\nhistorical data for worldwide financial\nmarkets
Price: A wide variety of packages are\noffered, such as North American Futures\n($33.54/month or $313/year) or\nUS Stocks and Indices ($33.25/month\nor $285/year)
The primary objective of Unfair\nAdvantage (UA) is to allow you to\nexport end-of-day (EOD) quotes to\nthird-party software. You store the data on\nyour disk in a compressed format and then\nconvert it to a format that the third-party\nsoftware can use. The compression is so\nefficient that it lets you get by with as little\nas one gigabyte (GB) for US stocks and\nindexes, and only requires two GB for\noptions. Much of the data goes back 20\nyears and some of it 60 years. CSI (Commodity\nSystems, Inc.) prides itself in its\naccurate data, which is why companies\nsuch as Yahoo Finance! use CSI to provide\nEOD quote data to users.
UA includes charting but it is not\nequipped with all the bells and whistles\nyou find on full-featured products.\nSeveral techniques are available to create\ncontinuous commodities contracts,\nand UA covers all of the world’s major\nmarkets. If you are looking for a costcompetitive\nand accurate EOD datafeed,\nthis is the product you want.
Commodities contracts
If you have a brokerage account that allows\nyou to trade commodities, you can probably get quotes on a limited number\nof contracts, such as those trading on the\nCME (Chicago Mercantile Exchange). If\nyou want to backtest commodities, you’ll\nwant to create a “continuous” contract.\nCommodities contracts usually have a\nlimited life because there is a delivery\ndate involved. A continuous contract\nallows you to have a price series that is\nlonger than any single contract. UA has\nseveral techniques for creating continuous\ncontracts for commodities traded on\nexchanges all over the world. The tabs\nat the top of Figure 1 such as nth nearest,\nperpetual, back-adjusted, and Gann\nare all different techniques for creating\na continuous price series.
One note about terminology: When\nUA refers to a series, it is talking about\na series of individual contracts that have\nbeen linked together to create a single\ncontinuous contract. Two terms that any\ncommodities trader needs to know are\nopen interest (OI) and volume. Open\ninterest refers to the number of contracts\ncurrently being held, and volume refers\nto the total number of contracts bought\nand sold. The differentiation is important\nbecause it can signal buyer expectations\nversus liquidity. A useful technique in\ncreating a continuous contract is to start\nusing the next contract when the OI on\nthat next contract equals the OI on the\nprevious contract. This process of going\nfrom one contract to the next is called\nrollover."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-50-52-product-review-unfair-advantage-by-technical-analysis-inc-20.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-50-52-product-review-unfair-advantage-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-50-52-product-review-unfair-advantage-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov315trti2,d,"{""minimum-quantity"":""1"",""path"":""ch7j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:7 (53–62): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is\nSylvain Vervoort’s article in this issue, “The\nStep Candle Pattern.” Here we present the\nJuly 2013 Traders’ Tips code with possible\nimplementations in various software.
Code for NinjaTrader is already provided\nin Vervoort’s article. Subscribers will\nfind that code at the Subscriber Area of\nour website, www.Traders.com. (Click on\n“Article Code” from our homepage.) Presented here is an\noverview of possible implementations for other software.
Traders’ Tips code is provided to help the reader implement\na selected technique from an article in this issue.\nThe entries are contributed by various software developers\nor programmers for software that is capable of customization.
Readers will find the July 2013 Traders’ Tips code at\nour website, Traders.com, in the Traders’ Tips area. Here,\nyou can read some discussion of the technique’s implementation\nby the Traders’ Tips contributors as well as\nsome example charts.
To locate Traders’ Tips at our website, click on the link\nfrom our home page, or use our site’s search engine."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-53-62-traders-tips-by-technical-analysis-inc-21.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-53-62-traders-tips-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-53-62-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov316bofo3,d,"{""minimum-quantity"":""1"",""path"":""ch7j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:7 (65): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The 17.6 Year Stock Market Cycle: Connecting\nThe Panics Of 1929, 1987, 2000\nAnd 2007 (91 pages,\n£11.99/£15.29\nebook, 2013, ISBN\n9780857192738) by\nKerry Balenthiran,\npublished by Harriman\nHouse.
How\ndo we know where\nwe are in the current\nstock market cycle?\nHow can we know if\nwe are in the midst of a new long-term bull\nmarket or a market rally within an ongoing\nbear market? Forming an appropriate investment\nstrategy depends on the answers to\nthese questions. Balenthiran studied stock\nmarket data going back 100 years and observed\na regular 17.6-year stock market cycle\nin increments of 2.2 years. He has extrapolated\nthe cycle forward to provide investors\nwith a market roadmap stretching\nout to 2053. In this book, he describes cycle\nprojection in detail and outlines the changing\ncharacter of the stock market through the\ndifferent phases of the 17.6-year stock market\ncycle.
Trade Secrets: Powerful Strategies For\nVolatile Markets, updated edition (152\npages, £40/ £27.99\nebook, 2013, ISBN\n9780857192776) by\nAdrian Manz, published\nby Harriman\nHouse.
Trade Secrets\nis a trading\nguide that seeks to\nteach a complete\ntrading method from\nstart to finish. The\ntrade secret at the heart of the book is the\nexpansion-of-range-and-volume setup. This\nconcept is explored in detail, covering how\nand why it works, and demonstrating its utility\nfor day, swing, and position traders. This\nstrategy is designed to be portable, and it is\napplicable to multiple-time compressions."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-65-books-for-traders-by-technical-analysis-inc-21.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-65-books-for-traders-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-65-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov31862le,d,"{""minimum-quantity"":""1"",""path"":""ch7j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:7 (8–9, 62): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
PE RATIOS AND MARKET SECTORS
Editor,
I read with great appreciation your\nmonthly issues. I got “sucked in” with\nyour sample issues, and what great articles\nthere were in those samples (for\nexample, Teresa Fernandez’s “Dogs\nOf The Dow”; Trent Gardner’s “Using\nVIX To Forecast The S&P 500”; Ron\nMcEwan’s “Lunar Cycles And Stock\nMarket Volatility”; and the latest article\nby Mark Vakkur, “Sell In May And Go\nAway”). Keep them coming — they’re\nthought-provoking!
As for Vakkur’s latest, “Sell In May”\n— why, I wonder? It appears that buy\n& hold from December 1979 at 107.9\nthrough December 2012 at 1426.2 would\nyield fully as good with no selling but\nwith dividends, when available. Great\narticle!
Now I would like to see greater information\nabout PE ratios for the 10\nmarket sectors, for example, the Case-\nShiller CAPE (cyclically adjusted price\nearnings) ratio and its effect on those\nsectors. Does the PE ratio reveal highs\n& lows (which may indicate tops & bottoms\nand market in & out information)?\nIf so, it could be one more indicator to\nhelp investors.
Thanks for a great magazine. Awaiting\nyour next issue.
Bill
Thank you for your comments. We appreciate\nfeedback from our readers.
As for Vakkur’s May 2013 article: It\nis true that the market has an upward\nbias over time, and buying & holding\nover long periods is usually a profitable\napproach. But the point of the article\nhad more to do with testing this market\nadage. Rather than simply assuming the truthfulness of oft-repeated market\nsayings, technical analysts prefer to test\nthem to try to find out whether they are\nactually reliable and have proved to be\ntrue, at least on historical data. Further,\nsince not everyone can buy & hold\nfor three decades (!), or for those who\nprefer a shorter-term style of investing,\na study such as this one on timing and\nseasonality can be helpful.
Finally, it can be useful to compare a\nsimple buy & hold approach to timing\nmethods over long periods to find out\nwhether buy & hold can be improved\non and made more profitable by adding\ntiming techniques. Subscribers can find\nseveral articles on this topic in the article\narchives at our website, Traders.com.
For more on the topic of buy & hold\nand how to know when may be a good\ntime to sell long-term holdings, see the\narticle by Thomas Bulkowski in this\nissue, “Trading Buy & Hold.”
As for PE and CAPE: One recent\narticle we’ve published on this topic\nis “A Fundamental Lesson For The\nTechnically Minded” by Matt Blackman,\nwhich you’ll find at our website\nat http://premium.working-money.com/\nwm/display.asp?art=841 (or navigate to\nthis article by going to our homepage\nat Traders.com, then click on “Working\nMoney” toward the top; login is\nrequired).
—Editor"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-8-9-62-letters-to-s-c-by-technical-analysis-inc-21.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-8-9-62-letters-to-s-c-by-technical-analysis-inc-24.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-7-8-9-62-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov311trby,d,"{""minimum-quantity"":""1"",""path"":""ch8a209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:8 (10-14): Trading By The Numbers by Sami Khan"",""caption-linebreaks"":""Trading By The Numbers by Sami Khan
Beyond Visual
Many traders are happy to backtest their trading systems,\nbut how often do they study the statistics behind their\ntrading setups prior to implementing a strategy? Here’s a\nlook at how taking this step can help determine whether it’s\nworth developing a trading system based on an idea.
When you make a decision, chances are you will look\nat what happened the last time to see what to expect\nthis time. For example, you would avoid traveling on\na route to work that has been congested in the past, or\nyou would avoid eating foods that you haven’t liked before.\nSimilarly, if you are looking to trade based on a trading system,\nyou would want to see past information about the system.\nTypically, this would be done by performing a backtest.
Are backtests the best action to take?
Let’s take a step back. For simplicity, say the system you\nare considering will have long-only entries, and you have a\nwell defined setup. Before performing a complete backtest of\ntrades, ask yourself, “When I have seen this setup in the past,\ndid the price usually go up afterward?”
Note that I’m not talking about actual trades taken here —\nI’m talking about understanding the typical price distribution\nafter a setup has occurred.
For this long-only system to be of any interest, price must\nhave usually gone up after the setup. But what does it mean\nto say that price must have usually gone up? Fortunately,\nthese days, there are huge amounts of financial data available,\nmaking it easy to find when the setup has occurred in\nthe past. After locating an occurrence, you can look forward\nin the data and sample subsequent price action. Then you can perform a standard statistical test\nto see whether it is statistically sound\nto say that price is likely to go up after\nthe setup."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-10-14-trading-by-the-numbers-by-sami-khan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-10-14-trading-by-the-numbers-by-sami-khan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-10-14-trading-by-the-numbers-by-sami-khan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov311trwi,d,"{""minimum-quantity"":""1"",""path"":""ch8a209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:8 (16-23): Trading Without A Backstop by Anthony Trongone, PhD, CTA, CFP"",""caption-linebreaks"":""Trading Without A Backstop by Anthony Trongone, PhD, CTA, CFP
Untangling The Web
Stop orders minimize losses, but they can\nalso misfire. Here’s a statistical model applied to\nthe spiders that quantitatively measures the profitability\nof protective stop orders.
The consensus among market strategists is\nthat traders should always use stop orders\nwith long positions. In fact, sometimes even\nquestioning the absence of protective orders invites\ncriticism; evidently, this is a contentious topic. During\nmy presentation for Technical Analysis of Stocks &\nCommodities at the 2013 New York Trading Expo,\nthe daytraders attending agreed they often found stop\norders somewhat meaningful; they were, however,\nalso quick to acknowledge that these orders can just\nas easily misfire.
The main reason supporting the use of a backstop\nis to offset your position before a minor loss turns\ninto a devastating setback. Besides insulating you\nfrom further loss, it also offers the psychologically\ncalming effect of knowing that your downside exposure\nis fixed.
Although the premise for minimizing loss appears\nto be a sensible strategy, the basis for this recommendation\ncomes from subjective theory, not empirical\nevidence. Thus, the discussion often skirts around\nthis issue by giving us platitudes such as “never let\na small loss turn into a big one.” Rather than accept\nthis at face value, I prefer to construct a statistical\nmodel to quantitatively measure the profitability of\nthese protective stop orders."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-16-23-trading-without-a-backstop-by-anthony-trongone-phd-cta-cfp-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-16-23-trading-without-a-backstop-by-anthony-trongone-phd-cta-cfp-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-16-23-trading-without-a-backstop-by-anthony-trongone-phd-cta-cfp-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov312wivo,d,"{""minimum-quantity"":""1"",""path"":""ch8a209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:8 (24-29): Within The Volatility Band by Sylvain Vervoort"",""caption-linebreaks"":""Within The Volatility Band by Sylvain Vervoort
Take It From The Top, Or Bottom
In this fourth part of a seven-part series, we look at\ncatching reversals using the boundaries of volatility bands.
One of the indicator rules for my swing trading strategy\n(IRSTS) is to catch potential reversal points using the\nupper and lower boundaries of volatility bands. In\nthis article, I will show you how to create volatility\nbands and use them to make buy & sell decisions.
Measuring volatility
There are many ways to measure price volatility; one of the\ncommon ways is to use the average true range (ATR), originally\ndeveloped by J. Welles Wilder and introduced in his book New Concepts In Technical Trading Systems. The true\nrange indicator is the greatest of the following:
* The current high less the current low
* The absolute value of the current high less the\nprevious close
* The absolute value of the current low less the\nprevious close.
Simply put, a stock experiencing a high level of volatility\nwill have a higher ATR, and a low volatility stock will have\na lower ATR.
Personally, I prefer to smooth results right from the first\ndata manipulation, which is why instead of using the closing price, I start with typical data, which is the high + low\n+ close divided by three.
When the typical price of today is greater than or equal\nto yesterday’s typical price, I will then use the typical\nprice of today minus the low price of yesterday. When\nthe typical price of today is less than yesterday’s typical\nprice, I will use the difference between the typical price\nof yesterday minus the low price of today.
By default, I smooth this data by summing a 13-day\nperiod. In Figure 1 you can see the difference between\na standard 13-period ATR graph in the middle and the\nsmoother ATR typical graph at the bottom. The rising\nor falling volatility in a selected time period will usually\nbe smoother than the Wilder ATR. This better suits the\npurpose behind the volatility band I want to create."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-24-29-within-the-volatility-band-by-sylvain-vervoort-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-24-29-within-the-volatility-band-by-sylvain-vervoort-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-24-29-within-the-volatility-band-by-sylvain-vervoort-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov313mamo,d,"{""minimum-quantity"":""1"",""path"":""ch8a209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:8 (30-33): Market Mobs by John Cameron"",""caption-linebreaks"":""Market Mobs by John Cameron
The Power Of Crowds
The markets are powerful and propelled by emotions, often\ninfluenced by crowds. Get an edge by understanding how\nshifts in sentiment affect the supply/demand balance and\nultimately price.
Does being in the markets make you a mobster? In 2002,\nthe International Federation of Technical Analysts (IFTA)\nheld one of its annual conferences in London. From all\nover the world, technical analysts had gathered in convivial\ncompany for the serious purpose of listening to colleagues\nread papers about new approaches and techniques and exciting\nvariations to venerated practices.
The first speaker, David Fuller, a genuinely gifted and greatly respected analyst, strode to the rostrum to enlighten\nthe assembly about the market. The first slide lit the screen\nas he read out his opening remark: “It’s just a mob!”
Most would never think of describing the market in such a\nway. But it is an illuminating insight. The market is a crowd,\na phenomenon, or, more straightforwardly, an entity in its\nown right that amounts to more than the sum of its parts. It is\npowerful and propelled by emotion. As Gustave Le Bon aptly\nput it in 1895, “A crowd is a psychological phenomenon, not\na physical one.”
A sentimental journey
The crowd’s psychological impact is on the subconscious\nof its members. It has the dominating emotional effect that\nsupplants the understanding of its individual constituents. Deindividuation is the ugly term that is given to the idea that\npersonal cognitive assessment is swamped by the emotional\ntsunami that is the crowd. Tony Plummer expressed this clearly:\n“A crowd has an effective mind of its own; each individual’s\nbehavior is altered by membership of a crowd.”
It is this mass emotion of the crowd that forms what is\nknown as sentiment. Think of it as the collective emotional\nresponse to all that is known or expected of the market; it’s\nwhat market participants feel. That great market interpreter,\nRalph Nelson Elliott, in his book Nature’s Law commented,\n“Simply put, the stock market is a creation of man and therefore\nreflects human idiosyncrasy.” He went on to stress the lack\nof appreciation of this understanding when he wrote, “Those\nwho have attempted to deal with the market’s movements\nhave failed to recognize the extent to which the market is a\npsychological phenomenon.”"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-30-33-market-mobs-by-john-cameron-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-30-33-market-mobs-by-john-cameron-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-30-33-market-mobs-by-john-cameron-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov313inma1,d,"{""minimum-quantity"":""1"",""path"":""ch8a209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:8 (34-38): Interview: Managing Risk With Lan Turner by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Managing Risk With Lan Turner by Jayanthi Gopalakrishnan
One Tick At A Time
Lan Turner has worked in the financial industry for more than 18 years and has\ntaught his ideas on stocks, futures, and forex trading to clients, professional\ntraders, and brokers from around the world. Turner is the CEO of Gecko Software\n(www.GeckoSoftware.com) and chief design architect of Track ’n Trade\nLIVE trading platforms and charting applications. Turner is also president\nof PitNews Press and editor-in-chief of PitNews Magazine. He is an author,\npublisher, and public speaker, having taught live trading seminars across the\nUS and internationally. He has also presented at the Chicago Board of Trade\nand the Chicago Mercantile Exchange education centers.
Stocks & Commodities Editor Jayanthi Gopalakrishnan spoke with Turner\non June 5, 2013.
Why don’t you tell us a little bit about\nyourself — your background, and\nhow you got interested in trading.
It started in the late 1980s, back\nwhen the Internet was just getting started\nand becoming quite popular. I had a\nsmall company that imported modems,\nnetwork cards, and hubs. It was a wholesale\ndistributor of computer hardware.\nThe Internet was really taking off at that\ntime, and all the computers needed to\nhave modems. So I was making quite\na bit of money importing modems and\nselling them up and down the street\nto all the computer stores here in the\nMidwest.
Since I made a chunk of money selling\nmodems during the Internet boom, I\nneeded to figure out a way to invest some\nof the money. So I started to invest in\nthe stock market at the time the Internet\nboom was beginning. I made a huge haul\non my very first trade.
Most traders will tell you that making\na bunch of money on your first trade is\na big mistake, because then you think\nyou’re really good when really, you don’t\nknow what you’re doing. That was classic\nfor me, too. I made a whole bunch\nof money in the stock market and then\nturned around and quickly lost most of it\nand was right back where I started.
I decided that I better figure out how\nto do this if I was going to do it, so\nI started to study. And that’s when I\nstarted to look into different markets.\nI was introduced to the futures market\nby a friend of mine, and I started looking\ninto and researching the futures\nmarket. When I discovered the futures\nmarket, I absolutely loved it."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-34-38-interview-managing-risk-with-lan-turner-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-34-38-interview-managing-risk-with-lan-turner-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-34-38-interview-managing-risk-with-lan-turner-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov313exyo1,d,"{""minimum-quantity"":""1"",""path"":""ch8a209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:8 (39): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
Gold: Rusty Metal or Buying\nOpportunity?
Gold sure has gotten a lot of press so far\nin 2013. The metal started out the year on\na high note — the first week of January\nsaw gold at its highest levels for the year\nso far. Since then, gold has been on the\ndecline, and in April it dropped off a cliff,\ntaking a 10% plunge in just two days. As\nthe bitcoin seems to be the “new thing”\nin decentralized currencies, gold had lost\nits short-term luster to investors. This\ndigital phenomenon is the reason why\ngold may only be on a temporary drop,\npotentially to bounce back as everyone’s\nfavorite by year’s end.
Is the bitcoin the “Internet bubble”\nof the currency markets? The bitcoin\nis a creation that has been around for\nonly a few years now. Supposedly, a\nman using the name Nakamoto laid\nthe foundation for digital currency. Bitcoins\nare paid when someone cracks a\nseries of computer-coded mathematical\nproblems. Once one of the algorithms is\ncracked, the miner receives bitcoins. As\nmore and more bitcoins are mined, the\nalgo gets harder and harder to crack until\neventually there are no more bitcoins\nto mine. A bitcoin is a decentralized\ncurrency, meaning that no government\ncan control it. There is also anonymity\nin how a bitcoin is spent. It’s traded\ndirectly from point to point, with no\nbank or reserve keeping track of how it’s\nswapped. Nakamoto limited the number\nof bitcoins to be produced, which is\npegged to 22 billion. Roughly half of\nthe allotted bitcoins have been “mined”\nfrom various computers thus far.
Mt.Gox became the first exchange\nto trade bitcoins as a currency. Some\ncompanies even use bitcoin as a form of\ncurrency with which to buy and sell. A\nreport recently came out that someone\naccepted bitcoins for the purchase of\na Porsche automobile. Some investors\nbelieve the bitcoin is the best hedge\nagainst inflation, deflation, and outright\ndepression. The only problem is that the\nUS government isn’t going to allow this\ncurrency to circulate without some form\nof regulation. Some bitcoin counterparts\nhave been frozen or shut down for illegal\nmoney-laundering tactics, as the\nFeds call it."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-39-explore-your-options-by-tom-gentile-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-39-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-39-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov31452ke,d,"{""minimum-quantity"":""1"",""path"":""ch8a209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:8 (40-42, 52): Keep Your Portfolio Safe by Azeez Mustapha"",""caption-linebreaks"":""Keep Your Portfolio Safe by Azeez Mustapha
Unleash The Victor
We often find ourselves making the same mistakes over and\nover. Coming to terms with the reality of trading can help\nyou break those bad habits. Find out how.
Most traders do not take risk control and money management\nseriously, which is why many are unable to enjoy\nlong-term survival. Logical reasoning tends to give\nway to inordinate emotions, but emotions are merely\nbiological events like a cough or a sneeze with no meaning\nand are the opposite of thinking. Most market speculators\nlike to think that the secret to trading success lies in trading\nstrategies that allow them to enter at the right price, giving\nno thought to risk-control measures or discipline. Knowing\nhow to limit losses, how to survive protracted losing streaks,\nhow not to lose courage in the face of losing trades, how to\ncontrol the emotions of avarice and dread, how to come to\nterms with reality in trading, and how to keep on being hopeful by encouraging yourself and other market speculators will go\na long way in helping you to evolve as a market wizard.
Coming to terms with reality
Information is vital in conditioning the mindset of a market\nspeculator. In order to win constantly, you would need to do\nwhat most others would not want to do. There is also a need\nto learn what it takes to be a permanently successful trader.\nEach individual or group that speculates or trades employs a\nmethod that enables them to know when to buy or sell. Some\ncombine two or three trading methods on one account. Some\nuse fully-capacitated robots, whereas others use rule-based\nsystems. A trader who follows long and short recommendations\nfrom a signal provider is also using a strategy.
Trading, however, is no picnic. Every good strategy has\ngood and bad periods. Those who are aware of this tend to\nlook for a strategy that has long withstood the uncertainties of\nthe markets. Many people prefer a foolproof trading system\nthat triumphs in all types of financial markets and survives all market conditions. Novel methods\nof approaching the markets are getting\ndiscovered all the time; time horizons are\nbeing tailored to allow high-frequency\ntrading; and programs are being written to\ncreate more robust and highly complicated\nstrategies.
Charles Kirk of The Kirk Report (www.\nkirkreport.com) began trading with a\n$2,000 deposit in 1993 and now trades with\na $3 million portfolio. Since 1999, he has\nbeen a self-employed, full-time, independent\ntrader. If he were not able to keep his\naccount safe when it was $2,000, he would\nnot be able to keep it safe when it’s $3 million. According to\nKirk, the best traders will be wrong 40% of the time.
There are two ways of becoming a consistent victor on the\nbattlefield of the financial markets. One is to assimilate the\nmarket dynamics, and the other is to keep your emotions in\ncheck. Both are a daunting undertaking, but there has to be a\nway of conquering both."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-40-42-52-keep-your-portfolio-safe-by-azeez-mustapha-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-40-42-52-keep-your-portfolio-safe-by-azeez-mustapha-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-40-42-52-keep-your-portfolio-safe-by-azeez-mustapha-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314fufo2,d,"{""minimum-quantity"":""1"",""path"":""ch8a209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:8 (43): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
INTERMARKET RELATIONSHIPS\nFOR FUTURES TRADERS
An intermarket relationship is simply\nthe manner in which particular markets\nbehave in relation to each other; more\nspecifically, it is the correlation between\ntwo otherwise unrelated markets. Among\nthe most monitored relationships are\nthose between stocks and bonds, and the\nUS dollar and commodity prices.
Most people assume that stocks and\nbonds will always be negatively correlated\n(that is, moving in the opposite\ndirection). But this is a simplistic view\nthat suggests investors have only two\nchoices, stocks and bonds; money\nmoved out of one typically coincides\nwith money moved into the other. There\nare, however, times when both assets\ncan move higher or lower together.\nFor example, in the early stages of the\nFederal Reserve’s quantitative easing\ncampaign, the never-ending printing of\nUS dollars and the subsequent need for\nliquidity to find a home caused nearly all\nasset prices to move higher in lockstep.\nDuring this time, the equity market\nand Treasury securities were both able\nto climb to multiyear highs. And again\nmore recently, statistics on the past 180\ntrading days, as of early June, suggest\nthat the S&P 500 futures contract and\nthe 30-year bond futures contract were\nnegatively correlated a mere 40% of the\ntime. This leaves plenty of time (60%) for\nthe markets to be trading outside of what\nis the conventional expectation.
An interesting intermarket relationship\nthat is surprisingly reliable but that\nhas managed to go under the radar is the\nnegative correlation between the S&P\n500 and the Japanese yen. According to\nstats spanning the previous 180 trading\nsessions (as of early June), these two\nmarkets traded in opposite directions\napproximately 91% of the time! Based\non this information, anyone who was\nlooking for a crack in what was then\nthe magnificent stock rally may have\nlooked to any strength in the yen versus\nthe dollar (a higher yen futures contract,\nor a lower USD/YEN in forex) as a hint\ntoward a reversal."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-43-futures-for-you-by-carley-garner-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-43-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-43-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314syde1,d,"{""minimum-quantity"":""1"",""path"":""ch8a209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:8 (44-47): System Design Software, Part 2 by Sunny Harris"",""caption-linebreaks"":""System Design Software, Part 2 by Sunny Harris
Basics Of Using Trading Software
In Part 1 of this series on system design\nsoftware, we looked at AmiBroker\nand Adaptrade. Here in Part 2, we’ll\nlook at two more products.
Designing your own trading system\ncan give you a unique edge in your\ntrading. Software with good features\ncan certainly help the design\nprocess along. Fortunately, you have\nmany choices today when it comes to\nselecting system design software. Most\noffer similar features, but each has its\nsubtle differences. In this article series\nin which I take a look at different system\ndesign software, it is my goal to bring\nout the unique features of each of the\nproducts I consider. In this, the second\npart, I will discuss eSignal and Trade\nNavigator.
eSignal, an Interactive\nData company
3955 Point Eden Way,\nHayward, CA 94545
Phone: 510 266-6000\nFax: 510 266-6100
Internet: www.esignal.com
In the days when I was newly in search\nof real-time data, it was eSignal I settled\non. Back then, data was transmitted over\nthe airways on a radio signal dedicated\nto data, and I used what was then called\nLotus Signal. I remember having a huge\ntelevision-type antenna on my roof, with\nwires coming down the side of my house\nand into my trading room. It always\nseemed like when I was in the middle of\na crucial trade, the antenna would need\nadjustment, and I would have my kids\nclimb the roof while we would yell back\nand forth, “Turn it this way, turn it that\nway, stop! You’ve got it.” I’m sure the\nneighbors thought I was nuts.\nFor the times when I was traveling,
I carried a transistor radio-sized handheld\ndevice called QuoTrek on which\nI received my real-time quotes — no\ncharts, just numbers. It was way ahead of\nits time, and only the coolest traders had\none. I also remember paying thousands\nof dollars each month for my data. Thank\ngoodness those days are gone, and now\ndata is all but free. It’s a lot easier to\nmake a profit when your overhead isn’t\nso high."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-44-47-system-design-software-part-2-by-sunny-harris-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-44-47-system-design-software-part-2-by-sunny-harris-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-44-47-system-design-software-part-2-by-sunny-harris-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314prre3,d,"{""minimum-quantity"":""1"",""path"":""ch8a209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:8 (48-50): Product Review: ValueCharts by Barbara Star, PhD"",""caption-linebreaks"":""Product Review: ValueCharts by Barbara Star, PhD
MICROQUANT
3737 Glenwood Ave., Suite 100,\nRaleigh, NC 27612
Phone: 919 827-0009\nInternet: www.valuecharts.com
Product: Indicators that assess price\nvaluation in any time frame
System requirements: NinjaTrader,\nTradeStation, MultiCharts, eSignal,\nTD Ameritrade’s thinkorswim, or\nBloomberg platforms
Price: Small, medium, and large\nindicator bundles ($499/$999/$1,999)
The search for fair value embraces\nthe notion of reasonable pricing\nbetween buyer and seller. But traders\noften want better than fair pricing\nwhen they buy or sell. ValueCharts offers\nindicators based on algorithms that help\ndetermine price valuation. This enables\ntraders to assess the fair value of a stock,\ncommodity, or currency prior to entry\nor exit and to identify whether price is\novervalued or undervalued. It brings\nanother dimension to trading that I think\nof as value trading.
Where are the bargains?
Like value investors, such as Warren\nBuffett, many value traders are bargain\nhunters. They look for tradable symbols\nthat are underpriced in relation to their\nworth. But, unlike value investing methods,\nValueCharts does not use subjective\ncriteria from rating services or fundamental\ndata to determine under- and overvaluations.\nInstead, ValueCharts establishes\nits valuations by applying proprietary\nalgorithms to historical transactional\nprice activity. These algorithms analyze\nthe price activity over various lookback\nperiods and create a floating value axis.\nUsing a floating value point rather than\na fixed one allows for valuations that\nadapt to changing market conditions in\nreal time.
The indicators in ValueCharts incorporate\ndynamic volatility units that expand\nand contract with price. They detect\nstatistically significant areas from which\nprice leaves a fair value range and enters\na zone that represents a better buying or\nselling opportunity. Plus, they do this in\nany time frame.
Together, historical transactional price\nactivity and dynamic volatility units\ncombine to offer traders defined fair value\nzones along with the degree to which\nprice is outside of the fair value range.\nAccording to Mark Helweg, president of\nMicroQuant and creator of ValueCharts,\nthis product offers an objective method\nfor determining the fair price of a trade,\nmuch like the Kelley Blue Book provides\nan objective basis for determining the fair\nprice of a car."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-48-50-product-review-valuecharts-by-barbara-star-phd-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-48-50-product-review-valuecharts-by-barbara-star-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-48-50-product-review-valuecharts-by-barbara-star-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov315qaby2,d,"{""minimum-quantity"":""1"",""path"":""ch8a209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:8 (51): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
STILL DAYTRADING?
I have followed your articles and posts all\naround the web, and I actually met you\nand your brother [Bob Bright] at a trading\nexpo a few years back. I think you and your\nbrother have set a great example for traders\nwho trade with your firm.
I read something you wrote recently that\nseemed to imply that daytrading has lost its\nluster, and perhaps you guys are focusing on\nother methods of trading. Would you please\nlet me know if you’re still daytrading, or if\nyour traders have forsaken it altogether?
— OHinvest
Thanks for the kind words, and I am the\nfirst to acknowledge that my brother has\nalways been my beacon, if you will, and\nhas led the way for our firm over the last\nfew decades.
Now, let’s focus on your question about\ndaytrading. Let me assure you that our traders\ndo indeed engage in basic daytrading.\nHowever, over the last few years, many of\nthem have focused on longer-term strategies\nas well. As traders, we must always continue\nto adapt to the marketplace. We cannot stay\nstagnant, or we will be eaten alive.
Let me quote myself from an article\nI wrote 10 years ago for this magazine\n(“Survival Of The Fittest,” January 2003;\nyou can visit the article archives at Traders.\ncom for the complete article):
Take a look around. The market bubble\nhas burst, and we must learn how to adapt\nto the new era of trading the markets.\nThere are new trading platforms, new\nways to access the markets, and new\nproducts such as single-stock futures\n(SSFs) and narrow-based indexes. Traders\nmust adapt to the new climate to\nremain successful.
As a species, traders face the same\ndilemma that many of our ancestors\ndid — we must adapt or become extinct.\nAlthough the penalty for staying locked\ninto a nonworking strategy may not be\nas severe as the fate of the saber-toothed\ntiger, poverty is a close second. We must\nconstantly be on the lookout for that\nedge.
Back then, we had gone through some\nmajor changes in the marketplace, thus\nrequiring our traders to adapt to everything\nfrom new trading instruments (ETFs, SSFs,\nand so on), to new ways of analyzing individual\nstocks. As the Internet grew, so did\nthe amount of information made available to\ntraders. We have grown accustomed to having\nso much data available that we wonder\nhow we ever got along without it. Allow me\nthe liberty of quoting a bit more from the\nsame article, and then I’ll share what we’re\ndoing differently these days."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-51-q-a-by-don-bright-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-51-q-a-by-don-bright-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-51-q-a-by-don-bright-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov315trti3,d,"{""minimum-quantity"":""1"",""path"":""ch8a209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:8 (53-62): Traders’ Tips by Technical Analysis Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis Inc.
For this month’s Traders’ Tips, the focus\nis Sylvain Vervoort’s article in this issue,\n“Within The Volatility Band.” Here we present\nthe August 2013 Traders’ Tips code\nwith possible implementations in various\nsoftware.
Code for NinjaTrader is already provided\nin Vervoort’s article. Subscribers will\nfind that code at the Subscriber Area of our\nwebsite, www.Traders.com. (Click on “Article Code” from\nthe S&C menu.) Presented here is an overview of possible\nimplementations for other software.
Traders’ Tips code is provided to help the reader implement\na selected technique from an article in this issue.\nThe entries are contributed by various software developers\nor programmers for software that is capable of customization.
Readers will find the August 2013 Traders’ Tips code\nand formulas at our website, Traders.com, in the Traders’\nTips area. Here, you can read some discussion of the\ntechnique’s implementation by the Traders’ Tips contributors\nas well as some example charts.
To locate Traders’ Tips at our website, click on the link\nfrom our home page, or use our site’s search engine."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-53-62-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-53-62-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-53-62-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov316bofo4,d,"{""minimum-quantity"":""1"",""path"":""ch8a209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:8 (65): Books For Traders by Technical Analysis Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis Inc.
Extraordinary Popular Delusions And\nThe Madness Of Crowds, financial edition\n(128 pages, $14.68\nsoftcover, 2013, 978-\n0 - 8 57-19 317- 9 ) by\nCharles Mackay, published\nby Harriman\nHouse.
First published\nin 1841, this classic\nis often cited as the\nbest book ever written\nabout market psychology.\nThis Harriman House edition includes\nCharles Mackay’s account of the three infamous\nfinancial manias — John Law’s Mississipi\nScheme, the South Sea Bubble, and\nTulipomania. These historic episodes show\nthat greed and fear have always been the\ndriving forces of financial markets. With the\nbenefit of hindsight, Mackay was able to\nrecord of a passage of events that was inevitably\nheading for disaster, resulting in a\nwork that is both a thriller and a historical\ndocument.
How To Make Money In\nStocks: Getting Started\n(279 pages, $18\nsoftcover, 2013, ISBN\n978-0-071-81011-1) by\nMatthew Galgani, published\nby McGraw-Hill\nEducation.
This book\nis the latest addition to\nthe How To Make Money\nIn Stocks series begun 25 years ago\nby William J. O’Neil, founder of Investors\nBusiness Daily (IBD) and developer of the\nwell-known CAN SLIM method of investing.\nMatthew Galgani is the co-host of the IBD\nweekly radio show and editor of the IBDextra!\nnewsletter. Galgani’s book provides an\neasy-to-follow plan designed for busy people\nwith a limited amount of time to spend\non investing. In his book, Galgani presents\nbuying & selling checklists; some simple\nweekend and daily routines for investors;\nchart-reading tips; what to consider before\nyou buy a stock; and action steps to get\nstarted quickly."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-65-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-65-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-65-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov31852le,d,"{""minimum-quantity"":""1"",""path"":""ch8a209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:8 (8-9, 52): Letters To S&C by Technical Analysis Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis Inc.
GAPO RANGE INDEX
Editor,
I recently came across\nthe Gopalakrishnan range\nindex (“Gopalakrishnan\nRange Index,” Stocks\n& Commodities, January\n2001). Do you have this indicator\nfor Microsoft Excel? I would be very\nhappy if I could implement it in an Excel\nspreadsheet.
Antonio
The article included a sidebar on how to\nimplement the indicator in Excel (“Calculating\nGAPO With Excel”). Readers\ncan access the article and sidebar in\nthe article archive at our website, www.traders.com.\n—Editor
CODE FOR SWING TRADING STRATEGY\nEditor,\nCongratulations to Sylvain\nVervoort on his wellwritten\narticles (“Indicator\nRules For Swing Trading\nStrategies,” parts 1 & 2,\nMay and June 2013) that do a good job\nof explaining the rules for swing trading.\nI’ve been working on an objective system\nfor futures trading myself. The rules have\nbeen working very well. I would like to\nexpand this to swing trading equities, so I\nam intrigued about what Vervoort has to\noffer. Will he be offering the indicators\nfor the TOS (thinkorswim) platform?\nI look forward to learning more about\nhis system.
Mark
Author Sylvain Vervoort replies:
Code for several charting platforms\nbased on my swing trading strategy\nhas been published in the Traders’ Tips\nsection of the June 2013 issue of S&C,\navailable at the S&C website at www.traders.com in the Traders’ Tips area. If\nTOS is not represented there, you might\ntry contacting thinkorswim regarding\npossibly getting code to use for the\nstrategy."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-8-9-52-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-8-9-52-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-8-8-9-52-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov311leto,d,"{""minimum-quantity"":""1"",""path"":""ch9s209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:9 (10-11): Letters To S&C by Technical Analysis Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis Inc.
STEP CANDLE PATTERN
Editor,
The upstep and downstep\npatterns presented\nin Figures 2 & 3 in\nSylvain Vervoort’s July\n2013 article (“The Step\nCandle Pattern”), [reproduced\nhere as Figures 1 & 2], leave\nme with some questions:
1. All eight have four or five trading days\nillustrated. Are days 1 & 2 important?
2. There was no mention of the candle\n“wicks” (day’s high & low). Are they\nimportant?
3. For both the upstep and downstep,\nwhy do scenarios 1 & 3 as well as 2 &\n4 look the same?
Jim Von der Wische
Author Sylvain Vervoort replies:
1. Days 1 & 2 are not important. I am\nsimply trying to show the lowest low and\nhighest high.
2. For the upstep and downstep pattern,\nthe last candle has to open inside the\nbody of the previous candle; whether\nthere are wicks or not is not important\nfor the pattern.
3. There are some differences. For example,\nin scenario 1 in the upstep pattern,\nthe second-to-last candle represents the\nlowest low. In scenario 3, the lowest low\nis represented by the last candle.
TRADING CONTESTS
Editor,
Is there a back issue that covers any\ntrading contests or that names the best\ntop traders? Have you published any\nratings or do you offer any newsletters\non this? Can you recommend a good\nsource for education on trading stocks,\noptions, and forex, as well as technical\nanalysis? I am trying to source the best\ntraders to follow ideas from.
Lorne
As an educational, how-to magazine, we\ngenerally do not cover contests or rate\nindividual traders. There are several\norganizations unrelated to this magazine\nthat do hold contests and can be found\non the Internet via a search. If it were\nratings on trading systems you seek, we\nmight suggest trying FuturesTruth.com\nor Collective2.com.
As for following other traders, we’ve\nrecently listed some services in our\nmonthly Trade News & Products section\nthat may interest you; you can review\nthat information for followup.
We do publish a Readers’ Choice\nAwards section every year in our Bonus\nIssue, which presents the results of our\nreaders’ votes for their favorite products\nand services across more than 20 categories\nof investing software and services. It does not rate individual traders, but\nit presents a list of services and some\nresources that our readers find useful.\nYou also may be interested in our\nmonthly interviews, in which we get to\nknow a trader or analyst in the field and\nlearn about their approach.
As for education on technical analysis\nitself, simply put, this magazine has been\nthe best source of education on technical\nanalysis since its debut in 1982. We hope\nyou will keep reading to take in all that\nthe technical analysis community has\nto offer by way of this magazine and by\nway of our website at www.traders.com.\nYou can also find leads to many other\neducational resources within our pages\nor at our site. —Editor"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-10-11-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-10-11-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-10-11-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov311trwi1,d,"{""minimum-quantity"":""1"",""path"":""ch9s209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:9 (12-16): Trading Without A Backstop, Part 2 by Anthony Trongone, PhD, CTA, CFP"",""caption-linebreaks"":""Trading Without A Backstop, Part 2 by Anthony Trongone, PhD, CTA, CFP
Stops Ahead
Placing protective stops affects your trading performance\nin good and bad ways. Should you or shouldn’t you use\nthem? Here in part 2 of this series, we take a look.
Despite the consensus of trading literature advocating the\nuse of a protective stop-loss order, so far, this analysis\ndoes not appear to support this statement. In part 1 of my\nstudy published last month in the August 2013 issue of\nStocks & Commodities, I examined the results of taking a\nlong position from 9:30–10:30 am (that is, in the opening hour\nof trading) and the effect of using certain percentage stops.\nHere in part 2, I’ll expand on the earlier analysis.
Background
In the previous study, I took a long position in the spiders\n(SPDR S&P 500 ETF Trust) at 9:30 am, along with a stop-sell\norder at various percentages below this opening (9:30 am)\nprice. If the stop order did not fill, I promptly offset the long\nposition at 10:30 am ET.
The findings in the study I will present here expand the earlier\nanalysis from 743 to 764 trading days (June 1, 2010–June\n12, 2013) to once again obtain the performance results. Since\nmost active traders do not enter into trading decisions blindly,\nI began experimenting using a stop order with various trading\nsystems. Last month in part 1, I ran an analysis using early\nmorning volume (7:30–8:30 volume greater than two million\nshares) to assess the effect on trading the spiders (SPY) in the opening hour. Despite the $3.32 loss in\n165 trading days, when using a 0.25% stop\n(below the 9:30 price), there were just 98\nstop fills but a profit of $2.27. When this\nsame condition was present, a 0.50% stop\n(below the 9:30 price) resulted in 64 stop\nfills, but it produced a loss of -$5.39.
The benefit of applying a stop order to a\nlong position is already questionable; however,\nit gets even more complicated because\nthe question of what percentage to use when entering a protective\nbackstop can make the difference in your bottom line."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-12-16-trading-without-a-backstop-part-2-by-anthony-trongone-phd-cta-cfp-31.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-12-16-trading-without-a-backstop-part-2-by-anthony-trongone-phd-cta-cfp-35.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-12-16-trading-without-a-backstop-part-2-by-anthony-trongone-phd-cta-cfp-36.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov311mili,d,"{""minimum-quantity"":""1"",""path"":""ch9s209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:9 (18–27): The Missing Link, Part 1 by Mircea Dologa"",""caption-linebreaks"":""The Missing Link, Part 1 by Mircea Dologa
Waves & Boxes
The relationship between time and price has a direct\ninfluence on trading profitability. Here’s a look at\nhow you can gain an insight by looking at the euro\nand the Romanian leu.
As traders progress along their learning curve,\nthey begin to clearly observe the influence\nof the time/price relation in identifying the optimal\ntrading setup. In spite of this, some traders — novices\nand experienced — always start the learning process\nwith only price tools and their corresponding indicators,\nthat is, classic technical analysis. Sooner or\nlater, the successful trader will reach an advanced\nstage where learning the importance of time and its\nusefulness becomes a priority in the quest to further\ndevelop and acquire the much-sought-after professional\ntrading techniques.
The evolution of a trader
In the early stages of becoming a trader, we are all\nmotivated to learn tons of techniques and indicators in\norder to perform the most profitable trades. We quickly\nobserve that if the right approach isn’t selected, we\nare in great danger of losing our trading capital.\nOver time, I began to realize that studying and applying\nElliott waves, Gann methodology, and mapping\nmultiple time frames (top-down analysis) are\na prelude to any final decision-making. Once this is\ndone, the next step, which is the detailed study of the\nspecific market you are trading, comes naturally. You\ncan then identify the optimal time frame setup that\nworks for you, one that consists of the most efficient\nelements of modern technical analysis.
Establishing the trading context
Before I describe my time & price technique, I will\nbriefly present and revisit some of the basic elements\nthat contribute to its performance.
In spite of the so-called subjective labeling that\nmany traders give to Elliott waves, I have been successfully\nusing them for more than 20 years. Many\ntraders misunderstand the usage of these waves\nmainly because of the lack of a probabilistic approach.\nWithout probability, there wouldn’t be a successful\ntrading technique — classic or modern.
Your profitability is influenced and coordinated\nby the time & price relationship. You cannot label\nany type of pattern without first verifying several\nelements:"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-18-27-the-missing-link-part-1-by-mircea-dologa-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-18-27-the-missing-link-part-1-by-mircea-dologa-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-18-27-the-missing-link-part-1-by-mircea-dologa-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov312muup,d,"{""minimum-quantity"":""1"",""path"":""ch9s209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:9 (28-30): Muscle Up Those Averages by Ajay Pankhania"",""caption-linebreaks"":""Muscle Up Those Averages by Ajay Pankhania
Back To The Basics
Trading the currency markets means you need to be well aware of global macro\nand micro economic variables. But when it comes to trading these markets, simple\nis better. Find out more through this example of the EUR/USD currency pair.
Moving averages, although simple, are sometimes underused. In extreme market\nmovements, moving averages have a smoothing effect. They are also vital and\nfundamental to the foundations of indicators we know today, one of them being\nthe moving average convergence/divergence (MACD).
Bull or bear?
There are many types of moving averages. Two of the more popular ones are the simple\nmoving average (SMA) and exponential moving average (EMA). SMAs are calculated\nby adding the price of the financial asset and dividing it by the number of observations\n(See sidebar “Calculating Moving Averages” on page 30). In other words, you can\ncalculate a simple moving average as you would normally calculate an average. EMAs are a bit more complex and require more\ncomputation. Nevertheless, you can use\nboth these moving averages to see who\nhas more muscle in a trend — the bear or\nthe bull. Both moving averages provide\na floor (support) or a roof (resistance) to\na financial asset.
Are they converging\nor diverging?
The MACD is a popular indicator; it\nis the difference between two EMAs.\nIf you take an average of a smaller\namount of data, your average will be\ngreater. In this case, it would apply to\na faster moving average (50-day) and\nthe opposite would happen for a larger\nset of data (slower moving average,\nthat is, 200-day). It would be the difference\nbetween these two averages (see\nsidebar “Calculating MACD” on page\n30). The signal line is the average for\nthe graph; usually a nine-day average\nis used. You can use the MACD to see\nwhether momentum is picking up or\ndeclining — if the MACD has rising\nlows, then momentum is picking up,\nand if it has lower highs, it shows that\nthe security is losing momentum."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-28-30-muscle-up-those-averages-by-ajay-pankhania-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-28-30-muscle-up-those-averages-by-ajay-pankhania-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-28-30-muscle-up-those-averages-by-ajay-pankhania-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov313becu,d,"{""minimum-quantity"":""1"",""path"":""ch9s209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:9 (32-36): Beating The Currency Markets by Azeez Mustapha"",""caption-linebreaks"":""Beating The Currency Markets by Azeez Mustapha
Make It A Graceful Exit
It may seem impossible, but it can be done. Find out how.
Trading with the flow of the markets means entering highreward\nand low-risk settings, and taking a small loss\nif something goes wrong. We often think that a small\nloss will be sustained when trying to pinpoint a turning\npoint in the market, but that may be unrealistic, especially if\nthe supposed turning point becomes spurious. How can you\novercome this challenge by using a few popular indicators?\nHow can you recognize true dips or rallies in the context of an\nongoing trend? How can you recognize a trap that may plunge\nyou against a serious reversal? How can you exit properly and\nsafely? This article will try to answer these questions.
It is well known that buying the dips in an uptrend and selling the rallies in a downtrend offers the best trading probability.\nHence, the strategy discussed here trades pullbacks\nonly (not breakouts).
Some people like to do nothing but trade. They are soldiers,\npure and simple, on the battlefield of the financial markets. For\nthem, trading has become a calling. However, each trader’s\nmindset differs, and studies have shown that most traders spend\nmore time in positions that are showing positive returns.
Indicators and open trades
The market can be in one of these three phases:
* A bull market, where buyers gain the upper hand
* A bear market, where sellers gain the upper hand
* A ranging market, where supply & demand reach\nequilibrium.
Historical data may be adequate to measure past price behavior,\nbut price will do what it wants. It may move up, down,\nor sideways. When we place an order, our portfolio is subject\nto pecuniary uncertainty, and our temperament is also on the\nline. Staying glued to the screen as you monitor open positions\n(for example, when there is negativity) may undermine your\nfortitude. Staring at your screen and wanting a negative position\nto turn positive has nothing to do with what the market\nis really doing. In fact, monitoring your trades 24/5 will only\nentice you to carry out irrational reactions that may untimely\nhave an adverse effect on your trading.
The indicators used for this strategy are the linear-weighted\nmoving average (LWMA) and the commodity channel index\n(CCI). More specifically, these indicators are the following:
* 30-period LWMA
* 50-period LWMA
* 14-period CCI
For details on how to calculate the LWMA, see sidebar\n“Linear-Weighted Moving Average.” The CCI is an oscillator\ndeveloped by Donald Lambert in 1980 to indicate whether a\ntrend is beginning or ending."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-32-36-beating-the-currency-markets-by-azeez-mustapha-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-32-36-beating-the-currency-markets-by-azeez-mustapha-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-32-36-beating-the-currency-markets-by-azeez-mustapha-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov313ossm1,d,"{""minimum-quantity"":""1"",""path"":""faarfr205"",""ysw-page-title"":""Stocks & Commodities V. 31:9 (38-43): Oscillators, Smoothed by Sylvain Vervoort"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-38-43-oscillators-smoothed-by-sylvain-vervoort-35.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-38-43-oscillators-smoothed-by-sylvain-vervoort-36.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-38-43-oscillators-smoothed-by-sylvain-vervoort-37.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov313ossm,d,"{""minimum-quantity"":""1"",""path"":""ch9s209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:9 (38-43): Oscillators, Smoothed by Sylvain Vervoort"",""caption-linebreaks"":""Oscillators, Smoothed by Sylvain Vervoort
The Best Of Both Worlds
In this fifth part of our article series on indicator rules for a\nswing trading strategy (IRSTS), we will introduce an oscillator\nbased on Percent B.
You’re probably familiar with the Percent b (%b, or PB) oscillator\nthat was developed by John Bollinger — it’s derived\nfrom the Bollinger Bands indicator. Here’s how it works:
When the price touches the upper Bollinger Band, then the\noscillator hits 100. If price moves above the upper band, the oscillator\nmoves to +100. When the price touches the lower Bollinger\nBand, then the oscillator hits zero, and if price moves below the\nlower band, the oscillator moves to a negative value.
Here’s how it’s calculated:
Percent b = (Closing price – Lower band) /\n(Upper band – Lower band) * 100
Basic calculation
When I created my zero-lag oscillator (SVEZLRBPercB),\nwhich is based on the Percent b, I used the same basic formula\nas the Percent b. However, before applying the formula, I manipulated the input data I used.
In a July 1997 Stocks & Commodities article, Mel Widner\nintroduced rainbow charts, which is the technique I used to\nconvert the closing price data to a “rainbow” data series and\ngive some extra weight for the less-smoothed data:
rainbow_value =\n(5 * SMA(2)[0] +\n4 * SMA(SMA(2), 2)[0] +\n3 * SMA(SMA(SMA(2), 2), 2)[0] +\n2 * SMA(SMA(SMA(SMA(2), 2), 2), 2)[0] +\nSMA(SMA(SMA(SMA(SMA(2), 2), 2), 2), 2)[0] +\nSMA(SMA(SMA(SMA(SMA(SMA(2), 2), 2), 2), 2), 2)[0] +\nSMA(SMA(SMA(SMA(SMA(SMA(SMA(2), 2), 2), 2), 2), 2), 2)[0] +\nSMA(SMA(SMA(SMA(SMA(SMA(SMA(SMA(2), 2), 2), 2), 2),\n2), 2), 2)[0] +\nSMA(SMA(SMA(SMA(SMA(SMA(S\nMA(SMA(SMA(2), 2), 2), 2), 2), 2),\n2), 2), 2)[0] +\nSMA(SMA(SMA(SMA(SMA(SMA(SM\nA(SMA(SMA(SMA(2), 2), 2), 2), 2),\n2), 2), 2), 2), 2)[0]) / 20;
rainbow.Set(rainbow_value);
Next, I averaged this new rainbow data series with an\nexponential moving average (EMA) by applying a zero-lag method. The idea of smoothing data\nwith less lag and zero-lag techniques\nwas proposed by Patrick Mulloy in\nthe February 1994 issue of Stocks\n& Commodities and by John Ehlers\nin the March 2000 issue. The\ntechnique compensates for the lag\nin moving averages.
Here’s how I created the new data\nseries ZLRB (zero-lag rainbow):
EMA1.Set(EMA(rainbow, smooth)[0]);
EMA2.Set(EMA(EMA1, smooth)[0]);
diff = EMA1[0] - EMA2[0];
ZLRB.Set(EMA1[0] + diff);
Finally, I calculate and plot the\nmodified Percent b formula, but only\nafter applying another smoothing\nstep using triple exponential moving\naverages (TEMA) and weighted\nmoving averages on the zero-lag\nZLRB data series:"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-38-43-oscillators-smoothed-by-sylvain-vervoort-28.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-38-43-oscillators-smoothed-by-sylvain-vervoort-33.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-38-43-oscillators-smoothed-by-sylvain-vervoort-34.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov31466in,d,"{""minimum-quantity"":""1"",""path"":""ch9s209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:9 (44-48, 66): Interview: Forex Forecasting With Vikram Murarka by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Forex Forecasting With Vikram Murarka by Jayanthi Gopalakrishnan
Beyond The Horizon
Vikram Murarka has been forecasting, trading, and hedging currencies since\n1991. Beginning his career as a currency trader at Essar Group, he managed a\nforex exposure of $1.2 billion. In 1996 he founded Kshitij Consultancy Services,\na leading forex risk management advisory firm in India. He regularly writes on\nforex risk management issues, including a series titled “Color Of Money.” He\nhas contributed articles to this magazine as well as to industry journals such\nas the Euromoney Foreign Exchange Handbook (UK), Global Treasury News\n(UK), The Outlook Magazine (India) and in financial newspapers such as the\nHindu Business Line in India. Since 2010, the Reserve Bank of India (RBI) has\nbeen including his currency forecasts in its quarterly Professional Forecasters’\nSurvey, which sometimes serves as an input for policymaking.
Stocks & Commodities Editor Jayanthi Gopalakrishnan interviewed Murarka\nvia Skype and email in mid-July 2013.
Tell us a little bit about yourself.\nHow did you get interested in\nthe financial markets and specifically\nthe forex market?
My getting into the forex market was\nan accident I would say, a bit like Obelix\nfalling into the cauldron of magic potion.\nI was in my first job, in the finance department\nof a large conglomerate — Essar\nSteel — in Mumbai. Initially, I was given\nodd jobs like depositing checks into the\nbank and filing papers.
Slowly, I found myself helping a\ncoworker who used to do the hedge\ntransactions (forward contracts) for the\ncompany, negotiating the rates with the\nbanks. The company had a very large\nforex loan book, some $1.2 billion in\n1991, and the hedges were to mitigate\nthe forex risk on these loans.
I remember she didn't use to file any papers\nor keep any records. The bosses were\nnot very happy about that, of course. I took\nit on myself to build a filing system and\nkeep proper track of the forward contracts\nwe entered into – in those days, it was all\ncalculators and large paper registers. At\none point, I was asked to stand in for her\nwhen she took a marriage leave. But when\nshe returned after a couple of months, I\nwas not asked to discontinue. Rather, they\nreassigned her to another post. Incidentally, she resigned shortly thereafter.\nThe moral of the story: If you want\nto get into forex, file papers.
Going further into history, maybe\nit was destiny. I do remember being\nintrigued by currency rates even\nas a nine-year-old kid and later in\ncollege where I studied economics.\nI remember asking my professor\nwhat determined the currency rates\nbetween different countries. She\nwas flummoxed. I don’t blame her. I am\nsometimes still flummoxed today!"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-44-48-66-interview-forex-forecasting-with-vikram-murarka-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-44-48-66-interview-forex-forecasting-with-vikram-murarka-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-44-48-66-interview-forex-forecasting-with-vikram-murarka-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov314fufo3,d,"{""minimum-quantity"":""1"",""path"":""ch9s209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:9 (49): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
IS GOLD STILL SHINING?
Gold has dramatically underperformed\nrecently. Is this the new norm?
The truth is, there is nothing normal\nabout markets or trading them. The\ncurrent environment encompasses\nmarket sentiment and volatility levels,\nbut tomorrow could be dramatically\ndifferent. Accordingly, what you assume\nto be the norm won’t necessarily carry\ninto the future.
Since posting an all-time-high in September\n2011 near $1,900, the asset class\nonce revered as a safe haven has been\ntearing holes in investment portfolios.\nJust as traders and investors were willing\nto jump on gold’s bullish bandwagon,\nthe speculative community has turned\non the yellow metal with vengeance.\nNonetheless, at the precise time gold\nfelt most bullish a few years ago was the\nexact time it was topping out. We feel\nlike the eventual bottom in gold will feel\nthe same; the moment in which the bulls\nare desperate for relief and the bears are\nsalivating for yet another new low will\nbe the point at which a magnificent price\nreversal will be possible. At the time of\nthis writing, we were assuming this scenario\nwould be looming within the July\ntime frame. Once the tides turn, the pain\nfelt by the latecomer sellers, or simply\nmarket chasers, will be fierce.
If you've been reading this column\nover the years, or have followed our\nnewsletters, webinars, or other commentary,\nyou are likely aware that we\nare not necessarily believers in the gold\nstory. We are quick to remind investors\nthat gold has its limitations as an investment\nproduct. It doesn't pay a dividend\nor a coupon payment, and, aside from\nthe value humans place on it, it isn't\nworth much. After all, it is too soft of\na metal to be used for most industrial\npurposes. If it weren't for our obsession\nwith history and the gold standard, it\nwould be just another element on the\nperiodic table. Even so, when it comes\nto the financial markets, perception often\ngoes much further than reality does. Accordingly,\nwe feel as though speculators\nwill eventually fall back in love with the\nidea of hedging inflation and economic\nrisk with gold."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-49-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-49-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-49-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov315prre3,d,"{""minimum-quantity"":""1"",""path"":""ch9s209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:9 (50-53): Product review: TradingMarkets Live Screener by Donald W. Pendergast Jr."",""caption-linebreaks"":""Product review: TradingMarkets Live Screener by Donald W. Pendergast Jr.
THE CONNORS GROUP, INC.
10 Exchange Place, Suite 1800, Jersey City, NJ 07302
Phone: 973 494-7311 or\n888 484-8220
Internet: www.tradingmarkets.com
Email: info@tradingmarkets.com
Product: Stock-screening tool
Price: $49.94 per month or $495 for\nan annual subscription
Stock and ETF screeners aren’t a\nnew concept; there have been many\non the market for some time now.\nSome come as part and parcel of trading\nplatforms, and others are offered as\nstandalone applications that can run on\nyour computer or in a web browser. Some\nspecialize in fundamental data such as P/E\nratios, earnings growth rates, return on\nequity, and other key financial data, while\nothers focus solely on the analysis of\ntechnical data such as moving averages,\noscillators, relative strength rankings, and\nvolatility, among others. One of the most\ninteresting and useful of the technicalsonly\nonline stock and ETF screeners\nis offered by TradingMarkets.com. It’s\ncalled the TradingMarkets Live Screener\nand is available on a monthly or annual\nsubscription basis. The TradingMarkets\nLive Screener enables subscribers to\nanalyze key technical and statistical\ndata in real time on a universe of the\n3,500 most liquid US-traded stocks and\nETFs. Leveraged and nonleveraged ETFs\ncan also be utilized in all of the various\nscreening configurations offered within\nthe product (Figure 1).
Let’s get a general overview of what\nit is and what it can do, and then look at\nseveral hypothetical examples of how it\ncan be put to potentially profitable use\nby different types of technical traders in\nthe stock/ETF markets."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-50-53-product-review-tradingmarkets-live-screener-by-donald-w-pendergast-jr-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-50-53-product-review-tradingmarkets-live-screener-by-donald-w-pendergast-jr-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-50-53-product-review-tradingmarkets-live-screener-by-donald-w-pendergast-jr-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov315exyo2,d,"{""minimum-quantity"":""1"",""path"":""ch9s209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:9 (54): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
CURRENCY OPTIONS
As I travel the world speaking at various\nconferences, at some point the discussion\nusually turns to the world markets. When\nI broach the currency markets, the top\ntwo questions usually are: How can a\ntrader profit from changes in currency\nvalues, and second, are there options in\nthe currency markets? The answer to the\nfirst question can be best answered by the\nvarious articles on forex that may be found\nelsewhere in this issue or in other issues\nof this magazine, so I’ll concentrate on\nthe types of options that are traded in the\ncurrency markets. The good news is there\nare indeed options that trade on currencies,\nbut there are differences between\nthese and options in other markets, so\nit’s good to understand them all before\ndetermining what is right for you. Here,\nI’ll discuss a few of them.
Currency options in your equity account:\noptions on currency ETFs
You don’t have to be a futures or forex\ntrader to hedge or speculate on currency\nprices. There are several ETFs in the\nequity markets that correlate directly with\nforeign currencies. The products listed in\nFigure 1 are known as CurrencyShares\nissued by Guggenheim Investments and\nare listed on the NYSE. These Currency-\nShares are exchange traded funds (ETFs)\nthat closely track the spot currency vs.\nthe US dollar. They are similar to most\nstandard ETFs in that you can buy and\nsell these in units, just like shares of a\nstock from your brokerage account. Buying\nshares means that you are expecting\nthe foreign currency to rise against the\nUS dollar. Conversely, shorting currency\nshares means you are expecting the US\ndollar to rise against the foreign currency\nin the pair.
Options on CurrencyShares are available.\nThese are standard-vanilla option\ncontracts, meaning that one contract\ncontrols 100 shares, just as with an equity\noption, and come with strikes and\nexpiration dates that can be entered and\nexited any time until expiration. As of\nthis writing, CurrencyShares have decent\nliquidity, especially for the position trader\nwho looks to hold options overnight. For\nmore information on CurrencyShares and\noptions, visit www.etfdb.com or www.\nnyse.com."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-54-explore-your-options-by-tom-gentile-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-54-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-54-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov315trti4,d,"{""minimum-quantity"":""1"",""path"":""ch9s209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:9 (55-61): Traders’ Tips by Technical Analysis Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis Inc.
For this month’s Traders’ Tips,\nthe focus is Sylvain Vervoort’s\narticle in this issue, “Oscillators,\nSmoothed.” Here we present the\nSeptember 2013 Traders’ Tips\ncode with possible implementations\nin various software.
Code for NinjaTrader is already provided in Vervoort’s\narticle. Subscribers will find that code at the Subscriber\nArea of our website, www.Traders.com. (Click on “Article\nCode” from the S&C menu.) Presented here is an overview\nof possible implementations for other software.
Traders’ Tips code is provided to help the reader implement\na selected technique from an article in this issue.\nThe entries are contributed by various software developers\nor programmers for software that is capable of customization.
Readers will find the September 2013 Traders’ Tips\ncode and formulas at our website, Traders.com, in the\nTraders’ Tips area. Here, you can read some discussion\nof the technique’s implementation by the Traders’ Tips\ncontributors as well as some example charts.
To locate Traders’ Tips at our website, click on the link\nfrom our home page, or use our site’s search engine."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-55-61-traders-tips-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-55-61-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-55-61-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov316qaby,d,"{""minimum-quantity"":""1"",""path"":""ch9s209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 31:9 (62): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
SEASONALITY
I was chatting with a group of traders the day while visiting friends in Chicago. We discussed all sorts of things, and after a couple of beers, the conversations focused on a couple of distinct topics. The first one was something I have not heard of before -- seasonality. At first I assumed that they were perhaps referring to the Christmas season for retail stocks, or even the travel season for the leisure industries like hotels and airlines. After a few minutes I was told that seasonality occurs every month in the markets, and many times, twice a month. Can you help me understand what this phenomenon is? Anything you can share will be appreciated. -- Jacko6719"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-62-q-a-by-don-bright-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-62-q-a-by-don-bright-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-31-9-62-q-a-by-don-bright-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov321beof,d,"{""minimum-quantity"":""1"",""path"":""january2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:1 (10-14): The Benefit Of Hindsight by Ashot Hakobyan"",""caption-linebreaks"":""The Benefit Of Hindsight by Ashot Hakobyan
It All Makes Sense
Find out how a hypothetical ideal trader who has the\nbenefit of hindsight can help you make everyday trading\ndecisions.
At every stage of each trade, from the initial market scan\nto look for trade opportunities, to the timing and sizing\nof the entries, to the continuous trade management,\nall the way to the final closure, a discretionary trader will be\nmaking decisions continuously. A system trader, on the other\nhand — after creating a system — will have those decisions\nmade for him automatically.
Decision-making in discretionary trading often poses complex\nproblems, especially during the initial stages. That’s when\ntraders have to make intelligent choices among the myriad of modern financial markets and instruments and combine them\nin clever and innovative ways to generate profitable trading\nopportunities.
The ideal trader
It is fair to say, however, that no matter how complex the\nchoices are, discretionary traders will always aim to maximize\nthe expected profit while maintaining sustainable levels\nof risk. These criteria can be quantified using one of the\nfew existing market theories and models. For instance, one\nwidely accepted model that approximates market returns by\nnormal (or log normal) random variables is embedded in the\ncommonly used indicator, Bollinger Bands. Another, more\nadvanced Black-Scholes model resulted in a formula that is\nnow routinely used in option pricing for a wide variety of\nfinancial instruments.
I will present a somewhat more pragmatic and simpler\nconcept for trading-strategy evaluation without backtesting,\nwhich I call the Ideal Trader. I use the Ideal Trader concept to\nassist in discretionary trading. Of course, the ideas discussed\nhere can be incorporated in any style of trading, including\nsystem trading or statistical trading, since the focus is on\nthe evaluation of trade performance rather than reasons for\ninitiating a trade. But first, I will start with a brief overview\nof the concept before considering any of its applications.
Unlike real traders, Ideal Trader is a hypothetical trader\nwho is allowed to place his orders at any time in the past. He\ncorrectly places his buy orders at the lows and sell orders at\nthe highs, and in doing so, extracts maximum available profit\nfrom any market."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-10-14-the-benefit-of-hindsight-by-ashot-hakobyan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-10-14-the-benefit-of-hindsight-by-ashot-hakobyan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-10-14-the-benefit-of-hindsight-by-ashot-hakobyan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov321fufo,d,"{""minimum-quantity"":""1"",""path"":""january2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:1 (15): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
STRANGLING FOR PROFITS? (PART 1)
If strangle traders can make money\nregardless of market direction, doesn’t\nit provide the best odds of success?
The term strangle is somewhat ambiguous\nin that it can be applied to long\noptions, short options, and even futures\nstrategies. Accordingly, I feel like this\nquestion is best answered by addressing\nall three approaches. In order to do the\ntopic justice, we’ll need to extend this\ndiscussion to my next two columns in the\nFebruary and March 2014 issues.
We’ll begin with the strategy of buying\noption strangles. This includes the\nsimultaneous purchase of a call and a\nput option with out-of-the-money strike\nprices. If you’re not familiar with options,\na call option is the right to buy the\nunderlying futures contract at a specific\ndate and time in the future at a specific\nprice (referred to as the strike price). A\nput option is simply the right to sell a\nfutures contract at the strike price of the\noption at a specified point in the future.\nBuying a call is a bullish proposition,\nwhile buying a put is bearish. Thus,\nthe purchase of both creates a neutral\nstrategy that anticipates a large move\nin one direction or the other.
Naturally, owning the right to buy or\nsell the underlying futures contract at a\nspecified price in the future comes at a\ncost. Buyers of these options must pay\na premium to the sellers to acquire the\nright. This is the same concept the insurance\nindustry operates on; the insured\npay a premium to the insurer for the right\nto benefits should a certain event occur\nin the future. Most of the time, an event\nthat triggers a claim does not occur and\nthe policy seller (the insurance company)\nkeeps the premium."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-15-futures-for-you-by-carley-garner-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-15-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-15-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov321pran,d,"{""minimum-quantity"":""1"",""path"":""january2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:1 (16-25): Predictive And Successful Indicators by John F. Ehlers, PhD"",""caption-linebreaks"":""Predictive And Successful Indicators by John F. Ehlers, PhD
Distortions And Noise
Have you ever thought about how the high-to-low\nprice swings increase as the time interval increases\non a chart? This tends to create more noise and\ndistorts indicators. Here are a couple of filters you\ncan incorporate into your trading system to smooth\ndata and remove indicator distortions.
Indicators are typically constructed from filters\nof one kind or another. Since the price data basically\nconstitutes a stochastic process, and since\nthe filters can only use historical data and have no\ninsight into future data, there is no such thing as a truly\npredictive indicator. Predictions are usually made by\nother techniques such as extrapolating a trendline,\ncross-correlations such as volume leads price, or in\ncontext with another filter such as a divergence. All\nof these techniques are anecdotal.
In this article, I will show you how to carefully craft\nnovel filters to conquer the vagaries of market data,\nand how to combine them into advanced indicators.\nThen I will demonstrate how even advanced indicators\nfail if they are used in the conventional way. Then,\nusing measured probability density functions, I will\nshow how to make the indicators predictive with a\nhigh probability of success.
Noise
Market data is noisy. The systemic noise arises from\nhundreds, if not thousands, of traders placing trades\nnearly simultaneously that each trader, for a variety\nof reasons, thinks will result in profits. In addition, market data is sampled data rather than continuous\ndata; that is, there is only one data point on the close of\neach day when using daily data. Even if you average\nin the high & low prices, there still is only one sample\nper day. Of course, you can change the sample rate\nusing intraday data, but you are still using sampled\ndata. The result of using sampled data is that there is\nsubstantial aliasing noise several octaves below the\nNyquist frequency. If you prefer, you can think of\nthis other kind of noise as autocorrelation noise. For\ndaily data, the period of the Nyquist frequency is a\ntwo-bar cycle. One octave lower is a four-bar cycle,\nand one more octave lower is an eight-bar cycle.\nAliasing noise swamps the signal for these shorter\ncycle periods, and the only thing that can be done is\nto not even try to use cycle periods where the aliasing\nnoise swamps the signal amplitude.
Aliasing noise is also larger than the signal amplitude\nat even longer cycle periods, but the frequency\nseparation enables filters to reduce or nearly remove\nthe effects of aliasing noise. Simple moving averages\n(SMA) or exponential moving averages (EMA) are\noften used to smooth the data in an attempt to reduce\naliasing noise. The problem with using an SMA or\nEMA is that they are not efficient filters. The only\nway to get more smoothing is to increase the length\nof the moving average, which introduces more lag\ninto the filter."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-16-25-predictive-and-successful-indicators-by-john-f-ehlers-phd-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-16-25-predictive-and-successful-indicators-by-john-f-ehlers-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-16-25-predictive-and-successful-indicators-by-john-f-ehlers-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov322newt,d,"{""minimum-quantity"":""1"",""path"":""january2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:1 (26-31): New Tricks With Old Indicators by Jay Kaeppel"",""caption-linebreaks"":""New Tricks With Old Indicators by Jay Kaeppel
Recycle, Reuse, Repurpose
Traders are always looking for ways to refine their tools.\nHere, we’ll reshape and redesign two familiar, classic\nindicators. The result is something new that could improve\nyour ability to identify oversold buying opportunities.
The more things change, the more they stay the same. Nothing\nnew under the sun. You can’t teach an old dog new\ntricks. All of these well-worn phrases have become well\nworn because they each contain an element of truth. Still,\nthe desire to innovate and create new and more useful tools\nis simply part of human nature. This is especially true when\nit comes to attempting to refine tools to aide us in becoming\nmore successful investors and traders.
Two indicators that have been around for a long time and that are widely used to identify overbought & oversold opportunities\nare the relative strength index (RSI) and the CBOE\nVolatility Index (VIX). The original RSI was developed by J.\nWelles Wilder in the 1970s and can be used on any security.\nThe original VIX was created by the CBOE using options on\nthe ticker OEX. A number of years back, the calculation was\nchanged to use options on the much more heavily traded ticker\nSPX (index options that track the S&P 500 index).
Let’s take these two original indicators and bend them in\nsome new directions to create two new indicators that, when\nused in conjunction, may help improve a trader’s ability to\nidentify oversold buying opportunities.
The basic calculations (RSI and VIX)
Let’s look first at the 14-day RSI created by Wilder so many\nyears ago. The standard formula for calculating a daily RSI value is as follows:"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-26-31-new-tricks-with-old-indicators-by-jay-kaeppel-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-26-31-new-tricks-with-old-indicators-by-jay-kaeppel-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-26-31-new-tricks-with-old-indicators-by-jay-kaeppel-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323weop,d,"{""minimum-quantity"":""1"",""path"":""january2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:1 (32-35): The Weekly Options, Part 1 by John A. Sarkett"",""caption-linebreaks"":""The Weekly Options, Part 1 by John A. Sarkett
A Faster Game For Bigger Returns
They were introduced in 2005 and have gained a strong following.\nHow do you trade them? In this first of two parts, see how one trader\nuses these options.
Options mentor Dan\nSheridan describes the\nparticular appeal of\nweeklys — options that\nexpire each Friday versus traditional\nmonthly options that expire every\nthird Friday — quite simply: “Higher\nyield,” he says, “and less risk — that\nis, if your strategies and tactics are\nsound. That and it suits ‘type A’ personalities\nbetter, with more results\nin a shorter period of time. It’s like\nPac-Man level 5.”
Sheridan leads some 1,500 mentees,\nall trading live, around the globe. The\nnewest and hottest product in the virtual\n“workroom” is this very option\nproduct — the weekly option.
He compares a weekly to a traditional\nmonthly option trader this way:\n“He may place $50,000 in a 40-day\niron condor, with an eye to earn 5%,\nor $2,500. Using weeklys, he could\nallocate $10,000 to a weekly iron\ncondor, and expect to earn the same\n$2,500, but in this case, generating a\n25% return.”
That’s five times the return. Is\nit any wonder that the volume and\nmarket share of weeklys compared\nto all options traded have grown so\ndramatically in recent years?
Sheridan adds that the less-risk part\ncomes from being out of the market\nfor a greater percentage of the time.\n“Many of our traders are putting these\non eight or nine days before expiration\nand are only in the trade two to three\ndays; so at least two days per week,\nthey are usually on the sidelines and\ncan’t get hurt.” He continues, “With\na huge up market for most of 2013,\nmost of our weekly traders are positive\nfor the year, getting better results than\nthose who just stick with monthlys.”"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-32-35-the-weekly-options-part-1-by-john-a-sarkett-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-32-35-the-weekly-options-part-1-by-john-a-sarkett-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-32-35-the-weekly-options-part-1-by-john-a-sarkett-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov32354ou,d,"{""minimum-quantity"":""1"",""path"":""january2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:1 (36-38, 54): Outperform The Market With Sector ETFs by Todd and Steven Winkler"",""caption-linebreaks"":""Outperform The Market With Sector ETFs by Todd and Steven Winkler
The Select Sector Strategy
Here’s a long-term strategy that is similar to the dogs of\nthe Dow strategy, except that it uses Select Sector ETFs.\nFind out how this strategy can be used to outperform the\nS&P 500.
The dogs of the Dow is a well-known investment strategy\nthat was originally introduced in 1991 by Michael B.\nO’Higgins and John Downes in their book Beating The Dow.\nThe dogs of the Dow strategy involves the purchase of equal\ndollar amounts of the 10 Dow Jones Industrial Average (DJIA)\nstocks with the highest dividend yields and holding onto those\ncompanies for exactly one year. At the end of the year, the\nportfolio is adjusted as the cycle is repeated, the goal being\nto outperform the DJIA.
Whereas the dogs of the Dow strategy has proven itself to be viable and robust, we are proposing a similar yet alternative stock\ninvestment method, which we call the Select Sector strategy. It\ninvests in market sector exchange traded funds (ETFs), as opposed\nto individual stocks, in an effort to outperform its broader\nstock market benchmark, the S&P 500 index. This strategy\nmay appeal to investors who are more comfortable investing\nin market sectors as opposed to a relatively small number of\nindividual company stocks as with the dogs strategy, or who think\nthat the Select Sector strategy is simply superior. Our research\nindicates that the Select Sector strategy has indeed been able to\nconvincingly outperform a proxy of its benchmark, the SPDR\nS&P 500 ETF (SPY), as well as the dogs strategy.
The strategy
Our portfolio of candidate ETFs is limited to the nine SPDR\nSelect Sector ETFs underwritten by State Street Global\nAdvisors. The complete list of these ETFs, along with their\nticker symbols and accompanying percentage composition of the S&P 500 index, are given in Figure 1.\nThe nine sectors are as follows: materials,\nenergy, industrial, financial, technology,\nconsumer staples, utilities, health care, and\nconsumer discretionary.
Specifically, our Select Sector strategy involves\nthe purchase of equal dollar amounts\nof the three worst-performing of these nine\nsectors in percentage terms from the prior\nyear and holding them for one year. At the\nend of the year, the cycle is repeated with\nthe portfolio adjusted accordingly. As with\nboth this and the dogs strategy, the thought\nprocess is that there are repeating business\ncycles in which relatively weaker periods\nof stock performance are followed by\nrelatively stronger periods."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-36-38-54-outperform-the-market-with-sector-etfs-by-todd-and-steven-winkler-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-36-38-54-outperform-the-market-with-sector-etfs-by-todd-and-steven-winkler-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-36-38-54-outperform-the-market-with-sector-etfs-by-todd-and-steven-winkler-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323exyo,d,"{""minimum-quantity"":""1"",""path"":""january2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:1 (39): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
NEW TWIST ON AN OLD STRATEGY
Dogs of the Dow is a stock-picking strategy\ndevoted to selecting high-dividend stocks.\nOver time, the dogs of the Dow have yielded\nabout 50% more per year on average than\nsimply buying the Dow Jones Industrial\nAverage (DJIA). The questions are, will\nthis trend continue, and is there safety in\nbuying the dogs in the case that the market\npulls back in the future?
Investing in the dogs of the Dow is relatively\nsimple. After the stock market closes\non the last day of the year, of the 30 stocks\nthat make up the DJIA, select the 10 stocks\nwith the highest dividend yield. The strategy\ninvolves investing equal dollar amounts in\neach stock that qualifies as a “dog.” Then you\nhold these 10 dogs for one year.\nRepeat this task every year. It\ncan’t get any simpler than that.
The safety is in the dividend\nyields, and with the market having\na great year, it’s surprising\nthat there are still great dividends\nto be had. There are a few that\nI like for more than that reason,\nthough. Of the 10 dog stocks,\ntake a look at the cheapest five,\nwhich are called the puppies of\nthe Dow, or the small dogs. They offer a\nlower stock price, and are considered safer\nfor that reason. The investment strategy\nis no different from the dogs of the Dow\nstrategy. Let’s look at the dogs over the past\nyear, as well as their dividend return from\nthe start of 2013.
The 10 stocks listed in Figure 1 are ranked\nby dividend return for the year going forward.\nThe small dogs in the far right column are\nnoted by a yes in their prospective box. And\nthough 2013 was a stellar year for the stock\nmarket overall, the dogs still outperformed!\nAs of this writing, big dogs were returning\n3% more than the DJIA itself, while small\ndogs were returning nearly 8% more for\nthe year."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-39-explore-your-options-by-tom-gentile-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-39-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-39-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov324whar,d,"{""minimum-quantity"":""1"",""path"":""january2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:1 (40-41): What Are You Waiting For? by Jerry Cartwright"",""caption-linebreaks"":""What Are You Waiting For? by Jerry Cartwright
It’s A Mystery
Patience and discipline — two buzzwords in trading. But to be patient, you have\nto know what you are waiting for, and when you know what you’re waiting for, it’s\neasier to be disciplined. Here’s how you can accomplish this feat.
As a trader, I define patience\nas the ability to\nwait for the market to\nmeet your conditions to trade. I\ndefine discipline as the ability to\nsit on the sidelines while you are\nwaiting for those conditions to be\nmet and doing nothing but being a\ncasual observer of the market. That\ntakes a lot of effort.
In order to be patient, you have\nto know what you are waiting for.\nDo you know what you are waiting\nfor, or does every tick in the market\nmean something to you? Every tick\ncould potentially trigger a trade for\nyou. The smaller the time frame, the\nmore noise you will have, which\nmeans the more you will have to\nvisually filter out. That takes discipline\nand patience. When you know\nwhat you’re waiting for — that is, a\nhigh-probability setup — it’s much\neasier to be disciplined. If you have\na loose definition for your setup\nor setups, you will have a tougher\ntime being patient, because a trade,\nno matter what the probabilities\nare, could happen at any time. But\nif you have a clear set of rules or\nconditions that need to be met, it’s\nmuch easier to remain patient and\ndisciplined while letting the market\ncome to you on your terms.
The less, the easier
When you have multiple setups,\nthen you must monitor multiple\nconditions, perhaps even multiple\ntime frames. Mentally, at the end of\nthe day, you will be exhausted from\ntrying to see if any of your setups are\nbeing triggered, and your patience\nwill wear thin. If you have one solid\nsetup with three conditions or less\nthat need to be met, you will have\na much easier time being patient\nand disciplined, and a higher probability\nof securing winning trades.\nKeeping your trading down to one\nor perhaps two setups and keeping\nyour trades down to one per hour\non average will make the waiting\na lot easier."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-40-41-what-are-you-waiting-for-by-jerry-cartwright-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-40-41-what-are-you-waiting-for-by-jerry-cartwright-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-40-41-what-are-you-waiting-for-by-jerry-cartwright-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov324inde,d,"{""minimum-quantity"":""1"",""path"":""january2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:1 (42-47): Interview: Designing Systems With Mike Carr by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Designing Systems With Mike Carr by Jayanthi Gopalakrishnan
What’s Your Edge?
Michael Carr, CMT, is an independent trader, researcher, and writer. He is\nthe author of two investment books, Smarter Investing In Any Economy: The\nDefinitive Guide To Relative Strength Investing, and Conquering The Divide:\nHow To Use Economic Indicators To Catch Stock Market Trends. His articles\nhave been published in this magazine, SFO, Futures, Shares (UK), and Traders\n(Germany) magazines as well as at a number of websites.
He managed money professionally for several years, responsible for investor\naccounts worth more than $200 million, and was co-manager of two mutual\nfunds. He retired from managing money to devote his full-time efforts to research\nand writing about the markets. He is editor of the Market Technicians\nAssociation monthly newsletter and has served on the board of directors of the\nMTA Educational Foundation.
Carr has been a featured speaker at numerous industry events including the\nMoneyShow in Las Vegas and Trader Tech West in San Francisco. He has spoken\nto local chapters of the American Association of Individual Investors (AAII)\nand professionals in the Market Technicians Association, the CFA Institute, and\nthe Financial Planners Association.
Stocks & Commodities Editor Jayanthi Gopalakrishnan interviewed Carr\non October 31, 2013 via phone and email about the components that go into\ncreating an automated trading system.
Mike, what got you interested\nin the financial markets?
I started studying the markets\nwhile I was on active duty in the US Air\nForce. It was the late 1980s and I was\nworking as a computer programmer. It\nseemed to me that it should be possible\nto use a programming solution to project\nwhere market prices were heading using\nthe same logic that we were using\nto project where a missile would head.\nNeither missiles nor markets move in a\nstraight line, and their deviations from\nthe straight line should hold information\nthat can help us understand where they\nwill ultimately end up.
Fairly quickly, I discovered that\nmarkets are much less predictable than\nmovements that are controlled by the\nunvarying laws of nature. Predicting the\nmarkets seemed to be impossible, but I\ncontinued to study the markets and realized\nthat we don’t need to know exactly\nwhere prices are going in order to make a profit — and making a profit is the\ngoal of trading. That was one of the most\nimportant insights I developed. The market\nreally doesn’t care if I’m right or not,\nand I need to focus on making a profit\nrather than being right. Later, I would\nlearn in talking with an old market maker\nthat being right too often actually costs\nmoney. He explained that he made his\nbiggest profits when he was right about\n40% of the time; less than that meant he\nwas taking on too much risk, and being\nright more than that meant he wasn’t\naccepting enough risks."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-42-47-interview-designing-systems-with-mike-carr-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-42-47-interview-designing-systems-with-mike-carr-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-42-47-interview-designing-systems-with-mike-carr-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov324prre,d,"{""minimum-quantity"":""1"",""path"":""january2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:1 (48-51): Product review: FutureSource by Donald W. Pendergast"",""caption-linebreaks"":""Product review: FutureSource by Donald W. Pendergast
INTERACTIVE DATA CORP.
Interactive Data Corporation
32 Crosby Drive, Bedford, MA 01730
Phone: 800 835-7113 or 312 893-6071
Email: info@interactivedata.com
Website: http://FutureSource.com
Product: Market data and analytics
platform available as a web version\nand Windows client version.
Professional energy, metals, and\nagricultural commodity traders\nrequire vast amounts of technical\nand fundamental data to make accurate\nmarket forecasts and to execute their\ndesired trades with lightning speed,\nwithout having to rely on a hodgepodge\nof different technical charting platforms,\nseasonal data providers, weather forecasting\nservices, and real-time commodity\nnews sources. For this special breed of\ninstitutional commodity traders, hedgers, and speculators, all of the technical,\nseasonal, weather, fundamental, and\nnewsfeeds that they require in order to\nget their jobs done with effectiveness and\nprecision is now available in a single,\nweb-based portal called FutureSource\n(FS). Here’s a review of the key features\nand benefits of this innovative commodity\ntrading platform.
Web, cloud, speed, convenience
FutureSource’s web version is identical\nto the downloadable Windows client\nversion, with all your charts, data,\nworkspaces, and so on saved to the\ncloud, thus allowing instant access on\nmobile or desktop environments. I ran\nFutureSource on two different notebook\ncomputers — one a Windows 7 64-bit\nmachine and the other a newer Windows\n8, core i7 64-bit machine, using\na standard DSL Internet connection via\nthe Firefox and Internet Explorer 10\nbrowsers. The data instantly updated\nthe quote lists, and all of the charts\nupdated in a moment’s notice. After\nusing the software for several hours, it\nstruck me that this web-based analysis\nplatform looks, performs, and feels just\nlike any other top-shelf desktop trading/\nanalysis workstation and that the benefits\nof having it all stored on the cloud are\nmanifold: no more Internet updates\nand reboots, no catastrophes if a PC,\nnotebook, or company workstation goes\ndown, superior mobility, and so on. What\nFutureSource has done here is clearly\nthe next phase of transitioning trading/\nanalysis software platforms from a fixed\nworkstation environment to one that is\ninfinitely mobile and accessible, leaving\na ton of hassles in the dust. Expect\nall of the other major players in trading\nsoftware to follow suit, if they haven't\ndone so already."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-48-51-product-review-futuresource-by-donald-w-pendergast-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-48-51-product-review-futuresource-by-donald-w-pendergast-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-48-51-product-review-futuresource-by-donald-w-pendergast-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov325prre,d,"{""minimum-quantity"":""1"",""path"":""january2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:1 (52-54): Product review: Prime Trade Select by Technical Analysis Inc."",""caption-linebreaks"":""Product review: Prime Trade Select by Technical Analysis Inc.
MetaStock
90 South 400 West, Suite 620, Salt Lake City, UT 84101
Phone: sales 800 508-9180;\nsupport 801 265-9998
Email: Sales@metastock.com,\nsupport@metastock.com
Website: MetaStock.com
System requirements: Windows 7\n(Service Pack 1), Windows Vista (SP\n1), Windows XP (SP 3 or higher) Professional\nedition; Intel Core 2 Duo 2.4\nGHz or higher processor; 2 GB RAM\n(4 GB recommended); 750 MB hard\navailable hard disk space; 256 KB upload\nand download Internet connection
Product: MetaStock add-on to help\nidentify trading candidates\nPrice: $499 ($399 with some\npromotions)
Prime Trade Select (PTS) is\nan add-on for version 12 of\nMetaStock that identifies\nhigh-probability trades. Its objective is\nto give you a list of stocks and/or ETFs\nto buy or short. The exit and stop-loss\nstrategies might keep you in a stock for\nseveral weeks or just a day or two. The\ndeveloper of PTS, Chuck Hughes, has\nhad over 25 years of experience trading\nstocks, commodities, currencies, and\noptions. Hughes is known for his trendfollowing\nand option-trading strategies.\nHughes is also the author and/or coauthor\nof several books, including The Weekly\nOptions Advantage: Your Secret For\nSimple High-Profit Trades and Global\nTrend Power System.
Overview
The add-on comes with two explorations,\nindicators to show where exits\nand stop-losses are recommended, two\ntemplates, and two experts. The system\nfirst identifies stocks or exchange traded\nfunds (ETFs) in an uptrend based on\nthe 50-day exponential moving average\n(EMA) being greater than the 100-day\nEMA, or a downtrend based on the 50-\nday EMA being less than the 100-day\nEMA. To confirm the trend, two events\nshould have occurred: for long positions,\nthe current 14-period on-balance volume\n(OBV) needs to be greater than the same\nOBV six months ago, and the stock/ETF\nmust have made a 52-week high within\nthe last six months. The converse would\napply for short positions.
When these conditions are satisfied,\nit becomes a matter of entering your\npositions. For a long entry, you could\nuse Keltner channels, which are created\nby using a 20-day EMA for the middle\nline and two average true range (ATR)\nvalues above and below the middle line\nfor the upper & lower channel lines.\nIt’s the use of the Keltner channels that\nprovides two different approaches within\nPTS — basic and high probability. If\nyou use the basic approach, PTS price\ncan close either on or below the middle\nof the channel, but if you are using the\nhigh-probability PTS, the close must be\nbelow the lower channel line. Another\ndifference that exists between the two\napproaches is that for high-probability\nPTS, the 52-week high is within the last\neight weeks, whereas for basic PTS, it’s\nwithin the last four weeks."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-52-54-product-review-prime-trade-select-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-52-54-product-review-prime-trade-select-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-52-54-product-review-prime-trade-select-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov325qaby,d,"{""minimum-quantity"":""1"",""path"":""january2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:1 (55): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
FIRST, A NOTE OF THANKS
First of all, I would like to thank those\nof you who noticed my absence in the\npast couple of issues of this magazine. I\nthink it’s my first “misses” in the 10 or\n12 years I’ve been writing this column,\nand I thank the staff at S&C for bearing\nwith me while I recuperated. Now on to\nsome questions…
ORDER ROUTING, REVISITED
A while back you wrote about order\nrouting, rebate trading, and how traders\ncan profit from all of this. I wasn’t\ntrading much back then, but over the\nlast couple of years I have increased\nmy shares considerably. I was wondering\nwhether things have changed much.\nAlso, do you know which brokers pass\nthrough these savings?
Regarding routing issues, you are absolutely\ncorrect to verify that your broker\nallows for pass-through revenues (as well\nas pass-through charges, in the interest\nof fairness) that you incur through your\ntrading. In Figure 1, I show some recent\nexamples of some order destinations\nand the amounts involved (thank you to\nGoldman Sachs Execution & Clearing\nfor providing this sampling).
There are literally dozens of destinations\nif you include the dark pools. I’ve\nposted just a short list here to show how\nthe whole process works. This handful\nof ECNs and the NYSE handle a large\npercentage of liquidity."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-55-q-a-by-don-bright-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-55-q-a-by-don-bright-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-55-q-a-by-don-bright-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov325trti,d,"{""minimum-quantity"":""1"",""path"":""january2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:1 (56-60): Traders’ Tips by Technical Analysis Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis Inc.
For this month’s Traders’ Tips,\nthe focus is mainly John Ehlers’\narticle in this issue, “Predictive\nAnd Successful Indicators.”\nHere we present the January\n2014 Traders’ Tips code with\npossible implementations in\nvarious software.
Code for TradeStation is already provided in Ehlers’\narticle. Subscribers will find that code at the Subscriber\nArea of our website, www.Traders.com. (Click on “Article\nCode” from the S&C menu.) Presented here is an overview\nof possible implementations for other software.
Traders’ Tips code is provided to help the reader implement\na selected technique from an article in this issue.\nThe entries are contributed by various software developers\nor programmers for software that is capable of customization.
Readers will find the January 2014 Traders’ Tips code\nand formulas at our website, Traders.com, in the Traders’\nTips area. Here, you can read some discussion of the\ntechnique’s implementation by the Traders’ Tips contributors\nas well as some example charts.
To locate Traders’ Tips at our website, click on the link\nfrom our home page, or use our site’s search engine."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-56-60-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-56-60-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-56-60-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov328leto,d,"{""minimum-quantity"":""1"",""path"":""january2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:1 (8-9): Letters To S&C by Technical Analysis Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis Inc.
ELLIOTT WAVE THEORY and 1-2-3\nwave counts for swing trading
Editor,
I have followed Sylvain\nVervoort’s series\nof articles in Stocks &\nCommodities this past\nyear on his swing trading\ntechnique (“Indicator Rules For Swing\nTrading Strategies (IRSTS),” May–\nNovember 2013). I was wondering what\nhe thinks of Elliott wave theory.
I have read A.J. Frost & Robert\nPrechter’s book Elliott Wave Principle\n(first published in 1985), in which they\nwrite that wave 1 always consists of\nfive moves, as well as wave C, but in\nStocks & Commodities, I’ve read\nabout the possibility of having a wave\nC of three moves. How can Elliott wave\ntheory be reliable if the original Elliott\nwave concepts are “modified” by new\nauthors?
I must say, sometimes this theory\nseems to work, while other times it\ndoesn’t. I think Elliott wave theory is\ngood for stocks that are not too volatile\nand whose “waves” do not overlap\ntoo much. A difficult challenge in\nmodern, computerized, and manipulated\nmarkets!
The 1-2-3 wave count described in\nVervoort’s articles, compared to Elliott\nwave theory, is much easier to apply.\nPersonally, I find that often, wave 3\nretraces 1.618 times 1, at least in the\nexamples I could analyze. But I prefer\nto think about an initial retracement of\n100% of wave 1.
Nicolas
Author Sylvain Vervoort replies:\nI think Elliott wave theory is quite useful. But I think you should apply it mainly to\nan index for an idea of where the overall\nmarket is. Counting impulse waves is\ngenerally not too difficult, but corrections\ncan be long and complicated. Moreover,\nnothing is perfect. You should always allow\nsome margin for\nthe rules. And don’t\nforget that the count is\nfractal; a single wave\nA on a daily chart\nwill probably be an\nabc zigzag wave or a\n12345 impulse wave\non, for example, a\n15-minute chart."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-8-9-letters-to-s-c-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-8-9-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-1-8-9-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov321eqca,d,"{""minimum-quantity"":""1"",""path"":""ch10o2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:10 (10-14): Equivolume & Candlesticks: Together At Last by Richard W. Arms Jr."",""caption-linebreaks"":""Equivolume & Candlesticks: Together At Last by Richard W. Arms Jr.
A Better Way
It’s the best of both worlds. Find out how this new and improved charting tool — the Arms Candlevolume — can help you identify where the strength is in any market.
When the market closes and all the emotions fade away, there remains a small amount of information. It is this information that is the ammunition of technical analysts. Strip away earn-ings, dividends, company news, or crop reports and weather forecasts and all the other myriad of influ-ences, and we are left with the truth, which is reflected in just five simple pieces of information. They are:
• Open
• Closen High
• Volume
• Low
THE POWERFUL FIVE
Everything else is external information that has been run through the minds of millions of participants and distilled to the final output, and it is all that we know. It is the interpretation of those five simple pieces of information that constitute the true foundation of technical analysis. Trendlines, gaps, consolidations, flags, and so on all are just patterns formed by those few pieces of information and their interrelationship.
Depicting the data, therefore, becomes important. What you want is the most understandable and easily interpreted graphic method of including as much of the data as possible in a single entry or group of entries. It has to make the data apparent and clearly comparable."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-10-14-equivolume-candlesticks-together-at-last-by-richard-w-arms-jr-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-10-14-equivolume-candlesticks-together-at-last-by-richard-w-arms-jr-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-10-14-equivolume-candlesticks-together-at-last-by-richard-w-arms-jr-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov32137tr,d,"{""minimum-quantity"":""1"",""path"":""ch10o2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:10 (16-19, 37): The Trouble With Triangles by Thomas Bulkowski"",""caption-linebreaks"":""The Trouble With Triangles by Thomas Bulkowski
For Better Or For Worse
Chart patterns are like children: Some behave better than others. Triangles — ascending, descending, and symmetrical — are seductive because their shape can signal the breakout direction, but they can be difficult to trade well. Let’s discuss them in order, starting with ascending triangles.
ASCENDING TRIANGLES
In Figure 1 you see an example of an ascending triangle in red on the daily scale. Price bumps up against a ceiling of overhead resistance and gets repelled time after time, forming a flat top. A line joining those tops is horizontal or nearly so.
The bottoms, however, make higher valleys. That means a trendline connecting the valleys will slope upward. The minor highs touch the top trendline several times (points 1 to 3) and minor lows touch the bottom trendline often too (points 4 to 7). Look for price to touch each trendline at least twice, preferably three or more times. The two trendlines join at the triangle’s apex.
For all triangles, price must cross the pattern, bouncing from top to bottom, filling the white space with movement. Do not cut off a rounded turn and call it an ascending triangle. The upper left inset of Figure 1 shows an example of what not to do. Cutting off the rounded turn (the black line is price) and calling the result an ascending or descending triangle (for convex turns) is a common mistake."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-16-19-37-the-trouble-with-triangles-by-thomas-bulkowski-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-16-19-37-the-trouble-with-triangles-by-thomas-bulkowski-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-16-19-37-the-trouble-with-triangles-by-thomas-bulkowski-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov32237de,d,"{""minimum-quantity"":""1"",""path"":""ch10o2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:10 (20-25, 37): Demystifying Support & Resistance, Part 4 by Sylvain Vervoort"",""caption-linebreaks"":""Exploring Charting Techniques
Demystifying Support & Resistance, Part 4 by Sylvain Vervoort
The term support & resistance comes up often when discussing price charts. But when is a support level really a support, and when is a resistance level really a resistance? In this article, I will look at the static and dynamic price support & resistance levels.
PRICE SUPPORT & RESISTANCE
Bullish trends take place because of the failure of resistance levels. But at the same time, most bullish trends end at a resistance level. In a bear trend, most support levels fail, but more often than not, bear trends end at a support level.
When do you know a bullish trend has begun? Generally speaking, there are four steps in a bullish reversal. The first is that price has to reach a bearish downtrend support, retracement, or price target. Next, there is an upward breakout of a downward channel or a flat trading range. The third step is the formation of a higher bottom. The last step is the occurrence of a higher high. The order of these steps may differ.
These four steps are depicted in the chart of the 30-minute emini futures in Figure 1. At point 1 price finds static support at the level of the previous lows. At point 2 it breaks above the trading range and out of the downward channel. At point 3 there is a higher low, and at 4 the last high is broken."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-20-25-37-demystifying-support-resistance-part-4-by-sylvain-vervoort-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-20-25-37-demystifying-support-resistance-part-4-by-sylvain-vervoort-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-20-25-37-demystifying-support-resistance-part-4-by-sylvain-vervoort-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov322alme,d,"{""minimum-quantity"":""1"",""path"":""ch10o2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:10 (26-31): An Alternative Methodology by Scott Hathaway"",""caption-linebreaks"":""It’s All Geometry!
An Alternative Methodology by Scott Hathaway
Geometric technical analysis is something that technical analysts have been slow to embrace. Here’s a look at how it can be effectively applied to your trading. Who knows; you may find it worthy of consideration.
Geometric charting is one of the most effective charting approaches available to any technical analyst or trader. It is capable of accurately identifying highs and lows by revealing hidden support & resistance (S/R) levels and time extensions, channels, circles, and other shapes, and yet still has considerable room for development.
But despite these merits, sadly, it has always been on the outskirts of traditional technical analysis. This is probably due to its often improvised, creative, and right-brained nature; one that’s not easily subjected to rigorous backtesting. However, it is my sincere desire to see geometric charting gain prominence as the public’s interest in technical analysis continues to grow."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-26-31-an-alternative-methodology-by-scott-hathaway-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-26-31-an-alternative-methodology-by-scott-hathaway-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-26-31-an-alternative-methodology-by-scott-hathaway-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323inoc,d,"{""minimum-quantity"":""1"",""path"":""ch10o2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:10 (32-37): Introducing The “Open Collar” by Jay Kaeppel"",""caption-linebreaks"":""To Close Or Not To Close?
Introducing The “Open Collar” by Jay Kaeppel
Options can be used in many ways in an effort to hedge existing stock positions and/or to generate additional income from a stock portfolio. Options are ideally suited for both tasks and offer investors a great deal of flexibility. The purpose of this article is to help you to understand a relatively little-known hedging strategy that I refer to as the “open collar,” which combines the best parts of several other commonly used hedging strategies while also limiting some of the negatives associated with these alternatives.
STANDARD APPROACHES TO HEDGING WITH OPTIONS
The standard approaches to using options to hedge an existing stock position are:
• Selling covered calls
• Buying puts
• Applying a “collar” — this involves a combination of selling calls and buying puts.
I’ll look at these possibilities individually as a leadup to discussing the open-collar strategy. For the purpose of illustration, I will assume that an investor/trader is presently holding a position of 500 shares of Cisco Systems (CSCO). Looking at Figure 1, you can see that CSCO has enjoyed a strong advance in price over the past year. I will also assume that due to recent divergences in the moving average convergence/divergence (MACD) and relative strength index (RSI) following a strong advance, if you are holding a long position in the stock, you will be concerned that CSCO may experience a pullback in the near term. However, instead of selling your stock shares, you may want to look for a way to temporarily hedge this stock position using options."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-32-37-introducing-the-open-collar-by-jay-kaeppel-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-32-37-introducing-the-open-collar-by-jay-kaeppel-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-32-37-introducing-the-open-collar-by-jay-kaeppel-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323inst,d,"{""minimum-quantity"":""1"",""path"":""ch10o2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:10 (38-43): Interview: Steve Ruffley Of iView Charts by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Bobbing Through The Markets
Steve Ruffley Of iView Charts by Jayanthi Gopalakrishnan
Steve Ruffley has been involved in the finance and trading arena for more than a decade. When it comes to trading, there’s not a lot he hasn’t done. He has traded his own account on some of the biggest trading floors in Europe, invested for high-net-worth individuals at PriceWaterhouseCoopers, mentored, and managed risk for traders at Refco. He also ran the live trading floor at Schneider’s.
Ruffley is CEO of www.iViewcharts.com, Chief Market Strategist at www.Intertrader.com, and creator of www.TraderMaker.com and TraderMaker Pro software. He is author of The Ruff Guide To Trading (due to be published in late 2014).
In his educational courses, he has presented more than 550 live webinars and 40 consecutive nonfarm payroll (NFP) trades. For the last three years, he has held weekly trading clinics at www.FXstreet.com.
Stocks & Commodities Editor Jayanthi Gopalakrishnan spoke with Steve Ruffley on June 12, 2014 about the importance of setting expectations before trading, and how he looks at charts.
Steve, tell us a little about yourself and how you got interested in the financial markets.
While at PriceWaterhouseCoopers (PwC), I was involved in investing large sums of money for wealthy clients, and by the end of my short time there, we had placed over £80m worth of investments. After 9/11 [the date of the terrorist act at New York’s World Trade Center in 2001], the market had a crash, and PwC decided to close its investment arm. I was offered redundancy. At that time, I happened to take a trip to Gibraltar.
While in Marbella near Gibraltar on a night out, I met a bunch of guys all driving Ferraris, so I got into a conversation with them. It turned out they were traders who had recently moved to Gibraltar. The rest, as they say, is history. I applied for a job, and after a month of training in London, I was a trader with Refco."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-38-43-interview-steve-ruffley-of-iview-charts-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-38-43-interview-steve-ruffley-of-iview-charts-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-38-43-interview-steve-ruffley-of-iview-charts-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov324exyo1,d,"{""minimum-quantity"":""1"",""path"":""ch10o2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:10 (44-45): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
OPTION-TRADING LESSONS FROM THE POKER MACHINE
A few weekends ago, my wife and I, along with some friends, dropped in at the Seminole Hard Rock Hotel & Casino in Tampa, FL for some fun. Let me set the record straight at the start — I haven’t been there in years. It’s not my thing, and since the time I started trading more than 25 years ago, I look at the casinos as a form of entertainment, not for income strategies.
One educational way to study greed and fear is to watch people in casinos. It can be interesting to see what people will do to try to increase their odds of success. They may kiss their chips before betting them, wipe down and pray to the slot machine they are about to pull the lever on, or have their friends guard their spot while they go to the ATM machine to continue to feed their addiction. The couple with whom we visited the casino that weekend experienced a win/loss situation: The wife won a few hundred, while the husband lost thousands. While watching (and playing) the gaming that weekend, I drew some interesting parallels to trading. Courtesy of that visit, here are my top five parallels between trading and video poker."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-44-45-explore-your-options-by-tom-gentile-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-44-45-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-44-45-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov324prre10,d,"{""minimum-quantity"":""1"",""path"":""ch10o2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:10 (46-49): Product review: Chaikin Analytics For Desktop And iPad by Barbara Star, PhD"",""caption-linebreaks"":""Product review: Chaikin Analytics For Desktop And iPad by Barbara Star, PhD
Chaikin Analytics, LLC
37 North Valley Rd., Suite 205, Three Station Square, Paoli, PA 19301
Phone: 877 697-6783 (877-MYPORTFOLIO)
Email: info@ChaikinAnalytics.com
Website: www.ChaikinAnalytics.com
System requirements: Chaikin Analytics for Desktop runs on PCs and Macs inside HTML5-compliant versions of Internet Explorer (IE 10 and above), Chrome, Safari, or Firefox
Product: Subscription-based ratings and research analytics service for stocks, industries, and exchange traded funds (ETFs)
Price: $195/month or $1,950/year; free two-week trial; 30-day money-back guarantee
Chaikin Analytics for Desktop and iPad, developed by well-known researcher and technical analyst Marc Chaikin, provides an online service for traders seeking stocks with the potential to appreciate over the next several months. Equally important, the service identifies those stocks likely to underperform during the same time period.
Perhaps best known for the Chaikin Money Flow (CMF) indicator and other technical indicators found in most charting software, Marc Chaikin also provides institutional-quality stock research and analysis to professional money managers via his company Chaikin Analytics. Less well-known is that the same high-quality analysis is also available to individual traders and investors."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-46-49-product-review-chaikin-analytics-for-desktop-and-ipad-by-barbara-star-phd-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-46-49-product-review-chaikin-analytics-for-desktop-and-ipad-by-barbara-star-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-46-49-product-review-chaikin-analytics-for-desktop-and-ipad-by-barbara-star-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov325trti6,d,"{""minimum-quantity"":""1"",""path"":""ch10o2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:10 (50-54): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is mainly Sylvain Vervoort’s article from the September 2014 issue, “Exploring Charting Techniques: Creating A Trading Strategy, Part 3.” Here we present the October 2014 Traders’ Tips code with possible implementations in various software.
Code for NinjaTrader was already provided with Vervoort’s article by the author. S&C subscribers will find that code at the Subscriber Area of our website, www.Traders.com. (Click on “S&C Article Code” from the homepage.) Presented here is an overview of some possible implementations for other software as well.
Traders’ Tips code is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by various software developers or programmers for software that is capable of customization.
Readers will find the October 2014 Traders’ Tips code and formulas at our website, Traders.com, in the Traders’ Tips area. Here, you can read some discussion of the techniques’ implementation by the Traders’ Tips contributors as well as some example charts.
To locate Traders’ Tips at our website, Traders.com, click on the Traders’ Tips link from our “Home—S&C Magazine” menu at the top of the home page, or scroll down to the “Current articles” section and click on the Traders’ Tips tab."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-50-54-traders-tips-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-50-54-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-50-54-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov325fufo,d,"{""minimum-quantity"":""1"",""path"":""ch10o2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:10 (55-56): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
SO MANY CHOICES (PART 1)
Shopping for a commodity brokerage is overwhelming; what should I be looking for?
Traders tend to spend endless hours researching the markets, but they fail to allocate the proper effort to choosing the right brokerage firm. In my opinion, it is this single decision that might be the most critical determinant of success or failure.
Each trader has a unique set of needs relative to his or her trading style, experience level, account size, and other factors. Thus, there isn’t a blanket answer to this question; nor is the subject black & white.
First, let’s discuss the primary types of brokerage firms, some of the organizational characteristics to be aware of as a consumer, and the pros and cons of each. Next month, we’ll discuss appropriate service levels and trading costs for various types of traders."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-55-56-futures-for-you-by-carley-garner-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-55-56-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-55-56-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov325qaby1,d,"{""minimum-quantity"":""1"",""path"":""ch10o2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:10 (58): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
YEAR-END PLAYS
Mr. Bright, I recall reading in the past about year-end plays in the stock market. I’m assuming one needs to plan ahead for such plays, so I thought I would ask you some questions early enough to help me with this.
First, what is the basic premise of a year-end stock play?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-58-q-a-by-don-bright-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-58-q-a-by-don-bright-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-58-q-a-by-don-bright-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov326bema,d,"{""minimum-quantity"":""1"",""path"":""ch10o2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:10 (61-62): Beating The Market by George Coyle"",""caption-linebreaks"":""Simpler, Logical, Possible
Beating The Market by George Coyle
Is it possible? Here’s a simple trend-following approach that can beat the market over time and should be considered as part of any investor’s plan.
These days, a lot of people are wondering when the stock market will sell off after years of relentless ascent. From a fundamental perspective, there are various compelling arguments that the stock market is on borrowed time and the multiyear bull run is a function of government action and other manipulation, which will ultimately end badly. Yet despite these claims, investing according to the various doomsday scenarios has not been profitable, while staying long has been and (as I write this in July 2014) continues to be very profitable. Still, the questions on the minds of many investors are, “How long can this continue?” and/or “How can I avoid the next crisis?”"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-61-62-beating-the-market-by-george-coyle-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-61-62-beating-the-market-by-george-coyle-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-61-62-beating-the-market-by-george-coyle-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov328leto7,d,"{""minimum-quantity"":""1"",""path"":""ch10o2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:10 (8-9): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
FILE DOWNLOADS FROM S&C?
Editor,
I’ve been a subscriber for many years. First, I tried to log in to your website, but after entering my subscriber number and last name, I wasn’t able to log in. Can you help?
What I’m looking for is the section at your website where I can find download-able Excel spreadsheets and other files. Specifically, I’m looking for files that accompanied John Ehlers’ August 2014 article, “The Quotient Transform.” Can you point me to where I can find that on the Traders.com website? Thanks!
MARK
Cincinnati, OH"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-8-9-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-8-9-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-10-8-9-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov32152wh,d,"{""minimum-quantity"":""1"",""path"":""ch11n2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:11 (10–19, 52): When The Smart Money Fails by Giorgos E. Siligardos, PhD"",""caption-linebreaks"":""When The Smart Money Fails by Giorgos E. Siligardos, PhD
Because… Nobody Is Infallible
The Commitments Of Traders aggregated report is a handy tool for watching the moves of the most significant players in the markets. But what happens when the “smart money” fails? You may be able to gain some insights from the reports. Find out how.
The year 2008 was an important year for stock market analysts, not just because it was one more crash to study but also because it debunked the myth of infallibility of some highly regarded market participants. In this article I will first provide a brief, yet comprehensive, overview of the Commitments Of Traders (COT) aggregated report along with its characteristics and the way most analysts use it. Next I will discuss the commercials’ failure to anticipate the crash of 2008 and the lesson to be learned from their fiasco. Finally, I will provide a short overview of the disaggregated and Traders In Financial Futures (TFF) reports introduced a few years ago by the Commodity Futures Trading Commission (CFTC).
COT BASICS
Each week, the CFTC, an independent agency created by the US Congress to regulate the US commodity futures and option markets, releases the aggregated COT report to the public from its website, www.cftc.gov."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-10-19-52-when-the-smart-money-fails-by-giorgos-e-siligardos-phd-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-10-19-52-when-the-smart-money-fails-by-giorgos-e-siligardos-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-10-19-52-when-the-smart-money-fails-by-giorgos-e-siligardos-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov322prpr,d,"{""minimum-quantity"":""1"",""path"":""ch11n2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:11 (20–24): Price Projections, Part 5 by Sylvain Vervoort"",""caption-linebreaks"":""Price Projections, Part 5 by Sylvain Vervoort
Exploring Charting Techniques
Here in part 5 of Sylvain Vervoort’s “Exploring Charting Techniques” series, he looks at techniques such as measured moves, Fibonacci projections & retracements, and daily pivots to estimate future price levels.
Price projections estimate future price levels. Last month in part 4, I discussed some basic price projection techniques based on support & resistance and trendlines. But there are also other methods to project prices. I’ll start with measured moves.
WHAT IS A MEASURED MOVE?
A measured move is a price projection based on a previous price swing. The idea behind it is that any new price swing is of approximately the same size as the previous swing. For the definition of the swings, I will use my SVEHLZZCandlepattern zigzag indicator that was introduced in my article in the July 2013 issue of StockS & commoditieS. In addition, I will use my 1-2-3 wave count as introduced in my article in the June 2013 issue of Stocks & Commodities as a reference to calculate measured moves."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-20-24-price-projections-part-5-by-sylvain-vervoort-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-20-24-price-projections-part-5-by-sylvain-vervoort-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-20-24-price-projections-part-5-by-sylvain-vervoort-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov32252ex,d,"{""minimum-quantity"":""1"",""path"":""ch11n2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:11 (25, 52): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
THE STARBUCKS/COFFEE CORRELATION
As I have stated on several occasions before here in this column, I am a rules-based trader. I don’t like trading off tips, recommendations, analyst buys or sells, or so on. I like one plus one to equal two before I take a short-term trade. But long term? That’s a different story. I hate to say it, but sometimes I get my best ideas for long-term trades while reading the news or watching TV.
As I write this article, I am hearing a news story that somehow seemed to pass over my desk until now."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-25-52-explore-your-options-by-tom-gentile-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-25-52-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-25-52-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov322swtr1,d,"{""minimum-quantity"":""1"",""path"":""faarfr206"",""ysw-page-title"":""Stocks & Commodities V. 32:11 (26–31): Swing Trading With Momentum On Your Side by Ken Calhoun"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-26-31-swing-trading-with-momentum-on-your-side-by-ken-calhoun-33.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-26-31-swing-trading-with-momentum-on-your-side-by-ken-calhoun-34.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-26-31-swing-trading-with-momentum-on-your-side-by-ken-calhoun-35.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov322swtr,d,"{""minimum-quantity"":""1"",""path"":""ch11n2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:11 (26–31): Swing Trading With Momentum On Your Side by Ken Calhoun"",""caption-linebreaks"":""Swing Trading With Momentum On Your Side by Ken Calhoun
Candles, Cups, Gaps, And Pivots
Seeing a simple breakout may convince you to place a trade, but how do you know if a breakout is really a breakout? Here’s one way you can jump into a trade and not get caught off-guard.
Developing a consistent approach to identifying and trading breakouts that continue in an uptrend after a trade has been placed is a common challenge faced by active traders. Traders may often enter a position based on a simple breakout above new highs, which subsequently consolidates or pulls back, causing stop losses.
Trading breakouts based on simple price action or candle-stick patterns alone runs the risk of buying near a pivot or exhaustion area. Similarly, relying too heavily on complex lagging indicators like moving average convergence/divergence (MACD) crossovers, relative strength index (RSI), or stochastics can generate false positive entry signals and lead to overtrading weak signals."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-26-31-swing-trading-with-momentum-on-your-side-by-ken-calhoun-30.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-26-31-swing-trading-with-momentum-on-your-side-by-ken-calhoun-36.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-26-31-swing-trading-with-momentum-on-your-side-by-ken-calhoun-37.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323trfo,d,"{""minimum-quantity"":""1"",""path"":""ch11n2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:11 (32–34): Trading Forex: Understanding The Basics, Part 1 by Imran Mukati"",""caption-linebreaks"":""Trading Forex: Understanding The Basics, Part 1 by Imran Mukati
Starting Out
In this first part of a new series on foreign exchange trading, you’ll get an overview of the basics of trading currencies.
Forex, foreign exchange, FX — they all refer to the trading of, or exchange of, one foreign currency for another. While the practice began simply as one of many routine banking mechanisms, it has recently evolved into a speculative market — that is, some people and institutions trade currencies strictly to make money.
THE ADVENT OF FOREX MARKETS
From the 19th century until World War I, the economically developed nations of the world adhered to the gold standard. To simplify a complicated issue, a nation’s wealth depended on how much gold it possessed, because the currency of any nation on the gold standard had a set value relative to gold. The British pound, for example, was fixed at the equivalent of 113.00 grains of pure gold, while the US dollar was fixed at 23.22 grains."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-32-34-trading-forex-understanding-the-basics-part-1-by-imran-mukati-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-32-34-trading-forex-understanding-the-basics-part-1-by-imran-mukati-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-32-34-trading-forex-understanding-the-basics-part-1-by-imran-mukati-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323qaby5,d,"{""minimum-quantity"":""1"",""path"":""ch11n2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:11 (35): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
AND NOW FOR THE BASICS
Mr. Bright, I have finally put together enough money to trade live, and I’m now setting up my workplace. I have two computers with multiple screens. I recall that a while back you had some tools and setups that you and your traders were using. Has much of that changed in the last couple of years? I know there are many ways of setting things up, but I was hoping for an update.—J. Keller
Thanks for the question and for reading previous columns. Although I am not sure which specific column you are recalling, I did find enough to get you started. I’ll try to cover the basics to the more complex setups so you can determine what fits your style of trading."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-35-q-a-by-don-bright-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-35-q-a-by-don-bright-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-35-q-a-by-don-bright-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323inba,d,"{""minimum-quantity"":""1"",""path"":""ch11n2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:11 (36–40): Interview: Battling The Futures With Larry Levin by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Battling The Futures With Larry Levin by Jayanthi Gopalakrishnan
Stop, Be Realistic!
Larry Levin is president and founder of Trading Advantage, a firm specializing in trading education. Levin started out over 25 years ago as a runner at the CME futures exchange, then quickly climbed the ranks from phone clerk to desk manager to eventually trading his own account. At the height of his trading career, he averaged between 2,500–3,000 S&P contracts per day trading. Since he recognized early on the inevitable shift away from the open outcry pits to an electronic marketplace, Trading Advantage has made it its mission to teach students to trade online. He has made regular appearances on major financial media outlets including CNBC, Bloomberg TV, and Fox Business News. His daily blog can be found at www.tradewithlarry.com.
Stocks & Commodities Editor Jayanthi Gopalakrishnan spoke with Larry Levin on September 8, 2014 about what it takes to start trading futures.
Larry, we last interviewed you for our January 2007 issue. So what’s been going on with you since then?
We’ve been around for 20 years, teaching people to trade. We’re getting ready to expand again. We now have 61 employees in three different cities."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-36-40-interview-battling-the-futures-with-larry-levin-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-36-40-interview-battling-the-futures-with-larry-levin-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-36-40-interview-battling-the-futures-with-larry-levin-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov32452fu,d,"{""minimum-quantity"":""1"",""path"":""ch11n2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:11 (41, 52): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
SO MANY CHOICES (PART 2)
Shopping for a commodity brokerage is overwhelming; what should I be looking for? (part 2 of 2)
Last month in part 1 of my response to this question, I discussed the various types of brokerage firms along with the pros and cons of doing business with each format. This month, I’ll focus on various levels of service available to futures traders and briefly consider which makes the most sense for typical traders of differing skill and experience levels, as well as accounting for the cost of errors when considering an appropriate commission rate."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-41-52-futures-for-you-by-carley-garner-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-41-52-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-41-52-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov324sldo,d,"{""minimum-quantity"":""1"",""path"":""ch11n2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:11 (42–47): Slow Down: Equity Curve Ahead by Robert Cocchiola"",""caption-linebreaks"":""Slow Down: Equity Curve Ahead by Robert Cocchiola
This One Is Just Right!
The equity curve judges the success or failure of your system. What makes an equity curve good or bad? What does it take to achieve a good equity curve? We’ll take a look.
Technical analysis can lead to successful trading, but only if you have a good equity curve. A good equity curve, like a bad one, is constructed from various parts of your project. The success or failure of your efforts will be revealed in the equity curve, which is the ultimate judge of your creation. Success in trading is not found in the final value of the account.
What makes an equity curve good is the way it indicates steady growth in your account without scary pullbacks. What makes an equity pullback scary? It causes loss of sleep. Your eyebrows start to fall out. You can’t eat because everything tastes like week-old flounder. But most of all, it makes you stop trading and want to kill the friend who convinced you that daytrading was a swell idea for a person as smart as you.
To help avoid those little unpleasantries, here are a few steps you can take."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-42-47-slow-down-equity-curve-ahead-by-robert-cocchiola-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-42-47-slow-down-equity-curve-ahead-by-robert-cocchiola-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-42-47-slow-down-equity-curve-ahead-by-robert-cocchiola-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov324prre11,d,"{""minimum-quantity"":""1"",""path"":""ch11n2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:11 (48–51): Product review: thinkorswim Sharing by Donald W. Pendergast Jr."",""caption-linebreaks"":""Product review: thinkorswim Sharing by Donald W. Pendergast Jr.
TD AMERITRADE, INC. AND AFFILIATES
Website: www.thinkorswim.com, www.mytrade.com
Email: support@thinkorswim.com
Product: Social media sharing tools and online community for thinkorswim users
Price: Free for TD Ameritrade account holders
Once an individual makes the important decision to pursue the goal of becoming a successful trader, chooses a stock/option/forex/commodity broker, and funds his account, he may then find himself faced with some vital questions that, for many newer or struggling traders, could take years to get answered — if at all. In the meantime, new traders may lose so much trading capital that they could end up quitting in disgust and frustration."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-48-51-product-review-thinkorswim-sharing-by-donald-w-pendergast-jr-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-48-51-product-review-thinkorswim-sharing-by-donald-w-pendergast-jr-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-48-51-product-review-thinkorswim-sharing-by-donald-w-pendergast-jr-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov3255860,d,"{""minimum-quantity"":""1"",""path"":""ch11n2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:11 (54–56, 58, 60): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is mainly Sylvain Vervoort’s article in this issue issue, “Price Projections” which is part 5 of his Exploring Charting Techniques series. Here we present the November 2014 Traders’ Tips code with possible implementations in various software.
Code for NinjaTrader was already provided with Vervoort’s article by the author. S&C subscribers will find that code at the Subscriber Area of our website, www.Traders.com. (Click on “S&C Article Code” from the homepage.) Presented here is an overview of some possible implementations for other software as well.
Traders’ Tips code is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by various software developers or programmers for software that is capable of customization.
Readers will find the November 2014 Traders’ Tips code and formulas at our website, Traders.com, in the Traders’ Tips area. Here, you can read some discussion of the techniques’ implementation by the Traders’ Tips contributors as well as some example charts.
To locate Traders’ Tips at our website, Traders.com, click on the Traders’ Tips link from our “Home—S&C Magazine” menu at the top of the home page, or scroll down to the “Current articles” section and click on the Traders’ Tips tab."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-54-56-58-60-traders-tips-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-54-56-58-60-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-54-56-58-60-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov326bofo1,d,"{""minimum-quantity"":""1"",""path"":""ch11n2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:11 (62): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-62-books-for-traders-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-62-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-62-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov328leto8,d,"{""minimum-quantity"":""1"",""path"":""ch11n2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:11 (8–9): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
OPEN NOTE TO READERS
Editor,
I’ve been reading TAS&C since its beginning [in 1982], but lately I’ve seen a tendency for comments to request and stress specific parameters, especially for indicators. I’d like to share my experience in hopes that it will be meaningful to some of the newer technicians. Please note that these are generalizations. There are always exceptions, but exceptions are not the rule.
• An indicator is not a system. Don’t try to make it one. It is a tool to help entry & exit timing.
• There are too many requests for “optimal parameters” and too many authors showing the “best parameters.” There is no such thing as “the best.” There is only “the best” for one example."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-8-9-letters-to-s-c-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-8-9-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-11-8-9-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov321trfo,d,"{""minimum-quantity"":""1"",""path"":""ch12d2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:12 (10-13): Trading Forex: Markets & Trading by Imran Mukati"",""caption-linebreaks"":""Trading Forex: Markets & Trading - Part 2 by Imran Mukati
Want To Be A Currency Trader?
In this second part of a six-part series, we look at the characteristics and trading mechanics of the important global markets that forex traders need to keep an eye on.
For an investor accustomed to trading equities, the forex markets will not be completely foreign (no pun intended), but there are some important fundamental differences between the two. In many ways, the forex market is much simpler than the equity markets, and many of the differences with forex are things that favor the investor. As you’ll see, when it’s time to explore trading strategies, the types of analysis that are customary in forex differ markedly from stocks.
THE MARKET NEVER SLEEPS
You’ll often hear it said of forex that the markets are open 24/7. While that is not entirely accurate, it is nearly so. The truth is that with forex markets located around the world, at least one is typically open at any time. But similar to other financial markets, forex markets are open five days a week, so there is some downtime on weekends."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-10-13-trading-forex-markets-trading-by-imran-mukati-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-10-13-trading-forex-markets-trading-by-imran-mukati-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-10-13-trading-forex-markets-trading-by-imran-mukati-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov321defl,d,"{""minimum-quantity"":""1"",""path"":""ch12d2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:12 (14-21): Detecting Flags In Intraday Charts by Markos Katsanos"",""caption-linebreaks"":""Detecting Flags In Intraday Charts by Markos Katsanos
Flying High
Can you apply flags to intraday charts? Once you do, how can you determine the optimal price target? Here is a system that will help you identify flag formations as well as enter and exit them at the right time.
It's been nine years since I wrote my first article on flags and pennants for this magazine and I still get emails from readers about it. In fact, judging by the amount of emails I’ve received, it has been one of my most popular articles. Some readers asked me at the time if flags and pennants work as well on intraday charts as they do on daily charts. I had no idea if they did, but this gave me a reason to investigate.
Before I proceed with the statistics and test design for this investigation, for the benefit of new readers I will mention a few words about these formations. Flags and pennants can be categorized as continuation patterns because they break out only from the prevailing trend. They usually represent brief pauses in a dynamic market and they are typically seen after a steep, quick move."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-14-21-detecting-flags-in-intraday-charts-by-markos-katsanos-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-14-21-detecting-flags-in-intraday-charts-by-markos-katsanos-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-14-21-detecting-flags-in-intraday-charts-by-markos-katsanos-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov32237ex,d,"{""minimum-quantity"":""1"",""path"":""ch12d2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:12 (21, 37): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
LOOK BEFORE YOU LEAP
As we turn the last page of yet another year behind us, typically we start thinking of the year ahead of us — that would be 2015. When most traders think of the following year, they think long-term. Long-term in the option world could mean anything to anyone, but all option traders agree that LEAPS are a long-term strategy. LEAPS, a product of the Chicago Board Options Exchange (CBOE), stands for Long-term Equity AnticiPation Securities, or long-term option contracts that allow investors to establish positions that can be maintained for up to three years.
Sacrificing gamma when using LEAPS
There are pros and cons to using LEAPS. Let me illustrate these by using a hypothetical example."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-21-37-explore-your-options-by-tom-gentile-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-21-37-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-21-37-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov322prma,d,"{""minimum-quantity"":""1"",""path"":""ch12d2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:12 (22-27): Projecting Market Cycles by Sylvain Vervoort"",""caption-linebreaks"":""Projecting Market Cycles, part 6 by Sylvain Vervoort
Exploring Charting Techniques
Here in part 6 of Sylvain Vervoort’s “Exploring Charting Techniques” series, he discusses a unique way to identify the beginning and end of a market cycle.
There are many ways to approach it and many have tried, but only a handful of techniques work well to identify cycles. In this article, I’ll discuss a unique method that uses trend channels to find the beginnings and ends of cycles.
CHANNEL MOVES
First, let’s look at the chart in Figure 1, which shows an uptrend move on a 30-minute chart of the EURUSD. If you try to draw a trendline or a trend channel on this price chart, you may get frustrated. It may be impossible to draw a channel that covers the entire period displayed on the chart. If you start the trendline from the sharp up move, the corrections will break the possible trendline and there will be long periods with limited trading ranges. In order to create trendlines and channels, you may need to use a different kind of chart."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-22-27-projecting-market-cycles-by-sylvain-vervoort-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-22-27-projecting-market-cycles-by-sylvain-vervoort-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-22-27-projecting-market-cycles-by-sylvain-vervoort-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov322efof,d,"{""minimum-quantity"":""1"",""path"":""ch12d2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:12 (28-30): Effects Of Volatility On Trading by Norman J. Brown"",""caption-linebreaks"":""Effects Of Volatility On Trading by Norman J. Brown
Tranquil Or Stormy?
Can trading results be similar to those of roulette betting? Find out here.
In my 2010 article “Trading Tradeoffs With Risk Vs. Reward,” I pointed out that trading with high values of R (a measure of the odds) and low values of bias (win ratio) leads to larger drawdowns (MDD) compared to that of trading with the converse. That led me to think about whether betting at a roulette wheel would yield similar results. I decided to investigate.
SCALPING OR TRENDING APPROACH?
Roulette offers two opposing approaches, among many other possibilities. One I will term scalping, since it goes for the big win, and the second I will term trending, which is a more sedate (low-volatility) betting style."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-28-30-effects-of-volatility-on-trading-by-norman-j-brown-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-28-30-effects-of-volatility-on-trading-by-norman-j-brown-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-28-30-effects-of-volatility-on-trading-by-norman-j-brown-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov32347qa,d,"{""minimum-quantity"":""1"",""path"":""ch12d2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:12 (31, 47): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
AND NOW FOR THE ADVANCED TOOLS
Last month, I addressed a trader’s question regarding the basics of tools, hardware, software, datafeeds, and the like. I thought I would ask the COO of our firm, Rob Friesen, to follow up with details concerning more advanced tools. His reply follows. I especially appreciate the way he starts off by highlighting the need to develop a trading plan — and follow it. After all, the best widgets in the world cannot overcome lack of planning and discipline.
We at Bright Trading offer our traders several internally developed trading programs to help them with the basics to very advanced systems. I hope you will enjoy the following overview."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-31-47-q-a-by-don-bright-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-31-47-q-a-by-don-bright-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-31-47-q-a-by-don-bright-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323fufo2,d,"{""minimum-quantity"":""1"",""path"":""ch12d2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:12 (32): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
FORECASTING THE ECONOMIC PULSE
What are fed funds futures contracts? Can they be used to predict future Fed moves?
The federal funds futures are derivative contracts written with the target overnight bank lending rate of the Federal Open Market Committee (FOMC) as the underlying asset. Accordingly, contract expiration months are based on scheduled Federal Reserve (“Fed”) meetings, as opposed to the typical quarterly expiration in financial futures. Not unlike any other futures contract, fed funds futures contracts can be bought or sold in any order as a speculative tool to bet on, or hedge, expectations of changes in the Federal Reserve’s target interest rate."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-32-futures-for-you-by-carley-garner-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-32-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-32-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323frgr,d,"{""minimum-quantity"":""1"",""path"":""ch12d2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:12 (32-37): From Greed & Fear To Grow & Protect by Allen Rehert, PhD"",""caption-linebreaks"":""From Greed & Fear To Grow & Protect by Allen Rehert, PhD
A Different Path
When the markets are rallying, little thought is given to protecting your assets. But what happens when the markets turn and start quickly moving down? In this first part of a two-part series, find out how this author follows a set of guidelines to protect his investments.
In November 2004, I wrote an article about using monthly covered calls on the SPDR Dow Jones Industrial Average ETF (DIA). I set the strike price using asymmetry of implied volatility and price reversion to the mean to create a hedge against market declines. This approach worked well during 2005–07, as did most bullish strategies. Then came 2008, which included a market decline. and this exposed significant weaknesses in the strategy. I started anew with a clean sheet of paper and developed a strategy based on nonstatistical rules that targeted 10% annual growth. In this article, I will describe the resulting strategy."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-32-37-from-greed-fear-to-grow-protect-by-allen-rehert-phd-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-32-37-from-greed-fear-to-grow-protect-by-allen-rehert-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-32-37-from-greed-fear-to-grow-protect-by-allen-rehert-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323cabi,d,"{""minimum-quantity"":""1"",""path"":""ch12d2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:12 (38-42): Catching The Big Moves With Harry Boxer by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Catching The Big Moves With Harry Boxer by Jayanthi Gopalakrishnan
Don’t Get Left Behind
Harry Boxer, founder of TheTechTrader.com, has more than 45 years of Wall Street investment and technical analysis experience, including eight years on Wall Street as chief technical analyst with three brokerage firms. Former chief technical analyst and columnist for AmericaInvest.com and winner of the 1995 & 1996 worldwide Internet stock-market trading contest called The Technical Analysis Challenge, Boxer is widely syndicated and a featured guest on many financial programs and websites.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Harry Boxer on September 30, 2014 about how to catch those big moves in the market.
We last interviewed you in 2005. What’s been going on since then?
We’ve been doing great since then. Our website is at an all-time high in terms of subscribers, and my exposure is pretty phenomenal now. I just wrote a book, as you know, and I’ve been a presenter at several expos and shows. I also have been conducting many training seminars."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-38-42-catching-the-big-moves-with-harry-boxer-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-38-42-catching-the-big-moves-with-harry-boxer-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-38-42-catching-the-big-moves-with-harry-boxer-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov324prre12,d,"{""minimum-quantity"":""1"",""path"":""ch12d2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:12 (44-47): Product review: Mish’s Market Minute Premium by Technical Analysis, Inc."",""caption-linebreaks"":""Product review: Mish’s Market Minute Premium by Technical Analysis, Inc.
DATAVIEW, LLC
70 Sparta Ave., Suite 203
Sparta, NJ 07871
Phone: 888 241-3060 or 973 729-0485
email: info@marketgauge.com
internet: http://mish.marketgauge.com
Product: Analysis tools and coaching services
Price: $197/month
Do you want advice from a trading expert? Here’s one way to get it, and when you look at all that you get, you’ll wonder, “How does she do it all?” Michele “Mish” Schneider has more than 30 years of trading experience. She was a former member/trader on the Coffee, Sugar & Cocoa ex-change, NYMEX, and COMEX in New York, as well as a former market analyst for Continental Grain and former floor analyst for Conti-Commodities.
Providing a quick summary of every-thing that you get with Mish’s Market Minute (MMM) Premium can be challenging given the amount of information you receive."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-44-47-product-review-mish-s-market-minute-premium-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-44-47-product-review-mish-s-market-minute-premium-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-44-47-product-review-mish-s-market-minute-premium-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov325trti7,d,"{""minimum-quantity"":""1"",""path"":""ch12d2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:12 (51-55): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Markos Katsanos’ article in this issue, “Detecting Flags In Intraday Charts.” Here we present the December 2014 Traders’ Tips code with possible implementations in various software.
Code for TradeStation is already provided in Katsanos’ article by the author. S&C subscribers will find that code at the Subscriber Area of our website, www.Traders.com. (Click on “S&C Article Code” from the homepage.) Presented here is an overview of some possible implementations for other software as well.
Traders’ Tips code is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by various software developers or programmers for software that is capable of customization.
Readers will find the December 2014 Traders’ Tips code and formulas at our website, Traders.com, in the Traders’ Tips area. Here, you can read some discussion of the techniques’ implementation by the Traders’ Tips contributors as well as some example charts.
To locate Traders’ Tips at our website, Traders.com, click on the Traders’ Tips link from our “Home—S&C Magazine” menu at the top of the home page, or scroll down to the “Current articles” section and click on the Traders’ Tips tab."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-51-55-traders-tips-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-51-55-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-51-55-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov325bofo,d,"{""minimum-quantity"":""1"",""path"":""ch12d2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:12 (58): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-58-books-for-traders-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-58-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-58-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov326whcl,d,"{""minimum-quantity"":""1"",""path"":""ch12d2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:12 (60-62): What Class Of Trader Are You? by Solomon Chuama"",""caption-linebreaks"":""What Class Of Trader Are You? by Solomon Chuama
Make Sure The Shoe Fits
Scalpers, daytraders, swing traders, position traders — they all trade, but they trade differently. Here’s a look at the characteristics of each type.
We all know trading is difficult. One of the reasons it’s difficult is that people have a hard time identifying the trading style that best matches their personality and lifestyle. This is why traders often get frustrated. They end up chasing different trades and initiating trades that go against what they are comfortable with. They may be led by the temptation to make quick money, but in reality, they get in too late or don’t exit on time.
We don’t give much thought to identifying what type of trader we are. We don’t realize that our psychological differences account for the various styles in trading. In this article, I will discuss the different trading styles and hope that it gives you the opportunity to identify the best trading style for your personality."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-60-62-what-class-of-trader-are-you-by-solomon-chuama-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-60-62-what-class-of-trader-are-you-by-solomon-chuama-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-60-62-what-class-of-trader-are-you-by-solomon-chuama-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov3284850,d,"{""minimum-quantity"":""1"",""path"":""ch12d2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:12 (8-9, 48, 50): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis Inc.
SMART MONEY
Editor,
Just read Giorgos Siligardos’ article on using information from Commitments Of Traders reports (“When The Smart Money Fails,” November 2014, S&C) — very interesting. I would like to know if Siligardos blogs, and if so, could I get the link? I searched for it on the Internet but came up empty.
LOUIS STOUCH, Cleveland, OH
Author Giorgos Siligardos replies:
I am glad you found my article interesting. Due to time constrains, I currently update my stock market view on a monthly basis or when I expect significant changes in the marketplace. You can check my current view by going to: http://market-calchas.blogspot.gr/ and clicking the “entire stock market” link on the right side. Here is the direct link: http://market-calchas.blogspot.gr/p/blog-page.html."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-8-9-48-50-letters-to-s-c-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-8-9-48-50-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-12-8-9-48-50-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov321dere,d,"{""minimum-quantity"":""1"",""path"":""ch13bis202"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:13 (12–17): The Detrend Reveals The True Trend by Martha Stokes"",""caption-linebreaks"":""Is A Turn Approaching?
We would all like to trade bottoming and topping markets. Here’s one way to do it.
In our modern, automated marketplace, trends can obscure a topping or bottoming formation. Sophisticated new professional side orders have changed how stocks and indexes form tops and bottoms. Many once-common topping and bottoming formations rarely occur in the automated marketplace.
Technical traders need to use alternative analysis tools to properly identify these new patterns. The detrending price oscillator makes it easy and reliable to analyze a cycle of a stock or index to anticipate sudden price action.
THE DETREND INDICATOR
Although the detrending indicator used is called a detrending price oscillator, this discussion goes beyond the normal use of an oscillator and enters the realm of cycle theory.
First, a note here: Cycle theory always uses the “trough to trough” measure to calculate the timeline of a cycle. Peak to peak is never used. This approach provides a more accurate determination of the length of the cycle. Thus, a four- or six-year cycle is trough to trough with one peak between the two troughs (Figure 1)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-13-12-17-the-detrend-reveals-the-true-trend-by-martha-stokes-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-13-12-17-the-detrend-reveals-the-true-trend-by-martha-stokes-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-13-12-17-the-detrend-reveals-the-true-trend-by-martha-stokes-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov321trme,d,"{""minimum-quantity"":""1"",""path"":""ch13bis202"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:13 (19–21): A Trading Method For The Long Haul by Donald W. Pendergast Jr."",""caption-linebreaks"":""A Trading Method For The Long Haul by Donald W. Pendergast Jr.
You can apply this model to any time frame on any equity. The best part is that it’s so simple, anyone can implement it.
Sometimes even a picture-perfect trade setup fails to deliver profits and may even result in a loss. But when you see a convergence of daily chart price dynamics like the one I’ll demonstrate here, the case for a long trade becomes fairly compelling. In Figure 1, you get a closer look at an interesting and attractive long swing entry setup in UGI Corp. (UGI).
If you are a new or struggling trader and still need help in sorting out your ideal trading strategy, consider whether this kind of trading model makes sense to you:
1. You only take long positions when the dominant long-term trend is up — as defined by a 200-period exponential moving average (EMA).
2. You take long positions only when they have completed a proportional pullback/correction against the dominant long-term trend.
3. You only take long positions in stocks that have recently beat their quarterly earnings estimates and/or have a steady trend of earnings growth and positive earnings surprises."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-13-19-21-a-trading-method-for-the-long-haul-by-donald-w-pendergast-jr-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-13-19-21-a-trading-method-for-the-long-haul-by-donald-w-pendergast-jr-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-13-19-21-a-trading-method-for-the-long-haul-by-donald-w-pendergast-jr-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov322inma,d,"{""minimum-quantity"":""1"",""path"":""ch13bis202"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:13 (22–24): Inflation-Adjusted Market Returns by Ron McEwan"",""caption-linebreaks"":""Inflation-Adjusted Market Returns by Ron McEwan
Spread It Thin, Please!
Does inflation explain why markets are higher in dollar value and why they seem to be worth less in purchasing value? Here’s a detailed look.
Say it’s circa mid-September 2012 — the markets are attempting to reach all-time highs again (for the third time since 2000). Also reaching new highs is the price of gas, food, and many everyday living necessities. With the indexes reaching these levels, why does it seem like purchasing value is going down? The talking heads on the business news attribute this to inflation. Does this explain why markets are higher in dollar value and why they seem to be worth less in purchasing value?
MAKING THE ADJUSTMENTS
To answer this question I looked at the markets with an inflation adjustment. It’s not that difficult; all you have to do is enter monthly price data for the index or security of choice. In my example, I used the S&P 500 index data series going back as far as 1871."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-13-22-24-inflation-adjusted-market-returns-by-ron-mcewan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-13-22-24-inflation-adjusted-market-returns-by-ron-mcewan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-13-22-24-inflation-adjusted-market-returns-by-ron-mcewan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov322lito,d,"{""minimum-quantity"":""1"",""path"":""ch13bis202"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:13 (25): Listening To The Market by Danish Kapur"",""caption-linebreaks"":""Listening To The Market by Danish Kapur
Hello, Can You Hear Me?
Are there ways that investors can listen to what the market may be trying to tell us?
Make no mistake about it: When the market is about to change course, it is not going to call you and tell you of its plans. However, there are ways that investors can listen to what the market may be trying to tell us.
What are the signs? Are there any obvious clues that we should pa1y attention to that are signaling a change in the markets? Maybe you’ve encountered some of these situations before: Analysts start talking about how a particular company will do 30 or 40 years from now. People start assuming that a particular company will grow larger than all other companies in its sector combined. Investors start fantasizing that an unprofitable company with outrageously high valuations will soon be generating huge profits. Everyone starts thinking that the conventional wisdom and methods of evaluation no longer work. People start borrowing money at an astonishingly high rate to invest in incredibly overvalued stocks. But here is where you should stop and listen; when these types of scenarios start occurring, it’s a good indication that the market is saying something. Those who continue to ignore its message will most likely soon pay a heavy price."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-13-25-listening-to-the-market-by-danish-kapur-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-13-25-listening-to-the-market-by-danish-kapur-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-13-25-listening-to-the-market-by-danish-kapur-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov32220re,d,"{""minimum-quantity"":""1"",""path"":""ch13bis202"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:13 (26–35): 2014 Readers’ Choice Awards by Technical Analysis, Inc."",""caption-linebreaks"":""2014 Readers’ Choice Awards by Technical Analysis, Inc.
We are pleased to present the Technical Analysis of STOCKS & COMMODITIES magazine 2014 Readers’ Choice Awards (RCA). Each year, we put before our readers a ballot of products and services related to technical analysis and trading. The following pages present the products and services you and your peers chose this year as your favorites.
The Readers’ Choice Awards begins each year with a list of products gathered by the editors of STOCKS & COMMODITIES, with space for write-in votes (given that our list doesn’t claim to be complete). Then, to find out what our readers find to be the most useful for their trading, we ask them to choose their favorite products or the ones they find most useful from various categories by going to our website, Traders.com, and filling out the survey there. After that, we compile the results, just in time for the Bonus Issue you hold in your hands."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-13-26-35-2014-readers-choice-awards-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-13-26-35-2014-readers-choice-awards-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-13-26-35-2014-readers-choice-awards-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323inse,d,"{""minimum-quantity"":""1"",""path"":""ch13bis202"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:13 (36–39): Interview: Seeing The Patterns With Dan Zanger by Matt Blackman"",""caption-linebreaks"":""Interview: Seeing The Patterns With Dan Zanger by Matt Blackman
On Trading, Markets, And Doing What Works
Dan Zanger of Chartpattern.com is a swing trader and technical analyst focused on stocks — and a force in stock trading. He is the world record holder, independently audited, for the largest percent change in a personal portfolio for a 12-month period (and unofficially for an 18-month period). His one-year record between 1998 and 2000 during the tech bubble was a gain of 29,233%. All in all, over time, he was able to turn $11,000 into more than $40 million.
How does he achieve these types of returns? He has spent 20 years studying every type of chart pattern formation imaginable and finding what works. His thrice-weekly newsletter regularly highlights some of these patterns in his stock analyses.
STOCKS & COMMODITES contributor Matt Blackman first interviewed Dan Zanger for this magazine in our August 2003 issue. Catching up with him once more, he spoke with Zanger via telephone on January 12, 2014 to find out how he has fared in the markets in the decade since.
It’s hard to believe it has been more than 10 years since our last STOCKS & COMMODITES interview. Do you still mainly use chart patterns and volume to trade?
A lot has changed since that interview 10 years ago, but I still use the same techniques — chart patterns, price, and volume — to trade, which continue to be very effective. For momentum and swing trades, those techniques are the lifeblood in this type of trading environment, especially for the active Jesse Livermore–type trader. For the longer-term investor or mutual fund, it’s completely different. But for those who don’t have the wherewithal to hire a huge staff, count how many trucks are leaving the factory, and pore over sales reports and hundreds of pages of financial records, there really is no other way. The average Joe just can’t hope to do what institutions do. Chart patterns and volume are the best tools available to the retail and independent professional trader."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-13-36-39-interview-seeing-the-patterns-with-dan-zanger-by-matt-blackman-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-13-36-39-interview-seeing-the-patterns-with-dan-zanger-by-matt-blackman-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-13-36-39-interview-seeing-the-patterns-with-dan-zanger-by-matt-blackman-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov324trus,d,"{""minimum-quantity"":""1"",""path"":""ch13bis202"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:13 (42–44): Trading Using Planetary Movements by Khit Wong"",""caption-linebreaks"":""Trading Using Planetary Movements by Khit Wong
A Different Perspective
Is it possible to achieve market timing via planetary movement? Our first inclination would be that it wouldn’t be possible, but let’s give it the benefit of the doubt. Here’s an easy financial astrology tool you can use to judge for yourself.
Financial astrology, or market timing by planetary movements, is a topic that gives traders complex and mixed feelings. On one hand, it is viewed as a difficult topic to comprehend and perceived as something that has nothing to do with what goes on in the markets. On the other hand, it is worshipped by some traders as an accurate timing tool, but only if you know how to use it properly. In this article, I would like to share one of the easiest financial astrology tools that any trader can try to implement for the sake of seeing whether there is any correlation between astrology and the financial markets."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-13-42-44-trading-using-planetary-movements-by-khit-wong-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-13-42-44-trading-using-planetary-movements-by-khit-wong-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-13-42-44-trading-using-planetary-movements-by-khit-wong-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov328deyo1,d,"{""minimum-quantity"":""1"",""path"":""faarfr206"",""ysw-page-title"":""Stocks & Commodities V. 32:13 (8–11): Developing Your Own Trading Plan by Solomon Chuama"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-13-8-11-developing-your-own-trading-plan-by-solomon-chuama-33.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-13-8-11-developing-your-own-trading-plan-by-solomon-chuama-34.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-13-8-11-developing-your-own-trading-plan-by-solomon-chuama-35.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov328deyo,d,"{""minimum-quantity"":""1"",""path"":""ch13bis202"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:13 (8–11): Developing Your Own Trading Plan by Solomon Chuama"",""caption-linebreaks"":""Developing Your Own Trading Plan by Solomon Chuama
Winning The Battle
Here’s an example of how you can execute your own trading system based on current market analysis.
There’s a saying that if you fail to plan, then you have already planned to fail. What, then, is a trading plan? A trading plan is an embodiment of your trading goals, risk management rules, and your trading system. Sadly, 90% of new traders don’t survive the markets because of haphazard trading. A trading plan is a well-thought-out approach to executing a trading system of your own based on the market analysis in order to limit trading mistakes or losses. Trading plans differ from one trader to another because of different styles of trading. But it’s not enough to develop a trading plan; you also have to be able to stick to it.
In this article, I will provide examples of my goals and of my trading system, on which a trading plan can be based. The goals I set for myself are the motivating factor in my trading. Besides goal-setting, you must have some interest in the business you run. Here were my goals when I started trading:"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-13-8-11-developing-your-own-trading-plan-by-solomon-chuama-30.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-13-8-11-developing-your-own-trading-plan-by-solomon-chuama-36.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-13-8-11-developing-your-own-trading-plan-by-solomon-chuama-37.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov321deof,d,"{""minimum-quantity"":""1"",""path"":""ch2f209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:2 (10-15): Degree Of Complexity by Oscar G. Cagigas"",""caption-linebreaks"":""Degree Of Complexity by Oscar G. Cagigas
Goodness, It Doesn’t Fit
When designing trading systems, it’s easy to keep adding\nparameters or filters. But does the system perform better\nwhen it’s more complex? Here’s how you can keep your\nsystem efficient and only add more when it’s necessary.
Although complex trading systems deliver good insample\nstatistics, they inevitably fail when it comes\nto out-of-sample or real-time trading. In this article, I\nwill present a simple theoretical model to show how important it is to keep complexity low when designing trading\nsystems. As an example, I will show you a Donchian-based\ntrading system that generates favorable in-sample statistics\nwhen its complexity is increased but deteriorates in the outof-\nsample tests as the complexity gradually increases.\nTheoretical model\nI am going to use a simple model that simulates an uptrend\nwith some volatility. The model is as follows:
Price = C1*N + C2*sin(N) (1)
where:
N is the number of bars (the time variable)\nsin is the sine wave function\nC1 and C2 are coefficients that affect the slope\nof the rising price curve.
Basically, equation (1) is the sum of a\nstraight line plus a sinusoidal wave. I have\nassigned the values of 10 and 40 to C1 and C2,\nrespectively. In Figure 1 you can see a graphical\nrepresentation of the price model.
After the price model is defined, I perform\na polynomial interpolation of the model\nwith the degree rising to three (from one).\nPolynomial interpolation finds a polynomial\ncurve of the price variable that goes through\nthe data points. The higher the degree of the\npolynomial, the more accurate.
The idea is to estimate the future behavior\nof the price model using a fit with increasing\ncomplexity. In Figure 2 you see the first,\nsecond, and third degrees of polynomial\ninterpolations of the price model. As you can\nsee, the three approaches look similar.
The goodness of fit R2 can be seen in the\ntable in Figure 3. According to this table, the\nmore complex polynomial, the third degree,\nhas the best fit for the in-sample tests. It has\nthe highest R2 value of 0.799."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-10-15-degree-of-complexity-by-oscar-g-cagigas-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-10-15-degree-of-complexity-by-oscar-g-cagigas-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-10-15-degree-of-complexity-by-oscar-g-cagigas-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov32140st,d,"{""minimum-quantity"":""1"",""path"":""ch2f209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:2 (16-21, 40): Static Option Income Strategies: Do They Work? by Giorgos E. Siligardos, PhD"",""caption-linebreaks"":""Static Option Income Strategies: Do They Work? by Giorgos E. Siligardos, PhD
Myths vs. Facts
If you’re trading options, you’ve probably heard of\nstatic option income strategies. They promise low\nbut almost riskless profits every month by selling\npremiums in up, down, or sideways markets, and\nyou don’t have to make any predictions about the\ndirection or the volatility (implied or actual) of the\nunderlying. Sounds too good to be true, doesn’t it?\nHere’s what you need to be aware of before you start\ntrading them.
Today’s technology and rapid dissemination of\ninformation and the friendlier trading environment\nin derivative products for retail traders\ngave birth to the so-called option income strategies.\nThese are mostly multileg positions in options aimed\nat earning small profits month after month. In their\nmost popular (and extreme) versions, these strategies\napply static, global, and specific entry or exit rules,\neliminating any guesswork about the direction of\nthe underlying.
In this article I will discuss the theoretical background\nof the most widespread of these strategies,\nthe systematic short iron condor (SSIC). I’ll explain\nwhy it became so popular and why the widely touted\nprobabilistic arguments — in theory and in practice\n— used to support it are misleading. Let’s see if it’s\npossible for the average trader to be profitable over\nthe long run when using SSICs.
The SSIC, briefly
The SSIC strategy is based on systematically shorting\niron condor (IC) positions with options that are\nsufficiently out-of-the-money (OTM). A theoretical diagram of a profit/loss graph of a short IC is displayed\nin Figure 1. Such a position is composed of\ntwo vertical credit spreads:
* A vertical credit spread with OTM puts having\nstrikes below the current spot price
* A vertical credit spread with OTM calls having\nstrikes above the current spot price.
All options involved are based on the same underlying\nand have the same time to maturity. The\nunderlying is usually a stock market index (SMI)\nfor the following reasons:
* SMIs move much more smoothly than single\nstocks
* Most options on SMIs are European, which\neliminates the possibility of early execution\nfor the short legs of ICs
* Option markets on large SMIs such as the\nNasdaq 100 (NDX) or Russell 2000 Index\n(RUT) are liquid and their bid/ask spreads\nare significantly narrower than the bid/ask\nspreads of single-stock options."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-16-21-40-static-option-income-strategies-do-they-work-by-giorgos-e-siligardos-phd-30.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-16-21-40-static-option-income-strategies-do-they-work-by-giorgos-e-siligardos-phd-34.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-16-21-40-static-option-income-strategies-do-they-work-by-giorgos-e-siligardos-phd-35.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov322weop,d,"{""minimum-quantity"":""1"",""path"":""ch2f209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:2 (22-26): The Weekly Options, Part 2 by John A. Sarkett"",""caption-linebreaks"":""The Weekly Options, Part 2 by John A. Sarkett
To Adjust Or Not To Adjust
Last month in part 1, we tracked the growth in weekly options\nand presented one trader’s success story trading AAPL\niron butterflies. Here, we look at three more ways to trade\nweeklys.
Sheridan Options Mentoring (SOM) community member\nLeo Andrade trades Apple (AAPL) weeklys but in a\nsomewhat different manner from fellow SOM community\nmember Ed Tulauskas, whom I profiled in part 1.
Andrade puts on his weekly Apple (AAPL) trade (an iron butterfly) on Thursday (eight days to expiration) and Monday\n(four days to expiration). The risk curve of an AAPL iron\nbutterfly is displayed in Figure 1. Currently, he favors the\nfour-day trade because the increased volatility of late in AAPL\nmade holding the longer trade riskier. He puts on his trade\nat-the-money with 20 wide wings, similar to what Tulauskas\ndoes (although the width will sometimes vary depending on\nthe implied volatility of the at-the-money options). His normal\niron butterfly has 30 contracts.
He aims to collect between $8 and $11 credit, depending\non the then-implied volatility. If the initial spread has too\nmuch negative delta, he may add insurance in the form of an at-the-money call in the\nnext expiration. However,\nhe prefers to go into the\nnext trading day slightly\nshort delta. He does a fire\ndrill (a phrase that SOM\nfounder Dan Sheridan\ncoined for a process he\nuses) in the last half hour\nof each day, analyzing\npossible outcomes for\ntomorrow’s open, and taking\nappropriate defensive\nsteps. For example, he\nmay buy one or more nextexpiration\nat-the-money\nputs to keep his delta\nslightly negative, that is,\nhe leans into the pain —\nthe negative vega.
Andrade primarily uses\nnext-expiration puts and\ncalls to control the delta\nof the trade. He will,\nhowever, adjust delta\nhesitantly since the price\nof AAPL has a tendency\nto whipsaw. Since he\nworks from home, he is\nable to watch his trading\nscreen while the market is\nopen, so he uses judgment\nand experience instead of\nmechanical triggers to make adjustments to the original trade.\nHe does set alerts at halfway between the short strikes and the\nbreakeven points but doesn’t necessarily make adjustments\nwhen those points are reached.
Let’s say Apple does move higher. How does Andrade adjust?\nInitially, he prefers to buy a next-expiration call or calls\nto cut the delta at least in half. If the move up is particularly\naggressive, especially if it’s an opening gap, he may buy in\nsome or all of his short calls. When he senses AAPL has run\nits course or if it retraces, he will reestablish the call spread\nin the iron butterfly at the same or higher strikes.
If AAPL approaches his upper breakeven early in the trade\n— for example, Monday or Tuesday — he may roll up his call\nspread three or four strikes, converting the trade into an iron\ncondor (a common adjustment at SOM for many butterfly traders).\nThis adjustment gives a wider range for AAPL to move\nthrough and still stay within the trade’s expiration breakeven\npoints. The drawbacks of this adjustment are:"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-22-26-the-weekly-options-part-2-by-john-a-sarkett-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-22-26-the-weekly-options-part-2-by-john-a-sarkett-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-22-26-the-weekly-options-part-2-by-john-a-sarkett-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov322fufo,d,"{""minimum-quantity"":""1"",""path"":""ch2f209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:2 (27): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
STRANGLING FOR PROFITS? (PART 2)
If strangle traders can make money regardless\nof market direction, doesn’t it\nprovide the best odds of success?
In last month’s column we focused on\nthe advantages, but mostly disadvantages,\nof buying option strangles. This month,\nwe’ll discuss the strategy of selling option\nstrangles, which I believe to offer traders\nmuch better odds of success.
In essence, this is the simultaneous, or\nnear simultaneous, sale of calls & puts of\nthe same underlying futures contract. In\ncontrast to a strangle buyer, who is betting\non the market making a large move\nin either direction, the seller of a strangle\nis speculating on lack of volatility. Rather\nthan paying money up front to place their\nwager, option sellers collect cash (known\nas premium) in exchange for the liability\nof paying off the option buyer should\nthe circumstances warrant it (that is, the\nfutures price is beyond the strike price\nat expiration). Very bluntly, the strangle\nbuyer is betting that something will happen;\nthe seller is taking the bet with the\nassumption that nothing will happen.
This strategy is similar to that of casinos,\nor insurance companies, in that they\nbring in limited revenue in exchange for\nunlimited (or at least large) risks, but they\nhope that over time, the small premiums\ncollected outweigh the lower-probability\npayouts. If you’ve ever played the lottery,\nyou know that your risk is a few\ndollars, but your potential reward could\nbe large; option selling is taking the side\nof the house.
In its simplest form, a short strangle is\na strategy in which the trader believes the\nfutures price of a particular commodity\nwill stay within a specific trading range;\nfor example, a trader who believes crude\noil will trade between $85 and $100 in\nthe near term might sell a strangle with\nthese barriers as the strike prices. In early\nDecember 2013, it would have been possible\nto collect about 85 cents, or $850,\nusing the February options, which at the\ntime had 44 days to expiration. Ignoring\ntransaction costs, the trader gets to keep\nthe $850 if he holds the trade to expiration\nand the underlying futures price is within\nthe strike prices of the strangle, or simply\nabove $85 per barrel and below $100.\nEven if the futures price is beyond one of\nthe strike prices at expiration (mathematically,\nit can’t be beyond both), the trade\ncould possibly be profitable. Because 85\ncents was collected, the breakeven points\nof the trade will be $84.15 ($85 – 0.85)\nand $100.85 ($100 + 0.85)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-27-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-27-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-27-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov32240sm,d,"{""minimum-quantity"":""1"",""path"":""ch2f209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:2 (28-30, 40): Small Range, Big Profits by Robert E. Ross"",""caption-linebreaks"":""Small Range, Big Profits by Robert E. Ross
Small Is Big
Small-range bars are your friends. They’re talking to you. Listen to them.
Strong moves usually occur after low volatility, and low volatility usually shows up\nwith small-range bars (SRBs). These SRBs can expose several profitable trading\nopportunities. In an SRB, the open and close price is almost the same, which suggests that buyers and sellers are almost\nequal in power. But don’t expect\nthis to last for long. When you see\nthe appearance of SRBs on a price\nchart —they’re easily identified on\na candlestick chart — it may mean\nthat a significant price movement\nmay happen soon.
Trend change ahead
When you see these SRBs occur\non a chart, consider them an indication\nthat there’s a strong chance\nthe price trend will soon change,\neither upward or downward. SRBs\nsuggest that buyers are reluctant\nto take price higher and sellers are\nreluctant to take price lower. The\nbars signify a tug of war between\nbuyers and sellers — that is, they\nrepresent indecision by buyers and\nsellers. Candlestick charts depict\nSRBs as dojis, which indicate that\nthe open and close are the same or\nalmost the same. Examples of doji\n(SRBs) candlestick patterns are\nshown in Figure 1.
If they occur near a top, the trend\nchange will usually be downward,\nand if they occur near a bottom, the\ntrend change would usually indicate\nan upturn. SRBs don’t always have\ntails but are sometimes accompanied\nby long tails, which represent\nthe day’s high and/or day’s low. The\nposition of the tail helps you decide\nwhether the buyers or sellers are\nwinning the trading battle for the\nday. If it’s a topping tail, control\nis most likely moving from the\nbuyers to the sellers. If it’s a bottoming\ntail, the control is moving\nfrom sellers to buyers.
And then there’s volume
In addition to being aware of the\nappearance of SRBs, you should\nconsider volume since it will confirm\nor deny price action. Think\nof volume and price as supply &\ndemand — demand will be price,\nand supply will be volume. If\nprice is heading up and volume is\nincreasing, volume is supporting\nprice movement. In other words, supply is supporting demand and the\nupward trend should continue. However,\nif price is rising but volume is\nfalling, it means there is a divergence\nbetween price and volume. Volume\nis telling you that the trend is losing\nsteam and a reversal in price may\nbe imminent. Volume is signaling\nuncertainty at that price level."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-28-30-40-small-range-big-profits-by-robert-e-ross-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-28-30-40-small-range-big-profits-by-robert-e-ross-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-28-30-40-small-range-big-profits-by-robert-e-ross-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323qaby,d,"{""minimum-quantity"":""1"",""path"":""ch2f209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:2 (31): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
The Volcker Rule
I keep hearing so much about the Dodd-\nFrank bill coming into effect soon. Is this\nsomething that will impact your traders?\nHow about retail traders? Any light you\ncan shed on this would be appreciated.
—philkids23
Wow, this is probably one of the toughest\nquestions I have ever been asked.\nOf course we have to wait and see how\nmuch different the trading environment\nlooks when all this gets sorted out and\nimplemented. Here are some thoughts,\nhowever.
One primary portion, the “Volcker\nRule” (named after Paul Volcker, chairman\nof the Federal Reserve under\nPresidents Jimmy Carter and Ronald\nReagan, as well as Chairman of the Economic\nRecovery Advisory Board under\nPresident Barack Obama), attempts to\nlimit how major investment banks and\nbrokers (like Goldman Sachs, JP Morgan,\nBank of America, and so on) can\ntrade and invest their depositors’ money.\nEssentially, as I read it, these big banks\nwill not be allowed to commingle their\nproprietary trading money with their\ndepositors’ money. This may be a good\nthing for our traders, since who wants to\ncompete with these big brokers anyway?\nThe other side of this coin is that this may\ncut down on the daily trading activity to\nsuch an extreme degree that liquidity will\ndry up significantly.
Here is an excerpt from http://www.\nsifma.org/issues/regulatory-reform/\nvolcker-rule/overview/:
The final Volcker Rule included in\nthe Dodd-Frank Act prohibits banks\nfrom proprietary trading and restricted\ninvestment in hedge funds and private\nequity by commercial banks and their\naffiliates. Further, the Act directed the\nFederal Reserve to impose enhanced\nprudential requirements on systemically\nidentified non-bank institutions\nengaged in such activities. Congress\ndid exempt certain permitted activities\nof banks, their affiliates, and non-bank\ninstitutions identified as systemically\nimportant, such as market making,\nhedging, securitization, and risk\nmanagement. The Rule also capped\nbank ownership in hedge funds and\nprivate equity funds at three percent.\nInstitutions have a seven year timeframe\nto become compliant with the\nfinal regulations."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-31-q-a-by-don-bright-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-31-q-a-by-don-bright-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-31-q-a-by-don-bright-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323flbr,d,"{""minimum-quantity"":""1"",""path"":""ch2f209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:2 (32-37): Flatliners Breaking Out by Dirk Vandycke"",""caption-linebreaks"":""Flatliners Breaking Out by Dirk Vandycke
After The Storm
We can’t predict the future, but we can get telltale information from charts. Here’s\none possible setup that gives you an idea about price direction.
As the markets evolve and lead us to believe they are different today than in the\npast, it can be like a breath of fresh air to read one of the classic books on the\nfinancial markets. One book I find useful is Secrets For Profiting In Bull And Bear Markets by Stan Weinstein.\nAlthough this book was published\nin 1988, I feel it is a must-read for\nany self-respecting investor or\ntrader. One of the reasons I like it\nis that it throws out all complexity\nin looking at the markets. It\neven dares to zoom out, looking\nat longer-term charts and goals —\nsomething the newer generation of\ntraders seem to have forgotten in\ntoday’s never-ending arms race for\never more and faster information.\nThat quest for speed at least partly\nsuggests a susceptibility to some\nillusionary control.
The setup I will discuss takes\nWeinstein’s phase model and\nsuperimposes it on my quantified\nsystem dynamics model. My\nsystem dynamics model states\nthat financial markets, like any\ndynamic system, are subject to\ncycles, gravity, inertia, power laws\nand, most important for the setup\nin this article, capacity.
The phase model
Every equity, at various times,\ngoes through one of four phases.\nThe first phase, which Weinstein\nrefers to as the basing area, is\nmore commonly known as the\naccumulation phase. This is where\nthe public quickly loses interest in\na stock or market. In this phase,\nmoney ebbs, resulting in lackluster\nactivity and shrinking volatility\nand with it, more often than not,\nthe waning of liquidity. It is the\ninstitutional long-term investors\nwho accumulate stock during this\nphase, since they are willing to sit\nthings out, often by necessity. They\ntake shares out of the hands of the\ncrowd who throw in the towel and\nwant out.
In the second phase, called the\nadvancing phase or uptrend, the\ncrowd comes back. This may be\ninitiated by marketing efforts of\nthe accumulators from the previous\nphase. In this phase, you’ll\nsee higher lows and higher highs.\nWhen enough money has come\ninto the market, there’s almost nobody left holding cash to pay\nhigher prices. That’s where the heavy\ndistribution of stock from the small\ngroup into the hands of the crowd,\nwhich started the uptrend, comes to\nan end. You’ll see higher volatility\nas the last ones are trying to get in\non the action and the distributors\nsupport their own prices as they sell\ntheir positions. This is called the top\narea or distribution end."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-32-37-flatliners-breaking-out-by-dirk-vandycke-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-32-37-flatliners-breaking-out-by-dirk-vandycke-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-32-37-flatliners-breaking-out-by-dirk-vandycke-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323deyo,d,"{""minimum-quantity"":""1"",""path"":""ch2f209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:2 (38-40): Developing Your Mind To Trade Profitably by Rande Howell, MEd"",""caption-linebreaks"":""Developing Your Mind To Trade Profitably by Rande Howell, MEd
The Never-Ending Story
You may not give much thought to self-discovery, but it plays a role in trading,\nespecially when it comes to managing uncertainty. Find out how.
Up and down, up and down.\nFor Phil, trading has been\na roller-coaster ride for\nyears. “Almost there. I can feel it.\nWhy do I keep shooting myself in\nthe foot every time things start falling\ninto place?” he wonders. “With all the\nhard work I’ve put in over the years, I\nshouldn’t be having these problems.”\nHe continues:
But here I am. Despite how much\nI know about trading, I’m still not\nachieving what I know is possible\nfor my trading. When I sim-trade\n[simulate trading], I execute and\nmake good money. But when I\ngo live, I can’t produce the same\nconsistency. I’m still profitable, but\nmarginally. I’m certainly not trading\nto my potential.
Phil thought he was doing all the\nright things to achieve consistency\nin trading success. He set goals. He\nwrote out a plan that lays out financial\ngoals by year, by month, and\nby day. He reads them over every\nday and then sets out to make those\ngoals happen. He keeps his will\nfocused on achieving those goals.\nThis strategy had worked well in\nhis previous career and it should be\nworking for him now — or so he\nthought. Phil believed earnestly that\nprosperity thinking would manifest\nin the results he was looking for, but\ntime was running out.
The illusion of\ncontrolling outcome
Phil’s goals are about controlling\noutcome and what that outcome\nlooks like. Before he started trading,\nhis belief was that he could exert\nhis will and make things happen.\nHe had made a lot of money in his\nprevious career using this strategy\nfor success, and he believed forcefully\nthat it would prevail in trading\nas well. But his trading account was\nnot cooperating with the beliefs he\nwas projecting on the markets.
Consistency hangs in the balance\nbetween Phil’s dogged commitment\nto his beliefs about what creates\nsuccess and his inconsistent trading\nperformance. He is projecting his intentional energy into the future (that is, all those goals he\nplans to achieve) rather than holding it in the here and now\nas he executes his trades. Not that having goals is bad, but\nthe future-oriented goals Phil has set for himself become the\nbarriers to the success he seeks."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-38-40-developing-your-mind-to-trade-profitably-by-rande-howell-med-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-38-40-developing-your-mind-to-trade-profitably-by-rande-howell-med-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-38-40-developing-your-mind-to-trade-profitably-by-rande-howell-med-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov32464ex,d,"{""minimum-quantity"":""1"",""path"":""ch2f209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:2 (41, 64): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
Drilling for Oil Profits without\nending up dry…
Anyone who knows me would say I am a\nversatile trader. I look mostly at technical\npatterns, but I also throw in my own mix\nof fundamentals and sector analysis. On\ntop of that, I’ll listen to what independent\nanalysts on the Street think about a certain\nstock before I take an option position\nwith what I consider an acceptable risk.\nAt a recent seminar, I received a question\nfrom a long-term commodity trader who\nasked whether I traded options based on\nseasonal patterns. It’s a simple question,\nbut my answer has several parts.
I love seasonal patterns, especially on\ncommodities. We use these patterns again\nand again at Optionetics. No one can definitively\nsay why seasonal patterns occur,\nthough there are many opinions. Some say\nit’s supply & demand issues that happen\nyear after year, some say the patterns are\nweather related, and others say it’s merely\nthe perception of a pattern that causes the\npattern itself. So I turned to my good friend\nand authority on the subject, Jeff Hirsch.\nHe and his father Yale Hirsch have been\nstudying (and trading) seasonality for\ndecades now, and they publish the annual\nCommodity Trader’s Almanac and Stock\nTrader’s Almanac. They know a lot about\nwhy seasonal patterns occur. As Jeff Hirsch\nexplains in Stock Trader’s Almanac, a\ntimely pattern to pay attention to at this time\nof year is in the energy markets: “Crude\noil tends to make significant price gains\nin the summer, only to decline in the fall.”\nHe goes on to say that the bottom of the\nseasonal cycle tends to be mid-February\nof each year, with the top coming around\nsummertime. He believes it’s due to the\nsummer demand, and since the markets\nalways lead demand, summer demand\nfor oil and gas creeps into energy prices\nbefore spring even starts. This pattern\nshifts more or less each year due to overall\nsupply & demand and implied volatility,\nstemming from factors such as production\nin the Middle East and consumption from\ncountries such as China."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-41-64-explore-your-options-by-tom-gentile-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-41-64-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-41-64-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov324inle,d,"{""minimum-quantity"":""1"",""path"":""ch2f209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:2 (42-47): Interview: Learning The Ropes With Stan Freifeld by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Learning The Ropes With Stan Freifeld by Jayanthi Gopalakrishnan
So Many Options
Stan Freifeld traded options on the floor of the American Stock Exchange for his\nown account from 1994–2001. He was a market maker for options on several\npopular equities including Dupont, Schering Plough, Walgreen’s, CBS, US\nSurgical, and Biovail. He graduated from the State University of New York at\nStony Brook as a double major in pure and applied mathematics. As managing\ndirector of McMillan Analysis Corporate Services Division, he now teaches\noption trading and risk management to students ranging from complete novices\nto advanced professionals and academics. In his spare time, he plays squash to\nrelieve stress, competes in road rallies with his Ferrari Cabriolet, and tutors\nlocal students for the SATs. He is a long-time MENSA member.
Stocks & Commodities Editor Jayanthi Gopalakrishnan spoke with Freifeld\non December 6, 2013 about what it was like on the trading floor, what the greek\nvariables are all about, how implied volatility figures into option trading, and\nhow he approaches option trading today.
Stan, how did you get interested\nin trading and what attracted you\nto trading options?
I’ve always been interested in math\nand was pretty good at it. I was an actuary\nand ended up becoming a principal\nof a pension consulting company. I liked\nbeing an actuary, but I was working\nlong days and sometimes on weekends.\nI felt like I was spending too much of\nmy time working and not enough time\nenjoying life and being with my family.\nI was fortunate in that we were able to\nsell the consulting company to a British\nfirm that was anxious to get into the US\npension market, so they overpaid us a\nlittle bit. Because of that, I didn’t have\nto work right away. I had time to figure\nout what I wanted to do next.
I knew very little about trading but I\nwondered what it would be like to be a\nfloor trader. It seemed like being a floor\ntrader meant that I didn’t have to work\nlong hours, since the market is only open\nfrom 9:30 am till 4:00 pm. You couldn’t\ncome in early, and you couldn’t stay late.\nYou don’t have to work on the weekends\nand you are off every holiday. If I traded\nwith my own money and could make a\nliving doing it, I wouldn’t even have a boss. I wanted to be a trader!
I had to figure out what kind of\ntrading I wanted to do. Since I was\na mathematician, the idea of having\nthe added dimensions of volatility and\ntime, the different rates of change, and\nhow the price of an option changes when\none of its defining variables changes really\nappealed to me. I decided I wanted\nto go into trading options."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-42-47-interview-learning-the-ropes-with-stan-freifeld-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-42-47-interview-learning-the-ropes-with-stan-freifeld-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-42-47-interview-learning-the-ropes-with-stan-freifeld-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov324prre1,d,"{""minimum-quantity"":""1"",""path"":""ch2f209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:2 (48-51): Product review: Phantom Trader by Donald W. Pendergast Jr."",""caption-linebreaks"":""Product review: Phantom Trader by Donald W. Pendergast Jr.
KNOWVERA, LLC
Phone: 203 617-4050
Email: Phantom@KnowVera.com
Website: www.phantomtrader.com
Product: Real-time charting, analysis,\nand commentary service
Minimum system requirements:\nWindows XP SP3, Windows 7 or 8, or\nMicrosoft .NET 4.0 Framework.
Price: Phantom Trader Premium,\n$500/month; Phantom Trader Basic,\n$149/month.
In the fast-paced world of daytrading,\nprospective participants are\nfaced with a myriad of choices\nas to what sort of methodology,\ntrading system, or advisory service to rely\non as they seek to extract intraday profits\nin the stock, forex, and commodities markets.\nSome of the primary tools used are:
* Live chat rooms
* Mechanical trading systems
* Discretionary trading systems
* Charting package of technical\nindicators
* Combinations of all of the above\nresources and tools.
Phantom Trader, a service from KnowVera,\nis one of the few complete trade signal/\nlive advisory packages for intraday traders,\none that offers a streamlined, highly\nfocused set of custom-designed technical\nstudies and market trend algorithms. The\npotential value of the service is greatly\nincreased by the addition of a real-time,\nlive, professional trader’s commentary (in\naudio and text formats) from 9 am ET until\nthe regular market session closes at 4 pm\nET, Monday–Friday. Phantom Trader is a\nwell-integrated combination of the abovementioned\ntrading approaches and was\ndesigned from the ground up by a highly\nsuccessful market professional known as\nthe Phantom Trader.
The right side
I spoke with the real-life Phantom Trader\nSteve Kalayjian by phone in November\n2013. He informed me that the algorithms\nused in Phantom Trader (PT) were developed\nover the span of six and a half\nyears and that the intended goal of the\nsoftware, which is to identify the right\nside of the market for traders most of\nthe time, has been achieved with Phantom\nTrader (PT). Kalayjian attributes a\ntrader’s success to the following three\nfactors:"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-48-51-product-review-phantom-trader-by-donald-w-pendergast-jr-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-48-51-product-review-phantom-trader-by-donald-w-pendergast-jr-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-48-51-product-review-phantom-trader-by-donald-w-pendergast-jr-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov325prre1,d,"{""minimum-quantity"":""1"",""path"":""ch2f209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:2 (52-55): Product review: Group Power by Dennis Peterson"",""caption-linebreaks"":""Product review: Group Power by Dennis Peterson
Bollinger Capital Management
PO Box 3358,\nManhattan Beach, CA 90266
Phone: 310 798-8855
Email: BBands@BollingerBands.com
Website: www.GroupPower.com,\nwww.BollingerBands.com
System requirements: Internet connection\n& browser software
Product: Technical analysis website
Price: $25/month; 30-day free trial
Group Power is one of several\ntechnical analysis websites from\ntechnician John Bollinger and\ncan be found at www.GroupPower.com.\nBollinger, known for his widely popular\nBollinger Bands envelope technique,\ncreated Group Power because he felt\nthat risk/reward prospects are best if\nyou pick a stock in a strong group and a\nstrong sector. The synergy of having the\nstock, group, sector, and market all moving\nin your direction can be powerful.\nConsequently, the site provides analysis\nthat allows you to see which sector or\nindustry group is moving into a position of strength. When you approach this type\nof problem, there are three questions to\nanswer:
1 In what direction is the market\nmoving?
2 What sectors are moving in the\nsame direction, and as a corollary\nto that, are the sectors correlated\nwith the market direction?
3 What is the size of the movement,\nand how does it compare with\nother sectors?
There may be more than three questions\nin there, but you get the idea. Let’s tackle\nthe first of these: market direction.
Market direction
Which way is the market moving? The\nfirst thing to do is define what you mean\nby market. For Group Power, this is a\nsophisticated undertaking. The market\nis defined to be 15 different sectors and\neach of the sectors has several industry\ngroups, and within each group there are\nindividual stocks. Sounds simple, so\nwhere’s the sophistication?
The first sophistication is that some\nstocks are thrown into a noncorrelated set\nif they don’t behave like the rest of the\ngroup. In a final step, the noncorrelated\nset of stocks is searched to see if any of\nthem move like the rest of the stocks in\nan industry group. The result is industry\ngroups whose individual stocks behave in\na like manner. However, suppose industry\ngroup A has 10 stocks, while industry\nGroup B has 100 stocks. If you wanted\nto compare group A to group B, each\nstock in A would be contributing 1/10,\nwhereas each stock in group B would be\ncontributing 1/100. This could mean that\na single stock in group A could be moving\nall of group A, where that is not a likely\ncase for any stock in group B."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-52-55-product-review-group-power-by-dennis-peterson-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-52-55-product-review-group-power-by-dennis-peterson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-52-55-product-review-group-power-by-dennis-peterson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov325trti1,d,"{""minimum-quantity"":""1"",""path"":""ch2f209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:2 (56-62): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is\nOscar Cagigas’s article in this issue, “The\nDegree Of Complexity.” Here we present the\nFebruary 2014 Traders’ Tips code with possible\nimplementations in various software.
Code for AmiBroker is already provided\nin Cagigas’s article. Subscribers will find\nthat code at the Subscriber Area of our\nwebsite, www.Traders.com. (Click on “Article\nCode” from the S&C menu.) Presented here is an\noverview of possible implementations for other software.
Traders’ Tips code is provided to help the reader implement\na selected technique from an article in this issue.\nThe entries are contributed by various software developers\nor programmers for software that is capable of customization.
Readers will find the February 2014 Traders’ Tips code\nand formulas at our website, Traders.com, in the Traders’\nTips area. Here, you can read some discussion of the\ntechnique’s implementation by the Traders’ Tips contributors\nas well as some example charts.
To locate Traders’ Tips at our website, click on the link\nfrom our home page, or use our site’s search engine."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-56-62-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-56-62-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-56-62-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov32866le,d,"{""minimum-quantity"":""1"",""path"":""ch2f209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:2 (8-9, 66): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
SWING TRADING WITH THREE INDICATORS
Editor,
I read Donald Pendergast’s\nDecember 2013\narticle on swing trading\n(“Swing Trading With\nThree Indicators”) and\nfound it interesting.\nI would like to try using the strategy\nbecause this generally matches my approach\nto investing. My question is,\nwhich program did he use to format\nthe strategy, as it seems to be a fairly\nstraightforward approach?
By the way, the thinkorswim code\n(provided in the Traders’ Tips section of\nthe same issue) that I entered does not\nshow the high–low plots on the chart.\nIs there a need to see them? It seems to\nme the buy/sell triggers are indicated\nby the arrows.
My second question pertains to price.\nIn the code, the closing prices are used\nto trigger a transaction. What about\nusing the last price instead of the closing\nprice? Using the last price would seem\nto be better on days where the price\nrange is substantial; this, however, may\npresent some other questions such as the\naggregation period of the bars and so on.\nThanks in advance.
Todd
Author Donald Pendergast replies:
Thanks for the kind comments. I used\nTradeStation 9.1 to develop the system.\nSome EasyLanguage code for TradeStation\nwas provided in the Traders’ Tips\nsection of that same issue (and also found\nat the Stocks & Commodities website\nat www.traders.com in the Traders’ Tips\nsection) to help implement the system.\nRegarding the code provided in that\nissue’s Traders’ Tips section, I did\nnotice that some of the Traders’ Tips\ncontributors provided code that uses\nthe current bar’s five-period SMA high/\nlow as the entry/exit triggers instead of\nthe previous bar’s closing value for the\nSMA high/low.
To address your second question,\nyou can use the last or current price,\nbut you will have more whipsaws if the\ntrend doesn’t follow through; only testing\ncan prove which method is better.\nHowever, that is a bit more risky than\nusing the previous bar’s closing value\nfor the SMA trigger.
Remember that you are the key\ningredient in this approach, since you still\nneed to verify with your own eyes that\na stock is capable of making relatively\nsmooth, tradable swings. Try to use\nfive to 10 years of historical data to\nverify this before going ahead with any\ntesting. Some stocks have a consistent\nhistory of tradable swings and others do\nnot; you will likely find that taking the\ntime to visually verify whether it does\nmay dramatically improve the overall\nresults."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-8-9-66-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-8-9-66-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-2-8-9-66-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov321tima,d,"{""minimum-quantity"":""1"",""path"":""ch3m207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:3 (10–15): Timing The Market With Pairs Logic by Perry Kaufman"",""caption-linebreaks"":""Timing The Market With Pairs Logic by Perry Kaufman
Release The Stress!
Fundamentally different strategies, drawing from a broad set of markets, will offer better risk protection during times of market stress than any one strategy, regardless of the mar-kets selected for the portfolio. In this article, you will get an overview of a timing method that you can implement in your trading, followed by the mechanics of that system.
Arbitrage is one of the great financial strategies, and pair trading, which is relative value arbitrage, ranks high on the list of all-time successes. The premise is that two related stocks will only diverge for a short time, so that buying the weaker and selling the stronger is a high-probability trade. In my 2010 book Alpha Trading, I introduced the stress indicator as a method for timing the entries & exits into pairs trades (see Figure 1).
But there are practical problems with traditional pair trading:
•It can be difficult to sell short one leg of the pair.
•A high correlation between two stocks or a stock and an index assures success but will cause profits to be small.
•The net profit can also be small because of competition with commercial traders, since it’s a popular method.
•Retirement accounts don’t allow short sales."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-10-15-timing-the-market-with-pairs-logic-by-perry-kaufman-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-10-15-timing-the-market-with-pairs-logic-by-perry-kaufman-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-10-15-timing-the-market-with-pairs-logic-by-perry-kaufman-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov321fabi,d,"{""minimum-quantity"":""1"",""path"":""ch3m207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:3 (16–20): Fading The Big Moves by Ashot Hakobyan"",""caption-linebreaks"":""Fading The Big Moves by Ashot Hakobyan
Losing Luster?
Whenever we see a big move in the markets, it’s bound to catch our attention. But how do we protect our capital during such big moves, or better yet, profit from them? Find out here.
Big moves in financial markets invariably draw the attention of analysts and traders. Analysts face the task of explaining such moves, which often challenge market theories. In recent decades, analysts have developed advanced models to accommodate the anomalies in the market return distributions — that is, the fat tails — to which the big moves are often attributed.
Although theories are being constantly improved, traders still have to embrace the reality of big moves and come up with strategies to help protect them against those moves or, better yet, try and profit from them. Typically, if a big move confirms your technical and fundamental view of the market, you’re going to follow that move; otherwise, you’re going to trade against the move (that is, fade the move). Weaknesses in these big moves can potentially develop into a sizeable pullback or even a complete reversal."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-16-20-fading-the-big-moves-by-ashot-hakobyan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-16-20-fading-the-big-moves-by-ashot-hakobyan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-16-20-fading-the-big-moves-by-ashot-hakobyan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov322qaby,d,"{""minimum-quantity"":""1"",""path"":""ch3m207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:3 (21): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
WHAT GOOD ARE THEY?
Mr. Bright, I have been trading for a couple of years — not much, but mostly equities, which I know your firm specializes in. It seems that nearly every day there are economic numbers released by the government and other sources. The financial TV shows seem to expect everyone to know what these various releases are and how they should be viewed. I don’t mind saying that I really don’t know much about any of these supposedly big-news items. I can understand the unemployment rate, sort of, but they seem to discount even that when it appears to be improving. Would you be able to give me and other readers a short primer on some of these releases?
Glad to try to help out. I will say that you’re not the first, nor will you be the last, to be confused by all these indicators. And you might notice that many get revised a month later anyway, so, you might think, “What good are they?”"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-21-q-a-by-don-bright-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-21-q-a-by-don-bright-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-21-q-a-by-don-bright-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov322exco,d,"{""minimum-quantity"":""1"",""path"":""ch3m207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:3 (22–25): Expansions & Contractions, Part 1 by Dirk Vandycke"",""caption-linebreaks"":""Expansions & Contractions, Part 1 by Dirk Vandycke
The Calm Before The Storm
Every trader wants to be able to predict price moves. But we know that it’s impossible to do so. Instead, focus on finding high-probability setups and manage them well. In this first part of a three-part series, we’ll look at how to identify these profitable setups.
Apart from the use of derivatives, perhaps the only way to make money in the markets is in the difference between the price at which a position was opened and the price at which it was closed. It is every technical analyst’s wildest dream to be able to predict price moves. As that is impossible, the next best thing is try to find high-probability setups and handle them with correct position sizes and the right aptitude for risk management. One way to find high-probability setups is to look for divergences.
EXPANSION AND CONTRACTION
Before you start to look at divergences, you need to be aware that they are closely connected with the contraction and expansion of market prices. You may have noticed that price ranges contract before they expand. I call this the tsunami effect — similar to how the sea recedes prior to the devastating wave that follows. In the same way, volatility and daily range shrink before a stock starts running, thereby sucking all liquidity out of the market. Tsunamis, however, are far rarer than price expansions and the often subsequent trends. The question is, can we detect a tsunami before it floods us?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-22-25-expansions-contractions-part-1-by-dirk-vandycke-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-22-25-expansions-contractions-part-1-by-dirk-vandycke-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-22-25-expansions-contractions-part-1-by-dirk-vandycke-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov322trsw,d,"{""minimum-quantity"":""1"",""path"":""ch3m207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:3 (26–30): Trend Switching With ETFs by Moshé Prince"",""caption-linebreaks"":""Trend Switching With ETFs by Moshé Prince
Trends And Seesaws
Given the volatility in the markets, you need to know when to get into a trade and when to get out. The use of ETFs has made this easier. Find out how.
Trend switching and trigger switching are the foundation of a successful trading/investing strategy in exchange traded funds (ETFs). I know there is a line of thinking out there that says buy & hold is the way to go, but in my opinion, the days of buy & hold are over. After decades of trial and error, I have found that buy & hold has had merely a modicum of success.
ETFS TO THE RESCUE
Do you have the stomach to watch an unnecessary loss of more than 30% to 40% in your portfolio at any given time and to wait out a recovery? Luckily, you don’t have to because there are tools available that you can use to get out of trades at the right time. As the market changes with the times — or changes the times — you must be flexible to know when an old process no longer works. These days, following trends without being aware that the market may go in the opposite direction seems to be the tried and true method. But some would argue that the buy & hold approach is the only way to invest."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-26-30-trend-switching-with-etfs-by-mosh-prince-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-26-30-trend-switching-with-etfs-by-mosh-prince-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-26-30-trend-switching-with-etfs-by-mosh-prince-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323exyo1,d,"{""minimum-quantity"":""1"",""path"":""ch3m207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:3 (31): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
AND THE MOST IMPORTANT RULE FOR OPTION TRADERS IS…
Having just returned from another seminar, I ran across a situation that I’ve encountered before on many occasions: A student who has some type of great short-term system decides he wants to start trading options on it. The problem is one that many of us run into when we get started with options. Imagine this scenario: You spot a great opportunity, put on a low-risk trade, and execute your plan. The stock moves the way you expect it to, but when you get out, either the trade lost money or made very little. You followed all the rules to ensure your trade would work. What happened? Chances are, you were trading illiquid options with a wide spread between the bid & ask.
If you’re not looking at how liquid your options are, even the best-laid plans can fall apart. This is especially true for spread traders. As an example, take a look at the stock of Church & Dwight (CND) in Figure 1."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-31-explore-your-options-by-tom-gentile-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-31-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-31-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323intr,d,"{""minimum-quantity"":""1"",""path"":""ch3m207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:3 (32–36): Interview: Trading Like An Insider With Guy Cohen by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Trading Like An Insider With Guy Cohen by Jayanthi Gopalakrishnan
Ahead Of The Crowd
Guy Cohen is a leading innovator in financial trading. He is the creator of the options volatility indicator (OVI) and the FlagTrader and OptionEasy trading tools. He is the author of the best-selling trading books The Insider Edge, Options Made Easy, The Bible of Options Strategies, and Volatile Markets Made Easy. With a master’s in business administration in finance from the Cass Business School of London, he trades both stocks and options using his academic back-ground as the foundation for his trading methods. He has extensive experience in trading and analyzing both the US and UK derivatives and stock markets.
Cohen is a successful private trader and also a trading coach. Based on years of research, planning, and development, his firm produces sophisticated mathematical models with which to approach the markets. He can be reached through his website at www.ovitradersclub.com or via email at support@flag-trader.com.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan interviewed Guy Cohen via telephone and email on January 8, 2014 on ways to keep abreast with market momentum, mistakes traders make, and how he uses data.
Guy, please tell us a little about yourself and what attracted you to the financial markets. How did you get interested in them?
I was always interested in the financial markets, even as a teenager. From a professional standpoint, I got into finance while I was specializing in commercial real estate in London. My original idea and plan was to combine my commercial real estate training with finance in order to become a property developer.
I completed my City exams in London, which is the equivalent of the tests a person must take in the US to work on Wall Street, and then I got an MBA in finance at Cass Business School, where I took the options elective. From that point, I started developing software for my own option trading. At the time, option-trading software was somewhat primitive and didn’t do what I needed, so I started building my own software application, and then was compelled to keep going."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-32-36-interview-trading-like-an-insider-with-guy-cohen-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-32-36-interview-trading-like-an-insider-with-guy-cohen-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-32-36-interview-trading-like-an-insider-with-guy-cohen-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323fufo,d,"{""minimum-quantity"":""1"",""path"":""ch3m207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:3 (37): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
STRANGLING FOR PROFITS? (PART 3)
If strangle traders can make money regard-less of market direction, doesn’t it provide the best odds of success?
In the previous two issues, I addressed the pros and cons of trading option strangles. This month, we’ll focus on the strategy of placing futures strangles.
Futures strangles differ dramatically from option strangles in that the reference to “strangle” applies to the trade entry orders rather than the trade itself. To illustrate, an option strangle is a strategy in which a trader holds open, and opposite, positions in calls & puts with the same underlying asset; those trading futures strangles are placing opposite orders to enter a futures contract with the intention of being filled on only one of them. This makes sense, because a trader cannot be long and short the same instrument simultaneously, but he can be positioned to attempt to profit from either a rally or a decline should one of them materialize."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-37-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-37-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-37-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323napr,d,"{""minimum-quantity"":""1"",""path"":""ch3m207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:3 (38–39): Navigating Price Mountains by Thomas Bulkowski"",""caption-linebreaks"":""Navigating Price Mountains by Thomas Bulkowski
See You At The Top
When stock prices start climbing or forming a price mountain, it’s tempting to want to get in on the action. But should you buy a stock that’s forming a mountain?
Let me tell you a fictitious story about Basketcase Bob. On August 28, 2000, he bought stock in Intel (INTC) and received a fill at $75.81, the very high for the day, the year, and for the history of the stock. I show his theoretical purchase in Figure 1 (point A). At that time, the stock market was soaring, especially semiconductor stocks, and he wanted a part of the action.
When he checked the stock on October 11, 2000 about six weeks later (point B), the stock had bottomed at $35. “It’s down too far now. As soon as I get my money back, I’m selling,” he said to himself. Perhaps you have uttered similar words in similar circumstances. If others buy near the same price, and sell as soon as they get their money back, their collective behavior forms a chart pattern called a double top. That is two peaks near the same price with a decline afterward.
Let’s return to Basketcase Bob. Question 1: How long will it be, on average, before he gets his money back? I’ll answer that in a moment. Until then, consider another trade at point D on the chart in Figure 1."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-38-39-navigating-price-mountains-by-thomas-bulkowski-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-38-39-navigating-price-mountains-by-thomas-bulkowski-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-38-39-navigating-price-mountains-by-thomas-bulkowski-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov324fule,d,"{""minimum-quantity"":""1"",""path"":""ch3m207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:3 (40–41): A Fundamental Lesson For The Technically Minded by Matt Blackman"",""caption-linebreaks"":""A Fundamental Lesson For The Technically Minded by Matt Blackman
For decades, there have been two major schools of thought when it comes to stocks. First came the fundamental analysts, who believe that stock prices are a product of revenues and earnings. Then came the technicians, who believe that all they need to know is contained in stock charts. Here, we look at how the two methodologies come together.
Like many investors, I began to play the markets believing that if you found companies with strong balance sheets, a good product, and strong management team, you would make money. But one challenge quickly became evident: Earnings lagged stock prices most of the time. When the economy slowed down, earnings often gave little or no warning before stock prices fell. Relying on balance sheets to determine trade entries & exits tended to get you in well after the move was over and out too late to avoid the pain.
DO FUNDAMENTALS REALLY MATTER?
An article on the Wall Street Rant blog titled “Is This Bull Market Fundamentally Driven?” sought to help answer this question. “Fundamentally driven bull markets should rely more on cyclically adjusted earnings growth and less on investors’ willingness to pay ever-increasing multiples on those earnings,” the author posited.
But do they? To explore this question in detail, I used the cyclically adjusted price/earnings (PE) ratio data from Robert Shiller’s website. He separated out bull markets that experienced at least 100% gains without a 20% correction between 1930 and the present and then ordered these markets from the most strongly earnings-driven to the weakest using the ratio of price gains divided by the expansion in the PE multiples. Bulls showing the smallest PE expansions (that enjoyed the greatest earnings growth) were considered the most fundamentally driven. I show his results in the table in Figure 1."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-40-41-a-fundamental-lesson-for-the-technically-minded-by-matt-blackman-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-40-41-a-fundamental-lesson-for-the-technically-minded-by-matt-blackman-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-40-41-a-fundamental-lesson-for-the-technically-minded-by-matt-blackman-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov324prre2,d,"{""minimum-quantity"":""1"",""path"":""ch3m207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:3 (42–44): Product review: MetaStock XIII by S&C Staff"",""caption-linebreaks"":""Product review: MetaStock XIII by S&C Staff
METASTOCK
4548 Atherton Drive, Suite 200
Salt Lake City, UT 84123
Phone: sales 800 508-9180;\ntechnical support 801 265-9998
Email: sales@metastock.com,\nsupport@metastock.com
Internet: www.metastock.com
Product: Trading platform
System requirements: Windows 7 or 8;\n4GB RAM minimum, 8 GB RAM recommended;\n1.6 GB disk space;\nhigh-speed Internet connection
Price: $100/month, $960/year, or $1,395 for a permanent copy
MetaStock Pro XIII (also referred to as MSPro13-Forecaster) is the latest version of a full-featured product that has been delivering out-standing analysis capabilities for more than 30 years. The software is installed on your computer and is designed to support real-time intraday or end-of-day (EOD) trading. It uses the MetaStock XENITH datafeed, which provides quotes and robust access to news. The big change from MetaStock version 12 is the addition of a feature called the Forecaster.
The idea of the Forecaster is to assess the predictive ability of various indicators. There are 67 choices. Some of the indicators are used in multiple ways, so the number of unique indicators is approximately 26. There are several hurdles Forecaster had to get over to accomplish this task.
The first hurdle is best explained by what the Forecaster is not. It is not a means to find the best trading system. When you look in the Forecaster library to get a detailed explanation of how an indicator is used, it may sound like a trade entry setup. That is true to some extent, but the reason MetaStock chose to use the word event is that an event simply means that the description in the library has become true on a particular day, and at the moment, only daily calculations are made."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-42-44-product-review-metastock-xiii-by-s-c-staff-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-42-44-product-review-metastock-xiii-by-s-c-staff-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-42-44-product-review-metastock-xiii-by-s-c-staff-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov324prre3,d,"{""minimum-quantity"":""1"",""path"":""ch3m207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:3 (46–48): Product review: Insiders Guide To Trading Weekly Options by Barbara Star, PhD"",""caption-linebreaks"":""Product review: Insiders Guide To Trading Weekly Options by Barbara Star, PhD
SIMPLEROPTIONS.COM
Phone: 512 266-8659
Email: support@simpleroptions.com
Internet: www.SimplerOptions.com/weekly
Product: A four-DVD set; weekly option plus live trading course
Price: $1,997; contact SimplerOptions for special pricing
Traders who have ever delved into the world of option trading soon found themselves mired knee-deep in the greeks, implied volatility, complicated math, and dozens of trading strategies. John Carter began his Simpler Options.com website and trading education room to help reduce the confusion by making stock and index options much easier to understand and more profitable to trade. He brings that same philosophy to his new DVD course, Insiders Guide To Trading Weekly Options.
Although best known for his intraday and swing trading of stocks and futures, Carter began trading stock options while still in college. The DVD course applies his years of experience to the fast-growing world of weekly stock options. His mission: to share what he has learned about what works and what doesn’t. His goal: to teach participants how to think more like a market maker and less like a speculator so they can gain consistent success as traders of weekly options.
The set of four DVDs contains the recordings of a four-day course that Carter taught in September 2013. The first DVD covers theory and trading strategies. The other three DVDs are recordings of live trading sessions that took place the following week as both he and the online participants put into practice the concepts and strategies that were taught."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-46-48-product-review-insiders-guide-to-trading-weekly-options-by-barbara-star-phd-25.gif"",""height"":""774"",""width"":""585""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-46-48-product-review-insiders-guide-to-trading-weekly-options-by-barbara-star-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-46-48-product-review-insiders-guide-to-trading-weekly-options-by-barbara-star-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov324bofo,d,"{""minimum-quantity"":""1"",""path"":""ch3m207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:3 (49): Books for Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books for Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-49-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-49-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-49-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov325trti2,d,"{""minimum-quantity"":""1"",""path"":""ch3m207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:3 (50–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Perry Kaufman’s article in this issue, “Timing The Market With Pairs Logic.” Here we present the March 2014 Traders’ Tips code with possible implementations in various software.
Code for TradeStation is already provided in Kaufman’s article. Subscribers will find that code at the Subscriber Area of our website, www.Traders.com. (Click on “Article Code” from the S&C menu.) Presented here is an overview of possible implementations for other software.
Traders’ Tips code is provided to help the reader imple-ment a selected technique from an article in this issue. The entries are contributed by various software developers or programmers for software that is capable of customization.
Readers will find the March 2014 Traders’ Tips code and formulas at our website, Traders.com, in the Traders’ Tips area. Here, you can read some discussion of the technique’s implementation by the Traders’ Tips contributors as well as some example charts.
To locate Traders’ Tips at our website, www.Traders.com, click on the link on our main menu at the top of the homepage, or scroll down to the “Current articles” section and click on the Traders’ Tips tab."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-50-56-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-50-56-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-50-56-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov326djis,d,"{""minimum-quantity"":""1"",""path"":""ch3m207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:3 (62–64): The DJIA Is A Fata Morgana by Wim Grommen"",""caption-linebreaks"":""The DJIA Is A Fata Morgana by Wim Grommen
The Complexity Of It All
Here’s an interesting perspective on the oldest stock index in the US.
The Dow Jones Industrial Average (DJIA) is the only stock market index that encompasses the second and third US industrial revolutions. Calculating indexes such as the DJIA and showing this index in a historical graph is a useful way to show which phase the industrial revolution is in. Changes in the basket of shares in the DJIA, changes in the formula, and stock splits during the takeoff and acceleration phases of industrial revolutions are perfect transition indicators. The similarities of these indicators during the last two industrial revolutions are fascinating, but they’re also a reason for concern. In fact, a historical chart of the DJIA (Figure 1) is a classic example of “fictional truth” — that is, a fata morgana, so to speak.
ITS HISTORY
The DJIA was first published in 1896, when it had just 12 constituents and was a simple price average in which the sum total value of the shares of the 12 constituents were simply divided by 12. The shares with the highest prices had the greatest influence on the movements of the index as a whole. In 1916, the Dow 12 became the Dow 20, with four companies being removed from the original 12 and 12 new companies being added. In October 1928, the Dow 20 became the Dow 30, but the calculation of the index was changed to be the sum of the value of the shares of the 30 constituents divided by what is known as the Dow divisor."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-62-64-the-djia-is-a-fata-morgana-by-wim-grommen-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-62-64-the-djia-is-a-fata-morgana-by-wim-grommen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-62-64-the-djia-is-a-fata-morgana-by-wim-grommen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov328leto1,d,"{""minimum-quantity"":""1"",""path"":""ch3m207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:3 (8–9): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
SWING TRADING
Editor,
I enjoyed Donald Pendergast’s article on swing trading in the December 2013 issue (“Swing Trading With Three Indicators”). I have a question regarding his entry points. They actually occur the day after the breakout, since in rule 1, he states, “Go long when the price exceeds the upper moving average of the previous trading session.” Is that correct? I just wanted to clarify. Gary
Author Donald Pendergast replies:
Thanks for reading. Yes, if using daily price bars, then using the previous bar’s closing value of the moving average (of the highs or lows) will result in fewer whipsaws and false signals as compared to using the current intrabar value for the moving average, which will fluctuate until the close of the trading session. You may be able to get a better entry price by entering before the bar closes, but you may also be entering a trade that otherwise would not be confirmed at the end of the trading session.
Really, you can use the system on any time frame and the same principle would apply. Again, the important idea with the system is to first visually identify stocks and ETFs that consistently make sustained, smooth swing and/or trending moves."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-8-9-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-8-9-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-3-8-9-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov321posi,d,"{""minimum-quantity"":""1"",""path"":""ch4a2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:4 (10-13): Position Sizing In The Spot Forex Markets by Karl Montevirgen"",""caption-linebreaks"":""Position Sizing In The Spot Forex Markets by Karl Montevirgen
Balancing Opportunity & Risk
Wouldn’t you like to know exactly how much you are risking before you enter a trade? Find out how to do just that before placing your next trade.
Let’s begin with the concept of strategy. A strategy is a set of actions that is organized and combined to achieve a predetermined result. Although various components within a given strategy differ in proportion, sequence, and emphasis, each component, no matter what its limited role or function, has the capacity to have a momentous effect on the outcome. It is possible for a minor strategic component to unexpectedly be-come the single and most critical factor leading an entire strategy to its successful completion; inversely, the same can be said about each component’s vulnerability to risk and failure.
Anyone who has had the experience of developing or implementing a strategy knows that its success relies on its capacity to seize opportunity and to manage risk. The notion that opportunity and risk are two sides of the same coin is a misguided abstraction. In actuality, the size and potential of both terms are dynamic and subject to change in proportion to one another, its manner of change being perpetual and asymmetric. For this reason, a well-designed strategy will not place emphasis on one at the expense of the other. As the smallest of contingencies can yield disproportionate results, a minor misstep can throw an entire strategy off course."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-10-13-position-sizing-in-the-spot-forex-markets-by-karl-montevirgen-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-10-13-position-sizing-in-the-spot-forex-markets-by-karl-montevirgen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-10-13-position-sizing-in-the-spot-forex-markets-by-karl-montevirgen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov321idst,d,"{""minimum-quantity"":""1"",""path"":""ch4a2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:4 (14-17): Identifying The Strongest To Weakest Forex Pairs by Michael Burke"",""caption-linebreaks"":""Identifying The Strongest To Weakest Forex Pairs by Michael Burke
Pairing Up
Which is the strongest and which is the weakest? Here’s a straightforward concept that can help you track forex market dynamics and cross-currency relationships.
At some point in the life of every forex trader, the idea of trying to determine which currency is stronger or weaker than all the others will come up. The thinking goes like this: If I know which currency is the strongest and which one is the weakest, then the resulting combination pair should have the greatest trend potential. Although this is a straightforward concept, it turns out that there is much more that we can derive from this analysis in tracking forex market dynamics and cross-currency relationships.
In this article, I’ll discuss the modeling and analysis of a forex pair performance strength score, focusing only on the eight major (that is, most widely traded) currencies: the US dollar, Japanese yen, euro, Swiss franc, British pound, Canadian dollar, Australian dollar, and New Zealand dollar. These eight underlying currencies represent 28 unique tradable cash forex pairs; any one underlying currency will have seven unique cash pairs that match up with the seven other underlying currencies.
FOREX PAIR SYMBOLOGY
Each cash forex symbol comprises two underlying currencies. The base currency in a forex pair symbol is the first symbol noted. For example, in the EURUSD pair, EUR is the base currency while the second symbol, in this case USD, is the quote currency. The base symbol is the currency you are buying or selling and the quote symbol is the currency in which you realize the profit or loss of a trade."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-14-17-identifying-the-strongest-to-weakest-forex-pairs-by-michael-burke-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-14-17-identifying-the-strongest-to-weakest-forex-pairs-by-michael-burke-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-14-17-identifying-the-strongest-to-weakest-forex-pairs-by-michael-burke-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov321exyo,d,"{""minimum-quantity"":""1"",""path"":""ch4a2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:4 (18-19): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
TRADING THE “EASING” OF QUANTITATIVE EASING
Ever since former Federal Reserve chair-man Ben Bernanke and company made the ultimate decision to begin pulling back on bond purchasing last year, Treasury bonds have taken a beating. In the last six months of 2013, bonds dropped some 20% while interest rates rose during the same time frame. Many traders are speculating on a continued drop after the brief runup at the beginning of this year. A question I have been getting lately is, “How can an equity option trader take advantage of this move in the fixed in-come markets?” There are plenty of stock option traders who have no idea that trading the bond market is right in their backyard. Yes, when the subject of trading bonds comes up, most people think of the futures mar-kets, but it’s possible to take advantage of a bond rally (or drop) using an exchange traded fund (ETF) that is made up of bonds. When I am not following the futures markets, I turn to TLT, the iShares 20-year bond ETF. This ETF closely tracks the US Treasury bond market, meaning it correlates to the moves — both up and down — very well."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-18-19-explore-your-options-by-tom-gentile-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-18-19-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-18-19-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov322evsu,d,"{""minimum-quantity"":""1"",""path"":""ch4a2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:4 (20-26): Evidence-Based Support & Resistance by Melvin E. Dickover"",""caption-linebreaks"":""Evidence-Based Support & Resistance by Melvin E. Dickover
Elementary, My Dear Chart!
Here are two new indicators based on evidence from price–volume behavior to help create dependable support and resistance lines that accurately identify the prices where supply and demand pools are located.
It is well known that price movements are caused by changes in supply and demand. Pauses, consolidations, pullbacks, and reversals are caused by encountering pools of supply or demand that must be absorbed before price can move past them. It is these supply and demand pools that are the underlying cause of support and resistance.
Conventional support and resistance indicators are calculated from various price formulas based on hypotheses about price behavior such as floor pivots and Fibonacci lev-els. Because these formulas ignore volume, the support and resistance lines they compute are only proxies for the actual location of the supply and demand pools that create support and resistance. This article describes how a new indicator I named Defended Price Lines (DPLs) can exploit price and volume data to pinpoint the location of supply and demand pools. DPLs indicate where resistance caused by supply or demand has been found and will be found again and again.
FINDING DPLS WITH RELATIVE VOLUME
Using simple statistical methods, we can find significant vol-ume differences — those that make a difference to our trad-ing. The relative volume indicator finds where an unusually large volume suddenly comes rushing in to defend the price."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-20-26-evidence-based-support-resistance-by-melvin-e-dickover-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-20-26-evidence-based-support-resistance-by-melvin-e-dickover-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-20-26-evidence-based-support-resistance-by-melvin-e-dickover-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov32243fu,d,"{""minimum-quantity"":""1"",""path"":""ch4a2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:4 (27, 43): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
WHAT IS THE BEST WAY TO INVEST IN COMMODITIES?
The commodity markets offer opportunities for traders of all sizes, strategies, and risk-aversion levels. However, before you put money to work in commodities you must be aware of two simple, but often overlooked, facts:
1. Trading is not investing. Understanding the difference between these two approaches is important because the allocation of your assets should be overweight in investments and underweight in trades.
2. Putting money to work in the commodity markets, whether as a trader or as an investor, is far different than doing so in traditional asset classes such as stocks and bonds.
Trading vs. investing
Trading is active speculation on price changes; traders might go long or short a market in anticipation of relatively short-term moves. Investors, on the other hand, are the so-called buy and holders whose purpose is to accumulate gains on a long-term basis, namely several months or even several years."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-27-43-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-27-43-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-27-43-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov322exco1,d,"{""minimum-quantity"":""1"",""path"":""ch4a2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:4 (28-30): Expansions & Contractions, Part 2 by Dirk Vandycke"",""caption-linebreaks"":""Expansions & Contractions, Part 2 by Dirk Vandycke
Divergence Of The Fittest
In the first part of this three-part article series, we found out how to measure intrinsic divergences. In this second part, we will identify divergences that take place when price may appear to be strong but has a tendency to close near the lows.
The concept of divergence is nothing new. When one indicator behaves differently than another, it sometimes suggests that a change in trend is about to take place. Technical analysis is all about measuring probabilities rather than forecasting. Because of this, it is difficult to quantify concepts such as divergence. Most attempts get stuck in an algorithmic approach that tries to capture specific graphical setups. This ends up giving you mediocre results. In this article, I will provide a statistical framework that results in an indicator you can use to measure divergences.
WHAT IS DIVERGENCE?
In part 1, I talked about measuring intrinsic divergence, which measures divergence within one time series as opposed to the more popularly used divergence between different time series. On a normal price chart you won’t see intrinsic divergence, but the divergence between different time series — which I refer to as extrinsic divergence — is something you can see on a chart. It may, however, lag, and it’s difficult to detect algorithmically."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-28-30-expansions-contractions-part-2-by-dirk-vandycke-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-28-30-expansions-contractions-part-2-by-dirk-vandycke-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-28-30-expansions-contractions-part-2-by-dirk-vandycke-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323trun,d,"{""minimum-quantity"":""1"",""path"":""ch4a2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:4 (32-36): Trading The Unpredictable Without Indicators by James Stanley"",""caption-linebreaks"":""Trading The Unpredictable Without Indicators by James Stanley
No Lines, No Patterns!
Is it possible to trade using no indicators at all? Here’s a five-point plan that you can apply to look for strong entry opportunities in the forex markets.
When a new trader finds technical analysis, it often leads to an onslaught of indicators added to the chart. After all, if a moving average or relative strength index (RSI) can help enter positions more effectively, another indicator or two couldn’t hurt, right? This trader will often work toward building the perfect strategy that never loses. And the trader may even go on a run of good luck in which it looks like the holy grail has been found.But indicators are not a panacea; they are merely tools that help to translate what has happened in the past on the chart. And regardless of how rigid a technical strategy may be, the past is never going to be perfectly predictive of the future.
This is why traders need strong risk management, regardless of the strategy, so that in those situations in which the market environment changes, or when market conditions aren’t optimal, they don’t lose everything they made during the good times (and then some).
But, taking this a step further, do traders really need indicators to translate what has happened in the past? What follows is a five-point plan that traders can implement to look for strong entry opportunities in which they may be able to find effective risk–reward ratios.
THE TREND IS YOUR FRIEND
We’ve all heard this saying, and while it may be oversimplistic, it’s true. Trends develop for reasons. It could be a fundamental change in an economy or a company or the result of a global positioning play; whatever the reason, trends can be desirable."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-32-36-trading-the-unpredictable-without-indicators-by-james-stanley-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-32-36-trading-the-unpredictable-without-indicators-by-james-stanley-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-32-36-trading-the-unpredictable-without-indicators-by-james-stanley-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323qaby1,d,"{""minimum-quantity"":""1"",""path"":""ch4a2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:4 (37): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
QUESTIONS & ANSWERS!
Don, I have followed your writings in Technical Analysis of STOCKS & COMMODITIES and in some Internet blogs. It seems that you offer serious advice about topics that traders can use. I have been trading for a couple of years now and have spent money on various trading courses. I find that most of these courses that I have participated in focus on general information instead of specific trading-related factors. I have some questions for you. I would appreciate if you could be as specific as possible in your answers.
1. Scaling in and scaling out: I have heard diverse opinions on scaling in and scaling out of shares in a stock. What are your thoughts on this?
2. Risk vs. reward: There’s so much talk about having a proper risk-to-reward ratio. Is there an objective number that should be followed?
3. Share size and price of stocks: Other than account size limitations, what should we look for regarding these points?
4. Adding shares to winners and or losers. Any comments?
Thanks for reading the magazine and for the kind words. I will do my best to address each issue with my bottom-line advice. As I look at your questions, it appears to me that they all seem to be related in one form or another."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-37-q-a-by-don-bright-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-37-q-a-by-don-bright-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-37-q-a-by-don-bright-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323intr1,d,"{""minimum-quantity"":""1"",""path"":""ch4a2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:4 (38-43): Interview: Trading Rationally With Rob Booker by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Trading Rationally With Rob Booker by Jayanthi Gopalakrishnan
Rob Booker is a currency trader, author, and speaker who believes that trading profitably is not easy but can be enjoyable. Nicknamed the “Prime Minister of Pips,” he has seen much success in currency trading in past years and continues to trade today. His eBook Forex Strategy 10: Low Risk/High Return Currency Trading has been downloaded more than 500,000 times. He is also the author of Adventures Of A Currency Trader.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Rob Booker on February 6, 2014 via Skype about the emotions that can be encountered while trading in the currency markets and how to manage them.
Rob, tell us a bit about yourself and how you got interested in trading.
I started a business in the 1990s that was not successful. As a result of that, I took on a pretty substantial amount of debt related to that business and had to find my way out of that situation and still take care of my family. So I called a friend I had while I was in law school. I had been interested in the financial markets during law school. I said to the friend, “You work in the financial industry. I’ve got to make some money, and I’m not going to practice law. What else can I do?” My friend said, “Well, whatever you do, don’t start trying to trade anything. And especially if you’re thinking that you’re going to get rich quick, don’t try to do anything in the world of currency trading because it’s a shark tank and you’re going to get killed.”
So, of course, that was the first place I looked because there was a theoretical possibility that I could lose a lot of money very quickly, which gave me, as it does for everybody, the thought that maybe there was also a chance to make a lot of money very quickly. I immediately became drawn to the currency markets.
So you got attracted to the forex markets because of the high risk involved."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-38-43-interview-trading-rationally-with-rob-booker-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-38-43-interview-trading-rationally-with-rob-booker-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-38-43-interview-trading-rationally-with-rob-booker-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov324betr,d,"{""minimum-quantity"":""1"",""path"":""ch4a2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:4 (44-48): A Better Trend by Perry Kaufman"",""caption-linebreaks"":""A Better Trend by Perry Kaufman
Zzzzz…No, don’t fall asleep! This is important.
How can a trend be better? Here’s a unique approach to viewing trends so you can gain the most from them.
Consider these points:
• Macrotrend systems have had the best track record of any method for more than 30 years.
• They are based on a sound premise — following the reaction to economic policy.
• They don’t trade often (which bothers the brokerage houses).
• They work across nearly every market.
• They work across a large range of time frames (calculation periods).
• They capture the fat tail of price moves; that is, the really big moves.
• Therefore, they are robust. Very few trading strategies are robust.
• And, yes, they can be boring.
What I mean by robustness is:
• The same rules and parameters are applied to all markets.
• “Loose pants fit everyone” but don’t always look good. Fine-tuning to each market is a guarantee of failure.
There are also these advantages:
• Knowing the trend allows you to filter trading signals from other strategies.
• Knowing the trend allows you to weight trades with better expectations.
• Knowing the trend helps with option strategies.
• The concept is transparent; that is, you know what it’s doing."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-44-48-a-better-trend-by-perry-kaufman-29.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-44-48-a-better-trend-by-perry-kaufman-36.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-44-48-a-better-trend-by-perry-kaufman-37.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov324betr1,d,"{""minimum-quantity"":""1"",""path"":""faarfr206"",""ysw-page-title"":""Stocks & Commodities V. 32:4 (44-48): A Better Trend by Perry Kaufman"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-44-48-a-better-trend-by-perry-kaufman-33.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-44-48-a-better-trend-by-perry-kaufman-34.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-44-48-a-better-trend-by-perry-kaufman-35.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov324prre4,d,"{""minimum-quantity"":""1"",""path"":""ch4a2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:4 (49-51): Product review: Candle Profit System by Technical Analysis, Inc."",""caption-linebreaks"":""Product review: Candle Profit System by Technical Analysis, Inc.
MetaStock
4548 Atherton Drive, Suite 200,\nSalt Lake City, UT 84123
Phone: sales 800 508-9180; technical support 801 265-9998
Email: sales@metastock.com, support@metastock.com
Price: $399
Product: MetaStock add-on for finding candlestick patterns based on Steve Bigalow’s work
System requirements: See http://www.metastock.com/products/realtime/metastockpro/?requirements
Candle Profit System (CPS), a MetaStock add-on and product of a collaboration between Steve Bigalow and MetaStock, seeks to find profitable candlestick patterns. There are a large number of candlestick pat-terns, some of which are highly reliable, but many of them are infrequent. What Bigalow asserts is that there are just 12 patterns that you need to pay attention to for generating profits. There is a free webinar you can watch on YouTube found at http://www.youtube.com/watch?v=1fB3EF7XeXU to see examples of these 12 patterns.
OVERVIEW
The webinar starts by listing the 12 pat-terns you see listed in Figure 1. The user manual that comes with the add-on also describes each one. As Bigalow explains in the webinar, candlestick patterns are reflections of the mood of traders. For example, a doji pattern is one where the open and close are nearly equal, which reflects indecision by traders. In other words, neither the bulls nor the bears have control. You then want to see a con-firming signal, such as the appropriate bearish or bullish candlestick following the doji, depending on the trend."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-49-51-product-review-candle-profit-system-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-49-51-product-review-candle-profit-system-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-49-51-product-review-candle-profit-system-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov325qust,d,"{""minimum-quantity"":""1"",""path"":""ch4a2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:4 (51-52): Quick-Scan: StockCharts University by Leslie N. Masonson"",""caption-linebreaks"":""Quick-Scan: StockCharts University by Leslie N. Masonson
STOCKCHARTS UNIVERSITY
StockCharts.com
11241 Willows Rd., Suite 140\nRedmond, WA 98052
Phone: 425 881-2606
Internet: www.stockcharts.com
Email: support@stockcharts.com
Product: Educational seminar covering features of StockCharts.com
On Friday, September 20, 2013, I attended the one-day course SCU 101 (at the Sentry Centers in New York City) presented by Chip Anderson, president and founder of StockCharts.com, and Greg Schnell, author of The Canadian Technician. This introductory course was specifically designed for users of the StockCharts.com website to help them maximize their working knowledge of the site. Through a combination of technical tools, market commentary, and educational material, the site aims to help users make high-quality investing decisions. The course focused entirely on explaining the key website features, nuances, and the numerous charting capabilities of the software. The website has been around since 1999 and many upgrades over the years have enhanced its usefulness and effectiveness."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-51-52-quick-scan-stockcharts-university-by-leslie-n-masonson-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-51-52-quick-scan-stockcharts-university-by-leslie-n-masonson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-51-52-quick-scan-stockcharts-university-by-leslie-n-masonson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov32560tr,d,"{""minimum-quantity"":""1"",""path"":""ch4a2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:4 (53-56, 60-61): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Melvin Dickover’s article in this issue, “Evidence-Based Support & Resistance.” Here we present the April 2014 Traders’ Tips code with possible implementations in various software.
Code for OmniTrader is already provided in Melvin Dickover’s article. Subscribers will find that code at the Subscriber Area of our website, www.Traders.com. (Click on “Article Code” from the S&C menu.) Presented here is an overview of possible implementations for other software.
Traders’ Tips code is provided to help the reader implement a selected technique from an article in this issue. The entries are contributed by various software developers or programmers for software that is capable of customization.
Readers will find the April 2014 Traders’ Tips code and formulas at our website, Traders.com, in the Traders’ Tips area. Here, you can read some discussion of the technique’s implementation by the Traders’ Tips contributors as well as some example charts.
To locate Traders’ Tips at our website, www.Traders.com, click on the link on our main menu at the top of the homepage, or scroll down to the “Current articles” section and click on the Traders’ Tips tab."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-53-56-60-61-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-53-56-60-61-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-53-56-60-61-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov328leto2,d,"{""minimum-quantity"":""1"",""path"":""ch4a2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:4 (8–9): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
SELECT SECTOR STRATEGY
Editor,
Thank you for another great article in the Janu-ary 2014 issue, the one on the Select Sector strategy using State Street Global Advisors SPDRs (“Outperform The Market With Sector ETFs” by Todd D. Winkler and Steven A. Winkler). However, when I try to access year-end results from the State Street website, it doesn’t allow me entry.
Can you provide percentage results for 2013 or advise what is needed to obtain the data another way? In the future, I’ll be sure to accumulate data monthly myself.
Also, I wonder how this strategy would work on the “sell in May and go away” strategy? That could be interesting! Thanks so much for your help.
Bill\nWashington, ME
Author Todd Winkler replies:
If you’re having trouble using the State Street Global Advisors (SSgA) website (www.ssga.com), simply go to a site such as NASDAQ.com, where you can easily download data in spreadsheet form. You can then quite easily calculate yearly returns from that."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-8-9-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-8-9-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-4-8-9-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov321trab,d,"{""minimum-quantity"":""1"",""path"":""ch5m2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:5 (10-14): The Truth About Stock Trading And Chat Rooms by Josh DiPietro"",""caption-linebreaks"":""The Truth About Stock Trading And Chat Rooms by Josh DiPietro
Look Before You Leap
If you think that joining a trading or chat room will show you how to trade like traders on Wall Street, think again. Here’s what you should really be doing.
In 1998, I lit up my first trading screens. I began online trading in the comfort of my home in sunny San Diego. Soon after that, I was eagerly searching for online trading rooms and stock chat rooms. I was seeking a knowledge center where I could absorb stock-picking information from experienced, professional daytraders.
I didn’t know a lot back then, but I was certain of one thing: the holy grail for any greenhorn would be live video and a real-time order execution feed to an expert stock trading floor. Later on I learned that was naive, sometimes fatally so. And it was also typical. Novice traders are understandably driven to seek guidance, even though they have not forged their own successful trading systems. I wasn’t the first beginner to search for live trading rooms, desperately hoping for some much-needed magic. In this article, I’m going to demonstrate how those trading rooms either don’t exist, or in the cases where they do, how they are seriously misleading. In some cases, they are even illegal.
THE EARLY YEARS
In my early trading days, I didn’t know any better. After reading through a library of trading books and attending some pricey seminars, I still didn’t know what I was doing."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-10-14-the-truth-about-stock-trading-and-chat-rooms-by-josh-dipietro-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-10-14-the-truth-about-stock-trading-and-chat-rooms-by-josh-dipietro-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-10-14-the-truth-about-stock-trading-and-chat-rooms-by-josh-dipietro-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov321fufo1,d,"{""minimum-quantity"":""1"",""path"":""ch5m2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:5 (15): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
NEW DATA FEES
What will the new CME data fees mean to retail traders?
Throughout my decade in the futures industry, the CME Group (and one of its predecessors, the Chicago Mercantile Exchange) has made relentless strides in technology; the organization’s efforts have been incremental in the process of bringing the futures markets to the masses. However, recent actions taken by the CME Group will likely force the commodity industry to take a few steps in the opposite direction. Higher fees for traders, but more notably, nearly crippling costs for brokerage firms and platform vendors might leave an already struggling industry in dire straits.
Data fees charged to retail traders (nonprofessional)
Much to the dismay of industry insiders, on March 1, 2014, the CME began to en-force its new data fee policy to any newly opened trading account that qualifies as nonprofessional."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-15-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-15-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-15-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov321trsi,d,"{""minimum-quantity"":""1"",""path"":""ch5m2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:5 (16-23): Trading Signals With Darknet Channels by John Broussard and Jay Kaeppel"",""caption-linebreaks"":""Trading Signals With Darknet Channels by John Broussard and Jay Kaeppel
I Can See You!
How can patterns not be visible to the naked eye when the chart is in front of you? You’ll be surprised. Here’s a process that identifies such patterns and identifies trading signals.
Technical indicators use past stock data to generate buy and/or sell signals in the stock. Two well-known technical indicators are moving average crossovers and moving average convergence/divergence (MACD). But there is a lag between price action and the buy & sell signals that these indicators generate. Our goal is to use price pat-tern matching to come up with a method that has the potential to generate buy & sell signals with little or no lag. This involves comparing known bullish and bearish patterns against the latest stock data, and as soon as the pattern is recognized, a buy or sell signal will be generated.
In this article, we will detail a process for objectively identifying buying opportunities in tradable securities using a mathematical process that we refer to as Darknet. This process has been dubbed Darknet because it identifies a trade pattern in a bar chart that is hidden from direct view; that is, not visible to the naked eye. This pattern-finding method can be used to identify trading signals for any tradable security or call option on a security."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-16-23-trading-signals-with-darknet-channels-by-john-broussard-and-jay-kaeppel-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-16-23-trading-signals-with-darknet-channels-by-john-broussard-and-jay-kaeppel-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-16-23-trading-signals-with-darknet-channels-by-john-broussard-and-jay-kaeppel-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov322raex,d,"{""minimum-quantity"":""1"",""path"":""ch5m2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:5 (24-26): Range Expansions & Contractions, Part 3 by Dirk Vandycke"",""caption-linebreaks"":""Range Expansions & Contractions, Part 3 by Dirk Vandycke
Connecting The Dots
In this third and final part of a series that looks at expansions & contractions to gauge divergences, we look at how to apply the Chartmill bull indicator to trading.
I started this series of articles by explaining the difference between extrinsic and intrinsic divergence. I then discussed how extreme percentage days tend to close near their extremes in the direction of the move. Any divergence from this is rare. Since these kinds of divergences tend to cluster, I take a running sum of them. This forms the backbone of the Chartmill bull and bear indicators. Strong trend-ing days are measured relative to historical characteristics. The use of running percentiles instead of averages makes these indicators dynamic and adaptive, unlike other divergence indicators. In this final article of this series, I will discuss the usefulness and accuracy of the Chartmill bull and bear indicators using examples.
FIRST THINGS FIRST
In parts 1 and 2, you saw that, under normal circumstances, a weak close near the low of the day tends to accompany a weak day showing a relatively large price drop. Likewise, strong closes near the high of the day appear to be strongly correlated with strong days and bring along a relatively big price appreciation. Any repeated deviation from that pattern spells a top in the latter case or bottom in the former."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-24-26-range-expansions-contractions-part-3-by-dirk-vandycke-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-24-26-range-expansions-contractions-part-3-by-dirk-vandycke-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-24-26-range-expansions-contractions-part-3-by-dirk-vandycke-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov32232ex,d,"{""minimum-quantity"":""1"",""path"":""ch5m2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:5 (27, 32): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
SELL IN MAY AND GO AWAY…
A lot of my students subscribe to and receive the Stock Trader’s Almanac published each year by Jeffrey Hirsch. In this treasure trove, Hirsch and his father Yale Hirsch discuss seasonality and cyclical trends that have occurred in past years. They also look at the best time, historically, to be long or short the market and sectors during the course of the year. One of the approaches covered in the Stock Trader’s Almanac involves the time-tested strategy “Buy in November, and go away (sell) in May.” One of my students approached me recently and asked, “How can I effectively sell in May using options instead of shorting the stock or index markets?”
I believe the answer to this question is twofold: using options as a way to protect long stock positions, and using options as a way to speculate that a drop will occur in the markets. I will analyze each of these strategies against the SPDR S&P 500 exchange traded fund (SPY). SPY can be used to protect long positions that are correlated with the S&P 500 and also can be used to profit from a bearish market move."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-27-32-explore-your-options-by-tom-gentile-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-27-32-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-27-32-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov322wirs,d,"{""minimum-quantity"":""1"",""path"":""ch5m2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:5 (28-32): Wilder’s RSI: Extending The Time Horizon by Mike B. Siroky"",""caption-linebreaks"":""Wilder’s RSI: Extending The Time Horizon by Mike B. Siroky
There’s No Rush
The relative strength index (RSI) is a popular indicator among traders, but how do you figure out how many price bars to include in its calculation, or how high is high, or how low is low? Here’s one way to do it.
In his 1978 book New Concepts in Technical Trading Systems, J. Welles Wilder described several new indicators, including the relative strength index (RSI). Since its introduction, the RSI has achieved widespread use and popularity among stock traders. Wilder himself pointed out some of the advantages offered by the RSI, the most important being a standardized scale of zero to 100.
However, two important questions need to be addressed when using the RSI:
1. How high is high and how low is low on the RSI?
2. How do you select the proper number of bars to use in calculating RSI for the time frame of interest to the trader or investor?
As to the first question, Wilder held the opinion that a value of 70 indicated a turning point to the downside in the near future. This signal would be strengthened if there was also a divergence between RSI and price. Conversely, an RSI value below 30 indicated a turning point to the upside in the near future, also strengthened by a divergence with price. The 70/30 levels are incorporated in most current trading platforms as the default values and often interpreted as overbought or oversold, respectively. However, Wilder himself never used the terms overbought or oversold. In fact, these terms only have meaning in a stock or market that is nontrending or oscillating in a range. Strongly trending stocks or markets, in contrast, can stay overbought or oversold for long periods of time."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-28-32-wilder-s-rsi-extending-the-time-horizon-by-mike-b-siroky-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-28-32-wilder-s-rsi-extending-the-time-horizon-by-mike-b-siroky-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-28-32-wilder-s-rsi-extending-the-time-horizon-by-mike-b-siroky-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323qaby2,d,"{""minimum-quantity"":""1"",""path"":""ch5m2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:5 (33): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
TRADING SETUPS
Mr. Bright, I often hear the term trade setups and have read a few articles that purport to show good setups. However, when I take away the part that talks about the good portion of the setup, I see things that are ambiguous to me. In several cases, the same setups could have, and actually did, go very badly. In your experience, are there really such things as setups with quantifiable results? My group tends to rely on these things, and yet I seem to be the only one making money. I don’t make much, but I don’t lose, either. Any help would be appreciated.
Oh boy, did you ever hit a hot button with this one. I will do my best to be as discreet and restrained as possible. In my history, so many setups are touted after the fact, much like showing off the fish you caught, without sharing the number of wasted hours and money on the fish you did not catch. I guess another parallel would be the horse-race bettor who brags about the wins, but tears up the losing tickets. (Note: Please, no emails on this; trust me, I understand the psychology of this type of thinking)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-33-q-a-by-don-bright-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-33-q-a-by-don-bright-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-33-q-a-by-don-bright-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323rere,d,"{""minimum-quantity"":""1"",""path"":""ch5m2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:5 (34-38): The Real Reason Traders Lose Money by John F. Ehlers and Ric Way"",""caption-linebreaks"":""The Real Reason Traders Lose Money by John F. Ehlers and Ric Way
Darn Those Deviations!
Why do traders lose money? The answer may surprise you. Here’s a look at the core of the problem and how you can arrive at a profitable strategy.
Most traders lose money. The reasons given cover a myriad of excuses, from poor self-esteem to poor risk control to just having the wrong trading system. While any of these may contribute to poor performance, they don’t go to the heart of the matter. In this article, we will demonstrate the core of the problem using a pure mathematical approach.
We will not only show you the problem, but we’ll also show you mitigating techniques that don’t stress your capitalization requirements or your workload to arrive at a profitable trading strategy. In fact, depending on how you currently trade, your analysis workload can be significantly reduced.
IS TRADING GAMBLING?
To answer this question, we need to first define gambling and who the winners and losers are. In Las Vegas, there is no question that the house is invariably the winner. How else can they afford all the neon lights and at-tractions? They win because the odds of the game are in their favor. Take a simple roulette bet as an example. The roulette wheel has 36 numbers. Half are black and half are red. If you bet on red or black, the payout is 1. That would make it a fair game, all other things being equal. However, in American roulette there is also a green “0” pocket and a green “00” pocket. These two extra pockets are neither red nor black. Having two pockets that are neither red nor black changes the odds to be 1.111-to-1 that the house will win."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-34-38-the-real-reason-traders-lose-money-by-john-f-ehlers-and-ric-way-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-34-38-the-real-reason-traders-lose-money-by-john-f-ehlers-and-ric-way-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-34-38-the-real-reason-traders-lose-money-by-john-f-ehlers-and-ric-way-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323bofo,d,"{""minimum-quantity"":""1"",""path"":""ch5m2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:5 (39): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-39-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-39-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-39-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov324insw,d,"{""minimum-quantity"":""1"",""path"":""ch5m2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:5 (40-47): Interview: Swing Trading With Sylvain Vervoort by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Swing Trading With Sylvain Vervoort by Jayanthi Gopalakrishnan
Sylvain Vervoort’s career started with Bell Telephone, which was in those days an ITT-owned telecommunications company. As a support engineer for private communication systems in export sales, he was introducing systems and training people in many parts of the world. He later moved onto CERBERUS, a Swiss security company bought by Siemens in 1998, where he was responsible for product management. There, he was involved with computers and software since the early days of microcomputing after the invention of the transistor computer and the birth of the Intel 8008 microprocessor.
His first computer was a homemade copy of the Tandy TRS80 (which was made by Radio Shack) with the maximum allowable amount of memory for the time — 48 KB of RAM. He has always been fascinated by computer hardware, computer programming, and later on, technical analysis of the stock market. His book Capturing Profit With Technical Analysis, published by Marketplace Books, received the AXIOM Business Books Awards bronze medal in 2010. His DVD Ground-Breaking Band Indicators includes an autotrading expert system. We have published a couple dozen articles by him in this magazine, including a popular seven-part series last year on indicator rules for a swing trading system. Many of his S&C articles over the years have received our Readers’ Choice Award in the “favorite articles” category, as voted on by S&C readers. You can follow his weekly technical analysis of the S&P 500 index and the forex pair EUR/USD at his website, www.stocata.org.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan interviewed Sylvain Vervoort via email in mid-March 2014 about how to profit from swings in the markets.
Sylvain, tell us about how you got interested in technical analysis.
The European Option Exchange (EOE) was founded in 1978 in Amsterdam as a futures and options exchange. I believe it was 1979 when an enthusiastic stock trading colleague at work talked to me about the possibility of trading options. He convinced me that this was the place to be — make a lot of money with little starting capital.
With a group of other colleagues, we gathered some 400,000 Belgian francs (some 10,000 US dollars) to start an option investment club. I was going to make the trades based on technical analysis, and everybody would become rich in no time! A few months later, the money was gone. Luckily, we continued our meetings at a nearby Chinese restaurant, so it wasn’t all sad."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-40-47-interview-swing-trading-with-sylvain-vervoort-by-jayanthi-gopalakrishnan-29.gif"",""height"":""774"",""width"":""585""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-40-47-interview-swing-trading-with-sylvain-vervoort-by-jayanthi-gopalakrishnan-33.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-40-47-interview-swing-trading-with-sylvain-vervoort-by-jayanthi-gopalakrishnan-34.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov324insw1,d,"{""minimum-quantity"":""1"",""path"":""faarfr206"",""ysw-page-title"":""Stocks & Commodities V. 32:5 (40-47): Interview: Swing Trading With Sylvain Vervoort by Jayanthi Gopalakrishnan"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-40-47-interview-swing-trading-with-sylvain-vervoort-by-jayanthi-gopalakrishnan-35.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-40-47-interview-swing-trading-with-sylvain-vervoort-by-jayanthi-gopalakrishnan-36.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-40-47-interview-swing-trading-with-sylvain-vervoort-by-jayanthi-gopalakrishnan-37.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov324doyo,d,"{""minimum-quantity"":""1"",""path"":""ch5m2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:5 (48-50): Do You Believe In Magic? by Brent Donnelly"",""caption-linebreaks"":""Do You Believe In Magic? by Brent Donnelly
How reliable is the link between the Fed’s balance sheet and US equities? Find out here.
...I worry about the effects on the long-run stability and efficiency of our financial system if the Fed attempts to substitute its judgments for those of the market. Such a regime would only increase the unhealthy tendency of investors to pay more attention to rumors about policymakers’ attitudes than to the economic fundamentals that by rights should determine the allocation of capital.\n—Ben Bernanke, October 15, 2002
Quantitative easing (QE) is a fairly new development in the financial markets. Hence, analysts should be open-minded and maintain healthy skepticism when it comes to attributing causal links between the size of the Federal Reserve’s balance sheet and the level of various financial asset prices and inflation. In contrast to such healthy skepticism, the market has generally tended to adopt a religious fervor around QE and then quickly abandon that fervor once the empirical evidence fizzles. There have been many examples of this since 2008.
QUANTITATIVE EASING AND ASSET PRICES
First, the market believed strongly in 2008 and 2009 that US QE would lead to a substantial depreciation of the US dollar. The announcement of QE1 in March 2009 encouraged that viewpoint as the US dollar cratered for most of 2009. But then, very quickly, the relationship between the US dollar and the Fed’s balance sheet (if there ever was one) fizzled (Figure 1)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-48-50-do-you-believe-in-magic-by-brent-donnelly-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-48-50-do-you-believe-in-magic-by-brent-donnelly-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-48-50-do-you-believe-in-magic-by-brent-donnelly-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov325prre2,d,"{""minimum-quantity"":""1"",""path"":""ch5m2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:5 (52-55): Product review: VectorVest 7.0 by Matt Blackman"",""caption-linebreaks"":""Product review: VectorVest 7.0 by Matt Blackman
VectorVest, Inc.
20472 Chartwell Center Dr.,\nCornelius, NC 28031
Phone: 888 658-7638
Internet: www.vectorvest.com
Minimum system requirements: Microsoft Windows with high-speed broadband connection recommended. Can be run on a Mac in Boot Camp.
Price: See http://www.vectorvest.com/products/vv7-us.aspx for details.
VectorVest 7 (US version) is a subscription-based stock analysis and portfolio-management software program that provides the active trader or investor with a wide array of powerful tools to analyze, sort, rank, and graph stocks from a database of more than 8,000 stocks with more than 16 years of data. Three versions are available: end-of-day, intraday (15-minute delayed data), or real-time. (VectorVest also offers software for a number of other international markets. More information on this can be found at http://www.vectorvest.com/products.aspx). For this review, I tested the real-time version on a custom desktop running Windows XP Service Pack 3 with an Intel Dual Core 2.13 GHz processor and 3 GB RAM, as well as on a Toshiba notebook running Windows 8.1 with an Intel i5 1.7 GHz 64-bit processor and 6 GB RAM using a 20 megabyte-per-second fiber optic Internet connection.
PROTRADER 7 SEARCHES
ProTrader 7 Searches is a plugin module that offers technical traders more than 35 prebuilt searches for long and short trades to match your preferred technical trading or investment style (Figure 1). Examples include buy or sell signals based on Bollinger Bands, moving average convergence/divergence (MACD), moving averages (MA), stochastics, average directional index (ADX), and breaking or retracing support or resistance. You can customize criteria and combine two or more indicators to generate more specific conditions."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-52-55-product-review-vectorvest-7-0-by-matt-blackman-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-52-55-product-review-vectorvest-7-0-by-matt-blackman-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-52-55-product-review-vectorvest-7-0-by-matt-blackman-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov325trti3,d,"{""minimum-quantity"":""1"",""path"":""ch5m2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:5 (55-62): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Donald W. Pendergast Jr.’s article in the 2014 Bonus Issue of STOCKS & COMMODITIES, “A Trading Method For The Long Haul.” Here we present the May 2014 Traders’ Tips code with possible implementations in various software.
The 2014 Bonus Issue of STOCKS & COMMODITIES magazine was mailed to paid Subscribers in late February 2014. To get a copy of the Bonus Issue, you can become a subscriber to StockS & commoditieS magazine by visiting Traders.com or call-ing 800-TECHNICAL (800 832-4642).
Traders’ Tips code is provided to help the reader implement a selected technique from a selected article in this magazine. The entries are contributed by various software developers or programmers for software that is capable of customization.
Readers will find the May 2014 Traders’ Tips code and formulas discussed here at our website, Traders.com, in the Traders’ Tips area. In the following pages, you can read some discussion of the technique’s implementation by the Traders’ Tips contributors as well as some example charts.
To locate Traders’ Tips at our website, Traders.com, click on the link on our main menu at the top of the homepage, or scroll down to the “Current Articles” section and click on the “Traders’ Tips” tab."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-55-62-traders-tips-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-55-62-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-55-62-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov327leto,d,"{""minimum-quantity"":""1"",""path"":""ch5m2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:5 (7-9): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
OPTION INCOME STRATEGIES
Editor,
Thank you very much for the article in your February 2014 issue by Giorgos Siligardos, “Static Option Income Strategies: Do They Work?”
I am one of those option traders who use this particular option income strategy (that is, iron condors). I learned a lot from reading the piece and I think every option trader should read it. So many of the option training materials and classes out there are done by market-making companies or major industry participants outside the realm of option retail traders. As a result, there is little incentive to actually teach retail traders the critical and most important aspects of option trading. They give only basic information and there is little in-depth analysis of the markets. In my opinion, it’s like the casino teaching you how to beat them at their own game, and no casino would do that.
Thanks again for the article. It was a welcome read. I would have liked it if the author had offered more in the way of solutions. I have been successful trading static option income strategies (such as the systematic short iron condor, or SSIC), but I have also lost money trading them. I have only about a few years’ experience trading these strategies, so I need solutions. I hope that Siligardos will put out more solutions and alternatives to the SSIC strategies in upcoming articles.
Please do not hesitate to point me to the best option training out there, as I am constantly seeking ways to improve my trading.
Chimah"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-7-9-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-7-9-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-5-7-9-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov321eval,d,"{""minimum-quantity"":""1"",""path"":""ch6j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:6 (10-15): Evaluating Algorithmic Trading Signals by Giorgos E. Siligardos, PhD"",""caption-linebreaks"":""Evaluating Algorithmic Trading Signals by Giorgos E. Siligardos, PhD
Ahead Of The Curve
Are you using an objective, unbiased, and globally applicable method to evaluate the performance of your algorithmic trading signals? If not, then this article may be your cup of tea.
There are two main reasons why algorithmic trading systems (ATS) are favored by many traders. The first is the absence of emotions in the world of computers. The second is that when an ATS is organized properly, it maximizes the earnings/labor ratio — a direct application of the “If you work for a living, don’t kill yourself working” adage from the 1966 movie The Good, The Bad And The Ugly.
In this article, I will first explain the need to differentiate the evaluation of the trading signals of a system from the evaluation of the system as a whole. I will then elaborate on the most appropriate method to construct an unbiased performance curve.
TRADING SIGNALS VS. TRADING SYSTEM
Every ATS is eventually based on two pillars. The first one provides the type of orders (buy/sell, sell short, cover) and the time those orders should be taken (that is, timing). The second pillar provides the amount (volume) of the tradable to trade. When your testing is a mixture of these two pillars, you can’t be sure of the reason behind the profitability of the results. In other words, there is a key difference between testing the performance of your algorithmic trading signals and testing the performance of a system that trades those signals with specific money allocation rules."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-10-15-evaluating-algorithmic-trading-signals-by-giorgos-e-siligardos-phd-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-10-15-evaluating-algorithmic-trading-signals-by-giorgos-e-siligardos-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-10-15-evaluating-algorithmic-trading-signals-by-giorgos-e-siligardos-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov321mein,d,"{""minimum-quantity"":""1"",""path"":""ch6j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:6 (16-19): Measured Income by Gareth Burgess"",""caption-linebreaks"":""Measured Income by Gareth Burgess
Uncharted Territory
When trying to make trading decisions, we often find ourselves staring blindly at a chart. Here’s one way to logically look at the markets and make trading decisions based on your own findings.
Making a position as a day trader in your chosen market is often like a walk down the stairs in the dark — you know the next step should be there, but only when you place your foot there will you know for sure. Trading is much the same. Until the price reaches your anticipated target, you never know for sure that the market will get there. You hang in there with a certain degree of fear because experience and charts tell you that big moves happen and therefore your profit should be greater. You want to hang on, you have a profitable position, and that position is protected by your stop. Time passes, and for no apparent reason, you cannot wait for the market to move any further. Uncertainty strikes, and you close out your position only to see the market eventually continue to move up in the expected direction. On the flip side, you know from experience that profit can turn into a loss.
FINDING THE BALANCE
Where do you draw the line between profit, bigger profits, and no profit? The one thing that is certain is that the battle with uncertainty remains constant. Some traders use cycle analysis to try and anticipate market turns. Banks and institutions know, through research, that some companies and hedge funds transfer money around the globe at certain times on the same day each week or month, causing the markets to move in one direction. The futures markets often see gaps in prices. Chart patterns also cause markets to move toward the so-called measured target. Whatever the reason, global markets experience days with larger moves in one direction than on other days."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-16-19-measured-income-by-gareth-burgess-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-16-19-measured-income-by-gareth-burgess-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-16-19-measured-income-by-gareth-burgess-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov322sldi,d,"{""minimum-quantity"":""1"",""path"":""ch6j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:6 (20-25): Slope Divergence: Capitalizing On Uncertainty by Perry J. Kaufman"",""caption-linebreaks"":""Slope Divergence: Capitalizing On Uncertainty by Perry J. Kaufman
Which Direction Is It Going?
It’s a classic chart pattern and many traders use it, yet divergence patterns that could generate profits are easy to miss. Here’s one way to automate identifying profit-making divergence patterns.
A divergence occurs when two related markets — such as Apple (AAPL) and Hewlett-Packard (HP), or the S&P 500 index and the utilities index — move away from each other. Traders have every expectation that these markets will come back together because they are driven by the same underlying fundamentals, which, in most cases, is the health of the economy.
TECHNICAL DIVERGENCE
Technical divergence is when the price of a stock and a momentum indicator calculated on that stock move away from each other. In the chart in Figure 1, the 14-day stochastic indicator (smoothed once) is applied to the S&P 500 SPDR (SPY). You’ll see that there are three occasions where a divergence took place: two where prices rose and the stochastic fell; and one, in the center, where the stochastic rose and prices fell. A bearish divergence, which is when prices rise, is expected to be resolved by a price decline, and a bullish divergence with a price rise. Therefore, expectations are that the momentum determines the direction. This is true regardless of which momentum indicator you use — such as a stochastic oscillator, the relative strength index (RSI), or the moving average convergence/divergence (MACD)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-20-25-slope-divergence-capitalizing-on-uncertainty-by-perry-j-kaufman-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-20-25-slope-divergence-capitalizing-on-uncertainty-by-perry-j-kaufman-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-20-25-slope-divergence-capitalizing-on-uncertainty-by-perry-j-kaufman-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov322exyo,d,"{""minimum-quantity"":""1"",""path"":""ch6j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:6 (26-27): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
FIXING A LOSING STOCK POSITION
Can I fix a losing stock position with options?
Every time the market hands us a few IPOs gone bad, I get asked this question. I answer, “Yes, you can,” and then the real question comes: “Can I fix the losing stock position without adding any extra risk or cost to the position?” Now that’s a challenge! Challenge accepted, because by using options, you can accomplish all of the questions asked with a simple option strategy that if properly placed, will not cost or add additional risk to the trade. You can also lower your breakeven on the trade, and even turn a profit before the stock makes it back to its original purchase price. Do I have your attention now? Let’s take a look at one stock gone wrong this year, Twitter (TWTR).
TWTR traded its first day between $44 and $50. Since then, it has moved up above $70 a share in December before dropping below $50 recently (Figure 1)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-26-27-explore-your-options-by-tom-gentile-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-26-27-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-26-27-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov322bofo,d,"{""minimum-quantity"":""1"",""path"":""ch6j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:6 (27): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books for Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-27-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-27-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-27-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov322reyo,d,"{""minimum-quantity"":""1"",""path"":""ch6j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:6 (28-30): Recovering Your Fortune by Azeez Mustapha"",""caption-linebreaks"":""Recovering Your Fortune by Azeez Mustapha
After A Massive Blow
Seeing your trading account get destroyed is never fun. But instead of getting depressed about it, you could spend your time thinking about why it got destroyed and learn from it. Here is some advice on rebuilding a portfolio.
If you have endured significant losses in your portfolio and it has been reduced to, say, anything from 20% to 70% of the original amount or even more, you can recover what you have lost. It’s a long-term goal, but it’s possible. It would only require that you do the right things to actualize your long-term goal, coupled with unending patience.
As you keep trying to quintuple your portfolio, you may be neglecting the trading principles that can safeguard your portfolio, so you often get surprised by the cunningness of price movements.
EXPERIENCING A HUGE DRAWDOWN
Many people turn to trading for financial freedom, but at some point, they start experiencing the ups and downs of trading. This is not unique to trading. Many people faced hard times during the recent credit crunch."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-28-30-recovering-your-fortune-by-azeez-mustapha-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-28-30-recovering-your-fortune-by-azeez-mustapha-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-28-30-recovering-your-fortune-by-azeez-mustapha-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323qaby3,d,"{""minimum-quantity"":""1"",""path"":""ch6j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:6 (31): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
VOLUME AND OPENING-ONLY ORDER PRICES
Don, I have followed your posts on several web boards for many years, and I know that many traders at your company use strategies that include opening-only orders (OPG) and market-on-close (MOC) orders.
I’m about to share a strategy with a good friend and trader mate (who has my trust) that involves OPGs to open orders and MOCs to close orders. The aver-age daily volumes of the stocks that the strategy trades can be as low as 200,000. The maximum volume of orders we use is around 6,000 shares per stock and trade. Could there be a conflict in sharing that strategy in light of the execution quality and prices I will get after I shared that strategy? Could this kind of volume of an individual order in thinner stocks such as one that trades 200,000 per day on aver-age worsen my performance due to bad executions and worse prices I will get for my trades? I can imagine that each morn-ing, many traders at Bright Trading send OPG orders to the NYSE for lower-volume stocks. How do you handle that? Do you see a disadvantage? —Mario J.
Thanks for following the various web forums, and I hope you read this magazine as well! You can do a search on the STOCKS & COMMODITIES website at Traders.com for previous articles regarding opening-only orders (OPG) and market-on-close orders (MOC)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-31-q-a-by-don-bright-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-31-q-a-by-don-bright-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-31-q-a-by-don-bright-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323treu,d,"{""minimum-quantity"":""1"",""path"":""ch6j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:6 (32-35): Trading Eurodollar One-Minute Bar Charts, Part 1 by Dennis Meyers, PhD"",""caption-linebreaks"":""Trading Eurodollar One-Minute Bar Charts, Part 1 by Dennis Meyers, PhD
Breaking Beyond
How do you determine when a price trend starts? The velocity of price movement can have something to do with it. Here’s one way you can measure volatility.
Many times, prices meander without any notable trend, and this is considered noise. During these times, you don’t want to trade because of the cost of whipsaw losses that would occur from this type of price action. When a price trend finally starts, the velocity of that price trend moves above a minimum threshold noise value.
In this article, I will introduce my nth-order fading memory polynomial velocity concept. The reasoning behind this type of system is to only trade when the price trend velocity is above a certain threshold.
The velocity-based system that I will use in this article to trade the eurodollar futures contract is called the nth-order fading memory adaptive polynomial (FADM) velocity strategy. The word adaptive is used because the polynomial inputs change over time, adapting to the changing trading patterns of the eurodollar futures contract. The nth-order fading memory adaptive polynomial velocity strategy has a number of unknown inputs that need to be determined before using this strategy to trade. These unknown inputs to the fading memory polynomial are the polynomial order; the optimum number of prices you need to determine the coefficients of the polynomial; and the velocity thresholds. Thus, the velocity system would only issue a trade when certain velocity thresholds above “noise” levels are crossed."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-32-35-trading-eurodollar-one-minute-bar-charts-part-1-by-dennis-meyers-phd-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-32-35-trading-eurodollar-one-minute-bar-charts-part-1-by-dennis-meyers-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-32-35-trading-eurodollar-one-minute-bar-charts-part-1-by-dennis-meyers-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323inna,d,"{""minimum-quantity"":""1"",""path"":""ch6j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:6 (36-41): Interview: Navigating The Markets With Josh DiPietro by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Navigating The Markets With Josh DiPietro by Jayanthi Gopalakrishnan
Keep Up With The Pulse
Josh DiPietro knows about the challenges traders will face on the road to trading successfully. He wrote about it in his 2009 book The Truth About Day Trading Stocks: A Cautionary Tale About Hard Challenges, based on first-hand experiences. He helps aspiring traders meet those challenges head-on through his mentorship program at his company, DayTraderJosh.com, and through his trading rooms there. He also regularly passes out real-world advice in his live speaking engagements, appearing frequently at MoneyShow and Traders Expo conferences.
Here, he shares with us some of his professional insight into the real world of trading and what short-term traders just starting out may need to know. STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Josh DiPietro by phone on April 3, 2014 on techniques that work when intraday trading.
Josh, we last interviewed you for this magazine about four years ago. Since then, have you made any significant changes in the way you trade, or have you seen any significant changes in the markets?
When it comes to training or giving advice to new traders, I have not made any changes. But in terms of my personal trading, I’ve gravitated more toward swing trading. I’m still intraday trading, but I swing trade more than I intraday trade. The main reasons for that are I’m more experienced and my capital permits it now. The more capital you have, the more you can swing trade and intraday trade.
My general system of trading has not changed much. I still use the same broker, the same general reverse-countertrend trading strategy, where I’m shorting whenever I break through resistance, and going long after support, and things like that. I am even trading some of the same stocks, like IBM and Goldman Sachs, as long as they’ve stayed between $100 and $250. Virtually none of that has changed; consistency is important with my system."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-36-41-interview-navigating-the-markets-with-josh-dipietro-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-36-41-interview-navigating-the-markets-with-josh-dipietro-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-36-41-interview-navigating-the-markets-with-josh-dipietro-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov324prre5,d,"{""minimum-quantity"":""1"",""path"":""ch6j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:6 (42-44): Product review: Harmonic Pattern Collection by S&C Staff"",""caption-linebreaks"":""Product review: Harmonic Pattern Collection by S&C Staff
DIVERGENCE SOFTWARE, INC.
PO Box 12021, Burke, VA 22009-2021
Internet: www.sr-analyst.com
Email: support@sr-analyst.com
Phone: 703 690-1744
Product: Pattern-detection add-in software for eSignal
System requirements: eSignal v.11 64-bit, Windows 7 or 8; 32GB RAM recommended
Price: $120/month
Want to trade using harmonic patterns such as Gartley, butterfly, or crab? The biggest problem is just finding them. Divergence Software, a third-party eSignal developer, has the answer. Harmonic Pattern Collection is an eSignal add-on that comes with nine watchlist-based pattern indicators and nine chart-based pattern indicators. Typical usage would be to monitor a basket of securities for pattern activity using the watchlist indicators and then link the watchlist to a chart that has the corresponding chart pattern indicators loaded. When a new potential or pending pattern is identified on the watchlist, just click on that watchlist row and the actual pattern information will be displayed in the linked chart.
INTRODUCTION
If you’re not familiar with the class of patterns called harmonic patterns, here’s a quick overview. It is based on the premise that if price movements occur in a series of changes that have a Fibonacci relationship, once the pattern completes, you can have some idea of where price will move. Figure 1 is called a bearish butterfly pattern. At point D, which is the conclusion of the pattern, you expect that price will turn down, and in this example it does."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-42-44-product-review-harmonic-pattern-collection-by-s-c-staff-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-42-44-product-review-harmonic-pattern-collection-by-s-c-staff-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-42-44-product-review-harmonic-pattern-collection-by-s-c-staff-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov324fufo,d,"{""minimum-quantity"":""1"",""path"":""ch6j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:6 (45): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
“CASH-SETTLED” FUTURES CONTRACTS
What are “cash-settled” futures con-tracts? Are there any special considerations when trading them?
By definition, a futures contract is an agreement between a buyer and a seller to exchange the underlying asset at a specified price and at a specific date in the future. For example, the buyer of a December 2014 corn futures contract is agreeing to purchase 5,000 bushels of corn at contract expiration in the middle of December. The person on the other side of the trade, the seller of a December 2014 corn, is agreeing to make delivery to the buyer at that time. However, very few traders actually hold their futures contracts to expiration. Instead, they simply offset their position (by taking the opposite action that was taken to enter the trade) and move on to the next trading venture.
Because the typical futures contract represents an actual cash market transaction at its expiration, the futures price and cash price of the underlying commodity are tied closely together. In essence, this relationship is the glue that keeps market pricing fair and efficient (at least in the long run). Nevertheless, there are a handful of futures contracts that are not tied to a deliverable asset at expiration; these contracts are known as cash-settled futures contracts."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-45-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-45-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-45-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov324prre6,d,"{""minimum-quantity"":""1"",""path"":""ch6j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:6 (46-48): Product review: Mechanical Trading Systems by S&C Staff"",""caption-linebreaks"":""Product review: Mechanical Trading Systems by S&C Staff
Wave59 Technologies
Website: www.wave59.com
Email: support@wave59.com
Product: Trading course manual
Price: $1,995
To create a mechanical trading system, you need to encode rules and you need to let those coded rules make your trades. Years of doing this gave Wave59 creator Earik Beann insight into which set of trading rules work and which don’t. It also gave him the knowledge of what indicators or methods, such as stop-losses, are the most profitable. Earik Beann’s course Mechanical Trading Systems (MTS), which is really a book, deals with a subject that few have attempted. It’s bound to have an impact on most traders, and its contents will surprise most of you.
LET'S BEGIN
To provide some clarification, suppose you are trading a moving average cross-over system. You’ve chosen a certain number of periods for the faster moving average and another for the slower moving average. Have you found that sometimes it works and sometimes it doesn’t?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-46-48-product-review-mechanical-trading-systems-by-s-c-staff-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-46-48-product-review-mechanical-trading-systems-by-s-c-staff-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-46-48-product-review-mechanical-trading-systems-by-s-c-staff-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov32560tr1,d,"{""minimum-quantity"":""1"",""path"":""ch6j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:6 (51-56, 60): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Perry Kaufman’s article in this issue, “Slope Divergence: Capitalizing On Uncertainty.” Here we present the June 2014 Traders’ Tips code with possible implementations in various software.
Code for TradeStation is already provided in Perry Kaufman’s article by the author. S&C subscribers will find that code at the Subscriber Area of our website, www.Traders.com. (Click on “S&C Article Code” from the “Home” menu.) Presented here is an overview of some possible implementations for other software as well.
Traders’ Tips code is provided to help the reader implement a selected technique from an article in this issue. The entries are contributed by various software developers or programmers for software that is capable of customization.
Readers will find the June 2014 Traders’ Tips code and formulas at our website, Traders.com, in the Traders’ Tips area. Here, you can read some discussion of the technique’s implementation by the Traders’ Tips contributors as well as some example charts.
To locate Traders’ Tips at our website, www.Traders.com, click on the Traders’ Tips link from our “Home—S&C Magazine” menu at the top of the home page, or scroll down to the “Current articles” section and click on the Traders’ Tips tab."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-51-56-60-traders-tips-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-51-56-60-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-51-56-60-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov326dofo,d,"{""minimum-quantity"":""1"",""path"":""ch6j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:6 (61-62): Does Forecasting Have A Place In Your System? by Boris Tolmachev"",""caption-linebreaks"":""Does Forecasting Have A Place In Your System? by Boris Tolmachev
And Now, Your Market Forecast
There are three ways to forecast: taking a gamble, making an engineered calculation, and using historical insight. You need to combine all three elements to come up with a well-balanced trading system. Here’s how.
Forecasting involves having an opinion about the probable direction of the market, and having an opinion involves using personal intuition. This intuition can be quantitative or qualitative.
It is said that our processing capabilities are concentrated in the frontal lobes of our brain. This area is responsible for activities that involve extracting signals from past data to anticipate the future. On the other hand, qualitative forecasting requires taking into account political events, evaluating correlations between different types of markets, and arranging large amounts of financial and economical news. This type of work demands an exceptional processor capacity that is beyond our ability."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-61-62-does-forecasting-have-a-place-in-your-system-by-boris-tolmachev-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-61-62-does-forecasting-have-a-place-in-your-system-by-boris-tolmachev-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-61-62-does-forecasting-have-a-place-in-your-system-by-boris-tolmachev-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov328leto3,d,"{""minimum-quantity"":""1"",""path"":""ch6j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:6 (8-9): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
GREAT MAGAZINE
Editor,\nI’ve got to tell you, you guys are great! I love your mag. It has the best articles in it that we can all relate to or learn from.\nSteve Palmer
EVIDENCE-BASED SUPPORT & RESISTANCE
Editor,\nThank you for Melvin Dickover’s article in the April 2014 issue of S&C, “Evidence-Based Support & Resistance.” I am relatively new at trading and found his article very interesting in its description of support & resistance using volume. I prefer indicators that are hybrids of price and volume and find them to be more accurate than using price alone.
I have two questions for the author:
1. What is the meaning of “pools” of supply or demand?
2. What does the scale on the relative volume indicate when using the default parameters of 60 days and two standard deviations?
Thank you for sharing his work.
Joe Castro"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-8-9-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-8-9-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-6-8-9-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov321prwi,d,"{""minimum-quantity"":""1"",""path"":""ch7j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:7 (10-16): Profit With Dual Oscillators & Bands by Barbara Star, PhD"",""caption-linebreaks"":""Profit With Dual Oscillators & Bands by Barbara Star, PhD
The Power Couple
Channels make excellent tools for identifying trends, breakouts, and retracements. Here’s one way to combine channels with indicators to better identify the direction of price and the strength of that movement.
In several of my previous STOCKS & COMMODITIES articles, I have incorporated various types of channels — such as Keltner channels, Donchian channels, and the commodity channel index — as part of the trading strategies I’ve described. This article presents another way to incorporate channels by using two indicators found in most charting packages: detrended price oscillators (DPO) and Bollinger Bands.
Dual Bollinger Bands form the channels that show transitions in price movement. The detrended price oscillators detect early changes in price direction. Together they reveal price direction and price strength. This article will explain how to construct them and apply them to trading.
DUAL DETRENDED PRICE OSCILLATORS
Most computer charting programs include the de-trended price oscillator (DPO) as one of their built-in indicators. Its intent is to eliminate the trend and identify the smaller cycles that take place within the larger predominant trend. It does this by subtracting a displaced moving average from price.
However, I discovered that not all of the charting services calculate and display the indicator in the same way. Some shift the indicator back so it ends at the approximate half cycle several bars prior to the current price bar (for example, as the charting site StockCharts.com does). Other charting services center the indicator so that it ends under the current price bar (for example, the charting site FreeStockCharts.com). Readers interested in the various mathematical calculations will find links in the sidebar “Detrended Price Oscillator Calculations.”"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-10-16-profit-with-dual-oscillators-bands-by-barbara-star-phd-25.gif"",""height"":""315"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-10-16-profit-with-dual-oscillators-bands-by-barbara-star-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-10-16-profit-with-dual-oscillators-bands-by-barbara-star-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov321fufo2,d,"{""minimum-quantity"":""1"",""path"":""ch7j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:7 (17): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
DAMAGE CONTROL
What is the biggest mistake you see traders make?
We all know that trading, particularly on leverage, is a difficult venture. Consequently, the odds of committing mistakes outweigh the probability of the perfect trade. With that said, I’ve made and witnessed plenty of mistakes throughout my career.
The most common, and perhaps the most detrimental, is the human tendency to chase markets. The general public wants to become bullish after a market has already nearly exhausted a rally, and bearish while prices are in despair. Those who don’t chase markets often make a similar mistake of holding onto losers, only to bail on the trade at precisely the worst time. Warren Buffett said it best: “Be fearful when others are greedy, and greedy when others are fearful.” Yet emotion entices us into doing the opposite.
The theory behind the behavior of buying high and hoping to sell higher — or selling low with the intention of buying it back even lower — is trend confirmation. Nearly any trading book you pick up with have the text “the trend is your friend” in it, so it isn’t surprising that we are trained to chase prices. Too many want the comfort of knowing that market momentum is moving in their desired direction before they commit their hard-earned money."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-17-futures-for-you-by-carley-garner-25.gif"",""height"":""324"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-17-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-17-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov321exch,d,"{""minimum-quantity"":""1"",""path"":""ch7j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:7 (18-25): Exploring Charting Techniques, Part 1 by Sylvain Vervoort"",""caption-linebreaks"":""Exploring Charting Techniques, Part 1 by Sylvain Vervoort
Bars, Candles, or Bricks?
What type of chart should you be using? Lines, bars, candlesticks… there are so many choices. In this first part of a six-part series, an overview of charting styles is presented that may help you make the right choice for analyzing the markets.
Many types of charts are available to the trader. Here, I will look at the most common ones as well as some special ones. I’ll look at their specific application as well as their advantages and disadvantages. Later in this series, I’ll look at different technical analysis techniques that can be applied to charts.
LINE CHARTS
Line charts are not as popular as they used to be. They were the basic charts used prior to the advent of the personal computer. Stock price data was written down manually, and usually only the closing prices were plotted.
Line charts are created by connecting a series of single data points, usually closing prices, with a line. It is the most basic type of chart used in finance.
The line chart you see in Figure 1 is a 30-minute chart of the EUR/USD pair for a 24-hour period. A line chart that uses closing prices does not always show clear price support & resistance levels, and drawing trendlines is no easy task. Since the open, high, and low prices are missing, you are not able to see the full range of price movement within the selected time period. Personally, I see no advantage to using line charts."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-18-25-exploring-charting-techniques-part-1-by-sylvain-vervoort-29.gif"",""height"":""304"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-18-25-exploring-charting-techniques-part-1-by-sylvain-vervoort-33.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-18-25-exploring-charting-techniques-part-1-by-sylvain-vervoort-34.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov321exch3,d,"{""minimum-quantity"":""1"",""path"":""faarfr206"",""ysw-page-title"":""Stocks & Commodities V. 32:7 (18–25): Exploring Charting Techniques, Part 1 by Sylvain Vervoort"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-18-25-exploring-charting-techniques-part-1-by-sylvain-vervoort-35.gif"",""height"":""304"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-18-25-exploring-charting-techniques-part-1-by-sylvain-vervoort-36.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-18-25-exploring-charting-techniques-part-1-by-sylvain-vervoort-37.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov32252tr,d,"{""minimum-quantity"":""1"",""path"":""ch7j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:7 (26-30, 52): Trading Eurodollar One-Minute Bar Charts, Part 2 by Dennis Meyers, PhD"",""caption-linebreaks"":""Trading Eurodollar One-Minute Bar Charts, Part 2 by Dennis Meyers, PhD
Feeling The Noise
The level of noise in price movements can have an impact on our trading. Here’s a system that filters out the noise and trades the trends.
In part 1, I introduced a velocity-based trading system and showed you how you can use the system to enter and exit trades when trading eurodollar futures. Here in this second part of a two-part article, I will show you the results of the walk-forward out-of-sample testing and determine how well the velocity-based trading system performed.
WALK-FORWARD OUT-OF-SAMPLE TESTING
Walk-forward analysis attempts to minimize the curve-fitting of price noise by using the law of averages from the central limit theorem on the out-of-sample performance. In walk-forward analysis, the data is broken up into many in-sample and out-of-sample sections."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-26-30-52-trading-eurodollar-one-minute-bar-charts-part-2-by-dennis-meyers-phd-25.gif"",""height"":""310"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-26-30-52-trading-eurodollar-one-minute-bar-charts-part-2-by-dennis-meyers-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-26-30-52-trading-eurodollar-one-minute-bar-charts-part-2-by-dennis-meyers-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov32352qa,d,"{""minimum-quantity"":""1"",""path"":""ch7j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:7 (31, 52): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
HIGH-FREQUENCY TRADERS
I have received dozens of questions regarding the recent book release Flash Boys by Michael Lewis. Dennis Dick, one of our top traders at Bright Trading, has been studying this phenomenon for years. He has kindly offered to explain how he battles high-frequency trading (HFT), which follows. You can read more from him at www.premarketinfo.com.
From Dennis Dick, CFA, Bright Trading LLC:\nIs the market rigged? That is a bold accusation, but there is no doubt that some high-frequency trading (HFT) firms enjoy some distinct advantages over human traders. It is important for human traders to recognize where they are disadvantaged and then adjust their trading strategies accordingly. Here are five tips that have helped our traders adapt to this HFT environment:
1. Lengthen your time horizon. HFTs have a number of advantages over human traders. They have advantages based on speed, co-location, and early access to order flow through payment for order flow arrangements."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-31-52-q-a-by-don-bright-25.gif"",""height"":""325"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-31-52-q-a-by-don-bright-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-31-52-q-a-by-don-bright-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323thru,d,"{""minimum-quantity"":""1"",""path"":""ch7j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:7 (32-35): Three Rules To Risk Management by James Stanley"",""caption-linebreaks"":""Three Rules To Risk Management by James Stanley
It’s Not About Guessing
It’s not just about how much you make or lose on each trade; it’s how you manage those profits and losses that make all the difference in your success as a trader. Here’s a look at three rules that may give you a different perspective.
If there is one dividing line between professional traders and everyone else, it’s risk management. A great trader often categorizes himself, first and foremost, as a risk manager. If you can’t control your losses, it doesn’t matter how many small wins you may be able to accumulate. In this article, I will go over three rules of risk management that traders can easily implement into their approach.
AND THE RULES ARE…
Rule 1: No trade idea is strong enough to risk more than you might make.
What do you think your odds of winning any given trade might be? Fifty percent, perhaps. Most new traders think that to make money in this business, you have to win at least half the time. So many new traders focus on just that: trying to win every trade with the goal of winning more often than losing. This type of thinking can entail losing sight of the bigger picture. When new traders open a position that moves against them, they hold on, hoping that it comes back to their initial entry price so they can win on that one trade."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-32-35-three-rules-to-risk-management-by-james-stanley-25.gif"",""height"":""312"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-32-35-three-rules-to-risk-management-by-james-stanley-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-32-35-three-rules-to-risk-management-by-james-stanley-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323dest,d,"{""minimum-quantity"":""1"",""path"":""ch7j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:7 (36-41): Defining Stock Trends With The RSI by Mike B. Siroky"",""caption-linebreaks"":""Defining Stock Trends With The RSI by Mike B. Siroky
Riding The Trend
The relative strength index (RSI) is considered an indicator to apply when markets are range-bound. But here’s one way you can use the RSI to identify intermediate- and long-term trends in the equity markets.
When John D. Rockefeller was asked what the price of Standard Oil stock will do, he reportedly answered, “I believe it will fluctuate.” Fluctuating prices are, of course, the essence of an auction market that brings together buyers and sellers. Prices may fluctuate in a range that is bound by lower and upper limits that are often referred to as support & resistance. Alternatively, prices may fluctuate within an upward or downward channel. When prices break out of their range and make progress toward their ultimate destination, whether higher or lower, it is referred to as a trend.
TREND OR NO TREND?
Identifying the existence or absence of a trend is one of the most important goals of technical analysis. The classic indicator to use in a trending market is the moving average, since prices that are making progress will tend to remain on one side or the other of a properly selected moving average for most of the trend duration. The major drawback to the moving average is lag, as the moving average cannot reflect current reality since it’s based on past data."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-36-41-defining-stock-trends-with-the-rsi-by-mike-b-siroky-25.gif"",""height"":""306"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-36-41-defining-stock-trends-with-the-rsi-by-mike-b-siroky-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-36-41-defining-stock-trends-with-the-rsi-by-mike-b-siroky-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov324inke,d,"{""minimum-quantity"":""1"",""path"":""ch7j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:7 (42-47): Interview: Keeping Abreast With Perry Kaufman by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Keeping Abreast With Perry Kaufman by Jayanthi Gopalakrishnan
Perry Kaufman began his career as a “rocket scientist,” first working on the Orbiting Astronomical Observatory (OAO-1), the predecessor of the Hubble Observatory, and then on the navigation for Gemini, later used for Apollo missions, and subsequently in military reconnaissance. In 1971 he became involved in the futures markets and has remained there since. The earliest systematic programs for trading used exponential smoothing, a technique developed in aerospace for estimating the path of missiles.
In addition to trading, Kaufman writes extensively on markets and strategies. His seminal book, Trading Systems and Methods + Website, now in its fifth edition, is a comprehensive work in the area of trading system research and development. He has had 13 additional books published, some translated into Chinese, Russian, Italian, Spanish, and Japanese. He has and continues to lecture to economic forums, investor groups, and graduate students. He can be reached through his website at www.KaufmanSignals.com.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan interviewed Perry Kaufman on May 1, 2014 about how traders need to evolve their trading methodologies with the markets.
Since our last interview with you was in 1995, it would be great if you could remind us about your background and how you got interested in the markets.
I started in the computer business when computers were in their infancy. In college I had the opportunity to learn about computers and how to program them. That led me into the aerospace industry because that was the place to be at the time. I worked as a contractor on the West Coast on the navigation for Gemini. It was very exciting to do all that when you’re young.
The navigation for Gemini was used for the most part in Apollo, because they always test the software early. Then I went on to do reconnaissance work for the government, spy-in-the-sky mathematics, where we aimed cameras at different strategic places from satellites. You might remember the most well-known event related to that was the discovery of the missiles in Cuba."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-42-47-interview-keeping-abreast-with-perry-kaufman-by-jayanthi-gopalakrishnan-25.gif"",""height"":""292"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-42-47-interview-keeping-abreast-with-perry-kaufman-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-42-47-interview-keeping-abreast-with-perry-kaufman-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov324prre7,d,"{""minimum-quantity"":""1"",""path"":""ch7j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:7 (48-50): Product review: TraderMaker PRO by Technical Analysis, Inc."",""caption-linebreaks"":""Product review: TraderMaker PRO by Technical Analysis, Inc.
METASTOCK
4548 Atherton Drive, Suite 200,\nSalt Lake City, UT 84123
Phone: sales 800 508-9180;\ntechnical support 801 265-9998
Email: sales@metastock.com, support@metastock.com
Internet: www.metastock.com, www.metastock.com/products/thirdparty/?3PC-ADD-TRMK
Price: $79/month (first month is free)
TraderMaker PRO is a Meta Stock add-on developed for intraday trading. The developer, Steve Ruffley, is an intraday trader, and in TraderMaker PRO you will see the types of screens he uses to trade the market. The key element is the expert advisor. It contains logic that recommends support & resistance, and when conditions are met, it also gives you prices that reflect Fibonacci levels. Included are some measures of whether the market is overbought or oversold.
OVERVIEW
The context of TraderMaker PRO is a trend-following system suggesting entry points for long and short positions. When the trend reverses, it also identifies those turning points. There are templates and layouts to choose from to set up your chart with the appropriate indicators. Say you open a daily chart of QQQ and then apply the TraderMaker D1 template; you’ll see a screen similar to what you see in Figure 1. Besides the D1, which stands for a one-day chart, there are templates for hourly (H1); five (M5) and 15 (M15) minutes; weekly (W1); and monthly (M1) charts. If you attach the expert advisor, you’ll also get support & resistance and Fibonacci levels when there is a Bollinger Band break."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-48-50-product-review-tradermaker-pro-by-technical-analysis-inc-25.gif"",""height"":""292"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-48-50-product-review-tradermaker-pro-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-48-50-product-review-tradermaker-pro-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov325exyo,d,"{""minimum-quantity"":""1"",""path"":""ch7j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:7 (51-52): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
TRADING THE ENERGY PULLBACK
While speaking in front of groups this year, I often talked about longer-term patterns associated with recent markets. One I have spoken of this year is the energy bull cycle, which I wrote about in this column in the May 2014 issue of this magazine. I had a student recently ask me what could be done when the bull cycle is over in July. I quickly responded, “Trade it the other way,” but then realized that that answer would soon be followed by the additional question, “How?” Since we are at the end of this pattern now, I’ll discuss some opportunities and strategies that you could take if you believe that the crude oil markets will be in pullback mode into the fall.
Crude oil futures and the bear put spread
Crude oil futures are what I refer to as the world’s currency. Unless everyone gets on board with some sort of alternative fuel, oil will continue to dominate the headlines and the energy markets."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-51-52-explore-your-options-by-tom-gentile-25.gif"",""height"":""317"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-51-52-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-51-52-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov325trti4,d,"{""minimum-quantity"":""1"",""path"":""ch7j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:7 (53-58): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is mainly Sylvain Vervoort’s article in this issue, “Exploring Charting Techniques, Part 1,” with some Traders’ Tips focusing on topics from recent issues instead. Here we present the July 2014 Traders’ Tips code with possible implementations in various software.
Code for NinjaTrader is already provided in Vervoort’s article. S&C subscribers will find that code at the Subscriber Area of our website, www.Traders.com. (Click on “S&C Article Code” from the “Home” menu.) Presented here is an overview of some possible implementations for other software as well.
Traders’ Tips code is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries are contributed by various software developers or programmers for software that is capable of customization.
Readers will find the July 2014 Traders’ Tips code and formulas at our website, Traders.com, in the Traders’ Tips area. Here, you can read some discussion of the techniques’ implementation by the Traders’ Tips contributors as well as some example charts.
To locate Traders’ Tips at our website, www.Traders.com, click on the Traders’ Tips link from our “Home—S&C Magazine” menu at the top of the home page, or scroll down to the “Current articles” section and click on the Traders’ Tips tab."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-53-58-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""325"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-53-58-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-53-58-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov326wast,d,"{""minimum-quantity"":""1"",""path"":""ch7j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:7 (61-62): Wall Street’s Biased Estimates by Gideon Vigderhous, PhD"",""caption-linebreaks"":""Wall Street’s Biased Estimates by Gideon Vigderhous, PhD
Earnings Talk
Does Wall Street show a systematic bias when estimating earnings per share (EPS) when compared to actual EPS? Is underestimating the norm? Using forecast models based on time series analysis will give you a weighted average of the EPS so you know how to hedge your portfolio during earnings season.
A critical time for every stock traded on the stock exchanges is when corporate earnings are announced. Stock prices are sensitive to earnings results when evaluated in light of Wall Street’s expectations, also known as the consensus estimate. Stock prices can gain or lose as much as 5–20% of their value in one day when faced with either missed Wall Street estimates or beaten Wall Street estimates.
HOW ACCURATE ARE THE ESTIMATES?
Analysis of 1,333 companies that reported earnings in 2011 indicates that 92.5% of them received a positive EPS estimate by Wall Street analysts, and 65% of those companies indicated they were able to beat the Wall Street estimate. Those could be described as surprise earnings. Meanwhile, 7.9% of the companies met Wall Street’s estimate, and the balance (27%) fell below Wall Street’s estimate with an average loss of 11 cents below the estimate."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-61-62-wall-street-s-biased-estimates-by-gideon-vigderhous-phd-25.gif"",""height"":""316"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-61-62-wall-street-s-biased-estimates-by-gideon-vigderhous-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-61-62-wall-street-s-biased-estimates-by-gideon-vigderhous-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov328leto4,d,"{""minimum-quantity"":""1"",""path"":""ch7j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:7 (8-9): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
DETECTING PATTERNS ALGORITHMICALLY
Editor,\nI work on program analysis, machine learning, and have a doctorate in software engineering. I like to do stock analysis as a hobby and am interested in chart pattern detection. For example, I wrote some code to detect the flag pattern. I came across Siligardos’ articles in S&C about detecting rounding bottoms, detecting rounding bottoms early, and detecting trendlines [“Identifying The Cup (With Or Without The Handle),” February 2006; “Identifying Cup Formations Early,” April 2011].
I loved his work in the articles. I have implemented his rounding bottom detection method, but I have the following questions:
1. The algorithm to detect rounding bottoms early does not indicate how long the stock will stay on the bottom. If I want to estimate how long the stay would be, what would his opinion be of this? Or is this not worth doing?
2. The algorithm to detect trendlines needs a parameter for the swing indicator. To use the algorithm to scan through thousands of stocks, I will need to use a value for this parameter for each stock. This is a parameter-optimization problem. What is his opinion about this? Would he suggest using a default value for all the stocks, or optimize this parameter for different stocks? If the latter, what is his opinion of the optimization goal? For example, to minimize the loss function used to describe how well the swing indicator covers local minimums and maximums.
Yi Wei"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-8-9-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""327"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-8-9-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-7-8-9-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov321trab1,d,"{""minimum-quantity"":""1"",""path"":""ch8a2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:8 (10-12): The Truth About Dollar-Cost Averaging by Thomas Bulkowski"",""caption-linebreaks"":""The Truth About Dollar-Cost Averaging by Thomas Bulkowski
Should You or Shouldn’t You?
Does dollar-cost averaging work? And what is zero-cost averaging? Find out more about these two concepts here.
Several months ago, I was watching The View on television and a guest was on that day who is well-known for her financial expertise. She said something along the lines of, “Use dollar-cost averaging to invest in the stock market.” I rolled my eyes.
WHAT IS DOLLAR-COST AVERAGING?
Dollar-cost averaging is a way to buy stocks over time. Say you receive a holiday bonus of $12,000. Should you buy $12,000 worth of stocks at one time (a lump-sum investment) or should you spend $1,000 each month (dollar-cost average) in the stock market until the bonus is completely invested?
By buying stocks over time, you buy fewer shares when the market is up, but more shares when the market is down. If the market recovers, those shares bought at a lower price will help boost the total value. That’s the theory. Since the market has risen over time, dollar-cost averaging would make money. But the question remains: Which is best, investing a lump sum at one time, or dollar-cost averaging into the stock market?
To help answer that question, I programmed my computer to invest $12,000 using dollar-cost averaging by spending $1,000 on the first trading day of each month (starting with the closing price on February 1, 1950) and selling all shares a year later at the closing price on the last trading day of the month (January 31, 1951) in the S&P 500 index."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-10-12-the-truth-about-dollar-cost-averaging-by-thomas-bulkowski-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-10-12-the-truth-about-dollar-cost-averaging-by-thomas-bulkowski-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-10-12-the-truth-about-dollar-cost-averaging-by-thomas-bulkowski-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov321coma,d,"{""minimum-quantity"":""1"",""path"":""ch8a2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:8 (14-18): The Composite Man’s Bull Market Campaign by Pruden, Fraser, Bogomazov"",""caption-linebreaks"":""The Composite Man’s Bull Market Campaign by Pruden, Fraser, Bogomazov
Follow The Leader
Will the principles of 20th-century chartist Richard D. Wyckoff still work in today’s markets? You might be surprised. Here’s a reenactment of Wyckoff’s original campaign as applied to the 2008–14 stock market.
In the year 1931, Richard D. Wyckoff created a message of instruction to his subscribers and followers. It was an idealized account about how the “Composite Man,” or smart-money pool operator, would conduct a bull-market campaign. It explained in detail how the Composite Man would conduct the accumulation of a line of stock (that is, buying stock of a company over time) while prices were low and the public was depressed. It then discussed how the following markup phase was conducted. Finally, it discussed how the campaign was concluded, his line of stock sold to the public, and how the Composite Man would prepare for the subsequent decline via a campaign of distribution designed to exhaust the remaining demand of the late-arriving buyers.
IN TODAY’S MARKETS
Most of what Wyckoff noted then can be restated in the parallel scenario of the stock market from 2008–14. Here, we will use the recent/current bull market as a reenactment of the original campaign described by Wyckoff. We have made an attempt to utilize the same language that Wyckoff employed in depicting the Composite Man’s campaign when he first wrote it in 1931."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-14-18-the-composite-man-s-bull-market-campaign-by-pruden-fraser-bogomazov-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-14-18-the-composite-man-s-bull-market-campaign-by-pruden-fraser-bogomazov-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-14-18-the-composite-man-s-bull-market-campaign-by-pruden-fraser-bogomazov-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov32149qa,d,"{""minimum-quantity"":""1"",""path"":""ch8a2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:8 (19, 49): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
SHORT-TERM TRADING IN LOW VOLATILITY
Don, with the markets traveling consistently higher and volatility continuing to drop, what is a short-term trader to do? When I get out of a good long position, I can’t get that pullback to get back in. When I short a stock I think is about to reverse and go lower, the drop is very shallow and then I get squeezed out as it heads higher. Can you offer any insight as to how your traders are handling this low volatility?
By the time you read this, the market may (or may not) have sold off. This response is being written in early June 2014, with the market at all-time highs. The markets could be much higher or lower by the time this is published.
Let me start with some things not to do. Some traders are gambling on a major pullback in the markets — and are consistently losing money. Thank goodness, not many are doing this. Another thing to avoid at all costs is going long any leveraged volatility-based exchange traded fund (ETF) such as UVXY. Even the sponsors of such leveraged ETFs warn traders that they are designed to be used primarily for daytrading and not for long-term holds. Will volatility come back? Probably. Will it be soon? Who knows."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-19-49-q-a-by-don-bright-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-19-49-q-a-by-don-bright-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-19-49-q-a-by-don-bright-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov322paaf,d,"{""minimum-quantity"":""1"",""path"":""ch8a2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:8 (20-25): Parameters Affecting Stock Returns by Norman J. Brown"",""caption-linebreaks"":""Parameters Affecting Stock Returns by Norman J. Brown
Stocks, Indexes, Or Roulette?
When it comes to trading equities, it is believed that to increase returns you need to take on more risk. But is that really true? This statistical study will show you what really affects returns.
Risk is commonly measured by standard deviation. Standard deviation measures the deviation of the daily rate of return on capital (Roc) from the mean and thus is a measure of volatility. As more risk is taken on, the standard deviation (Std) increases. In this article, the data presented focuses on daily returns, so the standard deviation will also be expressed daily, although some of you may prefer longer periods such as monthly or yearly data. (As one resource for this data, Morningstar publishes three-year standard deviations.)
THE DATABASE STUDIED
Using Microsoft Excel spreadsheet software, it is possible to evaluate all the necessary parameters when looking at stock returns. From the 500 stocks listed in the S&P 500 index, I separated out 250 equity stocks and evaluated their returns over 25 years from January 1, 1989 to December 31, 2013. For comparison purposes, I also included the Vanguard 500 Index (VFINX), which reflects the overall S&P 500, and I included gambling using roulette as the vehicle."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-20-25-parameters-affecting-stock-returns-by-norman-j-brown-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-20-25-parameters-affecting-stock-returns-by-norman-j-brown-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-20-25-parameters-affecting-stock-returns-by-norman-j-brown-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov322qutr,d,"{""minimum-quantity"":""1"",""path"":""ch8a2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:8 (26-29): The Quotient Transform by John F. Ehlers"",""caption-linebreaks"":""Stocks & Commodities V. 32:8 (26-29): The Quotient Transform by John F. Ehlers
Early Trend Detection
Here’s one way to detect a trend early and know how long to stick with it.
Trading the trend is a favorite technique of technical analysts. Trends are usually detected by some variation of following a moving average. The problem with this approach is that the moving averages invariably introduce lag because they require a relatively large amount of historical data to form a reliable indicator. This article introduces the quotient transform, which nonlinearly manipulates indicators to not only produce an early trend detection but also provides the ability to know how long to stick with the trend.
QUOTIENT TRANSFORM MATHEMATICS
Transforms are handy devices that change indicator waveforms to better interpret the meaning of various in-dicators. They introduce zero lag into the indicators, which is a good thing. For example, a Fisher transform changes any indicator probability distribution to have a nearly normal probability distribution, with the re-sult that visibility peak turning points are highly amplified."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-26-29-the-quotient-transform-by-john-f-ehlers-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-26-29-the-quotient-transform-by-john-f-ehlers-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-26-29-the-quotient-transform-by-john-f-ehlers-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323exch,d,"{""minimum-quantity"":""1"",""path"":""ch8a2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:8 (30-35): Exploring Charting Techniques: Basic Chart Trading, Part 2 by Sylvain Vervoort"",""caption-linebreaks"":""Exploring Charting Techniques: Basic Chart Trading, Part 2 by Sylvain Vervoort
Trends, Pullbacks, Reversals...
Pullbacks, swing reversals, breakouts, trend reversals — these are some of the things prices do. Here’s how you can recognize and trade them.
Last month in part 1 of this six-part article series, I discussed the basic chart types available to the investor, from line charts to bar charts to the modified renko charts that I use in my trading. In this article, I’ll provide an overview of how you can trade using charts.
MARKET TRENDS
The market is driven by bulls & bears. The bulls try to push prices higher while the bears try to pull prices lower. Markets have a tendency to continue in the direction that they have been moving and this is probably why more than 80% of breakout attempts in a trend fail.
Bull market
In Figure 1 you see a clear bull trend, but trends are not always this clear. If you are ever in any doubt about a trend, look for a breakout from a trading range. Typically, when you see a breakout like the one seen in the area shaded in green, it suggests a strong trend. Breakouts usually happen because of a result of positive economic news. After a strong trend, the market usually becomes weaker and moves within a channel (yellow shaded area)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-30-35-exploring-charting-techniques-basic-chart-trading-part-2-by-sylvain-vervoort-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-30-35-exploring-charting-techniques-basic-chart-trading-part-2-by-sylvain-vervoort-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-30-35-exploring-charting-techniques-basic-chart-trading-part-2-by-sylvain-vervoort-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323nepa,d,"{""minimum-quantity"":""1"",""path"":""ch8a2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:8 (36-37): Never Pay Full Price by Tom Catalano"",""caption-linebreaks"":""Never Pay Full Price by Tom Catalano
Lower Costs = Higher Profits
Try this option strategy the next time you trade a stock.
I learned it from my father…well, sort of. My father immigrated to the United States from Italy when he was 12 years old, approximately a year before the Great Depression began. When he landed in the US he didn’t speak any English, but he embraced the language of his adopted country and eventually learned it. He worked hard in school and was determined to make something of himself. But financial hardship forced him to leave school early to help support his family, as was the case with so many immigrants of that era. That experience taught him many valuable lessons about money and investing that my siblings and I picked up while growing up.
LESSONS LEARNED
Lesson 1: Diversify your sources of income\nWhen my father was in his early 20s, he met and married my mother. A couple of years later they had their first child, but shortly afterward, the US entered into World War II and my father was drafted into the US Army. Upon returning home from the war, he got a job as a mechanic and also opened a house-painting business on the side. Money was tight, but eventually a friend helped him get a job as a civil service worker fixing trucks for the sanitation department of New York City. It was a good-paying job with benefits, but my father decided to keep the painting business anyway, always striving to make a better life for his family.
Lesson 2: Own assets that generate income"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-36-37-never-pay-full-price-by-tom-catalano-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-36-37-never-pay-full-price-by-tom-catalano-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-36-37-never-pay-full-price-by-tom-catalano-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323inma,d,"{""minimum-quantity"":""1"",""path"":""ch8a2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:8 (38-43): Interview: Managing Money With Moe Ansari by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Managing Money With Moe Ansari by Jayanthi Gopalakrishnan
Wrapping It Up
Moe Ansari is a financial expert and the host of “Market Wrap,” a nationally syndicated radio broadcast. This experience has helped him in managing the investment portfolios of thousands of clients at his firm, Compak Asset Management. He provides advice regularly to individuals and corporations. His professional experience includes option trading, portfolio optimization, futures trading, mutual fund selection modeling, and financial risk management. He is a nationally sought speaker and has conducted numerous financial seminars since the 1980s.
Throughout his career, Ansari has appeared as host or as a guest expert on various radio and television programs out of New York, Los Angeles, Florida, and San Diego. Over the years, his experience as an investment advisor and broadcaster has allowed him to share his financial wisdom with millions of listeners and viewers nationwide. In 2005, he was recognized by the US Congress as a “Man of Character” for his many years of service to the Boy Scouts of America on the Orange County Council.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Moe Ansari on March 18, 2014 about minimizing risks and being content with what you make.
Moe, we interviewed you for this magazine in the late 1990s. Since then, I’m sure things have changed. Can you share some of those things with us?
I was a commodities trader at the time, which is how I started in this business. In the mid-1970s, I was a futures and option trader. I have been on the radio since 1988, and now we have one of the longest-running financial broadcasts in the nation. I have done this for 25 years.
In 2000, I realized there was too much at risk in the market and people didn’t understand the magnitude of that risk. As a trader, I thought it would be a time when everybody would hold long positions in the market, especially in the technology stocks. And sure enough, everybody was in the market. On my radio show, I would have listeners call in and say they were making more money trading than at their regular job. Many would say they were thinking of quitting their day job and becoming a full-time trader. My answer at the time was, “If you quit your day job, make sure you have a night job, because when the bear market comes, you’ll need it!”"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-38-43-interview-managing-money-with-moe-ansari-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-38-43-interview-managing-money-with-moe-ansari-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-38-43-interview-managing-money-with-moe-ansari-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov324bofo1,d,"{""minimum-quantity"":""1"",""path"":""ch8a2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:8 (43): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-43-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-43-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-43-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov324prre8,d,"{""minimum-quantity"":""1"",""path"":""ch8a2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:8 (44-46): Product review: eSignal 11.8 by Technical Analysis, Inc."",""caption-linebreaks"":""Product review: eSignal 11.8 by Technical Analysis, Inc.
INTERACTIVE DATA CORP.
3955 Point Eden Way\nHayward, CA 94545
Phone: 510 266-6000, 800 815-8256
Website: www.esignal.com
Product: Trading software with streaming stock quotes and charting tools
System requirements: Windows 7, Vista, or XP, broadband Internet connection, 3 GB RAM; 6 GB RAM and Windows 7 (64-bit) required for “power users”
Price: Fees range from $49/month to $215/month; see website for options.
eSignal version 11.8 is arguably the top retail datafeed based on the numerous awards the product has received, but eSignal is more than just a datafeed, as you will soon find out. Here’s a look at some of its features.
SYMBOLS
Three main classes of symbols are supported: stocks, commodities, and foreign exchange (forex). For stocks, it’s simply a case of entering the symbol of your choice. If you don’t know the symbol, all you have to do is click on symbol lookup, where you can input any part of a company name while eSignal returns its best guesses as you type.
A special feature has been added for commodities. Since commodities are contracts with specific expiration dates, you need to specify which one you want, or if you prefer, you can specify that you want a continuous contract quote. For example, if you want a quote on the June 2014 S&P emini contract, you would type in “ES,” or “ES #F” for the continuous contract. The symbol lookup for each contract depends on the type of contract and expiration date. More information can be found in eSignal’s KnowledgeBase."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-44-46-product-review-esignal-11-8-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-44-46-product-review-esignal-11-8-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-44-46-product-review-esignal-11-8-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov324fufo1,d,"{""minimum-quantity"":""1"",""path"":""ch8a2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:8 (47): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
THE FEAR FACTOR
What do I need to know about VIX futures before getting involved in trading them?
VIX futures — that is, futures on the CBOE Volatility Index — are tradable instruments intended to measure, and enable speculation on, expectations of future volatility. Because the VIX value is derived from the implied volatility (the portion of an option price attributed to expectations of future volatility) in S&P options, it is commonly referred to as the fear index.
Although in most contexts, volatility can mean violent price swings in either direction; when it comes to the VIX index, the term volatility is synonymous with selling pressure in the equity markets. Accordingly, in general, as the S&P goes up, the VIX goes down, and vice versa.
In essence, VIX futures give speculators an opportunity to directly trade human emotions, specifically, fear and complacency. In most circumstances, I would argue that trading VIX futures is probably something that should be avoided due to certain characteristics of the contract (which I’ll discuss later). However, heading into the summer of 2014 with the VIX trading at annual lows and near all-time-lows as I write this, these are solid arguments for at least giving it some thought.
Nonetheless, there are some aspects of the VIX futures market that traders should be aware of before risking their trading capital."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-47-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-47-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-47-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov324exyo,d,"{""minimum-quantity"":""1"",""path"":""ch8a2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:8 (48-49): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
GOLD & INFLATION
Question of the month: If you believe the markets are due for a pullback, yet still pose a lot of risk, how can you play inflation if it creeps back in to the economy?
One word: gold. Gold has been a great play for inflation, and that it’s at lows while the market is at all-time highs tells us it’s acting more like a “risk-off” commodity, meaning that it moves inversely to the price of indexes.
As I write this, gold is trading at three-month lows and is one of the only sectors that are not moving higher as of mid-2014. What’s amazing is that almost everything else has been moving up in a period during which I expected a pullback for several reasons, including:
• Technically oversold—Wow, where do I start? Most oscillating indicators such as moving average convergence/divergence (MACD), stochastics, and various oscillators are in the sell zone for the indexes as I write this. Volume has been lagging as prices move higher, which is typically bearish, and even contrarian indicators, such as Elliott wave, and swing indicators, such as Fibonacci levels, suggest a lower move."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-48-49-explore-your-options-by-tom-gentile-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-48-49-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-48-49-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov325prre3,d,"{""minimum-quantity"":""1"",""path"":""ch8a2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:8 (50-52): Product review: TradeShark by Sunny J. Harris, PhD"",""caption-linebreaks"":""Product review: TradeShark by Sunny J. Harris, PhD
MARKET TECHNOLOGIES, LLC
5807 Old Pasco Rd. Wesley Chapel, FL 33544
Phone: 800 732-5407; 813 973-0496
Email: info@TradeShark.com
Website: http://www.TradeShark.com
Product: Predictive trading tool
Price: $2,900 with choice of three markets. Other markets and options available for additional cost.
One of the things you will note right from the start about TradeShark, the newest analytical software program from Market Technologies, is how intuitive it is — easy to use and obvious what the next step should be. That’s not the case with some of today’s complicated analytical software packages, which open to a page that leaves you wondering what to do next.
FEATURES AND TOOLS
Let’s start right at the top with TradeShark, which has a row of tab-type menu items that invite you to click on them to see what happens. The first tab menu is markets, a natural first inquiry for traders. One click brings up an extensive list of markets:
• Eight categories of futures covering major US and foreign markets and hundreds of monthly contract symbols
• All major forex pairs and cross-rates
• Seven categories of exchange traded funds including commodities, currencies, and a number of country and international indexes
• 12 sectors of US stocks plus stocks in Canada, Australia, India, and the UK — hundreds of stocks in all."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-50-52-product-review-tradeshark-by-sunny-j-harris-phd-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-50-52-product-review-tradeshark-by-sunny-j-harris-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-50-52-product-review-tradeshark-by-sunny-j-harris-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov3255861,d,"{""minimum-quantity"":""1"",""path"":""ch8a2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:8 (53-56, 58, 61): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is John Ehlers’ article in this issue, “The Quotient Transform.” Here we present the August 2014 Traders’ Tips code with possible implementations in various software.
Code for TradeStation is already provided in Ehlers’ article. S&C subscribers will find that code at the Subscriber Area of our website, www.Traders.com. (Click on “S&C Article Code” from the “Home” menu.) Presented here is an overview of some possible implementations for other software as well.
Traders’ Tips code is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries are contributed by various software developers or programmers for software that is capable of customization.
Readers will find the August 2014 Traders’ Tips code and formulas at our website, Traders.com, in the Traders’ Tips area. Here, you can read some discussion of the techniques’ implementation by the Traders’ Tips contributors as well as some example charts.
To locate Traders’ Tips at our website, Traders.com, click on the Traders’ Tips link from our “Home—S&C Magazine” menu at the top of the home page, or scroll down to the “Current articles” section and click on the Traders’ Tips tab."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-53-56-58-61-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-53-56-58-61-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-53-56-58-61-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov328leto5,d,"{""minimum-quantity"":""1"",""path"":""ch8a2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:8 (8-9): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
CHARTMILL INDICATOR
Editor,
I recently read the interesting article series in your magazine by Dirk Vandycke regarding intrinsic divergences for detecting contraction before expansion (“The Chartmill Value Indicator, Part 1,” January 2013 S&C, with parts 2 and 3 following in the February and March 2013 issues). I found the series very interesting and I have visited Vandycke’s site to take a look at the indicators. His articles mention that the indicator’s response is recommended in those instruments in which it has been proven to work in the past.
Is there any guidance regarding the instruments in which this indicator has been backtested successfully? Maybe regarding the kind of instruments in which it behaves more accurately?
Jorge
Author Dirk Vandycke replies:
Thank you for the praise for my articles.
I have been using the indicators as they are (in my software, Chartmill) for three years now and they have provided me with nice trading opportunities.
To me, the most interesting backtest was the one showing early signals from those indicators, as mentioned in my articles. As such, I use the signals to put in technical buy stops, getting me in early."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-8-9-letters-to-s-c-by-technical-analysis-inc-33.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-8-9-letters-to-s-c-by-technical-analysis-inc-37.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-8-8-9-letters-to-s-c-by-technical-analysis-inc-38.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov321loat,d,"{""minimum-quantity"":""1"",""path"":""ch9s2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:9 (10–17): Looking At Cycles by Koos van der Merwe"",""caption-linebreaks"":""Stocks & Commodities V. 32:9 (10–17): Looking At Cycles by Koos van der Merwe
Let The Good Times Roll
We live in a world of cycles and many believe there is a correlation between cyclical movements and our emotional ups and downs. Here’s a look at some of the different types of cycles as they relate to the financial markets.
The earth orbits the sun in 365.25 days; the moon circles the earth in 29.53059 days; the high and low tides of the ocean follow a cycle triggered by the gravity of the sun and the moon — cycles are everywhere. Many who follow astrology believe that the moon’s cycle can affect the way we feel. For example, when the moon is full, stress becomes a major factor. A new moon, on the other hand, brings with it the sense of calmness. All these emotions are reflected in the stock market as you buy and sell stocks.
THE BASIC CYCLE
When you first learn about cycles in technical analysis, it’s likely that you’ll learn about the repetition of the first low to another low, as shown in the chart in Figure 1. The chart shows how accurate the cycles are to the lows, with the occasional one becoming a high, as shown by the vertical lines labeled 3, 5, 6, and 7. Yes, I did say occasional, because if you introduce a margin of error of four days, the vertical lines will pick up the anticipated cycle low."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-10-17-looking-at-cycles-by-koos-van-der-merwe-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-10-17-looking-at-cycles-by-koos-van-der-merwe-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-10-17-looking-at-cycles-by-koos-van-der-merwe-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov321exch2,d,"{""minimum-quantity"":""1"",""path"":""faarfr206"",""ysw-page-title"":""Stocks & Commodities V. 32:9 (18–23): Exploring Charting Techniques: Creating A Trading Strategy Part 3 by Sylvain Vervoort"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-18-23-exploring-charting-techniques-creating-a-trading-strategy-part-3-by-sylvain-vervoort-33.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-18-23-exploring-charting-techniques-creating-a-trading-strategy-part-3-by-sylvain-vervoort-34.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-18-23-exploring-charting-techniques-creating-a-trading-strategy-part-3-by-sylvain-vervoort-35.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov321exch1,d,"{""minimum-quantity"":""1"",""path"":""ch9s2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:9 (18–23): Exploring Charting Techniques: Creating A Trading Strategy Part 3 by Sylvain Vervoort"",""caption-linebreaks"":""Exploring Charting Techniques: Creating A Trading Strategy Part 3 by Sylvain Vervoort
Sit Back And Relax
Creating our own indicators and turning them into a trading strategy is something all technical analysts strive to do. Unfortunately, a lack of programming skills can often discourage us from accomplishing this. But there are ways to get around it. Here’s one way to create and backtest an indicator without writing any code.
If you are a devout reader of this magazine, then I can confidently say that you likely have your own ideas for creating custom indicators and turning standard and custom indicators into a trading strategy. Ideally, these ideas would first be backtested on historical data and possibly run in full autotrading mode. Wouldn’t that be magnificent?
Of course, having an idea is one thing, but turning it into an executable piece of program is a different ballgame. In this article, I will create a combined indicator and a backtesting strategy, and I will do this without using a programming language.
THE BASIC TRADING IDEA
First, please note that the purpose of this article is to provide an example of one way to create indicators and trading strategies without writing programming code. Thus, the indicators and strategies shown here are for educational purpose only."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-18-23-exploring-charting-techniques-creating-a-trading-strategy-part-3-by-sylvain-vervoort-28.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-18-23-exploring-charting-techniques-creating-a-trading-strategy-part-3-by-sylvain-vervoort-36.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-18-23-exploring-charting-techniques-creating-a-trading-strategy-part-3-by-sylvain-vervoort-37.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov32236fi,d,"{""minimum-quantity"":""1"",""path"":""ch9s2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:9 (24–27, 36): Finding The Golden Triangle by Charlotte Hudgin"",""caption-linebreaks"":""Finding The Golden Triangle by Charlotte Hudgin
A Shining Opportunity
Do you find yourself frequently missing profitable setups? Here’s one way to capture most, if not all, of them.
Have you ever sat on the sidelines, annoyed, watching as a stock continues to rise? My golden triangle setup can help cure that problem by identifying more entries that work.
A setup I call the Armchair Investor Golden Triangle is an important refinement of the buy-on-a-dip strategy. Golden triangles form when a fast-growing stock pauses for some minor profit-taking and then continues on its upward trend. Careful analysis of price and volume action during the pause can point to the stocks most likely to return to a vigorous uptrend. The reversal at the bottom of the pullback can be an entry at a favorable price. I have bought golden triangles in stocks that have risen 20%, 50%, or more before they showed sell signals. Of course, your results will vary.
THE GOLDEN TRIANGLE SETUP
Here are the steps to identifying the Armchair Investor Golden Triangle:
1. The prior rise. In Figure 1, you see an example of the ideal golden triangle. Look for a stock’s price rising faster than its 50-day simple moving average (SMA). I also check for white space between price bars and the SMA. The more white space, the higher the momentum."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-24-27-36-finding-the-golden-triangle-by-charlotte-hudgin-30.gif"",""height"":""308"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-24-27-36-finding-the-golden-triangle-by-charlotte-hudgin-34.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-24-27-36-finding-the-golden-triangle-by-charlotte-hudgin-35.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov322biop,d,"{""minimum-quantity"":""1"",""path"":""ch9s2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:9 (28–32): Binary Options: Scam Or Trading Methodology? By Gail Mercer"",""caption-linebreaks"":""Binary Options: Scam Or Trading Methodology? By Gail Mercer
First Comes Knowledge
They’re gaining attention among traders, but how do you trade them? Here’s one way to get started.
Though binary options have been around since 2007, over the course of the last few years, they have seen a huge growth in popularity. For those who are new to them, binary options are simply short-term option contracts with a limited risk and limited reward amount.
TRADING THEM
In their most basic structure, binaries can be seen as a form of gaming. If the trader feels that the instrument will increase, he stakes an amount at a price where he feels the market will increase to (these price levels are usually predefined by the brokerage). If price is higher by expiration, the trader will profit by a predetermined percentage amount. However, the percentage amount varies by brokerage and by volatility.
For example, if I believe the price of light crude oil will trade above $100, I may place a $20 stake that the price of crude oil will go up. Since the brokerage is offering an 80% payout on the stake amount, if light crude oil does go up and stays above $100, I will make an 80% profit on my initial stake amount of $20, which is $16. My predefined risk was $20 (the stake price) and my predefined profit target was $16."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-28-32-binary-options-scam-or-trading-methodology-by-gail-mercer-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-28-32-binary-options-scam-or-trading-methodology-by-gail-mercer-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-28-32-binary-options-scam-or-trading-methodology-by-gail-mercer-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323qaby4,d,"{""minimum-quantity"":""1"",""path"":""ch9s2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:9 (33): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
HEDGE FUND BASICS
We have a small group of investors/traders. We like to think that we’re somewhat knowledgeable about the markets and trading, and we’re considering forming a hedge fund of sorts. I have some basic questions. Can you help?
I’ll try to shed some light on the subject (see my answer to the next question), but if you choose to proceed, consult a good securities lawyer, and find a compliance officer before filing any formal documents.
What exactly constitutes a hedge fund? My understanding is that it simply “pools” investor money run by one or more manager/traders. The investors get most of the returns of the fund, and the management keeps a fee plus a percentage of the profits.
There are many misconceptions about hedge funds these days. I suggest you take a step back and create a business plan for what you are trying to achieve by entering into this venture. If you and/or your group are making good returns and simply wish to “ramp it up” a bit with more capital, then there are alternatives that may work better for you."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-33-q-a-by-don-bright-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-33-q-a-by-don-bright-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-33-q-a-by-don-bright-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov32348ac,d,"{""minimum-quantity"":""1"",""path"":""ch9s2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:9 (34–35, 48): Acquiring Trading Discipline Quantitatively by Sebastien Garcia"",""caption-linebreaks"":""Acquiring Trading Discipline Quantitatively by Sebastien Garcia
Systems With A Cause
To trust your trading system you need confidence, which in turn leads to discipline. Here’s a simple yet powerful process that can help you to trust your system.
Discipline is often pointed to as the single most important quality that an algorithmic trader must master in order to become successful. System trading requires consistent execution, regardless of emotions. Yet discipline is constantly threatened by fear when a drawdown comes up.
OVERCOMING THE FEAR
In the mental endeavor that a trader faces, one factor precedes the acquiring of discipline. Without it, discipline invariably becomes unsustainable after the first meaningful loss. The factor? It’s trust in the system that you trade. Trust is the key to turning blind faith into confident trading, the type of confidence that will lead a trader to keep executing a system’s signals through exciting new equity highs as well as dire new lows, without questioning or interrupting his trading.
Acquiring trust is possible through a simple yet powerful process that must be implemented before trading any system live."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-34-35-48-acquiring-trading-discipline-quantitatively-by-sebastien-garcia-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-34-35-48-acquiring-trading-discipline-quantitatively-by-sebastien-garcia-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-34-35-48-acquiring-trading-discipline-quantitatively-by-sebastien-garcia-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323fufo1,d,"{""minimum-quantity"":""1"",""path"":""ch9s2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:9 (37): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
MORE VIX
How do you calculate profit, loss, and risk when trading VIX futures?
Last month I discussed the basic characteristics of the VIX futures contract traded on the Chicago Board Option Exchange (CBOE), along with some of the challenges and advantages the product offers speculators. This month I’ll focus on the bottom line, how to calculate gains and losses, and an example of the risks and reward potential.
As a quick reminder, the VIX is an index that measures the expected volatility in the S&P 500. As a bullish trader, the biggest challenge (aside from the usual timing and direction) is the burden of erosion. Similar to the value of an option, the value of the VIX futures contract deteriorates as time passes in the absence of an uptick in volatility. Nonetheless, when the VIX does finally move higher, it has a tendency to do it in an “all or nothing” fashion. Thus, for patient and disciplined traders, there might be a great opportunity for upside potential in bullish VIX trades."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-37-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-37-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-37-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov323inje,d,"{""minimum-quantity"":""1"",""path"":""ch9s2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:9 (38–42): Interview: Jeffrey Hirsch on Seasons, Cycles, and Super Booms by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Jeffrey Hirsch on Seasons, Cycles, and Super Booms by Jayanthi Gopalakrishnan
Jeffrey A. Hirsch is editor-in-chief of Stock Trader’s Almanac (stocktradersalmanac.com), Seasonal Sector Trades, and Almanac Investor eNewsletter. He is author of The Little Book Of Stock Market Cycles and Super Boom: Why The Dow Will Hit 38,820 And How You Can Profit From It. A 25-year Wall Street veteran, he took over from founder and father Yale Hirsch in 2001 to become president of the Hirsch Organization. Jeffrey Hirsch is a Yahoo! Finance contributor and appears regularly on CNBC, Bloomberg, Fox Business, and other financial media.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Jeffrey Hirsch by phone on July 8, 2014 about using cycles as a guide when trading.
Let’s talk about the Stock Trader’s Almanac. It’s been around for a long time, even longer than our magazine has been. What was the idea behind publishing it?
My father, Yale Hirsch, started the Stock Trader’s Almanac. Actually, he started doing the compilation and research for it just before I was born. He had been publishing the Indicator Digest back in the early 1960s with his older cousin, my godfather, Sam Coslow, who had a career in the movie and song-writing business prior to getting involved in the financial markets. Coslow wanted to take all the market indicators that were out there and put them all in a service that can be useful to those who invest in the markets. He ran an ad in Barron’s and it was successful. He called on my father, who was working with Sam in the song-writing business at the time, to run the operations."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-38-42-interview-jeffrey-hirsch-on-seasons-cycles-and-super-booms-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-38-42-interview-jeffrey-hirsch-on-seasons-cycles-and-super-booms-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-38-42-interview-jeffrey-hirsch-on-seasons-cycles-and-super-booms-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov32456ex,d,"{""minimum-quantity"":""1"",""path"":""ch9s2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:9 (43, 56): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
MAKING THE CALLS
Is it worth playing Apple’s September product launch?
Now that summer is almost over, and Apple (AAPL) stock’s 7-to-1 split is out of the way, what could make AAPL jump to new highs? After the performance the stock had in 2013, it was somewhat of a value play, but earlier this year, after a stellar earnings report, coupled with a stock buyback and stock split, it caught steam and as of summer 2014, the stock has run up 15% in three months. As AAPL nears its all-time highs of just above $100 (post-split price equivalent), what on earth could make this stock move even higher? Two words: product launch!
September is the time that kids go back to school, leaves start to fall off the trees, and football season is in front of us, but it’s also the time that AAPL prepares for its yearly product launch, just ahead of the holidays. Typically, this occurs in the third week of September, so we should be well ahead of the hype. Word on the street is that employees are being told not to go on vacation in September, so get ready."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-43-56-explore-your-options-by-tom-gentile-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-43-56-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-43-56-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov324prre9,d,"{""minimum-quantity"":""1"",""path"":""ch9s2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:9 (44–48): Product review: Advanced GET by eSignal by S&C Staff"",""caption-linebreaks"":""Product review: Advanced GET by eSignal by S&C Staff
INTERACTIVE DATA CORP.
3955 Point Eden Way
Hayward, CA 94545
Phone: 510 266-6000, 800 815-8256
Fax: 510 266-6100
Website: www.esignal.com
Product: Set of trading strategies that runs on the eSignal platform
System requirements: Windows 7, Vista, XP; Intel Core i3/i5/i7; 3 GB RAM; 250 MB available disk space; broadband Internet connection
Price: Fees vary depending on whether you buy a permanent license ($3,295) or a monthly license ($295/month); see pricing at website or call for more information. If you purchase a permanent license, you get a discount on most of the real-time datafeeds.
Advanced GET is a suite of trading strategies that extends the eSignal platform with additional features designed to provide greater insights into the market.
When Advanced GET was originally designed some years ago, it was exclusively about Elliott waves and Gann technique (that’s where the name “GET” came from), but eSignal’s implementation goes beyond that.
There are four different ways you can set up trades using the Advanced GET toolset: Elliott type 1 (a trend-continuation strategy), Elliott type 2 (a countertrend strategy), false bar stochastic (a sophisticated trend strategy), and eXpert trend locator, or XTL (a trade-with-the-trend strategy)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-44-48-product-review-advanced-get-by-esignal-by-s-c-staff-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-44-48-product-review-advanced-get-by-esignal-by-s-c-staff-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-44-48-product-review-advanced-get-by-esignal-by-s-c-staff-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov324quch,d,"{""minimum-quantity"":""1"",""path"":""ch9s2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:9 (49–50): Quick-Scan: ChartLabPRO by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Quick-Scan: ChartLabPRO by Jayanthi Gopalakrishnan
CHARTLABPRO
Phone: 646 360-3574
Website: www.ChartLabPro.com
Price: $12.95/month for ProLite or $115/year; $29.95 for full platform or $279/year; $44.95 for ProPlus platform or $399/year
At times when the markets are strong, your portfolio is healthy, and most of your individual stocks are making returns higher than you’ve seen in a long time, the question that goes through your mind is, “When should I sell?” Recently, I kept asking myself that very question about a stock I owned. I turned to ChartLabPRO with the hope it would help me make my decision. After all, its mission is to help traders become more profitable while helping them protect their investment.
So I logged onto the ChartLabPRO site, looked up the stock I was wondering about selling, and read what it said. As it turned out, the stock was considered very overbought, so I decided to sell it. Did I do the right thing? A couple of days later, I was glad I sold. In any case, I would like to share some of what I came across while on the ChartlabPRO website."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-49-50-quick-scan-chartlabpro-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-49-50-quick-scan-chartlabpro-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-49-50-quick-scan-chartlabpro-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov325trti5,d,"{""minimum-quantity"":""1"",""path"":""ch9s2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:9 (52–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Charlotte Hudgin’s article in this issue, “Finding The Golden Triangle.” Here we present the September 2014 Traders’ Tips code with possible implementations in various software.
The Traders’ Tips code given here is provided to help readers implement a selected technique from an article in this or another issue. The entries are contributed by various software developers or programmers for software that is capable of customization.
Readers will find the September 2014 Traders’ Tips code and formulas at our website, Traders.com, in the Traders’ Tips area. Here, you can read some discussion of the techniques’ implementation by the Traders’ Tips contributors as well as some example charts.
To locate Traders’ Tips at our website, Traders.com, click on the Traders’ Tips link from our “Home—S&C Magazine” menu at the top of the home page, or scroll down to the “Current articles” section and click on the Traders’ Tips tab."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-52-56-traders-tips-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-52-56-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-52-56-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov326bofo,d,"{""minimum-quantity"":""1"",""path"":""ch9s2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:9 (61): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers or could be self-published. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-61-books-for-traders-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-61-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-61-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov32660ro,d,"{""minimum-quantity"":""1"",""path"":""ch9s2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:9 (62, 60–61): The Roots Of Periodicity by Richard J. Johnson"",""caption-linebreaks"":""The Roots Of Periodicity by Richard J. Johnson
Squaring The Squiggles
It may seem ancient, it may seem complex; but it works and it’s simple. Here’s a look at how to analyze the markets using an insight gleaned from thinking about W.D. Gann’s squaring of price and time technique.
Legendary trader, mystic, and early market technician W.D. Gann frequently stated that one of the secrets to analyzing the markets was the squaring of price and time. What he meant by this has flummoxed technicians for decades. While there are some who offer this or that theory to answer for the mystery, no one today is certain what he really meant.
WILL WE EVER KNOW?
I offer no answer either. But thinking about it has encouraged me to slide over into a different angle of the issue, and, distinct from what Gann was probably thinking, propose that we can indeed kind of square price and time. I will do this by using the price to assign periodicity for the lookback periods utilized in two common indicators."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-62-60-61-the-roots-of-periodicity-by-richard-j-johnson-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-62-60-61-the-roots-of-periodicity-by-richard-j-johnson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-62-60-61-the-roots-of-periodicity-by-richard-j-johnson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov328leto6,d,"{""minimum-quantity"":""1"",""path"":""ch9s2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 32:9 (8–9): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
BUILDING AUTOMATIC TRENDLINES
Editor,
I have reread with great interest Giorgos Siligardos’ November 2006 article in STOCKS & COMMODITIES, “Building Automatic Trend-lines,” because of the question from Yi Wei that appeared in your July 2014 Letters To S&C column.
I tried to locate the author’s accompanying code for MetaStock both at the author’s website and at the StockS & commoditieS website but could not find it. How can I get the MetaStock code for Siligardos’ “Building Automatic Trendlines” article, if the code is still freely available?
Carl Gyzels,\nNijlen, Belgium
Author Giorgos Siligardos replies:
My old commercial website www.daedalussoft.com, which offered that add-in code and which was mentioned in my 2006 article, no longer exists. However, the GSautoTL.zip file that contains the MetaStock add-on code along with a helpful tutorial should still be available at the STOCKS & COMMODITIES magazine website."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-8-9-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-8-9-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-32-9-8-9-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov331trfo1,d,"{""minimum-quantity"":""1"",""path"":""ch2f2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:02 (10-14): Trading Forex: More On Charting by Imran Mukati"",""caption-linebreaks"":""Trading Forex: More On Charting by Imran Mukati
Between The Price Bars
In the fourth part of this six-part series, we’ll look at some of the more common chart patterns, moving averages, indicators, and Elliott wave theory.
In part 3, I touched upon some of the common candlestick chart patterns that you are likely to encounter when looking at currency charts. In this article, I’ll continue examining technical analysis by looking at some other tools that can be useful when trading the forex markets.
DOUBLE TOPS & BOTTOMS
The first patterns I’ll consider are double tops & double bottoms (Figures 1a & 1b). These patterns share similar characteristics with the head & shoulders pattern. The double top is a bearish signal, formed when a currency pair hits a resistance level, fails to break through, and attempts to break it again. After the second failure, the price falls. The point to which the price falls between these two peaks is the neckline. While it might look like a support line, it really isn’t much of one—something that becomes clear after the currency falls from its second peak and blows right through the neckline."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-10-14-trading-forex-more-on-charting-by-imran-mukati-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-10-14-trading-forex-more-on-charting-by-imran-mukati-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-10-14-trading-forex-more-on-charting-by-imran-mukati-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov331kito,d,"{""minimum-quantity"":""1"",""path"":""ch2f2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:02 (16-20): Kiss & Touch With The Modified True Range by Chris Lindgren"",""caption-linebreaks"":""Kiss & Touch With The Modified True Range by Chris Lindgren
A Double Shot
What is the probability of an underlying reaching a certain price prior to expiration? Find out using this new indicator.
When we talk about trading options, we almost always focus on the option’s probability of expiring in-the-money. This article is about the forgotten son of option trading: the probability of an underlying touching or reaching a certain price any time prior to expiration.
Traditional option-pricing models such as Black-Scholes incorporate the probability of an option expiring in-the-money (ITM). Most option contracts though, are closed early. According to the Chicago Board Options Exchange (CBOE), 55–60% of all contracts are closed prior to expiration. I suspect that this number is much higher for active traders."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-16-20-kiss-touch-with-the-modified-true-range-by-chris-lindgren-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-16-20-kiss-touch-with-the-modified-true-range-by-chris-lindgren-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-16-20-kiss-touch-with-the-modified-true-range-by-chris-lindgren-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov332caco,d,"{""minimum-quantity"":""1"",""path"":""ch2f2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:02 (22-25): Candlesticks, Condensed by Dave Cline"",""caption-linebreaks"":""Candlesticks, Condensed by Dave Cline
Strength In Patterns
They’re the life of the party—simple, elegant, and add so much value. Here’s how you can turn each candle bar into a set of three numbers so you can identify patterns and determine the strength of their predictive power.
Candlesticks are the epitome of information packaging. A candlestick can represent price action—the hem & haw of buyers vs. sellers for a minute, a day, or a year. They tell which party won in the end, which parties began their fight in the beginning, how high the buyers pressed the sellers, how low the sellers drove the buyers (Figure 1). Candles are a simple, elegant device yet they convey so much information.
COMPRESSING THEM
The variation of candle wick heights and bodies makes it challenging to use them as a tool to consistently tell you what the market is doing."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-22-25-candlesticks-condensed-by-dave-cline-28.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-22-25-candlesticks-condensed-by-dave-cline-33.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-22-25-candlesticks-condensed-by-dave-cline-34.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov332caco1,d,"{""minimum-quantity"":""1"",""path"":""faarfr207"",""ysw-page-title"":""Stocks & Commodities V. 33:02 (22-25): Candlesticks, Condensed by Dave Cline"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-22-25-candlesticks-condensed-by-dave-cline-35.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-22-25-candlesticks-condensed-by-dave-cline-36.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-22-25-candlesticks-condensed-by-dave-cline-37.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov332qure,d,"{""minimum-quantity"":""1"",""path"":""ch2f2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:02 (26-27): Quick-Scan: Reaction Point Timing Indicator By Barbara Star, PhD"",""caption-linebreaks"":""Quick-Scan: Reaction Point Timing Indicator By Barbara Star, PhD
REACTION POINT TIMING INDICATOR
Reaction Point Software
www.reactionpointtrading.com
info@reactionpointtrading.com
Phone: 800 521-0705
Product: Predictive indicator for time & price projections
Price: 10-day free trial (includes twice-weekly live online market reviews for 10 days); • $399 one-time fee for standalone Reaction Point indicator (NinjaTrader version) plus twice-weekly live online market reviews for 30 days; • $699 for the Reaction Point indicator plus a four-session in-depth market timing intelligence educational course and twice-weekly live online market reviews for 30 days.
With the Reaction Point Timing indicator, veteran trader John Crane created a way to automate the strategy he writes about in his books Unlocking Wealth and Advanced Swing Trading. He calls this method action/reaction trading with market timing intelligence. By this, he means a strategy that uses the law of action/reaction in conjunction with high-probability time & price projections to predict, identify, and trade future price action. The result is a unique indicator that forecasts time & price target objectives well in advance for stocks, commodities, and forex markets."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-26-27-quick-scan-reaction-point-timing-indicator-by-barbara-star-phd-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-26-27-quick-scan-reaction-point-timing-indicator-by-barbara-star-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-26-27-quick-scan-reaction-point-timing-indicator-by-barbara-star-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33236re,d,"{""minimum-quantity"":""1"",""path"":""ch2f2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:02 (28-33, 36): Rebuilding Skews by Massimiliano Scorpio"",""caption-linebreaks"":""Rebuilding Skews by Massimiliano Scorpio
The Eagle Eye
In this second of a two-part series, find out how constantly calibrating a skew model will result in a more timely and accurate volatility curve.
Last month in part 1, I emphasized the importance of the shape of the volatility skew when trading options. I also discussed how to create a template based on historical statistical research. Here in part 2, I will discuss how you can test the process and look at skews more closely.
I grouped the database into classes (one for each number of days to expiration, starting from 60 down to 1). I did not include data from the most recent year since I wanted to use it later for calibration and testing. For each day, I calculated the implied volatility (IV) to create a delta distribution table of normalized volatilities (see part 1 for details on how to create this). In Figure 1 you see a part of the table, that is, six rows of the 60 days to expiry class.
The next step is to define and measure the slope of the skew. I evaluated this issue through the following process:
Strangle IV size: I predetermined a list of strangles built from my delta table seen in part 1 (58%–42%, 66%–34%, 74%–26%, 82%–18%, 98%–2%). A strangle is an option strategy in which you buy (for a long strangle) or sell (for a short strangle) an out-of-the-money (OTM) strike call and put with the same expiration. Strikes have, for my purpose, been replaced by delta."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-28-33-36-rebuilding-skews-by-massimiliano-scorpio-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-28-33-36-rebuilding-skews-by-massimiliano-scorpio-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-28-33-36-rebuilding-skews-by-massimiliano-scorpio-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov333fiyo,d,"{""minimum-quantity"":""1"",""path"":""ch2f2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:02 (34-36): Fine-Tuning Your Risks by Dirk Vandycke"",""caption-linebreaks"":""Fine-Tuning Your Risks by Dirk Vandycke
Beyond The Obvious
In this second of a two-part series on managing risk, we look at how to overcome the disadvantages of diversification.
In part 1, it became clear that we need to bring profits and total return into the equation to evaluate the effects of diversification. However, it’s necessary to look beyond its common risk-lowering incentive and gain a more holistic view of diversification. While the advantages on the risk side are beneficial to all traders, from expert to layman, you mustn’t be blind to the disadvantages, mostly on the profit side. Diversification will spread risk, and hence lower it, but at the cost of averaging your returns. Let’s see if we can put this knowledge into practice.
DIVERSIFICATION vs. CONCENTRATION
Statistical expectancy tells us we have more control over the average size of winners and losers than over how frequently they occur. But frequency plays a role in profitability, so instead of trying to increase the numbers of winners while decreasing the number of losers, perhaps you should shift your focus to minimizing the size of losers and maximizing the size of winners."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-34-36-fine-tuning-your-risks-by-dirk-vandycke-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-34-36-fine-tuning-your-risks-by-dirk-vandycke-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-34-36-fine-tuning-your-risks-by-dirk-vandycke-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov333inse,d,"{""minimum-quantity"":""1"",""path"":""ch2f2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:02 (38-42): Interview: The Sell Side With James Cordier by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: The Sell Side With James Cordier by Jayanthi Gopalakrishnan
The Road Less Traveled
James Cordier is the founder of OptionSellers.com, an investment firm specializing exclusively in selling options. He is also the author of The Complete Guide To Option Selling, which was recently published in its third edition. Cordier’s market comments are regularly published by international financial publications and worldwide news services including CNBC, The Wall Street Journal, Fox Business, Reuters World News, Bloomberg Television, and MarketWatch.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with James Cordier on December 3, 2014 about the nuts & bolts of being on the sell side of trading options.
James, please tell us a little about yourself and how you got interested in trading options.
I spent almost three decades trading commodities. Like most people, I was trading futures and buying or selling corn, pork bellies, or cocoa based on what I thought the market was going to do. Of course, when you’re trading futures, your timing needs to be impeccable.
Since the leverage in commodity futures is something like 20-to-1, you really need to have a rabbit’s foot in your pocket, because the day you buy, if you’re off by a few days, you’ll probably be stopped out, or you wish you had stopped yourself out. I’ve been trading commodities since 1984 and learned a lot about the fundamentals of different markets such as crude oil, gold, cocoa, and soybeans. But the entire time, in the back of my mind I was thinking, “There’s got to be an easier way to do this.” Not everyone can pick the time to get in and the time to get out. It’s so difficult because of the leverage."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-38-42-interview-the-sell-side-with-james-cordier-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-38-42-interview-the-sell-side-with-james-cordier-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-38-42-interview-the-sell-side-with-james-cordier-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33448ex,d,"{""minimum-quantity"":""1"",""path"":""ch2f2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:02 (43, 48): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
CRUDE THERAPY
It’s no secret the oil industry has taken a spill and with all that’s going on in the world, or certain parts of it at least, the situation isn’t showing signs of reversing. The Organization of the Petroleum Exporting Countries (OPEC) made its decision on November 27, 2014 to not cut production, and that sent prices spiraling downward.
The assessment at that time was that there was a global glut of oil supply and that 2015 was not going to see a slowing down of that supply either. OPEC forecasted seeing an increase in supply in 2015. From June 2014 to December 2014, Brent crude oil saw a more than 50% drop in price. Last December, many felt the slide could go past 64, and in fact it did, hitting a five-year low that month. It didn’t stop there, as it continued to make five-year lows that month, sliding down to the upper $60 to lower $61 price-per-barrel levels."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-43-48-explore-your-options-by-tom-gentile-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-43-48-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-43-48-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334prre2,d,"{""minimum-quantity"":""1"",""path"":""ch2f2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:02 (44-46): Product review: OptionStrategist.com (Part 1) by Technical Analysis, Inc."",""caption-linebreaks"":""Product review: OptionStrategist.com (Part 1) by Technical Analysis, Inc.
McMILLAN ANALYSIS CORP.
PO Box 1323, Morristown, NJ 07962-1323
Phone: 800 724-1817, fax: 973 328-1303
Website: www.optionstrategist.com
Email: info@optionstrategist.com
Price: Various products and services are available. See website for details.
OptionStrategist.com offers three broad classes of products: advisories, analysis tools, and educational materials. Lawrence McMillan, founder of McMillan Analysis Corporation (MAC), is the force behind all of this is. MAC provides content to a host of well-reputed entities such as Forbes, CBOE, CNBC, MarketWatch, and Barron’s. Users of MAC products have the assurance that the products are well-vetted because they receive enormous exposure, sometimes on a daily basis. Let’s take a look at some of the products offered by OptionStrategist.com."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-44-46-product-review-optionstrategist-com-part-1-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-44-46-product-review-optionstrategist-com-part-1-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-44-46-product-review-optionstrategist-com-part-1-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334fufo,d,"{""minimum-quantity"":""1"",""path"":""ch2f2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:02 (47-48): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
IT’S ONLY MARGINAL
The CFTC has recently implemented new margining rules for FCMs (futures commission merchants). How does this impact retail traders in regard to margin calls?
Although it has been nearly three years since the collapse of futures giants MF Global and PFGBest, the commodity industry continues to feel wakes in the aftermath. Since their demise, regulators have been tirelessly drafting and implementing safeguards aimed at protecting futures traders from brokerage firm risk.
In light of the aforementioned events, the rules that worked well for decades were suddenly deemed inadequate. Unfortunately, as we learned as children on the playground and repeatedly throughout our lives, a few bad apples ruin it for the rest."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-47-48-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-47-48-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-47-48-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33461qa,d,"{""minimum-quantity"":""1"",""path"":""ch2f2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:02 (49, 61): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
LINEAR THINKING
In this month’s column, Rob Friesen, president & COO of Bright Trading, again fills in for Don Bright.
Expanding on the discussion from my recent columns but focusing on single-stock trading and pair or hedged positions, I’ll explore the if-then statement in different scenarios.
An if-then statement allows you to execute a trade based on a set of rules that you have outlined. A strategy consists of some rules that govern the type of stock, market conditions, and qualifiers of the trade. It must also consider the win potential and loss magnitude. Taking it further would incorporate different scenarios:
• Stock or pair could go up as you desired
• Stock or pair could go up a partial amount of your original goal
• Stock or pair could remain stationary or trade in a narrow range
• Stock or pair could drop in price."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-49-61-q-a-by-don-bright-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-49-61-q-a-by-don-bright-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-49-61-q-a-by-don-bright-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov335trti1,d,"{""minimum-quantity"":""1"",""path"":""ch2f2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:02 (50-55): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Dave Cline’s article in this issue, “Candlesticks, Condensed.” Here, we present the February 2015 Traders’ Tips code with possible implementations in various software.
Code in the Python language is already provided by Cline, which S&C subscribers will find in the Subscriber Area of our website at Traders.com:
• Traders.com -> Home–S&C Magazine -> S&C Article Code
The code for the Traders’ Tips section is posted here:
• Traders.com -> Home–S&C Magazine -> Traders’ Tips (Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-50-55-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-50-55-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-50-55-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov336dote,d,"{""minimum-quantity"":""1"",""path"":""ch2f2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:02 (60-62): Does Technical Analysis Work? by Stella Osoba, CMT"",""caption-linebreaks"":""Does Technical Analysis Work? by Stella Osoba, CMT
Art Meets Science
Yes, it can work, but it depends on how well you understand it and how you use it.
I remember talking to a fundamental investor once about technical analysis. The next day he sent me a line chart and asked me to predict what the market would do. He gave no more information; was it a stock, an index, a commodity, or some other market? Was it a tick chart, a minute chart, an hourly chart, a daily chart, a weekly or monthly chart? Was it a randomly generated line on a chart? Maybe, I said, the market would do what it was already doing, which was rising, or then again, it could fall. How was I to know what would happen the next day from a rising line on a chart? This was probably his way of proving to himself that technical analysis was nonsense. But in doing what he did, he proved nothing."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-60-62-does-technical-analysis-work-by-stella-osoba-cmt-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-60-62-does-technical-analysis-work-by-stella-osoba-cmt-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-60-62-does-technical-analysis-work-by-stella-osoba-cmt-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov338leto,d,"{""minimum-quantity"":""1"",""path"":""ch2f2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:02 (8): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
\nFLAGS & PENNANTS
\nEditor,
\nI saw Markos Katsanos’ article in the December 2014 S&C (“Detecting Flags In Intraday Charts”) and it prompted me to dig out an old stocks & commodities magazine with an article by Katsanos on flags and pennants (“Measuring Flags And Pennants”). At the time it was published in April 2005, I found it very interesting but didn’t have MetaStock so couldn’t implement it. I was curious as to what kind of success the author has had with the flag system since that article was published?
CHRIS
Author Markos Katsanos replies:
Thank you for your interest in my article. I have since improved the daily flag system that I initially wrote about nearly 10 years ago in this magazine, and I have been using it with success."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-8-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-8-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-02-8-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov331trfo2,d,"{""minimum-quantity"":""1"",""path"":""ch3m208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:03 (10-14): Trading Forex: Fundamental Analysis (Part 5) by Imran Mukati"",""caption-linebreaks"":""Fundamental Analysis (Part 5) by Imran Mukati
Necessary & Useful
Forex traders need to keep an eye on fundamental data such as interest rates, central bank policies, and economic data. In part 5 of this six-part series, we’ll take an in-depth look at these fundamental variables.
Just as in equity trading, there are two basic approaches to formulating forex trading strategies. In my previous articles in this series, I already introduced you to technical analysis. Its counterpart is fundamental analysis, which looks at issues like interest rates, central bank policies, and economics to make trading decisions. In this way, it is similar to dissecting the financial statements of a company when deciding whether to buy its stock.
FUNDAMENTALS HAVE THEIR PLACE
Because of the nature of the underlying mechanics, fundamental analysis is geared more for longer-term trading. Technical analysis tends to be more appropriate for short-term trading. However, it is possible to combine aspects of both."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-10-14-trading-forex-fundamental-analysis-part-5-by-imran-mukati-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-10-14-trading-forex-fundamental-analysis-part-5-by-imran-mukati-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-10-14-trading-forex-fundamental-analysis-part-5-by-imran-mukati-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov331qaby,d,"{""minimum-quantity"":""1"",""path"":""ch3m208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:03 (15): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
NOTE TO READERS
I want to thank Rob Friesen (president and COO of Bright Trading) for his help with this column for the last couple of months. His contributions are always appreciated. I was dealing with some health issues—I had a second heart valve replacement in November 2014. The procedure appears to be a success. I want to thank our readers for their emails of support. I’m looking forward to a much healthier 2015. A sincere thanks to all.
Now, digging into some recent questions, here is one paraphrased from two similar questions from readers:
MAKING SENSE OF THE PROGNOSTICATIONS
Mr. Bright, at the start of every year I just shake my head in disbelief when I suffer through stock market predictions from a variety of “experts.” I see complete 180-degree comments from many pundits, sometimes within the same organization. Do you or any of your traders use any of these prognostications with any benefit?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-15-q-a-by-don-bright-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-15-q-a-by-don-bright-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-15-q-a-by-don-bright-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov331moav,d,"{""minimum-quantity"":""1"",""path"":""ch3m208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:03 (16-22): Moving Averages: Some Finer Properties by Giorgos E. Siligardos, PhD"",""caption-linebreaks"":""Moving Averages: Some Finer Properties by Giorgos E. Siligardos, PhD
Know Thy Weapons
What is the difference between the 10-period of a five-period moving average and a 15-period moving average? Does the sum of moving averages equal the moving average of the sum? How does the smoothing of a ratio differ from the ratio of smoothing? How can you algorithmically calculate the weights of a smoothing procedure? Find the answers to such technical questions here.
All technical analysts eventually engage in creating their own indicators and methods. And they all eventually use some kind of smoothing method to filter out noise. Various moving average methods can be used to smooth a series of values. In this article, I will discuss four interesting properties of simple and exponential moving averages (here-after referred to as SMAs and EMAs, respectively). These two averaging methods are the most popular in the technical analysis world, and their weighting scheme is simple, so they have clear and nice properties. Those who aspire to create indicators should find the concepts discussed here useful."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-16-22-moving-averages-some-finer-properties-by-giorgos-e-siligardos-phd-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-16-22-moving-averages-some-finer-properties-by-giorgos-e-siligardos-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-16-22-moving-averages-some-finer-properties-by-giorgos-e-siligardos-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33243fu,d,"{""minimum-quantity"":""1"",""path"":""ch3m208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:03 (23, 43): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
OPPOSITES ATTRACT
Some are blaming the 2014 crude oil collapse on the strength of the US dollar; what are your thoughts?
The hideous decline in crude oil during the latter half of 2014 was the result of several factors at work; however, I believe the biggest role player was the currency market. At the time of this writing, the correlation between crude oil and the greenback was hovering near 91%. In other words, in roughly nine out of 10 occasions, the price of crude oil had moved in the opposite direction as the dollar (during a 180-day dataset). Thus, any significant repricing in the dollar vs. other major currencies has a profound impact on crude oil.
A quick look at the chart in Figure 1 tells a profound story of the relationship between crude oil and the US dollar. In July of 2014, the greenback found footing and forged a sharp rally; crude oil simultaneously peaked and fell precipitously. It is difficult to argue that each market is moving independently of the other."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-23-43-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-23-43-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-23-43-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov332mast,d,"{""minimum-quantity"":""1"",""path"":""ch3m208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:03 (24-27): MACD-Suitable Stocks by Kevin Luo"",""caption-linebreaks"":""MACD-Suitable Stocks by Kevin Luo
Gauging Momentum
Trading signals generated by the crossover of Gerald Appel’s moving average convergence/divergence and signal lines are popular and simple to use. Do they work for all stocks in all market conditions? Find out here.
The moving average convergence/divergence (MACD) signal line crossover is a popular technical indicator used by many traders and investors. The MACD was developed by Gerald Appel in the 1960s and is readily found in trading platforms of all types. It generates trading signals upon crossovers of its MACD and signal lines. The method is considered simple to use; however, many have doubts about how effective the method is. To find out whether the technique works, I conducted a backtest on a large portfolio of stocks traded on the major exchanges. The results of the backtest will help determine the level of effectiveness of the MACD method.
HERE'S WHAT I FOUND
In the study, I selected approximately one third or 1,816 stocks traded on the NYSE and NASDAQ for the backtest. These stocks met the following selection criteria:"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-24-27-macd-suitable-stocks-by-kevin-luo-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-24-27-macd-suitable-stocks-by-kevin-luo-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-24-27-macd-suitable-stocks-by-kevin-luo-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov332trsy,d,"{""minimum-quantity"":""1"",""path"":""ch3m208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:03 (28-31): Trading System Design: A Statistical Approach by John F. Ehlers and Ric Way"",""caption-linebreaks"":""Trading System Design: A Statistical Approach by John F. Ehlers and Ric Way
Judging By The Numbers
Here’s how to start with the basics and determine if an identifiable event has a statistical edge in predicting future prices—before you even start to build a trading system.
Many trading systems begin with indicators, and because of that, the question you should be asking is, “What do indicators indicate?” The correct answer is that most of the time, they don’t indicate much. Indicators are just specialized filters.
VISIBLE SIEVES
Some indicators, like the commodity channel index (CCI), relative strength index (RSI), and stochastic, are basically first-order high-pass filters that remove the longer wave components of the prices and display them as oscillators. Other indicators, like moving averages, are basically smoothing filters that remove the high-frequency components and aliasing noise. Of course, there are combinations of the two kinds of filters. The basic question still remains whether shaping the price data by filtering has any predictive power regarding future prices."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-28-31-trading-system-design-a-statistical-approach-by-john-f-ehlers-and-ric-way-28.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-28-31-trading-system-design-a-statistical-approach-by-john-f-ehlers-and-ric-way-36.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-28-31-trading-system-design-a-statistical-approach-by-john-f-ehlers-and-ric-way-37.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov332trsy1,d,"{""minimum-quantity"":""1"",""path"":""faarfr207"",""ysw-page-title"":""Stocks & Commodities V. 33:03 (28-31): Trading System Design: A Statistical Approach by John F. Ehlers and Ric Way"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-28-31-trading-system-design-a-statistical-approach-by-john-f-ehlers-and-ric-way-33.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-28-31-trading-system-design-a-statistical-approach-by-john-f-ehlers-and-ric-way-34.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-28-31-trading-system-design-a-statistical-approach-by-john-f-ehlers-and-ric-way-35.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov333nese,d,"{""minimum-quantity"":""1"",""path"":""ch3m208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:03 (32-35): News Sentiment by Stephen Massel"",""caption-linebreaks"":""News Sentiment by Stephen Massel
A New Frontier
News data, which has long been the province of institutional traders, is now making its way into the hands of retail traders. Here’s a look at how you can incorporate this data into your trading strategies.
We all know that news moves the markets, but what is less easy to determine is exactly how the market will react immediately after the news event as well as later, once market participants have had a chance to digest and analyze the news in more detail. The algorithmic interpretation of these news events and more detailed news stories has long been the province of the hedge funds, which have the resources to spend on research & development in this specialized area. However, as with most advanced technological developments, there comes a time when it becomes more widely available. The use of news analytics and news sentiment has reached this point, and more and more traders are now gaining an edge by using news data."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-32-35-news-sentiment-by-stephen-massel-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-32-35-news-sentiment-by-stephen-massel-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-32-35-news-sentiment-by-stephen-massel-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33338in5,d,"{""minimum-quantity"":""1"",""path"":""faarfr207"",""ysw-page-title"":""Stocks & Commodities V. 33:03 (36, 38-41): Interview: Using ETF Momentum Strategies With Les Masonson by Jayanthi Gopalakrishnan"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-36-38-41-interview-using-etf-momentum-strategies-with-les-masonson-by-jayanthi-gopalakrishnan-33.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-36-38-41-interview-using-etf-momentum-strategies-with-les-masonson-by-jayanthi-gopalakrishnan-34.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-36-38-41-interview-using-etf-momentum-strategies-with-les-masonson-by-jayanthi-gopalakrishnan-35.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33338in,d,"{""minimum-quantity"":""1"",""path"":""ch3m208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:03 (36, 38-41): Interview: Using ETF Momentum Strategies With Les Masonson by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Using ETF Momentum Strategies With Les Masonson by Jayanthi Gopalakrishnan
Don’t Get Caught Unaware
Leslie N. Masonson is president of Cash Management Resources, a financial consulting firm that he founded in 1987. Masonson’s 44-year career has spanned trading, investing, financial advisory services, bank operations management, teaching, and corporate cash/treasury management consulting. He was a financial advisor for six years offering investment management services to retail clients of large financial institutions.
Masonson has authored books on cash management, daytrading, market timing, and relative strength investing using ETFs. He also writes book reviews for Futures magazine and has written product reviews for this magazine. His website is www.buydonthold.com and he can be reached at lesmasonson@yahoo.com.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with him on January 5, 2015 about trading and investing in exchange traded funds (ETFs) using momentum strategies.
Les, why don’t you start by telling us a little bit about yourself and how you got interested in the financial markets.
I’ve been interested in the stock markets since 1957 when my grandmother gave me a few shares of PanAm Airways for my 13th birthday. From that point on I started reading about the markets, even though there were only a few books in my local library. I also traveled to Manhattan to visit the NYSE and AMEX visitor’s galleries during my summer breaks from junior high school. I opened a brokerage account for minors and I also attended a few stockholder annual meetings in the NYC area for companies that I owned."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-36-38-41-interview-using-etf-momentum-strategies-with-les-masonson-by-jayanthi-gopalakrishnan-28.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-36-38-41-interview-using-etf-momentum-strategies-with-les-masonson-by-jayanthi-gopalakrishnan-36.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-36-38-41-interview-using-etf-momentum-strategies-with-les-masonson-by-jayanthi-gopalakrishnan-37.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334exyo,d,"{""minimum-quantity"":""1"",""path"":""ch3m208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:03 (42-43): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
PROTECTING YOUR SMALLER STOCK PORTFOLIO
How do I hedge 10 shares of Google?
Years ago, my answer would have been, “Get 90 more shares, then we can talk.” But as of last year, that all changed with the introduction of mini options. It has now been a year since this product was introduced, and I typically wait a year before trading anything new. Let’s visit this “small” section of options to see if it might be a good fit for the smaller trader.
In March 2014, the CBOE launched a new product for the smaller investor looking to hedge odd-lot securities called mini options. What are they, how have they performed during the past year, and who is most likely to benefit from using these options?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-42-43-explore-your-options-by-tom-gentile-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-42-43-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-42-43-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33454pr,d,"{""minimum-quantity"":""1"",""path"":""ch3m208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:03 (44-46, 54): Product review: OptionStrategist.com (Part 2) by Technical Analysis, Inc."",""caption-linebreaks"":""Product review: OptionStrategist.com (Part 2) by Technical Analysis, Inc.
McMILLAN ANALYSIS CORP.
PO Box 1323Morristown, NJ 07962–1323
Phone: 800 724-1817 Fax: 973 328-1303
Email: info@optionstrategist.com Website: www.optionstrategist.com
Price: Various products and services are available. See website for details.
Here in the second part of this two-part review, we’ll discuss The Option Strategist newsletter and other products and services offered by OptionStrategist.com.
OPTION STRATEGIST NEWSLETTER
The newsletter comes out biweekly and has an update called the hotline in between those weeks. It is typically 12 pages long and contains a wealth of information. It starts out with educational material such as an explanation of a specific strategy. There will often be examples to help explain the item under discussion.
The newsletter has specific areas it covers in every publication. Following the educational/informative feature article is a table of follow-up actions as required for each open position. Next is a section titled sentiment indicators in which a stock market outlook is given based on various technical indicators, followed by sections on index options & volatility skewing, extremes in sentiment, and put–call ratios (Figure 1)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-44-46-54-product-review-optionstrategist-com-part-2-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-44-46-54-product-review-optionstrategist-com-part-2-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-44-46-54-product-review-optionstrategist-com-part-2-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334trti,d,"{""minimum-quantity"":""1"",""path"":""ch3m208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:03 (47-54): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is John Ehlers & Ric Way’s article in this issue, “Trading System Design: A Statistical Approach.” Here, we present the March 2015 Traders’ Tips code with possible implementations in various software.
Code in EasyLanguage is already provided by Ehlers & Way in their article, which S&C subscribers will find in the Subscriber Area of our website:
• Traders.com - Home–S&C Magazine - S&C Article Code
The code for the Traders’ Tips section is posted here:
• Traders.com - Home–S&C Magazine - Traders’ Tips (Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-47-54-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-47-54-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-47-54-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov335bofo,d,"{""minimum-quantity"":""1"",""path"":""ch3m208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:03 (58): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included:
Doug Kass On The Market: A Life On TheStreet
No One Loves Your Money Like You Do: The Ultimate Retirement Planning Guide For Business Owners And Private Practitioners
The Intelligent Option Investor: Applying Value Investing To The World Of Options
Dual Momentum Investing: An Innovative Strategy For Higher Returns With Lower Risk
Mystifying Square, Divine Proportions: Nature’s Black Box"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-58-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-58-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-58-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov336plma,d,"{""minimum-quantity"":""1"",""path"":""ch3m208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:03 (60-62): Play The Markets And Keep Your Day Job by Azeez Mustapha"",""caption-linebreaks"":""Play The Markets And Keep Your Day Job by Azeez Mustapha
Don’t Quit Just Yet
Not ready to be a full-time trader? Here’s a high-probability, part-time trading strategy that will help you master the markets before you commit to it full time.
To be a winning trader, you need to master a discrete edge. But how do you gain that edge, especially if you are a part-time trader? Whenever you analyze the markets objectively, each trade you make will be of some benefit. Some of the most competent analysts are able to pinpoint winning signals constantly and control risk. Your ability to sight winning conditions is what will make a world of difference.
CAN YOU TRADE AND KEEP YOUR DAY JOB?
Some traders — maybe you’re one of them — keep their jobs while using trading systems that allow them to trade on a part-time basis. Such traders would not use short-term strategies, since that would require that they stay glued to their screen most of the day. The trading systems that are well suited to part-time traders are usually longer term in nature."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-60-62-play-the-markets-and-keep-your-day-job-by-azeez-mustapha-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-60-62-play-the-markets-and-keep-your-day-job-by-azeez-mustapha-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-60-62-play-the-markets-and-keep-your-day-job-by-azeez-mustapha-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov338leto1,d,"{""minimum-quantity"":""1"",""path"":""ch3m208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:03 (8-9): Letters to S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters to S&C by Technical Analysis, Inc.
SUPERSMOOTHER OSCILLATOR AND EXCEL SPREADSHEET
Editor,
I really enjoyed John Ehlers’ article “Whiter Is Brighter” in your January 2015 issue. He has a way of translating unfamiliar concepts into something useful to us. And the results and final equation prove that out.
The article’s pseudocode of b1 in the calculation for the SuperSmoother uses angles for the cosine. To code it using radians, for example, in Excel, the cell pseudocode for the tunable constant b1 would look like this:
b1 =\n2*a1*COS(RADIANS\n(1.414*3.14159/BandEdge))"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-8-9-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-8-9-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-03-8-9-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov331caan,d,"{""minimum-quantity"":""1"",""path"":""ch4a2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:04 (10–12): Candlesticks And The Haguro Method by Gary Burton"",""caption-linebreaks"":""Candlesticks And The Haguro Method by Gary Burton
Lighting The Path
As technical traders, we must always consult the market. Here’s a method that sets clear support & resistance levels and can be used to trade futures, equities, and forex pairs.
In this article I will attempt to give justice to the outstanding observations about market movements made by Seiki Shimizu in his book The Japanese Chart Of Charts. Shimizu’s text documents expected price movements following a particular candlestick shape.
As technical traders, we must always consult the market about the market. This is the first tenant of any technical trading system. As Shimizu put it:
\""We should look at the market movement itself rather than look at economic policies. The art of candlestick charting started in the late 17th century in the port city Sarkata during the 8th Shogunate period long before forward-looking economic policy was considered as an investing tool. The trader should look at market movements as the ebb & flow of a river of the greater market emotions...\"""",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-10-12-candlesticks-and-the-haguro-method-by-gary-burton-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-10-12-candlesticks-and-the-haguro-method-by-gary-burton-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-10-12-candlesticks-and-the-haguro-method-by-gary-burton-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov331trfo3,d,"{""minimum-quantity"":""1"",""path"":""ch4a2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:04 (14–19): Trading Forex: Planning Your Strategy by Imran Mukati"",""caption-linebreaks"":""Trading Forex: Planning Your Strategy by Imran Mukati
The Value Of Knowledge
In the final part of this introductory series on forex trading, we look at some important aspects of trading strategies and how you can develop one. We’ll also look at some sources of data and potential indicators to use in forex trading.
Planning your trading strategy requires a thorough understanding of the market you wish to trade. If you’re going to trade the forex markets, the first step is to understand how certain markets are interrelated. One of the most important relationships to watch in the currency markets is how the various pairs and crosses are correlated with price movements in commodities especially. A correlation is, as the name tells us, a relationship between two things. In the financial markets, correlation means that an equity, currency pair, commodity, or market moves predictably along with another. Correlation can be positive, in that when A moves up, so does B; or it can be negative, meaning that when A increases, B decreases (and vice versa)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-14-19-trading-forex-planning-your-strategy-by-imran-mukati-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-14-19-trading-forex-planning-your-strategy-by-imran-mukati-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-14-19-trading-forex-planning-your-strategy-by-imran-mukati-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov332capi,d,"{""minimum-quantity"":""1"",""path"":""ch4a2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:04 (20–21): Calculating Pip Values by Karl Montevirgen"",""caption-linebreaks"":""Calculating Pip Values by Karl Montevirgen
It’s All Transparent
Does it make a difference if your domestic currency is the first currency or second currency? It sure does, and it affects how the currency is valued. Here are some different scenarios you can encounter and how you can calculate the pip values in each of these situations.
Prior to opening any live positions in the FX markets, it is advisable for traders to fully understand how to calculate pip values so they know their positional risks and can determine appropriate position sizes. Because currencies are traded in pairs, for example, the EUR/USD, the pip-value calculations will differ according to a currency’s placement within the pair structure. In other words, pip value calculation will differ according to whether your domestic currency is the base currency (first currency) or quote currency (second currency). I will go over this in more detail later. If you are trading a pair in which your domestic currency is neither the base nor quote currency, then you will have to calculate the value of one of the currencies (base or quote) and convert that to your domestic currency in order to find the pip value."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-20-21-calculating-pip-values-by-karl-montevirgen-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-20-21-calculating-pip-values-by-karl-montevirgen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-20-21-calculating-pip-values-by-karl-montevirgen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov332batr,d,"{""minimum-quantity"":""1"",""path"":""ch4a2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:04 (22–25): Basket Trading Using A Directed Acyclic Graph by Dave Cline"",""caption-linebreaks"":""Basket Trading Using A Directed Acyclic Graph by Dave Cline
A Tight Clique
When trading a basket of securities, one or two nonconforming stocks will throw your system off track. Here’s one way to ensure that the components of your portfolio travel together.
To successfully trade a mean-reverting basket of securities means the participants must behave and revert to the mean. If you get a couple of nonconformist stocks in your group, your entire system can get thrown off its wheels. Confirming that you have a collection of securities that constantly move together is a must in building such a basket. In this article, I’ll demonstrate how to use a directed acyclic graph when selecting the components in your basket of securities to help ensure that your portfolio of instruments, in general, travel as one.
DIRECTED ACYCLIC GRAPH
A directed acyclic graph, or DAG, is like a network graph on a social site. If friend A and friend B are both friends with C, then chances are A and B might also be friends. A DAG represents the relationship map between nodes. You could think of it as the six degrees of separation of the equity world. In this case, the nodes of the graph are equities and the relationship metric I’ll use is correlation. My objective is to build a network of equities that are all as correlated as a group as you can get them. See Figure 1 for an example."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-22-25-basket-trading-using-a-directed-acyclic-graph-by-dave-cline-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-22-25-basket-trading-using-a-directed-acyclic-graph-by-dave-cline-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-22-25-basket-trading-using-a-directed-acyclic-graph-by-dave-cline-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov332slre,d,"{""minimum-quantity"":""1"",""path"":""ch4a2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:04 (26–30): The Slow Relative Strength Index by Vitali Apirine"",""caption-linebreaks"":""The Slow Relative Strength Index by Vitali Apirine
The Tortoise Or The Hare
J. Welles Wilder’s classic relative strength index has enjoyed a large following of technical analysts over the years. Here’s a slow version of it.
The slow relative strength index (SRSI) is a momentum price oscillator that measures change in price movements relative to an exponential moving average (EMA). Like the relative strength index, it oscillates between zero and 100. SRSI is considered overbought when above 80 and oversold when below 20. SRSI can also generate signals by looking for divergences and centerline crossovers. Sounds similar to RSI, doesn’t it? It is, and in fact, I use Wilder’s RSI formula to calculate the SRSI."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-26-30-the-slow-relative-strength-index-by-vitali-apirine-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-26-30-the-slow-relative-strength-index-by-vitali-apirine-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-26-30-the-slow-relative-strength-index-by-vitali-apirine-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33333fu,d,"{""minimum-quantity"":""1"",""path"":""ch4a2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:04 (31, 33): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
TREASURY BOND FUTURES: TRADE OF A LIFETIME?
There is a massive spread between the March T-bond futures contract and the June contract. What could cause this?
As traders shifted focus from the March 2015 30-year bond futures contract to the June 2015 contract, calls and emails began flooding in to me. In general, futures traders are aware of, and accept, a certain amount of contango, or backwardation representing the difference between the current contract month and those contracts with more distant expirations. However, the massive spread between the June and March 30-year bond futures is breathtaking—it left many wondering if it was a rare market inefficiency, or even the trade of a lifetime. But it isn’t, and there’s a good explanation."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-31-33-futures-for-you-by-carley-garner-29.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-31-33-futures-for-you-by-carley-garner-33.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-31-33-futures-for-you-by-carley-garner-34.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov333exyo,d,"{""minimum-quantity"":""1"",""path"":""ch4a2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:04 (32–33): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
IS HEALTH CARE THE ULTIMATE HEDGE?
Heath care companies have gained a lot of attention in the last year since Obama-Care (formally called the Affordable Care Act) cranked into full gear in the US. This new legislature is designed to allow (force) all Americans to have some form of health insurance, regardless of age, employment, or previous illnesses. I get a lot of questions about health care and health care stocks. The most popular tend to be:
1. What is the Affordable Care Act (ACA) and what are its impacts on Americans?
2. How has the ACA impacted the health care sector?
3. What is the best way to trade this, if at all?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-32-33-explore-your-options-by-tom-gentile-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-32-33-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-32-33-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33336in,d,"{""minimum-quantity"":""1"",""path"":""ch4a2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:04 (34, 36–39): Interview: Finding The Trend in FX With Tyler Yell by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Finding The Trend in FX With Tyler Yell by Jayanthi Gopalakrishnan
Tyler Yell, CMT, is a currency analyst and trading instructor for DailyFX.com. He began trading equities in his own account after graduating from Texas State University in 2005. He came to FXCM (which owns DailyFX.com) from JPMorgan Chase, where he began trading forex back in 2007. In his work, he tries to teach market truths like risk management and technical setups in a way that newer traders can understand. His technically focused strategy looks mainly at price action across multiple time frames to try to catch the big moves that develop throughout the year. He believes there is always a move worth trading, and he wants to teach traders how to find those moves.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Tyler Yell on February 4, 2015 about how to identify profitable moves in the forex markets.
Tyler, could you tell us a little bit about yourself and how you got interested in trading currencies?
I came from a wealth advisor background, working mostly in investments with JP Morgan. I was also working with foreign exchange for some of my wealthier clients. This was around 2005 and these clients were asking me if I was familiar with the forex market. I was only familiar with that market at a surface level. These clients told me about how the forex markets presented opportunities not available in other markets due to rollover, leverage, and the 24-hour nature of the market. That piqued my interest, since I have always been a fan of how one story globally affects another story. We are seeing a lot of that going on now with oil kicking off this deflationary spiral, which is causing central banks to panic."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-34-36-39-interview-finding-the-trend-in-fx-with-tyler-yell-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-34-36-39-interview-finding-the-trend-in-fx-with-tyler-yell-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-34-36-39-interview-finding-the-trend-in-fx-with-tyler-yell-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33447tr,d,"{""minimum-quantity"":""1"",""path"":""ch4a2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:04 (40–41, 47): The Trader’s Psyche by Solomon Chuama"",""caption-linebreaks"":""The Trader’s Psyche by Solomon Chuama
Nothing More Than Feelings
Three parties are involved in trading: the buyer, the seller, and you. Your behavior and actions play an important role in your trading results. Here’s how you can use them to your benefit.
Our behavior and actions—not the market’s—are the catalyst that drives our results. The market is a strong force that is beyond anybody’s control. Successful trading can be achieved through personal determination, a disciplined trading lifestyle, and perseverance. It sounds easy, but if it were easy, there would be a higher success rate among traders. Why are 90% of traders unsuccessful? Does it have to do with their psychology?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-40-41-47-the-trader-s-psyche-by-solomon-chuama-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-40-41-47-the-trader-s-psyche-by-solomon-chuama-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-40-41-47-the-trader-s-psyche-by-solomon-chuama-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334quwa,d,"{""minimum-quantity"":""1"",""path"":""ch4a2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:04 (42): Quick-Scan: WallStreetWindow.com by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Quick-Scan: WallStreetWindow.com by Jayanthi Gopalakrishnan
WALLSTREETWINDOW.COM
Timingwallstreet, Inc.
PO Box 11658, Danville, VA 24543
Product: WallStreetWindow Monthly financial investment newsletter ($197 for a lifetime subscription, which includes a 60-day trial period); WallStreetWindow Power Investor premium trading service (not currently accepting new members)
The financial markets, as we know, are global and cover multiple asset classes. If you narrowed your vision of the market to just one market, you’d be doing yourself a disservice. It’s evident from reading the newsletter and commentaries available on WallStreetWindow.com that founder and chief editor Mike Swanson believes in the importance of keeping an eye on how the global markets are performing. As he states in one of his newsletter issues, he invests in multiple markets mostly through exchange traded funds (ETFs)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-42-quick-scan-wallstreetwindow-com-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-42-quick-scan-wallstreetwindow-com-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-42-quick-scan-wallstreetwindow-com-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334qaby,d,"{""minimum-quantity"":""1"",""path"":""ch4a2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:04 (43): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
OPEN OUTCRY
Before we get to this month’s question and answer, I would like to share a few words about the upcoming closure of many of the Chicago Mercantile’s open outcry trading pits. The Chicago Mercantile Exchange (CME) was opened in 1848 and was the world’s first futures exchange. Back then it allowed farmers to “lock in” future prices on their grains, thus giving them an “automatic buyer” for the upcoming harvest. They soon added commodities ranging from butter (at the Chicago Product Exchange) to pork bellies, with livestock becoming central. We can thank those exchange members for coming up with nearly 30 rules governing butter grading. (Are there really that many grades of butter?)"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-43-q-a-by-don-bright-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-43-q-a-by-don-bright-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-43-q-a-by-don-bright-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334ezgu,d,"{""minimum-quantity"":""1"",""path"":""ch4a2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:04 (44–47): The EZ Guide To Selecting ETFs by Rudy Teseo"",""caption-linebreaks"":""The EZ Guide To Selecting ETFs by Rudy Teseo
What, When, How?
Decisions, decisions, decisions… the best ones are based on knowledge.
How do you choose an exchange traded fund (ETF)? Given the number of ETFs that have sprung up over the years, it’s difficult to select the ones you want to put your hard-earned money into. They’ve proliferated like mutual funds. And they have the same categories to confuse you even more. So do you use fundamental analysis, technical analysis, or a combination of both (in my opinion, always a good idea)? Do you pull up a chart to see if the ETF is in an uptrend? What benchmark do you use—another ETF, an individual stock, or one of the indexes?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-44-47-the-ez-guide-to-selecting-etfs-by-rudy-teseo-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-44-47-the-ez-guide-to-selecting-etfs-by-rudy-teseo-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-44-47-the-ez-guide-to-selecting-etfs-by-rudy-teseo-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334trti1,d,"{""minimum-quantity"":""1"",""path"":""ch4a2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:04 (48–55): Traders' Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders' Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is mainly Dave Cline’s article in this issue, “Basket Trading Using A Directed Acyclic Graph,” with some Traders’ Tips focusing on “Kiss & Touch With The Modified True Range” by Chris Lindgren, which appeared in the February 2015 issue.
Here, we present the April 2015 Traders’ Tips code with possible implementations in various software. Code already provided by Cline or Lindgren in their articles can be found in the Subscriber Area of our web-site:
• Traders.com > Home–S&C Magazine > S&C Article Code
The code for the Traders’ Tips section is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-48-55-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-48-55-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-48-55-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov335bofo1,d,"{""minimum-quantity"":""1"",""path"":""ch4a2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:04 (58): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
Option Volatility & Pricing: Advanced Trading Strategies And Techniques, Second Edition
Getting Started in Stock Analysis, Illustrated Edition
Wiley Study Guide for 2015 Level II CFA Exam: Complete Set
MONEY: How The Destruction Of The Dollar Threatens The Global Economy And What We Can Do About It
Virtual Banking: A Guide to Innovation And Partnering"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-58-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-58-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-58-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33661lo,d,"{""minimum-quantity"":""1"",""path"":""ch4a2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:04 (62, 61): Loss Aversion by Stella Osoba"",""caption-linebreaks"":""Loss Aversion by Stella Osoba
Debug Yourself
By nature, we are wired to act in certain ways when confronted with specific situations. Being aware of these types of behavioral patterns is a first step toward conquering them. Here’s a look at how we typically react to situations that arise in the financial markets.
We dislike losses far more than we like gains. This is a cognitive bias known as loss aversion. Understanding this bias and how it manifests itself in our trading decisions can help to offset some of the more harmful decisions we are likely to make as traders. Loss aversion can lead to the unfortunate behavior known as the disposition effect, where we sell our winners too soon and hold onto our losers for too long.
Studies have shown that the psychological pain caused by losses far exceeds the pleasure of a gain. This is a natural tendency of our wiring as humans. In the wild, primitive man had to be able to deal with threatening situations with far more urgency than opportunity."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-62-61-loss-aversion-by-stella-osoba-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-62-61-loss-aversion-by-stella-osoba-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-62-61-loss-aversion-by-stella-osoba-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33855le,d,"{""minimum-quantity"":""1"",""path"":""ch4a2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:04 (8–9, 55): Letters to S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Stocks & Commodities V. 33:04 (8–9, 55): Letters to S&C by Technical Analysis, Inc.
DETECTING FLAGS SPREADSHEET
Editor,
I downloaded Ron McAllister’s Excel spreadsheet file on detecting flags from your December 2014 issue and refreshed the data. On the calculation and charts tab, the flag finder columns all have #N/A in them. I tried a number of different symbols but I get the same result. I’m assuming this is not correct. Is there something I need to modify or check?
Gary Lawson
Traders’ Tips contributor Ron McAllister replies:
Thank you for your interest in my Excel spreadsheet from the December 2014 Traders’ Tips column of this magazine; the topic that month was Markos Katsanos’ article in the same issue, “Detecting Flags In Intraday Charts.”"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-8-9-55-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-8-9-55-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-04-8-9-55-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov331fipr,d,"{""minimum-quantity"":""1"",""path"":""ch5m2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:05 (12–21): Filtering Price Movement by Giorgos E. Siligardos, Ph.D."",""caption-linebreaks"":""Filtering Price Movement by Giorgos E. Siligardos, Ph.D.
For Your Digital Eyes Only
Here is an alternative to the classic zigzag indicator, which may prove useful to visual technical analysts and chart pattern researchers.
When there is need for algorithmic identification of price swings in a chart, there is a word that always comes to mind for technical analysts: zigzag. The zigzag indicator is based on the concept from Arthur Merill’s 1977 book Filtered Waves, Basic Theory: A Tool For Stock Market Analysis. It filters price movements below a cutoff level, that is, a threshold. The threshold is either in point terms or in percentage terms. If you were, for example, using a threshold of x points, the zigzag would disregard all price movements less than x points. If, on the other hand, you used a threshold of x percent, the zigzag would disregard all price movements of magnitude less than x percent. When plotted, the zigzag is shown as a crooked line connecting peaks and troughs. The line segments of the zigzag are commonly referred to as its legs.
Notwithstanding that the zigzag identifies prominent peaks and troughs, it doesn’t filter the price swings the same way a technician’s eye would. In this article, I will introduce you to a more natural way of filtering the price, which is accomplished via what are called perceptually important points. This alternative to the classic zigzag indicator is closer to the way a human perceives the movement of price..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-12-21-filtering-price-movement-by-giorgos-e-siligardos-ph-d-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-12-21-filtering-price-movement-by-giorgos-e-siligardos-ph-d-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-12-21-filtering-price-movement-by-giorgos-e-siligardos-ph-d-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov332mere,d,"{""minimum-quantity"":""1"",""path"":""ch5m2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:05 (22–24): Mean Reversion And The S&P 500 by Stephen Beatson"",""caption-linebreaks"":""Mean Reversion And The S&P 500 by Stephen Beatson
Rhythm Of The Markets
It is generally believed that markets tend to mean-revert. But this is true for some markets more than others. Here’s an in-depth look at how the S&P 500 responds to mean reversion.
Mean reversion is not a universal phenomenon; some markets have a tendency toward mean reversion, while others don’t. This has led a number of analysts and traders to look upon mean reversion with some degree of suspicion. If mean reversion has a solid statistical foundation, should it not be applicable to all markets all the time?
DIFFERENT STROKES
The simple truth is that some markets respond well to mean-reversion strategies, and others don’t. There are several possible explanations for this, including what factors drive the instrument’s price (macro economics, earnings, news, and so on); the number of market participants; the ability to take short positions; the volumes involved; and the average volatility of the instrument in question..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-22-24-mean-reversion-and-the-s-p-500-by-stephen-beatson-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-22-24-mean-reversion-and-the-s-p-500-by-stephen-beatson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-22-24-mean-reversion-and-the-s-p-500-by-stephen-beatson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33262fu,d,"{""minimum-quantity"":""1"",""path"":""ch5m2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:05 (25, 62): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
PIT CLOSURE IMPACT
What impact will the CME’s pit closure have on the average trader?
In early 2015, the Chicago Mercantile Exchange (CME) announced that it would be closing pit trading for all futures contracts in its Chicago and New York operations, with the exception of the full-sized S&P 500 contract and most of its option pits.
The S&P 500 futures contract was the only product that had never been moved to “the screen.” While all other CME futures products traded in both an electronic version and open-outcry version side-by-side, execution in the “big” S&P has always been strictly open outcry. Because of this, many traders moved their speculation from the original S&P contract into the electronically executed emini S&P 500 futures (ES) to avoid the delays and slippage that sometimes came with pit-traded execution..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-25-62-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-25-62-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-25-62-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov332prvi,d,"{""minimum-quantity"":""1"",""path"":""ch5m2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:05 (26–28): Predicting The VIX By Reordering Data by Stephen Butts"",""caption-linebreaks"":""Predicting The VIX By Reordering Data by Stephen Butts
The Road Ahead
In recent years, the CBOE Volatility Index (VIX) has increased in importance and use as an indicator of market direction. This article demonstrates how the direction of tomorrow’s change in the VIX might be determined by restructuring readily available market data.
As usually presented, financial data is ordered in a time series: The data runs from left to right or top to bottom by increasing values of days, months, years, and so on. The data may be altered (with a moving average, lagged values, the log, or square taken, and so forth), but in most cases, data is envisioned and laid out according to the arrow of time. Patterns are then observed or discovered in this time-based frame-work, and this makes great sense: The factor that may produce tomorrow’s market moves are likely to come from today and previous days..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-26-28-predicting-the-vix-by-reordering-data-by-stephen-butts-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-26-28-predicting-the-vix-by-reordering-data-by-stephen-butts-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-26-28-predicting-the-vix-by-reordering-data-by-stephen-butts-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33245qa,d,"{""minimum-quantity"":""1"",""path"":""ch5m2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:05 (29, 45): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
MARKET LIQUIDITY AND THE TICK SIZE PILOT PROGRAM
Mr. Bright, thanks for all the informa-tion over the years. Your columns have been very helpful. I have been hearing/reading about the possibility of changing from the penny tick size in trading. I have to admit that I’m not sure what this even means. Are exchanges going to make changes? Will traders benefit from these changes? Does this mean the end to subpennies? (I’ve read some of your past columns on the topic of subpennies.) Are these changes coming soon? —Ted A.
Thanks, Ted, for the nice words. Always glad to help. Please keep the questions coming. To address your question, what you’re referring to is the Tick Size Pilot Program (SEC File No. 4-657). “Tick size” here refers to expanding the minimum tick to five cents (or similar) for certain smaller-cap securities. Remember, we “old guys” traded with 1/8th tick sizes and what was called “teenies” (12.4 cents and 6.25 cents as the minimum tick size)..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-29-45-q-a-by-don-bright-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-29-45-q-a-by-don-bright-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-29-45-q-a-by-don-bright-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33310se,d,"{""minimum-quantity"":""1"",""path"":""ch5m2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:05 (30–33): 10 Selling Tips by Thomas Bulkowski"",""caption-linebreaks"":""10 Selling Tips by Thomas Bulkowski
Psst, Here’s A Secret
Do you spend as much time deciding to sell as deciding to buy? Here are 10 tips to make deciding when to sell easier.
The stock of Ferro Corporation (FOE) has flatlined like a dead animal since November 2013. It is now 2015, and I have more than doubled my money. Should I sell? Every trader or investor must answer that type of question for their own investments. In this article, I’ll discuss 10 selling tips to help you find your answer.
Tip #1: Use stops. This has to top the list of selling techniques because it makes the process simple. If you use a stop-loss order, you can quit worrying about when to sell. The order will take care of that. All you have to do is locate the stop in the right place. Stop placement is an art beyond this article, but if you are having difficulty, use a volatility stop.
I learned about volatility stops from Perry Kaufman’s book A Short Course In Technical Trading. The idea behind a volatility stop is to place a stop far enough away from the current price to avoid being stopped out on normal price movement. A volatility stop works well when no other stop locations are nearby..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-30-33-10-selling-tips-by-thomas-bulkowski-29.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-30-33-10-selling-tips-by-thomas-bulkowski-33.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-30-33-10-selling-tips-by-thomas-bulkowski-34.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33310se1,d,"{""minimum-quantity"":""1"",""path"":""faarfr207"",""ysw-page-title"":""Stocks & Commodities V. 33:05 (30–33): 10 Selling Tips by Thomas Bulkowski"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-30-33-10-selling-tips-by-thomas-bulkowski-35.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-30-33-10-selling-tips-by-thomas-bulkowski-36.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-30-33-10-selling-tips-by-thomas-bulkowski-37.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33336in1,d,"{""minimum-quantity"":""1"",""path"":""ch5m2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:05 (34, 36–40): Interview: TA For The Longer Term With Boon Chin Low by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: TA For The Longer Term With Boon Chin Low by Jayanthi Gopalakrishnan
Knowledge, Patience, Discipline
BC Low has been a teacher and practitioner of technical analysis since the 1980s. He is one of Singapore’s earliest practitioners to attain the Chartered Market Technician credential from the Market Technicians Association, which is based in New York.
From 1991 to 2011, Low was a senior lecturer at Singapore Polytechnic, where he introduced education in technical analysis to the curriculum. He created and taught two modules of “Technical Analysis and Trading,” the only formal course on technical analysis in Singapore.
Low has been active in the Singapore Technical Analysts & Traders Society (STATS) since the 1990s. He launched the Certificate in Technical Analysis (CTA) through STATS in 2004; he launched the society’s Diploma in Technical Analysis (DTA) in 2010. Prior to his work at Singapore Polytechnic, Low was a technical analyst for Merrill Lynch Bank, where he provided currency views to dealers, private bankers, and institutional clients. Currently, he continues to trade his own equity. His recent book release is Integrating Technical Analysis For The Investor.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan communicated with him via email in early March 2015 to find out more about how longer-term investors can apply technical analysis."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-34-36-40-interview-ta-for-the-longer-term-with-boon-chin-low-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-34-36-40-interview-ta-for-the-longer-term-with-boon-chin-low-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-34-36-40-interview-ta-for-the-longer-term-with-boon-chin-low-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33445ex,d,"{""minimum-quantity"":""1"",""path"":""ch5m2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:05 (41, 45): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
BUYING INSURANCE
Which way will oil and energy prices go as we head into the spring and summer months, and how can you trade these markets?
As spring creeps up on us, so does the winter thaw out of the Northeast. For much of the winter season, record amounts of snowfall blanketed the north-eastern part of the United States, with some storms so fierce, they were given names such as Pandora and Thor.
Those poor Nor’easters, as I like to call them, are happy that the winter season of 2014–2015 is finally behind them. So much so that “cabin fever” is in full effect from North Carolina up to Maine. People are eager to get out and travel, and this should bode well for oil and gas demand..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-41-45-explore-your-options-by-tom-gentile-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-41-45-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-41-45-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334prre3,d,"{""minimum-quantity"":""1"",""path"":""ch5m2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:05 (42–44): Product review: Haguro Method (MetaStock add-on) by Technical Analysis, Inc."",""caption-linebreaks"":""Product review: Haguro Method (MetaStock add-on) by Technical Analysis, Inc.
METASTOCK
90 South 400 West, Suite 620, Salt Lake City, UT 84101
Phone: Sales 800 508 9180, support 801 265 9998
Email: sales@metastock.com, support@metastock.com
Product: MetaStock add-on based on the Haguro method
System requirements: Windows 7 and above, 2.4GHz or higher, 4GB RAM, 1.6GB disk space
Price: Free
The Haguro method of chart analysis was written about by Seiki Shimizu in his book The Japanese Chart Of Charts, and we published an article on the method by Gary Burton in the April 2015 issue of Technical Analysis of STOCKS & COMMODITIES. The method has now been adapted as a Meta Stock add-on, which is available to MetaStock users at no additional cost. You can download the add-on from www.metastock.com/haguro. Burton, director of the Australian School of Technical Analysis, had translated Shimizu’s work, and Jeff Gibby, Business Development Manager for MetaStock, saw a presentation by Burton on the method while attending a conference in Australia. Since Gibby manages the development of new software for MetaStock and also trades the market himself, Gibby is well-qualified to evaluate new methods and strategies. What he saw in the Haguro method was unique, he thought, and could be a potentially profit-able method to use..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-42-44-product-review-haguro-method-metastock-add-on-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-42-44-product-review-haguro-method-metastock-add-on-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-42-44-product-review-haguro-method-metastock-add-on-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334prre4,d,"{""minimum-quantity"":""1"",""path"":""ch5m2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:05 (46–48): Product review: MetaStock XIV by Technical Analysis, Inc."",""caption-linebreaks"":""Product review: MetaStock XIV by Technical Analysis, Inc.
METASTOCK
90 South 400 West, Suite 620, Salt Lake City, UT 84101
Phone: sales 800 508 9180Email: sales@MetaStock.com, support@MetaStock.com
Product: Trading platform
System requirements: Windows 7 and above, 4GB RAM, 1.6GB disk space; see website for specifics
Price: Daily charts, $499; real-time, $1,395
MetaStock has had a devoted following since its early days and continues to have one. It’s a terrific product that has only gotten better. In this version, navigation is more robust, the Forecaster tool has been enhanced, and there’s a new trading system that’s part of version 14, just to name a few of the changes. We’ll start by looking at the power console..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-46-48-product-review-metastock-xiv-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-46-48-product-review-metastock-xiv-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-46-48-product-review-metastock-xiv-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov335trti2,d,"{""minimum-quantity"":""1"",""path"":""ch5m2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:05 (50–55): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Giorgos Siligardos' article in this issue, “Filtering Price Movement.” Here, we present the May 2015 Traders’ Tips code with possible implementations in various software.
Code for MetaStock is already provided by Siligardos in his article, which S&C subscribers will find in the Subscriber Area of our website:
• Traders.com -> Home–S&C Magazine -> S&C Article Code
The code for the Traders’ Tips section is posted here:
• Traders.com -> Home–S&C Magazine -> Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-50-55-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-50-55-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-50-55-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov335bofo2,d,"{""minimum-quantity"":""1"",""path"":""ch5m2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:05 (58): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
21st Century Point And Figure
Beat The Crowd: How You Can Out-Invest The Herd By Thinking Differently
Trading As A Business: The Methods And Rules I've Used To Beat The Markets For 40 Years
A Trader’s Guide To Financial Astrology: Forecasting Market Cycles Using Planetary And Lunar Movements
Fundamentals Of Actuarial Mathematics, 3rd ed."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-58-books-for-traders-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-58-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-58-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov336gasp,d,"{""minimum-quantity"":""1"",""path"":""ch5m2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:05 (60–62): Gambling, Speculating, & Investing by Stella Osoba, CMT"",""caption-linebreaks"":""Gambling, Speculating, & Investing by Stella Osoba, CMT
Place Your Bets
What do these terms mean as applied to the participant in the financial markets? Let’s have a look to try to come up with some clear definitions.
Bernard Baruch, the famed American financier and investor, often repeated the following quotation, which he attributed to Sir Ernest Cassel, good friend and banker to King Edward V11:
\""When as a young and unknown man I started to be successful I was referred to as a gambler. My operations increased in scope and volume. Then I was known as a speculator. The sphere of my activities continued to expand and presently I was known as a banker. Actually I had been doing the same thing all the time.\""
Much the same could be said today for gambling, speculating, and investing..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-60-62-gambling-speculating-investing-by-stella-osoba-cmt-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-60-62-gambling-speculating-investing-by-stella-osoba-cmt-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-60-62-gambling-speculating-investing-by-stella-osoba-cmt-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov337leto,d,"{""minimum-quantity"":""1"",""path"":""ch5m2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:05 (7): Letters to S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters to S&C by Technical Analysis, Inc.
CANDLESTICKS, CONDENSED
Editor,
I just read Dave Cline’s February 2015 article in STOCKS & COMMODITIES, “Candlesticks, Condensed,” and found it quite interesting. I had never thought of using the approach he describes. It’s a nice way to create pattern signatures. I took a course through Coursera on quantitative analysis by Tucker Balch and used Python during the course. One of the exercises was to analyze historical events based on price movements. Adding a candlestick signature could be used as an extension to this.
I have also done some basic simulations of crossing EMAs in Excel. When I went to download the Python code associated with Cline’s article from Traders.com, I read that Cline had also done some work in Excel and wondered if he is willing to share a version of the Excel file referred to there.
–MORLEY
Author Dave Cline replies:
I can provide the Excel spreadsheet, although it’s not much, really. I can also provide the Access.MDB file into which I dumped the Excel data for grouping/consolidation. You can get these files from the following link..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-7-letters-to-s-c-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-7-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-7-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov338scca,d,"{""minimum-quantity"":""1"",""path"":""ch5m2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:05 (8–10): Schrödinger’s Cat by John F. Ehlers"",""caption-linebreaks"":""Schrödinger’s Cat by John F. Ehlers
Random With Memory
What information is contained in market data? Can you develop an indicator or trading system that can extract this information to provide an edge in trading? Here’s a look.
The purpose of technical analysis is to discern what information is contained in market data and, if you are clever enough, to develop an indicator or trading system that extracts this information to provide an edge in trading. On the other hand, there are those who believe in the efficient market hypothesis: that all the information about the markets is known and the effects are purely random due to the law of large numbers of traders. The discussion goes downhill from there.
One of my favorite theoretical descriptions of market activity is the drunkard’s walk. When the random variable is position, the partial differential equation solution is called the diffusion equation, and it describes random motion like a particle of smoke in a smoke plume. When the random variable is momentum, then the partial differential equation solution is called the wave equation. Taken together, the drunkard’s walk describes physical phenomena like the meandering of a river, which can be random (trending) or cyclical. Unfortunately..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-8-10-schr-dinger-s-cat-by-john-f-ehlers-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-8-10-schr-dinger-s-cat-by-john-f-ehlers-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-05-8-10-schr-dinger-s-cat-by-john-f-ehlers-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov331unca,d,"{""minimum-quantity"":""1"",""path"":""ch6j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:06 (10–18): Understanding Causes Of Market Movements by Melvin E. Dickover"",""caption-linebreaks"":""Understanding Causes Of Market Movements by Melvin E. Dickover
It’s All In The Mind
An evidence-based model argues that the price movement of a chart is fully explained by cycles, support & resistance, and news-driven price impulses. We can use a cognitive psychology–based hypothesis to explain why and how cycles arise.
Traders would like to have a credible explanation of why the market moves the way it does. You have unsatisfying descriptions such as fear & greed or the battle of bulls & bears that give you no hint of what to do or how to trade. Explanations like profit-taking simply tell us after the fact that prices went down because people sold. I believe that these ways of thinking about the market hinder rather than help us. They explain everything but help you understand or predict nothing in particular. What is needed is an evidence-based model that explains market phenomena.
THE MODEL
In this article I propose an evidence-based model that explains the causes of market price movement from a technical analyst’s perspective. This model, which I refer to as Mel’s Model of Market Movement, hereafter abbreviated as M²M², is designed to answer questions about why the market moves as it does; what edges are inherent in its very nature; and to provide insights that traders can use to see what is happening in the market clearly enough to trade successfully."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-10-18-understanding-causes-of-market-movements-by-melvin-e-dickover-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-10-18-understanding-causes-of-market-movements-by-melvin-e-dickover-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-10-18-understanding-causes-of-market-movements-by-melvin-e-dickover-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov332rsip,d,"{""minimum-quantity"":""1"",""path"":""ch6j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:06 (20–23): The RSI & Price Trends by Kevin Luo"",""caption-linebreaks"":""The RSI & Price Trends by Kevin Luo
Tweak It, Test It
The relative strength index (RSI) is well known among technical analysts. As with all indicators, it tends to work better on some stocks or at certain times. Can it be modified to give better results? We’ll find out.
The relative strength index (RSI) is a popular technical indicator designed to measure the rate of change in price movements. All RSI values fall between zero and 100. One of the common interpretations of RSI is that the stock is oversold when the RSI falls below 30 and overbought when the RSI rises above 70. The initial impression of its application is that you buy when the stock is oversold and sell when the stock is overbought, or go short when the stock is overbought and cover when it is oversold.
HOW WELL DOES IT WORK?
To find out how well it works, I conducted a large-scale backtest on 1,816 random stocks traded on the NYSE and NASDAQ. The test data covered a 10-year period from January 1, 2005 to August 31, 2014. Given the scale of the backtest, the output is considered sufficient, precise, and reliable enough to achieve significant conclusions about the application of the RSI strategy. I applied a custom-built automated system—I’ll refer to it as the software—to run the performance tests."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-20-23-the-rsi-price-trends-by-kevin-luo-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-20-23-the-rsi-price-trends-by-kevin-luo-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-20-23-the-rsi-price-trends-by-kevin-luo-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov332sipo,d,"{""minimum-quantity"":""1"",""path"":""ch6j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:06 (24–27): A Simple Positive Expectancy Strategy by Azeez Mustapha"",""caption-linebreaks"":""A Simple Positive Expectancy Strategy by Azeez Mustapha
Bid For Better Results
Do you want your trading results to improve? Incorporating positive expectancy into your trading strategy may just be the ticket.
Capitalizing on effective supply & demand zones is one way traders can play the markets victoriously. Incorporating positive expectancy into a trading strategy that capitalizes on supply & demand zones adds even more value. In this article I’ll explain a simple and effective way of doing this.
THE SPECULATION METHOD
When price breaches a demand zone to the downside, that demand zone becomes a supply zone. The new supply zone will be an area of resistance to any future rallies since downward movement is now favored. When price breaches a supply zone to the upside, that supply zone becomes a demand zone. The new demand zone would try to resist any ensuing pullback since it favors upward movement.
Pinpointing supply & demand zones would help you notice the price areas where the bulls & bears may push prices up or down. The more challenge a demand or supply zone gives a price (as is seen when the price retests it), the more significant the bias will be when the zone is breached to the upside or downside."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-24-27-a-simple-positive-expectancy-strategy-by-azeez-mustapha-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-24-27-a-simple-positive-expectancy-strategy-by-azeez-mustapha-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-24-27-a-simple-positive-expectancy-strategy-by-azeez-mustapha-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov332slvo,d,"{""minimum-quantity"":""1"",""path"":""ch6j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:06 (28–31): The Slow Volume Strength Index by Vitali Apirine"",""caption-linebreaks"":""The Slow Volume Strength Index by Vitali Apirine
Unleashing Momentum
Here’s a momentum volume oscillator that’s similar to the relative strength index (RSI), but there’s a difference. Let’s take a look at how this indicator works.
The slow volume strength index (SVSI) is a momentum volume oscillator that measures the change in buying and selling pressure relative to a price exponential moving average (EMA). I use J. Welles Wilder’s relative strength index (RSI) formula to calculate the SVSI. Similar to the RSI, the SVSI oscillates between zero and 100. SVSI is considered overbought when above 80 and oversold when below 20. The SVSI can also generate signals by looking for divergences and centerline crossovers. SVSI can be used to confirm the slow relative strength index (SRSI) on the same graph. I discussed the SRSI in my article “The Slow Relative Strength Index,” which appeared in the April 2015 issue of Technical Analysis of STOCKS & COMMODITIES.
CALCULATION
To calculate the SVSI, I use the following formula:
SVSI = 100 – [100/(1 + SVS)]
SVS = Average positive volume/Average negative volume"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-28-31-the-slow-volume-strength-index-by-vitali-apirine-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-28-31-the-slow-volume-strength-index-by-vitali-apirine-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-28-31-the-slow-volume-strength-index-by-vitali-apirine-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33335vo,d,"{""minimum-quantity"":""1"",""path"":""ch6j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:06 (32–33, 35): Volume Analysis With The SPY by Domenico D’Errico"",""caption-linebreaks"":""Volume Analysis With The SPY by Domenico D’Errico
I Spy With My Little Charts…
When something is trading at or close to its all-time highs, you need to know whether to sell it or continue holding it. Viewing the markets in terms of supply & demand areas is one way to do it.
Volume analysis is a form of technical analysis that attempts to look at price action and how it relates to volume. It is similar to Market Profile in that it identifies the price level at which sup-ply & demand are in equilibrium and where it is in imbalance. In this article, I will use the concept of volume analysis to identify relevant supply & demand areas on a chart and use them as my entry or exit points.
As you can see in Figure 1, there are three different types of volume area. These are based on volume traded. In addition, the shape of the point of control (POC) can provide traders with additional information (Figure 2)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-32-33-35-volume-analysis-with-the-spy-by-domenico-d-errico-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-32-33-35-volume-analysis-with-the-spy-by-domenico-d-errico-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-32-33-35-volume-analysis-with-the-spy-by-domenico-d-errico-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov333qaby,d,"{""minimum-quantity"":""1"",""path"":""ch6j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:06 (34–35): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
AUTOMATIC RESPONSE
I’ve been trading for a few years and have stayed profitable. I prefer to trade manually instead of using automated programs. I fear some sort of runaway similar to the one exhibited on the flash crash day of a few years ago. However, I would like to have a little more speed in reacting to market setups. Do you have traders who use any sort of automatic response order entry?—JRB
Thanks for the interesting question. I think I can offer some suggestions. Not knowing exactly what your triggers are for entry, I will just describe some generic examples.
Excel spreadsheets: We use the RediPlus add-in for our Excel spreadsheets using DDE links (an incoming stream of real-time market data, prices, and so on) to various cells. Last price, previous price, high for the day, low for the day, volume, volume-weighted average price (VWAP), and other pertinent data..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-34-35-q-a-by-don-bright-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-34-35-q-a-by-don-bright-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-34-35-q-a-by-don-bright-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33338in1,d,"{""minimum-quantity"":""1"",""path"":""ch6j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:06 (36, 38–41): Interview: Trading Confidently With Todd Gordon by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Trading Confidently With Todd Gordon by Jayanthi Gopalakrishnan
Todd Gordon is the founder of TradingAnalysis.com, which provides actionable market analysis and trading strategies in the currency, commodity, and equity markets for amateur and professional traders. In 2001, Gordon began his career trading the equities market in San Diego, CA, and then with Connors Capital, a hedge fund based in Los Angeles. Most recently, Gordon served as a managing partner for two and a half years at a trading and research company specializing in the foreign exchange markets. Prior to that, he served as the senior technical strategist at FOREX.com for six years while simultaneously trading at GAIN Capital Asset Management, its parent company.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Todd Gordon on April 14, 2015 about what it takes to become a confident trader.
Todd, how did you get interested in technical analysis and trading?
In college, I picked up a copy of Alexander Elder’s book Trading For A Living. I was an economics major in college, and I was more interested in trading the markets than going to economics class. So I would trade from my dorm room in my small e*Trade account with a couple thousand dollars. In college, you don’t have a lot of money."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-36-38-41-interview-trading-confidently-with-todd-gordon-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-36-38-41-interview-trading-confidently-with-todd-gordon-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-36-38-41-interview-trading-confidently-with-todd-gordon-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334prre5,d,"{""minimum-quantity"":""1"",""path"":""ch6j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:06 (42–45): Product Review: HGSI Investment Software by Leslie N. Masonson"",""caption-linebreaks"":""Product Review: HGSI Investment Software by Leslie N. Masonson
HGSI INVESTMENT SOFTWARE, LLC
110 Saybrook Harbor, Bradfordwoods, PA 15015-1318
Phone: 253 863-2389
Email: hgs@highgrowthstock.com
Internet: www.highgrowthstock.com
Product: Visual analytical software for evaluating 10,234 US securities and 178 industry groups (Bloomberg industry grouping), 1,577 ETFs/ETNs, and 580 closed-end funds
Data updates: Intraday 15-minute delayed and end-of-day
System requirements: Windows 7 or higher, Internet browser, multicore Intel i5 or greater at 3 GHz or faster, 12 GB or more, 3 GB free space or more
Price: $59/month or $599/annually; free 30-day trial. Pricing includes data and program updates.
I originally reviewed HGSI Investment software for this magazine in 2008. The software was specifically designed for self-directed investors/traders and professionals to evaluate indexes, sectors, industry groups, stocks, exchange traded funds (ETFs) and exchange traded notes (ETNs) for the highest-probability profit opportunities. Since then, it has also been used by investment managers as an economical alternative to much more expensive products."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-42-45-product-review-hgsi-investment-software-by-leslie-n-masonson-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-42-45-product-review-hgsi-investment-software-by-leslie-n-masonson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-42-45-product-review-hgsi-investment-software-by-leslie-n-masonson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334exyo1,d,"{""minimum-quantity"":""1"",""path"":""ch6j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:06 (46–47): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
GETTING IN ON THE NEXT CHIPOTLE?
Is there a reason you chose not to get in on the Chipotle Mexican Grill (CMG) IPO after it went public, seeing now that the stock is up 20-fold in the last nine years?
I have two reasons for that. The first is that I typically don’t buy stocks outright, and the second is that I don’t buy new “David” companies trying to occupy “Goliath” territory. That’s exactly what Chipotle did, and with great fashion (Figure 1)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-46-47-explore-your-options-by-tom-gentile-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-46-47-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-46-47-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334buwe,d,"{""minimum-quantity"":""1"",""path"":""ch6j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:06 (48–49): Bullish Weekly Trend Reversal Signal by Donald W. Pendergast"",""caption-linebreaks"":""Bullish Weekly Trend Reversal Signal by Donald W. Pendergast
Rhythm & Bulls
Here’s an example of how the price performance can give an advance indication that a bullish reversal was overdue.
After making a major multicycle high in May 2013 at $48.48, shares of Mattel Inc. (MAT) embarked on a 23-month long decline, finally bottoming at $22.32 on April 2, 2015. Savvy technicians who understand key market dynamics such as price cycles, money flow, and support/resistance levels (S/R) saw many bullish reversal dynamics lining up in the weeks before Mattel’s latest earnings release. I’ll look at each of them.
THE SIGNS
When a big brand-name stock like MAT has seen nearly two years of steady selling, sharp technicians (and value investors) will start to look for the telltale signs of a possible reversal, and MAT provided such chart readers with lots of exciting reversal dynamics to evaluate..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-48-49-bullish-weekly-trend-reversal-signal-by-donald-w-pendergast-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-48-49-bullish-weekly-trend-reversal-signal-by-donald-w-pendergast-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-48-49-bullish-weekly-trend-reversal-signal-by-donald-w-pendergast-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov335fufo,d,"{""minimum-quantity"":""1"",""path"":""ch6j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:06 (50): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
CROPS AND OPTIONS
What are “short-dated new crop options”?
Prior to a few years ago, grain traders wishing to speculate on the new crop price of corn, soybeans, or wheat through options were required to purchase or sell options with expiration dates in the distant future. As a result of the excessive time value built into the option prices, short-term hedges or speculations on new crop prices were often high-risk and expensive ventures. In response to the noted struggle, the CME Group launched a line of short-dated new crop options (SDNC)."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-50-futures-for-you-by-carley-garner-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-50-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-50-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov335trti3,d,"{""minimum-quantity"":""1"",""path"":""ch6j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:06 (51–55): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Kevin Luo’s article in this issue, “The RSI & Price Trends.” Here, we present the June 2015 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com -> Home–S&C Magazine -> Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-51-55-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-51-55-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-51-55-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov335bofo3,d,"{""minimum-quantity"":""1"",""path"":""ch6j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:06 (58): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
Invest With The Fed: Maximizing Portfolio Performance By Following Federal Reserve Policy
The Complete Guide To Mergers And Acquisitions: Process Tools To Support M&A Integration At Every Level, 3rd ed.
Buffett And Beyond: Uncovering The Secret Ratio For Superior Stock Selection, 2d ed.
Uninvested: How Wall Street Hijacks Your Money And How To Fight Back"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-58-books-for-traders-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-58-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-58-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov336trod,d,"{""minimum-quantity"":""1"",""path"":""ch6j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:06 (60–62): A True Odyssey by Robert Cocchiola"",""caption-linebreaks"":""A True Odyssey by Robert Cocchiola
Slaying The Dragon
Here is a tale of one trader’s quest for knowledge about the oil market as he sought to ride with the bulls and reap the profits.
Most of us are familiar with the legendary ancient Greek hero Odysseus and his famous adventure described in Homer’s epic poem “Odyssey.” Another mythological ancient Greek hero by the name of Jason had a quest of his own. It seems that Jason was damaged by powerful forces and had to redeem himself by searching for the “golden fleece.” This was no small feat, as the golden fleece was defended by bulls with hooves of brass and breath of fire. It was also guarded by a never-sleeping dragon.
THE SEARCH FOR THE GOLDEN FLEECE
You’re probably wondering what ancient Greek tragedies have to do with trading. Have you seen the oil futures market? I daytraded it when I was not yet wise to the ways of trading, and it fleeced me of my gold! And that stuff about bulls with brass hooves and a dragon—well, in a sense, it’s all true. I was a victim of a tragedy just like Jason was. The market took my money and kept it away from me with monsters so I couldn’t get it back."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-60-62-a-true-odyssey-by-robert-cocchiola-25.gif"",""height"":""774"",""width"":""585""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-60-62-a-true-odyssey-by-robert-cocchiola-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-60-62-a-true-odyssey-by-robert-cocchiola-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov338leto2,d,"{""minimum-quantity"":""1"",""path"":""ch6j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:06 (8–9): Letters to S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters to S&C by Technical Analysis, Inc.
CODE FOR SLOW RELATIVE STRENGTH INDEX?
Editor,
Thank you for Vitali Apirine’s article in the April 2015 issue (“The Slow Relative Strength Index”) and for his great idea. I trade the S&P emini using MultiCharts and hope that the author can provide the code for his idea in Easy-Language for the slow RSI.
John Bond
Author Vitali Apirine replies:
Thank you for your letter. Unfortunately, I am not currently working in Multi-Charts. I am working in MetaStock and writing MetaStock code (see code listing below). I hope it is close enough to the language that MultiCharts can read to be useful to you."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-8-9-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-8-9-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-06-8-9-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov331trwi,d,"{""minimum-quantity"":""1"",""path"":""ch7j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:07 (12–17): Trading With Price–Action Pivots by Ken Calhoun"",""caption-linebreaks"":""Trading With Price–Action Pivots by Ken Calhoun
A Turn For The Better
Pivot points have long been used by traders to identify entry & exit signals. Here’s an effective technique that integrates classic candlestick pivot patterns with other indicators.
Trading pivots successfully is best achieved by using a combination of price–action and classic candlestick reversal signals. Traders often lose money trying to enter pivots by incorrectly relying on simplistic single indicators (like pivot points or simple MACD crossovers), which often lead to uncertain, choppy entries. Trying to “catch a falling knife” or entering weak bounces based on a single indicator can be frustrating, causing expensive stop-losses.
COMBINING INDICATORS
Professional traders identify and trade strong pivot entries by combining two (or more) technical confirmation signals, which together provide a better technical trading approach. Less-experienced traders tend to overtrade choppy charts, entering too soon. Veteran traders carefully choose to trade pivots on the widest trading range charts with exceptionally strong volatility, with multi-signal confirmation, making for more cautious, selective trade entries.
Commonly used signals include increasing volume, candlestick hammers or engulfing patterns, bullish cups, and moving average (MA) pivots. I’ll show you examples of how to easily spot combinations of two or more of these pivot signals for intraday and swing trading chart-pattern entries."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-12-17-trading-with-price-action-pivots-by-ken-calhoun-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-12-17-trading-with-price-action-pivots-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-12-17-trading-with-price-action-pivots-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov331whis1,d,"{""minimum-quantity"":""1"",""path"":""ch7j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:07 (18–21): What Is Trading? by Sunny J. Harris"",""caption-linebreaks"":""What Is Trading? by Sunny J. Harris
Follow The Yellow Dots
The idea of making money from the stock market is what attracts us to the markets. But what does it really take? Here’s a realistic look.
What is the difference between trading and investing? Why would someone want to trade instead of taking a position and holding it for a long time? What is buy & hold? These are questions we ask as we progress in life far enough to have funds to speculate with.
INVESTING
Most of the speculative populace is interested in investing. It is generally believed that buy & hold makes the most sense, year after year, since the stock market supposedly returns about 9% per year over the long term, and that few traders ever do better than this. It is a rare breed that chooses to try trading."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-18-21-what-is-trading-by-sunny-j-harris-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-18-21-what-is-trading-by-sunny-j-harris-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-18-21-what-is-trading-by-sunny-j-harris-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov332newn,d,"{""minimum-quantity"":""1"",""path"":""ch7j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:07 (22–25): The New Normal & How To Profit From It by Ryan Henry"",""caption-linebreaks"":""The New Normal & How To Profit From It by Ryan Henry
Not The Usual Party
Is there such a thing as a “normal” market environment anymore? From the looks of it, probably not, but that may not be a bad thing. There are still opportunities to make a lot of money. We’ll explore them here.
I don’t know if there is such a thing as a normal market environment anymore. I’ve been trading for over 20 years now. Looking back over that time period, it’s hard to find a point when things fit into the category of normal. In the late 1990s, the market was in hyperdrive. Call me crazy, but when a major market index like the NASDAQ doubles over the course of a year, I wouldn’t call it normal market behavior. In the early 2000s, the blue-chip indexes were lopped in half in less than three years; the bleeding on the NASDAQ didn’t stop until it was about a quarter of its bull market high. Again, that’s not normal."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-22-25-the-new-normal-how-to-profit-from-it-by-ryan-henry-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-22-25-the-new-normal-how-to-profit-from-it-by-ryan-henry-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-22-25-the-new-normal-how-to-profit-from-it-by-ryan-henry-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov332secl,d,"{""minimum-quantity"":""1"",""path"":""ch7j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:07 (26–34): Seeing Clearly by Melvin E. Dickover"",""caption-linebreaks"":""Seeing Clearly by Melvin E. Dickover
See-Through Charts
Price charts contain both visible and invisible pieces of information. Today’s technological tools shed light on all the useful clues that charts contain. Find out how they help reveal the cyclic components in price data.
In my June 2015 article, “Understanding Causes Of Market Movements,” I presented a model of market movement (M²M²) that argued that the essential things that we see in a chart such as the support & resistance skeleton and the cyclic moving parts are not visible to the eye. In this article, I’ll show you how the cyclic moving parts can be clearly observed using indicator technology now available. I’ll then use M²M² to explore the consequences of pattern recognition and to shed light on common trading setups and practices. You will learn that a different approach to indicators is needed, that pattern recognition changes dramatically, and that a market technician should focus on something different from what he is accustomed to.
This is your guide to looking inside the black box of a price chart and clearly seeing what lies within."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-26-34-seeing-clearly-by-melvin-e-dickover-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-26-34-seeing-clearly-by-melvin-e-dickover-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-26-34-seeing-clearly-by-melvin-e-dickover-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33341qa,d,"{""minimum-quantity"":""1"",""path"":""ch7j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:07 (35, 41): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
MAKING SENSE OF THE PROGNOSTICATIONS, REVISITED
Okay readers, it’s time for a follow-up to the mental exercise I wrote about for my March 2015 column (which I had composed in January 2015) on the topic of market forecasting.
If you recall from my March 2015 column, I addressed some questions regarding the many sources of stock market predictions. We saw the wide disparity in predictions that various pundits, websites, and other experts were issuing. I will repeat those various predictions here so we can take a look at where we stand, as I write this in mid-May 2015, in relation to those forecasts. Finally, after reviewing these various short-term outcomes, I will offer a few new suggestions, and reiterate some previous advice."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-35-41-q-a-by-don-bright-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-35-41-q-a-by-don-bright-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-35-41-q-a-by-don-bright-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33338in2,d,"{""minimum-quantity"":""1"",""path"":""ch7j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:07 (36, 38–41): Interview: Know The Market With Hubert Senters by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Know The Market With Hubert Senters by Jayanthi Gopalakrishnan
Hubert Senters is a professional daytrader and entrepreneur. He is founder of HubertSenters.com and is CEO of Never Quit Media. His philosophy is that, “If you want to achieve something in life, find someone who is good at what you want to do and learn everything they know about it.” That very philosophy has made Hubert Senters a successful daytrader today. Senters is a firm believer that you need to have your own style and method of trading that works for you.
Senters’ goals are to achieve a comfortable lifestyle, put money away for the future, and have time to enjoy life, family, and friends. When he’s not trading, he takes photos of his three kids playing sports, upgrades his trading hardware, and searches the Internet for the latest trading software and trading technologies.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Hubert Senters on April 17, 2015 about his journey leading up to his trading career and how he became a successful trader."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-36-38-41-interview-know-the-market-with-hubert-senters-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-36-38-41-interview-know-the-market-with-hubert-senters-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-36-38-41-interview-know-the-market-with-hubert-senters-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334prre6,d,"{""minimum-quantity"":""1"",""path"":""ch7j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:07 (42–45): Product Review: JBL Risk Manager 9.0 by Barbara Star, PhD"",""caption-linebreaks"":""Product Review: JBL Risk Manager 9.0 by Barbara Star, PhD
JBL RISK MANAGER
Malvern, Victoria 3144 Australia
Website: www.jblriskmanager.com
Phone: +61 3 9013 4123, Mobile: +61 4 0938 7317
Skype: barrington-lew
Product: Money, risk, & trade management software
Price: Free 14-day fully functional trial period; one-time cost AUD$299 with free upgrades for the first 12 months.
The best way to avoid blowing out your trading account is to develop a consistent method of maintaining control over your trading losses. Many traders think that using stop-losses alone will do the trick, but that’s only one part of the equation. Successful equity protection involves account management, position sizing, and sector balance as well as good exit strategies. Program developer Joseph Barrington-Lew (JBL) created the JBL Risk Manager software to incorporate all of those factors, and more, in an easy-to-use format."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-42-45-product-review-jbl-risk-manager-9-0-by-barbara-star-phd-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-42-45-product-review-jbl-risk-manager-9-0-by-barbara-star-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-42-45-product-review-jbl-risk-manager-9-0-by-barbara-star-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334exyo2,d,"{""minimum-quantity"":""1"",""path"":""ch7j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:07 (46–47): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
DO YOU SMELL THAT?
When I first started taking the bus from Newark, NJ into Lower Manhattan on weekday mornings, the best thing to do was put on a set of Sony Walkman headphones to clear my head for the trading day to come. For me, clearing my head consisted of listening to grunge music, most notably, the Stone Temple Pilots, Oasis, and Nirvana. When I sat down to write this month’s column, the title I had penned brought me back to those bus rides and listening to Nirvana’s well-known song “Smells Like Teen Spirit.” But what I am discussing today isn’t the smell of Teen Spirit; it’s the smell of natural gas, and more important, the opportunities surrounding this ever-increasing resource that’s located right here in the good old USA."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-46-47-explore-your-options-by-tom-gentile-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-46-47-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-46-47-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334fufo1,d,"{""minimum-quantity"":""1"",""path"":""ch7j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:07 (48): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
USING LEVERAGE
Is there more leverage available in currency futures trading or forex trading?
For those who aren’t aware, there are at least two completely separate venues for currency speculation: exchange traded currency futures, and off-exchange forex. Equity market ETFs come in a distant third when it comes to popularity and efficiency. There are certain advantages and disadvantages to each arena. In fact, I’ve touched on that topic in a previous issue, but when it comes to leverage and margin, there isn’t a clear-cut winner.
Let me first start by saying that more leverage, which is equivalent to a lower margin requirement, isn’t necessarily preferable. In fact, higher leverage is a sure-fire way to decrease the odds of trading success. This is why it is important to be educated on the margin requirements in each venue. I’ll give an overview of each."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-48-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-48-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-48-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov335bofo4,d,"{""minimum-quantity"":""1"",""path"":""ch7j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:07 (58): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
Get Rich With Dividends: A Proven System For Earning Double-Digit Returns, 2d ed.
Profiting From Weekly Options: How To Earn Consistent Income Trading Weekly Option Serials
Impact Investment: A Practical Guide To Investment Process And Social Impact Analysis
Risk Management And Financial Institutions, 4th ed.
Enough Bull: How To Retire Well Without The Stock Market, Mutual Funds, Or Even An Investment Advisor, 2d ed."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-58-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-58-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-58-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov336malo,d,"{""minimum-quantity"":""1"",""path"":""ch7j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:07 (60–62): Manage Losses Effectively by Dariusz Swierk & Szymon Sypniowski"",""caption-linebreaks"":""Manage Losses Effectively by Dariusz Swierk & Szymon Sypniowski
Finding Equilibrium
How do the best traders cope with losses, what methods do they use, and how do they survive the inevitable losses without negative side effects? We’ll take a look.
“I had a series of severe losses and to this day I cannot pull myself together.” With these words, an investor described the difficult period he was going through. Life events had been causing him more stress than usual and then on top of that, he experienced a series of losses in his trading. As a result, he was unable to return to the market. He would sit at the computer, watch clear signals appear on his monitor, and yet be unable to open a trade.
During a subsequent conversation, he took out a thick binder full of color printouts of the market. He said, “Had I entered a trade today, I would have earned a lot. I am analyzing the last few weeks to see how much more I would have gained in the account. My wife laughs at me and says that I am a ‘demo investor.’ She has already accepted that I sit in front of the monitor for hours and do not trade.”"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-60-62-manage-losses-effectively-by-dariusz-swierk-szymon-sypniowski-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-60-62-manage-losses-effectively-by-dariusz-swierk-szymon-sypniowski-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-60-62-manage-losses-effectively-by-dariusz-swierk-szymon-sypniowski-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov337leto1,d,"{""minimum-quantity"":""1"",""path"":""ch7j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:07 (7): Letters to S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters to S&C by Technical Analysis, Inc.
SQUARES & WAVES
Editor,
I am a successful and avid futures trader of the US market indexes and have used R.N. Elliott’s and Fibonacci teachings for over 15 years in my trading. More than as a way to make profits, I am a student of price change, and Pauline Novak-Reich’s article in the Bonus Issue of S&C (“Squares & Waves”) interested me greatly in the time and vibration characteristics. I have made many efforts to study time by Fibonacci and cycle methods and have been only moderately successful in that work. I devoured Bryce Gilmore’s S&C article many years ago to get started (“Wave Market Analysis,” parts 1 & 2, February and March 1988), and Novak-Reich’s research on the square of nine is on my list for this year.
I would be very happy to receive the Excel file of the square of nine mentioned at the end of the article if possible and also to get information on when her book Odyssey Of Sacred Knowledge will be available. I have already purchased Nature’s Black Box.
Robert Berish"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-7-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-7-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-7-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov338laof,d,"{""minimum-quantity"":""1"",""path"":""ch7j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:07 (8–10): The Laws Of Momentum by Dirk Vandycke"",""caption-linebreaks"":""The Laws Of Momentum by Dirk Vandycke
Magic Of Gravity
In the financial markets, there are underlying forces investors and traders need to know about and handle with respect. This is the start of an article series that will aim to line up the underlying forces that drive the markets and link them with what is visible on the charts.
Before I get started, I want to bring to your attention that in this series of articles, I will be discussing the cash and equity markets characterized by a relatively stable free float (that is, the number of existing shares in a market available for transactions) and semi zero-sum effects (semi, because of trading costs). I won’t consider option and futures markets here, since the number of contracts or open interest, as it is often called, is far from steady, and time plays a bigger part.
Here in part 1 of this series, I’ll focus on price gravitation. It’s one of the most important drivers of market dynamics, and this force accounts for asymmetric volatility, market cycles, and lots more. Another major force in equity markets is a capacitive force on emotions, which links stock price movement to emotions."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-8-10-the-laws-of-momentum-by-dirk-vandycke-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-8-10-the-laws-of-momentum-by-dirk-vandycke-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-07-8-10-the-laws-of-momentum-by-dirk-vandycke-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov331poof,d,"{""minimum-quantity"":""1"",""path"":""ch8a2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:08 (12–18): The Power Of Fusion Trading by Josh DiPietro"",""caption-linebreaks"":""The Power Of Fusion Trading by Josh DiPietro
Applying a trading system can be simple or complex but you have to start somewhere. Here’s how one trader combines elements of different types of trading styles to create a trading strategy that outperforms his previous trading strategies.
I came up with a new trading methodology, which I will introduce in this article. I refer to it as fusion trading—a term I came up with—for quick reference. I use it all the time but you won’t find it listed on Wikipedia—not yet, anyway. Neither will you hear the word fusion on Wall Street, unless you bump into one of my graduates. Though the term is something I came up with, the framework of my system is not new. The fusion method is implemented by most professional daytraders, especially countertrend traders, like me. It provides traders on Wall Street with the legendary calibre they’re known for. The more you get acquainted with this system, the more you’re going to realize that the same key price levels I trade are traded in high volume on Wall Street. I’m just a mouse riding the coattails on the Street, because I’ve found a way to capitalize on the breadcrumbs they leave behind. My fusion system reveals how to capture profits after huge Wall Street price movements and with a high degree of consistency. After all, consistency is the keystone of Wall Street."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-12-18-the-power-of-fusion-trading-by-josh-dipietro-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-12-18-the-power-of-fusion-trading-by-josh-dipietro-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-12-18-the-power-of-fusion-trading-by-josh-dipietro-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33133qa,d,"{""minimum-quantity"":""1"",""path"":""ch8a2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:08 (19, 33): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
RULES, RULES, RULES: DO WE NEED TO FOLLOW THEM?
In this month’s column, Rob Friesen, president & COO of Bright Trading, will be filling in for Don Bright.
“If you obey all the rules you miss all the fun.” —Katharine Hepburn
Some traders have that fierce independence and spirited personality that Katharine Hepburn was known for and they carry it into their trading career. Unfortunately, fun has little to do with making money, although the advice to “do what you love and the money will come” is often used to justify hanging in there in trading until you make it.
One of our successful traders told our members at our annual retreat that he had endeavored to make trading the most boring job ever. This methodical, boring approach had translated into making money by placing capital into numerous trades with statistical edges; no emotions, just continually dropping the hammer on trades as his research and trading programs identified them..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-19-33-q-a-by-don-bright-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-19-33-q-a-by-don-bright-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-19-33-q-a-by-don-bright-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov332boma,d,"{""minimum-quantity"":""1"",""path"":""ch8a2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:08 (20–22): Bond Markets & FX Effects by Tyler Yell"",""caption-linebreaks"":""Bond Markets & FX Effects by Tyler Yell
The actions of the central banks have significant effects on the financial markets. In this article, we look at the bond markets to see how they can impact the forex markets.
In an annual letter to shareholders, JPMorgan Chase CEO Jamie Dimon said the bond market and the volatility that is likely to come is a core concern and would have major impacts in forex. The sharp spike in prices and subsequent drop in yields on October 15, 2014 confirmed his fears and should keep you on high alert of this nearly $93 trillion market.
This article will unpack Dimon’s statement and walk you through an overview of the state of the bond market, the effects of quantitative easing (QE) on the bond market, and how bonds affect trading capital flows and therefore forex prices. In addition, I’ll look at common occurrences between QE, bond prices & yields, capital flow, and opportunities from resulting forex moves..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-20-22-bond-markets-fx-effects-by-tyler-yell-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-20-22-bond-markets-fx-effects-by-tyler-yell-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-20-22-bond-markets-fx-effects-by-tyler-yell-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33233fu,d,"{""minimum-quantity"":""1"",""path"":""ch8a2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:08 (23, 33): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
UNCHARTED TERRAIN
Should I be considering managed futures?
Many beginning futures traders who struggle to make money find themselves asking this question. The answer isn’t as simple as yes or no, because not all managed futures programs are created the same. For instance, there can be significant differences in risk & reward profiles among various types of managed futures accounts. Believe it or not, there are some managed programs out there that rarely make money; yet those coming off “hot” years with high double-digit returns are likely trading in a manner that could translate into massive drawdowns the following year. Thus, it is important to do your homework before putting money to work in managed futures to ensure the program you choose fits your personality and portfolio..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-23-33-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-23-33-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-23-33-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33231la,d,"{""minimum-quantity"":""1"",""path"":""ch8a2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:08 (24–25, 31): Laws Of The Vital Few by Dirk Vandycke"",""caption-linebreaks"":""Laws Of The Vital Few by Dirk Vandycke
Last month in part 1, you saw that gravity and emotional\ncapacity are two of the markets’ strong underlying forces.\nHere in this second part, we’ll explore how some hidden power\nlaws can affect the individual trader’s profits and thus why\nyou should be aware of them.
The 80–20 rule, also known as the Pareto principle or\nJuran’s principle, named after Vilfredo Pareto and\nJoseph M. Juran, is commonly heard of in different\nwalks of life. It is also known as the law of the vital few and\ntrivial many. This law states that a large part of the input (the\ntrivial many) only accounts for a small part (the vital few) of\nthe system’s effects (Figure 1). It is common to hear the Pareto\nprinciple pop up in fields such as manufacturing, management,\nand human resources, but I’ll focus on its relevance to\nthe financial markets..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-24-25-31-laws-of-the-vital-few-by-dirk-vandycke-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-24-25-31-laws-of-the-vital-few-by-dirk-vandycke-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-24-25-31-laws-of-the-vital-few-by-dirk-vandycke-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov332juvo,d,"{""minimum-quantity"":""1"",""path"":""ch8a2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:08 (26–31): Judging Volatility by Chris Lindgren"",""caption-linebreaks"":""Judging Volatility by Chris Lindgren
Ignoring implied volatility can be a costly mistake for option traders, which is\nwhy assessing it is critical. Here is a look at some practical methods to measure\nimplied volatility and get a better idea of which way option prices will move.
As an option trader, implied volatility (IV) is important to me. All option-pricing\nmodels use an estimated volatility to value a security’s options.\nImplied volatility, however, is derived from current option prices. It\nis the market’s projection of volatility between now and expiration.\nThe IV tells me the price of an option. Just as a stock trader evaluates price to\ndetermine value, I gauge an option’s price with IV. If IV is too high, the options\nare overpriced; if it’s too low, the options are cheap.\nThe strategy I choose will be determined by my assessment of IV. By itself,\nany given figure for IV is meaningless.\nJust as with stock price, IV needs to be\nevaluated in terms of where it has been\nand where it may be going. Assessing IV\nis critical, whether I am placing a delta\nneutral trade or trading directionally."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-26-31-judging-volatility-by-chris-lindgren-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-26-31-judging-volatility-by-chris-lindgren-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-26-31-judging-volatility-by-chris-lindgren-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov333exyo1,d,"{""minimum-quantity"":""1"",""path"":""ch8a2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:08 (32–33): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
PUTTING AN OPTION LESSON\nTO WORK
Much of what I and the rest of the option\ncommunity like to trade is alternatives\nto buying into stock positions. But every\nonce in a while, opportunities come along\nto take advantage of the downside in a\nstock or the overall market. The question\nthat I frequently get is, “How do I sell a\nstock at a higher price and buy it back at\na lower price?” This is called shorting\na stock, but I believe there is a better\nway that involves lower cost and risk to\nthe bearish trader. It involves buying a\nput option.
The case study I will highlight here is\nthe FDX Mar15 180P—which is shorthand\nfor the FedEx March 2015 $180\nstrike price put option (Figure 1)..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-32-33-explore-your-options-by-tom-gentile-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-32-33-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-32-33-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov333cope,d,"{""minimum-quantity"":""1"",""path"":""ch8a2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:08 (34–38): Combining Persistence With Strength by Norman J. Brown"",""caption-linebreaks"":""Combining Persistence With Strength by Norman J. Brown
Here’s a switching technique that combines a stock’s persistence and ranking strength to offer\nenhanced returns compared to buy & hold investing.
In my article “Parameters Affecting Stock Returns” published in the August 2014 issue\nof Technical Analysis of Stocks & Commodities, I pointed out that buy & hold (BH)\ninvesting in equity stocks have their annualized returns severely suppressed by a debilitating\ntilt of the R ratio (R = win ratio = Roc+ / Roc-) downward, well below R = 1.0 (tilt,\nT<0). My earlier articles described a trading technique termed one rank (OR) that switched a\nsingle mutual fund (or exchange traded fund) and offered an enhanced return over BH. This is\na direct result of trading (switching) only those funds that exhibit a persistence of returns over\nthat of a random distribution, a process explained in those articles.
COMBINING STOCKS
In this article, I will expand OR into more than one stock using a formula that takes advantage\nof the OR process combined with the ability to switch back and forth into the highest-ranked stock, a process designated one rank/relative strength, or OR/RS..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-34-38-combining-persistence-with-strength-by-norman-j-brown-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-34-38-combining-persistence-with-strength-by-norman-j-brown-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-34-38-combining-persistence-with-strength-by-norman-j-brown-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33442in,d,"{""minimum-quantity"":""1"",""path"":""ch8a2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:08 (40, 42–45): Interview: Cooking Up Trades With Adam Grimes by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Cooking Up Trades With Adam Grimes by Jayanthi Gopalakrishnan
Adam Grimes has two decades of experience in the industry as a trader, analyst\nand system developer. Grimes started trading in agricultural commodities\nand futures. He then moved to currency futures, stock index futures, and individual\nstocks. His trading experience covers all major asset classes—futures,\ncurrencies, stocks, options, and other derivatives, and the full range of time\nframes from very short-term scalping to constructing portfolios for multiyear\nholding periods.
\nGrimes holds an MBA from The Ohio State University, and is currently Chief\nInvestment Officer of Waverly Advisors, LLC, a boutique research and advisory\nfirm for which he writes daily market commentary and trade notes. Prior\nto joining Waverly Advisors, Grimes held the positions of VP of Quantitative\nSystem Development at Level Partners, LLC; Senior Analyst and Trader at\nMBF Asset Management on the New York Mercantile Exchange; and Chief\nTechnical Strategist at SMB Capital. Grimes is the author of The Art & Science\nOf Technical Analysis: Market Structure, Price Action & Trading Strategies,\npublished in 2012 by John Wiley & Sons. Grimes is also a contributing author\nfor several publications on quantitative finance and related topics, and is a\nfrequent speaker and lecturer on the topics of technical trading, risk management,\nand system development..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-40-42-45-interview-cooking-up-trades-with-adam-grimes-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-40-42-45-interview-cooking-up-trades-with-adam-grimes-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-40-42-45-interview-cooking-up-trades-with-adam-grimes-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334prre7,d,"{""minimum-quantity"":""1"",""path"":""ch8a2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:08 (46–48): Product Review: RJO Futures by Technical Analysis, Inc."",""caption-linebreaks"":""Product Review: RJO Futures by Technical Analysis, Inc.
RJ O’BRIEN & ASSOCIATES, LLC
222 South Riverside Plaza, 9th Floor, Chicago, IL 60606
Phone: 800 441-1616 or 312 373-5478
Email: info@rjofutures.com Website: https://rjofutures.rjobrien.com
Product/service: Futures brokerage\nwith trading platforms including the\nWebOE and RJO Futures PRO
System requirements: (For trading\nplatform) Windows 8, 7, or Vista;\nIntel Core 2 Duo (2.33 Ghz or better)\nprocessor; 4GB RAM, 6GB DDR3\nSDRAM processor; 200GB hard\ndrive; dual-port graphics adapter with\n128MB of memory; 64MB per port
Price: Individual traders can contact\nthe retail trading desk for trade costs.
R.J. O’Brien (RJO) is a privately\nrun business with a long history\nin the futures market. Founded in\n1914, RJO is majority-owned by the\nO’Brien family of Chicago. Over the\nyears, the O’Briens have been key players\nin the development of the futures\nindustry. RJO is the oldest and largest\nindependent futures brokerage and\nclearing firm in the United States. It is\na futures commission merchant (FCM)\nand a full clearing member of the CME\nGroup (a founding member of the Chicago\nMercantile Exchange) and all its\nmarkets—Intercontinental Exchange\n(ICE); NYSE Liffe US; and the CBOE\nFutures Exchange (CFE)..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-46-48-product-review-rjo-futures-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-46-48-product-review-rjo-futures-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-46-48-product-review-rjo-futures-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334trti2,d,"{""minimum-quantity"":""1"",""path"":""ch8a2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:08 (49–54): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, we focus\non Vitali Apirine’s June 2015 article, “The\nSlow Volume Strength Index,” as a followup\nto last month’s Traders’ Tips, which\nfocused on Vitali Apirine’s April 2015 article,\n“The Slow Relative Strength Index.”\nHere, we present the August 2015 Traders’\nTips code with possible implementations\nin various software.
The code for the following Traders’ Tips selections is\nposted here:
• Traders.com -> Home–S&C Magazine ->\nTraders’ Tips
(Or from Traders.com, scroll down to the current articles\nsection and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader\nimplement a selected technique from an article in this issue\nor another recent issue. The entries here are contributed\nby software developers or programmers for software\nthat is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-49-54-traders-tips-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-49-54-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-49-54-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov335bofo5,d,"{""minimum-quantity"":""1"",""path"":""ch8a2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:08 (58): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
Jesse Livermore: Boy Plunger
Quantitative Technical Analysis: An Integrated Approach To Trading System Development And Trading Management
A Guide To Starting Your Hedge Fund
Advances In Heavy Tailed Risk Modeling: A Handbook Of Operational Risk"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-58-books-for-traders-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-58-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-58-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov336shen,d,"{""minimum-quantity"":""1"",""path"":""ch8a2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:08 (60–62): Shannon Entropy by Stephen Massel"",""caption-linebreaks"":""Shannon Entropy by Stephen Massel
Here, we define Shannon entropy and show how you can apply it to your trading results\nand derive a measure of the uncertainty or predictability of your method.
There are many different trading systems and strategies that can be used to trade\nthe markets, and these systems (including discretionary trading) all generate trade\nrecords that can be analyzed, whether generated from backtested results or live\ntrading. There are also many techniques that can be used to analyze these trades (for\nmore on this, see my March 2011 Stocks & Commodities article on mathematical\nexpectation, “What Can You Expect, Mathematically?”).
Of course, you can review the profit & loss of these trade records as well as many other\nmetrics, but is there a formal way to quantitatively measure the structure (nonrandomness)\nof the data and compare it to the purely random case in order to provide some insight into\nthe predictability of the method? Welcome to the world of Shannon entropy!"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-60-62-shannon-entropy-by-stephen-massel-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-60-62-shannon-entropy-by-stephen-massel-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-60-62-shannon-entropy-by-stephen-massel-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov337leto2,d,"{""minimum-quantity"":""1"",""path"":""ch8a2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:08 (7): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
SLAYING THE DRAGON
Editor,
Thank you for Robert Cocchiola’s recent article in Technical Analysis of STOCKS & COMMODITIES, “A True Odyssey” (June 2015). I was wondering if he would be willing to share the parameters for the short and long EMAs that he used as a part of his simple moving average crossover strategy that was mentioned in the next-to-last paragraph. Thank you.
Ray Pittman
Author Robert Cocchiola replies:
Thanks for writing. The system used one EMA for long trades and a different one for short trades. The EMAs for both were in a range of eight to 15 bars..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-7-letters-to-s-c-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-7-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-7-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov338fole,d,"{""minimum-quantity"":""1"",""path"":""ch8a2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:08 (8–10): Four Lessons From Three Decades Of Trading by Thomas Bulkowski"",""caption-linebreaks"":""Four Lessons From Three Decades Of Trading by Thomas Bulkowski
If you had the opportunity, why not learn a thing or two from those who have already figured out what works and what doesn’t? Here’s a chance to soak up some wisdoms as one trader shares lessons he learned as he traveled along his 30-year trading journey.
When I first started out, I taught myself fundamental analysis and then added technical analysis, so that today I use a comfortable blend of approaches. My trading activities allowed me to retire at the age of 36. That was over 20 years ago. Let me share four trading lessons I learned along the way.
1. Hold longer. Earn more
In 2005, I read an article about an accounting firm that handled the tax returns for over a thousand traders. Of them, 36% were profitable in 2004. In addition, just 4% of them made over $50,000 trading. In 2004, the S&P 500 index closed the year 9% above where it ended the prior year. The NASDAQ Composite gained 8.6%. I made 19.2%..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-8-10-four-lessons-from-three-decades-of-trading-by-thomas-bulkowski-28.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-8-10-four-lessons-from-three-decades-of-trading-by-thomas-bulkowski-36.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-8-10-four-lessons-from-three-decades-of-trading-by-thomas-bulkowski-37.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov338fole1,d,"{""minimum-quantity"":""1"",""path"":""faarfr207"",""ysw-page-title"":""Stocks & Commodities V. 33:08 (8–10): Four Lessons From Three Decades Of Trading by Thomas Bulkowski"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-8-10-four-lessons-from-three-decades-of-trading-by-thomas-bulkowski-33.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-8-10-four-lessons-from-three-decades-of-trading-by-thomas-bulkowski-34.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-08-8-10-four-lessons-from-three-decades-of-trading-by-thomas-bulkowski-35.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov331deby1,d,"{""minimum-quantity"":""1"",""path"":""faarfr207"",""ysw-page-title"":""Stocks & Commodities V. 33:09 (12–15): Decyclers by John F. Ehlers"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-12-15-decyclers-by-john-f-ehlers-35.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-12-15-decyclers-by-john-f-ehlers-36.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-12-15-decyclers-by-john-f-ehlers-37.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov331deby,d,"{""minimum-quantity"":""1"",""path"":""ch9s2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:09 (12–15): Decyclers by John F. Ehlers"",""caption-linebreaks"":""Decyclers by John F. Ehlers
Trends are great when they’re moving in the direction you want them to. But when they reverse, you don’t want to be caught off-guard. Here’s an oscillator that can signal trend reversals with almost no lag.
Technical analysis literature is filled with descriptions of detrenders. If market data is made up of trends and cyclers, why are there no decyclers? Well, now there are, and I am going to describe them in this article. The primary advantage of decyclers is that they can identify trends as an indicator that has virtually no lag.
IT'S ALL A PART OF A BIGGER CYCLE
From my analysis perspective, there is no such thing as a trend. Rather, I view market data as a continuum of cycle periods with differing cycle amplitudes. With this viewpoint, a trend is just a segment of a longer cycle. Then, by considering all market conditions as segments of a spectrum, the technical analysis problem is reduced to simply finding the right filter..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-12-15-decyclers-by-john-f-ehlers-30.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-12-15-decyclers-by-john-f-ehlers-33.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-12-15-decyclers-by-john-f-ehlers-34.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov331gapc,d,"{""minimum-quantity"":""1"",""path"":""ch9s2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:09 (16–19): Gap Continuation Breakouts by Ken Calhoun"",""caption-linebreaks"":""Gap Continuation Breakouts by Ken Calhoun
The objective of all traders is to find a market-beating strategy. The challenge is to find ones that are consistent. We all know that gaps create profitable trading opportunities, but what if they don’t continue? Here are some techniques that will help you identify profitable gap-trading opportunities.
It's no secret: The strongest technical breakout signals are found following gaps (also known as “windows”) when traded in the direction of the gap. When you combine basic gap entries with volume, bullish cups, and momentum candlestick patterns, you get even better entry signals. After all, gaps occur when premarket institutional buying or selling is significantly strong prior to the opening bell, which causes price to open far away from the prior day’s close.
Swing and intraday traders who want to capitalize on gap-trading opportunities need to have a solid understanding of the technical price–action patterns that work best when gaps occur..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-16-19-gap-continuation-breakouts-by-ken-calhoun-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-16-19-gap-continuation-breakouts-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-16-19-gap-continuation-breakouts-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov332laof,d,"{""minimum-quantity"":""1"",""path"":""ch9s2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:09 (20–22): Laws Of Trend Dynamics by Dirk Vandycke"",""caption-linebreaks"":""Laws Of Trend Dynamics by Dirk Vandycke
Trends are always present in the markets. In the third part of this series, we explore the forces behind price movements during trends and identify those with explosive price movements.
Last month, I wrote about price gravity, which is the presence of power laws and nonlinearity in the markets. This month, we can move on to understanding inertia, or the dynamics of trends in the markets. We know only too well that trends exist in the market, but there’s more to them than their existence.
THE MARKET'S ALWAYS RIGHT
Over the past half century, financial academic research was focused on the efficient market hypothesis (EMH) with regard to subjects such as risk assessment, option pricing, portfolio allocation, and optimization..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-20-22-laws-of-trend-dynamics-by-dirk-vandycke-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-20-22-laws-of-trend-dynamics-by-dirk-vandycke-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-20-22-laws-of-trend-dynamics-by-dirk-vandycke-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33235qa,d,"{""minimum-quantity"":""1"",""path"":""ch9s2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:09 (23, 35): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
This month Rob Friesen will again be writing Don Bright’s column.
WHAT’S THE CRUTCH?
This month we’ll discuss a lesser-known strategy that is used by discretionary traders who like to employ more size per trade with specific entry criteria and having a peer stock to lean on. Professionals in our industry refer to this strategy as “crutch trading.”
The crutch is the opportunity to hedge, but not the requirement to do so. It begins with a single directional trade that is long or short. It could also be a basket of stocks tied together with a particular theme..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-23-35-q-a-by-don-bright-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-23-35-q-a-by-don-bright-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-23-35-q-a-by-don-bright-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov332pecu,d,"{""minimum-quantity"":""1"",""path"":""ch9s2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:09 (24–26): Personal Currency Indexes by Sergey Kamenshchikov, PhD"",""caption-linebreaks"":""Personal Currency Indexes by Sergey Kamenshchikov, PhD
One of the reasons that some amount of market inefficiency exists in the markets is the occurrence of trends. In this article we look at a long-term forex daytrading system based on two currency indexes and the classic parabolic SAR indicator. The approach is based on cross-market analysis to help detect volatile movements in volume and to reduce risks.
When it comes to classic technical indicators, you need data but you have to be selective in the type of data you use. You may end up combining novel oscillators and trend indicators into one unique system but that would limit the efficiency of your system. And speaking of efficiency, no matter what the efficient market hypothesis (EMH) states, inefficiency exists in the market—fundamental data does not completely define the price of a single instrument..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-24-26-personal-currency-indexes-by-sergey-kamenshchikov-phd-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-24-26-personal-currency-indexes-by-sergey-kamenshchikov-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-24-26-personal-currency-indexes-by-sergey-kamenshchikov-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33235fu,d,"{""minimum-quantity"":""1"",""path"":""ch9s2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:09 (27, 35): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
COMPUTING NEEDS OF TRADERS
Should traders be using a particular type of computer for futures-trading activities?
Some traders believe that having the biggest and fastest computer will automatically translate into easy profits. However, for the average retail trader, this is certainly not true. In my opinion, with the exception of a scalping strategy or a fast daytrading strategy, having access to massive computing power probably plays a minimal role in trading success. That said, nothing can be more frustrating than sub-par computer performance; the last thing a trader needs is unnecessary stress. Accordingly, I believe that having access to a robust, quick, and reliable trading computer is important. Here are a few tips for preparing a favorable setup.
PC or Mac?
There is a small cult of devoted desktop Mac users out there, but unfortunately, most desktop-based trading platforms and software are not compatible with Macs..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-27-35-futures-for-you-by-carley-garner-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-27-35-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-27-35-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov332whis,d,"{""minimum-quantity"":""1"",""path"":""ch9s2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:09 (28–34): Where Is The Market Heading? by Koos van der Merwe"",""caption-linebreaks"":""Where Is The Market Heading? by Koos van der Merwe
If you’re wondering when the markets will correct, here’s one forecasting method to use that has stood the test of time.
\""If the first and third waves are of about equal length, the fifth wave will likely be a protracted surge, especially if volume on the fifth wave is greater than volume on the third wave. Conversely, if wave three has extended, the fifth wave should be simply constructed and resemble wave one.\"" —Frost & Prechter, Elliott Wave Principle
When A.J. Frost & Robert Prechter published their book Elliott Wave Principle in November 1978, they dedicated the book to the memory of the late A. Hamilton in appreciation of his great interest in Elliott wave theory. Over the years, this book became my bible. As the years passed, and as computers with complex algorithms and high-speed trading started to analyze the movement of the market, the Elliott wave theory started to become more of a signpost in the wilderness than a market forecast. What I mean by this is that an Elliott wave can change its count a little way down the road at the next signpost..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-28-34-where-is-the-market-heading-by-koos-van-der-merwe-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-28-34-where-is-the-market-heading-by-koos-van-der-merwe-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-28-34-where-is-the-market-heading-by-koos-van-der-merwe-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33338in3,d,"{""minimum-quantity"":""1"",""path"":""ch9s2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:09 (36, 38–43): Interview: Stick To The Trend With Tina Logan by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Stick To The Trend With Tina Logan by Jayanthi Gopalakrishnan
Tina Logan (www.tinalogan.com) is the author of Getting Started In Candlestick Charting and Profiting From Market Trends. She has more than 23 years of combined experience as a trainer in corporate settings and as a coach for traders. For several years she has shared her market knowledge and trading experience through private tutoring, books, ebooks, and individual and group online sessions. Her course attendees range from beginners who aspire to enter this challenging business to more experienced traders who wish to improve their returns and fine-tune their trading skills.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Logan on July 9, 2015 about identifying and riding trends.
Can you start by telling us a little bit about yourself and how you got interested in the markets?
In 1999, I was working for Anthony Robbins and attended one of his wealth-building seminars. It was intriguing, but it wasn’t until the final day of the event when I attended a breakout session on technical analysis that the light really came on for me. That’s when I realized there was an underlying structure to the behavior of the market, and it was imprinted on the chart..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-36-38-43-interview-stick-to-the-trend-with-tina-logan-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-36-38-43-interview-stick-to-the-trend-with-tina-logan-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-36-38-43-interview-stick-to-the-trend-with-tina-logan-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33447pr,d,"{""minimum-quantity"":""1"",""path"":""ch9s2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:09 (44–45, 47): Product Review: LCI Trading System For MetaStock XIV by S&C Staff"",""caption-linebreaks"":""Product Review: LCI Trading System For MetaStock XIV by S&C Staff
METASTOCK
90 South 400 West, Suite 620, Salt Lake City, UT 84101
Phone: sales 800 508-9180; technical support 801 265-9998
Email: sales@metastock.com, support@metastock.com
Product: Trading system feature in MetaStock XIV
Price: Daily charts $499; real-time charts $1,395
System requirements: Windows 7, 8, or 8.1, Intel Core 2 Duo, 2.4GHz or higher, 4GB RAM, 1.6GB disk space.
MetaStock version XIV comes with its share of improvements, but in addition to those improvements is an additional feature—Logan Connors Investment (LCI) Trading System, named after its developer, Logan Connors. The LCI Trading System includes all the tools and features needed to give it the status of a fully featured trading system..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-44-45-47-product-review-lci-trading-system-for-metastock-xiv-by-s-c-staff-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-44-45-47-product-review-lci-trading-system-for-metastock-xiv-by-s-c-staff-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-44-45-47-product-review-lci-trading-system-for-metastock-xiv-by-s-c-staff-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334exyo3,d,"{""minimum-quantity"":""1"",""path"":""ch9s2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:09 (46–47): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
DOES GOLD LOOK BRIGHTEST IN THE MIDST OF FOREIGN CHAOS?
You’d need to have your head in the sand to not hear of the turmoil surrounding the economy in Greece. There may be a short-term fix to this, but we all know what happens when you kick the can of debt down the road—it’s still going to be there once you get closer. Not dealing with this problem since 2009 has Greece front and center as a country possibly without the euro in its future as its currency. It’s a tossup as to whether or not Greeks want an exit from the eurozone, but I don’t believe they fully understand exactly what is likely to happen while getting from here to there..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-46-47-explore-your-options-by-tom-gentile-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-46-47-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-46-47-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334trti3,d,"{""minimum-quantity"":""1"",""path"":""ch9s2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:09 (48–54): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is John Ehlers’ article in this issue, “Decyclers.” Here, we present the September 2015 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com -> Home–S&C Magazine -> Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-48-54-traders-tips-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-48-54-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-48-54-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov335bofo6,d,"{""minimum-quantity"":""1"",""path"":""ch9s2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:09 (58): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
The Trading Playbook by Michael Gouvalaris
Exploiting Earnings Volatility: An Innovative New Approach To Evaluating, Optimizing, And Trading Option Strategies To Profit From Earnings Announcements by Brian Johnson
ABCs (Advanced & Basic Charts) Of Gann & Fibonacci: A Study Guide For The Chart Technician by Gene Nowell
FX Option Performance: An Analysis Of The Value Delivered By FX Options Since The Start Of The Market by Jessica James, Jonathan Fullwood, & Peter Billington
The Handbook Of Technical Analysis + Test Bank: The Practitioner’s Comprehensive Guide To Technical Analysis by Mark Andrew Lim"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-58-books-for-traders-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-58-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-58-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov336brre,d,"{""minimum-quantity"":""1"",""path"":""ch9s2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:09 (60–62): The Breakout Relative Strength Index by Howard Wang"",""caption-linebreaks"":""The Breakout Relative Strength Index by Howard Wang
It’s not easy to determine if the price of a stock is about to break out. Here’s one way you can determine the relative strength of a breakout, enabling you to act early and realize higher profits.
The term “breakout” is well known among those who follow price charts. It’s a simple concept, but the occurrence of a breakout causes a lot of excitement among technical analysts. It’s the first sign of the beginning of a trend or trend reversal. An equity you have been following may have been moving in a trading range between support & resistance levels for a few months and suddenly price breaks out from that range with increased volume. But even that is no guarantee that the stock will start moving in an uptrend or downtrend. How do you determine if the breakout is about to happen, and how do you determine the relative strength of the breakout? There’s no easy method, and this is what led me to find a way to identify the hidden breakout factors that arise from fluctuating stock prices..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-60-62-the-breakout-relative-strength-index-by-howard-wang-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-60-62-the-breakout-relative-strength-index-by-howard-wang-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-60-62-the-breakout-relative-strength-index-by-howard-wang-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33754le,d,"{""minimum-quantity"":""1"",""path"":""ch9s2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:09 (7, 54): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
ERRATA: SHANNON ENTROPY
Editor,
In looking at Stephen Massel’s article “Shannon Entropy” in the August 2015 STOCKS & COMMODITIES, he gives message 1 as “0101110100110001” and message 2 as “1110001110000111.”
In the table of Figure 1 in the article, it shows that pattern 10 occurred three times for message 1, but should it have been four times instead? And accordingly, the probabilities for message 1 would be as follows:
(11, P=3/15) , (10 , P=4/15) , ( 01 , P=5/15) , (00 , P=3/15)
As for message 2, pattern 10 occurred two times instead of five, and the probabilities for message 2 should be as follows..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-7-54-letters-to-s-c-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-7-54-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-7-54-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov338frpa,d,"{""minimum-quantity"":""1"",""path"":""ch9s2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:09 (8–10): From Pain To Gain by Dan Zanger"",""caption-linebreaks"":""From Pain To Gain by Dan Zanger
Most traders fail to adjust their trading strategy to match the current market. Here are five ways to identify when a trending market changes direction.
Let’s face it: Trading is no piece of cake. The average trader melts his or her account five times before they finally succeed. But how many would-be traders ever make it that far?
There are a number of pitfalls along the way to success, but one big mistake that many new and even some experienced traders make is not adjusting their trading strategy to match the current market. For example, failing to recognize that a bull has given way to a bear and continuing to buy the dips will zero your account balance quicker than a bad weekend in Vegas. While some markets deplete your account in big chunks, there are other, less obvious situations that can be likened to the ancient saying “death by a thousand cuts.” Anyone who has tried to use a trend strategy in a trading range market knows what that’s like. Range-bound markets are extremely choppy, and it’s that choppiness that serves momentum and swing traders..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-8-10-from-pain-to-gain-by-dan-zanger-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-8-10-from-pain-to-gain-by-dan-zanger-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-09-8-10-from-pain-to-gain-by-dan-zanger-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov331trfo,d,"{""minimum-quantity"":""1"",""path"":""ch1j206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:1 (10-14): Trading Forex: Charting Your Way by Imran Mukati"",""caption-linebreaks"":""Trading Forex: Charting Your Way by Imran Mukati
A Technical Roadmap
Much forex trading by speculators is based on technical analysis. In this third part of an article series on trading forex, we’ll look at what technical tools you should focus on.
Earlier in this series, I mentioned that forex trading is in many ways simpler than equity trading, since there are far fewer currency pairs than there are stocks. It is also important to understand that currency prices move differently. While a stock can climb or fall within a huge range — to pick an infamous example, Enron peaked at $90.56 per share in August 2000 and fell to $0.26 by November 30, 2001 just before its bankruptcy filing — currencies, by comparison, tend to move within a relatively narrow band or channel. This is because each currency represents buying power in its home country, which will only vary so much within the global economy, and because central banks intervene to affect valuation in the event their currency becomes too strong or too weak."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-10-14-trading-forex-charting-your-way-by-imran-mukati-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-10-14-trading-forex-charting-your-way-by-imran-mukati-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-10-14-trading-forex-charting-your-way-by-imran-mukati-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33143fu,d,"{""minimum-quantity"":""1"",""path"":""ch1j206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:1 (15, 43): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
MORE HIT, LESS MISS
It seems like commodity option liquidity is hit or miss. Can you provide some tips on markets to avoid, those I should focus on, and tips on navigating them appropriately with respect to the liquidity they provide?
I tend to be an advocate of trading options. Whether the strategy is to buy and sell options to hedge futures positions, or to trade options and option spreads outright, it is almost always a more conservative approach than simply taking a position in a futures contract. This is because option trading has the potential to offer traders more room for error. I don’t know about you, but I need all the leeway I can get!
With that said, not all option markets are viable contenders for speculation. Some involve challenges that green traders might not recognize until it’s too late. Further, even if they are aware of the obstacles, they might not necessarily know how to effectively manage them. Here are a few tips and tricks for speculating in commodity options."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-15-43-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-15-43-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-15-43-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov331whis,d,"{""minimum-quantity"":""1"",""path"":""ch1j206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:1 (16-22): Whiter Is Brighter by John F. Ehlers"",""caption-linebreaks"":""Whiter Is Brighter by John F. Ehlers
Relax, It’s Just Noise
White noise, pink noise — does it make a difference? It sure does, and here is how you can use noise theory to create an indicator with zero lag that works both as a countertrend oscillator and as a trend identifier.
Noise spectra are often described by color. Just like white light, white noise contains all frequency components having equal power. When I surveyed analysts’ description of market data, it led me to the conclusion that they describe it as pink noise. Pink noise is noise with memory, and I use this noise-with-memory concept to derive a market data synthesizer.
HERE'S WHAT I DID TO MAKE IT USEFUL
I turned the data synthesizer inside out to derive a white spectrum from the observed data. While simple, it is profound, because whitening the data negates the phenomenon I have called spectral dilation. Just because the derived white noise spectrum has uniform amplitude at all frequencies, it does not preclude the waveform from containing information. I then show how to extract the information in the waveform using a SuperSmoother filter. Since the derived waveform has a uniform power density at all frequencies, a range of optimum indicators can be created. These optimum indicators can be used on intraday data, in short-term trading strategies, and in longer-term trend followers."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-16-22-whiter-is-brighter-by-john-f-ehlers-29.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-16-22-whiter-is-brighter-by-john-f-ehlers-36.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-16-22-whiter-is-brighter-by-john-f-ehlers-37.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov331whis2,d,"{""minimum-quantity"":""1"",""path"":""faarfr207"",""ysw-page-title"":""Stocks & Commodities V. 33:1 (16-22): Whiter Is Brighter by John F. Ehlers"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-16-22-whiter-is-brighter-by-john-f-ehlers-33.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-16-22-whiter-is-brighter-by-john-f-ehlers-34.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-16-22-whiter-is-brighter-by-john-f-ehlers-35.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33253ex,d,"{""minimum-quantity"":""1"",""path"":""ch1j206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:1 (23, 53): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
WHO LET THE DOGS OUT?
Happy New Year, traders! Each year, I take time to reflect on what worked and what didn’t in my account. If you were a bull last year, things got shaky in the third quarter of 2014 before heading once again to all-time highs. You might hear about the healthcare sector and how it outperformed the averages, but what about the “dogs” of the dogs of the Dow strategy? As of this writing, the small dogs of the Dow — or the flying five — had a below-average year of 6.6%. Comparing that to the Dow Jones Industrial Average (DJIA) return of 7.9%, they are holding their own. Let’s start the year out right by reviewing the dogs strategy, the com-ing year’s flying five, and the alternative ways of investing in them.
For years, money managers have hunted for the optimum way to make money for their investors. Unfortunately, most have trouble keeping up with the averages. But one such system has beaten the averages year after year, not to mention a lot of money management firms. It’s a system that requires your attention only once a year, but returns over 20% each year on average. This system is called the dogs of the Dow and it involves buying certain stocks in the DJIA. The DJIA consists of 30 stocks that change from time to time — but this doesn’t change anything in the strategy."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-23-53-explore-your-options-by-tom-gentile-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-23-53-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-23-53-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov332redi,d,"{""minimum-quantity"":""1"",""path"":""ch1j206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:1 (24-26): Rethinking Diversification by Dirk Vandycke"",""caption-linebreaks"":""Rethinking Diversification by Dirk Vandycke
It’s All About Manipulation
Although diversification is a popular method of managing risk when it comes to financial investments, it is often undifferentiated. Here in this first part of a two-part series, we’ll take an in-depth look at the concept and determine if it is indeed a good way to manage risk.
When you go back in history, you’ll find that human beings have been groomed not to take chances in physically hostile environments. We are genetically tuned to fear risk. Uncertainty means risk and implies lack of control, and it is this lack of control that makes it difficult to trade the markets. But there’s no reason to fear risk in the markets — well, perhaps there is but it’s far less than we subconsciously believe. Without uncertainty, the financial markets wouldn’t exist and the positive aspect to risk is that it equals opportunity. Instead of fearing risk, perhaps we should try to respect it, get to know it, and try to contain it.
We all know that we shouldn’t put all our eggs in one basket. In order to reduce our risk, we should diversify our assets. But does that really work? Let’s find out."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-24-26-rethinking-diversification-by-dirk-vandycke-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-24-26-rethinking-diversification-by-dirk-vandycke-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-24-26-rethinking-diversification-by-dirk-vandycke-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33243qa,d,"{""minimum-quantity"":""1"",""path"":""ch1j206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:1 (27, 43): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
TO HEDGE OR NOT TO HEDGE
In this month’s column, Rob Friesen, president & COO of Bright Trading, will be filling in for Don Bright.
In keeping with our discussion last month on advanced trading tools, let’s further explore hedged strategies. This time, we’ll focus on types of strategies and setups using a hedge. A hedge implies a long or short that is protecting the opposite position.
Many of the trades discussed here can be implemented as a crutch trade, which is a trade that is started without initially using the hedge. The hedge can be implemented as required. This gives you something to lean on (that is, a crutch) as a way of protecting the trade and buying yourself time. Once hedged, the trade changes from absolute performance to relative performance, that is, the relative change between the two stocks rather than up or down movement of the first stock. You could have a scenario where you purchase a stock, the trade starts going bad, you hedge it, and then the spread between the two changes in your favor and instead of the original loss, you pull a profit out of it. Keeping that initial loss to a minimum is preferable. You have heard the phrase when in doubt, get out. Why not substitute that action for when in doubt, hedge the trade?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-27-43-q-a-by-don-bright-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-27-43-q-a-by-don-bright-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-27-43-q-a-by-don-bright-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov332mowi,d,"{""minimum-quantity"":""1"",""path"":""ch1j206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:1 (28-33): Modeling With Daily Implied Volatility by Massimiliano Scorpio"",""caption-linebreaks"":""Modeling With Daily Implied Volatility by Massimiliano Scorpio
The Skew Of Things To Come
In this first part of a two-part series, find out how incorporating daily implied volatility into your system can give you the edge you’ve been looking for.
When managing an option portfolio, you are bound to have several occurrences where having a roadmap to figure out a more realistic what-if scenario or to gain in-depth insight into the strengths and weaknesses of how your positions could evolve would be useful.
Having traded Eurex futures & options bond markets as an institutional trader for many years, I have experienced this situation several times. After comparing my approach with those of other market participants, I noticed that some big players use daily implied volatility to make their trading decisions. To me, this suggested that I should take a more proactive approach beyond the traditional use of the greek variables in options."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-28-33-modeling-with-daily-implied-volatility-by-massimiliano-scorpio-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-28-33-modeling-with-daily-implied-volatility-by-massimiliano-scorpio-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-28-33-modeling-with-daily-implied-volatility-by-massimiliano-scorpio-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov333frgr,d,"{""minimum-quantity"":""1"",""path"":""ch1j206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:1 (34-37): From Greed & Fear To Grow & Protect, Part 2 by Allen Rehert"",""caption-linebreaks"":""From Greed & Fear To Grow & Protect, Part 2 by Allen Rehert
The Road To Recovery
In part 1 of this two-part article, you were introduced to rules you could apply in various markets, including markets recovering from a decline. Here in part 2, we’ll see how well the rules work.
Last month, I described how and why I set out to build a buy write strategy using combinations of stocks and call options with the goal of making at least a 10% annualized return. My objective was to find stocks that are unlikely to decline substantially, but if they did, I would use my recovery rules from part 1 to allow my buy write investments to track or improve upon the recovery of the underlying stock. For the strategy, I used a selective screen to tell me what to buy and I developed conditional rules to tell me when to exit. Here, I’ll describe how I tested the strategy.
TEST CASES
To test my strategy, I analyzed the expected behavior via simulation. I used the Black-Scholes equation to value options using these parameters:"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-34-37-from-greed-fear-to-grow-protect-part-2-by-allen-rehert-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-34-37-from-greed-fear-to-grow-protect-part-2-by-allen-rehert-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-34-37-from-greed-fear-to-grow-protect-part-2-by-allen-rehert-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov333inge,d,"{""minimum-quantity"":""1"",""path"":""ch1j206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:1 (38-43): Interview: Getting Smarter With Alexander Elder by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Getting Smarter With Alexander Elder by Jayanthi Gopalakrishnan
Be Calm, Be Disciplined
Alexander Elder is a professional trader and trading psychology expert based in New York City. He is the author of a dozen books, including Come Into My Trading Room (Barron’s 2002 Book of the Year) and Trading For A Living, considered modern classics among traders.
Elder was born in Leningrad and grew up in Estonia, where he entered medical school at the age of 16. At 23, while working as a ship’s doctor, he jumped a Soviet ship in Africa and received political asylum in the United States. He worked as a psychiatrist in New York and taught at Columbia University. His experience as a psychiatrist provided him with unique insight into the psychology of trading. Elder’s books, articles, and software reviews have established him as an expert on trading.
Elder is the originator of the Traders’ Camps week-long classes for traders, as well as the SpikeTrade group for traders. He continues to trade and is a sought-after speaker at conferences in the US and abroad.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Alex Elder on October 31, 2014 about how to stay ahead in today’s fast-moving markets.
What prompted you to write The New Trading For A Living? What is new since the book originally came out?
The publishers had been asking me for a revision for the last 10 or 15 years, and I always declined because I said the book was complete and stood on its own. What really prompted me to write the new edition is that new technologies started appearing and, seeing that, I decided I would come up with a wonderful interactive book. Well, that interactive book still hasn’t been completed. That’s the next project. I thought it would take three months to refresh Trading For A Living and update it a little. Well, those three months became 18 months, because I found I kept getting smarter. The last sentence in my original Trading For A Living, which was published in 1993, was, “Like any good trader, I continue to learn and reserve the right to be smarter tomorrow than I am today.” And I felt a bit smarter. I learned things I did not know at that time."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-38-43-interview-getting-smarter-with-alexander-elder-by-jayanthi-gopalakrishnan-28.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-38-43-interview-getting-smarter-with-alexander-elder-by-jayanthi-gopalakrishnan-33.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-38-43-interview-getting-smarter-with-alexander-elder-by-jayanthi-gopalakrishnan-34.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov333inge1,d,"{""minimum-quantity"":""1"",""path"":""faarfr207"",""ysw-page-title"":""Stocks & Commodities V. 33:1 (38-43): Interview: Getting Smarter With Alexander Elder by Jayanthi Gopalakrishnan"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-38-43-interview-getting-smarter-with-alexander-elder-by-jayanthi-gopalakrishnan-35.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-38-43-interview-getting-smarter-with-alexander-elder-by-jayanthi-gopalakrishnan-36.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-38-43-interview-getting-smarter-with-alexander-elder-by-jayanthi-gopalakrishnan-37.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334prre,d,"{""minimum-quantity"":""1"",""path"":""ch1j206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:1 (44-47): Product review: eSignal 12.0 by Technical Analysis, Inc."",""caption-linebreaks"":""Product review: eSignal 12.0 by Technical Analysis, Inc.
INTERACTIVE DATA CORP.
3955 Point Eden Way, Hayward, CA 94545
phone: 510 266-6000, 800 815-8256
website: www.esignal.com
product: Trading software with streaming stock quotes and charting tools
System requirements: Recommended: Windows 8, Windows 7 (64-bit); Intel Core i3/i5/i7; 4 GB RAM; 250 MB available disk space.
Power User: Windows 8, Windows 7 (64-bit); Intel Core i7 (3.2 GHz or faster);8 GB RAM; 250 MB available hard disk space
price: Fees vary depending on whether you are paying by year or month. Additional fees are charged for increasing the number of symbols viewed, market quotes provided, and for third-party software; fees range from $49/month to $395/month — call or see website for more pricing details.
eSignal 12.0 adds two major new features: Market Screener Plus+ and Options Analytix. Both deserve an in-depth look to see how they can be beneficial to the trader. Two recent reviews of Advanced GET and eSignal 11 that appeared in this publication will help you get a broader perspective of this product that is rich in features. (See “Further reading” at end.)
MARKET SCREENER PLUS+
The idea behind Market Screener Plus+ is to give you the ability to scan an entire exchange or just part of it. Several exchanges are available to choose from. If you wish to scan several exchanges simultaneously, you’ll need to pay the fee to access data from several exchanges: $25/month for three, $35/month for five, and $50/month for 10. You need to use screening criteria, referred to as filters, to scan the markets. You can create filters and save them or use the prebuilt ones. Your choices for criteria are bar values, fundamental, and technical. In Figure 1 you see the interface for setting up your screening criteria. You will see that the criteria are defined by three columns, with the middle one being a relational operator. Hence, it is not necessary to know any programming language to define your criteria."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-44-47-product-review-esignal-12-0-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-44-47-product-review-esignal-12-0-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-44-47-product-review-esignal-12-0-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334prre1,d,"{""minimum-quantity"":""1"",""path"":""ch1j206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:1 (48-52): Product review: MotiveWave Ultimate 3.5.4 by Donald W. Pendergast Jr."",""caption-linebreaks"":""Product review: MotiveWave Ultimate 3.5.4 by Donald W. Pendergast Jr.
MOTIVEWAVE SOFTWARE
34 Eglington Ave. West, Suite 127, Toronto, ON M4R 2H6 Canada
internet: www.motivewave.com
phone: 416 840-4602, (fax) 416 628-3515
email: sales@motivewave.com
product: Advanced charting and trading platform
price: 14-day free trial; 90-day lease $295; six-month lease $555; lifetime license $1,595; updates $199
Within the ever-evolving universe of trading and market analysis software, competition is fierce, innovation is plentiful, and customers are becoming more difficult to please. What may have been widely regarded as “best in class” software five or 10 years ago may not even be a viable contender in 2014 as market dynamics change and market participants develop greater understanding of the most effective ways to capitalize on such changes. As such, traditional one-size-fits-all toolbox programs may leave a lot to be desired, particularly if they don’t feature in-depth, leading-edge analysis, scanning, charting, and relevant trading tools. MotiveWave Ultimate 3.5.4 offers all of the toolbox items — and more — typically found in many of the “big-name” software/charting packages, but it’s also packed with highly advanced Elliott wave and harmonic pattern trading tools. This should make it an increasingly popular package for those seeking to perfect their understanding and application of those methodologies in their quest for consistent profitability."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-48-52-product-review-motivewave-ultimate-3-5-4-by-donald-w-pendergast-jr-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-48-52-product-review-motivewave-ultimate-3-5-4-by-donald-w-pendergast-jr-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-48-52-product-review-motivewave-ultimate-3-5-4-by-donald-w-pendergast-jr-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov335trti,d,"{""minimum-quantity"":""1"",""path"":""ch1j206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:1 (54-60): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is John Ehlers’ article in this issue, “Whiter Is Brighter.” Here, we present the January 2015 Traders’ Tips code with possible implementations in various software.
Code for TradeStation is already provided in Ehlers’ article by the author. S&C subscribers will find that code at the Subscriber Area of our website, www.Traders.com. (Click on “S&C Article Code” from the home page.) Presented here is an overview of some possible implementations for other software as well.
Traders’ Tips code is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by various software developers or programmers for software that is capable of customization.
Readers will find the January 2015 Traders’ Tips code and formulas at our website, Traders.com, in the Traders’ Tips area. Here, you can read some discussion of the techniques’ implementation by the Traders’ Tips contributors as well as some example charts.
To locate Traders’ Tips at our website, Traders.com, click on the Traders’ Tips link from our “Home—S&C Magazine” menu at the top of the home page, or scroll down to the “Current articles” section and click on the Traders’ Tips tab."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-54-60-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-54-60-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-54-60-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov336bofo,d,"{""minimum-quantity"":""1"",""path"":""ch1j206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:1 (61): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
he following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included:
Stock Trader’s Almanac 2015
Building Algorithmic Trading Systems: A Trader’s Journey From Data Mining To Monte Carlo Simulation To Live Trading + website
Asset Rotation: The Demise of Modern Portfolio Theory And The Birth Of An Investment Renaissance
The Mathematics Of Financial Models: Solving Real-World Problems With Quantitative Methods + website
With A Little Help From Our Friends, Creating Community As We Grow Older"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-61-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-61-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-61-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
v338letoscby,d,"{""minimum-quantity"":""1"",""path"":""ch1j206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:1 (8-9): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
COMMITMENTS OF TRADERS
Editor,
Further to Giorgos Siligardos’ November 2014 article on when the “smart money” fails, I would argue that fail or not, the Commitments Of Traders (COT) report is “much ado about nothing.” After reading Larry Williams’ Secrets Of The COT Report last year, I did hundreds of hours of backtesting, studying, and simulated trading and I come away with a big thumbs down on using COT data.
As some of you know, the so-called smart money (that is, commercial speculators) generally buy when markets sell, and vice versa. In effect, they’re not really trading but hedging. (Technically, this reminds me of inversely related markets like the US dollar and gold, or the Dow Jones Industrial Average (DJIA) and the volatility index (VIX) — neither of which provide a truly predictive view into the others’ future activity). In any case, the only hope of making money using the COT report might be to enter an opposite position to the commercials. For example, when a selling campaign is ending, one might consider buying, and so on. In fact, this is the only way you can trade using COT data unless you, too, are hedging and have the enormous financial clout to short long markets, and be long short markets. But even so, the COT report doesn’t provide an effective early warning system as to when large interests are going to move. So I ask: For the average speculator, what’s the intrinsic value in following it?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/v-33-1-8-9-letters-to-s-c-by-technical-analysis-inc-21.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-8-9-letters-to-s-c-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-1-8-9-letters-to-s-c-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov331mofl,d,"{""minimum-quantity"":""1"",""path"":""ch10o2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:10 (12–17): The Money Flow Oscillator by Vitali Apirine"",""caption-linebreaks"":""The Money Flow Oscillator by Vitali Apirine
When is there more buying or selling pressure? Here’s an indicator that answers that question.
There are indicators available to the technician that measure buying and selling pressure such as the money flow index (MFI), the Chaikin money flow indicator (CMF), and the moving average convergence/divergence (MACD). Each has its pros and cons, as all indicators do. After observing these indicators, I came up with an indicator that addresses some of the shortcomings of the existing indicators. I call this indicator the money flow oscillator (MFO), which is similar to the MFI, CMF, and MACD in that it measures buying and selling pressure but, as you’ll find out, it’s a little different. That’s not to say it doesn’t have its share of drawbacks.
HERE'S WHAT IT DOES
The MFO measures the amount of MFO volume over a specific lookback period. The default lookback period is 20 but that can be changed based on your trading style. The resulting indicator fluctuates above or below the zero line, similar to the way an oscillator does..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-12-17-the-money-flow-oscillator-by-vitali-apirine-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-12-17-the-money-flow-oscillator-by-vitali-apirine-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-12-17-the-money-flow-oscillator-by-vitali-apirine-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov331bror,d,"{""minimum-quantity"":""1"",""path"":""ch10o2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:10 (18–22): Breakout Or Fakeout? by Ken Calhoun"",""caption-linebreaks"":""Breakout Or Fakeout? by Ken Calhoun
Trading “false breakouts” can be a costly mistake. Find out how you can minimize these types of entries using simple visual price action, volume, and volatility-scanning strategies.
It's the single biggest challenge a trader will face: you enter what looks to be a solid technical breakout trade, only to see it reverse course and stop you out. When this happens over and over, these false breakouts can quickly drain your trading account.
Two of the most common errors that active traders make include:
• Not using tight stops, which results in taking stop-losses that are too expensive, and
• Overtrading choppy charts with weak, uncertain technical entry signals. If you trade choppy, low-volatility charts, you’ll likely have many stops and fewer winning trades.
Instead, knowing what specific types of charts to trade can put the odds in your favor, since strong breakouts often continue in-trend, when traded correctly. In this article, I’ll show you how to minimize false breakout entries using simple, visual strategies that are based on price action, volume, and volatility scanning..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-18-22-breakout-or-fakeout-by-ken-calhoun-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-18-22-breakout-or-fakeout-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-18-22-breakout-or-fakeout-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov332laof1,d,"{""minimum-quantity"":""1"",""path"":""ch10o2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:10 (24–27): The Laws Of Cyclicality by Dirk Vandycke"",""caption-linebreaks"":""The Laws Of Cyclicality by Dirk Vandycke
Trends do not continue forever. The life of a trend comes to a point where it stalls and reverses or temporarily stalls before resuming. How do you recognize when the trend has ended? Let’s explore.
In my previous articles in this series on market mechanics, I discussed gravity, capacity, and inertia, which are the dominating forces in the financial markets. In this fourth part, I’ll take a look at the cyclical nature of markets, which is an inevitable consequence of those forces.
ALTERNATE UP AND DOWN MOVES
In my earlier articles I discussed the existence of a feedback loop in the financial markets from the perspective of system dynamics. People react (based on emotions) to the input of the system (fundamental and macroeconomic) and to what happens at the output (price action)..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-24-27-the-laws-of-cyclicality-by-dirk-vandycke-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-24-27-the-laws-of-cyclicality-by-dirk-vandycke-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-24-27-the-laws-of-cyclicality-by-dirk-vandycke-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov332newi,d,"{""minimum-quantity"":""1"",""path"":""ch10o2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:10 (28–31): New Insights From Classic Indicators by Amber Hestla"",""caption-linebreaks"":""New Insights From Classic Indicators by Amber Hestla
Analysts have developed hundreds of technical indicators over the years. Sometimes new indicators help technical analysts discover success. Other analysts find success by looking at old indicators in new ways. Here, we explore a popular indicator from a different perspective.
When analyzing the markets, all analysts work with a relatively small amount of data. For prices, there’s just the open, high, low, and close. Some may add in volume, and futures traders might add open interest and the Commitments Of Traders (COT) numbers to their data set. Given the small number of data points, it’s a little surprising to see how many ways the same numbers can be sliced and diced to create indicators. A single software platform can include more than 300 different indicators and each indicator is some sort of variation of the basic data.
Since many indicators are similar, they will often simply confirm each other..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-28-31-new-insights-from-classic-indicators-by-amber-hestla-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-28-31-new-insights-from-classic-indicators-by-amber-hestla-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-28-31-new-insights-from-classic-indicators-by-amber-hestla-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov333dofr,d,"{""minimum-quantity"":""1"",""path"":""ch10o2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:10 (32–35): Downloading Free Stock Data by Slawomir Bobrowski"",""caption-linebreaks"":""Downloading Free Stock Data by Slawomir Bobrowski
Typically, market data is supplied by the exchanges and you have to pay for that data. Here’s a look at how you can extract data from free resources.
In order to trade, you need a brokerage account, and that brokerage gets its data from the exchanges. Active traders who need real-time data at their fingertips will need to pay for that type of data. But if your data needs are not overly sophisticated, with some programming skills you can get your data at no cost from companies such as Google and Yahoo. The challenge is to get it into the format you need in order to program your trading systems.
In this article I will discuss free data downloading of:
• End-of-day (EOD) historical data
• Historical intraday stock price data
• Streaming real-time data.
These methods of data downloading are legal as long as you follow the data provider’s terms and conditions. I’ll look at the above three types of data using the data provided by Google, Inc. in my examples..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-32-35-downloading-free-stock-data-by-slawomir-bobrowski-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-32-35-downloading-free-stock-data-by-slawomir-bobrowski-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-32-35-downloading-free-stock-data-by-slawomir-bobrowski-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33338in4,d,"{""minimum-quantity"":""1"",""path"":""ch10o2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:10 (36, 38–41): Interview: Conquering The Trading Demons With Gary Dayton by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Conquering The Trading Demons With Gary Dayton by Jayanthi Gopalakrishnan
Gary Dayton, Psy.D., is a trading psychologist, trader, author, and founder of TradingPsychologyEdge.com. His book Trade Mindfully outlines the mental skills needed for high-level trading performance. In his Deep Practice Program, traders learn to confront trading situations and mental challenges for deep, extensive learning. He teaches traders how to trade based on only price and volume.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Dayton on August 10, 2015 about how to overcome emotional struggles that get in the way of profitable trading.
From your bio, it sounds like you’re a clinical psychologist. I was curious to find out how you got interested in the financial markets.
I am a clinical psychologist and I also trade. I trade the S&P and sometimes will trade currencies and other futures markets, but primarily, I trade the S&P on a daytrading basis; occasionally I will hold a position overnight. But I’m in the markets just about every day..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-36-38-41-interview-conquering-the-trading-demons-with-gary-dayton-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-36-38-41-interview-conquering-the-trading-demons-with-gary-dayton-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-36-38-41-interview-conquering-the-trading-demons-with-gary-dayton-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334exyo4,d,"{""minimum-quantity"":""1"",""path"":""ch10o2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:10 (42–43): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
ARE THERE OPPORTUNITIES IN THE TECHNOLOGY SECTOR?
Don’t start sending hate mail my way just because I think it’s time for a break in the technology markets. I am a long-term bull, but there are times that I believe taking profits off the table can create short-term opportunities for those who know where to look.
A lot of the pundits say that technology stocks are overdone, like an overcooked steak left on the barbecue grill. Why should I believe what the analysts on TV have to say? They, for the most part, don’t invest in any of their recommendations..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-42-43-explore-your-options-by-tom-gentile-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-42-43-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-42-43-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33446fu,d,"{""minimum-quantity"":""1"",""path"":""ch10o2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:10 (44, 46): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
WHAT'S THE SKINNY ON MOBILE FUTURES PLATFORMS?
As data networks and hand-held technology improves, so does trader access to the futures & options markets. The first mobile trading platforms were slow, inefficient, and unreliable. With real money on the line, this is unacceptable. However, today’s marketplace offers traders who are on the go the opportunity to affordably and confidently make, place, and monitor trades in an instant from a smartphone or tablet..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-44-46-futures-for-you-by-carley-garner-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-44-46-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-44-46-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334qaby1,d,"{""minimum-quantity"":""1"",""path"":""ch10o2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:10 (45–46): Q&A by Don Bright"",""caption-linebreaks"":""Q&A by Don Bright
Rob Friesen, president & COO of Bright Trading, writes this month on the topic of liquidity changes in the markets.
IT'S ALL ABOUT VOLUME
As a trader, I am concerned about changes we are seeing these days in liquidity for some equities as the result of regulatory changes and other factors. How will this change impact trading?
Some changes in liquidity are coming about as a result of several factors, including some of the following reasons:
• Some of the regulations restricting banks from proprietary trading reduce trading activity in stocks..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-45-46-q-a-by-don-bright-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-45-46-q-a-by-don-bright-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-45-46-q-a-by-don-bright-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334reet,d,"{""minimum-quantity"":""1"",""path"":""ch10o2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:10 (47): Review: ETFChannel.com by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Review: ETFChannel.com by Jayanthi Gopalakrishnan
ETFCHANNEL.COM
With exchange traded funds (ETFs) becoming a popular channel for investors and traders, it’s now becoming as difficult, if not more, to select ETFs to buy as it is to select stocks. Thus, coming across a website that contains information to make it easier to narrow down your choices makes the website one to be bookmarked..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-47-review-etfchannel-com-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-47-review-etfchannel-com-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-47-review-etfchannel-com-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334trti4,d,"{""minimum-quantity"":""1"",""path"":""ch10o2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:10 (48–54): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Vitali Apirine’s article in this issue, “The Money Flow Oscillator.” Here, we present the October 2015 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-48-54-traders-tips-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-48-54-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-48-54-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov335bofo7,d,"{""minimum-quantity"":""1"",""path"":""ch10o2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:10 (58): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
Equity Crowdfunding For Investors: A Guide To Risks, Returns, Regulations, Funding Portals, Due Diligence, And Deal Terms
A Wealth Of Common Sense: Why Simplicity Trumps Complexity In Any Investment Plan
The Advanced Fixed Income And Derivatives Management Guide
Share Attack
The Value Of Debt In Retirement: Why Everything You Have Been Told Is Wrong"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-58-books-for-traders-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-58-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-58-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov336fost,d,"{""minimum-quantity"":""1"",""path"":""ch10o2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:10 (60–62): Four Steps To Consistent Profits by Dariusz Swierk, PhD, & Szymon Sypniowski"",""caption-linebreaks"":""Four Steps To Consistent Profits by Dariusz Swierk, PhD, & Szymon Sypniowski
The path to profitable trading can easily be thwarted, especially when you misinterpret indicators, fail to test your trading systems, or fail to develop a set of trading rules to follow. Here are four steps you can take to overcome your hurdles.
After studying traders and understanding their journey from when they start until they become profitable and experienced traders—sometimes with staggering financial success—we would like to share a few things that we have concluded from our findings.
In this article, we will discuss systems and some of the erroneous approaches to them. We’ll also explore the most efficient route to trading successfully, and how to progress in your trading career..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-60-62-four-steps-to-consistent-profits-by-dariusz-swierk-phd-szymon-sypniowski-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-60-62-four-steps-to-consistent-profits-by-dariusz-swierk-phd-szymon-sypniowski-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-60-62-four-steps-to-consistent-profits-by-dariusz-swierk-phd-szymon-sypniowski-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov338goye,d,"{""minimum-quantity"":""1"",""path"":""ch10o2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:10 (8–10): Gold & The Yen by Tyler Yell"",""caption-linebreaks"":""Gold & The Yen by Tyler Yell
Different financial markets can be related in ways you least expect. Here, we’ll look at the relationship between the gold market and the Japanese yen.
Financial markets, much like the human body, are surprisingly interrelated. If one part of the body is ill, then feelings of malaise or weakness will likely permeate through the body. In a similar fashion, if one market sneezed, another may figuratively catch a cold due to common driving factors. Learning how one market can affect another market, either for good or bad, is the premise of intermarket analysis. This type of analysis can help you apply analysis from one market to another, which I’ll do here with gold and the yen (JPY).
INTERMARKET ANALYSIS EXPLAINED
Intermarket analysis involves taking a cause & effect mindset. This type of mindset is common across all markets but most common in fundamental analysis, where one economic news release can cause traders and investors to look to the effects of their investment. In other words, all markets are related. What happens in a bond or commodity market can impact a currency or equity market..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-8-10-gold-the-yen-by-tyler-yell-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-8-10-gold-the-yen-by-tyler-yell-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-10-8-10-gold-the-yen-by-tyler-yell-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33145de,d,"{""minimum-quantity"":""1"",""path"":""ch11n2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:11 (12–14, 45): Detecting Energy Patterns by Charles Drummond"",""caption-linebreaks"":""Detecting Energy Patterns by Charles Drummond
It’s all about identifying strong energy in support & resistance levels on a price chart. Here’s one tool that helps uncover the strong energy of support & resistance, giving a trader more clarity when it comes to making trading decisions.
It has been over 30 years since I authored my book How To Make Money In The Futures Market & Lots Of It! I wrote it to keep myself from fiddling with a longer-term trade in silver at the time. It is with great enthusiasm that I offer this article containing the first look at my new form of technical analysis.
WHAT IS REALITY?
Reality, presumably, is something you perceive. You can imagine any number of things. You think what you think, not knowing why you think the way you think..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-12-14-45-detecting-energy-patterns-by-charles-drummond-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-12-14-45-detecting-energy-patterns-by-charles-drummond-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-12-14-45-detecting-energy-patterns-by-charles-drummond-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov331mabr,d,"{""minimum-quantity"":""1"",""path"":""ch11n2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:11 (16–20): Managing Breakout Trades by Ken Calhoun"",""caption-linebreaks"":""Managing Breakout Trades by Ken Calhoun
Your order has been filled and your trade is breaking out in your favor. How do you manage the trade to maximize profits? Here are a few techniques you can apply that are safer and less risky than not actively managing your position.
Deciding on initial stop-loss levels and where to add to winning positions are key decisions you face as an active trader. Simply entering and hoping for the best without placing tight stops is how many traders unsuccessfully approach the markets. Instead, using simple price-action technical stops and scale-in entries can provide..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-16-20-managing-breakout-trades-by-ken-calhoun-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-16-20-managing-breakout-trades-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-16-20-managing-breakout-trades-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33249la,d,"{""minimum-quantity"":""1"",""path"":""ch11n2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:11 (22–24, 49): Laws Of Fractals by Dirk Vandycke"",""caption-linebreaks"":""Laws Of Fractals by Dirk Vandycke
Price action has a fractal nature because the way that people act and react to the markets is repetitive. The challenge is in identifying these repetitive patterns on a price chart. Here, we explore one way to identify these patterns.
In my previous articles in this series on market mechanics, I discussed the laws of gravity, capacity, inertia, and cyclicality as strong underlying forces in financial markets. All patterns, market behavior, and the dynamics that take place in the markets can be thought of as symptoms or consequences of these laws. These primary forces are easy to understand and make sense intuitively..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-22-24-49-laws-of-fractals-by-dirk-vandycke-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-22-24-49-laws-of-fractals-by-dirk-vandycke-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-22-24-49-laws-of-fractals-by-dirk-vandycke-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33244ex,d,"{""minimum-quantity"":""1"",""path"":""ch11n2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:11 (26, 44): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
THE COST OF DOING BUSINESS
How can you get your trades entered and exited at the best possible price?
One way to look at the bid & ask spread of a quote, whether it be on a stock, ETF, or option, is to consider it as a cost of doing business. I try and find options to buy with a spread no wider than a nickel ($0.05) in order to keep my cost of doing business small.
Here’s a quick example of an option quote. An XYZ Aug15 40C is trading at $2.00 x $2.10. If you were to buy one contract of this option, it means that you are buying the right to buy 100 shares of XYZ at $40 on or before the third Friday in August..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-26-44-explore-your-options-by-tom-gentile-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-26-44-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-26-44-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33230in,d,"{""minimum-quantity"":""1"",""path"":""ch11n2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:11 (28, 30–33): Interview: Developing Systems With Howard Bandy by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Developing Systems With Howard Bandy by Jayanthi Gopalakrishnan
Howard Bandy has degrees in mathematics, physics, engineering, and computer science. He completed master’s and doctoral studies and research in modeling, simulation, and statistics, and he performed some of the early work in artificial intelligence. He has over 50 years’ experience in research and applications of modeling and simulation of financial systems. He is the author and publisher of several books related to quantitative trading systems for stocks, bonds, funds, and futures. He regularly conducts several seminars and has spoken at international conferences.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan talked with Howard Bandy on September 9, 2015 about what it takes to develop a reliable trading system.
Howard, tell us about how you got interested in trading.
My first stock purchases were in the 1960s. Spreads were in one-eighths, and commissions were high. Later, I went to graduate school, where I studied mathematics, statistics, and computer science. One of my areas of research was artificial intelligence..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-28-30-33-interview-developing-systems-with-howard-bandy-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-28-30-33-interview-developing-systems-with-howard-bandy-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-28-30-33-interview-developing-systems-with-howard-bandy-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33349av,d,"{""minimum-quantity"":""1"",""path"":""ch11n2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:11 (34–37, 49): Average Percentage True Range by Vitali Apirine"",""caption-linebreaks"":""Average Percentage True Range by Vitali Apirine
Here’s a modification of the average true range (ATR) that provides an added dimension when it comes to detecting volatility in the markets.
The average true range (ATR), which was developed by J. Welles Wilder Jr., is based on the true price range and uses absolute price changes. It’s a measure of volatility, which is something we all need to keep an eye on. Because the ATR uses absolute price changes, the ATR values are not comparable. To be able to compare ATR values with other securities, I modified the ATR slightly and created the average percentage true range (APTR)..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-34-37-49-average-percentage-true-range-by-vitali-apirine-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-34-37-49-average-percentage-true-range-by-vitali-apirine-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-34-37-49-average-percentage-true-range-by-vitali-apirine-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov333seto,d,"{""minimum-quantity"":""1"",""path"":""ch11n2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:11 (38–40): The Secret To Breaking The Code by Rande Howell, MEd"",""caption-linebreaks"":""The Secret To Breaking The Code by Rande Howell, MEd
Many people get duped into believing that by participating in the markets, success will be right around the corner. Here’s a more realistic look.
Why do experienced traders become unglued when losses occur, even though they know that losses are part of trading? And why do traders slip from confidence into overconfidence (and blow up their profits) just when they’ve put a string of winners together? In addition, why do some traders’ execution plans fly out the window just at the moment they need them most?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-38-40-the-secret-to-breaking-the-code-by-rande-howell-med-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-38-40-the-secret-to-breaking-the-code-by-rande-howell-med-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-38-40-the-secret-to-breaking-the-code-by-rande-howell-med-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334fufo2,d,"{""minimum-quantity"":""1"",""path"":""ch11n2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:11 (41): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
THE RISE OF THE MARGIN
Is a brokerage firm justified in increasing daytrading margin rates during higher volatility?
Yes, daytrading margin is set at the bro-kerage level rather than at the exchange level. In other words, although futures exchanges such as the CME Group and the Intercontinental Exchange declare minimum margin rates for positions held overnight, it is the brokerage firm, or even the individual broker, that determines the margin rates required for traders to enter positions that will be offset prior to the same day’s close.
Daytrading margins can be set at levels substantially below the exchange’s minimum overnight rate. For instance, at the time of this writing, the CME charged $5,060 in margin to initiate an emini S&P 500 futures contract intended to be held overnight..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-41-futures-for-you-by-carley-garner-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-41-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-41-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334qaby2,d,"{""minimum-quantity"":""1"",""path"":""ch11n2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:11 (42–44): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
In memory of Don Bright: I want to begin with some words in memory of Don, my colleague at Bright Trading. I know many traders and investors have benefited from Don’s knowledge of the industry over the years, including through this column and his generous contributions of articles and commentaries. Many thanks to the editors of Stocks & Commodities for the opportunity to extend Don’s legacy by way of continuing this column so we can keep pursuing the goal of educating readers.
RECENT FLASH CRASHES
Last month, I put forward my concerns for liquidity. Since I had written that column about two months before it appeared in print, readers would have already seen at least one flash crash by the time they read it..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-42-44-q-a-by-rob-friesen-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-42-44-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-42-44-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334prre8,d,"{""minimum-quantity"":""1"",""path"":""ch11n2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:11 (46–48): Product Review: Little Big View by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Product Review: Little Big View by Jayanthi Gopalakrishnan
MARKETGAUGE.COM
70 Sparta Ave., Suite 203, Sparta, NJ 07871
Internet: http://www.marketgauge.com/littlebigview/
Email: info@MarketGauge.com (tech support)
Phone: 888 241-3060, 973 729-0485
Product: Actionable market data and educational material using end-of-day data
Price: Free
Sometimes, if you are hesitant about committing to using a product, it’s nice to get a small dose of the products and services offered by a company. Similarly, it’s nice to get a small dose of what is going on in the markets. Little Big View, one of the products available from MarketGauge, meets both these needs in a way I think all traders will benefit from..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-46-48-product-review-little-big-view-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-46-48-product-review-little-big-view-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-46-48-product-review-little-big-view-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov335trti4,d,"{""minimum-quantity"":""1"",""path"":""ch11n2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:11 (50–55): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Vitali Apirine’s article in this issue, “Average Percentage True Range.” Here, we present the November 2015 Traders’ Tips code with possible implementations in various software.
Code for MetaStock is already provided in Apirine’s article in this issue. Meanwhile, the code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-50-55-traders-tips-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-50-55-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-50-55-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33610pr,d,"{""minimum-quantity"":""1"",""path"":""ch11n2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:11 (60–62): The 10 Principles Of Successful Trading by Solomon Chuama"",""caption-linebreaks"":""The 10 Principles Of Successful Trading by Solomon Chuama
In spite of the available resources to help traders trade successfully, a majority of traders still lose money. Here, we look at why that may be the case and how to rectify it.
To achieve trading success, you need to be conscious of the basic trading rules. Otherwise, it’s easy to lose focus. In today’s trading world, resources abound that hold the promise of helping traders make more money. You can find successful traders who pass on some of their knowledge to newbie traders. There are many systems that claim to provide winning trading signals. And let’s not forget the webinars, trading rooms, and social media sites that promise to help traders trade successfully. In spite of all these resources, the percentage of winners lies close to 10%. Does that suggest that traders do not possess the basic trading rules, or that their mindset is not developed to follow trading rules? In this article, I will examine the trading rules that I believe all traders should follow..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-60-62-the-10-principles-of-successful-trading-by-solomon-chuama-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-60-62-the-10-principles-of-successful-trading-by-solomon-chuama-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-60-62-the-10-principles-of-successful-trading-by-solomon-chuama-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov337leto3,d,"{""minimum-quantity"":""1"",""path"":""ch11n2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:11 (7): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
MARKET FORECAST
Editor,
I really enjoyed Koos van der Merwe’s article in the September 2015 issue, “Where Is The Market Heading?” I know Merwe has 40 years of experience in studying the stock market, and in my opinion, his forecast was spot on..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-7-letters-to-s-c-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-7-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-7-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov338siit,d,"{""minimum-quantity"":""1"",""path"":""ch11n2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:11 (8–10): Simplify It by James E. Rich with John B. Rich"",""caption-linebreaks"":""Simplify It by James E. Rich with John B. Rich
Trading the financial markets doesn’t need to be complicated. Here’s a look at how two veteran traders realized that applying a simple, logical system is all you need to reap profits from the markets.
Most market technicians have tested every indicator known to mankind along with a combination of those indicators in search of a winning strategy or possibly even the holy grail. What technician has not discovered that a 60,3,3 stochastic provides a perfect signal with a particular stock, or that a 12,26,9 MACD works perfectly with another given stock?
THE FEWER, THE BETTER
When my brother, John Rich, introduced me to technical analysis back in the 1960s, charts were laboriously drawn by hand, and support, resistance, trendlines, and moving averages were among the only indicators..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-8-10-simplify-it-by-james-e-rich-with-john-b-rich-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-8-10-simplify-it-by-james-e-rich-with-john-b-rich-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-11-8-10-simplify-it-by-james-e-rich-with-john-b-rich-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov3311646,d,"{""minimum-quantity"":""1"",""path"":""ch12d2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:12 (12–14, 16–18, 46): Trading The Loonie by Markos Katsanos"",""caption-linebreaks"":""Trading The Loonie by Markos Katsanos
Here’s a trading system that exploits the strong correlation between the Canadian dollar and crude oil.
The Canadian dollar (affectionately referred to as “the loonie” by traders because of the appearance of a loon, a bird common in Canada, on the back of the Canadian one-dollar coin), like the Australian dollar, the New Zealand dollar, the South African rand, and the Norwegian krone, is regarded as a commodity currency because of the sizable role of commodity production in the Canadian economy. In the case of Canada, the price of oil seems to be especially significant in currency moves..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-12-14-16-18-46-trading-the-loonie-by-markos-katsanos-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-12-14-16-18-46-trading-the-loonie-by-markos-katsanos-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-12-14-16-18-46-trading-the-loonie-by-markos-katsanos-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov331fufo,d,"{""minimum-quantity"":""1"",""path"":""ch12d2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:12 (19): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
GLENCORE COLLAPSE: BUYING OPPORTUNITY IN COMMODITIES?
Is the collapse in Glencore a signal that there is more pain to come in the commodity sector?
No, Glencore has captured the attention of the media because it’s the largest commodity trading company on the planet, but that doesn’t mean it’s a bellwether for the underlying commodity markets..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-19-futures-for-you-by-carley-garner-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-19-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-19-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov332trfi,d,"{""minimum-quantity"":""1"",""path"":""ch12d2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:12 (20–23): Trading First-Hour Breakouts by Ken Calhoun"",""caption-linebreaks"":""Trading First-Hour Breakouts by Ken Calhoun
It is well known that as soon as the markets open, there’s a significant amount of trading activity, much of which is strong breakout patterns. How do you identify which of these patterns are strong enough to continue and generate successful trades? Find out here.
Many of the strongest breakout trade entries can be found using specific chart patterns that you can see during the first hour of each trading day. When you’re looking for successful breakout trades, it helps to visually scan for these technical trade setups during the market open for potential swing and intraday trades.
One reason these patterns work so well is because institutional traders enter high-volume “market on open” client orders during the first few minutes of each trading session, which leads to rapid breakouts that you can capitalize on..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-20-23-trading-first-hour-breakouts-by-ken-calhoun-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-20-23-trading-first-hour-breakouts-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-20-23-trading-first-hour-breakouts-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33233ga,d,"{""minimum-quantity"":""1"",""path"":""ch12d2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:12 (24–26, 33): Gap Trading by Kevin Luo"",""caption-linebreaks"":""Stocks & Commodities V. 33:12 (24–26, 33): Gap Trading by Kevin Luo
Do exhaustion gaps really fade? Here’s a study that creates and tests an exhaustion gap prediction technique using two measurable factors: stock trend and gap size.
A price gap is a price range in which no trading takes place. An upside price gap occurs when today’s price range is above yesterday’s high price. A downside price gap occurs when today’s price range is below yesterday’s low price. It is easy to spot price gaps on bar charts. According to the statistics from this study, the typical US stock generates 18 price gaps on average, annually. The average gap sizes are 1.62% for upside gaps and 1.72% for downside gaps..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-24-26-33-gap-trading-by-kevin-luo-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-24-26-33-gap-trading-by-kevin-luo-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-24-26-33-gap-trading-by-kevin-luo-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33230ch,d,"{""minimum-quantity"":""1"",""path"":""ch12d2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:12 (28, 30–33): Interview: Charting Your Way With Steve Bigalow by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Charting Your Way With Steve Bigalow by Jayanthi Gopalakrishnan
Stephen W. Bigalow has more than 40 years of investment experience, including eight years as a stockbroker with major Wall Street firms: Kidder, Peabody & Company, Cowen And Company, and Oppenheimer & Company. This was followed by 15 years of commodity trading, overlapped with 12 years of real estate investing. He holds a business and economics degree from Cornell University, and has lectured at Cornell and at many private educational investment functions over the past 20 years.
Bigalow has advised professional traders, money managers, mutual funds, and hedge funds, and is recognized by many in the trading community as the “professional’s professional.” He is an affiliate of the Market Technicians Association (MTA, a not-for-profit association of professional technical analysts) and a member of AAPTA, the American Association of Professional Technical Analysts.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Stephen Bigalow on September 10, 2015 about the value of candlestick charts.
Steve, tell us about how you got interested in the financial markets and especially in candlestick charting.
My real interest started when I was in college, but I was always interested in investing. At a young age, my dad bought me one share of Eazor Express, which was a trucking company in the northeast. The stock split two-for-one, so I then had two shares of the company. I’d watch the stock every single day in the financial section of the newspaper..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-28-30-33-charting-your-way-with-steve-bigalow-by-jayanthi-gopalakrishnan-22.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-28-30-33-interview-charting-your-way-with-steve-bigalow-by-jayanthi-gopalakrishnan-12.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-28-30-33-interview-charting-your-way-with-steve-bigalow-by-jayanthi-gopalakrishnan-13.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33230in1,d,"{""minimum-quantity"":""1"",""path"":""faarfr207"",""ysw-page-title"":""Stocks & Commodities V. 33:12 (28, 30–33): Interview: Charting Your Way With Steve Bigalow by Jayanthi Gopalakrishnan"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-28-30-33-interview-charting-your-way-with-steve-bigalow-by-jayanthi-gopalakrishnan-9.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-28-30-33-interview-charting-your-way-with-steve-bigalow-by-jayanthi-gopalakrishnan-10.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-28-30-33-interview-charting-your-way-with-steve-bigalow-by-jayanthi-gopalakrishnan-11.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov333trmu,d,"{""minimum-quantity"":""1"",""path"":""ch12d2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:12 (34–37): Trading Multiple Stocks by Norman J. Brown"",""caption-linebreaks"":""Trading Multiple Stocks by Norman J. Brown
Here’s a switching technique that further enhances the annual return associated with “one rank” performance.
In my previous article, “Combining Persistence With Strength,” published in the August 2015 issue of Technical Analysis of STOCKS & COMMODITIES, I showed that you can achieve an enhanced annual return (Ann) for stocks if you trade stocks, one at a time, that exhibit persistence (that is, short-term memory), a technique I termed “OR.” I have had a number of articles published in S&C that discuss the advantages of that approach. In my August 2015 article, the OR Ann is considerably improved if you trade two stocks using the trading technique OR, including a relative strength (RS) term (designating the composite as “ORRS”) by using an if/and command that is easily implemented in Excel. In this article, I expanded the ORRS concept from two stocks to 10 persistent-type stocks and found a dramatic improvement in Ann by adding those stocks into the ORRS process, one at a time, to assess the optimum number of funds..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-34-37-trading-multiple-stocks-by-norman-j-brown-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-34-37-trading-multiple-stocks-by-norman-j-brown-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-34-37-trading-multiple-stocks-by-norman-j-brown-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov333isav,d,"{""minimum-quantity"":""1"",""path"":""ch12d2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:12 (38–39): Is The Average Analyst Average-Aware? by John Cameron"",""caption-linebreaks"":""Is The Average Analyst Average-Aware? by John Cameron
Such a simple term, yet easy to misinterpret. Here, we clarify the differences between mean, median, and mode.
Technical analysts should be aware that the mean is not the only average employed in this field. The point & figure “average” connects column medians. Ichimoku clouds are also based on medians. There are many more examples.
To most, the word “average” is the usual way of expressing a central tendency, which is itself described in many ways: a typical value, a representative value, a central value, one value to describe a set of data. The last is the clearest. The one that is least immediately clear is the central value, as it is shorthand for the central or middle value in a frequency distribution of a set of values. When put this way, it is a definition of one of the three ways of finding a central tendency..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-38-39-is-the-average-analyst-average-aware-by-john-cameron-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-38-39-is-the-average-analyst-average-aware-by-john-cameron-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-38-39-is-the-average-analyst-average-aware-by-john-cameron-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334exyo5,d,"{""minimum-quantity"":""1"",""path"":""ch12d2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:12 (40–41): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
NONDIRECTIONAL TRADES: STRADDLING THE MOVES
When you’re making a decision on buying a call or put option, trying to pick direction can cause confusion, which delays your decision, and by the time you decide, the stock has already moved and you miss out on the trade. How would you like a strategy that allows you to place a trade that doesn’t care which way the stock moves, just so long as it moves?
A nondirectional trade has a slight disadvantage over a directional trade in that the cost of the trade will be higher than with the directional long option trade, but it does offer more of a directional advantage in terms of allowing the stock to make a move higher or lower, which gives it a chance to profit no matter which way it eventually goes..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-40-41-explore-your-options-by-tom-gentile-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-40-41-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-40-41-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334quva,d,"{""minimum-quantity"":""1"",""path"":""ch12d2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:12 (42–44): Quick-Scan: VantagePoint 9.0 by Sunny J. Harris"",""caption-linebreaks"":""Quick-Scan: VantagePoint 9.0 by Sunny J. Harris
VANTAGEPOINT 9.0
Market Technologies, LLC
5807 Old Pasco Road, Wesley Chapel, FL 33544
Internet: http://www.tradertech.com
Phone: 813 973-0496
Product: Market forecasting software
Price: Starting from $2,900
I love to try out new software, so when I was asked to review the newest release of VantagePoint, I jumped at the chance. In 2011, I reviewed VantagePoint release 8.6 and was greatly impressed by the capabilities of the software. Here, I’m going to take a look at the new features and measure the performance and predictive accuracy of this new release..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-42-44-quick-scan-vantagepoint-9-0-by-sunny-j-harris-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-42-44-quick-scan-vantagepoint-9-0-by-sunny-j-harris-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-42-44-quick-scan-vantagepoint-9-0-by-sunny-j-harris-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334qaby3,d,"{""minimum-quantity"":""1"",""path"":""ch12d2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:12 (45–46): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
TO RAISE OR NOT TO RAISE
What would happen if the Federal Reserve raised interest rates? Who or what will be impacted the most?
There has been a considerable amount of time devoted in the media to the subject of whether the Federal Reserve (the “Fed”) should raise rates. The big question I have is not should they but can they..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-45-46-q-a-by-rob-friesen-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-45-46-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-45-46-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov334trti5,d,"{""minimum-quantity"":""1"",""path"":""ch12d2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:12 (49–55): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Markos Katsanos’s article in this issue, “Trading The Loonie.” Here, we present the December 2015 Traders’ Tips code with possible implementations in various software.
Code for MetaStock is already provided in Katsanos’s article by the author. Subscribers will also find the same code at the Subscriber Area of our website, www.Traders.com. Presented here is an overview of possible implementations for other software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-49-55-traders-tips-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-49-55-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-49-55-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov335bofo8,d,"{""minimum-quantity"":""1"",""path"":""ch12d2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:12 (58): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
The Ruff Guide To Trading: How To Make Money
Systematic Trading
The Wealth Dragon Way: The Why, The When And The How To Become Infinitely Wealthy
Financial Regulation And Compliance: How To Manage Competing And Overlapping Regulatory Oversight + website"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-58-books-for-traders-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-58-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-58-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov336alyo,d,"{""minimum-quantity"":""1"",""path"":""ch12d2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:12 (60–62): Align Your Analysis & Trading Persona by Tushar Chande"",""caption-linebreaks"":""Align Your Analysis & Trading Persona by Tushar Chande
We are all different. As a result, we each have our comfort zones in which we tend to perform better. But how do you define that comfort zone? We take a look.
Each one of us has a comfort zone as a trader, and to be successful, we need to stay within that comfort zone, or know ourselves well enough that we can extend the envelope of our comfort zone. The trouble is that it’s easy to give an overly broad definition of our comfort zone, when actually we should be giving a narrow, specific one. For example, you can define your comfort zone by expected return, depth of drawdown, and length of drawdown. Ideally, we will align our analysis and trading persona as one of the keys to success..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-60-62-align-your-analysis-trading-persona-by-tushar-chande-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-60-62-align-your-analysis-trading-persona-by-tushar-chande-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-60-62-align-your-analysis-trading-persona-by-tushar-chande-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33747le,d,"{""minimum-quantity"":""1"",""path"":""ch12d2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:12 (7, 47): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
PAGET 16-YEAR CYCLE
Editor,
I really enjoyed the September 2014 article in S&C, “Looking At Cycles,” by Koos van der Merwe. I have been using the Paget 16-year cycle template that he provided in the article. Based on that, point 1 was expected in October 2015, since 2016 is a leap year. However, in van der Merwe’s September 2015 article in S&C, “Where Is The Market Heading?” he has 2018 as the starting point. Is 2016 the real starting point, since it is a leap year?
In addition, I have used the du Toit method of Gann lines with success.I would like to tell van der Merwe to keep up the great work. I really enjoy his articles.
Dom"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-7-47-letters-to-s-c-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-7-47-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-7-47-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov338anpr,d,"{""minimum-quantity"":""1"",""path"":""ch12d2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:12 (8–11): Analyzing Price Action In The S&P 500 by Adel Weng, PhD"",""caption-linebreaks"":""Analyzing Price Action In The S&P 500 by Adel Weng, PhD
What will the market do the next day? Short-term traders look for some hints that suggest which way prices will move. Here’s one approach you can use to help determine what the next trading day’s bias will be.
It is widely believed that price movements in the stock market, over time, tend to be repetitive. The constant daily actions of buying and selling by market participants, whether by humans or algorithms, can be manifested in price patterns. Short-term directional traders who actively trade the emini index futures contracts are always analyzing these end-of-day (EOD) price patterns for any clues or hints, trying to determine whether the market will be up or down the next day. Any insights on whether there is an upward or downward bias in the close and/or in the direction of its intraday price range can provide the trader with profitable opportunities to go long or short along the market bias and exit the trade on the same day..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-8-11-analyzing-price-action-in-the-s-p-500-by-adel-weng-phd-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-8-11-analyzing-price-action-in-the-s-p-500-by-adel-weng-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-12-8-11-analyzing-price-action-in-the-s-p-500-by-adel-weng-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov331dibu,d,"{""minimum-quantity"":""1"",""path"":""ch13bis203"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:13 (14–17): Dissecting Buffett’s Macro Buy-Sell Indicator by Matt Blackman"",""caption-linebreaks"":""Dissecting Buffett’s Macro Buy-Sell Indicator by Matt Blackman
Markets Getting Toppy?
When it comes to investing, the Oracle of Omaha usually plays his cards close to his chest. But here is one favorite indicator that he’s been willing to share.
In an article I wrote a year ago for Traders.com Advantage titled “Warren’s Best Valuation Measure,” I discussed a macro indicator that Buffett uses to help him decide when stocks are over- or undervalued. But after a close look at the data in the article, it was obvious that further research and observation was necessary.
According to a 2001 Fortune Magazine article (“Warren Buffett On The Stock Market”), Buffett considers US total stock market capitalization to GDP to be “probably the best single measure of where valuations stand at any given moment.”
He had used this ratio at least in part to issue an overall stock market top warning in a speech given in September 1999 (reported on in a November 1999 Fortune Magazine article, “Mr. Buffett On The Stock Market”) and again in January 2009 to start buying stocks again (“Buffett’s Metric Says It’s Time To Buy,” Fortune Magazine). But determining exactly how useful it is as a leading macro technical stock market indicator requires a much closer examination of the charts and data."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-13-14-17-dissecting-buffett-s-macro-buy-sell-indicator-by-matt-blackman-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-13-14-17-dissecting-buffett-s-macro-buy-sell-indicator-by-matt-blackman-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-13-14-17-dissecting-buffett-s-macro-buy-sell-indicator-by-matt-blackman-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov331sqwa,d,"{""minimum-quantity"":""1"",""path"":""ch13bis203"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:13 (18–23): Squares & Waves by Pauline Novak-Reich"",""caption-linebreaks"":""Squares & Waves by Pauline Novak-Reich
Historical Elegance
What do Gann’s square of nine and the Elliott wave theory tell us about the S&P 500 index? We’ll explore.
Are the world’s indexes about to turn south for the fourth time since the 2007–2011 global financial crisis (GFC) and Eurozone slumps? W.D. Gann’s square of nine and R.N. Elliott’s wave theory may help shed light on what the future holds. Gann taught us that the behavior of the market is subject to the time factor and the law of vibration, while Elliott postulated that money markets unfold in a fixed eight-wave pattern. Bull markets advance in three motive waves, each followed by a downward correction. Bear markets decline in a zigzag A-B-C pattern, in which waves A and C are motive and the B wave between them corrects upward.
In this article I’ll focus on the S&P 500 index’s B wave—the wildcard of the 2007–2015 bear market rally that penetrated the October 31, 2007 peak of primary wave [V]. The amalgamation of Gann and Elliott into one school of thought highlights the geometric mapping of each of the eight waves of the Elliott wave cycle onto the Gann square at 180º or 360º angles. Given that markets move only up or down, only two angles determine the trend."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-13-18-23-squares-waves-by-pauline-novak-reich-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-13-18-23-squares-waves-by-pauline-novak-reich-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-13-18-23-squares-waves-by-pauline-novak-reich-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov332repa,d,"{""minimum-quantity"":""1"",""path"":""ch13bis203"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:13 (24–29): Recognizing Patterns & Relations in Candlesticks by Martha Stokes, CMT"",""caption-linebreaks"":""Recognizing Patterns & Relations in Candlesticks by Martha Stokes, CMT
Connect The Dots
There’s more to chart patterns than merely identifying them. Find out how you can see relationships between candlestick bars and patterns to better assess what price is likely to do.
Pattern-recognition skills are a trader’s most important chart analysis asset. Since the introduction of Japanese candlestick charts to the West in the late 1980s, they have become the most popular and most-used price plot style by both retail traders and professionals, and with good reason. Candlesticks are the easiest of all the chart styles to read and recognize. However, just learning the basic candlestick patterns taught in numerous books, DVDs, and articles is not going to make a trader consistently successful in the stock market. What can help is going beyond the basics of the candlestick books and patterns to apply a technique I named Spatial Pattern Recognition Skills (SPRS), which I will describe here. This technique can provide far more in-depth analysis quickly and accurately."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-13-24-29-recognizing-patterns-relations-in-candlesticks-by-martha-stokes-cmt-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-13-24-29-recognizing-patterns-relations-in-candlesticks-by-martha-stokes-cmt-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-13-24-29-recognizing-patterns-relations-in-candlesticks-by-martha-stokes-cmt-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33344201,d,"{""minimum-quantity"":""1"",""path"":""faarfr207"",""ysw-page-title"":""Stocks & Commodities V. 33:13 (30–37, 44): 2015 Readers’ Choice Awards by Technical Analysis, Inc."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-13-30-37-44-2015-readers-choice-awards-by-technical-analysis-inc-34.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-13-30-37-44-2015-readers-choice-awards-by-technical-analysis-inc-35.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-13-30-37-44-2015-readers-choice-awards-by-technical-analysis-inc-36.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov3334420,d,"{""minimum-quantity"":""1"",""path"":""ch13bis203"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:13 (30–37, 44): 2015 Readers’ Choice Awards by Technical Analysis, Inc."",""caption-linebreaks"":""2015 Readers’ Choice Awards by Technical Analysis, Inc.
We are pleased to present the Technical Analysis of STOCKS & COMMODITIES magazine 2015 Readers’ Choice Awards (RCA). Each year, we put before our readers a ballot of products and services related to technical analysis and trading. The following pages present the products and services you and your peers chose this year as your favorites.
The Readers’ Choice Awards begins each year with a list of products gathered by the editors of STOCKS & COMMODITIES, with space for write-in votes (given that our list doesn’t claim to be complete). Then, to find out what our readers find to be the most useful for their trading, we ask them to choose their favorite products or the ones they find most useful from various categories by going to our website, Traders.com, and filling out the survey there. After that, we compile the results, just in time for the Bonus Issue you hold in your hands.
Products are categorized by their primary purpose. Just because a service or product is not listed does not necessarily mean that the product does not have features germane to the category. In addition, some categories are divided by cost so that the comparisons can be made on a more level playing field.
The winners in the Readers’ Choice Awards are almost always the dominant players in their niche, and rightfully so. You may have special needs for your trading, however, so you should keep in mind those products that are not the big names in the category of your interest before you make your final decision. The RCA is designed to be an aid for you when you are deciding on which of the numerous products and services currently available to use for your trading and investing. With that in mind, we think you’ll find the Readers’ Choice a terrific guide to products and services that you’ll be interested in."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-13-30-37-44-2015-readers-choice-awards-by-technical-analysis-inc-31.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-13-30-37-44-2015-readers-choice-awards-by-technical-analysis-inc-37.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-13-30-37-44-2015-readers-choice-awards-by-technical-analysis-inc-38.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33340in,d,"{""minimum-quantity"":""1"",""path"":""ch13bis203"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:13 (38, 40–43): Interview: Trading The News With Adam Button by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Trading The News With Adam Button by Jayanthi Gopalakrishnan
Forex With A View
Adam Button is the managing editor of ForexLive, a website devoted to foreign exchange news and analysis. He was previously the chief currency strategist at XForex and has also worked with Intermarket Strategy. Button believes there’s an edge in knowing every tidbit of news. He was formerly the head of the markets team at the Canadian Economic Press and is a graduate of Ryerson University. He lives in Montreal. He frequently writes and teaches about technical analysis, economic data, and intermarket dynamics. He was awarded the Forex Person of the Year 2014 by FXStreet.com.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Adam Button on January 20, 2015 about the importance of being in tune with the news when trading the forex market.
Why do you think the SNB made that move? Isn’t it unusual for a central bank to make an unexpected surprise announcement to place a cap on its currency?
Yes, it absolutely caught the market off-guard. You won’t find anyone who had warned about the event happening. Of course, in hindsight, some of the signs were there. If you look a the chart of the euro/Swiss franc, you’ll see that it has been in a free fall (Figure 1). And the European Central Bank (ECB) right now is on the verge of unprecedented monetary stimulus, which will cause further weakness in the euro. The size of the Swiss currency reserves was at 80% of GDP. So the signs may have been there, and two days before the decision, the SNB deputy said they were a cornerstone of the monetary policy."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-13-38-40-43-interview-trading-the-news-with-adam-button-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-13-38-40-43-interview-trading-the-news-with-adam-button-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-13-38-40-43-interview-trading-the-news-with-adam-button-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov33812us,d,"{""minimum-quantity"":""1"",""path"":""ch13bis203"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 33:13 (8–10, 12–13): The US Long Wave by Mark Rivest"",""caption-linebreaks"":""The US Long Wave by Mark Rivest
Surf’s Up
History plays an important role. Can 224 years of US economic history predict the stock market for the next seven years?
Since the 1970s there have been many predictions of a coming economic collapse that would be larger than the Great Depression. We did experience a stock market crash in 1987 and some economic calamities in the early 2000s, but nothing approaching the degree of what happened in the 1930s. The answer to why a mega economic collapse hasn’t happened and most likely won’t happen can be discovered in the long-term US economic cycle.
THE EBB & FLOW
In 1934, Ralph Nelson Elliott made an intense study of stock prices and discovered a rhythmic pattern of waves. He called this phenomenon the wave principle, now known as Elliott wave theory. Elliott found that the pattern was not limited to just the stock market. He found the pattern in commodities, steel output, and patent applications. In addition, each five-wave pattern is a component of the next larger five-wave pattern."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-13-8-10-12-13-the-us-long-wave-by-mark-rivest-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-13-8-10-12-13-the-us-long-wave-by-mark-rivest-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-33-13-8-10-12-13-the-us-long-wave-by-mark-rivest-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov341dear,d,"{""minimum-quantity"":""1"",""path"":""ch1j207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:01 (12–17): Decision Areas In Daytrading by Peter Hill"",""caption-linebreaks"":""Decision Areas In Daytrading by Peter Hill
It’s impossible to know when the market will suddenly turn and move in another direction. But there are tools you can apply to your charts to identify those probable turning points. Here’s a simple technique any intraday trader can use.
A trader with a small account is in a precarious situation judging when to take a position or to stay out of the action. He is normally a person who wants to be trading in the markets, who is anxious to be involved and often thinks more of the reward than the risk. This is the reason that so many people who try to scalp—that is, take intraday positions for short periods trying to capture a few points during the day—so often come to grief. Trying to guess which way the market will go from one minute to another is a perilous adventure. Often, you can be right in one time frame and wrong in another, and if you’re wrong in the smaller time frame, it may be too late for you by the time you’re justified in the longer term..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-12-17-decision-areas-in-daytrading-by-peter-hill-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-12-17-decision-areas-in-daytrading-by-peter-hill-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-12-17-decision-areas-in-daytrading-by-peter-hill-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov341alby1,d,"{""minimum-quantity"":""1"",""path"":""faarfr208"",""ysw-page-title"":""Stocks & Commodities V. 34:01 (18–21): Aliasing by John F. Ehlers"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-18-21-aliasing-by-john-f-ehlers-35.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-18-21-aliasing-by-john-f-ehlers-36.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-18-21-aliasing-by-john-f-ehlers-37.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov341alby,d,"{""minimum-quantity"":""1"",""path"":""ch1j207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:01 (18–21): Aliasing by John F. Ehlers"",""caption-linebreaks"":""Aliasing by John F. Ehlers
Since you are likely using sampled data when trading, there is a chance that there could be some distortions in the data. Here’s what you can do to avoid those distortions.
I imagine that most traders consider the price data they use for analysis to be a continuous function. Nothing could be further from the truth. And, depending on your trading style, the impact of this assumption can range from trivial to dramatic. The fact is that the data is sampled data. The sample rate is once per day on daily bars, once per hour on hourly bars, and so on. It doesn’t matter if you average the high, low, and close; you still only have one sample per day on daily bars.
One impact of sampled data is that it can lead to aliasing. In my youth, the old cowboy movies had a sample rate of only 16 frames per second, letting the eye integrate those individual still photographs to produce motion, albeit with a little flicker. Aliasing at this slow sample rate made the wagon wheels look like they were turning backwards, and the effect was really weird. Aliasing can also produce some weird effects on your market data..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-18-21-aliasing-by-john-f-ehlers-28.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-18-21-aliasing-by-john-f-ehlers-33.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-18-21-aliasing-by-john-f-ehlers-34.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov342trvs,d,"{""minimum-quantity"":""1"",""path"":""ch1j207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:01 (22–24): Trading Vs. Forecasting: What’s The Difference? by Tyler Yell, CMT"",""caption-linebreaks"":""Trading Vs. Forecasting: What’s The Difference? by Tyler Yell, CMT
Trading is about recognizing present opportunities where the risk-to-reward is favorable. Forecasting, on the other hand, is outcome dependent. Find out how you can use both and take advantage of those opportunities.
Most of us are conditioned to make all our trading decisions based on what we see on the hard right side of a chart. When you look at a chart, price movement that occurred in the past may look like it had only one likely outcome. But when you look at a chart in real time, you don’t know what the outcome will be. There could have been multiple scenarios, and credible people will argue for price to move in completely different paths from a specific point.
Price charts and potential outcomes often play cruel tricks on the brain. Trading, on the surface, is similar to a casino in that it informs you of the prize of a low-probability outcome while the quantitative edge that the casino holds is purposely hidden from you..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-22-24-trading-vs-forecasting-what-s-the-difference-by-tyler-yell-cmt-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-22-24-trading-vs-forecasting-what-s-the-difference-by-tyler-yell-cmt-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-22-24-trading-vs-forecasting-what-s-the-difference-by-tyler-yell-cmt-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov342hibr1,d,"{""minimum-quantity"":""1"",""path"":""faarfr208"",""ysw-page-title"":""Stocks & Commodities V. 34:01 (26–29): High-Volume Breakouts by Ken Calhoun"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-26-29-high-volume-breakouts-by-ken-calhoun-36.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-26-29-high-volume-breakouts-by-ken-calhoun-37.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-26-29-high-volume-breakouts-by-ken-calhoun-38.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov342hibr,d,"{""minimum-quantity"":""1"",""path"":""ch1j207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:01 (26–29): High-Volume Breakouts by Ken Calhoun"",""caption-linebreaks"":""High-Volume Breakouts by Ken Calhoun
In this final article in a series we’ve been presenting on breakout trading strategies from this professional daytrader and educator, we look at the role that volume and price-action breakout patterns play in confirming entry signals.
As many traders know, the two most important technical trading signals are price and volume. By combining price-action breakout patterns with specific volume confirmation signals, you can identify strong trading entries as they’re moving to new highs.
You can spot high-volume breakouts whenever volume increases significantly—that is, at least 30% higher than their average trading volume—along with a move up in price. These are important because strong volume indicates institutional buying is at work, which can help you find good entries. In this article, I’ll show you how to find high-volume breakout patterns when you’re entering your trades..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-26-29-high-volume-breakouts-by-ken-calhoun-31.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-26-29-high-volume-breakouts-by-ken-calhoun-39.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-26-29-high-volume-breakouts-by-ken-calhoun-40.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov343exyo,d,"{""minimum-quantity"":""1"",""path"":""ch1j207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:01 (30–31): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
TO STRADDLE OR NOT TO STRADDLE
Why not just buy a straddle into an earnings report, attempting to profit on either side?
While this sounds like a great idea, it is not always the case. This month, I want to review straddles but in particular, I want to show you when not to use one. The straddle is a nondirectional strategy in which you buy an at-the-money call and put with the same strike price and expiration date. The combined cost of this option strategy is double what it would cost to simply take a side, but it’s also a nondirectional view. This sounds simple and I think this covers the basics of it. I’ll show you an example of buying a straddle just before earnings, with none other than one of the most popular companies in the world, Amazon.com, Inc. (AMZN)..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-30-31-explore-your-options-by-tom-gentile-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-30-31-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-30-31-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34334de,d,"{""minimum-quantity"":""1"",""path"":""ch1j207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:01 (32, 34–37): Developing Strategies With Kevin Davey by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Developing Strategies With Kevin Davey by Jayanthi Gopalakrishnan
Kevin J. Davey is a professional trader and systems developer. He is the author of Building Winning Algorithmic Trading Systems: A Trader’s Journey From Data Mining To Monte Carlo Simulation To Live Trading. An aerospace engineer and MBA by background, Davey has been an independent trader for over 25 years. Although he has had a great deal of recent success, many of his early years of trading were met with failure. Bloodied but not defeated, Davey spent the next few years researching, reading, and otherwise devouring all he could about trading. That legwork paid off in a worldwide futures trading contest, in which Davey came in first place once and second place twice during the years 2005–2007.
Currently, Davey trades full-time, writes for trading publications, and divulges many of his trading practices in his Strategy Factory workshop. He also consults with private individuals, hedge fund traders, and CTAs when he is not developing new strategies for his own personal account.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Kevin Davey via phone on October 30, 2015 about how a retail trader can trade algorithmically.
Kevin, tell us a little bit about yourself and how you got interested in the financial markets. From what I’ve read about you, you have had quite an interesting journey.
I started out the way most people start out—I got a piece of direct mail. This was about 25 years ago or so, and that piece of mail stated how much money I could make trading commodities. That got me hooked and even though that particular method was garbage, I was able to go on from there..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-32-34-37-developing-strategies-with-kevin-davey-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-32-34-37-developing-strategies-with-kevin-davey-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-32-34-37-developing-strategies-with-kevin-davey-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34341fa,d,"{""minimum-quantity"":""1"",""path"":""ch1j207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:01 (38–39, 41): Failing Successfully by Stella Osoba, CMT"",""caption-linebreaks"":""Failing Successfully by Stella Osoba, CMT
We’re groomed to think of losses as a sign of failure, which is why trading is difficult. But experiencing losses is part of a trader’s life and is something you have to accept. Here’s how to approach the idea in a healthy way.
\""To others, being wrong is a source of shame; to me, recognizing my mistakes is a source of pride. Once we realize that imperfect understanding is the human condition, there is no shame in being wrong, only in failing to correct our mistakes.\""—George Soros
We live in a society where the cult of success is worshipped. But what is often hidden are the failures that go into creating that success. Failure is often not understood and cultivated as a process that is integral to the creation of exceptional results. Many of those who come to trading have succeeded in their day jobs, and they expect success to come to them in trading in much the same way it came in their other endeavors. But often this is not the case, for nowhere is it more essential to develop a strategy for building mental strength than it is in trading..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-38-39-41-failing-successfully-by-stella-osoba-cmt-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-38-39-41-failing-successfully-by-stella-osoba-cmt-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-38-39-41-failing-successfully-by-stella-osoba-cmt-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344qaby,d,"{""minimum-quantity"":""1"",""path"":""ch1j207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:01 (40–41): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
PAIR TRADING: LOOK FOR CATALYSTS
In the land of diminishing pair returns, grab some catalysts for your spreads!
We live in an instant-fix environment. If you’ve got a problem, you want an instant solution. This is often carried into the trading world. You want access to information so that your computers can crunch data and find those statistical anomalies. The computer does all the work and spits out the results you are searching for. In this machine age, traders often forgo the heavy lifting implied by quality time spent researching, reflecting, and contemplating the current and future economic landscape. Instead, they want a formula or a magic pill for profits they think automation can provide.
I am certainly not against the computer age, but I do have an abundance of street smarts gained from years of trading, working with other traders, and observing numerous statistically significant samples. I understand how pairs behave in good times, bad times, and most of the time. Traders will go after pair opportunities, but this can also end up increasing risks to their capital. Attempting to pick up pennies in front of a steam roller, they make a dime, make another, and then lose a dollar..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-40-41-q-a-by-rob-friesen-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-40-41-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-40-41-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344prre,d,"{""minimum-quantity"":""1"",""path"":""ch1j207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:01 (42–44): Product Review: TC2000 Version 16 by James E. Rich"",""caption-linebreaks"":""Product Review: TC2000 Version 16 by James E. Rich
WORDEN BROTHERS, INC.
PO Box 1139, Wilmington, NC 28402
Phone: 800 776-4940, international: 1 919 408-0542
Email: support@TC2000.com
Internet: www.TC2000.com
Product: Stock market charting software
Requirements: Windows-based PC, or Mac with Parallels Desktop
Price: Basic software and data services start at $9.99/month for the Silver edition; $29.99/month for TC2000 Gold; $89.99/month for Platinum. Real-time data and LiveBriefs by MT Newswires available for additional fees. Savings are available via yearly payment options.
Worden Brothers’ new TC2000 Version 16 software was originally developed as a white-label trading platform for TC2000 Brokerage, Inc., the company’s new affiliated online brokerage. When the finished product exceeded all of their expectations, brothers Chris and Peter Worden and their staff felt it only fair to release the software to the entire TC2000 family of users, whether they used TC2000 Brokerage or just continued to use the software for analysis..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-42-44-product-review-tc2000-version-16-by-james-e-rich-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-42-44-product-review-tc2000-version-16-by-james-e-rich-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-42-44-product-review-tc2000-version-16-by-james-e-rich-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344fufo,d,"{""minimum-quantity"":""1"",""path"":""ch1j207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:01 (45): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
COMMODITIES: CAN PRICES GO TO ZERO?
Could a commodity bull with deep enough pockets weather any storm?
The simple answer to that question is an unequivocal yes. If you had unlimited trading capital, an unlimited time horizon, and the sense to mitigate futures market leverage, you could theoretically never lose when trading commodities. This theory is based on the fact that commodity prices, although they can get very cheap, cannot go to zero. In other words, commodities are “goods,” not “bads”; unless something changes dramatically in the way we live, we will always need corn, soybeans, crude oil, natural gas, and so, to some degree..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-45-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-45-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-45-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344trti,d,"{""minimum-quantity"":""1"",""path"":""ch1j207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:01 (46–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is James and John Rich’s article in the November 2015 issue, “Simplify It.” Here, we present the January 2016 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-46-56-traders-tips-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-46-56-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-46-56-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov346bofo,d,"{""minimum-quantity"":""1"",""path"":""ch1j207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:01 (60): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
Trading Psychology 2.0: From Best Practices To Best Processes
The Trade Lifecycle: Behind The Scenes Of The Trading Process, second edition + website
Financial Risk Management: Applications In Market, Credit, Asset And Liability Management And Firmwide Risk
Financial Planning Competency Hand-book, second edition"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-60-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-60-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-60-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov346grli,d,"{""minimum-quantity"":""1"",""path"":""ch1j207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:01 (61–62): The Green Line by Ron Jaenisch"",""caption-linebreaks"":""The Green Line by Ron Jaenisch
Knowing when to exit a trade can work wonders for your trading returns. Here’s one tool that can help you make that critical decision.
It was a very hot day in September and I was at a private lunch meeting with the CEO and CFO of a legal consulting company. They were making the rounds to encourage well-heeled investors to consider investing in their company. Their stock had a high market cap but a low daily turnover, which for most money managers, is a criterion that brings up a caution flag.
I decided to use the opportunity to practice presenting a small piece of what I was working on, one of the many automated techniques used by the technical analysis software that was being built for a family office consortium..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-61-62-the-green-line-by-ron-jaenisch-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-61-62-the-green-line-by-ron-jaenisch-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-61-62-the-green-line-by-ron-jaenisch-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34731le,d,"{""minimum-quantity"":""1"",""path"":""ch1j207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:01 (7, 31): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
IN MEMORY OF DON BRIGHT
Editor,
I enjoyed reading Don Bright’s column each month. He died too young.
Thomas Bulkowski
\nTHANKS FOR YOUR MAGAZINE
Editor,
Your magazine is informative and touches different areas of the industry. I especially enjoy Dirk Vandycke’s and Melvin Dickover’s articles and their approach to the markets and trading..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-7-31-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-7-31-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-7-31-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov348bofi1,d,"{""minimum-quantity"":""1"",""path"":""faarfr208"",""ysw-page-title"":""Stocks & Commodities V. 34:01 (8–11): Bottom Fishing & The Ugly Double Bottom Setup by Thomas Bulkowski"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-8-11-bottom-fishing-the-ugly-double-bottom-setup-by-thomas-bulkowski-33.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-8-11-bottom-fishing-the-ugly-double-bottom-setup-by-thomas-bulkowski-34.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-8-11-bottom-fishing-the-ugly-double-bottom-setup-by-thomas-bulkowski-35.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov348bofi,d,"{""minimum-quantity"":""1"",""path"":""ch1j207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:01 (8–11): Bottom Fishing & The Ugly Double Bottom Setup by Thomas Bulkowski"",""caption-linebreaks"":""Bottom Fishing & The Ugly Double Bottom Setup by Thomas Bulkowski
Profiting from bottom fishing is notoriously difficult, but this setup may help.
Buy low, sell high. How many times have you tried to do that and lost money? Here’s a trading setup for buying stocks making new yearly lows. A shorter phrase for that is bottom fishing. The technique I’ll describe here is not perfect. You can still lose money, perhaps a lot of it, but the setup gives you an indication of how often bottom fishing works. Perhaps you will have ideas on how to improve the setup..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-8-11-bottom-fishing-the-ugly-double-bottom-setup-by-thomas-bulkowski-28.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-8-11-bottom-fishing-the-ugly-double-bottom-setup-by-thomas-bulkowski-36.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-01-8-11-bottom-fishing-the-ugly-double-bottom-setup-by-thomas-bulkowski-37.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov341topt,d,"{""minimum-quantity"":""1"",""path"":""ch2f2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:02 (10–12): Top Three Indicators For Your 2016 Trades (And Beyond) by Joshua Martinez"",""caption-linebreaks"":""Top Three Indicators For Your 2016 Trades (And Beyond) by Joshua Martinez
You’ll have more confidence in the trades you place if you use the right combination of confirming indicators. Need a good set to get started with? Here are three you can use to help get your trading geared up for the new year.
Now that we’ve had our fill of holiday fun and times are slowing back down (as slow as normal is, I suppose), it’s back to looking at charts to find those big trading wins for the new year. I’ve personally been setting up my charts to continue the momentum of last year’s trades and, most important, checking my indicators yet again to make sure I have the perfect combination. As you set up your charts, there are three main indicators I think traders should pay close attention to in 2016 and beyond. I’ll describe the three indicators here and how I use them, but for more details as well as how they’re calculated, see sidebar “The Three Indicators.” The indicators are useful in forex trading but also for stock trading..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-10-12-top-three-indicators-for-your-2016-trades-and-beyond-by-joshua-martinez-28.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-10-12-top-three-indicators-for-your-2016-trades-and-beyond-by-joshua-martinez-36.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-10-12-top-three-indicators-for-your-2016-trades-and-beyond-by-joshua-martinez-37.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov341topt1,d,"{""minimum-quantity"":""1"",""path"":""faarfr208"",""ysw-page-title"":""Stocks & Commodities V. 34:02 (10–12): Top Three Indicators For Your 2016 Trades (And Beyond) by Joshua Martinez"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-10-12-top-three-indicators-for-your-2016-trades-and-beyond-by-joshua-martinez-33.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-10-12-top-three-indicators-for-your-2016-trades-and-beyond-by-joshua-martinez-34.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-10-12-top-three-indicators-for-your-2016-trades-and-beyond-by-joshua-martinez-35.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34126mo1,d,"{""minimum-quantity"":""1"",""path"":""faarfr208"",""ysw-page-title"":""Stocks & Commodities V. 34:02 (13, 26): Moving Average Breakouts by Ken Calhoun"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-13-26-moving-average-breakouts-by-ken-calhoun-33.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-13-26-moving-average-breakouts-by-ken-calhoun-34.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-13-26-moving-average-breakouts-by-ken-calhoun-35.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34126mo,d,"{""minimum-quantity"":""1"",""path"":""ch2f2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:02 (13, 26): Moving Average Breakouts by Ken Calhoun"",""caption-linebreaks"":""Moving Average Breakouts by Ken Calhoun
Welcome to a new column on techniques for active traders. Each month, this daytrader and founder of TradeMastery.com will cover topics such as momentum trading, breakout trading, and other technical analysis–based techniques. This month, you’ll learn an updated trading technique with specific, actionable technical analysis, and you’ll also learn how to identify and manage the trade from start to finish.
TRADING STRATEGY: 100- AND 200-PERIOD MOVING AVERAGE ENTRY
When price action on a 90-day daily candlestick chart breaks out above major moving averages, institutional trading volume usually lifts prices to new highs. You can capitalize on these breakouts by entering your trade once price moves above 100-period and 200-period simple moving average (SMA) lines..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-13-26-moving-average-breakouts-by-ken-calhoun-28.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-13-26-moving-average-breakouts-by-ken-calhoun-36.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-13-26-moving-average-breakouts-by-ken-calhoun-37.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov341prwi,d,"{""minimum-quantity"":""1"",""path"":""ch2f2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:02 (14–18): Profiting With Delta Neutral Positions by Stan Freifeld"",""caption-linebreaks"":""Profiting With Delta Neutral Positions by Stan Freifeld
Trading delta neutral positions is a strategy that is used by professional and nonprofessional traders to produce profits with reduced risk. The idea is to remove the directional component from the position so that profits can be made whether the underlying moves up or down. Here’s how to construct delta neutral positions.
It’s not easy to make money trading, but when trading equities, at least the concept is clear: buy low and sell high, or sell high and buy low. When trading options, you have more alternatives using spreads. It is not unreasonable to buy an option that you expect will lose value and will result in a loss while simultaneously selling an option that you think will lose even more value and will result in a gain. The combination of the gain and loss will yield a net profit on the spread. Oftentimes, an option trader will determine that he can’t accurately predict which way a stock will move and so will want to take the directional risk out of the equation. Employing this strategy is often referred to as delta neutral (DN) trading..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-14-18-profiting-with-delta-neutral-positions-by-stan-freifeld-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-14-18-profiting-with-delta-neutral-positions-by-stan-freifeld-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-14-18-profiting-with-delta-neutral-positions-by-stan-freifeld-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov342hihi,d,"{""minimum-quantity"":""1"",""path"":""ch2f2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:02 (20–26): Higher Highs & Lower Lows by Vitali Apirine"",""caption-linebreaks"":""Higher Highs & Lower Lows by Vitali Apirine
Spotting emerging trends, defining correction periods, and anticipating reversals can benefit your trading in many ways. Here’s a look at a trading system that uses momentum indicators to define trend direction.
The higher high lower low stochastic (HHLLS) is a momentum indicator–based system that helps determine the direction of a trend. It is made up of two separate indicators: the higher high stochastic (HHS) and lower low stochastic (LLS). These two indicators can be used to spot emerging trends, define correction periods, and anticipate reversals. Signals can also be generated by looking for divergences and crossovers. Because the HHLLS is range-bound, it can also be used to identify overbought and oversold levels.
CALCULATION
HHS is based on price highs, while LLS is based on price lows. These two indicators are plotted side by side so they can be easily compared. The default parameter setting is 20 and you’ll notice that the example shown in the sidebar “Calculating HHLLS” is based on 20 days. The MetaStock code for HHS and LLS can be found in the sidebar..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-20-26-higher-highs-lower-lows-by-vitali-apirine-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-20-26-higher-highs-lower-lows-by-vitali-apirine-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-20-26-higher-highs-lower-lows-by-vitali-apirine-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov342fufo,d,"{""minimum-quantity"":""1"",""path"":""ch2f2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:02 (27): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
FINANCIAL DISCLOSURE FOR ACCOUNT HOLDERS: DOES IT GO TOO FAR?
Why do commodity brokerages require clients to disclose financial and employment information?
If you’ve ever filled out a commodity account application, you’ve likely noticed the questions dive quite a bit deeper into your personal life than a similar application would for a typical stock and bond account. As a commodity broker, I often feel the brunt of the frustration that commodity traders express over the practice. Nevertheless, there is a good reason for futures brokers prying into your employment and financial information..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-27-futures-for-you-by-carley-garner-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-27-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-27-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov342whyd,d,"{""minimum-quantity"":""1"",""path"":""ch2f2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:02 (28–30): Why Do Traders Love Binary Options? by Gail Mercer"",""caption-linebreaks"":""Why Do Traders Love Binary Options? by Gail Mercer
The answer is simple—you can avoid most pitfalls that cause failure in trading.
The reason traders love binary options is simple. Most pitfalls that cause a trader to fail can be avoided with binary options. This gives the trader a greater chance of success. Most traders fail for one or more of the following reasons:
1. They are undercapitalized. Most traders only have $5,000–15,000 to initially fund their accounts. They need to make enough money to support themselves and their families. Each week is going to present at least two to three days of sideways movement. Sideways movement will cause them to lose money in the form of losing trades. If a trader starts with $5,000, and has five consecutive losing days, he could be down 30% in his account (or $1,500) if risking only $100 per trade, three trades per day..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-28-30-why-do-traders-love-binary-options-by-gail-mercer-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-28-30-why-do-traders-love-binary-options-by-gail-mercer-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-28-30-why-do-traders-love-binary-options-by-gail-mercer-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov343reto,d,"{""minimum-quantity"":""1"",""path"":""ch2f2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:02 (32–39): Reacting To Market Moves, Part 1 by Melvin E. Dickover"",""caption-linebreaks"":""Reacting To Market Moves, Part 1 by Melvin E. Dickover
The reason we make counterproductive trading decisions is because of our biases and flawed intuition. In this first part of a two-part series, we analyze and try to understand these trading behaviors so we can avoid costly mistakes and become more effective traders.
Your reaction to market moves is driven by several cognitive biases that affect every part of technical trading. You need to understand these biases. In this article, I first describe the origin of the problem in human intuition, and then use the example of expert prediction and then probability and gambling to illustrate a series of cognitive biases needed to understand the rest of the material. Following that I analyze a series of familiar trading behaviors, introducing more cognitive psychology as needed..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-32-39-reacting-to-market-moves-part-1-by-melvin-e-dickover-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-32-39-reacting-to-market-moves-part-1-by-melvin-e-dickover-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-32-39-reacting-to-market-moves-part-1-by-melvin-e-dickover-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344unpr,d,"{""minimum-quantity"":""1"",""path"":""ch2f2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:02 (40–44): Understanding Price Movement With Fausto Pugliese by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Understanding Price Movement With Fausto Pugliese by Jayanthi Gopalakrishnan
Fausto Pugliese is the CEO of Cyber Trading University, which he founded in 1995. Pugliese began his career on Wall Street as a stockbroker and was one of the first independent traders to take advantage of the Direct Access Trading technology boom that started in 1987. Cyber Trading University offers both onsite and online trading courses with stocks, forex, and options programs. Pugliese is the author of How To Beat Market Makers At Their Own Game: Uncovering The Mysteries Of Level II.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan interviewed Fausto Pugliese on December 7, 2015 about why education is important if you want to become a successful trader.
Fausto, tell us a little bit about yourself and how you got started in trading.
I’m one of the originals of what they call “SOES bandits.” I started in 1995. I was like 22 years old and lived in New York. I was trained by the best traders in the world. Before I was a trader, my sister and I were brokers. We didn’t like it, and we quit. But we found out that the people who made the most money were in the trading business..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-40-44-understanding-price-movement-with-fausto-pugliese-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-40-44-understanding-price-movement-with-fausto-pugliese-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-40-44-understanding-price-movement-with-fausto-pugliese-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344exyo,d,"{""minimum-quantity"":""1"",""path"":""ch2f2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:02 (45–46): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
TAKING THE LEAP
What are LEAPS and how will they benefit you?
I have shown readers of this column from the get-go a handful of my option trading strategies, the tools I use to find them, and the education that goes behind each of my processes to find, analyze, and manage them. The constant in each of the strategies is that they are all short-term in nature, meaning they are set up and due to work within 20–30 days, and if I stretched that at all, it would be with options due to expire about 45 days out..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-45-46-explore-your-options-by-tom-gentile-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-45-46-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-45-46-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344qumo,d,"{""minimum-quantity"":""1"",""path"":""ch2f2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:02 (47): Quick-Scan: The Money Calendar by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""The Money Calendar by Jayanthi Gopalakrishnan
THE MONEY CALENDAR
TomsTradingRoom, LLC
www.TomsOptionTools.com
Price: Part of the Complete Trader package which is $199 per month
The thought of finding double-digit winners on small price movements will, without a doubt, attract the attention of any trader. Too good to be true? Let’s find out.
The Money Calendar, one of the products offered by Tom Gentile (an option trader and regular contributor this magazine especially by way of our monthly Explore Your Options column), finds the top 250 stocks and exchange traded funds (ETFs) that make consistent moves on a specific date or time period. The Money Calendar is a seasonal calendar—yes, it looks for seasonal patterns in stocks—which looks for patterns with a 90% or greater historical win accuracy. To find the promising seasonal patterns, it looks at 400 million bits of data to project 30 days out..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-47-quick-scan-the-money-calendar-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-47-quick-scan-the-money-calendar-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-47-quick-scan-the-money-calendar-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344qaby1,d,"{""minimum-quantity"":""1"",""path"":""ch2f2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:02 (48–49): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
EDGES COME, EDGES GO. MAKE THE MOST OF THEM WHILE THEY ARE IN YOUR HANDS
Those with years of trading experience will nod their heads about all the edges they discovered, applied, and then saw dwindle and disappear. The look back always says, “I should have maximized it while it was here. I did not make the most of it.”
One of the more painful things in life is regret, and this is true in the world of trading also. How do you reduce regrets in trading? You do it by capitalizing on all the soft edges that are within your control..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-48-49-q-a-by-rob-friesen-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-48-49-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-48-49-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov345trti,d,"{""minimum-quantity"":""1"",""path"":""ch2f2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:02 (50–58): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Vitali Apirine’s article in this issue, “Higher Highs & Lower Lows.” Here, we present the February 2016 Traders’ Tips code with possible implementations in various software.
Code for implementing the HHS/LLS for MetaStock as well as for Microsoft Excel is already provided in Apirine’s article. Subscribers will find that code at the Subscriber Area of our website, www.Traders.com.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-50-58-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-50-58-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-50-58-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov346stsh,d,"{""minimum-quantity"":""1"",""path"":""ch2f2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:02 (61–62): Stop Shooting Yourself In The Foot by Alan Kindrick"",""caption-linebreaks"":""Stop Shooting Yourself In The Foot by Alan Kindrick
The idea of following the trend is nothing new, yet we often tend to ignore it. Here’s why you shouldn’t.
If you have read anything about trading, you will come across the mantra “the trend is your friend.” It is a cliché as old as the markets themselves and as true today as it was when it was first stated.
Regardless of the financial instrument you are trading or the time horizon for which you plan to hold the security, trading with the larger overall trend for your holding time is the safest and least risky of trades to take..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-61-62-stop-shooting-yourself-in-the-foot-by-alan-kindrick-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-61-62-stop-shooting-yourself-in-the-foot-by-alan-kindrick-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-61-62-stop-shooting-yourself-in-the-foot-by-alan-kindrick-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34862le,d,"{""minimum-quantity"":""1"",""path"":""ch2f2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:02 (8–9, 62): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
TRADING THE LOONIE
Editor,
I just finished Markos Katsanos’ article in the December 2015 issue of STOCKS & COMMODITIES (“Trading The Loonie”)—it’s excellent (and the article’s art is shared to the front cover, too). The results discussed in the article are impressive. I reread the article several times and also reviewed Katsanos’ book Intermarket Trading Strategies, with its discussion of Bollinger Band divergence, in detail to try to grasp the logic.
I also did research on Canadian oil sands and the relationship between the Canadian dollar and oil futures..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-8-9-62-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-8-9-62-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-02-8-9-62-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov341whpr,d,"{""minimum-quantity"":""1"",""path"":""ch3m209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:03 (12–16): Where Price Action Meets Momentum Trading by Paul Langham"",""caption-linebreaks"":""Where Price Action Meets Momentum Trading by Paul Langham
Often, traders blindly place trades based on expected price moves derived from specific price patterns. But we know too well that price patterns can fail. How do you know when a price pattern will respect the price action rules? Find out here.
For the last 15 of my 34-year career working within the European financial markets arena, I have been passionately interested in and actively trading the forex markets using price action techniques. This has been a wonderful journey and experience for me, and I would like to share with you some of the best discoveries I have made about price along what I call the price action road..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-12-16-where-price-action-meets-momentum-trading-by-paul-langham-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-12-16-where-price-action-meets-momentum-trading-by-paul-langham-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-12-16-where-price-action-meets-momentum-trading-by-paul-langham-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov341anvo,d,"{""minimum-quantity"":""1"",""path"":""ch3m209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:03 (18–22): Analyze Volume With S&P 500 Sectors by Domenico D’Errico"",""caption-linebreaks"":""Analyze Volume With S&P 500 Sectors by Domenico D’Errico
When the Fed meets, the world watches. Does action in the various S&P 500 sectors show any indication of what may happen based on their supply & demand areas? Let’s find out.
I strongly believe the information that technical indicators provide is based on hindsight; this is especially true for support & resistance indicators. This belief has led me to develop indicators for which price behavior can be clearly analyzed on out-of-sample data, or data not included in the indicator’s calculation. The indicator I am going to use for this article, named Supply & Demand Areas, which I developed into an app for Trade Station, is based on this concept..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-18-22-analyze-volume-with-s-p-500-sectors-by-domenico-d-errico-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-18-22-analyze-volume-with-s-p-500-sectors-by-domenico-d-errico-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-18-22-analyze-volume-with-s-p-500-sectors-by-domenico-d-errico-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34258tr,d,"{""minimum-quantity"":""1"",""path"":""ch3m209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:03 (24–25, 58): Trading Expectancy by Dirk Vandycke"",""caption-linebreaks"":""Trading Expectancy by Dirk Vandycke
Selecting what to trade and timing your trades are only one piece of the trading puzzle. One often ignored and misunderstood piece is that of expectancy. Here’s how you should look at expectancy.
It’s true that deciding what to buy or sell and timing your entries & exits have an impact on your trading results. It’s especially true when you’re focusing on one trade. But when you’re looking at a sequence of trades from the perspective of expectancy, selection and timing don’t matter much..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-24-25-58-trading-expectancy-by-dirk-vandycke-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-24-25-58-trading-expectancy-by-dirk-vandycke-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-24-25-58-trading-expectancy-by-dirk-vandycke-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov342reto,d,"{""minimum-quantity"":""1"",""path"":""ch3m209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:03 (26–30): Reacting To Market Moves, Part 2 by Melvin E. Dickover"",""caption-linebreaks"":""Reacting To Market Moves, Part 2 by Melvin E. Dickover
What approach can lead to success in technical trading, in spite of all the cognitive biases we can have that were discussed in part 1 of this two-part article? Here in this second part, we try to answer that question by comparing what humans do in the market versus what the character Spock from “Star Trek” might do.
As a trader, you are competing with other human traders and with automated trading algorithms that are “Spock-like,” developed to be the emotionless, ideal trader. Thus, it is important to compare what you do to ideal technical trading.
WHAT WOULD MR. SPOCK DO?
I am going to describe an ideal technical analysis as Spock might do it, in order to provide a yardstick to compare behaviors against and to clarify what really needs to be done if you are to be the casino and not the gambler..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-26-30-reacting-to-market-moves-part-2-by-melvin-e-dickover-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-26-30-reacting-to-market-moves-part-2-by-melvin-e-dickover-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-26-30-reacting-to-market-moves-part-2-by-melvin-e-dickover-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34348fu,d,"{""minimum-quantity"":""1"",""path"":""ch3m209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:03 (31, 48): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
HEDGING STOCK RISK WITH FUTURES (PART 1 OF 2)
Is there an efficient way to hedge stock portfolio risk in the futures and option markets?
The futures and option markets exist today because of the need for farmers and other agricultural producers and end users to hedge price risk. As a result, they are the most efficient means of hedging price exposure of any product listed on the futures exchanges, including stock index risk. However, don’t mistake efficient for cheap; in all walks of life, insurance is an expensive luxury. Further, even the most efficient suite of hedging vehicles in the world has flaws. Let’s take a closer look..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-31-48-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-31-48-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-31-48-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34336us,d,"{""minimum-quantity"":""1"",""path"":""ch3m209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:03 (34, 36–41): Using Options With Price Headley by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Using Options With Price Headley by Jayanthi Gopalakrishnan
Price Headley was inducted into the Traders’ Library Traders’ Hall of Fame in 2007 and is the founder of BigTrends.com, which provides investors with specific, real-time stock and option strategies and investment education to profit from significant market trends.
Price has appeared regularly on CNBC and Fox News, and in a variety of print and online financial news outlets, including The Wall Street Journal, Barron’s, Forbes, Investor’s Business Daily, and USA Today. Price also speaks regularly to investment audiences nationwide and is a Chartered Financial Analyst (CFA) charterholder and a Chartered Market Technician (CMT).
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Price Headley on January 7, 2016 about how to take advantage of strong trends using options.
I last interviewed you for this magazine in 2003 and you spoke to us then about the indicators you were using at the time. Given that you’ve been trading options for a little more than 25 years now, how have the option markets evolved since you started?
I think there’ve been a lot of things that have been friendly for the typical retail option trader. Back when I started trading, it seemed like there were fairly wide bid–ask spreads compared to what you see now..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-34-36-41-using-options-with-price-headley-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-34-36-41-using-options-with-price-headley-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-34-36-41-using-options-with-price-headley-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34446ex,d,"{""minimum-quantity"":""1"",""path"":""ch3m209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:03 (42–43, 46): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
MONEYNESS AND THE MATH OF OPTIONS
How can you tell how much your option will move if the stock moves by a certain amount?
This is a popular question and my answer, in a nutshell, is “You can figure it out using a formula.” The formula is used to calculate that one number, which is known as the delta. As you may know, delta is one of the option greeks that help make up an option’s premium or value. It is considered by many to be the most important greek, or component of an option..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-42-43-46-explore-your-options-by-tom-gentile-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-42-43-46-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-42-43-46-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344qutr,d,"{""minimum-quantity"":""1"",""path"":""ch3m209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:03 (44–46): Quick-Scan: TradeShark Add-On Indicators by Darrell Jobman"",""caption-linebreaks"":""Quick-Scan: TradeShark Add-On Indicators by Darrell Jobman
TRADESHARK ADD-ON INDICATORS
Market Technologies, LLC
5807 Old Pasco Rd., Wesley Chapel, FL 33544
Phone: 800 732-5407 or 813 973-0496 (fax 813 973-7249)
Email: info@TradeShark.com, Website: www.TradeShark.com
Product: Indicator add-ons from Larry Williams and Ralph Vince for the TradeShark platform
Price: $1,495 for each indicator
Larry Williams and Ralph Vince, a protégé of Williams, are well-known traders and authors. Both are offering exclusive indicators in TradeShark, a platform that employs neural network technology to generate technical indicators that offer short-term price and trend forecasts..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-44-46-quick-scan-tradeshark-add-on-indicators-by-darrell-jobman-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-44-46-quick-scan-tradeshark-add-on-indicators-by-darrell-jobman-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-44-46-quick-scan-tradeshark-add-on-indicators-by-darrell-jobman-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344qaby2,d,"{""minimum-quantity"":""1"",""path"":""ch3m209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:03 (47–48): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
TRADING AS A BUSINESS
Is trading a viable and profitable business?
When I bring up the topic of treating your day-to-day trading actions as a business, do your eyes glaze over and do you quickly flip the page to look for more stimulating articles such as “The holy grail of the nine-headed dragon formation”?
I’m sure some would respond to the question I led off with as I would — yes, but for the many, the answer could be no..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-47-48-q-a-by-rob-friesen-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-47-48-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-47-48-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344trti1,d,"{""minimum-quantity"":""1"",""path"":""ch3m209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:03 (49–55): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Ken Calhoun’s article in this issue, “ADX Breakouts.” Here, we present the March 2016 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-49-55-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-49-55-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-49-55-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov346bofo1,d,"{""minimum-quantity"":""1"",""path"":""ch3m209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:03 (62): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
Stock Trader’s Almanac 2016
Trading Psychology 2.0: From Best Practices To Best Processes
Algorithmic And High-Frequency Trading
The Forex Trading Course: A Self-Study Guide To Becoming A Successful Currency Trader, second edition"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-62-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-62-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-62-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov347leto,d,"{""minimum-quantity"":""1"",""path"":""ch3m209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:03 (7): Letters To S&C by Technical Analysis, Inc"",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc
ERGODIC CANDLESTICK OSCILLATOR
Editor,
STOCKS & COMMODITIES is a truly great magazine and I have been a subscriber for more than 20 years. Your Traders’ Tips section has been a big help to me in learning new code. However, there is one code that I have not been able to find and I hope you can help. It is from some years ago, and it’s William Blau’s ergodic candlestick oscillator. For my trading, I am using MultiCharts with DTN data. The code I use is written in EasyLanguage.\nJohn Bond
As we haven’t published code for this indicator, perhaps someone reading this will have a suggestion.\n—Editor"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-7-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-7-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-7-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov348newm,d,"{""minimum-quantity"":""1"",""path"":""ch3m209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:03 (8–10): A New Method For Picking Stocks Using P/E Multiples by Martti Luoma and Jukka Sihvonen"",""caption-linebreaks"":""A New Method For Picking Stocks Using P/E Multiples by Martti Luoma and Jukka Sihvonen
Using screening criteria that incorporates stock valuation variables can prove to be an asset to a technical analyst. Here’s an intuitive and simple technique you can incorporate into your stock selection process.
Before making any investment, it’s necessary to do a careful valuation. When it comes to stock valuation, one common variable is the price-to-earnings ratio (P/E), but it comes with its share of limitations. In this article, we present the P/E ratio in a new context and discuss the resulting investment implications..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-8-10-a-new-method-for-picking-stocks-using-p-e-multiples-by-martti-luoma-and-jukka-sihvonen-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-8-10-a-new-method-for-picking-stocks-using-p-e-multiples-by-martti-luoma-and-jukka-sihvonen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-8-10-a-new-method-for-picking-stocks-using-p-e-multiples-by-martti-luoma-and-jukka-sihvonen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov348adxb1,d,"{""minimum-quantity"":""1"",""path"":""faarfr208"",""ysw-page-title"":""Stocks & Commodities V. 34:03 (8–11): ADX Breakouts by Ken Calhoun"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-8-11-adx-breakouts-by-ken-calhoun-35.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-8-11-adx-breakouts-by-ken-calhoun-36.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-8-11-adx-breakouts-by-ken-calhoun-37.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov348adxb,d,"{""minimum-quantity"":""1"",""path"":""ch3m209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:03 (8–11): ADX Breakouts by Ken Calhoun"",""caption-linebreaks"":""ADX Breakouts by Ken Calhoun
Breakouts are a popular method to trade with, but how do you differentiate between strong and weak breakouts? Here in this second installment of a new regular column titled “Trading On Momentum” that presents step-by-step techniques for active traders, this professional daytrader demonstrates one method of identifying breakouts that could make a difference.
You can easily find volatile swing trading chart breakouts by using J. Welles Wilder’s average directional index (ADX) whenever you scan for trade entries. Combining the ADX with volume and price-action breakouts can help you locate the strongest breakouts to trade..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-8-11-adx-breakouts-by-ken-calhoun-28.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-8-11-adx-breakouts-by-ken-calhoun-33.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-8-11-adx-breakouts-by-ken-calhoun-34.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov348reby,d,"{""minimum-quantity"":""1"",""path"":""ch3m209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:03 (8–11): The Reckoning by Tim W. Wood, CPA"",""caption-linebreaks"":""The Reckoning by Tim W. Wood, CPA
Dow theory, revisited. Yes, this concept from a century ago still applies to today’s markets.
The Dow theory nonconfirmation that began forming in February 2015 has been a warning. The great Dow theorist Robert Rhea once said, “A wise man leaves the market alone when the averages do not agree.” Few really understand Dow theory, and it seems that most people who are familiar with it tend to discount it as some antiquated relic of the past. The current market environment and the developments since February 2015 are a perfect example. The Dow theory has been issuing warnings, but as is always the case, those warnings have not been understood or heard..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-8-11-the-reckoning-by-tim-w-wood-cpa-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-8-11-the-reckoning-by-tim-w-wood-cpa-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-03-8-11-the-reckoning-by-tim-w-wood-cpa-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34145fa,d,"{""minimum-quantity"":""1"",""path"":""ch4a2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:04 (12–15, 45): The Fate Of Currencies by Tyler Yell"",""caption-linebreaks"":""The Fate Of Currencies by Tyler Yell
The global economy was nurtured back to health after the credit crisis by China. Now it’s time to see if the world can stand with a drop in China’s demand.
The scare of August 24, 2015 will remain on investors’ psyche for years to come. US equity futures were limit-down before market open, and currencies like the New Zealand dollar had their most aggressive moves in 30 years as liquidity vanished when it was needed most. However, many investors failed to understand and are now coming to realize that the yuan, which was devalued two weeks before the minicrash on August 24, 2015, is what could shock the world and global markets. Likewise, what happened with the Shanghai Composite Index is a small demonstration of the booms and busts that happen in any growing economy.
THE IMPACT OF THE YUAN
The yuan is critical because China is critical to global economic health. Many companies and countries depend on China’s growth and hope to see a continuation of that growth into the future to help them avoid weakening domestic demand or weakness in prior trade partners such as Latin America or Europe..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-12-15-45-the-fate-of-currencies-by-tyler-yell-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-12-15-45-the-fate-of-currencies-by-tyler-yell-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-12-15-45-the-fate-of-currencies-by-tyler-yell-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov341idsh,d,"{""minimum-quantity"":""1"",""path"":""ch4a2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:04 (16–20): Identifying Short-Term Bottoms In Bull Markets by Stephen Beatson"",""caption-linebreaks"":""Identifying Short-Term Bottoms In Bull Markets by Stephen Beatson
When a market drops sharply, do you find yourself unable to make trading decisions for fear of losing money? You’re not alone. In such situations, you need to be able to come up with a method that helps you make trading decisions more confidently. Here, we explore different types of market bottoms and identify the variables most likely to indicate an imminent short-term rebound.
Sharp market drops can sometimes signal opportune times to enter the market. This is particularly true when the drop has been sharp and sudden, indicating that the market has probably overreacted to recent political or macroeconomic news.
The main problem with trading during very volatile times is that anxiety and the fear of losses may prevent investors from pulling the trigger, particularly when the market is undergoing an “unprecedented” correction..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-16-20-identifying-short-term-bottoms-in-bull-markets-by-stephen-beatson-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-16-20-identifying-short-term-bottoms-in-bull-markets-by-stephen-beatson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-16-20-identifying-short-term-bottoms-in-bull-markets-by-stephen-beatson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov342extr,d,"{""minimum-quantity"":""1"",""path"":""ch4a2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:04 (22–24): Explore Trend Trading In FX by Solomon Chuama"",""caption-linebreaks"":""Explore Trend Trading In FX by Solomon Chuama
Even if a market is trending, traders still need to manage their risks and positions. Here we explore the currency markets and discuss a technique you can apply so you aren’t trapped in trades when the trend ends.
Trend trading has been a popular style of trading for many years. There could be many reasons for this, one being that trends can be visually detected. During a trending market, if you catch the trend at its beginning, you’ll get a better price; the better price you have, the more likely you’ll make a profit. Trending markets typically have low volatility but move in one direction. If the market is moving up consistently and making new highs then you have to go long..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-22-24-explore-trend-trading-in-fx-by-solomon-chuama-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-22-24-explore-trend-trading-in-fx-by-solomon-chuama-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-22-24-explore-trend-trading-in-fx-by-solomon-chuama-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34243fu,d,"{""minimum-quantity"":""1"",""path"":""ch4a2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:04 (25, 43): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
TIMING YOUR HEDGE (PART 2 OF 2)
Is there an efficient way to hedge stock portfolio risk in the futures and option markets?
Last month I discussed the use of options on futures, and futures contracts, when hedging a stock portfolio. Now I’ll focus on a creative alternative using a combination of long and short options. I’ll also discuss the importance of timing hedges properly. After all, a hedge only benefits the investor if the proceeds are realized.
Be creative
Although there are merely two hedging vehicles—options and futures—there are a nearly unlimited number of strategies with varying levels of aggression..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-25-43-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-25-43-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-25-43-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34245tr,d,"{""minimum-quantity"":""1"",""path"":""ch4a2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:04 (26–29, 45): Trading SPY 30-Minute Bars With SAR, Part 1 by Dennis Meyers, PhD"",""caption-linebreaks"":""Trading SPY 30-Minute Bars With SAR, Part 1 by Dennis Meyers, PhD
We’ve all heard of the parabolic SAR indicator and know how to use it. Here’s a different perspective that looks at it in terms of shape, slope, and speed.
The parabolic stop-and-reversal (SAR) indicator was introduced by J. Welles Wilder in New Concepts In Technical Trading Systems. The SAR is a trend-following indicator that is always long or short the market. This indicator is now standard on all modern technical analysis software. The SAR can be applied to any bar chart such as monthly, weekly, daily, hourly, or even point & figure charts.
The SAR creates a trailing stop that is at first far enough away from the initial buy price so that price retracements in the early stages of the trend do not drop below the trailing stop price and stop you out of your position. As the price trend matures, the trailing stop moves closer and closer at an accelerating rate to recent local lows of the current price, until the stop is penetrated by an adverse price movement and a sell signal is given (the opposite logic applies for a sell signal)..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-26-29-45-trading-spy-30-minute-bars-with-sar-part-1-by-dennis-meyers-phd-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-26-29-45-trading-spy-30-minute-bars-with-sar-part-1-by-dennis-meyers-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-26-29-45-trading-spy-30-minute-bars-with-sar-part-1-by-dennis-meyers-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34344ri,d,"{""minimum-quantity"":""1"",""path"":""ch4a2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:04 (30–31, 44): Richard Demille Wyckoff Part 1 by Stella Osoba, CMT"",""caption-linebreaks"":""Richard Demille Wyckoff Part 1 by Stella Osoba, CMT
This article is the first of a five-part series about Richard D. Wyckoff and his contributions to the discipline that is technical analysis.
Richard Wyckoff was perhaps one of the most influential exponents of the discipline of technical analysis in the 20th century, and his influence continues unabated many years after his death in 1934. He was born on November 2, 1873. After graduating from public school in Brooklyn at 14 and spending one day in high school, he took a job as an office boy at a law firm with the idea that he would learn the law. By 15, he had left that job to accept a better-paying one as a stock runner at the Wall Street firm of Hazard & Packer. And so began an almost uninterrupted career on Wall Street, which would span the rest of his life..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-30-31-44-richard-demille-wyckoff-part-1-by-stella-osoba-cmt-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-30-31-44-richard-demille-wyckoff-part-1-by-stella-osoba-cmt-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-30-31-44-richard-demille-wyckoff-part-1-by-stella-osoba-cmt-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34334re,d,"{""minimum-quantity"":""1"",""path"":""ch4a2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:04 (32, 34–36): Reacting To Currencies With Abe Cofnas by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Reacting To Currencies With Abe Cofnas by Jayanthi Gopalakrishnan
For over two decades, Abe Cofnas has provided fundamental and technical analysis on trading strategies in currencies and intermarkets. He is the founder of Learn4x.com, which provides private coaching and seminars on currency trading, and he has been the forex columnist for Futures magazine (now Modern Trader) since 2001. He hosts seminars and lectures around the world (including London, Dubai, Shanghai, Vancouver, and Singapore). He can be reached at abecofnas@gmail.com.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Abe Cofnas on February 5, 2016 about the factors that affect the movement of currency prices.
Can you tell us a little about yourself and how you got interested in trading forex?
As far as my academic background goes, I have a master’s in political science from University of California at Berkeley and a master’s in public policy from the Graduate School of Public Policy, Berkeley. I studied economics and always had a geopolitical, macroeconomic background. But my original work was in the area of strategic planning and public policy in New York City..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-32-34-36-reacting-to-currencies-with-abe-cofnas-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-32-34-36-reacting-to-currencies-with-abe-cofnas-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-32-34-36-reacting-to-currencies-with-abe-cofnas-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34340ex,d,"{""minimum-quantity"":""1"",""path"":""ch4a2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:04 (37, 40): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
BOBBING FOR LONG-TERM APPLES
When a stock changes from a growth to a value stock, should you trade the stock differently?
After a rough start for the stock market in 2016, all eyes seem to be turned to Apple Inc. for its second-quarter earnings. Will the retail technology giant bounce back by offering up surprises later this year, or is this the start of another downleg for Apple stock (AAPL)? As iPhone sales start to slow, a lot of analysts believe it’s their cloud and pay services that will take over pulling in additional profits for the company, as well as outside acquisitions to boost shareholder returns..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-37-40-explore-your-options-by-tom-gentile-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-37-40-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-37-40-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov343quse,d,"{""minimum-quantity"":""1"",""path"":""ch4a2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:04 (38–40): Quick-Scan: SectorSurfer by Joe Gruender"",""caption-linebreaks"":""Quick-Scan: SectorSurfer by Joe Gruender
SECTORSURFER
SumGrowth Strategies, LLC, Seattle, WA 98125
Phone: 206 365-9690
Email: surfing@sumgrowth.com Internet: www.SumGrowth.com
Product: An automated investment strategy advice tool
System requirements: Internet browser and email. Compatible with desktop computers, tablets, and smart phones
Price: Free and premium strategies. Premium strategies begin at $10/month each.
While there’s no shortage of alternatives in investment services and trading platforms, SectorSurfer is built with some unique features. It’s an automated, web-delivered, algorithmic investment advice service that made its debut in 2010 after more than 20 years of fundamental research, development, and testing through many bull and bear markets..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-38-40-quick-scan-sectorsurfer-by-joe-gruender-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-38-40-quick-scan-sectorsurfer-by-joe-gruender-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-38-40-quick-scan-sectorsurfer-by-joe-gruender-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344qaby3,d,"{""minimum-quantity"":""1"",""path"":""ch4a2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:04 (42–43): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
MAKING IT YOUR OWN: A REQUIREMENT FOR LONG-TERM TRADING SUCCESS
Trading is a business and it is important that the beginning trader learn quickly to treat it as such. In my column last month in the March 2016 issue, I stated that, “One can almost never ‘borrow’ and survive. Maybe for the short run, but not for the distance.” It was suggested to me by my friend Mike Arnold of Path Trading Partners that I should elaborate on that statement further. And as we were discussing trading as business, we realized we had an abundance of passion for this subject, and we decided to coauthor this month’s column in a desire to communicate more details to readers..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-42-43-q-a-by-rob-friesen-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-42-43-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-42-43-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34448tr,d,"{""minimum-quantity"":""1"",""path"":""ch4a2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:04 (46, 48): Trading Gap Reversals by Ken Calhoun"",""caption-linebreaks"":""Trading Gap Reversals by Ken Calhoun
Here’s an intraday trading strategy that is useful for trading gap reversals in stocks that have a major gap down and then start to fill the gap during the first hour of the trading day.
The key to trading gap reversals successfully is that the gap price action should be at least 10% below the low of the prior day to consider entering for a long pivot “gap fill” trade. Gaps of less than 10% should be traded in-trend instead, as discussed in my article “Gap Continuation Breakouts,” which appeared in the September 2015 issue of Technical Analysis of STOCKS & COMMODITIES magazine..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-46-48-trading-gap-reversals-by-ken-calhoun-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-46-48-trading-gap-reversals-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-46-48-trading-gap-reversals-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344trti2,d,"{""minimum-quantity"":""1"",""path"":""ch4a2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:04 (49–55): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
\nFor this month’s Traders’ Tips, the focus is Ken Calhoun’s article in this issue, “Trading Gap Reversals.” Here, we present the April 2016 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-49-55-traders-tips-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-49-55-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-49-55-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov345bofo,d,"{""minimum-quantity"":""1"",""path"":""ch4a2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:04 (58): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
The Trader’s Pendulum: The 10 Habits Of Highly Successful Traders
DIY Financial Advisor: A Simple Solution To Build And Protect Your Wealth
Inside Volatility Filtering: Secrets Of The Skew, second edition
Myths And Mortals: Family Business Leadership And Succession Planning"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-58-books-for-traders-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-58-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-58-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov346wast,d,"{""minimum-quantity"":""1"",""path"":""ch4a2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:04 (60–62): Wall Street-ese by Mark Rivest"",""caption-linebreaks"":""Wall Street-ese by Mark Rivest
Every trading day we’re bombarded with words and phrases that confuse us rather than help. Here’s a guide for cutting through the fog of Wall Street-ese.
You can become a better trader by translating the words, misconceptions, and clichés of Wall Street. If you’re new to trading, you’ll hear or read certain words used by analysts and commentators that don’t fit the normal definition of those words. Veteran and novice traders alike are routinely subject to misconceptions disguised as brilliant analysis. Most clichés are useless, but there is one that can help time the market. We all want to become better traders, and to do that, our first thoughts lean toward using a different momentum indicator, cycle indicator, trading system, or technique..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-60-62-wall-street-ese-by-mark-rivest-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-60-62-wall-street-ese-by-mark-rivest-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-60-62-wall-street-ese-by-mark-rivest-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34745le,d,"{""minimum-quantity"":""1"",""path"":""ch4a2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:04 (7, 45): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
FAILING SUCCESSFULLY
Editor,
I just read “Failing Successfully” in the January 2016 issue of Technical Analysis of STOCKS & COMMODITIES by Stella Osoba. I would just like to thank her for sounding out the hard truths on trading. The article was honest, genuine, and, to be honest, it inspired me to work even harder, so that I can be more prepared, willing to face and accept failure and losing trades during my trading journey.
Is there anywhere I can follow her online? Thanks so much. -JL
Stella Osoba’s contributions appear frequently in our Traders.com Advantage online publication at our website, www.traders.com. All subscribers to STOCKS & COMMODITIES have access to our Traders.com Advantage online articles; simply log in with your last name and subscriber number from your magazine mailing label. From our homepage at www.traders.com, click on the Traders.com Advantage tab at the top to reach this area..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-7-45-letters-to-s-c-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-7-45-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-7-45-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov348whis1,d,"{""minimum-quantity"":""1"",""path"":""ch4a2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:04 (8–10): What Is The Best Purchase Price? by Thomas Bulkowski"",""caption-linebreaks"":""What Is The Best Purchase Price? by Thomas Bulkowski
Have you analyzed your trading setup to determine what the best price is for buying a security? Here we explore some ways to do that.
I received an email from a man asking for a single tip that could improve his trading or give him an edge. What do I tell him?
That is a difficult question to answer because it is so ambiguous. I did not know anything about the man or his trading style, but I wanted to help. So I thought about the question and found an idea worth exploring: What is the best price range for buying a stock?
In other words, should you buy penny stocks (whatever your definition of them is, such as stocks priced below $1 or $5 a share, or those sold over the counter), high-cost stocks, or those priced in between?
From decades ago, I remember reading that the charter for mutual funds prevented them from buying stocks priced below $5 a share..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-8-10-what-is-the-best-purchase-price-by-thomas-bulkowski-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-8-10-what-is-the-best-purchase-price-by-thomas-bulkowski-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-04-8-10-what-is-the-best-purchase-price-by-thomas-bulkowski-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34141at,d,"{""minimum-quantity"":""1"",""path"":""ch5m2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:05 (13, 41): ATR Breakout Entries by Ken Calhoun"",""caption-linebreaks"":""ATR Breakout Entries by Ken Calhoun
How do you know when a breakout is truly a breakout? The more confirming indicators you have, the better. Here are two indicators you can use to identify true breakouts, and if you have even more confirming signals, there’s a strong chance you’ll make profitable trades.
You can find strong swing trading breakouts by combining J. Welles Wilder’s average true range (ATR) with simple moving average (MA) crossovers. When you visually scan for new breakout entries, you should seek to trade charts that have both of these technical trade signals occurring right before you enter the position.
TRADING STRATEGY
\nThe ATR increases when the high/low daily ranges increase over time, using a standard 14-step parameter. This indicator helps you find stocks with larger trading ranges, which are found when institutional buying is on the rise..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-13-41-atr-breakout-entries-by-ken-calhoun-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-13-41-atr-breakout-entries-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-13-41-atr-breakout-entries-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov341trsp,d,"{""minimum-quantity"":""1"",""path"":""ch5m2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:05 (14–17): Trading SPY 30-Minute Bars With SAR by Dennis Meyers, PhD"",""caption-linebreaks"":""Trading SPY 30-Minute Bars With SAR part 2 by Dennis Meyers, PhD
In this second part of a two-part article, we look at which combination of performance metrics gives you strategy inputs that produce good trading results.
From part 1 of my article last month (and if you haven’t read it, please do!), you’ll know that it’s my objective to find a performance metric filter that I can apply to the in-sample (IS) section of data that can give me strategy inputs that will produce, on average, good trading results in the future.
When I use TradeStation to perform an optimization over many combinations of inputs, it creates an output page that has as its rows each strategy input combination and as its columns various trading performance measures or metrics such as profit factor, total net profits, and other metrics..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-14-17-trading-spy-30-minute-bars-with-sar-by-dennis-meyers-phd-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-14-17-trading-spy-30-minute-bars-with-sar-by-dennis-meyers-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-14-17-trading-spy-30-minute-bars-with-sar-by-dennis-meyers-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34131op,d,"{""minimum-quantity"":""1"",""path"":""ch5m2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:05 (18–21, 31): Optimizing Your Strategies by Sunny J. Harris"",""caption-linebreaks"":""Optimizing Your Strategies by Sunny J. Harris
When you come up with a new trading idea, you can develop it into a strategy. Then you backtest it and try to optimize it for the best variables and parameters. How do you go about doing that, and how do you get the best financial outcome from this process? Here, we’ll cover how to optimize a strategy and how to evaluate the potential profitability of it.
As a consultant, I have often been asked to optimize clients’ indicators for the “best fit.” Let’s say, for simplicity, that the indicator is a simple moving average (SMA). When asking for an optimization of an indicator, the client really wants the best financial outcome, not the best average to fit the data. Initially, they don’t know to ask for what they really want. Most beginners need to first acquire some of the language we use as seasoned traders and coding veterans.
The true, mathematical best fit for the data would be a linear regression curve fit (LRCF), which is not necessarily the best profit potential. It becomes a question of whether you want the best mathematical equation that would approximate the data, or the best profit potential..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-18-21-31-optimizing-your-strategies-by-sunny-j-harris-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-18-21-31-optimizing-your-strategies-by-sunny-j-harris-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-18-21-31-optimizing-your-strategies-by-sunny-j-harris-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov342vima,d,"{""minimum-quantity"":""1"",""path"":""ch5m2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:05 (22–27): VIX: Managing Financial Armageddon! by Bani Arora"",""caption-linebreaks"":""VIX: Managing Financial Armageddon! by Bani Arora
If the VIX breaks out of its normal 20–30 range, how can you manage the spike in volatility and still make money? Here are some options to consider.
As famous British statesman Edmund Burke once said, “No passion so effectually robs the mind of all its powers of acting and reasoning as fear.” Currently, continued concerns over the Chinese currency devaluation lurk; oil prices don’t seem ready to get out of their deep, slumping trough; and quantitative easing hasn’t helped central banks achieve their inflation targets yet. Instead, talk of negative rates in the US is picking up steam; a corporate debt crises cannot be ruled out; and the list goes on. All these uncertainties have the power to drive markets lower, as we saw in early 2016..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-22-27-vix-managing-financial-armageddon-by-bani-arora-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-22-27-vix-managing-financial-armageddon-by-bani-arora-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-22-27-vix-managing-financial-armageddon-by-bani-arora-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov342ride,d,"{""minimum-quantity"":""1"",""path"":""ch5m2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:05 (28–31): Richard Demille Wyckoff Part 2 by Stella Osoba, CMT"",""caption-linebreaks"":""Richard Demille Wyckoff Part 2 by Stella Osoba, CMT
There are no shortcuts to becoming a successful trader. In this second of a five-part series about Richard D. Wyckoff, we look at how persistence and determination played a role in his trading career.
If Richard Wyckoff were to return to Wall Street today, there is much that would disorientate him. Even though many of the buildings still sit in majestic silence, there is much that has changed that would serve to disorient our visitor from another age. But if Wyckoff were to maintain a state of equanimity and remain with us for perhaps a decent amount of time, while observing the goings-on in our modern financial world of which Wall Street remains its most potent symbol, he would perhaps soon come to the realization that the one thing that has not changed is the characteristics of the people who populate the financial markets..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-28-31-richard-demille-wyckoff-part-2-by-stella-osoba-cmt-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-28-31-richard-demille-wyckoff-part-2-by-stella-osoba-cmt-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-28-31-richard-demille-wyckoff-part-2-by-stella-osoba-cmt-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov3433649,d,"{""minimum-quantity"":""1"",""path"":""ch5m2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:05 (34, 36–39, 49): Follow The Trend With Dave Landry by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Follow The Trend With Dave Landry by Jayanthi Gopalakrishnan
David Landry has been actively trading the markets since the early 1990s. He is author of Dave Landry On Swing Trading, Dave Landry’s 10 Best Swing Trading Patterns & Strategies, and The Layman’s Guide To Trading Stocks. His books have been translated into Korean, Russian, Italian, French, Japanese, and Chinese. He has made several television appearances, has written articles for Technical Analysis of STOCKS & COMMODITIES, Active Trader, Currency Trader, Traders Journal-Singapore, and TRADERS’. He has been publishing daily web-based commentary on technical trading since 1997. He has spoken at trading conferences both nationally and internationally. He has a B.S. in computer science and an MBA. He was a registered Commodity Trading Advisor (CTA) from 1995 to 2009. He is a board member of the American Association of Professional Technical Analysts. He can be reached at dave@davelandry.com.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Landry on March 8, 2016 about how he identifies and trades trends.
Dave, what attracted you to the financial markets?
\nI’ve been trading actively since the early ’90s, and I think the challenge of the financial markets is what attracted me, but the draw of money and freedom also played a part. I thought that trading seemed easy on the surface and I thought it’d be something that would be easy to master. I soon found out that it wasn’t so easy. As far as freedom is concerned, I later found out that it takes a bit of time to do your proper homework..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-34-36-39-49-follow-the-trend-with-dave-landry-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-34-36-39-49-follow-the-trend-with-dave-landry-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-34-36-39-49-follow-the-trend-with-dave-landry-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344exyo1,d,"{""minimum-quantity"":""1"",""path"":""ch5m2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:05 (40–41): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
WHAT NOT TO TRADE
\nIs there an option trading strategy you don’t trade?
I am always interested in finding different ways to trade—if they work. As I keep my eyes open for new opportunities, I came across an advertisement in which a person was taking ordinary people off the streets of a major city and conducting an experiment with them. He said that with just a few clicks of the mouse, he was able to create instant cash for ordinary folks. In this “experiment,” he touted that this could be done:
• Without trading a single share of stock
\n• Without buying an option
\n• Without touching a mutual fund
\n• Without having a job
\n• Without any education in the financial markets.
Well, that caught my interest..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-40-41-explore-your-options-by-tom-gentile-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-40-41-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-40-41-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344quwi,d,"{""minimum-quantity"":""1"",""path"":""ch5m2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:05 (42–45): Quick-Scan: The Wizard by Leslie N. Masonson"",""caption-linebreaks"":""Quick-Scan: The Wizard by Leslie N. Masonson
THE WIZARD
\nThe Wizard Group, LLC
\nPhone: 877 396-8130
\nEmail: support@thewizard.com
\nInternet: www.thewizard.com
\nProduct: Computerized web-based trading system that selects high-probability, short- and long-term trades for stocks, ETFs, futures, and forex
\nData updates: Intraday and end-of-day based on plan selected
\nRequirements: Works on Safari, Firefox, Chrome and Internet Explorer. Accessible on mobile phones and iPads with Internet access.
\nPrice: Stocks/ETFs or futures for $99/month each end-of-day (EOD) or $999/annually each; Intraday and EOD stocks and ETFs for $159/month or $1,599/annually; futures and forex intraday and EOD $199/month or$1,999 annually; intraday and EOD stocks, ETFs, forex pairs EOD futures $259/ mo. or $2,599 annually. 30-day money-back guarantee. Pricing includes data and most updates.
A product that runs the gamut from stocks to exchange traded funds (ETFs) all the way to futures and forex is a good find. The Wizard has been meeting this need for over seven years..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-42-45-quick-scan-the-wizard-by-leslie-n-masonson-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-42-45-quick-scan-the-wizard-by-leslie-n-masonson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-42-45-quick-scan-the-wizard-by-leslie-n-masonson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344qaby4,d,"{""minimum-quantity"":""1"",""path"":""ch5m2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:05 (46–47): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
BAKING A BETTER COOKIE: MORE ON THE 80/20 RULE
\nLast month, we talked about the concept of making the strategies within your trading business your own. We examined similarities between opening a restaurant and beginning a trading career. One of the main points we focused on was the Pareto principle, also known as the 80/20 rule. A pattern we’ve observed within our circle of trader relationships is that 80% of time and effort is spent on trading ideas, often from a review of charts, which invariably become one-offs, rather than a well-defined systematic and repeatable process. The last part of that statement is key. Traders need to make an intentional and persistent effort to adopt a process they can personalize over time..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-46-47-q-a-by-rob-friesen-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-46-47-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-46-47-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344vifu,d,"{""minimum-quantity"":""1"",""path"":""ch5m2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:05 (48): VIX: Futures For You by Carley Garner"",""caption-linebreaks"":""VIX: Futures For You by Carley Garner
PRICE DATA FEES FOR COMMODITIES
\nThe ICE Exchange recently rolled out a new data fee policy; is there any way to mitigate the impact of the fee on the average retail trader?
The futures exchange previously known as the New York Board of Trade (NYBOT) was bought out by the Intercontinental Exchange (ICE) in 2007. Products traded on the exchange include the softs (sugar, cocoa, coffee, orange juice), along with the Russell 2000 futures contract and the dollar index. There are other products listed on ICE, but speculators tend to steer clear due to a lack of liquidity. With that said, even the premier listings on ICE are traded rather thinly relative to other US-based futures markets..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-48-vix-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-48-vix-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-48-vix-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov345trti1,d,"{""minimum-quantity"":""1"",""path"":""ch5m2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:05 (50–55): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Barbara Star’s article in this issue, “Zero In On The MACD.” Here, we present the May 2016 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-50-55-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-50-55-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-50-55-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov345bofo1,d,"{""minimum-quantity"":""1"",""path"":""ch5m2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:05 (58): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
Adaptive Asset Allocation: Dynamic Global Portfolios To Profit In Good Times—And Bad
Day Trading And Swing Trading The Currency Market: Technical and Fundamental Strategies To Profit From Market Moves, 3rd Edition
The Institutional ETF Toolbox: How Institutions Can Understand And Utilize The Fast-Growing World Of ETFs
Tensile Trading: The 10 Essential Stages Of Stock Market Mastery
Handbook Of High-Frequency Trading And Modeling In Finance"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-58-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-58-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-58-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov346evyo,d,"{""minimum-quantity"":""1"",""path"":""ch5m2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:05 (60–62): Everything You Need To Know About Investing by Howard Yaruss"",""caption-linebreaks"":""Everything You Need To Know About Investing by Howard Yaruss
You probably already know what you need to know, but here’s a reminder and common-sense reasons why the rules hold true.
The last thing anyone needs is another article, book, expert, professor, and so on trying to enlighten them as to what they absolutely need to know in order to make the best investment choices. The amount of advice out there is dwarfed only by the fees earned by those doing the advising. All the advice purports to share clever insights that make people feel like they are missing out if they don’t follow the advice and, instead, follow some other advice or—worst of all—follow their own common sense.
The only thing you are sure to lose by not following such “expert” investment advice, however, is the fees associated with such investments. The irony is that by paying an investment advisor, manager, promoter, or other professional, you are paying for something you could do better on your own without the fees..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-60-62-everything-you-need-to-know-about-investing-by-howard-yaruss-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-60-62-everything-you-need-to-know-about-investing-by-howard-yaruss-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-60-62-everything-you-need-to-know-about-investing-by-howard-yaruss-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov347leto1,d,"{""minimum-quantity"":""1"",""path"":""ch5m2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:05 (7): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
PICKING STOCKS USING P/E MULTIPLES
Editor,
\nI have subscribed to Technical Analysis of STOCKS & COMMODITIES since the beginning of its publication in 1982 and have read some excellent articles over the years.
In the March 2016 issue, the article “A New Method For Picking Stocks Using P/E Multiples” was very interesting. I could immediately relate to what authors Martti Luoma and Jukka Sihvonen were trying to do and see a great potential for its use for comparing stocks, sectors, countries, and so forth..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-7-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-7-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-7-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34847ze,d,"{""minimum-quantity"":""1"",""path"":""ch5m2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:05 (8–12, 47): Zero In On The MACD by Barbara Star, PhD"",""caption-linebreaks"":""Zero In On The MACD by Barbara Star, PhD
Do you find that you trade more than you’d like to while a market is trending? Here’s a variation on the moving average convergence/divergence you can use to keep you in trending markets longer so you can capture more of a trend.
Despite the advances in technical analysis, the moving average convergence/divergence (MACD) indicator created by Gerald Appel almost 40 years ago remains a mainstay in the trader’s toolbox. Its popularity is well-deserved since it serves more than one purpose. It functions as a momentum oscillator, a directional indicator, an indication of price vigor and, for some, a standalone trading system.
The MACD consists of two parts: the MACD line and the signal line. The standard MACD settings found in most charting software subtract the difference between the 12-period exponential moving average (EMA) and 26-period EMA to create the MACD line..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-8-12-47-zero-in-on-the-macd-by-barbara-star-phd-28.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-8-12-47-zero-in-on-the-macd-by-barbara-star-phd-33.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-8-12-47-zero-in-on-the-macd-by-barbara-star-phd-34.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34847ze1,d,"{""minimum-quantity"":""1"",""path"":""faarfr208"",""ysw-page-title"":""Stocks & Commodities V. 34:05 (8–12, 47): Zero In On The MACD by Barbara Star, PhD"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-8-12-47-zero-in-on-the-macd-by-barbara-star-phd-35.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-8-12-47-zero-in-on-the-macd-by-barbara-star-phd-36.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-05-8-12-47-zero-in-on-the-macd-by-barbara-star-phd-37.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34127cl,d,"{""minimum-quantity"":""1"",""path"":""ch6j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:06 (12–15, 27): The Closing Score: Extracting Sentiment From Price by Michael Slattery"",""caption-linebreaks"":""The Closing Score: Extracting Sentiment From Price by Michael Slattery
Gauging the emotions and sentiment of traders in any market can be one of the most important predictive indicators you can extract from available information. But what drives sentiment and how can you make any sense of it? Well, that can be a little tricky, but here’s a low-cost approach you can appreciate.
Try as hard as you may, you’re never going to get rid of the emotions of fear and greed when you’re trading. These emotions will always creep up and try to control your decisions to enter or exit positions. The nice thing is it happens to everybody and when a certain emotion dominates among a majority of traders, it’ll be reflected in the price action that you see on your charts"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-12-15-27-the-closing-score-extracting-sentiment-from-price-by-michael-slattery-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-12-15-27-the-closing-score-extracting-sentiment-from-price-by-michael-slattery-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-12-15-27-the-closing-score-extracting-sentiment-from-price-by-michael-slattery-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34144vo,d,"{""minimum-quantity"":""1"",""path"":""ch6j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:06 (16–17, 44): Volume & Open Interest by Paul Kogut"",""caption-linebreaks"":""Volume & Open Interest by Paul Kogut
They may be the most overlooked metrics in a trader’s toolbox, but understanding them can give you an insight into the psychological makeup of the market. Here’s how.
There’s more to volume and open interest than the values you see displayed on a chart. If you add one more component to the mix, you can bring some subjectivity into your interpretation that’ll give you a unique perspective into the mentality of buyers and sellers in the futures market..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-16-17-44-volume-open-interest-by-paul-kogut-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-16-17-44-volume-open-interest-by-paul-kogut-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-16-17-44-volume-open-interest-by-paul-kogut-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34139bo1,d,"{""minimum-quantity"":""1"",""path"":""faarfr208"",""ysw-page-title"":""Stocks & Commodities V. 34:06 (18–20, 39): Bollinger Bands & RSI: A Magical Combo by Azeez Mustapha"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-18-20-39-bollinger-bands-rsi-a-magical-combo-by-azeez-mustapha-33.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-18-20-39-bollinger-bands-rsi-a-magical-combo-by-azeez-mustapha-34.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-18-20-39-bollinger-bands-rsi-a-magical-combo-by-azeez-mustapha-35.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34139bo,d,"{""minimum-quantity"":""1"",""path"":""ch6j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:06 (18–20, 39): Bollinger Bands & RSI: A Magical Combo by Azeez Mustapha"",""caption-linebreaks"":""Bollinger Bands & RSI: A Magical Combo by Azeez Mustapha
When combined in uncommon ways, Bollinger Bands and the RSI generate subtle but dependable signals. Here are four ways to combine them to uncover trading opportunities.
Reliable trading opportunities emerge as the maudlin bulls and bears engage in power tussles. Serious traders have figured out numerous ways of playing such opportunities triumphantly, including several that most people cannot see. You too can do this, and in this article, I’ll explain how by combining Bollinger Bands (BB) and the relative strength index (RSI) in four ways..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-18-20-39-bollinger-bands-rsi-a-magical-combo-by-azeez-mustapha-28.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-18-20-39-bollinger-bands-rsi-a-magical-combo-by-azeez-mustapha-36.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-18-20-39-bollinger-bands-rsi-a-magical-combo-by-azeez-mustapha-37.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34246im,d,"{""minimum-quantity"":""1"",""path"":""ch6j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:06 (22–23, 46): Impact Of Junk Bonds On Trading by Andrew Sachais"",""caption-linebreaks"":""Impact Of Junk Bonds On Trading by Andrew Sachais
When should you be in equities and when should you hold cash and stay on the sidelines? Here’s a simple system that can help to answer that question.
Over the last few years, the widening yield spread between US junk bonds and treasuries has predicted heightened volatility in financial markets. Although many investors track yield spreads as a source of insight into credit market health, equity investors can similarly utilize simple bond tools to gauge sentiment. Through our findings, we’ve devised a remarkably simple system that indicates when to be in equities and when to hold cash on the sidelines..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-22-23-46-impact-of-junk-bonds-on-trading-by-andrew-sachais-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-22-23-46-impact-of-junk-bonds-on-trading-by-andrew-sachais-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-22-23-46-impact-of-junk-bonds-on-trading-by-andrew-sachais-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov342ride1,d,"{""minimum-quantity"":""1"",""path"":""ch6j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:06 (24–27): Richard Demille Wyckoff Part 3 by Stella Osoba, CMT"",""caption-linebreaks"":""Richard Demille Wyckoff Part 3 by Stella Osoba, CMT
The most basic and universal laws governing goods and services in a free market are the law of supply, law of demand, and the intersection of these laws. These laws control stock prices. In this third of a five-part series about Richard D. Wyckoff, we look at how he analyzed market action.
Richard Wyckoff firmly believed that an understanding of the operation of the laws of supply & demand was essential to understanding the changes in stock prices. Prices rise when demand exceeds supply and fall when supply is greater than demand. And if you could apply these laws, you could begin to learn to read charts correctly. Most people read charts just to follow prices and then guess at what is likely to happen next..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-24-27-richard-demille-wyckoff-part-3-by-stella-osoba-cmt-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-24-27-richard-demille-wyckoff-part-3-by-stella-osoba-cmt-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-24-27-richard-demille-wyckoff-part-3-by-stella-osoba-cmt-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34242ex,d,"{""minimum-quantity"":""1"",""path"":""ch6j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:06 (28, 42): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
A RARE OPTION OPPORTUNITY
\nIs it worth buying options on low-priced, highly volatile stocks?
Sometimes an opportunity simply presents itself at the least-expected time. My brother-in-law recently asked me for my opinion on SunEdison Inc. (SUNE) stock. I’ve told him in the past that I wouldn’t touch this one with a 10-foot pole. It’s way too volatile, and has price swings that would make the toughest trader cringe. So I told him what I always tell him, which is, I wouldn’t own the stock. Then it hit me. I wonder what the options are trading at? I know this stock is a single-digit stock, so I am not expecting much. I took a look at the chart of SUNE..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-28-42-explore-your-options-by-tom-gentile-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-28-42-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-28-42-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov343qaby,d,"{""minimum-quantity"":""1"",""path"":""ch6j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:06 (30–31): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
DEVELOPING A BIGGER TOOLBOX
\nMost traders have come to realize that the days of the one-trick pony have passed when it comes to using trading strategies. Years ago, when market volatility was higher, traders would benefit from trading a small group of instruments with only a single strategy. But these days, the problem with having only a hammer in the trader’s toolbox, so to speak, is that not everything is a nail. To trade successfully, you need a larger toolbox with a variety of tools to apply to a number of creative trading ideas..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-30-31-q-a-by-rob-friesen-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-30-31-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-30-31-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34336fr,d,"{""minimum-quantity"":""1"",""path"":""ch6j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:06 (34, 36–39): From Biotech To Quant With Scott Andrews by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""From Biotech To Quant With Scott Andrews by Jayanthi Gopalakrishnan
Scott Andrews is cofounder and CEO of InvestiQuant (www.investiquant.com), a financial services company that uses robust historical market analyses and predictive analytics. Prior to InvestiQuant, he cofounded Master The Gap and SciQuest, which he took public as CEO. He has an MBA from the University of North Carolina and served as an aviator in the US Army after graduating from West Point (USMA).
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Scott Andrews on April 4, 2016 about the importance of having automated trading strategies.
Scott, tell us a little bit about yourself and how you got interested in the financial markets.
\nI was fortunate to take a company public at a pretty young age in the 1990s. I went to West Point. I was in the Army for five years and after that worked as a sales representative for a medical supplies company. This was in the early ’90s, and the Internet was just starting to be used by my customers, who were scientists doing research. They introduced me to the Internet, and that’s when lightbulbs went off for me..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-34-36-39-from-biotech-to-quant-with-scott-andrews-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-34-36-39-from-biotech-to-quant-with-scott-andrews-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-34-36-39-from-biotech-to-quant-with-scott-andrews-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344prre1,d,"{""minimum-quantity"":""1"",""path"":""ch6j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:06 (40–41): Product Review: VectorVest 7 by Matt Blackman"",""caption-linebreaks"":""VectorVest 7 by Matt Blackman
VECTORVEST, INC.
\n20472 Chartwell Center Drive, Cornelius, NC 28031
\nPhone: 888 658-7638
\nInternet: www.vectorvest.com
\nMinimum system requirements: Listed at website
\nPricing: See website for details
VectorVest 7 (US version) is a subscription-based stock analysis and portfolio management system. It’s delivered via software that provides the active trader or investor with a wide array of powerful tools to analyze, sort, rank, and graph stocks from a database of approximately 8,000 US stocks with more than 19 years of data..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-40-41-product-review-vectorvest-7-by-matt-blackman-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-40-41-product-review-vectorvest-7-by-matt-blackman-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-40-41-product-review-vectorvest-7-by-matt-blackman-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344fufo1,d,"{""minimum-quantity"":""1"",""path"":""ch6j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:06 (43–44): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
WHEN ARE DELTA NEUTRAL TRADES MOST APPROPRIATE?
\nDelta neutral trades are strategies involving long and short options, and possibly long and short futures, that combine to create a neutral trading position. Generally speaking, the goal of such a tactic is to benefit from the idea that options are typically an eroding asset. In premise, a delta neutral trader stands to make money over time in a relatively sideways market, assuming the IV of the options being used declines, as it generally does over time..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-43-44-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-43-44-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-43-44-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344scfo,d,"{""minimum-quantity"":""1"",""path"":""ch6j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:06 (45–46): Scanning for Swing Trades by Ken Calhoun"",""caption-linebreaks"":""Scanning for Swing Trades by Ken Calhoun
This month, we present a breakout strategy for finding swing trade entries based on characteristics of trend, volume, and 15-day price range. This professional trader explains what to look for.
When you visually scan through swing trading breakout charts, it is important to focus on finding those with strong technical uptrends, increasing volume, and wide trading ranges. You’ll be able to use the specific criteria I will outline here to help you narrow your trading approach to find the best charts to enter when swing trading (that is, round-trip trades lasting several days to several weeks in duration)..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-45-46-scanning-for-swing-trades-by-ken-calhoun-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-45-46-scanning-for-swing-trades-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-45-46-scanning-for-swing-trades-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344trti3,d,"{""minimum-quantity"":""1"",""path"":""ch6j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:06 (47–55): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Ken Calhoun’s article that appeared in the May 2016 issue of Technical Analysis of STOCKS & COMMODITIES, titled “ATR Break-out Entries.” Here, we present the June 2016 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-47-55-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-47-55-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-47-55-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov345bofo2,d,"{""minimum-quantity"":""1"",""path"":""ch6j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:06 (58): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
To Be A Trader: Finding A Path To Your Trading Success
The Options Edge: An Intuitive Approach To Generating Consistent Profits For The Novice To The Experienced Practitioner
The Art Of Risk
HypnoTrading: A Practical Guide To Using Hypnosis And NLP To Improve Your Trading Performance
Investments: Analysis And Management, 13th edition"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-58-books-for-traders-by-technical-analysis-inc-26.gif"",""height"":""295"",""width"":""223""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-58-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-58-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov346arwo,d,"{""minimum-quantity"":""1"",""path"":""ch6j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:06 (60–62): Around The World In Trading Days by Tomas Nesnidal"",""caption-linebreaks"":""Around The World In Trading Days by Tomas Nesnidal
Yes, it’s possible. Here’s how one trader traveled the world while continuing to make an income from his trading.
Trading is one of the few professions that gives you the freedom to set your own hours, make unlimited income, and live on a diet of rice and beans. But if you play your cards right, you may be able to replace the rice and beans with something more lavish. I’m talking more than food..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-60-62-around-the-world-in-trading-days-by-tomas-nesnidal-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-60-62-around-the-world-in-trading-days-by-tomas-nesnidal-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-60-62-around-the-world-in-trading-days-by-tomas-nesnidal-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov347leto2,d,"{""minimum-quantity"":""1"",""path"":""ch6j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:06 (7): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
THE BEST PURCHASE PRICE
Editor,
\nFirst of all, thank you for publishing a good article titled “What Is The Best Purchase Price?” in your April 2016 issue. I can’t agree more that the profit potential of using a particular trading strategy or charting pattern would heavily depend on the type of stock chosen..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-7-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-7-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-7-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov348fain,d,"{""minimum-quantity"":""1"",""path"":""ch6j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:06 (8–11): Falling In Love, With Trends by Kevin Luo"",""caption-linebreaks"":""Falling In Love, With Trends by Kevin Luo
Regardless of what type of trader you are, trends are always a great find. When you find them, you want to hold on to them forever, but they can run away from you very quickly and easily. Don’t get too attached to them. Find strong ones, take advantage of them, and then let them go.
Trend is the most essential concept in technical analysis and forms the backbone for many important technical analysis methods. Many popular technical indicators are referred to as trend-followers since they are designed to detect the strength of a trend. The moving average convergence/divergence (MACD) intends to signal bullish or bearish trends by using a crossover method. The relative strength index (RSI), another technical indicator, is designed to detect a trend in oversold or overbought conditions..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-8-11-falling-in-love-with-trends-by-kevin-luo-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-8-11-falling-in-love-with-trends-by-kevin-luo-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-06-8-11-falling-in-love-with-trends-by-kevin-luo-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov341supa,d,"{""minimum-quantity"":""1"",""path"":""ch7j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:07 (10–13): The Super Passband Filter by John F. Ehlers"",""caption-linebreaks"":""The Super Passband Filter by John F. Ehlers
Are low and high frequencies getting in your way? Here’s a filter that will reject both of these extremes so you can focus on what really matters.
It's a well-known fact: The real enemy of technical traders is the lag from their indicators and trading strategies. Sure, it is relatively simple to create a fancy filter that will give you a precise answer to your trading decisions. But fancy filters require more data than simple filters do, which will cause a delay in the calculations. What use would that be to a trader?
It is far better to get a reasonable answer with no lag, which is precisely what my super passband filter does. Because it passes a band of frequencies through a filter from the data spectrum, it rejects the very low frequencies and therefore displays as an oscillator..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-10-13-the-super-passband-filter-by-john-f-ehlers-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-10-13-the-super-passband-filter-by-john-f-ehlers-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-10-13-the-super-passband-filter-by-john-f-ehlers-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov341trus,d,"{""minimum-quantity"":""1"",""path"":""ch7j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:07 (14–17): Trade Using Pure Price Action Part 1 by Solomon Chuama"",""caption-linebreaks"":""Trade Using Pure Price Action Part 1 by Solomon Chuama
Looking at charts without indicators can make them look naked. But the charts could actually be more reliable and profitable viewed this way. Here’s why.
Price action provides first-hand information about the market, whereas indicators provide lagging or secondary information. In the first part of this two-part article, I will discuss price action by looking at candlestick charts.
PRICE ACTION VS. FIBONACCI TRADING
\nCandlestick charts are used to describe price action in any given timeframe. Price action can follow a continuation pattern, where price continues in the direction it was moving preceding the pattern’s formation. Otherwise, price action can be in a reversal pattern, indicating the likelihood of a change in price direction from prior to the pattern’s formation..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-14-17-trade-using-pure-price-action-part-1-by-solomon-chuama-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-14-17-trade-using-pure-price-action-part-1-by-solomon-chuama-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-14-17-trade-using-pure-price-action-part-1-by-solomon-chuama-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34144an,d,"{""minimum-quantity"":""1"",""path"":""ch7j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:07 (18–20, 44): Another Look At Wave Theory by Michael Dylan"",""caption-linebreaks"":""Another Look At Wave Theory by Michael Dylan
What do the swings on a chart really mean? Maybe organizing them into groups based on their size can help answer that question.
Stock prices move in rhythms, but you never know when a price drop is a correction or a reversal. A stock such as Apple Inc. (AAPL) has been up for several years, but the price dropped sharply in August 2015, as you see in Figure 1. When you see something like that happen, you have to wonder whether the big price drop is a trend reversal or a big correction. If it’s a correction, you would want to buy, but when should you buy? I came up with a wave theory I call Dylan Wave Theory that can help determine whether a price drop is a correction or a reversal. It can also help you understand what the price swings really mean..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-18-20-44-another-look-at-wave-theory-by-michael-dylan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-18-20-44-another-look-at-wave-theory-by-michael-dylan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-18-20-44-another-look-at-wave-theory-by-michael-dylan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov342fufo1,d,"{""minimum-quantity"":""1"",""path"":""ch7j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:07 (21): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
NEW DOLLAR SPOT INDEX
\nThe CME recently launched a new dollar index futures contract. How does it differ from the ICE version?
The US dollar index futures contract—the DX—that is traded on the Intercontinental Exchange, better known as ICE, is the original benchmark. I often refer to it as the currency ETF of the futures market because it offers speculators a way to place wagers on the strength, or weakness, of the dollar against a basket of major currencies, as opposed to a single currency..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-21-futures-for-you-by-carley-garner-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-21-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-21-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov342shen,d,"{""minimum-quantity"":""1"",""path"":""ch7j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:07 (22–25): Shannon Entropy Indicator by Stephen Massel"",""caption-linebreaks"":""Shannon Entropy Indicator by Stephen Massel
Here’s an indicator that discerns the nature of the underlying market and helps you decide whether you should trade trends or channels.
In my last article on Shannon entropy in the August 2015 issue of STOCKS & COMMODITIES, I introduced the concept of using entropy to detect structure, or nonrandomness, in a strategy’s trading results. In this article, I will extend this idea and create an indicator that seeks to discern the nature of the underlying market and whether price action is acting randomly or with more purpose. This can then be used to help decide whether to be trend trading or channel trading.
But first, a few words on entropy. As well as providing a measure of structure/randomness in data, entropy can be considered a measure of dispersion; the more mixed up or evenly distributed the data, the higher the entropy, as in a pack of well-shuffled playing cards..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-22-25-shannon-entropy-indicator-by-stephen-massel-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-22-25-shannon-entropy-indicator-by-stephen-massel-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-22-25-shannon-entropy-indicator-by-stephen-massel-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov342qaby,d,"{""minimum-quantity"":""1"",""path"":""ch7j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:07 (26–27): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
FEEDBACK LOOPS TO IMPROVE FUTURE RESULTS
\nThe three items all traders should have if they want to improve their trading results are their trading plan, a log of all their trades, and a trading journal. These items are necessary so that the trader can develop a feedback loop. In engineering, a feedback loop is where a portion of a system’s outputs are sent back to the inputs to further affect and modify future outputs.
The two major categories of feedback loops are positive and negative. Negative feedback loops reduce aspects of the future inputs, while positive feedback loops enhance future systematic feed-back loops..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-26-27-q-a-by-rob-friesen-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-26-27-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-26-27-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34244ri,d,"{""minimum-quantity"":""1"",""path"":""ch7j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:07 (28–31, 44): Richard Demille Wyckoff Part 4 by Stella Osoba, CMT"",""caption-linebreaks"":""Richard Demille Wyckoff Part 4 by Stella Osoba, CMT
Whether you’re an investor or trader, you need to know how to intelligently evaluate price action. In this fourth of a five-part series about Richard D. Wyckoff, we look at how he evaluated price action using charts.
The core skill of a technical analyst is the ability to read charts to make intelligent trading decisions. As with any skill, the more you practice, the better you will get at it. For the lay person new to chart reading, the admonition bears repeating that chart reading is not the holy grail. It just increases your chances to better than even. Wyckoff said that he had stood at the ticker and observed as some of the great traders of his day, such as James R. Keene, John W. Gates, and Jesse L. Livermore, traded. The one thing they had in common was that they used their judgment. These men practiced constantly and continuously over a long series of years and were thus able to trade successfully more often than not. As Wyckoff said, all you need for success is to be a “little more expert in discernment than others.” So it is worth bearing in mind Wyckoff’s caution as you read what follows, and also bear in mind that there are no rigid rules to chart reading. Study Wyckoff’s method, but then make it your own..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-28-31-44-richard-demille-wyckoff-part-4-by-stella-osoba-cmt-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-28-31-44-richard-demille-wyckoff-part-4-by-stella-osoba-cmt-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-28-31-44-richard-demille-wyckoff-part-4-by-stella-osoba-cmt-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34334me,d,"{""minimum-quantity"":""1"",""path"":""ch7j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:07 (32, 34–36): Measuring Indicators With Fred Meissner by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Measuring Indicators With Fred Meissner by Jayanthi Gopalakrishnan
Fred Meissner, CMT, is the founder and president of The FRED Report. His professional career spans 33 years in the investment business, including serving as president of the Market Technicians Association from 2002 to 2004. His background encompasses market analysis, trading strategies/portfolio management, and business development/relationship management in diverse environments. He holds a BS degree in business administration (with a minor in economics) from Trinity University in San Antonio, TX, and an MA degree from The University of California, Los Angeles (UCLA) in Latin American studies with an interdisciplinary curriculum of international business, his-tory, and sociology. Currently, Meissner publishes The FRED Report (www.thefredreport.com),offers a consulting servicefor financial advisors, and speaks extensively around the world on market analysis and the markets.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Meissner on May 9, 2016 about how to effectively apply indicators in line with broad macro indicators.
Fred, tell us a little bit about yourself and how you got interested in the markets.
\nYes, I was using fundamental analysis, and as I’m sure you’ve heard from lots of other people, I began to notice that sometimes, the fundamentals weren’t working out as they should. When I finished my graduate studies, I went to work for Dean Witter Reynolds in Torrance, CA..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-32-34-36-measuring-indicators-with-fred-meissner-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-32-34-36-measuring-indicators-with-fred-meissner-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-32-34-36-measuring-indicators-with-fred-meissner-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov343exyo1,d,"{""minimum-quantity"":""1"",""path"":""ch7j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:07 (37–38): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
GOLD ON THE MOVE
\nWhat’s up with gold? Why is it on the move up?
Yes, gold has been moving up. The “gold rush” started earlier this year and the party might not be over quite yet. Let’s take a look at what all the fuss is about with gold this year, what’s likely to come, and how you can trade it for low risk and high reward..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-37-38-explore-your-options-by-tom-gentile-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-37-38-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-37-38-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344prre2,d,"{""minimum-quantity"":""1"",""path"":""ch7j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:07 (40–43): Product Review: StockCharts.com by Leslie N. Masonson"",""caption-linebreaks"":""Product Review: StockCharts.com by Leslie N. Masonson
STOCKCHARTS.COM
\n11241 Willows Rd. NE, Suite 140, Redmond, WA 98052-1009
\nPhone: 425 881-2606
\nEmail: support@StockCharts.com
\nInternet: www.StockCharts.com
\nProduct: Technical analysis charting website
\nData updates: Real-time with five- to 15-second refresh rates depending on plan selected, as well as end-of-day.
\nRequirements: Works with most Internet browsers. Mobile-friendly on all web-enabled devices.
\nPrice: Four subscription plans are offered with three different monthly options ranging from $14.95 to $49.95 per month, or one- and two-year options ranging from $154.95 to $519.95 per year. A free 10-day trial is available to new members.
Stockcharts.com is a well-respected and comprehensive online charting site used by advanced technicians, traders, and investors as well as by casual chartists. In 1999, Chip Anderson, president of StockCharts.com, founded the site and set it up as a privately held firm. The site has expanded its technical analysis tools and charts over the past 17 years and also added valuable analytical commentary from an ever-expanding group of savvy market technicians..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-40-43-product-review-stockcharts-com-by-leslie-n-masonson-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-40-43-product-review-stockcharts-com-by-leslie-n-masonson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-40-43-product-review-stockcharts-com-by-leslie-n-masonson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34453mu,d,"{""minimum-quantity"":""1"",""path"":""ch7j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:07 (45, 53): Multiple-Gap Breakouts by Ken Calhoun"",""caption-linebreaks"":""Multiple-Gap Breakouts by Ken Calhoun
This month, we present a breakout strategy for finding swing trade entries based on a series of upward gaps in an uptrend. This professional trader explains what to look for.
Finding strong swing trading breakout charts becomes easier when you find a chart with two or more price-action gaps in an existing uptrend, occurring several days apart. Since one of the strongest technical entry signals you’ll find is gaps, a series of gaps up is an especially strong pattern that’s useful in locating new, long swing trading entries.
TRADING STRATEGY: 15-DAY MULTIPLE-GAP ENTRIES
\nIt’s common for traders to miss out on an initial price gap up, finding it late, several days after a first gap up is seen..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-45-53-multiple-gap-breakouts-by-ken-calhoun-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-45-53-multiple-gap-breakouts-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-45-53-multiple-gap-breakouts-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344trti4,d,"{""minimum-quantity"":""1"",""path"":""ch7j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:07 (46–53): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
\nFor this month’s Traders’ Tips, the focus is John Ehlers’ article in this issue, “The Super Passband Filter.” Here, we present the July 2016 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-46-53-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-46-53-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-46-53-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov346pabe,d,"{""minimum-quantity"":""1"",""path"":""ch7j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:07 (60–61): The Palm Beach Traders by James E. Rich"",""caption-linebreaks"":""The Palm Beach Traders by James E. Rich
Expand your resources and learn more by connecting with other like-minded traders. Here’s a group to emulate.
After spending a career facilitating meetings in which business people met to improve their individual businesses and develop best practices, I decided a similar concept could be applied to trading and investing. In April of 2010, I, along with cofounder Ken King, established The Palm Beach Traders with the mission of enhancing the trading performance of its members..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-60-61-the-palm-beach-traders-by-james-e-rich-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-60-61-the-palm-beach-traders-by-james-e-rich-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-60-61-the-palm-beach-traders-by-james-e-rich-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov346bofo2,d,"{""minimum-quantity"":""1"",""path"":""ch7j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:07 (62): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
Concentrated Investing: Strategies Of The World’s Greatest Concentrated Value Investors
Anatomy Of The Bear: Lessons From Wall Street’s Four Great Bottoms
The Way To Trade Better: Transform Your Trading Into A Successful Business
The FINTECH Book: The Financial Technology Handbook For Investors, Entrepreneurs And Visionaries
Multi-Asset Investing: A Practitioner’s Framework"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-62-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-62-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-62-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34755le,d,"{""minimum-quantity"":""1"",""path"":""ch7j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:07 (7, 55): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
MACD AND AROON
\nEditor,
\nI consider every article written by Barbara Star a must-read. She’s my favorite S&C writer and I use her technical ideas to guide me.
\nRegarding her most recent article, “Zero In On The MACD” (S&C, May 2016), I am trying to figure out the entry rules for this approach. I know that:
1. The price needs to be above both moving averages—the 34 should be above the 55
\n2. The MACD or PPO should cross above zero.
But here is my question: Should the aroon-up also be hitting 100 to indicate that a trend has begun?
Gary"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-7-55-letters-to-s-c-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-7-55-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-7-55-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34854an,d,"{""minimum-quantity"":""1"",""path"":""ch7j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:07 (8–9, 54–55): Anatomy Of A Trade: The One That Got Away by Thomas Bulkowski"",""caption-linebreaks"":""Anatomy Of A Trade: The One That Got Away by Thomas Bulkowski
Have you ever traded with exceptionally bad timing? Here’s one to ponder.
On January 5, 2016, I was flush with cash, so I started window-shopping for stocks to buy. Sometimes I use a top-down approach, where I assess the condition of the general market, then find a stock I like on the longer-term chart, and drill down to the daily scale.
Figure 1 shows the market landscape as represented by the Standard & Poor’s 500 index. In the fall of 2015, the index bottomed at A and B, with a tall peak between those bottoms at C. The ABC pattern is a double bottom, which point D confirmed as a valid pattern when the index closed above peak C..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-8-9-54-55-anatomy-of-a-trade-the-one-that-got-away-by-thomas-bulkowski-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-8-9-54-55-anatomy-of-a-trade-the-one-that-got-away-by-thomas-bulkowski-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-07-8-9-54-55-anatomy-of-a-trade-the-one-that-got-away-by-thomas-bulkowski-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34146pr,d,"{""minimum-quantity"":""1"",""path"":""ch8a2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:08 (13, 46): Price Projection Breakouts by Ken Calhoun"",""caption-linebreaks"":""Price Projection Breakouts by Ken Calhoun
In this regular column covering the topic of breakout trading techniques, this professional daytrader and educator explains how looking for prior trading ranges can help you manage new breakout entries by helping you determine how far a new swing trading breakout is likely to trend before consolidating or reversing.
Traders often struggle when deciding exactly when to enter and exit their trades. If you use price elasticity as a guide to managing your trades, you can simplify this task. A professional trading technique you may find helpful is price projection, which is when you use prior trading ranges to forecast how to manage a new breakout entry as it occurs..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-13-46-price-projection-breakouts-by-ken-calhoun-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-13-46-price-projection-breakouts-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-13-46-price-projection-breakouts-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34147re,d,"{""minimum-quantity"":""1"",""path"":""ch8a2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:08 (14–17, 47): Revival Of The Gold Myth by Bani Arora"",""caption-linebreaks"":""Revival Of The Gold Myth by Bani Arora
When the dollar weakens, gold prices tend to rise, since a plummeting buck means it takes more dollars to buy the same ounce of gold. Can changes in the US interest rate serve as an important mediation? Here’s how you can trade the shiny metal.
Is a muddled state of mind leading to the recent gold price rally? How about this for a little confusion: As a measure of weight, an ounce is only a fraction of a pound; however, as a measure of monetary value, a British pound gets you only a fraction of an ounce of gold.
FIRST, A LITTLE HISTORY
\nDuring the 19th century, an epoch of the unchallenged gold standard, money was neutral. Bank notes were in circulation, but they were convertible into gold at any moment. Today, money is built on paper promises and has never been less substantial and more nominal, thanks in part to aggressive quantitative easing (QE) programs across the world..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-14-17-47-revival-of-the-gold-myth-by-bani-arora-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-14-17-47-revival-of-the-gold-myth-by-bani-arora-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-14-17-47-revival-of-the-gold-myth-by-bani-arora-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov341prac,d,"{""minimum-quantity"":""1"",""path"":""ch8a2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:08 (18–20): Price Action With Fibonacci Part 2 by Solomon Chuama"",""caption-linebreaks"":""Price Action With Fibonacci Part 2 by Solomon Chuama
Combining price action with Fibonacci levels is simple but powerful. Here’s how to unleash the potential of these levels.
Many traders, especially forex traders, keep an eye on support & resistance levels to place their buy & sell orders. But let’s see how to best use the Fibonacci retracement levels as potential support & resistance levels.
USING THE FIBONACCI TOOL
\nFibonacci tools-I call them Fib tools-work well when a market is trending. But before making your entry & exit decisions using these tools, you need to find the retracement levels..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-18-20-price-action-with-fibonacci-part-2-by-solomon-chuama-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-18-20-price-action-with-fibonacci-part-2-by-solomon-chuama-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-18-20-price-action-with-fibonacci-part-2-by-solomon-chuama-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34231fu,d,"{""minimum-quantity"":""1"",""path"":""ch8a2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:08 (21, 31): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
PEAK DOLLAR
\nIf the dollar is peaking out, what does that mean for commodities?
Although there are a plethora of factors driving commodity prices, the most significant might be the value of the US dollar. Generally speaking, as the greenback gains in value, commodity prices decline, but as the dollar declines, commodities rally. This is because commodities, which are largely priced in US dollars, feel cheaper to foreign buyers when the dollar is weak..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-21-31-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-21-31-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-21-31-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov342suas,d,"{""minimum-quantity"":""1"",""path"":""ch8a2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:08 (22–25): The Subtle Aspects Of Expectancy by Norman J. Brown"",""caption-linebreaks"":""The Subtle Aspects Of Expectancy by Norman J. Brown
What exactly is it, when is it applicable, and when isn’t it? Here we remove the confusion surrounding this often-misunderstood term.
In my December 2014 STOCKS & COMMODITIES article, \""Effects Of Volatility On Trading,\"" I pointed out that in roulette gambling, there is a big difference in the scalper approach (that is, betting with high odds such as 35:1) and that of the more conservative gambler betting with a more trending approach (1:1 odds). Even though the expectancy of profit is the same in both cases (actually, a loss of -5.26%), there is a considerable difference in maximum drawdown (Mdd) of equity, largely determined by the input standard deviation, a direct measure of volatility (see equation 6 in the sidebar \""Glossary Of Terms And Equations\"")..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-22-25-the-subtle-aspects-of-expectancy-by-norman-j-brown-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-22-25-the-subtle-aspects-of-expectancy-by-norman-j-brown-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-22-25-the-subtle-aspects-of-expectancy-by-norman-j-brown-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov342mimo,d,"{""minimum-quantity"":""1"",""path"":""ch8a2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:08 (26–29): The Middle-High-Low Moving Average by Vitali Apirine"",""caption-linebreaks"":""The Middle-High-Low Moving Average by Vitali Apirine
Sure, you know moving averages inside out, but maybe it’s time to change things up a bit. Here, we look at how you can apply a moving average to an existing moving average.
Middle, high, low? It may sound odd, but it’s actually not. Just as other types of moving averages do, the middle-high-low moving average (MHL MA) smoothes the price data to form a trend-following indicator. So how is it different from other moving averages? The main difference is that it’s based on the middle of the high–low range. Also, it can be used in combination with the most popular types of moving averages, such as the simple moving average (SMA) or exponential moving average (EMA). For example, you could use the MHL EMA and EMA together, or the MHL SMA alongside the SMA to generate crossover signals. The pairs of moving averages will have the same length..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-26-29-the-middle-high-low-moving-average-by-vitali-apirine-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-26-29-the-middle-high-low-moving-average-by-vitali-apirine-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-26-29-the-middle-high-low-moving-average-by-vitali-apirine-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov343ride,d,"{""minimum-quantity"":""1"",""path"":""ch8a2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:08 (30–33): Richard Demille Wyckoff Part 5 by Stella Osoba, CMT"",""caption-linebreaks"":""Richard Demille Wyckoff Part 5 by Stella Osoba, CMT
In this final part of our series about Richard D. Wyckoff, we look at his latter years - the changes he faced and how that affected his thoughts on investing.
\""Most men make money in their own line of business and lose it in the other fellow’s. Nevertheless, we gain in such losses what is often more valuable than money.\"" - Richard D. Wyckoff
This five-part series on Richard D. Wyckoff would not be complete without mention of some of his exploits outside of what he is commonly best known for - trading and investing. It is to his activities in the phonographic industry and his disastrous encounter with a would-be opera singer who, until her marriage, went by the name of Cecelia Gertrude Shere (also sometimes found as \""Shear\"") and whom Time magazine would come to call \""the prima donna of Wall Street\"" that I shall now turn..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-30-33-richard-demille-wyckoff-part-5-by-stella-osoba-cmt-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-30-33-richard-demille-wyckoff-part-5-by-stella-osoba-cmt-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-30-33-richard-demille-wyckoff-part-5-by-stella-osoba-cmt-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov3433640,d,"{""minimum-quantity"":""1"",""path"":""ch8a2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:08 (34, 36–38, 40): Better Trading With Rob Hoffman by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Better Trading With Rob Hoffman by Jayanthi Gopalakrishnan
Rob Hoffman is founder and CEO of BecomeABetterTrader.com. Hoffman has participated in numerous international and domestic trading competitions with 19 wins and is a frequent speaker at brokerage firms and financial exchanges. He is an educator and a passionate mentor to proprietary traders, portfolio managers, and hedge fund managers around the world. Hoffman applies adult learning theory in his teaching to drive home key points to help students understand how to identify high-probability setups, overcome the fear of pulling the trigger, make the trade, and follow the trade through to completion.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Rob Hoffman on June 3, 2016 about how he trades futures and manages intraday risks.
I’d like to start by asking you how you got interested in the markets. What attracted you to them?
It was January 1987 when I started getting interested in the markets. I was a teenager and was looking for ways to make money. Of course, I had no idea about how to trade at the time - I couldn’t even open up my own trading account because I didn’t have enough money to..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-34-36-38-40-better-trading-with-rob-hoffman-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-34-36-38-40-better-trading-with-rob-hoffman-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-34-36-38-40-better-trading-with-rob-hoffman-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov343exyo2,d,"{""minimum-quantity"":""1"",""path"":""ch8a2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:08 (39–40): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
THE NEWS EFFECT
\nHow much of an impact do news releases have on volume and open interest of options?
I’ll take online giant Alibaba as an example since it has been in the news lately. The SEC is investigating, and apparently has been since the beginning of the year, the accounting practices of Alibaba Group Holding Limited (BABA). This is according to a recent financial filing issued by the company..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-39-40-explore-your-options-by-tom-gentile-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-39-40-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-39-40-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344chan,d,"{""minimum-quantity"":""1"",""path"":""ch8a2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:08 (42–44): Chaikin Analytics by Barbara Star, PhD"",""caption-linebreaks"":""Chaikin Analytics by Barbara Star, PhD
CHAIKIN ANALYTICS, LLC
\n525 S. Fourth St., Suite 240 Philadelphia, PA 19147
\nPhone: 877 978-6257
\nEmail: support@ChaikinAnalytics.com
\nWebsite: www.ChaikinAnalytics.com
\nSystem requirements: Chaikin Analytics for desktop runs on both PCs and Macs inside HTML5-compliant versions of Internet Explorer (IE 10 and above), Chrome, Safari, Firefox.
\nProduct: Subscription-based ratings and research analytic service for stocks, industries, and exchange traded funds (ETFs).
\nPrice: $200 per month or $1,950 per year; free two-week trial; 30-day money-back guarantee
Knowing which stocks will perform well over time is often a hit-or-miss affair for many traders. Chaikin Analytics provides a fast and reliable method for identifying stocks with the potential to either rise or fall over a three- to 12-month period..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-42-44-chaikin-analytics-by-barbara-star-phd-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-42-44-chaikin-analytics-by-barbara-star-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-42-44-chaikin-analytics-by-barbara-star-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344qaby5,d,"{""minimum-quantity"":""1"",""path"":""ch8a2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:08 (45–46): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
THE FEEDBACK LOOP CONTINUES
\nIn last month’s article I touched on the concept of the feedback loop and tying together the trading plan, trading journal, and trade log. This month I’ll elaborate on this concept more by examining discretionary decisions that can be made after the plan and rules have been followed.
I will do this by examining a professional stock basket trader and the trader making decisions to enter or exit specific stocks in that basket or keeping the basket intact and trading it as a whole..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-45-46-q-a-by-rob-friesen-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-45-46-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-45-46-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344trti5,d,"{""minimum-quantity"":""1"",""path"":""ch8a2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:08 (48–55): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Vitali Apirine’s article in this issue, \""The Middle-High-Low Moving Average.\"" Here, we present the August 2016 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-48-55-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-48-55-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-48-55-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov346apgl,d,"{""minimum-quantity"":""1"",""path"":""ch8a2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:08 (60–61): An Applied Glimpse Of Gann by Mak Sangha"",""caption-linebreaks"":""An Applied Glimpse Of Gann by Mak Sangha
Let’s have some fun with astrology and the financial markets.
Mathematically inclined traders are aware of the importance of the Fibonacci ratio of 1.618, its inverse, 0.618; its square, 0.382; and so on. However, it may come as a surprise that we don’t see these important numbers in any of the materials by W.D. Gann, the renowned trader and analyst who lived from 1878 to 1955. How did a mathematician like Gann miss such important numbers? He didn’t. What Gann did was divide a circle he called a spiral chart (Figure 1) into many parts including eighths. For example, 3/8 of 1 is 0.375 and 5/8 of 1 is 0.625. The difference between 0.375 and 0.382 is 0.007, and so is it the case with 0.625 and 0.618. It doesn’t mean we should ignore the Fibonacci ratio in Gann analysis in favor of eighths, or vice versa. In fact, using Fibonacci numbers in Gann analysis can yield highly accurate results..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-60-61-an-applied-glimpse-of-gann-by-mak-sangha-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-60-61-an-applied-glimpse-of-gann-by-mak-sangha-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-60-61-an-applied-glimpse-of-gann-by-mak-sangha-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov346bofo3,d,"{""minimum-quantity"":""1"",""path"":""ch8a2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:08 (62): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
Chart Patterns: After The Buy
The Ultimate Algorithmic Trading System Toolbox + Website: Using Today’s Technology To Help You Become A Better Trader
Technical Analysis And Chart Interpretations: A Comprehensive Guide To Understanding Established Trading Tactics For Ultimate Profit
The Feel Rich Project: Reinventing Your Understanding Of True Wealth To Find True Happiness"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-62-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-62-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-62-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov347leto3,d,"{""minimum-quantity"":""1"",""path"":""ch8a2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:08 (7): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
RICHARD D. WYCKOFF SERIES
Editor,
\nThank you for Stella Osoba’s continuing five-part series about Richard D. Wyckoff. As I write this after reading part 3, I look for forward to the final two installments.
I was wondering if Osoba could direct me to which of Wyckoff’s books most simply and clearly explains his methodology pertaining to price and volume action. I want to purchase the one she thinks is best suited to further learn and employ Wyckoff’s strategies..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-7-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-7-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-7-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov348avre,d,"{""minimum-quantity"":""1"",""path"":""ch8a2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:08 (8–12): Averaging Reward-To-Risk Ratios by Giorgos E. Siligardos, PhD"",""caption-linebreaks"":""Averaging Reward-To-Risk Ratios by Giorgos E. Siligardos, PhD
You need to know the reward/risk profile of your trading system, but how do you figure out which system is better than another? Here’s one method you may not have thought of using.
If you’ve ever evaluated trading systems, you are familiar with the many different metrics you can use to gauge a system’s reward/risk (RR) profile. Numbers such as the Sharpe ratio, Sortino ratio, and Return/MaxDrawDown or other proprietary RR ratios may be your best allies in your quest for finding efficient trading systems. But how do you rank your systems according to their overall RR profile? Most novice analysts might think that the arithmetic mean of all RRs might be a good representation of the overall RR profile of a system, but actually that is not true..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-8-12-averaging-reward-to-risk-ratios-by-giorgos-e-siligardos-phd-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-8-12-averaging-reward-to-risk-ratios-by-giorgos-e-siligardos-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-08-8-12-averaging-reward-to-risk-ratios-by-giorgos-e-siligardos-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov341mema,d,"{""minimum-quantity"":""1"",""path"":""ch9s2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:09 (10–16): Measuring Market Cycles by John F. Ehlers"",""caption-linebreaks"":""Measuring Market Cycles by John F. Ehlers
If you haven’t given much thought to why certain parameters are used in indicators, you may be interested to know that it has a lot to do with measured cycle periods. Here’s how you can use these measured periods and apply them to your indicators.
Why does the relative strength index (RSI) use 14 bars in its calculation? That was the question I asked when I first used technical analysis. The best answer my broker could give me was “because Welles Wilder says so.” You have no idea how dissatisfying that answer is to an engineer! So I began my quest for a better explanation. I discovered that the correct answer to this question is about measuring the cycle periods that are obvious in the data, and then tuning indicators to the measured cycle periods. In this article, I will show you measured cycles in the equity indexes that occurred in 2015 and give some tips on how to use these measurements in your indicators. I’ll also give some advice on how to measure the cycle periods yourself..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-10-16-measuring-market-cycles-by-john-f-ehlers-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-10-16-measuring-market-cycles-by-john-f-ehlers-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-10-16-measuring-market-cycles-by-john-f-ehlers-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34155pr,d,"{""minimum-quantity"":""1"",""path"":""ch9s2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:09 (18–19, 55): Price Movements In Commodities by Andrew Sachais"",""caption-linebreaks"":""Price Movements In Commodities by Andrew Sachais
Commodity prices can be difficult to keep track of because of their volatile nature. To make it easier, here’s a simplified method you can use to better understand why commodity prices tend to move.
Daily price movements are influenced by a wide range of factors from weather to global monetary policy. With the average investor lacking the time and skill in many cases to consider all of these factors, it is prudent to have a simplified method of understanding commodity price movements..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-18-19-55-price-movements-in-commodities-by-andrew-sachais-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-18-19-55-price-movements-in-commodities-by-andrew-sachais-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-18-19-55-price-movements-in-commodities-by-andrew-sachais-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov342rsil,d,"{""minimum-quantity"":""1"",""path"":""ch9s2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:09 (20–23): RSI & Livermore Pivotal Points by Mark Jahn"",""caption-linebreaks"":""RSI & Livermore Pivotal Points by Mark Jahn
Knowing when to sell and take a profit on a successful trade is a difficult skill to master. Sometimes you may get out of a trade too early, other times you can’t tell if prices are moving in an uptrend or downtrend, and sometimes you just don’t know when to exit. Here’s how you can combine a classic indicator with a classic technique and come up with a sensible exit strategy.
There are so many choices when it comes to indicators. Which ones do you use? That’s a question most technical analysts face. For example, many of the better relative strength index (RSI)–based techniques will get you out of a trade with a good profit, but sometimes this profit-taking will cost you a big win by getting you out too soon..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-20-23-rsi-livermore-pivotal-points-by-mark-jahn-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-20-23-rsi-livermore-pivotal-points-by-mark-jahn-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-20-23-rsi-livermore-pivotal-points-by-mark-jahn-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov342exyo,d,"{""minimum-quantity"":""1"",""path"":""ch9s2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:09 (24): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
NEW OPTIONS FOR OPTIONS: VARYING EXPIRATION DATES
Options have gained in popularity and use over the past couple of decades. They have come a long way since the days of the trader who merely used options as a hedge against the risk of the underlying asset, whether it be a stock or commodity. Fast-forwarding to today, options are used as speculative instruments, where people aren’t necessarily just buying options to hedge against risk. They are being used by many as a way to leverage their dollar into making money trading them (buying the option with the intent to sell the option at a higher price), with less risk than it would take to trade stock shares in the same manner..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-24-explore-your-options-by-tom-gentile-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-24-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-24-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34249go,d,"{""minimum-quantity"":""1"",""path"":""ch9s2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:09 (26–28, 49): Golden Cross And Death Cross by Azeez Mustapha"",""caption-linebreaks"":""Golden Cross And Death Cross by Azeez Mustapha
It’s all about finding the dominant bias of the market. Otherwise, you get caught up in the noise, which can be distracting. Here’s one strategy you can use when trading the currency markets to identify when a market is bullish or bearish so you know better when to go long or short.
Bullish or bearish - these are general terms that identify the direction of the markets, unless they’re forming a base. But oftentimes, we lose sight of the big picture and instead focus on the minute details. But doing that could lead us to believe that a market is trending when in reality it may not be, which is why it’s a good idea to know the long-term dominant bias of the market..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-26-28-49-golden-cross-and-death-cross-by-azeez-mustapha-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-26-28-49-golden-cross-and-death-cross-by-azeez-mustapha-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-26-28-49-golden-cross-and-death-cross-by-azeez-mustapha-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov343trte,d,"{""minimum-quantity"":""1"",""path"":""ch9s2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:09 (30–32): Trading, Technical Analysis, And Poker by Sarp Cercioglu"",""caption-linebreaks"":""Trading, Technical Analysis, And Poker by Sarp Cercioglu
They’re similar, they’re different, and they can teach you a lot about strategies and risk management practices that can help make you a more profitable trader.
It's no secret: Trading financial instruments and playing poker exhibit many similarities. Essentially, both activities require assessing probabilities at a given moment in time in an uncertain environment with limited information, then making decisions based on those probabilities to extract money from other players in the game. Both are zero-sum games..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-30-32-trading-technical-analysis-and-poker-by-sarp-cercioglu-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-30-32-trading-technical-analysis-and-poker-by-sarp-cercioglu-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-30-32-trading-technical-analysis-and-poker-by-sarp-cercioglu-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34336ta,d,"{""minimum-quantity"":""1"",""path"":""ch9s2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:09 (34, 36–38): Talking Cycles With Jeffrey Hirsch by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Talking Cycles With Jeffrey Hirsch by Jayanthi Gopalakrishnan
Jeffrey A. Hirsch is CEO of Hirsch Holdings; editor-in-chief of the Stock Trader’s Almanac and Almanac Investor eNewsletter at www.stocktradersalmanac.com; research consultant at Probabilities Fund Management, LLC; and a Yahoo Finance contributor. He is the author of The Little Book Of Stock Market Cycles (Wiley, 2012) and Super Boom: Why The dow Will Hit 38,820 And How You Can Profit From It (Wiley, 2011). Hirsch is a 26-year Wall Street veteran. He took over from his father, Almanac founder Yale Hirsch, in 2001 and regularly appears on CNBC, Bloomberg, Fox Business, and many other financial media outlets.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Jeff Hirsch via phone on June 29, 2016 about the nature of market cycles, including during US Presidential election years, especially since we find ourselves in one again.
Jeff, I last spoke to you a couple of years ago but given that we are approaching a presidential election I thought we should talk again to hear your thoughts about the markets with the perspective of the elections. But first, could you start out by giving us a brief background of your company, how your father started it, and where it is now?
\nBack in 1966, my father, Yale Hirsch, left Indicator Digest, which was a service started in 1961 by his cousin, Sam Coslow. The Digest became a proving ground for analysts and writers, and continued to be that for many years. And given that the business had taken off with him, Yale had the idea to go out on his own and take all the indicators and put them together in a calendar format so that others could follow the market schedule along with their own schedules..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-34-36-38-talking-cycles-with-jeffrey-hirsch-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-34-36-38-talking-cycles-with-jeffrey-hirsch-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-34-36-38-talking-cycles-with-jeffrey-hirsch-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34346fu,d,"{""minimum-quantity"":""1"",""path"":""ch9s2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:09 (39, 46): Futures For You by Carly Garner"",""caption-linebreaks"":""Futures For You by Carly Garner
TRADING FUTURES SPREADS (PART 1 oF 2)
Could you explain the lingo and basic strategy behind trading futures spreads in the commodity markets?
Futures spreads are a topic that most traders work hard to avoid because of perceived complexity. I must admit, I don’t consider myself a proponent of futures spread trading simply because I’ve yet to witness the strategy work consistently, and moreover, it doesn’t particularly fit my personality. Nevertheless, I think it is important that traders of all account sizes and types be aware of the nuances of futures spread trading and give the strategy fair consideration..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-39-46-futures-for-you-by-carly-garner-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-39-46-futures-for-you-by-carly-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-39-46-futures-for-you-by-carly-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34446wh,d,"{""minimum-quantity"":""1"",""path"":""ch9s2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:09 (40–42, 46): Where To Focus Your Efforts by Stephen Beatson"",""caption-linebreaks"":""Where To Focus Your Efforts by Stephen Beatson
What type of analysis is likely to benefit the active trader? Which field of research is more suited for seeking market outperformance? Which is more tailored for those looking for consistent returns? Let’s find out.
Time is a valuable commodity. So expending time and effort on R&D in areas that hold little or no promise of financial reward is in essence just wasted time, assuming you’re not in the game only for academic enlightenment.
In this article I’ll look at a few categories of financial analysis to try and determine which one is most likely to be of benefit to the active investor or aspiring trader. I’ll also try to ascertain which field of research is more suited for those seeking market outperformance and which is more tailored for those looking for consistent returns..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-40-42-46-where-to-focus-your-efforts-by-stephen-beatson-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-40-42-46-where-to-focus-your-efforts-by-stephen-beatson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-40-42-46-where-to-focus-your-efforts-by-stephen-beatson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344qutr1,d,"{""minimum-quantity"":""1"",""path"":""ch9s2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:09 (43–46): Quick-Scan: TradeShark Add-On Indicators by Darrell Jobman"",""caption-linebreaks"":""Quick-Scan: TradeShark Add-On Indicators by Darrell Jobman
TRADESHARK ADD-ON INDICATORS
\nMarket Technologies, LLC5807
\nOld Pasco Rd., Wesley Chapel, FL 33544
\nPhone: 800 732-5407 or 813 973-0496 (fax 813 973-2700)
\nEmail: info@TradeShark.com
\nWebsite: www.TradeShark.com
\nProduct: Indicator add-ons from Jack Schwager and John Person for the TradeShark platform
\nPrice: $1,495 for each indicator
We all strive to trade like the well-known traders in the industry. So when you use indicators developed by them in a soft-ware platform, if nothing else, you feel as though you are replicating their success. Market Technologies is providing such tools to you by offering proprietary trading indicators for the TradeShark analytical software. In the March 2016 S&C, we covered four of those add-on indicators; here, we will cover two more developed by Jack Schwager and John Person..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-43-46-quick-scan-tradeshark-add-on-indicators-by-darrell-jobman-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-43-46-quick-scan-tradeshark-add-on-indicators-by-darrell-jobman-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-43-46-quick-scan-tradeshark-add-on-indicators-by-darrell-jobman-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34449mu,d,"{""minimum-quantity"":""1"",""path"":""ch9s2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:09 (47, 49): Multiday Sequential Breakouts by Ken Calhoun"",""caption-linebreaks"":""Multiday Sequential Breakouts by Ken Calhoun
In this monthly column covering the topic of breakout trading techniques, this professional daytrader and educator explains how looking for a multiday pattern where volume and price continue upward can simplify your trade scanning.
One of the strongest swing trading stock patterns is a classic 45-degree angle multiday breakout trend. You may have seen this pattern. It’s one of those that you may have wished you had gotten into early on to capitalize on a long-term winning breakout pattern in progress. Here, I’ll show you how you can spot this chart pattern as it’s occurring so you are able to enter in a timely manner..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-47-49-multiday-sequential-breakouts-by-ken-calhoun-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-47-49-multiday-sequential-breakouts-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-47-49-multiday-sequential-breakouts-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344qaby6,d,"{""minimum-quantity"":""1"",""path"":""ch9s2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:09 (48–49): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
STAYING THE COURSE
Is the most important part of your trading business the time you spend in front of your computer placing trades? Yes, that’s important, but what is equally if not more important is the time spent reviewing your trades after the market closes.
Are you familiar with the concept of style drift? It’s a term often heard in the mutual fund industry, and it refers to when those responsible for carrying out the fund activities intentionally diverge from the funds’ stated style of investing or investing objectives..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-48-49-q-a-by-rob-friesen-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-48-49-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-48-49-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov345trti2,d,"{""minimum-quantity"":""1"",""path"":""ch9s2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:09 (50–55): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
\nFor this month’s Traders’ Tips, the focus is John Ehlers’ article in this issue, \""Measuring Market Cycles.\"" Here, we present the September 2016 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-50-55-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-50-55-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-50-55-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov346sest,d,"{""minimum-quantity"":""1"",""path"":""ch9s2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:09 (60–61): Seven Steps To Becoming A Trading Master by Santhosh Kumar V."",""caption-linebreaks"":""Seven Steps To Becoming A Trading Master by Santhosh Kumar V.
Reach for the stars! Don’t give up on the quest for success. Everyone must go through a similar learning curve, and you should know that you’re not alone in this journey to achieve “successful trader” status.
It's easy to think that the market is all about making money. That’s the reason most people are attracted to the stock market in the first place. And it seems like an easy thing to do. But the reality is that you have to go through a learning curve, no matter your background or level of expertise. Once you start dabbling in the markets, there’ll be times when it can be fun and other times when you could get kicked in the face and get hit with a dose of reality..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-60-61-seven-steps-to-becoming-a-trading-master-by-santhosh-kumar-v-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-60-61-seven-steps-to-becoming-a-trading-master-by-santhosh-kumar-v-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-60-61-seven-steps-to-becoming-a-trading-master-by-santhosh-kumar-v-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov346bofo4,d,"{""minimum-quantity"":""1"",""path"":""ch9s2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:09 (62): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
Advanced Concepts For Market Technicians
The 27 Year Picture: Stock Charts, 116 Companies, 1953-1979
Study Helps In Point & Figure Technique
FX Option Performance
The Defensive Value Investor"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-62-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-62-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-62-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov347leto4,d,"{""minimum-quantity"":""1"",""path"":""ch9s2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:09 (7): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
TREND LOVE
\nEditor,
\nI read with interest Kevin Luo’s article, “Falling in Love, With Trends,” in the June 2016 issue of Technical Analysis of STOCKS & COMMODITIES magazine. I’m trying to reproduce his results and am having difficulty. Usually, that means I’ve made a mistake, so maybe the author can help.
On page 10 of the article, it reads “October 21, 2011” as the date that Exxon-Mobile (XOM) went beyond the 20% measure. A 20% rise from the low on August 9, 2011 (67.03) would be 80.44, according to data from Yahoo! Finance..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-7-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-7-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-7-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov348etfp,d,"{""minimum-quantity"":""1"",""path"":""ch9s2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:09 (8–9): ETF Perspectives by Leslie N. Masonson"",""caption-linebreaks"":""ETF Perspectives by Leslie N. Masonson
Are you interested in learning more about using exchange traded funds (ETFs) in your trading? Leslie N. Masonson, an active ETF trader, is president of Cash Management Resources, a financial consulting firm that focuses on ETF strategies. He is the author of Buy-Don’t Hold: Investing With ETFs Using Relative Strength To Increase Returns With Less Risk; and All About Market Timing, as well as Day Trading On The Edge. His website is www.buydonthold.com, where he writes a weekly blog. To submit topics for future columns, reach him at lesmasonson@yahoo.com.
In this first installment of a new bimonthly column, I’ll provide insight into how traders can use ETFs to generate additional trading profits. The focus of this month’s column is selecting an ETF from those in the same category. I’ll begin with a brief look at the ETF explosion to see why ETFs should be considered more closely..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-8-9-etf-perspectives-by-leslie-n-masonson-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-8-9-etf-perspectives-by-leslie-n-masonson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-09-8-9-etf-perspectives-by-leslie-n-masonson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov341whtr,d,"{""minimum-quantity"":""1"",""path"":""ch10o2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:10 (12–19): Which Trend Indicator Wins? by Markos Katsanos"",""caption-linebreaks"":""Which Trend Indicator Wins? by Markos Katsanos
Trends are obvious in retrospect, but identifying them in real time is a different story. Here, we look at four existing trend detection indicators to see how well they do their job. Which one comes out ahead?
Markets can either trend or move in a trading range (consolidate). Each phase requires the use of different types of indicators. In trending markets, you need to use trend-following indicators, such as moving averages, MACD, and so on, whereas for markets that are in a trading range, you need to use oscillators, such as the RSI or stochastics, which use overbought and oversold levels.
AVOID GETTING CAUGHT
\nOne problem with all trending systems is that they only work when the market is trending, which is only about 30% of the time. If you fail to recognize that market conditions are not appropriate for trend system trading, you will be whipsawed out of trades with small to moderate losses, which over time will result in significant losses. On the other hand, in trending markets, prices can remain overbought or oversold for extended periods, and an oscillator-based system will produce premature signals. This is why it’s critical to identify the market phase when choosing which system to use..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-12-19-which-trend-indicator-wins-by-markos-katsanos-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-12-19-which-trend-indicator-wins-by-markos-katsanos-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-12-19-which-trend-indicator-wins-by-markos-katsanos-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov342opwr,d,"{""minimum-quantity"":""1"",""path"":""ch10o2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:10 (20–22): Option Writing And Seasonal Tendencies In Nat(ural) Gas by James Cordier"",""caption-linebreaks"":""Option Writing And Seasonal Tendencies In Nat(ural) Gas by James Cordier
The inexact but powerful tool of seasonal price forecasting really comes into its own when paired with the strategy of option selling. Here’s a perfect example.
Seasonal tendencies in the commodities markets can be tricky to grasp. But you need to at least familiarize yourself with the concept, regardless of whether you’re trading in the futures, option, or equity markets. What exactly are seasonals?
Seasonal price tendencies or “seasonals” are the tendencies for prices of a particular commodity to move in a certain direction during a particular time of year. While tendencies are just that—not to be taken as a guarantee since prices can move counter-seasonally—they tend to occur because of the cyclical nature of supply & demand. In other words, prices tend to move in a particular direction during particular times of year because of underlying fundamentals that tend to occur during those times of the year..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-20-22-option-writing-and-seasonal-tendencies-in-nat-ural-gas-by-james-cordier-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-20-22-option-writing-and-seasonal-tendencies-in-nat-ural-gas-by-james-cordier-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-20-22-option-writing-and-seasonal-tendencies-in-nat-ural-gas-by-james-cordier-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov342crma,d,"{""minimum-quantity"":""1"",""path"":""ch10o2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:10 (24–28): Critical MACD Levels by Kevin Luo"",""caption-linebreaks"":""Critical MACD Levels by Kevin Luo
The MACD is a popular trend-following indicator from which you can develop simple trading rules. Here are the results of some in-depth research that reveals some interesting points that will help you effectively apply the indicator.
Trend-followers are well acquainted with the moving average convergence/divergence (MACD) indicator—the one originally developed by Gerald Appel in 1977. It’s great for identifying trends, but occasionally, especially during extended downtrends and choppy price action, it may not be an effective tool for trend identification. However, the indicator is too valuable to abandon. Is there a way to optimize the indicator to improve its overall effectiveness?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-24-28-critical-macd-levels-by-kevin-luo-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-24-28-critical-macd-levels-by-kevin-luo-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-24-28-critical-macd-levels-by-kevin-luo-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov343exyo3,d,"{""minimum-quantity"":""1"",""path"":""ch10o2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:10 (30–31): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
PRESIDENTIAL OPTIONS (PART 1 OF 2)
When the 2016 election in November produces a US presidential win for one or other of the candidates, how will that affect where traders could focus on for opportunities?
Traders should always look for opportunities, regardless of their political affiliation. As one example of a possible trading opportunity that could present itself by a particular electoral outcome, Republican candidate Donald Trump has stated that one of the first things he will do once elected is repeal universal healthcare. So in that sense, there may very well be opportunities for trading options in healthcare but with bearish option strategies, such as using a long put. While a Trump win could negatively impact healthcare stocks, there are some industries or sectors that could see a substantial benefit with “Donald” in charge..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-30-31-explore-your-options-by-tom-gentile-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-30-31-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-30-31-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34349qu,d,"{""minimum-quantity"":""1"",""path"":""ch10o2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:10 (32–36, 49): Quantifying Stocks For Nonrandomness by Norman J. Brown"",""caption-linebreaks"":""Quantifying Stocks For Nonrandomness by Norman J. Brown
Sure, a buy & hold strategy is easy to implement, but it gives modest returns. Here’s a methodology you can apply that will give you those enhanced returns.
In the well-known book about stock market randomness by Burton G. Malkiel, A Random Walk Down Wall Street, the author concludes that “the degree of nonrandomness is so small that individuals who pay commission costs cannot hope to gain or profit.” To understand this better, recall that a series of sequential numbers is random if each number is independent of all the others. In practical terms, this means that the preceding numbers in the sequence do not give any information from which to derive the values of subsequent numbers in the series. It is as if the sequence has no “memory” of its past.
If you think of these numbers as being the daily closing prices of a stock price series, Malkiel’s statement can be interpreted as meaning that no trading scheme based on these preceding numbers can allow you to trade in a way that will give worthwhile profits above what you would have obtained by simply following a buy & hold (BH) approach..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-32-36-49-quantifying-stocks-for-nonrandomness-by-norman-j-brown-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-32-36-49-quantifying-stocks-for-nonrandomness-by-norman-j-brown-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-32-36-49-quantifying-stocks-for-nonrandomness-by-norman-j-brown-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34349fu,d,"{""minimum-quantity"":""1"",""path"":""ch10o2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:10 (37, 49): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
TRADING FUTURES SPREADS (PART 2 oF 2)
Could you explain the lingo and basic strategy behind trading futures spreads in the commodity markets?
As I discussed last month in this column, futures spread trading strategies deliver a method of speculation with generally mitigated risk. This is because each futures spread trade involves both the purchase and sale of the same commodity with differing expiration months (intracommodity spread) or related but different commodities (intercommodity spread). Despite being a relatively tame approach to participating in the futures markets, spread trading is far from being “easy-peasy.” Let’s look at a few logistical and strategy challenges..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-37-49-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-37-49-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-37-49-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov3434062,d,"{""minimum-quantity"":""1"",""path"":""ch10o2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:10 (38, 40–43, 62): A Chat With Stefanie Kammerman by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""A Chat With Stefanie Kammerman by Jayanthi Gopalakrishnan
Known as “The Stock Whisperer,” Stefanie Kammerman has found her passion in sharing her trading secrets with others who are passionate about trading. She runs an online trading chat room in which she teaches thousands of students how to read the tape and spot the best levels to trade off. She shows participants how to spot when the big money is buying and selling and she stresses the importance of discipline. She can be contacted via her website at www.TheStockWhisperer.com.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Stefanie Kammerman on August 5, 2016 to find out what it is about her that attracts so many traders.
How did you get interested in the financial markets, Stefanie?
In a way, you could say it started from the moment I was born, because my grandmother bought one share of IBM for me. As I got older, that one share intrigued me. I watched my one stock go up and down. It mostly went up and split a few times. If I hadn’t had that one share of IBM, I probably wouldn’t have been watching the market. I think everyone should buy their kids or grandkids some shares, even if it’s just one or two shares, to get them to watch and become aware of the markets.
It wasn’t until after I got out of college that my interest in the markets turned into a career. I majored in psychology, which I loved ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-38-40-43-62-a-chat-with-stefanie-kammerman-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-38-40-43-62-a-chat-with-stefanie-kammerman-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-38-40-43-62-a-chat-with-stefanie-kammerman-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34447qu,d,"{""minimum-quantity"":""1"",""path"":""ch10o2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:10 (44, 47): Quick-Scans: TradingView by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Quick-Scans: TradingView by Jayanthi Gopalakrishnan
TRADINGVIEW
\nEmail: support@tradingview.com
\nWebsite: www.tradingview.com
\nProduct: Online social community for traders with charting and scripting features
\nPrice: Free for basic access; $9.95/mo. and up for Pro; $19.95/mo. and up for Pro Plus; $39.95/mo. and up for Premium
Next time you hear someone say that trading is lonely, ask them to wake up. We’re living in the age of social media, which, in spite of its shortcomings, has made strides in connecting like-minded people. And that applies to traders as well. The days of floor trading may be gone but now we have social media that connects us, gives us a platform to share our opinions with others, and brings opportunities to learn. TradingView is no stranger to the business of connecting traders and investors..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-44-47-quick-scans-tradingview-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-44-47-quick-scans-tradingview-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-44-47-quick-scans-tradingview-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344boba,d,"{""minimum-quantity"":""1"",""path"":""ch10o2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:10 (46–47): Bollinger Band MA Crossover Breakouts by Ken Calhoun"",""caption-linebreaks"":""Bollinger Band MA Crossover Breakouts by Ken Calhoun
This monthly column written by a professional daytrader and educator covers the general topic of breakout trading techniques. This month, he explains how you can use a particular combination of signals to help avoid false breakouts while gaining earlier, stronger indications for entering.
One of the most essential skills for successful breakout trading is to find charts that demonstrate a pattern of increasing volatility. How do you do that? One way is to use indicators. In addition to Wilder’s average directional index (ADX), you can use Bollinger Bands to help you see when volatility is on the rise. This month, I will show you how to use a simple two-step technical trading strategy to combine an early moving average crossover pattern with a classic Bollinger Band “squeeze” breakout trading signal.
TRADING STRATEGY: MA CROSSOVER WITH BOLLINGER BAND “SQUEEZE”
\nIf you’re like many active traders, you may struggle with your entry timing because you saw a technical trading signal after the fact. It was too late to take action. The technique I’ll discuss here can help you avoid this common trading challenge..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-46-47-bollinger-band-ma-crossover-breakouts-by-ken-calhoun-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-46-47-bollinger-band-ma-crossover-breakouts-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-46-47-bollinger-band-ma-crossover-breakouts-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344qaby7,d,"{""minimum-quantity"":""1"",""path"":""ch10o2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:10 (48–49): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
STAYING WITH YOUR PLAN
Last month, we examined the concept of style drift and the different ways it can cause a trader to deviate from his originally stated strategies, rules he wanted to follow, and overall trading plans. This month, I’ll look at the tendency of traders to spontaneously deviate from their strategies to chase returns based on temporary market conditions. Traders believe the market behavior to be the “new norm” and see it through the lens of permanency.
I’ll call this phenomenon “chasing cupcakes” based on a retail trend that has been seen multiple times in the retail food industry. This trend was first observed in the 1990s with the number of frozen yogurt shops that seemed to pop up overnight. In the past few years, this cycle came around again with cupcake shops, that is, shops that are dedicated to selling only cupcakes..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-48-49-q-a-by-rob-friesen-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-48-49-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-48-49-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov3455458,d,"{""minimum-quantity"":""1"",""path"":""ch10o2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:10 (50–52, 54–55, 58): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Markos Katsanos’ article in this issue, “Which Trend Indicator Wins?” Here, we present the October 2016 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-50-52-54-55-58-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-50-52-54-55-58-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-50-52-54-55-58-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov346cupa,d,"{""minimum-quantity"":""1"",""path"":""ch10o2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:10 (60–62): Cultivating Patience by Stella Osoba"",""caption-linebreaks"":""Cultivating Patience by Stella Osoba
What is patience and why is it essential for success in the world of trading? Let’s explore.
“No matter how great the talent or efforts, some things just take time. You can’t produce a baby in one month by getting nine women pregnant.”—Warren Buffett
In our high-speed, digital, multitasking world, attention spans are shorter. With stimuli coming at us from all directions and at breakneck speed, it is difficult, if not almost impossible, to focus our attention on any one thing for significant amounts of time. Patience is often not regarded as a necessary skill, let alone a virtue.
But in trading, this often little-appreciated skill is the bedrock of success. Famed trader Jesse Livermore said, “In the long run, patience counts more than any other single element except knowledge.” Here, we’ll take a look at the skill of patience, what it is, and why its mastery is essential for success in the world of trading..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-60-62-cultivating-patience-by-stella-osoba-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-60-62-cultivating-patience-by-stella-osoba-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-60-62-cultivating-patience-by-stella-osoba-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34758le,d,"{""minimum-quantity"":""1"",""path"":""ch10o2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:10 (7, 58): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
ROULETTE WHEEL
\nEditor,
\nThis is to bring to your attention that an opening picture for the article by Norman J. Brown in your August 2016 issue, “The Subtle Aspects Of Expectancy,” does a disservice to the author’s hard work.
In the article, an American roulette with 38 sectors is considered. However, the art at the beginning of the article depicts a European version with 37 sectors.
Moreover, the image was likely computer generated and, erroneously, there is no sector 36; instead, there are two sectors numbered “26.”
Were casino owners being that attentive to their actual equipment, no betting strategies from the article would be necessary for a gambler to profit in a big way.
-Simon Temkin
Author Norman Brown replies:
You have a sharp eye."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-7-58-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-7-58-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-7-58-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34828me,d,"{""minimum-quantity"":""1"",""path"":""ch10o2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:10 (8–10, 28): The Measure Rule For Price Prediction by Thomas Bulkowski"",""caption-linebreaks"":""The Measure Rule For Price Prediction by Thomas Bulkowski
You stare at a chart to try and figure out where prices will go. Will they go up or down? Here’s one way to make a prediction using the height of common chart patterns, and the nice thing is, you can do it with a high degree of probability.
Want to know what next week’s stock price will be? Me, too. No one knows for sure, of course, but we can make an educated guess. One way to do that is to use the measure rule for chart patterns.
When people and institutions trade stocks, their transactions form peaks, valleys, and straight-line runs. If you connect those squiggles on the chart, they form what is known as chart patterns.
For example, suppose the stock shown in Figure 1 makes you drool when it bottoms at $38.30 (A), a price you think is a bargain. You buy 1,000 shares and hope that the stock climbs to 45. In the following weeks, the stock behaves and peaks near 41 (C)..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-8-10-28-the-measure-rule-for-price-prediction-by-thomas-bulkowski-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-8-10-28-the-measure-rule-for-price-prediction-by-thomas-bulkowski-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-10-8-10-28-the-measure-rule-for-price-prediction-by-thomas-bulkowski-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34114he,d,"{""minimum-quantity"":""1"",""path"":""ch11n2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:11 (10–12, 14): Hedging Futures by Carley Garner"",""caption-linebreaks"":""Hedging Futures by Carley Garner
Trading futures contracts outright can be challenging and expensive for those in the wrong place at the wrong time. How can you mitigate risks without reducing your buying power? Here are some strategies you can apply.
Beginning commodity traders tend to migrate to the practice of trading futures contracts as opposed to options because trading futures seems simpler. After all, a futures trader has the ability to place a stop-loss order, easily determine his profit & loss with absolute certainty based on incremental price movements, and has nearly 24-hour liquid market access. However, there are some flaws in this thinking ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-10-12-14-hedging-futures-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-10-12-14-hedging-futures-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-10-12-14-hedging-futures-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34118ga,d,"{""minimum-quantity"":""1"",""path"":""ch11n2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:11 (15, 18): Gaps & Bullish Cup Breakouts by Ken Calhoun"",""caption-linebreaks"":""Gaps & Bullish Cup Breakouts by Ken Calhoun
This monthly column written by a professional daytrader and educator covers the general topic of breakout trading techniques. This month, he explains how you can improve your chances for success in gap trading by combining gap trades with easy-to-see cup entry patterns.
Gaps—they are one of the most powerful chart patterns you can trade, but many traders are uncertain about when to enter new positions. A simple confirmation signal you can use when trading gaps is to wait until after a bullish cup breakout forms. Entering your trade above this bullish cup can be a particularly effective momentum daytrading and swing trading strategy.
The reason this approach can be effective is because the left side of the cup shows any initial selling pressure following the gap up, while the right side of the cup shows new buyers coming in. You then wait and enter your long position above the initial cup pattern resistance level following the gap ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-15-18-gaps-bullish-cup-breakouts-by-ken-calhoun-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-15-18-gaps-bullish-cup-breakouts-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-15-18-gaps-bullish-cup-breakouts-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov341dofu,d,"{""minimum-quantity"":""1"",""path"":""ch11n2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:11 (16–18): Does Fully Automated Trading Software Work? by James Breen"",""caption-linebreaks"":""Does Fully Automated Trading Software Work? by James Breen
Can fully automated trading systems be profitable? What about drawdowns? Is it possible to set up your software to trade your account and then go on your way, or is that idea too good to be true? We’ll take a look at automation and what you might need to do to keep your system working.
There’s been some debate as to whether fully automated trading software systems are a valid approach to trading. This is probably no surprise, since some systems introduced might have worked for a while, only to fail miserably later ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-16-18-does-fully-automated-trading-software-work-by-james-breen-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-16-18-does-fully-automated-trading-software-work-by-james-breen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-16-18-does-fully-automated-trading-software-work-by-james-breen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34242et,d,"{""minimum-quantity"":""1"",""path"":""ch11n2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:11 (20–21, 42): ETF Sector Investing by Leslie N. Masonson"",""caption-linebreaks"":""ETF Sector Investing by Leslie N. Masonson
Are you interested in learning more about using exchange traded funds (ETFs) in your trading? Leslie N. Masonson, an active ETF trader, is president of Cash Management Resources, a financial consulting firm that focuses on ETF strategies. He is the author of Buy—Don’t Hold: Investing With ETFs Using Relative Strength To Increase Returns With Less Risk; and All About Market Timing, as well as Day Trading On The Edge. His website is www.buydonthold.com, where he writes a weekly blog. To submit topics for future columns, reach him at lesmasonson@yahoo.com.
First, some background. Sector investing came into its own when Fidelity Investments introduced five Fidelity Select sector mutual funds in 1981. This was expanded over the years—28 funds introduced in the 1980s and six thereafter—to the current 39 no-loads. A few of these funds were usually in the top rankings of actively managed mutual funds for many five- and 10-year performance periods. These included technology, energy, software, and biotechnology sectors ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-20-21-42-etf-sector-investing-by-leslie-n-masonson-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-20-21-42-etf-sector-investing-by-leslie-n-masonson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-20-21-42-etf-sector-investing-by-leslie-n-masonson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov342sein,d,"{""minimum-quantity"":""1"",""path"":""ch11n2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:11 (22–23): A Sentiment Indicator For Trading The Euro by Philipe Saroyan"",""caption-linebreaks"":""A Sentiment Indicator For Trading The Euro by Philipe Saroyan
The traditional put/call ratio is used as a contrarian indicator. Here, we add a twist to enhance the ratio and use it as a coinciding indicator.
When markets are not trending, what analysis do you apply? Sentiment analysis for trading the euro is one strategy worth looking into, especially in times of nontrending markets. In this article, I will discuss a put/call ratio based on open interest. It is different than the traditional put/call ratio, which uses a summation of total volume. This enhanced put/call ratio is similar to Schaeffer’s open interest ratio (SOIR). If you net out call and put writing, it creates a better statistic for creating a trading indicator. Note that it is a coinciding indicator rather than a contrarian indicator ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-22-23-a-sentiment-indicator-for-trading-the-euro-by-philipe-saroyan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-22-23-a-sentiment-indicator-for-trading-the-euro-by-philipe-saroyan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-22-23-a-sentiment-indicator-for-trading-the-euro-by-philipe-saroyan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34235ex,d,"{""minimum-quantity"":""1"",""path"":""ch11n2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:11 (24, 35): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
PRESIDENTIAL OPTIONS (PART 2 OF 2)
When the 2016 election in November produces a US presidential win for one or other of the candidates, how will that affect where traders could focus on for opportunities?
Last month in part 1 of this column I discussed an overall market scenario that could occur should Donald Trump become the next president of the United States. This month, I’ll take a look at what sectors could benefit should Hillary Clinton win the election.
But first, please note: As I wrote last month and will state again here at the outset, I am not going to intentionally discuss my political views nor try and bring about discussion and debate about who should win or why one candidate may be better than the other ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-24-35-explore-your-options-by-tom-gentile-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-24-35-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-24-35-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov342chbi,d,"{""minimum-quantity"":""1"",""path"":""ch11n2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:11 (26–29): Choosing A Binary Option Provider by Gail Mercer"",""caption-linebreaks"":""Choosing A Binary Option Provider by Gail Mercer
What are binary options and what should you look for—and avoid—in a provider? Here’s a rundown.
While some traders instantly think “scam alert!” when they hear the words binary options, the truth is that binary options can provide excellent and profitable trading alternatives for volatile and nonvolatile markets. The key is choosing a good binary option provider. I’ll begin by look-ing at what binary options are and then offer a few guidelines on how to choose the best binary option provider ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-26-29-choosing-a-binary-option-provider-by-gail-mercer-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-26-29-choosing-a-binary-option-provider-by-gail-mercer-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-26-29-choosing-a-binary-option-provider-by-gail-mercer-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov343waan,d,"{""minimum-quantity"":""1"",""path"":""ch11n2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:11 (30–31): Waves And Profit-Taking by Howard Wang"",""caption-linebreaks"":""Waves And Profit-Taking by Howard Wang
Stock prices move in wave patterns. But what determines that price movement? Let’s take a look at wave theory to see if it can shed some light … or is there something better?
Even if you’re not familiar with wave theory or subscribe to it, you have probably realized that stock prices move in patterns that resemble waves. Given that prices move in waves, it might seem logical that the movement of stock prices could be determined by wave theory. But can it?
If you think about why waves form, then it makes some sense to use wave theory to analyze the stock market. So why not look at this more closely. I’ll start by considering two essential points of wave theory. The first is that human behavior can be predicted, and the second is that stock market waves are based on human behavior ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-30-31-waves-and-profit-taking-by-howard-wang-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-30-31-waves-and-profit-taking-by-howard-wang-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-30-31-waves-and-profit-taking-by-howard-wang-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34345qa,d,"{""minimum-quantity"":""1"",""path"":""ch11n2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:11 (32, 45): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
SOME RULES FOR PAIR TRADING
Most of my past columns here have been centered on the business of trading, psychology, discipline, and the trader’s review process that allows for that continual state of improvement, promotes focus, and facilitates consistency.
With the past few months of choppy market behavior, the lofty heights to which it has risen, concerns over a possible large pullback, and potential increase in volatility, there has been resurgence in the trading of equity pairs. Because of that, many have asked me to comment on the rules of thumb surrounding pair trading. So this month, we’re going to branch out and chat about trading pairs, and maybe continue this topic in the next few issues ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-32-45-q-a-by-rob-friesen-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-32-45-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-32-45-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov343fufo,d,"{""minimum-quantity"":""1"",""path"":""ch11n2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:11 (34–35): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
OPTION SPREAD TRADING: TO LEG IN OR NOT?
Is it necessary for option spread traders to have a spread-capable trading platform?
Not only is it not necessary for option spread traders to utilize a spread trading platform, in many cases, it is not ideal to use them due to differences in liquidity and fill quality. I would argue that in most liquid markets, traders are better served legging into spreads as opposed to entering a packaged spread order on a single ticket ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-34-35-futures-for-you-by-carley-garner-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-34-35-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-34-35-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34338ad,d,"{""minimum-quantity"":""1"",""path"":""ch11n2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:11 (36, 38–42): Adam Packard: Futures, Simplified by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Adam Packard: Futures, Simplified by Jayanthi Gopalakrishnan
With experience in virtually every aspect of the commodity futures industry from phone clerk to vice president of operations, Adam Packard can be considered a “go to” person when it comes to learning about trading futures. He received a B.A. in economics from The Ohio State University in 1992 and has continued his futures education by taking several courses at the Chicago Mercantile Exchange over the years. He attained his Series 3 commodity brokerage license in 1992 and became a full-time broker in 1993 working for his father’s company. He was a broker in Chicago for 10 years before moving to Florida and opening his own Introducing Brokerage company in 2002. In 2006 he relocated back to Chicago and joined The Zaner Group. Currently he is VP, Operations for Zaner, running its order desk and risk management department.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Adam Packard on September 7, 2016 about how futures can be accessible to the self-directed trader or investor.
Can you start off by telling us how you got interested in the financial markets?
\nMy father was a commodity broker and had a seat on the exchange, but I wasn’t planning on getting into the commodities business even though I earned an economics degree from Ohio State. In my opinion, if you want to get a job in the commodity markets, you can have a degree in anything as long as you’re a good communicator, detail oriented, and a hard worker ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-36-38-42-adam-packard-futures-simplified-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-36-38-42-adam-packard-futures-simplified-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-36-38-42-adam-packard-futures-simplified-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344reww,d,"{""minimum-quantity"":""1"",""path"":""ch11n2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:11 (44–45): Review: www.StockFetcher.com by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Stocks & Commodities V. 34:11 (44–45): Review: www.StockFetcher.com by Jayanthi Gopalakrishnan
WWW.STOCKFETCHER.COM\n
How do you decide which stocks to trade? It’s one thing to pick stocks randomly, but if you consider yourself a smart trader, the ideal way to decide what you want to trade will be to have a set of criteria to look for. If stocks meet those specific conditions you have worked so hard to figure out, you should have a handful of stocks to add to your watchlist. You then wait for that opportune moment to place a trade. Selecting the right stock to trade is one part of the battle, and as a seasoned trader, you probably use a stock screening tool. They’re easy to come by, but here’s one I stumbled upon that is worth bringing to your attention ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-44-45-review-www-stockfetcher-com-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-44-45-review-www-stockfetcher-com-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-44-45-review-www-stockfetcher-com-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344bofo,d,"{""minimum-quantity"":""1"",""path"":""ch11n2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:11 (47): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
Infrastructure As An Asset Class: Investment Strategy, Sustainability, Project Finance And PPP, second edition
How To Measure Anything In Cybersecurity Risk
The ETF Handbook: How To Value And Trade Exchange Traded Funds, second edition
2016 Stocks, Bonds, Bills, And Inflation (SBBI) Yearbook"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-47-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-47-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-47-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34452tr,d,"{""minimum-quantity"":""1"",""path"":""ch11n2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:11 (48–50, 52–55): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is James Breen’s article in this issue, \""Does Fully Automated Trading Software Work?\"" Here, we present the September 2016 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-48-50-52-55-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-48-50-52-55-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-48-50-52-55-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov346lefr,d,"{""minimum-quantity"":""1"",""path"":""ch11n2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:11 (60–62): Learn From The Pros by Solomon Chuama"",""caption-linebreaks"":""Learn From The Pros by Solomon Chuama
Professional traders use different analysis techniques to successfully trade price action in the currency markets. How do you achieve that professional status? Learn how one trader transitioned from an amateur trader to a successful trader.
You have a string of winning trades, you think you’ve figured it all out, and then one trade comes along and wipes out all of your winnings. You start all over again, hoping for a better outcome. Alas, you again find your-self in a situation where you feel you’re just not getting ahead in this game. You’re not alone. Many traders go through this type of pain. Some may give up quickly but others will keep trying until they figure out how to play the markets ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-60-62-learn-from-the-pros-by-solomon-chuama-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-60-62-learn-from-the-pros-by-solomon-chuama-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-60-62-learn-from-the-pros-by-solomon-chuama-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov347leto5,d,"{""minimum-quantity"":""1"",""path"":""ch11n2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:11 (7): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
EXCELLENT MAGAZINE
Editor,
\nYour magazine is excellent. I like the interviews the best, such as the ones you did with Tina Logan and Stephen Bigalow. I enjoyed this year’s series about Richard D. Wyckoff by Stella Osoba, as I am interested in the history of technical analysis. I’m also interested in the tools and systems used pre-computer, because what is new is not necessarily better.
\n-J. Levine"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-7-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-7-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-7-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34846ve,d,"{""minimum-quantity"":""1"",""path"":""ch11n2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:11 (8–9, 46): Vertical Runup by Thomas Bulkowski"",""caption-linebreaks"":""Vertical Runup by Thomas Bulkowski
Sometimes you see a price move that just goes vertical. What happens after that move ends? The answer may be obvious to you, but there may be ways to find trading opportunities after the run is exhausted.
Many times I have watched a stock go vertical and wondered how long it would take before the stock starved of oxygen and the run died. Perhaps you have wondered the same thing about a move in a stock you owned. After the vertical move ends, what happens?
The obvious answer is that price drops. Of course it does! However, price actually continues rising 21% of the time, but at a slower pace. The other 79% of the time sees price give back just over half the rise. Those are some of the results I found when studying the vertical runup pattern for my new book, Chart Patterns: After The Buy ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-8-9-46-vertical-runup-by-thomas-bulkowski-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-8-9-46-vertical-runup-by-thomas-bulkowski-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-11-8-9-46-vertical-runup-by-thomas-bulkowski-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov3411458,d,"{""minimum-quantity"":""1"",""path"":""ch12d2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:12 (10–12, 14–16, 58): Pair Trading With A Twist by Domenico D’Errico"",""caption-linebreaks"":""Pair Trading With A Twist by Domenico D’Errico
Trading stock pairs may be something that you may not think about much. But if market conditions are such that no trading methodology of yours is going to work, it’s best to keep your options open. Here, we look at pair trading to find which approach works best for trading them.
Mature markets like US/European stocks and futures exchanges are getting crowded. Globalization, easy access to trading platforms, and low brokerage commissions are attracting thousands of people from all over the world to trade financial markets. Although this increases trading volume and brings more liquidity to the markets, it can cause an exponential noise increase on price charts ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-10-12-14-16-58-pair-trading-with-a-twist-by-domenico-d-errico-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-10-12-14-16-58-pair-trading-with-a-twist-by-domenico-d-errico-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-10-12-14-16-58-pair-trading-with-a-twist-by-domenico-d-errico-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34124ap,d,"{""minimum-quantity"":""1"",""path"":""ch12d2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:12 (18–22, 24): Applying Dewey’s Cycle Harmonics by Lyle Pai"",""caption-linebreaks"":""Applying Dewey’s Cycle Harmonics by Lyle Pai
Faced with a large and ever-expanding list of possible cycles to choose from, how does anyone find the right cycles to trade with? Here’s a look at some of the different approaches to cycle analysis and what drives these types of cycles so you can hunt for those that best suit your needs.
What’re cycles without a little history? In 1967, Edward Russell Dewey wrote and published “The Case For Cycles.” It was an attempt by Dewey, and not his first, to tell anyone who was interested in these wonderful cycles that he and his colleagues at the Foundation for the Study of Cycles were finding in all walks of life. From cycles of the Canadian lynx to pig iron production, from sunspots to the Dow Jones Industrial Average, he wrote that he had irrefutable proof that these cycles existed and that they were not the product of chance ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-18-22-24-applying-dewey-s-cycle-harmonics-by-lyle-pai-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-18-22-24-applying-dewey-s-cycle-harmonics-by-lyle-pai-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-18-22-24-applying-dewey-s-cycle-harmonics-by-lyle-pai-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34241fu,d,"{""minimum-quantity"":""1"",""path"":""ch12d2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:12 (25, 41): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
USING STOP ORDERS IN COMMODITY OPTION TRADING
\nHow can commodity option sellers protect positions from unlimited risk using stop orders?
\nSelling commodity options is attrac-tive because each individual endeavor is a high-probability venture. It has been said that anywhere from 70% to 90% of all options expire worthless, which immediately gives an edge to the seller of an option over the buyer of the same option. Nevertheless, despite favorable odds of success on each trade, option sellers must contend with the risk of the low-probability losers eating the profits of successful trades, and worse ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-25-41-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-25-41-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-25-41-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov342iswa,d,"{""minimum-quantity"":""1"",""path"":""ch12d2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:12 (26–29): Is Wall Street A Casino? by Norman J. Brown"",""caption-linebreaks"":""Is Wall Street A Casino? by Norman J. Brown
Do stocks have a random characteristic similar to a roulette wheel, and can we gain a winning edge by trading equities? Here, we simulate Wall Street stocks on an artificial roulette wheel to find the answer.
In my August 2016 S&C article “The Subtle Aspects Of Expectancy,” I developed a larger winning level for roulette that retained the same in-house winning expectancy of 5.62% and indicated the resulting profit/loss spread. Then this thought occurred to me: Why not use the same approach to simulate Wall Street stocks (equity type) on an artificial roulette wheel, with the required adjustments, and then study the output with Monte Carlo simulation?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-26-29-is-wall-street-a-casino-by-norman-j-brown-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-26-29-is-wall-street-a-casino-by-norman-j-brown-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-26-29-is-wall-street-a-casino-by-norman-j-brown-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34343tr,d,"{""minimum-quantity"":""1"",""path"":""ch12d2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:12 (30–32, 43): Trading the Nonfarm Employment Report by Gail Mercer"",""caption-linebreaks"":""Trading the Nonfarm Employment Report by Gail Mercer
Trading the nonfarm employment report can be dangerous and result in a margin call if you are on the wrong side of the market. Here’s a better way to take advantage of high volatility using binary options.
The nonfarm employment report is known to create market volatility, which can move the forex, commodities, and futures markets. To get an idea of how markets can move when this report is released, I have summarized the average movement for each of the instruments from my 2015 market volatility report in the table in Figure 1 ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-30-32-43-trading-the-nonfarm-employment-report-by-gail-mercer-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-30-32-43-trading-the-nonfarm-employment-report-by-gail-mercer-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-30-32-43-trading-the-nonfarm-employment-report-by-gail-mercer-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov343exyo4,d,"{""minimum-quantity"":""1"",""path"":""ch12d2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:12 (33): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
’TIS THE SEASON TO BUY COMMODITIES
\nDecember is here, and for most of you, it’s time to watch the landscape change from green to not-so-green. There is, however, another green I am interested in looking at, and that has to do with seasonal trades that typically happen in December.
\nNow that the presidential election is out of the way and the idea of a new president has been digested (along with Thanksgiving dinner), stuffing our stock-ings with holiday trades does make a lot of sense, so let’s look at that landscape for December patterns in the stock market ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-33-explore-your-options-by-tom-gentile-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-33-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-33-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov343usra,d,"{""minimum-quantity"":""1"",""path"":""ch12d2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:12 (34–38): Using Ratios by Daniel J. Subach"",""caption-linebreaks"":""Using Ratios by Daniel J. Subach
Sometimes adding a sprinkle of fundamental analysis to your toolkit doesn’t hurt. Here are some ratios you could use to judiciously evaluate your trading decisions.
Which stocks should you invest in? A technical analyst may not give much weight to fundamental analysis and may pick stocks by looking at charts. But that can sometimes lead to trading stocks that may not be ideal, resulting in bad trades that you may hold onto for much longer than you had expected. To avoid such situations, it may be worth your while to look at a few fundamental indicators ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-34-38-using-ratios-by-daniel-j-subach-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-34-38-using-ratios-by-daniel-j-subach-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-34-38-using-ratios-by-daniel-j-subach-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344mesw,d,"{""minimum-quantity"":""1"",""path"":""ch12d2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:12 (40–41): Mean-Reversion Swing Trading by Ken Calhoun"",""caption-linebreaks"":""Mean-Reversion Swing Trading by Ken Calhoun
This month, we take a look at a technique for entering a long position in a trend continuation following a pullback after a breakout.
Entering new trades following a 50% retracement, also known as a mean reversion, can provide you with a second opportunity to enter a strong-trending stock following a pullback. You can use this technical trading strategy with multiple timeframes, including both swing and daytrading. This article will show you how to swing trade mean-reversion pivot entries (I’ll cover intraday trading in an upcoming issue) ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-40-41-mean-reversion-swing-trading-by-ken-calhoun-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-40-41-mean-reversion-swing-trading-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-40-41-mean-reversion-swing-trading-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344qaby8,d,"{""minimum-quantity"":""1"",""path"":""ch12d2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:12 (42): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
INCREASING PROFIT CONSISTENCY
Last December, I wrote in this column about why the Fed couldn’t raise interest rates. Well, what did they go and do? They raised rates, just to prove me wrong. This December, I didn’t want to touch that topic again, so I decided to treat you to hearing from a newer proprietary trader at Bright Trading—we’ll call him Trader Z—to see his changing perspective on the market and look at the path his career is taking ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-42-q-a-by-rob-friesen-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-42-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-42-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34446de,d,"{""minimum-quantity"":""1"",""path"":""ch12d2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:12 (44, 46–48): Denham Ward & Marge Sherald On Machines That Think by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Denham Ward & Marge Sherald On Machines That Think by Jayanthi Gopalakrishnan
How can the intelligence of machines help you in your trading? As it turns out, with the help of neural networks, you can use your software to mimic how you think. To help shed light on the subject, we picked the brains of two people who have the knowledge and expertise in applying neural networks to the financial markets.
\nDenham Ward is CEO of Ward Systems Group. He started in the neural network field programming neural network hardware acceleration boards for Ward Systems Group over a college summer break. He then worked at the University of Colorado applying neural networks in medical and anesthesiology research. After graduating with a master’s degree in electrical engineering, he began working with Ward Systems Group as the lead developer of NeuroShell Trader before becoming CEO.
\nMarge Sherald is president of Ward Systems Group and has authored several articles on financial forecasting, expert systems, and neural networks. She teaches NeuroShell Trader seminars and assists customers in developing trading models. She creates training videos and documentation for both NeuroShell Trader and their general purpose artificial intelligence software. Sherald has a BS in communications and computer science."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-44-46-48-denham-ward-marge-sherald-on-machines-that-think-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-44-46-48-denham-ward-marge-sherald-on-machines-that-think-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-44-46-48-denham-ward-marge-sherald-on-machines-that-think-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov344prre3,d,"{""minimum-quantity"":""1"",""path"":""ch12d2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:12 (49–50): Product Review: ChartCon 2016 by Leslie N. Masonson"",""caption-linebreaks"":""Product Review: ChartCon 2016 by Leslie N. Masonson
STOCKCHARTS.COM
\n11241 Willows Rd., Suite 320 Redmond, WA 98052
\nInternet: www.stockcharts.com
\nEmail: support@stockcharts.com
\nProduct: Technical analysis website
\nPrice: Subscription packages range from $14.95 to $49.95 per month. For details, see website.
StockCharts.com broadcast its first virtual ChartCon conference from Napa Valley, CA on September 23–24, 2016. Almost 1,400 registrants from around the world tuned in via their computers, laptops, and phones. This was the fourth year for the ChartCon event, but previously, attendance was in person. This live-streamed event focused on technical analysis as well as provided an investment education to help attendees improve their skills and generate better results ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-49-50-product-review-chartcon-2016-by-leslie-n-masonson-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-49-50-product-review-chartcon-2016-by-leslie-n-masonson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-49-50-product-review-chartcon-2016-by-leslie-n-masonson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34554tr,d,"{""minimum-quantity"":""1"",""path"":""ch12d2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:12 (51–52, 54–55): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Domenico D’Errico’s article in this issue, “Pair Trading With A Twist.” Here, we present the December 2016 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-51-52-54-55-traders-tips-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-51-52-54-55-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-51-52-54-55-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov346howm,d,"{""minimum-quantity"":""1"",""path"":""ch12d2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:12 (60–61): How Much Can I Really Make From Trading? by Azeez Mustapha"",""caption-linebreaks"":""How Much Can I Really Make From Trading? by Azeez Mustapha
We trade because we want to make money, but how much can a trader realistically make per day, week, month, quarter, or year? Read on to find out what goal you should set.
How much can I make from trading? This is the question that most traders, from beginners to pros, ask. But the question doesn’t have a straightforward answer. Our goal, as traders, is to make money, although money is really a by-product of a good trading plan ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-60-61-how-much-can-i-really-make-from-trading-by-azeez-mustapha-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-60-61-how-much-can-i-really-make-from-trading-by-azeez-mustapha-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-60-61-how-much-can-i-really-make-from-trading-by-azeez-mustapha-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov346bofo5,d,"{""minimum-quantity"":""1"",""path"":""ch12d2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:12 (62): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
FinTech Innovation: From Robo-Advisors To Goal-Based Investing And Gamification
Objectives And Key Results: Driving Focus, Alignment, And Engagement With OKRs
SAS Data Analytic Development: Dimensions Of Software Quality"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-62-books-for-traders-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-62-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-62-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov347leto6,d,"{""minimum-quantity"":""1"",""path"":""ch12d2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:12 (7): Letters to S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters to S&C by Technical Analysis, Inc.
KAUFMAN EFFICIENCY RATIO
\nEditor,
\nI was very pleased to see the efficiency ratio (ER) included in Markos Katsanos’ October 2016 article, “Which Trend In-dicator Wins?” and also gratified that it ranked well in performance. Katsanos’ approach was very consistent in the way he defined the rules, sensible, and quite different from the way I have used ER to define a trend, that is, as a variable for the exponential smoothing factor ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-7-letters-to-s-c-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-7-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-7-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34841fu,d,"{""minimum-quantity"":""1"",""path"":""ch12d2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:12 (8–9, 41): Futures Margins: What, Why, And How by Roger Barone"",""caption-linebreaks"":""Futures Margins: What, Why, And How by Roger Barone
Most traders are familiar with how margins on equities work, but what about margins on futures? Here, we look at the unique characteristics of futures margins to understand their nuances.
Margin, when trading futures, is a little different than for other securities. Think of it as a performance bond. It’s the minimum amount of money required to be in your account with your broker in order to trade a particular futures contract or futures option contract. This amount of money varies from market to market and can differ for daytrading versus position trading (that is, holding positions overnight). The purpose of this deposit (or earnest money) is to make sure that whoever is trading has money in their account to pay for possible losses on that trade ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-8-9-41-futures-margins-what-why-and-how-by-roger-barone-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-8-9-41-futures-margins-what-why-and-how-by-roger-barone-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-12-8-9-41-futures-margins-what-why-and-how-by-roger-barone-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov341gafa,d,"{""minimum-quantity"":""1"",""path"":""ch13bis204"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:13 (12–17): Gann Fans & Kondratieff Waves by Koos van der Merwe"",""caption-linebreaks"":""Gann Fans & Kondratieff Waves by Koos van der Merwe
What’s in store for the markets in 2016? Here’s a look at two methods we can use to help predict critical reversal points in the market. We certainly shouldn’t bet our life on them, but in the past, they’ve come pretty close to what actually occurred. You be the judge.
In the years since the death of W.D. Gann in 1955, many traders have attempted to replicate his predictions and trading techniques, some successfully, but most without any success at all. When a friend of mine, David Ezekial, went to look at W.D. Gann’s study after Gann had passed away, he told me that he found a study filled with papers accumulated over a lifetime of research. None of what he read over the four hours he spent there going through many of the documents identified the single technique Gann had used to produce the remarkable results he achieved in his trading. Ezekial left the study disappointed at what he had not found..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-13-12-17-gann-fans-kondratieff-waves-by-koos-van-der-merwe-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-13-12-17-gann-fans-kondratieff-waves-by-koos-van-der-merwe-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-13-12-17-gann-fans-kondratieff-waves-by-koos-van-der-merwe-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov341apch,d,"{""minimum-quantity"":""1"",""path"":""ch13bis204"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:13 (18–21): Applying The Chart Aspect Ratio by Martha Stokes, CMT"",""caption-linebreaks"":""Applying The Chart Aspect Ratio by Martha Stokes, CMT
Have you ever thought about aspect ratio when setting up your stock charts? Here we explore how to maintain the integrity of the aspect ratios so you can easily analyze charts, identify trends, and perform reliable technical pattern analysis.
Technical traders rarely consider aspect ratio when setting up their stock charts. Most stock market websites also fail to use proper aspect ratio when providing charts to the general retail trading crowd who visit their websites. The lack of proper aspect ratios often skews the trend, distorts price and indicator patterns, and ultimately causes misinterpretation of technical analysis, which results in weak stock picks..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-13-18-21-applying-the-chart-aspect-ratio-by-martha-stokes-cmt-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-13-18-21-applying-the-chart-aspect-ratio-by-martha-stokes-cmt-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-13-18-21-applying-the-chart-aspect-ratio-by-martha-stokes-cmt-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34244ge,d,"{""minimum-quantity"":""1"",""path"":""ch13bis204"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:13 (22–23, 44): Getting Expert Advice by Rudy Teseo"",""caption-linebreaks"":""Getting Expert Advice by Rudy Teseo
Do you do a better job of chart analysis than your program’s expert advisor? Try this test.
I’ve always held that the only sure way to make a killing in the market is to shoot your butcher (grin). Seriously, though, we all could use some outside help in analyzing our charts, and I’ve been fortunate in that I’ve had some great help for the past 12 years or so. That help has come from the artificial intelligence (AI) found in my charting program and in my point & figure (P&F) program. I’m hoping that this article will get all you chartists out there to contact your software provider and insist that the next revision include an expert analyst if it doesn’t already..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-13-22-23-44-getting-expert-advice-by-rudy-teseo-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-13-22-23-44-getting-expert-advice-by-rudy-teseo-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-13-22-23-44-getting-expert-advice-by-rudy-teseo-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34236fo,d,"{""minimum-quantity"":""1"",""path"":""ch13bis204"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:13 (24–26, 36): Four Gaps And Their Technical Significance by Phillip Duke, PhD"",""caption-linebreaks"":""Four Gaps And Their Technical Significance by Phillip Duke, PhD
Gaps can help or wreak havoc on your trading. Here we show you how you can recognize four different types of gaps, the sentiments associated with them, and how to employ them.
The four different types of gaps are initiation, continuation, trading, and exhaustion gaps; the gap type depends on the sentiment that created it. Technical analysis of a trading position includes identification of gaps and determining and evaluating the sentiments that created them. An upside trading gap occurs when there is no trading between the prior day’s high and the succeeding day’s low; a downside trading gap occurs when there is no trading between the prior day’s low and the succeeding day’s high. Bar and candle charts show gaps as blank price space..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-13-24-26-36-four-gaps-and-their-technical-significance-by-phillip-duke-phd-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-13-24-26-36-four-gaps-and-their-technical-significance-by-phillip-duke-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-13-24-26-36-four-gaps-and-their-technical-significance-by-phillip-duke-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34220re,d,"{""minimum-quantity"":""1"",""path"":""ch13bis204"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:13 (28–36): 2016 Readers’ Choice Awards by Technical Analysis, Inc."",""caption-linebreaks"":""2016 Readers’ Choice Awards by Technical Analysis, Inc.
We are pleased to present the Technical Analysis of STOCKS & COMMODITIES magazine 2016 Readers’ Choice Awards (RCA). Each year, we put before our readers a ballot of products and services related to technical analysis and trading. The following pages present the products and services you and your peers chose this year as your favorites.
The Readers’ Choice Awards begins each year with a list of products gathered by the editors of STOCKS & COMMODITIES, with space for write-in votes (given that our list doesn’t claim to be complete). Then, to find out what our readers find to be the most useful for their trading, we ask them to choose their favorite products or the ones they find most useful from various categories by going to our website, Traders.com, and filling out the survey there. After that, we compile the results, just in time for the Bonus Issue you hold in your hands.
Products are categorized by their primary purpose. Just because a service or product is not listed does not necessarily mean that the product does not have features germane to the category. In addition, some categories are divided by cost so that the comparisons can be made on a more level playing field.
The winners in the Readers’ Choice Awards are almost always the dominant players in their niche, and rightfully so. You may have special needs for your trading, however, so you should keep in mind those products that are not the big names in the category of your interest before you make your final decision. The RCA is designed to be an aid for you when you are deciding on which of the numerous products and services currently available to use for your trading and investing. With that in mind, we think you’ll find the Readers’ Choice a terrific guide to products and services that you’ll be interested in."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-13-28-36-2016-readers-choice-awards-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-13-28-36-2016-readers-choice-awards-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-13-28-36-2016-readers-choice-awards-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov34340fo,d,"{""minimum-quantity"":""1"",""path"":""ch13bis204"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:13 (38, 40–43): Focus On The Positive With Brett Steenbarger by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Focus On The Positive With Brett Steenbarger by Jayanthi Gopalakrishnan
Brett N. Steenbarger, PhD, is Clinical Associate Professor of Psychiatry and Behavioral Sciences at SUNY Upstate Medical University in Syracuse, NY. He works as a performance coach for traders and portfolio managers at hedge funds and other financial institutions and is an active trader of stock index futures. He writes at the blog TraderFeed, is active in social media (@steenbab), and is the author of four trading books. His most recent book, Trading Psychology 2.0 (Wiley, 2015), draws on recent research in positive psychology to show how traders can adapt to changing markets, build on their cognitive and personality strengths, cultivate creativity, and develop best practices and processes.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Brett Steenbarger on January 18, 2016 about the different aspects of trading psychology and how traders can harness their individual strengths..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-13-38-40-43-focus-on-the-positive-with-brett-steenbarger-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-13-38-40-43-focus-on-the-positive-with-brett-steenbarger-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-13-38-40-43-focus-on-the-positive-with-brett-steenbarger-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov348whis,d,"{""minimum-quantity"":""1"",""path"":""ch13bis204"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 34:13 (8–11): When Is Berkshire Hathaway Stock Good Value? by Tushar Chande, PhD"",""caption-linebreaks"":""When Is Berkshire Hathaway Stock Good Value? by Tushar Chande, PhD
A value player and a speculator will define value differently. Regardless, both can still benefit from identifying value in stocks. Here’s a look at some quantitative methods that value players and momentum traders can apply to identify good value in stocks.
What is value? Warren Buffett—who is known as “the Oracle of Omaha”—has given value investing its icon, and the trajectory of Berkshire Hathaway stock has been unrelentingly upward for decades. So it’s interesting to pose the question: When is Berkshire Hathaway stock good value? I must provide fair warning, though, because as the “Oracle” declared wistfully in 2008, “Beware of geeks bearing formulas.”"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-13-8-11-when-is-berkshire-hathaway-stock-good-value-by-tushar-chande-phd-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-13-8-11-when-is-berkshire-hathaway-stock-good-value-by-tushar-chande-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-34-13-8-11-when-is-berkshire-hathaway-stock-good-value-by-tushar-chande-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35131an,d,"{""minimum-quantity"":""1"",""path"":""ch1j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:01 (12–15, 31): The Anatomy Of A Brexit Appointment by Eva J. Tompkins and Jody Wong"",""caption-linebreaks"":""The Anatomy Of A Brexit Appointment by Eva J. Tompkins and Jody Wong
A trade occurs every day, hour, and minute. However, it’s not very often that you get to trade by appointment. Here, we look at the entry, management, and target of a Brexit trade.
The referendum of the United Kingdom (UK) on June 23, 2016 that would decide whether the UK would exit the European Union (EU) was an opportunity to create a GBPUSD trade that could be planned in advance pursuant to a set of trading rules. Unlike the intervention of the Bank of Japan on March 18, 2011 or the Swiss National Bank’s removal of the peg of the Swiss currency to the euro on January 15, 2015, the Brexit (Britain exit) trade could be anticipated and planned using both fundamental and technical analysis. The appointment was set for June 23, 2016 at 5:00 pm EST ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-12-15-31-the-anatomy-of-a-brexit-appointment-by-eva-j-tompkins-and-jody-wong-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-12-15-31-the-anatomy-of-a-brexit-appointment-by-eva-j-tompkins-and-jody-wong-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-12-15-31-the-anatomy-of-a-brexit-appointment-by-eva-j-tompkins-and-jody-wong-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35149be,d,"{""minimum-quantity"":""1"",""path"":""ch1j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:01 (16–18, 49): Be Your Own Hedge Fund by John Ehlers and Ric Way"",""caption-linebreaks"":""Be Your Own Hedge Fund by John Ehlers and Ric Way
Think being your own hedge fund is out of reach? Maybe it’s time to rethink it. It could be a lot simpler than you expected.
A hedge fund is an aggressively managed portfolio of investments that uses advanced investment strategies with the goal of generating high returns. Though that sounds daunting, you can do this on your own. What’s holding you back from trying? You are probably thinking:
• I don’t have the experience to be a successful trader.
\n• I don’t know how to formulate a trading strategy.
\n• I don’t have the technology for an advanced investment strategy.
\n• I am worried about the risks of trading.
\n• I don’t have time. Managing a fund is a full-time job.
\n• I don’t have the capital to start a fund.
\n• I don’t know the legality of running a hedge fund ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-16-18-49-be-your-own-hedge-fund-by-john-ehlers-and-ric-way-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-16-18-49-be-your-own-hedge-fund-by-john-ehlers-and-ric-way-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-16-18-49-be-your-own-hedge-fund-by-john-ehlers-and-ric-way-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35149be1,d,"{""minimum-quantity"":""1"",""path"":""faarfr209"",""ysw-page-title"":""Stocks & Commodities V. 35:01 (16–18, 49): Be Your Own Hedge Fund by John Ehlers and Ric Way"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-21813.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-16-18-49-be-your-own-hedge-fund-by-john-ehlers-and-ric-way-31.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-16-18-49-be-your-own-hedge-fund-by-john-ehlers-and-ric-way-32.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35258ic,d,"{""minimum-quantity"":""1"",""path"":""ch1j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:01 (20–22, 58): Ichimoku Charts by Rudy Teseo"",""caption-linebreaks"":""Ichimoku Charts by Rudy Teseo
Some indicators may appear to be more complicated than they really are. Here, we dissect ichimoku charts and take the mystery out of them.
These days, you have to be careful when you use the word “cloud.” You have to be sure your listener knows whether you’re referring to some server in the sky or an indicator used by stock chartists (technical analysts).
I’m a latecomer when it comes to the ichi. Like many traders, I took one look at the indicator and said, “No, not for me; there are a lot simpler indicators that I still haven’t mastered.” And when I couldn’t find it in Steve Achelis’ Technical Analysis From A To Z, that was the death knell.
But then I received an email offering a free ichi ebook, which I downloaded. Within 15 minutes I was starting to think differently about this indicator. I then watched a couple videos on the topic at TC2000.com and was hooked ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-20-22-58-ichimoku-charts-by-rudy-teseo-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-20-22-58-ichimoku-charts-by-rudy-teseo-31.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-20-22-58-ichimoku-charts-by-rudy-teseo-32.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35258ic1,d,"{""minimum-quantity"":""1"",""path"":""faarfr209"",""ysw-page-title"":""Stocks & Commodities V. 35:01 (20–22, 58): Ichimoku Charts by Rudy Teseo"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-21814.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-20-22-58-ichimoku-charts-by-rudy-teseo-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-20-22-58-ichimoku-charts-by-rudy-teseo-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35246ea,d,"{""minimum-quantity"":""1"",""path"":""ch1j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:01 (24–26, 46): Earnings—Will Performance ‘Trump’ Fundamentals? By Bani Arora"",""caption-linebreaks"":""Earnings—Will Performance ‘Trump’ Fundamentals? By Bani Arora
You often base your trades on opinions, and those opinions can be wrong. What’s the best way to hedge your positions for those times when you could be wrong? Here’s one way.
Company XYZ, the largest holding in your portfolio, is due to release earnings tomorrow. You open up your favorite charting software and focus all intellectual efforts on interweaving your technical analysis insights with historical nuggets of earnings information. You analyze your favorite indicators on charts spanning various time periods, flouting its defects and deviations from perfect order, ignoring the visual mischief that creates misleading signals, and celebrate your efforts when a buy signal appears as a triumphant symbol of your studies.
You are long the underlying stock and it is a tantalizing thought the company will meet, if not beat, Wall Street expectations and better still, spike up in price following the earnings release. But the impending unimagined adversities lead to unfavorable financials and the stock price takes a nosedive ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-24-26-46-earnings-will-performance-trump-fundamentals-by-bani-arora-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-24-26-46-earnings-will-performance-trump-fundamentals-by-bani-arora-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-24-26-46-earnings-will-performance-trump-fundamentals-by-bani-arora-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov352etfs1,d,"{""minimum-quantity"":""1"",""path"":""faarfr209"",""ysw-page-title"":""Stocks & Commodities V. 35:01 (28–29): ETF Sector Investing by Leslie N. Masonson"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-21815.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-28-29-etf-sector-investing-by-leslie-n-masonson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-28-29-etf-sector-investing-by-leslie-n-masonson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov352etfs,d,"{""minimum-quantity"":""1"",""path"":""ch1j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:01 (28–29): ETF Sector Investing by Leslie N. Masonson"",""caption-linebreaks"":""ETF Sector Investing by Leslie N. Masonson
One of the more recent ETF innovations over the past decade has been the introduction of factors to enhance performance and minimize risk compared to the more traditional market-capitalization weighting approach. A factor is simply a characteristic of a security that has demonstrated an ability to provide an equal to or better than average return with lower risk. As a precursor to factor-based ETFs, Morningstar introduced its equity style in 2000 which consisted of nine boxes with large, medium, and small-cap stocks labeled on the vertical axis, and value, blend, and growth labeled on the horizontal axis. Stocks were placed in one of these nine boxes and their performance was compared ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-28-29-etf-sector-investing-by-leslie-n-masonson-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-28-29-etf-sector-investing-by-leslie-n-masonson-31.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-28-29-etf-sector-investing-by-leslie-n-masonson-32.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov353fufo,d,"{""minimum-quantity"":""1"",""path"":""ch1j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:01 (30–31): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
COMMODITY OPTIONS BUYING
When is the best time to buy commodity options?
It is no secret that I tend to favor options selling over options buying, but that doesn’t mean there aren’t favorable times to buy options. That said, before delving into strategies to go long options, it’s imperative to understand that long options traders must be more accurate in regard to market direction and timing than options sellers must. Moreover, they must carry the heavy burden of time value erosion, which often causes traders to lose money despite being somewhat accurate in their price prediction ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-30-31-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-30-31-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-30-31-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov353exyo,d,"{""minimum-quantity"":""1"",""path"":""ch1j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:01 (32): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
NEW YEAR'S RESOLUTIONS FOR OPTIONS TRADERS
Happy new year everyone! It’s a new year, a new presidency, and the first 100 days in the White House will include a new cabinet and agenda.
Do you know what else it’s time for? Reviewing your performance as a trader for the last year as well as setting goals and planning for 2017. I find that the best time to do this is during the last week of the year, but if you miss that opportunity due to excessive partying or perhaps excessive in-laws at your house, now is as good a time as any to get started. Creating a trading plan involves answering questions around your plan, so let’s get started ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-32-explore-your-options-by-tom-gentile-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-32-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-32-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35336br,d,"{""minimum-quantity"":""1"",""path"":""ch1j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:01 (34, 36–37): The Brains Behind A Trading System: Denis Globa by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""The Brains Behind A Trading System: Denis Globa by Jayanthi Gopalakrishnan
The thought of developing a trading system can overwhelm you with words like backtesting, optimization, curve fitting, and performance results whirling through your head. But anyone who has gone through the learning process and has successfully applied their own systems to their trading will tell you it’s a journey well worth the effort. Denis Globa, founder and CEO of MultiCharts and TradingView, fits this bill. With over 15 years’ experience trading various asset classes, he founded MultiCharts, a trading platform for charting, system development, and trade execution, and TradingView, an online trading community and visualization platform, with the intention of bringing trading system development to the hands of retail traders.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan interviewed Denis Globa via email in early November 2016.
Could you tell us how you got interested in trading systems?
\nI learned about systematic trading as I was learning about trading. I started trading forex and then moved on to trading futures and stocks. While it has its advantages, trading forex is still extremely risky because of the high volatility and huge leverage. That’s why I recommend to all beginner traders that they strictly follow risk management practices ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-34-36-37-the-brains-behind-a-trading-system-denis-globa-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-34-36-37-the-brains-behind-a-trading-system-denis-globa-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-34-36-37-the-brains-behind-a-trading-system-denis-globa-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35347qa,d,"{""minimum-quantity"":""1"",""path"":""ch1j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:01 (38–39, 47): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
NEW YEAR, NEW PRESIDENTIAL TERM, NEW APPROACHES
To begin, I have two announcements: First, the year 2017 marks the 25-year anniversary of Bright Trading, LLC. Second, given that we are looking at four-plus years of anticipated volatility, it’s time for the return of the trader. Actually, things began to change on September 9, 2016, in contrast to the preceding quiet summer months. On that day, every stock in the Dow Jones Industrial Average was down, 98% of the S&P 500 stocks were down (only 11 were up on the day), and the S&P 500 slid 2.5% or 53 points. The catalyst for that decline was Fed-speak and politics. Since that day, we have had increased volatility, rolling up and down with the various news on Clinton versus Trump or whether the Federal Reserve was going to raise interest rates or not ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-38-39-47-q-a-by-rob-friesen-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-38-39-47-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-38-39-47-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354reba,d,"{""minimum-quantity"":""1"",""path"":""ch1j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:01 (40–41): Review: Barchart.com by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Review: Barchart.com by Jayanthi Gopalakrishnan
WWW.BARCHART.COM
Barchart.com got a facelift. It looks more modern, is more intuitive, and easier to navigate. It still has its rich feature set that its subscribers have known to appreciate. The contents of the site could help in your trading whether you’re a stock, options, forex, or futures trader. Here’s how.
Say you’re ready to start your trading day, coffee in hand; you open up Barchart.com on a device of your choice, and start by reading the Barchart morning call. It doesn’t cost anything to register. The only time that payments come into the picture is if you opt to use any of the premium services. I’ll focus on the free content for this review ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-40-41-review-barchart-com-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-40-41-review-barchart-com-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-40-41-review-barchart-com-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354whno,d,"{""minimum-quantity"":""1"",""path"":""ch1j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:01 (44–46): What Now For Banks? By Koos van der Merwe"",""caption-linebreaks"":""What Now For Banks? By Koos van der Merwe
When Donald Trump won the US Presidential election, the Dow Jones Industrial Average immediately rose to a new high, against all predictions. As we search for investing opportunities in this new order, how attractive are the banking stocks? We’ll take a look at a few of them.
The United States has elected a president who promised to “make America great again.” With his history of unpredictability, from bankruptcy to making billions of dollars, President-elect Donald Trump throws a degree of uncertainty into the stock market. Predictions widely given before the election were that if he were elected, the stock market would crash. However, the opposite occurred. The Dow Jones Industrial Average (DJIA) rose to new highs, and meanwhile, the price of gold—usually a popular hedge against uncertainty—crashed ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-44-46-what-now-for-banks-by-koos-van-der-merwe-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-44-46-what-now-for-banks-by-koos-van-der-merwe-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-44-46-what-now-for-banks-by-koos-van-der-merwe-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354meda,d,"{""minimum-quantity"":""1"",""path"":""ch1j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:01 (48–49): Mean-Reversion Daytrading by Ken Calhoun"",""caption-linebreaks"":""Mean-Reversion Daytrading by Ken Calhoun
Last month, this professional trader discussed swing trading mean-reversion pivot entries. This month, he continues on the same topic but this time for daytrading.
One of the biggest challenges that daytraders face is rapidly scanning for breakouts during the opening 30 minutes of each day’s trading session. If you have ever overlooked a big opening breakout, you may find the technique I’ll discuss here especially useful.
By waiting for a 50% retracement, also known as a mean reversion, you can use this as a second opportunity to enter a strong-trending stock following a pullback. This article will show you how to daytrade mean-reversion pivot entries ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-48-49-mean-reversion-daytrading-by-ken-calhoun-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-48-49-mean-reversion-daytrading-by-ken-calhoun-31.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-48-49-mean-reversion-daytrading-by-ken-calhoun-32.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354meda1,d,"{""minimum-quantity"":""1"",""path"":""faarfr209"",""ysw-page-title"":""Stocks & Commodities V. 35:01 (48–49): Mean-Reversion Daytrading by Ken Calhoun"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-21816.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-48-49-mean-reversion-daytrading-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-48-49-mean-reversion-daytrading-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov355trti,d,"{""minimum-quantity"":""1"",""path"":""ch1j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:01 (50–54): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Ken Calhoun’s article in the December 2016 issue, \""Does Fully Automated Trading Software Work?\"" Here, we present the January 2017 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-50-54-traders-tips-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-50-54-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-50-54-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov355bofo,d,"{""minimum-quantity"":""1"",""path"":""ch1j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:01 (58): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
Foundations Of Trading: Developing Profitable Trading Systems Using Scientific Techniques
The Volatility Smile"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-58-books-for-traders-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-58-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-58-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov356howf,d,"{""minimum-quantity"":""1"",""path"":""ch1j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:01 (60–62): How Feelings Influence Your Trading by Claudio Demb"",""caption-linebreaks"":""How Feelings Influence Your Trading by Claudio Demb
Trading is emotionally demanding. Our feelings dictate our actions and without our being aware of it, tend to make us trade irrationally. The first step in battling emotions is to be aware of them.
Thoughts, feelings, and actions—three distinct and separate entities, yet they have a circular relationship. You see this kind of relationship in everyday life. Think about it—you feel anxious, which then leads you to worry about all the possible bad outcomes. Or perhaps you detect some physical pain and feel something is wrong with your body, which then makes you think you may have a serious illness. So you see how sometimes when you think about something, it triggers a particular feeling ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-60-62-how-feelings-influence-your-trading-by-claudio-demb-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-60-62-how-feelings-influence-your-trading-by-claudio-demb-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-60-62-how-feelings-influence-your-trading-by-claudio-demb-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35742le,d,"{""minimum-quantity"":""1"",""path"":""ch1j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:01 (7, 42): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
VERTICAL RUNUP
Editor,
\nI enjoyed reading Thomas Bulkowski’s article “Vertical Run-up” in the November 2016 issue of Technical Analysis of STOCKS & COMMODITIES. I have a few questions if the author doesn’t mind ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-7-42-letters-to-s-c-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-7-42-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-7-42-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov358uses,d,"{""minimum-quantity"":""1"",""path"":""ch1j208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:01 (8–11): Use Seasonality To Optimize Algorithmic Strategies by Karl Montevirgen"",""caption-linebreaks"":""Use Seasonality To Optimize Algorithmic Strategies by Karl Montevirgen
It’s not uncommon for markets to trend based on seasonal patterns. So when your system doesn’t seem to be giving you the returns you were hoping for, it may help to turn to seasonality analysis to try and optimize your trading system.
Market seasonality and algorithmic strategies are two distinct concepts that offer a potential “edge” to traders and investors who use them wisely. Seasonality provides statistical transparency on recurring patterns of market behavior. Algorithmic trading systems employ proprietary technologies and differentiated approaches to analyzing and engaging markets with speed, accuracy, and automation.
Each approach envelops its own unique set of potential. In this article, I’ll explore the advantages that might be created by combining them. I’ll begin by taking a look at the advantages that each approach has to offer ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-8-11-use-seasonality-to-optimize-algorithmic-strategies-by-karl-montevirgen-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-8-11-use-seasonality-to-optimize-algorithmic-strategies-by-karl-montevirgen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-01-8-11-use-seasonality-to-optimize-algorithmic-strategies-by-karl-montevirgen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov3511827,d,"{""minimum-quantity"":""1"",""path"":""ch2f2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:02 (14–16, 18, 27): Using Correlation To Trade The S&P 500 by Cassandra Wang"",""caption-linebreaks"":""Using Correlation To Trade The S&P 500 by Cassandra Wang
Do you want to trade assets that are positively correlated or are you better off trading assets that move in different ways? Here’s a look at how a correlation strategy compares with a moving average crossover strategy and a buy & hold strategy.
When you think of the term correlation, you think of it as a relationship between two distinct variables. A strong positive correlation means two variables move together; a strong negative correlation means the two variables move in opposite directions. So if you know how well two assets are correlated, you could infer the patterns of a variable. In the financial markets, when the movement of one asset corresponds to the movements of other assets, this results in inter-asset correlation ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-14-16-18-27-using-correlation-to-trade-the-s-p-500-by-cassandra-wang-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-14-16-18-27-using-correlation-to-trade-the-s-p-500-by-cassandra-wang-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-14-16-18-27-using-correlation-to-trade-the-s-p-500-by-cassandra-wang-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35231se,d,"{""minimum-quantity"":""1"",""path"":""ch2f2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:02 (20–21, 31): Seasonal Play In Crude Brings Cheer by James Cordier and Michael Gross"",""caption-linebreaks"":""Seasonal Play In Crude Brings Cheer by James Cordier and Michael Gross
While OPEC deals are all the talk, the real fundamentals moving crude prices are often predictably cyclical. Here is how to capitalize as we start 2017.
Seasonal tendencies in commodities can be one of the most powerful forces you can harness to if you wish to master the art of commodities trading. And of all the commodities, there is none with more pronounced seasonal tendencies than the energy markets. This is because demand for energy changes with the weather, and thus, with the seasons. You have higher demand for heating fuel in winter and higher demand for travel and air conditioning fuel in the summer. And of all the energy markets, none are more sensitive to these demand cycles than crude oil, which is why we chose to focus on this specific market ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-20-21-31-seasonal-play-in-crude-brings-cheer-by-james-cordier-and-michael-gross-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-20-21-31-seasonal-play-in-crude-brings-cheer-by-james-cordier-and-michael-gross-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-20-21-31-seasonal-play-in-crude-brings-cheer-by-james-cordier-and-michael-gross-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov352rotr,d,"{""minimum-quantity"":""1"",""path"":""ch2f2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:02 (22–27): A Road Trip With Options Supertraders by John A. Sarkett"",""caption-linebreaks"":""A Road Trip With Options Supertraders by John A. Sarkett
Here’s a way to trade options that allows you to spend less time managing the trade and more time to go on road trips.
Nearly a decade ago, a headline in a prominent financial publication named Dan Harvey “the super trader of index condors.” I know—I wrote the piece. Recently, coming across some old notes, I wondered what became of him, and with a little digging, I was able to renew contact.
Turns out, some 10 years later, working with partner and options veteran Tom Nunamaker, Harvey had moved on from condors to a new options trade model that he calls the road trip trade (RTT) ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-22-27-a-road-trip-with-options-supertraders-by-john-a-sarkett-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-22-27-a-road-trip-with-options-supertraders-by-john-a-sarkett-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-22-27-a-road-trip-with-options-supertraders-by-john-a-sarkett-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov352behu,d,"{""minimum-quantity"":""1"",""path"":""ch2f2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:02 (28–31): Beyond The Hull With Leavitt Projections by Jay A. Leavitt, PhD"",""caption-linebreaks"":""Beyond The Hull With Leavitt Projections by Jay A. Leavitt, PhD
They’re predictive and have no lag. What are these indicators and where can you find them?
Allow me to introduce you to two indicators that could make a difference. One of the indicators is comparatively faster than the Hull moving average. The second indicator is even faster than the first; it indicates when a trend is weakening and is also predictive. And to top it off, I’ll describe a probability function that can sharply identify turns in the market, which will increase your odds of making successful trades ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-28-31-beyond-the-hull-with-leavitt-projections-by-jay-a-leavitt-phd-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-28-31-beyond-the-hull-with-leavitt-projections-by-jay-a-leavitt-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-28-31-beyond-the-hull-with-leavitt-projections-by-jay-a-leavitt-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35334ed,d,"{""minimum-quantity"":""1"",""path"":""ch2f2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:02 (32, 34–38): Ed Dobson On Transitioning To Independent Trader by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Ed Dobson On Transitioning To Independent Trader by Jayanthi Gopalakrishnan
Former futures broker, book publisher, and author Ed Dobson always had a calling for the markets. He never lost that interest or stopped trading, despite becoming busy with his brokerage career and publishing business, knowing that one day he’d get back to trading more actively. Through the years, he continued to study charts, research spreads, write and publish books on trading, and assist his clientele of active traders. He served as a broker at H.S. Kipnis, Harris Upham, Smith Barney, and PaineWebber. He launched Trader’s Press in 1975 to connect with traders and to publish educational books and materials on trading and investing. He gave that up in 2009 to return to the path that he first embarked on when he was just 12 years old and turned his full attention to trading the markets.
Dobson has written or cowritten nine books on trading. His trading centers on options strategies but he trades all markets. He leads a local traders’ group in South Carolina. He can be reached at charttrader@charter.net.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Ed Dobson on December 12, 2016 about how many years of looking at charts gives him a feel for the markets, what he doesn’t pay attention to, and about the spread and options strategies he uses, including overlapping condors, Christmas tree spreads, and short-term calendar spreads.
Ed, what got you interested in the financial markets?
I was always a saver. By the time I was 12 years old I had some savings. My dad was a businessman and he introduced me to stocks. Since I had some money saved up, he thought he’d tell me about stocks. He recommended a Jacksonville grocery store and a building supply company. So I bought 20 shares of each and made a profit on them. That was enough to whet my appetite. So that’s how I got interested in the stock market ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-32-34-38-ed-dobson-on-transitioning-to-independent-trader-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-32-34-38-ed-dobson-on-transitioning-to-independent-trader-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-32-34-38-ed-dobson-on-transitioning-to-independent-trader-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35344fu,d,"{""minimum-quantity"":""1"",""path"":""ch2f2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:02 (39, 44): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
SERIAL OPTIONS
What are serial options and where have they gone?
Those trading options on financial futures such as the emini S&P, Treasuries, and currencies have probably come across the term serial options. Nevertheless, most traders likely didn’t recognize the difference between them and traditional options until they pulled up their quote board one morning last fall to discover they were gone. In its quest to move away from monthly expiring options toward weekly options, the Chicago Mercantile Exchange (CME) eliminated the traditional monthly serial options from the emini S&P and are following suit in other products ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-39-44-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-39-44-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-39-44-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354prre,d,"{""minimum-quantity"":""1"",""path"":""ch2f2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:02 (40–42): Product Review: NinjaTrader 8, Part 1 by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Product Review: NinjaTrader 8, Part 1 by Jayanthi Gopalakrishnan
NINJATRADER, LLC
\n1422 Delgany Street, Suite 400
\nDenver, CO 80202
\nPhone: 312 262-1289
\nFax: 312 329-9888
\nInternet: www.ninjatrader.com
\nRequirements: Minimum requirements are Windows Vista (SP2) w/platform update, Windows 7, 8, or 10, Windows Server 2008 w/platform update, Windows Server 2008 R2 or later; 1 gigahertz (GHz) or faster 32-bit or 64-bit processor; 2 GB RAM; Microsoft. NET Framework 4.5; screen resolution of 1024x768; DirectX10 compatible graphics card.
\nProduct: Trading platform for active equity, futures, and forex traders.
\nPrice: Always free use for advanced charting, strategy backtesting, and strategy simulation. For live trading in your brokerage account, purchase it for $999 (or four monthly payments of $299); lease it for $600 annually, $330 semi-annually, or $180 quarterly; free through a NinjaTrader brokerage account.
NinjaTrader has a dedicated following and for good reason. It is broker independent, the price is attractive, it supports a lot of datafeeds, and it’s easy to use. For the benefit of its dedicated followers, NinjaTrader’s new release NinjaTrader 8 (NT8) is an evolution of the previous generation. It looks similar to the previous version, which means you don’t have to invest a lot of time to learn about its new features, but the technology used to develop it is more powerful than in the previous version, and this is something you’ll notice once you start using the product ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-40-42-product-review-ninjatrader-8-part-1-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-40-42-product-review-ninjatrader-8-part-1-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-40-42-product-review-ninjatrader-8-part-1-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354exyo,d,"{""minimum-quantity"":""1"",""path"":""ch2f2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:02 (43–44): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
TRADING THE SPRING AND SUMMER ENERGY PATTERN
If you know anything about me, then you know I love trading patterns. One of the simplest patterns to follow is seasonal patterns. I follow the work of friend and fellow trader Jeffrey Hirsh, coauthor of the annual Stock Trader’s Almanac. This is one of the places where I learned long ago about patterns that repeat over a calendar year. One of the patterns I have grown fond of over the years is the pattern on crude oil that is described in the Almanac ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-43-44-explore-your-options-by-tom-gentile-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-43-44-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-43-44-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354qaby,d,"{""minimum-quantity"":""1"",""path"":""ch2f2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:02 (46–47): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
TRADE SOME, HOLD SOME
Throughout my career, I have used the phrase “trade some and hold some” when referring to maximizing profits while trading equity pairs. Essentially, this concept is based on the premise of trading around a core position—holding one layer (long a unit of capital in one stock, while short a unit of capital in another stock) and trading additional layers besides that one, in and out over multiple timeframes.
You could refer to it as a strategy in itself, but I prefer to think of it as a methodology, or way of life, as there are many instances where trading around a core position is useful regardless of the instrument you trade ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-46-47-q-a-by-rob-friesen-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-46-47-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-46-47-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35452tr,d,"{""minimum-quantity"":""1"",""path"":""ch2f2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:02 (48–50, 52–54): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Vitali Apirine’s article in this issue, \""Exponential Standard Deviation Bands\"" Here, we present the February 2017 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-48-50-52-54-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-48-50-52-54-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-48-50-52-54-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov356goit,d,"{""minimum-quantity"":""1"",""path"":""ch2f2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:02 (60–61): Gold–Is it All Glitter? by Bruce Ross"",""caption-linebreaks"":""Gold–Is it All Glitter? by Bruce Ross
Where’s the middle ground between buy & hold and short-term trading? If you find it, it could help you trade gold better.
Since the dawn of civilization, people have been fascinated with gold. Investors, too, are always interested in gold, but they’re often apprehensive to get involved in the gold market. This is often prompted by an uncertainty surrounding political issues and global stability. These are the very issues that often affect the price of gold ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-60-61-gold-is-it-all-glitter-by-bruce-ross-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-60-61-gold-is-it-all-glitter-by-bruce-ross-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-60-61-gold-is-it-all-glitter-by-bruce-ross-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov356bofo,d,"{""minimum-quantity"":""1"",""path"":""ch2f2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:02 (62): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
Stock Trader’s Almanac 2017
The Harriman Stock Market Almanac 2017, 10th edition
Option Income Strategy Trade Filters: An In-Depth Article Demonstrating The Use Of Trade Filters To Enhance Returns And Reduce Risk
Option Income Strategy Trade Filters: An In-Depth Article Dem-onstrating The Use Of Trade Filters To Enhance Returns And Reduce Risk"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-62-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-62-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-62-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35745vo,d,"{""minimum-quantity"":""1"",""path"":""ch2f2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:02 (7, 45): Volume-Weighted Moving Average Breakouts by Ken Calhoun"",""caption-linebreaks"":""Volume-Weighted Moving Average Breakouts by Ken Calhoun
Here’s a moving average crossover technique to help spot strong breakout trading patterns in volatile markets.
When you look for swing trading entries and exits in volatile markets, it is important to use volume in addition to price to confirm your trading decisions. Using the volume-weighted moving average (VWMA) can provide an ideal technical trading tool to help you combine price and volume. This month, I will show you how to combine the VWMA with a simple moving average (MA) crossover technique to help you spot these strong breakout trading patterns ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-7-45-volume-weighted-moving-average-breakouts-by-ken-calhoun-31.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-7-45-volume-weighted-moving-average-breakouts-by-ken-calhoun-39.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-7-45-volume-weighted-moving-average-breakouts-by-ken-calhoun-40.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35745vo1,d,"{""minimum-quantity"":""1"",""path"":""faarfr209"",""ysw-page-title"":""Stocks & Commodities V. 35:02 (7, 45): Volume-Weighted Moving Average Breakouts by Ken Calhoun"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-7-45-volume-weighted-moving-average-breakouts-by-ken-calhoun-36.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-7-45-volume-weighted-moving-average-breakouts-by-ken-calhoun-37.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-7-45-volume-weighted-moving-average-breakouts-by-ken-calhoun-38.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov358exst,d,"{""minimum-quantity"":""1"",""path"":""ch2f2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:02 (8–12): Exponential Standard Deviation Bands by Vitali Apirine"",""caption-linebreaks"":""Exponential Standard Deviation Bands by Vitali Apirine
Traders hunt for volatility, but how can you find it? Here’s one technique you can apply that’ll help you see volatility while a stock is trending.
Sometimes you see it right in front of your eyes. Other times you may have to look hard to find it. Either way, volatility needs to exist if you want to make successful trades. Lucky for you, there are many ways to measure volatility. One way is the exponential standard deviation bands (ESD bands), which are volatility bands placed above and below an exponential moving average. The bands are based on the exponential standard deviation, which changes as volatility increases and decreases. The bands automatically widen when volatility increases and narrow when volatility decreases. This means they can be used on different securities with standard settings ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-8-12-exponential-standard-deviation-bands-by-vitali-apirine-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-8-12-exponential-standard-deviation-bands-by-vitali-apirine-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-02-8-12-exponential-standard-deviation-bands-by-vitali-apirine-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35145sp,d,"{""minimum-quantity"":""1"",""path"":""ch3m2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:03 (14–17, 45): S&P Fuel Gauge: An Introduction by Chris Evans"",""caption-linebreaks"":""S&P Fuel Gauge: An Introduction by Chris Evans
Ever thought about how much energy a rally in the S&P 500 has? Here’s a technique that could help measure that energy and may even give you the edge you’re looking for.
The performance of the S&P 500 can tell you a lot about global asset returns. If it goes up materially, then bonds usually fall, and if it goes down, bonds usually rise. If it goes up, traders prefer currencies like the Australian dollar over, say, the Japanese yen ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-14-17-45-s-p-fuel-gauge-an-introduction-by-chris-evans-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-14-17-45-s-p-fuel-gauge-an-introduction-by-chris-evans-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-14-17-45-s-p-fuel-gauge-an-introduction-by-chris-evans-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35125th,d,"{""minimum-quantity"":""1"",""path"":""ch3m2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:03 (18–20, 25): This Butterfly Wears Kevlar by John A. Sarkett"",""caption-linebreaks"":""This Butterfly Wears Kevlar by John A. Sarkett
Butterflies are a well-known options trading strategy. But here’s one that’s a little different.
In the history of options trading, Jim Riggio goes “way back.” He started trading more than two decades ago. He was among thinkorswim’s first 100 clients; trained as an engineer, with degrees in computer science and information management, he admired their advanced platform so much he became a broker there ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-18-20-25-this-butterfly-wears-kevlar-by-john-a-sarkett-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-18-20-25-this-butterfly-wears-kevlar-by-john-a-sarkett-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-18-20-25-this-butterfly-wears-kevlar-by-john-a-sarkett-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov352gril,d,"{""minimum-quantity"":""1"",""path"":""ch3m2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:03 (22–25): The Grand Illusion by Tim W. Wood, CPA"",""caption-linebreaks"":""The Grand Illusion by Tim W. Wood, CPA
Is the economy as strong as it looks? The charts may suggest the economy is strong but the real answer lies between the price bars. Let’s take a peek.
A rising stock market—it gives us a warm, fuzzy feeling; it puts us in a state of complacency because it makes us think that everything is going to be just fine. In reality, that may not be the case. And here’s why ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-22-25-the-grand-illusion-by-tim-w-wood-cpa-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-22-25-the-grand-illusion-by-tim-w-wood-cpa-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-22-25-the-grand-illusion-by-tim-w-wood-cpa-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov352buys,d,"{""minimum-quantity"":""1"",""path"":""ch3m2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:03 (26–30): Buy & Sell Pressure And A Faster RSI by Tushar S. Chande, PhD"",""caption-linebreaks"":""Buy & Sell Pressure And A Faster RSI by Tushar S. Chande, PhD
Most of you are familiar with the relative strength index (RSI), but are you taking full advantage of it? Here, we deconstruct the RSI to lead to a more intuitive and symmetrical gauge of buying and selling pressure and a more responsive indicator.
Many novice and even intermediate traders have told me over the years that they find the ever-popular relative strength index (RSI) indicator confusing. The RSI is an oscillator plotted on a scale of zero to 100, and is typically used as an overbought/oversold indicator, which means that it is used to signal impending reversals in direction. However, during strong trends, the RSI can remain at “extreme” levels, either high or low, for the duration of the trend, and thus, it’s not precise as an indicator of impending reversals ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-26-30-buy-sell-pressure-and-a-faster-rsi-by-tushar-s-chande-phd-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-26-30-buy-sell-pressure-and-a-faster-rsi-by-tushar-s-chande-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-26-30-buy-sell-pressure-and-a-faster-rsi-by-tushar-s-chande-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35347fu,d,"{""minimum-quantity"":""1"",""path"":""ch3m2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:03 (31, 47): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
ES OPTIONS
Why trade ES options, and not the SPX or SPY options?
I’ve been asked on multiple occasions why I recommend S&P 500 options trades using the emini S&P futures options (ES) traded on the Chicago Mercantile Exchange (CME) rather than equity products such as the SPX or SPY. The truth is, I am a futures and options broker who deals solely in futures con-tracts and options on futures contracts. But besides the fact that options on futures are in my comfort zone and are the “bread and butter” of my business, there are some compelling reasons to trade emini stock index options and bypass the equity market versions ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-31-47-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-31-47-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-31-47-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov353abth,d,"{""minimum-quantity"":""1"",""path"":""ch3m2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:03 (32–34): About Those Binary Options by Gail Mercer"",""caption-linebreaks"":""About Those Binary Options by Gail Mercer
Whether you’re a scalper, an intraday trader, or a longer-term trader, binary options can provide several types of trading opportunities and can work in any type of market condition. What are they and how can you trade them? Find out here.
You have probably heard the term binary options, but what are they really? They’re different from traditional options and if you aren’t all that familiar with them, now’s your chance to get to know them better. Before jumping into all the different opportunities they provide, I’ll start with a review of what binary options are ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-32-34-about-those-binary-options-by-gail-mercer-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-32-34-about-those-binary-options-by-gail-mercer-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-32-34-about-those-binary-options-by-gail-mercer-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35345qa,d,"{""minimum-quantity"":""1"",""path"":""ch3m2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:03 (35, 45): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
A DOLLAR SAVED BECOMES A DOLLAR MADE
When I present on topics such as “trade some and hold some,” as was the subject of my column in this magazine last month, I have invariably been asked, “Well, what about stop-losses?”
One of the benefits of spread trading is the distribution of capital over a range, by chosen methodology, allowing a dollar-cost-averaging approach to hedged trading ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-35-45-q-a-by-rob-friesen-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-35-45-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-35-45-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35338ga,d,"{""minimum-quantity"":""1"",""path"":""ch3m2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:03 (36, 38–40): Gavin McMaster: Living Life As An Options Trader by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Gavin McMaster: Living Life As An Options Trader by Jayanthi Gopalakrishnan
You don’t have to be an aggressive trader to make it as an options trader, says this “master” of options trading. After learning as much as he could about trading options, Gavin McMaster decided to take the task into his own hands and start trading options. He didn’t spend a single day working at a trading desk for a financial firm, although the thought did cross his mind. McMaster even went on to get a master’s degree in applied finance and investment, but admits that didn’t help him learn anything about trading options. He now specializes in income trading using options, is very conservative in his style, and believes that patience in waiting for the best setups is the key to successful trading. He likes to focus on short volatility strategies. McMaster has written five books on options trading, available from Amazon. You can read more from him at his blog at OptionsTradingIQ.com. He resides in Melbourne, Australia with his family.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan communicated with Gavin McMaster via email in January 2017 to find out more about his options trading journey.
Gavin, tell us a little bit about yourself and how you got interested in the financial markets.
\nMy earliest memory about the financial markets is from primary school—I think you call it elementary school in the US—and a fictional story my teacher told. It was about an investor who bought a stock that went from $1 to $999 and he was greedy and refused to sell. Sure enough, the stock fell back down to zero and this fictional investor was back to where he started ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-36-38-40-gavin-mcmaster-living-life-as-an-options-trader-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-36-38-40-gavin-mcmaster-living-life-as-an-options-trader-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-36-38-40-gavin-mcmaster-living-life-as-an-options-trader-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35444ex,d,"{""minimum-quantity"":""1"",""path"":""ch3m2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:03 (41, 44): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
DEBIT SPREADS OR CREDIT SPREADS … WHICH IS BEST?
Many people ask me this question about debit and credit spreads: “I hear one makes money and the other costs money. Is that true?” In a way, that is correct, but it’s not as cut-and-dried as you may think.
Credit means you are generating a credit to the account. Technically, you could say the credit or money brought in to the account is money made, but realize that this money must remain tied up until the trade is either closed or expiration happens ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-41-44-explore-your-options-by-tom-gentile-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-41-44-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-41-44-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354prre1,d,"{""minimum-quantity"":""1"",""path"":""ch3m2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:03 (42–44): Product Review: NinjaTrader 8, Part 2 by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Product Review: NinjaTrader 8, Part 2 by Jayanthi Gopalakrishnan
\nNINJATRADER, LLC
\n1422 Delgany Street, Suite 400
\nDenver, CO 80202
\nPhone: 312 262-1289
\nFax: 312 329-9888
\nInternet: www.ninjatrader.com
\nRequirements: Minimum requirements are Windows Vista (SP2) w/platform update, Windows 7, 8, or 10, Windows Server 2008 w/platform update, Windows Server 2008 R2 or later; 1 gigahertz (GHz) or faster 32-bit or 64-bit processor; 2 GB RAM; Microsoft. NET Framework 4.5; screen resolution of 1024x768; DirectX10 compatible graphics card.
\nProduct: Trading platform for active equity, futures, and forex traders.
\nPrice: Always free use for advanced charting, strategy backtesting, and strategy simulation. For live trading in your brokerage account, purchase it for $999 (or four monthly payments of $299); lease it for $600 annually, $330 semi-annually, or $180 quarterly; free through a NinjaTrader brokerage account.
Last month in part 1, I reviewed some of the many features of NinjaTrader 8 and ended by saying that this month I would cover the strategy development features and some of the advanced order-handling features. As mentioned in the first part, there are so many features available in NT8 that it’s impossible to cover all its features in a review. My objective here is to scratch the surface enough to reveal to you the powerfulness, efficiency, and flexibility of NT8. The platform will meet the needs of active traders, whether you’re a long-term or short-term trader, and whether you trade equities, futures, options, or forex ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-42-44-product-review-ninjatrader-8-part-2-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-42-44-product-review-ninjatrader-8-part-2-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-42-44-product-review-ninjatrader-8-part-2-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354gocr,d,"{""minimum-quantity"":""1"",""path"":""ch3m2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:03 (48–49): Golden Cross Breakouts by Ken Calhoun"",""caption-linebreaks"":""Golden Cross Breakouts by Ken Calhoun
A “golden cross” on a chart is typically defined as when the 50-day moving average crosses above the 200-day moving average, seen as a bullish sign. In this monthly column on trading breakouts, this professional trader shows how you can use this pattern as an entry signal for swing trades.
Whenever you are looking for swing trading breakout entries, it helps to use the same signals that institutional traders follow. One of the most popular patterns is the “golden cross,” in which a 50-period simple moving average (SMA) line crosses above a 200-period SMA. In this month’s column, you will see how to trade this useful breakout swing trading pattern ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-48-49-golden-cross-breakouts-by-ken-calhoun-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-48-49-golden-cross-breakouts-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-48-49-golden-cross-breakouts-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35562tr,d,"{""minimum-quantity"":""1"",""path"":""ch3m2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:03 (50–56, 62): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Ken Calhoun’s article in this issue, \""Golden Cross Breakouts.\"" Here, we present the March 2017 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-50-56-62-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-50-56-62-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-50-56-62-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov356sutr,d,"{""minimum-quantity"":""1"",""path"":""ch3m2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:03 (60–61): Successful Trader Must-Haves by Claudio Demb"",""caption-linebreaks"":""Successful Trader Must-Haves by Claudio Demb
How often have you sat at your trading desk with a solid plan that you want to follow and how often, after placing a trade, have you deviated from that plan? Emotions can wreak havoc on our trading lives and there’s nothing you can do to make them disappear. The first step toward combating them is to be aware of the existence of emotions.
I am tempted to start with the end and give away the punch line. So here it goes: Psychology is destiny. I agree that it sounds very categorical, and whether or not this is true doesn’t really matter. You still have to go through the motions. As a good friend of mine often said, “Not everything is psychological.” I know that what he said is true, but to be fair, he had to learn to deal with his emotional issues in order to become a good trader ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-60-61-successful-trader-must-haves-by-claudio-demb-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-60-61-successful-trader-must-haves-by-claudio-demb-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-60-61-successful-trader-must-haves-by-claudio-demb-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35746re,d,"{""minimum-quantity"":""1"",""path"":""ch3m2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:03 (7, 46–47): The Reality Of REITs by Leslie N. Masonson"",""caption-linebreaks"":""The Reality Of REITs by Leslie N. Masonson
I'm sure you’re familiar with the term REIT, or real estate investment trust. They were created by an act of Congress known as the Real Estate Investment Trust Act of 1960. A REIT is simply a common stock fund similar to a mutual fund that buys or finances real estate property or mortgages. They are often publicly traded on stock exchanges but many are non-public ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-7-46-47-the-reality-of-reits-by-leslie-n-masonson-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-7-46-47-the-reality-of-reits-by-leslie-n-masonson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-7-46-47-the-reality-of-reits-by-leslie-n-masonson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35812vi,d,"{""minimum-quantity"":""1"",""path"":""ch3m2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:03 (8–10, 12–13): VIX Or Historical Volatility? by Perry J. Kaufman"",""caption-linebreaks"":""VIX Or Historical Volatility? by Perry J. Kaufman
Position sizing is an often overlooked variable when it comes to strategizing your trades. There are different ways to decide how big your positions should be and here we look at a unique approach to size your positions using volatility.
First, let’s agree that always trading 100 shares, or one futures contract, isn’t as good as varying your position size based on price volatility. If you don’t agree, my first example will show why it’s a problem ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-8-10-12-13-vix-or-historical-volatility-by-perry-j-kaufman-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-8-10-12-13-vix-or-historical-volatility-by-perry-j-kaufman-31.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-8-10-12-13-vix-or-historical-volatility-by-perry-j-kaufman-32.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35812vi1,d,"{""minimum-quantity"":""1"",""path"":""faarfr209"",""ysw-page-title"":""Stocks & Commodities V. 35:03 (8–10, 12–13): VIX Or Historical Volatility? by Perry J. Kaufman"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-21817.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-8-10-12-13-vix-or-historical-volatility-by-perry-j-kaufman-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-03-8-10-12-13-vix-or-historical-volatility-by-perry-j-kaufman-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov351edin,d,"{""minimum-quantity"":""1"",""path"":""ch4a2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:04 (12–16): The Edge In Chart Patterns, Part 1 by Giorgos E. Siligardos, PhD"",""caption-linebreaks"":""The Edge In Chart Patterns, Part 1 by Giorgos E. Siligardos, PhD
When you see a chart pattern forming, most likely, others will see it too. What gives you an edge when you trade a chart pattern? This two-part article will help answer that question.
It is true that most technical methods involving chart patterns are based on simple observation and are not rigidly tested from a statistical point of view. What you read on the Internet, in books, or in magazines about chart patterns mostly discuss observations by the authors who notice something they believe to be valuable and share it with the public. Tom Bulkowski (a Contributing Writer to this magazine) is one of the few authors who provides success/failure statistics for chart patterns ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-12-16-the-edge-in-chart-patterns-part-1-by-giorgos-e-siligardos-phd-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-12-16-the-edge-in-chart-patterns-part-1-by-giorgos-e-siligardos-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-12-16-the-edge-in-chart-patterns-part-1-by-giorgos-e-siligardos-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35131as,d,"{""minimum-quantity"":""1"",""path"":""ch4a2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:04 (17, 31): Ascending Triangle Breakouts by Ken Calhoun"",""caption-linebreaks"":""Ascending Triangle Breakouts by Ken Calhoun
This month in our Trading On Momentum column, this professional trader introduces you to the ascending triangle pattern that you can use to help spot buying pressure as it builds.
Finding potential breakouts before they happen is a helpful visual scanning skill to develop. You can use ascending triangles to help you identify these new trading opportunities, because they reveal increasing buying pressure just in time to help you enter your position. You will see how to trade this useful bullish breakout trading pattern in this month’s column ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-17-31-ascending-triangle-breakouts-by-ken-calhoun-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-17-31-ascending-triangle-breakouts-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-17-31-ascending-triangle-breakouts-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov351plwi,d,"{""minimum-quantity"":""1"",""path"":""ch4a2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:04 (18–20): Playing With Numbers by Domenico D’Errico"",""caption-linebreaks"":""Playing With Numbers by Domenico D’Errico
Which strategy will give you a better return on account? Here we compare the performance of three strategies to see which comes out ahead.
Is it possible to “beat the market” by applying some type of trading rules to equities? Or is it better to use a simple buy & hold approach? Is there a way to test and compare some simple trading logic against buy & hold? In this article I’ll try to answer these questions and propose some ideas on how to analyze markets using a numerical-based approach. Are you ready to crunch some numbers?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-18-20-playing-with-numbers-by-domenico-d-errico-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-18-20-playing-with-numbers-by-domenico-d-errico-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-18-20-playing-with-numbers-by-domenico-d-errico-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35245ta,d,"{""minimum-quantity"":""1"",""path"":""ch4a2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:04 (22–24, 45): Taming The New Zealand Dollar by Azeez Mustapha"",""caption-linebreaks"":""Taming The New Zealand Dollar by Azeez Mustapha
The New Zealand dollar (NZD) often moves in a predictable manner when in a strong trend, and it brings opportunities when it undergoes short-term corrections. Here’s a trading method that allows you to recognize those corrections.
If you know the market you’re trading, you’re likely to find great trading opportunities at some point. The New Zealand dollar (NZD) is no exception. In this article I will describe a trading method designed to make quick profits following the release of some fundamental figures that affect the NZD ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-22-24-45-taming-the-new-zealand-dollar-by-azeez-mustapha-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-22-24-45-taming-the-new-zealand-dollar-by-azeez-mustapha-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-22-24-45-taming-the-new-zealand-dollar-by-azeez-mustapha-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35239fu,d,"{""minimum-quantity"":""1"",""path"":""ch4a2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:04 (25, 39): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
STOCKS VS. COMMODITIES
Is commodity trading riskier than stock trading?
Despite common assumptions, the answer to that question is no. If strictly speaking about speculation in prices, as opposed to long-term buy & hold investing strategies, the commodity markets are not any riskier than the stock market ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-25-39-futures-for-you-by-carley-garner-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-25-39-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-25-39-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35262ex,d,"{""minimum-quantity"":""1"",""path"":""ch4a2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:04 (26–27, 62): Exploiting Guts, Risk, And Decay by Karl Montevirgen"",""caption-linebreaks"":""Exploiting Guts, Risk, And Decay by Karl Montevirgen
Risk is a necessary part of the trading game. Here’s one strategy that could work for you if you have the experience, the capital, and the willingness to take on higher risk.
We all understand the basic notion that enterprise contains varying degrees of risk. Every undertaking, from a simple business project to the founding of a startup company, carries with it a probability of failure. As risk is seemingly embedded within the very fabric of enterprise, most people do their best to mitigate it ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-26-27-62-exploiting-guts-risk-and-decay-by-karl-montevirgen-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-26-27-62-exploiting-guts-risk-and-decay-by-karl-montevirgen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-26-27-62-exploiting-guts-risk-and-decay-by-karl-montevirgen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov352repr,d,"{""minimum-quantity"":""1"",""path"":""ch4a2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:04 (28–31): Recognizing Price Action by Matt Blackman"",""caption-linebreaks"":""Recognizing Price Action by Matt Blackman
Here’s a look at the anatomy of one trader’s winning trade.
In the first of two interviews I conducted with stock trader Dan Zanger for this magazine in 2003, I asked him what indicators he used to amass $18 million trading stocks in less than two years. His answer was surprisingly simple. “I use absolutely no indicators whatsoever. I simply rely on chart patterns, price, and volume. Who has the time to look at so many indicators when you scroll through 400 stocks a night?”
But the obvious question is, if it’s so simple, why don’t more people do it this way? Clearly, there’s more to Zanger’s success ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-28-31-recognizing-price-action-by-matt-blackman-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-28-31-recognizing-price-action-by-matt-blackman-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-28-31-recognizing-price-action-by-matt-blackman-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35334ju,d,"{""minimum-quantity"":""1"",""path"":""ch4a2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:04 (32, 34–36): Justin Bennett’s Trading Path by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Justin Bennett’s Trading Path by Jayanthi Gopalakrishnan
Justin Bennett made his very first trade at the age of 14 and quickly found out the challenges that the trading world can pose. But those challenges only encouraged him to keep learning and trading. Driven by the passion of the markets, he started trading equities and then moved on to trading the currency markets. His persistence paid off. Along the way, he found a method that works for him and brings him consistent profits. At his blog, DailyPriceAction.com, he offers courses on trading and shares his thoughts.
\nSTOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Justin Bennett on February 14, 2017 to find out more about what kept him going in his trading career in spite of running into roadblocks.
Justin, tell us a little bit about yourself. From your blog I understand that you started learning about the financial markets from a very young age. How did that come about?
\nI guess technically I started trading when I was about 14 or so. I don’t honestly know where the interest in stocks came from. One thing that’s interesting is that I remember my dad used to subscribe to this magazine, Technical Analysis of STOCKS & COMMODITIES ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-32-34-36-justin-bennett-s-trading-path-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-32-34-36-justin-bennett-s-trading-path-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-32-34-36-justin-bennett-s-trading-path-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov353exyo1,d,"{""minimum-quantity"":""1"",""path"":""ch4a2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:04 (38–39): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
RISK REVERSALS AND ROBBING PETER TO PAY PAUL
I often use options to speculate or to generate income. I anticipate future price movements and in what timeframe they will make those price moves. Then, instead of purchasing or selling short the stock, I take a position in either a call or put option based on my sense of price direction for that underlying security ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-38-39-explore-your-options-by-tom-gentile-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-38-39-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-38-39-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354gath,d,"{""minimum-quantity"":""1"",""path"":""ch4a2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:04 (40–42): Game Theory by John Devcic"",""caption-linebreaks"":""Game Theory by John Devcic
When you think of trading, the farthest thing from your mind is to compare it to playing a game. But studies have shown that the behavior of players in a game is not unlike the behavior of participants in the most complex game setting of all—the markets. We can take a cue from these studies.
There are two main branches of game theory—cooperative and noncooperative. Noncooperative game theory deals largely with how individuals interact with one another while trying to achieve their own goals. In this article I will focus on non-cooperative games. Game theory has been successfully used in biology, engineering, political science, and economics ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-40-42-game-theory-by-john-devcic-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-40-42-game-theory-by-john-devcic-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-40-42-game-theory-by-john-devcic-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354qaby1,d,"{""minimum-quantity"":""1"",""path"":""ch4a2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:04 (43–44): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
A LOSING TRADER FINDS HIS WAY
\""Oliver is so intent on following a blowing autumn leaf that he doesn’t even notice that he’s lost his way. All alone at the edge of the woods, he starts to cry. He cries and cries—but he is still lost. And so he rubs his nose and tries to think …\""—Oliver Finds His Way by Phyllis Root
This is a children’s book and within its pages, it describes a pattern I often observe with traders"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-43-44-q-a-by-rob-friesen-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-43-44-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-43-44-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354bofo,d,"{""minimum-quantity"":""1"",""path"":""ch4a2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:04 (46): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
A Complete Guide To The Futures Market: Technical Analysis, Trading Systems, Fundamental Analysis, Options, Spreads, And Trading Principles, second edition
Wiley 11th-Hour Guide For 2017 Level I CFA Exam
The 10-Minute Millionaire: The One Secret Anyone Can Use To Turn $2,500 Into $1 Million Or More
Reminiscences Of A Stock Operator"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-46-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-46-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-46-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354trti,d,"{""minimum-quantity"":""1"",""path"":""ch4a2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:04 (48–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Ken Calhoun’s article from the February 2017 issue, \""Volume-Weighted Moving Average Breakouts.\"" Here, we present the April 2017 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-48-56-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-48-56-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-48-56-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov356buse,d,"{""minimum-quantity"":""1"",""path"":""ch4a2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:04 (60–62): Building Self-Confidence by Stella Osoba, CMT"",""caption-linebreaks"":""Building Self-Confidence by Stella Osoba, CMT
There are certain traits a trader needs to succeed, and self-confidence is one of them. But how do you develop it so that it benefits your trading skills? Let’s find out.
In a previous article, I discussed the mastery of patience as an essential skill for the successful trader to cultivate. This article focuses on another essential skill: self-confidence. What is it, what isn’t it, and how do you go about becoming a self-confident trader?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-60-62-building-self-confidence-by-stella-osoba-cmt-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-60-62-building-self-confidence-by-stella-osoba-cmt-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-60-62-building-self-confidence-by-stella-osoba-cmt-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35745le,d,"{""minimum-quantity"":""1"",""path"":""ch4a2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:04 (7, 45): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
EXPONENTIAL STANDARD DEVIATION BANDS
Editor,
\nI enjoyed the article in the February 2017 issue by Vitali Apirine, “Exponential Standard Deviation Bands,” and am sorry to be the bearer of sad tidings but he has reinvented the wheel. Exponential Bollinger Bands, as we call this work, are more than 20 years old and are included in our Bollinger Band Tool Kits for TradeStation, NinjaTrader and other platforms ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-7-45-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-7-45-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-7-45-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35820di,d,"{""minimum-quantity"":""1"",""path"":""ch4a2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:04 (8–10, 20): Discounting Sentiment In The Euro by Philipe Saroyan"",""caption-linebreaks"":""Discounting Sentiment In The Euro by Philipe Saroyan
Excess returns from trading sentiment are only seen in the short run … or are they? Here’s a look at a sentiment trading tactic using a contrarian, indirect sentiment indicator applied to the euro ETF that shows how over the long term, you can use a sentiment trading strategy.
Sentiment can have an impact on the markets, directly and indirectly. This is the reason why sentiment indicators are differentiated between two categories, direct and indirect. In this article, I will look at the closed-end-fund discount indicator, which is an indirect sentiment indicator similar to the traditional put-call ratio and other modified put-call ratios such as the options sentiment indicator (OSI), which I described in an article in this magazine in the November 2016 issue ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-8-10-20-discounting-sentiment-in-the-euro-by-philipe-saroyan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-8-10-20-discounting-sentiment-in-the-euro-by-philipe-saroyan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-04-8-10-20-discounting-sentiment-in-the-euro-by-philipe-saroyan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov351moav,d,"{""minimum-quantity"":""1"",""path"":""ch5m2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:05 (12–16): Moving Average Stochastic by Vitali Apirine"",""caption-linebreaks"":""Moving Average Stochastic by Vitali Apirine
Two can be better than one. This momentum-based trading system uses two indicators and helps identify divergences and trends.
It's not unusual to look at two indicators simultaneously to determine when trends are about to begin, end, or continue. Crossovers of indicators are a popular analytical method used by technical analysts. The moving average stochastic (MAS) is one oscillator worth paying attention to. MAS is a momentum indicator system that shows the location of two exponential moving averages (EMAs) relative to the high–low range of the larger moving average over a set number of periods. MAS is based on the stochastic oscillator, which was developed by George C. Lane. There are two separate indicators: MAS(26) and MAS(12). MAS(26) measures the level of the 26-day moving average relative to its high–low range over a given period of time. MAS(12) shows the level of the shorter 12-day moving average relative to the high–low range of the larger 26-day moving average over a set number of periods ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-12-16-moving-average-stochastic-by-vitali-apirine-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-12-16-moving-average-stochastic-by-vitali-apirine-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-12-16-moving-average-stochastic-by-vitali-apirine-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov351edin1,d,"{""minimum-quantity"":""1"",""path"":""ch5m2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:05 (18–21): The Edge In Chart Patterns, Part 2 by Giorgos E. Siligardos, PhD"",""caption-linebreaks"":""The Edge In Chart Patterns, Part 2 by Giorgos E. Siligardos, PhD
Part 1 of this article showed how you can use a trading system to define the edge that a chart pattern gives you. This concluding part will elaborate on three practical issues relating to this subject: market frictions, sample populations, and capital restrictions.
Last month in part 1, I used the term profit factor (PF) to define the reward/risk part of a trade based on the pattern and then showed that the arithmetic average (mean) of many historical PFs under various market conditions provides what I called the historical edge of the pattern. Inferential statistics can then be used to provide a confidence range for the edge. I also provided an example of how you can determine an edge in the cup pattern. In that example, I performed an identification algorithm on daily charts of S&P 500 stocks from 1982 to 2014 to show a total of 3,991 cup formations. I backtested a specific trading system to show if “betting” on the cup pattern’s ability to produce uptrends gives the trader an edge. The results showed that betting on that pattern’s ability gave a historical 16.6% edge with an implied 99% confidence range of 9.1% to 24% as an estimate for the overall edge of the pattern. In this second part of the article, I will elaborate on three practical issues of the subject ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-18-21-the-edge-in-chart-patterns-part-2-by-giorgos-e-siligardos-phd-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-18-21-the-edge-in-chart-patterns-part-2-by-giorgos-e-siligardos-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-18-21-the-edge-in-chart-patterns-part-2-by-giorgos-e-siligardos-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35237ex,d,"{""minimum-quantity"":""1"",""path"":""ch5m2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:05 (22, 37): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
THE RATIO BACKSPREAD
Is there any other strategy besides calls and puts that allows you to limit risk and have unlimited upside potential?
There is, and I’ll show you how you can use a directional strategy called the ratio backspread. Ratio backspreads are one way to be directional on the markets, while at the same time creating a low-cost or even no-cost trade in the process. Ratio backspreads, just like calls and puts, are bullish or bearish depending on your outlook, and utilize one expiration date in the future as well ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-22-37-explore-your-options-by-tom-gentile-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-22-37-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-22-37-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35239de,d,"{""minimum-quantity"":""1"",""path"":""ch5m2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:05 (24–26, 39): Detecting Swings by Domenico D’Errico"",""caption-linebreaks"":""Detecting Swings by Domenico D’Errico
They’re ubiquitous in price charts but how do you make sense of them? Here are four ways to help find price swings.
When you think swing, you think of a back-and-forth or a side-to-side move. In the financial industry, a swing refers to price movement. This term is most commonly used when referring to a situation where the price of an asset experiences a significant change over a short period of time ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-24-26-39-detecting-swings-by-domenico-d-errico-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-24-26-39-detecting-swings-by-domenico-d-errico-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-24-26-39-detecting-swings-by-domenico-d-errico-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov352etfm,d,"{""minimum-quantity"":""1"",""path"":""ch5m2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:05 (27–29): ETF Momentum Investing by Leslie N. Masonson"",""caption-linebreaks"":""ETF Momentum Investing by Leslie N. Masonson
In the January 2017 issue of STOCKS & COMMODITIES, I wrote about factor-based investing using momentum as one of five investable factors (with the other four being quality, value, low volatility, and size). This column will delve into more detail about ETF momentum investing, since this has become a “hot” category as the stock market has been making continual new all-time highs almost weekly in early 2017. Not surprisingly, 27 momentum-based ETFs have come to the market since 2015 because of investor interest ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-27-29-etf-momentum-investing-by-leslie-n-masonson-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-27-29-etf-momentum-investing-by-leslie-n-masonson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-27-29-etf-momentum-investing-by-leslie-n-masonson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov353aleg,d,"{""minimum-quantity"":""1"",""path"":""ch5m2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:05 (30–33): The Alter Ego Of Swing Trading by Martha Stokes, CMT"",""caption-linebreaks"":""The Alter Ego Of Swing Trading by Martha Stokes, CMT
With so much coverage of blue-chip companies coming from popular media channels, tweets, or social chat rooms, traders often overlook small-cap stocks, which provide wider spreads and more liquidity. Find out how to capitalize on them.
While most retail traders continue to trade only Dow 30 stocks or large blue-chip stocks, they are missing out on an opportunity for swing trading. Why opportunity? In October 2016, a major internal change in market structure was set in place. For the first time in over a decade, spreads widened, as the Small Cap Pilot Test Program that had been going on behind the scenes was finally approved by the Securities and Exchange Commission (SEC). Since then, professional traders have been highly active in small caps as liquidity increases with wider spreads ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-30-33-the-alter-ego-of-swing-trading-by-martha-stokes-cmt-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-30-33-the-alter-ego-of-swing-trading-by-martha-stokes-cmt-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-30-33-the-alter-ego-of-swing-trading-by-martha-stokes-cmt-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov353mama,d,"{""minimum-quantity"":""1"",""path"":""ch5m2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:05 (34–37): Market Maker Activity And Price Movement by Samuel Ding"",""caption-linebreaks"":""Market Maker Activity And Price Movement by Samuel Ding
Can you predict the price movement of actively traded stocks based on the hedging activities of market makers? The results of these studies could help answer that question.
Peter Way, a veteran Chartered Financial Analyst (CFA), came up with an approach to predict the price movement of actively traded stocks based on the hedging activities of market makers. Between October 2009 and July 2016, he published several hundred articles providing forecasts of stock prices and his views of the market. One of the unique features in his forecasts is that he gives a price range with explicit downside exposure protection and time periods to achieve the targeted price.
Given that there was a good amount of data available, it will be interesting to take a close look at his forecasts and assess their performance from a third-party point of view ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-34-37-market-maker-activity-and-price-movement-by-samuel-ding-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-34-37-market-maker-activity-and-price-movement-by-samuel-ding-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-34-37-market-maker-activity-and-price-movement-by-samuel-ding-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov353qaby,d,"{""minimum-quantity"":""1"",""path"":""ch5m2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:05 (38–39): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
STRATEGIES FOR PERIODS OF LOW VOLATILITY
Traders have been hoping for and betting on increased volatility in 2017 only to be disappointed so far. Any discussion on volatility outcomes going forward may be rather, well, volatile.
Most S&C readers will be familiar with the VIX, the symbol for the CBOE Volatility Index, which shows the market’s expectation of 30-day volatility. Used as a fear gauge, or measure of market risk, it is calculated using the implied volatilities of puts and calls of the S&P 500 index. The CBOE derives an aggregate value of the volatility of a wide range of options, estimating how volatile they will become between the current date and the options expiration date ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-38-39-q-a-by-rob-friesen-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-38-39-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-38-39-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35442de,d,"{""minimum-quantity"":""1"",""path"":""ch5m2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:05 (40, 42–44): Deron Wagner and Rick Pedicelli On Swing Trading by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Deron Wagner and Rick Pedicelli On Swing Trading by Jayanthi Gopalakrishnan
A former hedge fund manager, author of several swing trading books, and frequent guest speaker at various trading and investing conferences, Deron Wagner founded Morpheus Trading Group (MTG), a trading newsletter and education service, in 2002 to share swing trading strategies he learned on his personal journey to become a trader. Through the years, he found that a simple “no-nonsense” approach to technical analysis is an ideal method to trade the markets.
Rick Pedicelli is the co-author of The Wagner Daily and has been working with Deron Wagner at Morpheus Trading since 2004. Prior to The Wagner Daily, he authored Morpheus Trading’s The Stalk Sheet, a trend-based swing trading newsletter, from 2004 to 2013.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Wagner and Pedicelli on March 15, 2017 to ask them about the advantages of swing trading versus other styles of trading.
Deron and Rick, how did you guys get interested in the financial markets and what led you to create Morpheus Trading Group?
\nDW: This is a great time to tell this story because 2017 marks the 15-year anniversary of the company I created. It was right around the dotcom boom and I didn’t know anything about stock trading but I was always good at math and interested in technical analysis. I had a sales job and so was able to work from home sometimes and started out on the side ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-40-42-44-deron-wagner-and-rick-pedicelli-on-swing-trading-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-40-42-44-deron-wagner-and-rick-pedicelli-on-swing-trading-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-40-42-44-deron-wagner-and-rick-pedicelli-on-swing-trading-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35462co,d,"{""minimum-quantity"":""1"",""path"":""ch5m2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:05 (45, 62): Consolidation Channel Breakouts by Ken Calhoun"",""caption-linebreaks"":""Consolidation Channel Breakouts by Ken Calhoun
When price trends between two parallel trendlines it is said to form a channel, and a consolidation channel is a sideways action where price is in a trading range. This month, this professional trader describes what to look for to have the best chances of success when trading breakouts from this pattern.
Entering breakouts above consolidation channels is a popular trading technique. The challenge you will face when trading with real money is that these will also often produce false breakouts, unless you know how to find specific, strong-trending patterns. The most important criteria you should visually scan for is seeing a prior uptrend before the consolidation channel, above which a new trade can be entered. In this month’s column, I’ll demonstrate how to enter this specific consolidation channel breakout pattern ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-45-62-consolidation-channel-breakouts-by-ken-calhoun-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-45-62-consolidation-channel-breakouts-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-45-62-consolidation-channel-breakouts-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35462fu,d,"{""minimum-quantity"":""1"",""path"":""ch5m2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:05 (46, 62): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
TRADING ON MARGIN
How is daytrading margin determined and enforced by futures brokers?
Daytrading margin is tricky because unlike position margin, which is set by the exchange, daytrading margin is levied by the brokerage. Accordingly, each brokerage service and perhaps even each individual broker might be willing to offer different daytrading margin rates ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-46-62-futures-for-you-by-carley-garner-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-46-62-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-46-62-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35462qu,d,"{""minimum-quantity"":""1"",""path"":""ch5m2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:05 (47–48, 62): Quick-Scan: TC2000 Version 17 by James E. Rich"",""caption-linebreaks"":""Quick-Scan: TC2000 Version 17 by James E. Rich
TC2000 Version 17
\nWorden Brothers, Inc.
\nPO Box 1139Wilmington, NC 28402
\nPhone: 800 776-4940 International: 919 408-0542
\nEmail: support@TC2000.com
\nInternet: www.TC2000.com
\nProduct: Stock market charting software
\nRequirements: Windows-based PC, or Mac with Parallels Desktop
\nPrice: The basic software and data services start at $9.99/month for Silver edition; $29.99/month for TC2000 Gold; $89.98/month for Platinum.
Worden Brothers’ TC2000 Version 17 software contains a myriad of distinct new features that make it stand out from every other market analysis software and from previous versions of TC2000. Also available is the TC2000 Brokerage, Inc., a separate company from Worden Brothers, Inc., affiliated through common ownership. TC2000 Brokerage, Inc. is a member of FINRA/SIPC.
Following is a rundown of some of the interesting features of TC2000 Version 17 ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-47-48-62-quick-scan-tc2000-version-17-by-james-e-rich-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-47-48-62-quick-scan-tc2000-version-17-by-james-e-rich-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-47-48-62-quick-scan-tc2000-version-17-by-james-e-rich-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354trti1,d,"{""minimum-quantity"":""1"",""path"":""ch5m2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:05 (49–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Domenico D’Errico’s article in this issue, \""Detecting Swings.\"" Here, we present the May 2017 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-49-56-traders-tips-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-49-56-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-49-56-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov356peef,d,"{""minimum-quantity"":""1"",""path"":""ch5m2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:05 (60–61): The Pernicious Effect Of The Loss Of Opportunity by Claudio Demb"",""caption-linebreaks"":""The Pernicious Effect Of The Loss Of Opportunity by Claudio Demb
Oh, the money you could have made if you had stayed in the trade longer! We all know that feeling, and here are some steps you can take to overcome that pain.
For some reason, even after many years of being a trader, I still struggle with the pain that comes from the loss of opportunity. When you exit a trade, and you see price continue to move in your favor, you tend to beat yourself up over it. You feel like you left money on the table. Why is it that the loss of opportunity feels so painful? There may not be a right answer to that question, but what really matters is that it is painful and the only way to confront that pain is to reckon with what to do ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-60-61-the-pernicious-effect-of-the-loss-of-opportunity-by-claudio-demb-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-60-61-the-pernicious-effect-of-the-loss-of-opportunity-by-claudio-demb-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-60-61-the-pernicious-effect-of-the-loss-of-opportunity-by-claudio-demb-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov358reon,d,"{""minimum-quantity"":""1"",""path"":""ch5m2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:05 (8–11): Reflecting On Price Mirrors by Thomas Bulkowski"",""caption-linebreaks"":""Reflecting On Price Mirrors by Thomas Bulkowski
Can we use prior price movement to predict the future?
Where will price be a week or a month from now? Here is a simple technique that will give you an answer. I call it a price mirror.
Figure 1 shows an example of the chart pattern head & shoulders top. The left shoulder (LS) is on the left side of the head. The right shoulder (RS) is approximately the same distance from the head, but on the right side, topping out near the same price, too. I drew a vertical blue line to illustrate how the left side of the pattern mirrors itself on the right, reflected across the line ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-8-11-reflecting-on-price-mirrors-by-thomas-bulkowski-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-8-11-reflecting-on-price-mirrors-by-thomas-bulkowski-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-05-8-11-reflecting-on-price-mirrors-by-thomas-bulkowski-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov351gapr,d,"{""minimum-quantity"":""1"",""path"":""ch6j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:06 (14–19): Gain Probability Index by Mike B. Siroky, MD"",""caption-linebreaks"":""Gain Probability Index by Mike B. Siroky, MD
You have to know (or estimate) your probability of gain and your payoff odds before entering a trade, but how do you estimate gain probability and payoff odds? Let’s find out.
Imagine a roulette wheel that has six red slots for every four black slots. If red comes up, the payoff is $3 to $2 while if black comes up, the payoff is $4 to $2. Should you bet on red, black, or not bet at all?
WHAT'RE THE ODDS\n
With the payoff information you know the payoff odds. They are 3:2 and 2:1. But you also need to know the probability of gain on each spin of the wheel and since there are six red slots out of every 10 slots, the probability of red — p — is 0.6 and the probability of black — q — is 0.4. Under these conditions, if you were to bet $2 on red 100 times, you would place at risk $200 and you can expect to win $1.00 x 60 wins and lose $2.00 x 40 losses for a net loss of $20.00. You can say that your expectancy for red is -10% ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-14-19-gain-probability-index-by-mike-b-siroky-md-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-14-19-gain-probability-index-by-mike-b-siroky-md-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-14-19-gain-probability-index-by-mike-b-siroky-md-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov352fufo,d,"{""minimum-quantity"":""1"",""path"":""ch6j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:06 (20): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
THE RETURN OF RUSSELL 2000
What will change when the Russell 2000 futures and options return to the CME Group in July 2017?
The Russell 2000 is a stock index often used as the benchmark for measuring the performance of US small-cap stocks. The Russell 2000 index is a subset of the Russell 3000 in which 2000 of the smallest securities are represented. Because the publicly traded companies included in the Russell 2000 are lower capital and often start-up type operations, this index is extremely volatile. Yet it is also an indicator of market sentiment. You will find that the Russell 2000 index has a habit of leading the broad market higher or lower ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-20-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-20-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-20-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35246th,d,"{""minimum-quantity"":""1"",""path"":""ch6j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:06 (22–25, 46): That Dodd-Frank Act by Koos van der Merwe"",""caption-linebreaks"":""That Dodd-Frank Act by Koos van der Merwe
How much of an impact does change in policy have on the underlying technicals on a chart? Here’s an interesting observation that looks at wave patterns.
Most of us are familiar with the Dodd-Frank Act and why it was brought into being. For those who don’t know, here’s a brief explanation on why it came into existence and why President Donald Trump wishes to either revise it or cancel it completely.
I’ll also revisit projections from some of the wave analysis techniques I often employ—the Kondratieff wave, the Paget cycle, and Elliott wave—to see where we could be in these cycles and how economic policy could influence or delay how they play out ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-22-25-46-that-dodd-frank-act-by-koos-van-der-merwe-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-22-25-46-that-dodd-frank-act-by-koos-van-der-merwe-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-22-25-46-that-dodd-frank-act-by-koos-van-der-merwe-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov352beaw,d,"{""minimum-quantity"":""1"",""path"":""ch6j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:06 (26–29): Be Aware Of Pin Risk by Roger Barone"",""caption-linebreaks"":""Be Aware Of Pin Risk by Roger Barone
If you’re a futures or option trader, this is one risk you should be aware of. Find out how to manage your positions to lessen the possibility of pin risk.
If you’re an option trader or thinking about trading options, it’s a good idea to familiarize yourself with your broker’s and the CME’s contrary instructions, deadlines, and procedures. Also know the relevant trading hours, option expiration dates, and daily settlement details ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-26-29-be-aware-of-pin-risk-by-roger-barone-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-26-29-be-aware-of-pin-risk-by-roger-barone-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-26-29-be-aware-of-pin-risk-by-roger-barone-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov353frma,d,"{""minimum-quantity"":""1"",""path"":""ch6j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:06 (30–32): Friday Market Tamer by Azeez Mustapha"",""caption-linebreaks"":""Friday Market Tamer by Azeez Mustapha
Fridays are usually quiet for currency traders, unless some fundamentals are released. But there is one strategy that can take advantage of the unpredictable nature of the markets on Fridays. Find out how to trade it.
Fridays—they’re the end of the week and something we look forward to. But since it’s the latter part of the US trading session, they tend to be the worst days to trade forex because liquidity usually dies down. While there is truth to this, there is one strategy that can take advantage of the unpredictable nature of the markets on Fridays. This article discusses the strategy and how you can use it to make your Fridays more lucrative as far as trading is concerned ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-30-32-friday-market-tamer-by-azeez-mustapha-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-30-32-friday-market-tamer-by-azeez-mustapha-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-30-32-friday-market-tamer-by-azeez-mustapha-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35341da,d,"{""minimum-quantity"":""1"",""path"":""ch6j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:06 (33, 41): Daytrading Gaps & Cups by Ken Calhoun"",""caption-linebreaks"":""Daytrading Gaps & Cups by Ken Calhoun
Learn to combine intraday gap and cup continuation patterns for strong entries. This professional daytrader shows you how.
Gap continuations are the single strongest trading pat-tern you will find when day and swing trading stocks and exchange-traded funds (ETFs). Daytrading stocks can be frustrating, however, if you enter momentum charts without specific technical entry signals, or try to day-trade the cheap, under-$10 haphazard, risky instruments that amateurs speculate (and usually lose) with. In this month’s column, I will show you how to combine intraday gap and cup continuation patterns for strong entries you can use for intraday trading with stocks in the ideal $20–$70 range that is favored by professional daytraders ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-33-41-daytrading-gaps-cups-by-ken-calhoun-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-33-41-daytrading-gaps-cups-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-33-41-daytrading-gaps-cups-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35336tr,d,"{""minimum-quantity"":""1"",""path"":""ch6j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:06 (34, 36–38): Trade Like A Warrior With Ross Cameron by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Trade Like A Warrior With Ross Cameron by Jayanthi Gopalakrishnan
His passion for trading is what makes him an aggressive trader, but outside of his two hours a day spent trading, Ross Cameron is realistic, patient, and practical. Cameron got exposed to trading very early in his life and, like most other traders, he experienced his share of low returns as well as large losses. But persistence paid off as he put his fair share of time into understanding the minds of traders, thinking outside the box, and developing the necessary skills to help identify stocks that are about to make big moves each day. He’s an educator at heart and likes to share his ideas with like-minded traders.
Jayanthi Gopalakrishnan, Editor of STOCKS & COMMODITIES magazine, spoke with Ross Cameron on April 18, 2017 to hear about his trading journey and how he became the trader he is now.
Ross, tell us about how you got interested in the financial markets.
I always had a little bit of interest in the markets when I was young. I went to a Montessori school and was fortunate that one of the programs I had in middle school was a semester on the stock market ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-34-36-38-trade-like-a-warrior-with-ross-cameron-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-34-36-38-trade-like-a-warrior-with-ross-cameron-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-34-36-38-trade-like-a-warrior-with-ross-cameron-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354exyo1,d,"{""minimum-quantity"":""1"",""path"":""ch6j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:06 (40–41): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
GOOD, BETTER AND BEST … TRADING SUMMER MARKET PATTERNS
One question I get asked just about every year around this time is what my outlook is for the summer, and how to best trade it. To answer these questions, I need to go back in history and look at what happened over the years before trying to determine the best approach to trading the summer of 2017 ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-40-41-explore-your-options-by-tom-gentile-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-40-41-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-40-41-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354qaby2,d,"{""minimum-quantity"":""1"",""path"":""ch6j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:06 (42–43): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
EFFECTIVE CONTRARIAN TRADING THROUGH LONG-SHORT COMBOS
In several of my previous columns, I discussed using pair trading to hedge against volatile markets. Last month, I focused on using three-ways or triads to increase production during periods of low volatility. This month, I will add to the ideas for increasing profits during low volatility and throw in some thoughts about contrarian trading ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-42-43-q-a-by-rob-friesen-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-42-43-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-42-43-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354quet,d,"{""minimum-quantity"":""1"",""path"":""ch6j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:06 (44–46): Quick-Scan: ETFScreen.com by Leslie N. Masonson"",""caption-linebreaks"":""Quick-Scan: ETFScreen.com by Leslie N. Masonson
ETFScreen.com LLC
\nEmail: support@etfscreen.com
\nInternet: www.etfscreen.com
\nRequirements: Windows 7 or higher and Internet access
\nProduct: Tools for investors and traders to rank ETF relative strength over six time periods up to one year, as well as backtesting capabilities.
\nPrice: The basic service is free. Premium access is $15.95/month and can be canceled at any time.
Traders or investors looking for ETFs with the strongest relative strength (total return performance) will find ETF-Screen.com useful and easy to use. And, as a bonus, this website also includes closed-end funds (CEF) and REITs as separate databases for viewing. Much of the site is free and there are many useful screens and options. Premium access offers users more than 15 years of data for backtesting compared to five years for the free service; additional rebalancing periods for backtesting; more options for Trend Explorer Model; ability to define personalized links; and many more features ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-44-46-quick-scan-etfscreen-com-by-leslie-n-masonson-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-44-46-quick-scan-etfscreen-com-by-leslie-n-masonson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-44-46-quick-scan-etfscreen-com-by-leslie-n-masonson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354bofo1,d,"{""minimum-quantity"":""1"",""path"":""ch6j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:06 (47): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
Problems and Solutions in Mathematical Finance: Equity Derivatives, Volume 2
Machine Trading: Deploying Computer Algorithms To Conquer The Markets
Gender Lens Investing: Uncovering Opportunities For Growth, Returns, And Impact
The Economic Indicator Handbook: How To Evaluate Economic Trends To Maximize Profits And Minimize Losses"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-47-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-47-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-47-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354trti2,d,"{""minimum-quantity"":""1"",""path"":""ch6j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:06 (48–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Domenico D’Errico’s article in this issue, “Daytrading With Night Volume.” Here, we present the June 2017 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-48-56-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-48-56-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-48-56-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov356gadu,d,"{""minimum-quantity"":""1"",""path"":""ch6j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:06 (60–62): Gail Dudack: The Technician’s Technician by Stella Osoba, CMT"",""caption-linebreaks"":""The Technician’s Technician by Stella Osoba, CMT
She started out on Wall Street in the days of the ticker tape and over the years became a go-to market authority and a respected technical analyst. Here, she shares her views on her career as a technician and strategist, the historical developments she’s witnessed that changed the course of Wall Street, and her opinions on the changing global financial landscape.
“I love the simplicity and discipline of technical analysis ... there is nothing that compares to the discipline that technical analysis adds to my work.” —Gail Dudack
Gail Dudack is a well-known financial market strategist and market authority whose work relies heavily on the use of technical analysis. During a career spanning more than four decades, she has worked with some of the largest pension funds, mutual funds, and hedge funds, helping them devise strategies for macro trades ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-60-62-gail-dudack-the-technician-s-technician-by-stella-osoba-cmt-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-60-62-gail-dudack-the-technician-s-technician-by-stella-osoba-cmt-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-60-62-gail-dudack-the-technician-s-technician-by-stella-osoba-cmt-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35743le,d,"{""minimum-quantity"":""1"",""path"":""ch6j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:06 (7, 43): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
PSYCHOLOGY OF TRADING
Editor,
\nI wanted to say thanks for Stella Osoba’s latest article (“Building Self-Confidence,” April 2017 S&C). I really enjoyed her quotes and perspective. Because of her article, I finally bought a subscription. If she knows of any great trading psychology books or other written works to check out, please let me know. I majored in psychology and I find my trading methods and technical analysis to be fine (I do forex primarily and use ichimoku charts) but I lack in the trust of my plan despite all my live testing for years now ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-7-43-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-7-43-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-7-43-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov358dawi,d,"{""minimum-quantity"":""1"",""path"":""ch6j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:06 (8–12): Daytrading With Night Volume by Domenico D’Errico"",""caption-linebreaks"":""Daytrading With Night Volume by Domenico D’Errico
Can the night session trading volume give you a hint as to what the market will do when the market opens? Here’s one perspective.
Daytrading—it’s exciting and at the same time, difficult. Intraday markets are often directionless, overcrowded, and “noisy,” but as I am sure most of you know, it is possible to effectively use daytrading strategies even though it may be tough. Here are some clues you can use to navigate the hurdles you may face when daytrading ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-8-12-daytrading-with-night-volume-by-domenico-d-errico-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-8-12-daytrading-with-night-volume-by-domenico-d-errico-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-06-8-12-daytrading-with-night-volume-by-domenico-d-errico-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov351qaby,d,"{""minimum-quantity"":""1"",""path"":""ch7j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:07 (16–17): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
THE MOON'S FORCE AGAINST THE EARTH IS NOT A ZERO-SUM GAME
I know, with this title, you are thinking that Rob has surely lost his marbles ... You are wondering what does he mean by this title and how does this relate to equities trading?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-16-17-q-a-by-rob-friesen-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-16-17-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-16-17-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov351exyo,d,"{""minimum-quantity"":""1"",""path"":""ch7j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:07 (18–19): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
IPO MELTDOWNS
Snap, crackle & pop. How can you protect yourself from an IPO fallout?
\nNow here’s a question I intend on getting a lot as IPO stocks don’t live up to their hype. There was a lot of excitement around the Snap Inc. (SNAP) IPO. Upon its initial public offering, the stock jumped immediately as retail investors, hot on the stock but not on the business aspects, piled in with the stock near $30 on the second day of trading. From there it plunged below $19 just two weeks later ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-18-19-explore-your-options-by-tom-gentile-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-18-19-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-18-19-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35237sw,d,"{""minimum-quantity"":""1"",""path"":""ch7j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:07 (20, 37): Swing Trading Bull Flags & Pennants by Ken Calhoun"",""caption-linebreaks"":""Swing Trading Bull Flags & Pennants by Ken Calhoun
Finding strong swing trading breakouts is often a matter of looking for exceptionally volatile chart patterns, like the flags and pennants you’ll be learning about in this month’s column.
Although you may often miss out on an initial breakout move, the good news is that strong, trending breakout charts tend to attract new buyers. You can capitalize on this by entering after a first strong breakout has already occurred, in anticipation of further uptrending price action. Entering above the highs of flags and pennants, similar to entering after gaps, can often provide you with excellent trading opportunities ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-20-37-swing-trading-bull-flags-pennants-by-ken-calhoun-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-20-37-swing-trading-bull-flags-pennants-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-20-37-swing-trading-bull-flags-pennants-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov352puof,d,"{""minimum-quantity"":""1"",""path"":""ch7j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:07 (22–23): Puppies Of The Dow by John Devcic"",""caption-linebreaks"":""Puppies Of The Dow by John Devcic
It’s a simple strategy, it eases the task of picking stocks to invest or trade in, and it narrows your focus to just five stocks. Here’s how to apply it.
What if I told you there was a simple-to-follow strategy that made picking stocks easy? You would probably think that’s a good start. Say I took it a step further and told you that for this strategy to work, you would have to pick only five stocks. It may bring rise to some amount of curiosity while at the same time make you feel skeptical. After all, there are thousands of stocks to choose from. Finding the right five is still going to be time-consuming ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-22-23-puppies-of-the-dow-by-john-devcic-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-22-23-puppies-of-the-dow-by-john-devcic-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-22-23-puppies-of-the-dow-by-john-devcic-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35246re,d,"{""minimum-quantity"":""1"",""path"":""ch7j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:07 (24–26, 46): The Return Of High Momentum by Perry J. Kaufman"",""caption-linebreaks"":""The Return Of High Momentum by Perry J. Kaufman
There’s no right or wrong way to look at the market. The reality is that with so many choices, you can get creative with your analysis techniques. Here’s a look at how to combine two related indexes and use opposite strategies for each.
A long, long time ago, back in the 1990s, we had a method called high-momentum trading. It was a short-term strategy that took advantage of over-bought and oversold conditions—not by fading them (selling overbought and buying oversold values), but by buying overbought and selling oversold situations. It seems contrary to the concept of being overbought or oversold, but it’s all about timing ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-24-26-46-the-return-of-high-momentum-by-perry-j-kaufman-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-24-26-46-the-return-of-high-momentum-by-perry-j-kaufman-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-24-26-46-the-return-of-high-momentum-by-perry-j-kaufman-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov352fufo1,d,"{""minimum-quantity"":""1"",""path"":""ch7j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:07 (27): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
CANADIAN CUSTOMERS AND ANTI-COMPETITIVENESS
Why won’t most US commodity brokers accept Canadians as clients?
\nWhen I entered the commodity brokerage industry in 2004, opening an account for a Canadian client required a little more paperwork but it was possible. In fact, we had a number of clients in nearly all parts of Canada. At the time, Canadian regulations were hinting at an anti-competitive stance but the country’s government was still giving its citizens the option to seek out US brokers to open trading accounts ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-27-futures-for-you-by-carley-garner-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-27-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-27-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov352tral,d,"{""minimum-quantity"":""1"",""path"":""ch7j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:07 (28–30): Trendline Algorithm by Dirk Vandycke"",""caption-linebreaks"":""Trendline Algorithm by Dirk Vandycke
It’s likely that in the decades to come, we’ll be ruled by big data and artificial intelligence. And at the heart of it are algorithms. Here’s an algorithm that’ll help calculate trendlines and the indicators behind them.
An algorithm is created to solve a problem and its real leverage is that a computer can run it. So once a solution surfaces, a computer can apply it rigorously and tirelessly over and over again.
This article isn’t a discussion on how to use trendlines or about how valuable they are. Many traders use trendlines and it’s well understood that they are valuable tools ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-28-30-trendline-algorithm-by-dirk-vandycke-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-28-30-trendline-algorithm-by-dirk-vandycke-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-28-30-trendline-algorithm-by-dirk-vandycke-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35334in,d,"{""minimum-quantity"":""1"",""path"":""ch7j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:07 (32, 34–37): Interview: Bart DiLiddo Of VectorVest by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Bart DiLiddo Of VectorVest by Jayanthi Gopalakrishnan
If you’ve ever attended a trading event or expo, chances are you’ve met or at least know of Bart DiLiddo —“Dr. D,” founder of VectorVest. With over 30 years of experience in the financial markets and a quantitative background, Dr. D has a unique perspective of the markets.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Dr. D on May 8, 2017 about how he came up with the techniques he uses to identify which stocks he trades, and how he created VectorVest software from his ideas.
Bart, you have a mathematical background. How did you get interested in the financial markets?
\nI got a PhD in chemical engineering in 1960, and it required extensive knowledge of advanced mathematics. Upon graduation, I worked in a research lab in Brecksville, OH. Many people I was working with were involved in the stock market. They had a stock club and I got interested in it because they were thinking ahead about retirement. That made a lot of sense to me so I started reading up on the stock market. I was asked to join the club and that’s what got me started ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-32-34-37-interview-bart-diliddo-of-vectorvest-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-32-34-37-interview-bart-diliddo-of-vectorvest-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-32-34-37-interview-bart-diliddo-of-vectorvest-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov353stin,d,"{""minimum-quantity"":""1"",""path"":""ch7j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:07 (38–41): Straddles In FX by Solomon Chuama"",""caption-linebreaks"":""Straddles In FX by Solomon Chuama
News releases around the world can impact the currency markets. How can you take advantage of trading opportunities that can come up? Here’s a profitable trading strategy you can apply to forex trades.
High-impact news releases such as nonfarm payroll (NFP), Consumer Price Index (CPI), retail sales, central bank meetings, interest rate decisions, and trade balances can impact the forex markets. They’re binary events, so you don’t know what direction prices will move after the news is released. The straddle strategy, which was developed to trade high-impact news releases, intends to catch the move caused by the news release regardless of the direction of the market ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-38-41-straddles-in-fx-by-solomon-chuama-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-38-41-straddles-in-fx-by-solomon-chuama-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-38-41-straddles-in-fx-by-solomon-chuama-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354buyo,d,"{""minimum-quantity"":""1"",""path"":""ch7j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:07 (42–46): Build Your Own Technical Rating by Domenico D’Errico"",""caption-linebreaks"":""Build Your Own Technical Rating by Domenico D’Errico
Yes, it is possible to create a rating system with technical indicators, one that could be as effective as a fundamental analyst’s rating system. Here’s how.
Investors have a love–hate relationship with stock ratings. On the one hand, stock ratings are loved because they succinctly convey how an analyst feels about a stock. On the other hand, they are hated because they can often be a manipulative sales tool ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-42-46-build-your-own-technical-rating-by-domenico-d-errico-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-42-46-build-your-own-technical-rating-by-domenico-d-errico-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-42-46-build-your-own-technical-rating-by-domenico-d-errico-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354trti3,d,"{""minimum-quantity"":""1"",""path"":""ch7j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:07 (48–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Markos Katsanos’s article in this issue, “Trading The Nikkei.” Here, we present the July 2017 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-48-56-traders-tips-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-48-56-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-48-56-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov356thin,d,"{""minimum-quantity"":""1"",""path"":""ch7j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:07 (60–61): Theme-Based Investing by Leslie N. Masonson"",""caption-linebreaks"":""Theme-Based Investing by Leslie N. Masonson
Are you interested in learning more about using exchange traded funds (ETFs) in your trading? Leslie N. Masonson, an active ETF trader, is president of Cash Management Resources, a financial consulting firm that focuses on ETF strategies. He is the author of Buy—Don’t Hold: Investing With ETFs Using Relative Strength To Increase Returns With Less Risk; and All About Market Timing, as well as Day Trading On The Edge. His website is www.buydonthold.com, where he writes a weekly blog. To submit topics for future columns, reach him at lesmasonson@yahoo.com.
Most investors and traders are familiar with the attributes and potential profit opportunities of investing a portion of their assets in sector mutual funds or ETFs such as the 11 Select Sector SPDRs. A more dynamic entry into the ETF universe has emerged that may surpass sector investing as the next major ETF category. This new niche is known as thematic or theme-based ETFs and there are about 30 in existence at the present time. Think of them as subsets of sector funds. Moreover, they are future-looking ETFs trying to capture alpha from new technologies, environmental and climate changes, clean energy, artificial and robotic activity, aging population, cyber security, and other newly developing fields ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-60-61-theme-based-investing-by-leslie-n-masonson-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-60-61-theme-based-investing-by-leslie-n-masonson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-60-61-theme-based-investing-by-leslie-n-masonson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov356bofo1,d,"{""minimum-quantity"":""1"",""path"":""ch7j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:07 (62): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
Trend Following: How To Make A Fortune In Bull, Bear, And Black Swan Markets, 5th ed.
Adaptive Markets: Financial Evolution At The Speed Of Thought
Derivatives
The Derivatives Workbook"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-62-books-for-traders-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-62-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-62-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35741le,d,"{""minimum-quantity"":""1"",""path"":""ch7j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:07 (7, 41): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
MOVING AVERAGE STOCHASTIC
\nEditor,
\nI read with interest Vitali Apirine’s article in the May 2017 issue of STOCKS & COMMODITIES on the MAS indicator (“Moving Average Stochastic”).
Is there any way to incorporate this indicator into TD Ameritrade’s thinkorswim platform?
\nJ. Garrett
Author Vitali Apirine replies:
\nUnfortunately, I don’t work with the thinkorswim platform. Instead, I can provide MetaStock code for the MAS indicator ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-7-41-letters-to-s-c-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-7-41-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-7-41-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov3581430,d,"{""minimum-quantity"":""1"",""path"":""ch7j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:07 (8–12, 14–15, 30): Trading The Nikkei by Markos Katsanos"",""caption-linebreaks"":""Trading The Nikkei by Markos Katsanos
It’s no surprise there is a correlation between the Nikkei 225 index and the Japanese yen. Find out how you can exploit this correlation using this intermarket divergence system.
A weak exchange rate tends to benefit exporting companies, as this makes the goods they produce cheaper and therefore more competitive in foreign countries; this is a reasonable assumption. This scenario was evident in the case of British equities. Since the Brexit vote in June 2016 and until the beginning of 2017, the British pound fell 18.7% against the US dollar while stocks in London’s FTSE 100 benchmark index rose by 17.2% over the same period ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-8-12-14-15-30-trading-the-nikkei-by-markos-katsanos-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-8-12-14-15-30-trading-the-nikkei-by-markos-katsanos-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-07-8-12-14-15-30-trading-the-nikkei-by-markos-katsanos-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov351syde,d,"{""minimum-quantity"":""1"",""path"":""ch8a2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:08 (14–18): System Development Using Artificial Intelligence by Domenico D’Errico & Giovanni Trombetta"",""caption-linebreaks"":""System Development Using Artificial Intelligence by Domenico D’Errico & Giovanni Trombetta
Are humans or computers better at trading? This question has been around on many fronts since the era of punch cards, and as technology advances, you question whether machines have limits. It’s the same with trading, and here’s an algorithm that may shed some light on which performs better.
Many money managers and financial professionals profess that the best traders are born with an inherent sixth sense of the markets that becomes more refined through experience; most of them believe that algorithmic strategies cannot hold up over time and on multiple financial instruments ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-14-18-system-development-using-artificial-intelligence-by-domenico-d-errico-giovanni-trombetta-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-14-18-system-development-using-artificial-intelligence-by-domenico-d-errico-giovanni-trombetta-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-14-18-system-development-using-artificial-intelligence-by-domenico-d-errico-giovanni-trombetta-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35246se,d,"{""minimum-quantity"":""1"",""path"":""ch8a2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:08 (20–22, 46): Seasonality Pivot Points by Karl Montevirgen"",""caption-linebreaks"":""Seasonality Pivot Points by Karl Montevirgen
Markets, some more than others, are impacted by seasonal tendencies such as production schedules, weather, and supply/demand conditions. A deeper analysis into these seasonal patterns can help reveal the reality behind price movements and could help in your strategy development. Here’s how.
Market seasonality is essentially a history of price movements, but one whose sole aim is to record patterns of consistency. These patterns, often appearing cyclical, may have some basis in actual supply/demand conditions. It is because of this possibility alone that some traders are tempted to view these patterns as market “tendencies.” Sadly, seasonality analysis has been slightly stigmatized by this erroneous and popular view ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-20-22-46-seasonality-pivot-points-by-karl-montevirgen-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-20-22-46-seasonality-pivot-points-by-karl-montevirgen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-20-22-46-seasonality-pivot-points-by-karl-montevirgen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35229fu,d,"{""minimum-quantity"":""1"",""path"":""ch8a2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:08 (23, 29): Futures For You by Carley Garner"",""caption-linebreaks"":""Stocks & Commodities V. 35:08 (23, 29): Futures For You by Carley Garner
THE TRANSITION FROM OPEN OUTCRY (PART 1 OF 2)
The CME closed the majority of open outcry pits at the end of last year. What are the advantages and disadvantages of the futures markets moving exclusively to the “screen”?
\nThere are obviously more advantages to electronic markets than disadvantages, but there are some drawbacks to futures and options trading moving to the “screens” from the open outcry pits. Further, there were mass casualties to industry insiders ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-23-29-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-23-29-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-23-29-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov352eawa,d,"{""minimum-quantity"":""1"",""path"":""ch8a2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:08 (24–28): An Early Warning System, Part 1 by Mike Slattery"",""caption-linebreaks"":""An Early Warning System, Part 1 by Mike Slattery
Irrational human behavior influences stock prices, and this behavior can lead to predictable outcomes. Here’s a trading system that takes advantage of overreactions in the market, which could give you a trading edge.
I discovered what I call my early warning system after combining two indicators of different origins. The first stemmed from the type of hyperbolic promotion that all individual online retail traders have received at some point: “We’re going to make you wealthy beyond your wildest dreams.” This pitch capitalized on an old and well-established trading convention of entering a stock in a long-term uptrend after a short-term drop below a medium- or short-term moving average ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-24-28-an-early-warning-system-part-1-by-mike-slattery-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-24-28-an-early-warning-system-part-1-by-mike-slattery-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-24-28-an-early-warning-system-part-1-by-mike-slattery-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov353riwa,d,"{""minimum-quantity"":""1"",""path"":""ch8a2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:08 (30–33): Riding The Waves With The Leavitt Convolution by Jay A. Leavitt, PhD"",""caption-linebreaks"":""Riding The Waves With The Leavitt Convolution by Jay A. Leavitt, PhD
Here’s an indicator that is predictive and has an associated probability function. Combine them with other probabilities to form a strategy that trades bull put spreads for SPX and QQQ concurrently.
In this article, I will present a proof of concept for the Leavitt convolution, which is an indicator that I modeled after the Hull moving average. The Leavitt convolution is not only faster and as smooth, but it is also a market predictor ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-30-33-riding-the-waves-with-the-leavitt-convolution-by-jay-a-leavitt-phd-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-30-33-riding-the-waves-with-the-leavitt-convolution-by-jay-a-leavitt-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-30-33-riding-the-waves-with-the-leavitt-convolution-by-jay-a-leavitt-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35336in,d,"{""minimum-quantity"":""1"",""path"":""ch8a2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:08 (34, 36–38): Interview: Risk Management With David Stendahl by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Risk Management With David Stendahl by Jayanthi Gopalakrishnan
With over 25 years of experience in trading and designing pattern and momentum-style trading systems, David Stendahl knows risk management inside-out. Stendahl is founder and president of Signal Trading Group and focuses on trading the global futures markets. He follows a systematic, low-leveraged, highly diversified trading regimen. You can follow him on Twitter at @David_Stendahl.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke to Stendahl on June 19, 2017 about the different aspects of risk management.
David, I last interviewed you in August 2012. What have you been up to since then?
\nI’ve been trading on my own, starting a new website and loving life ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-34-36-38-interview-risk-management-with-david-stendahl-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-34-36-38-interview-risk-management-with-david-stendahl-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-34-36-38-interview-risk-management-with-david-stendahl-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov353qaby1,d,"{""minimum-quantity"":""1"",""path"":""ch8a2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:08 (39–40): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
FOUR OPPORTUNITIES SURROUNDING STOCK DIVIDENDS
Last month I covered a fair number of soft edges you can have in trading, but I didn’t mention anything about equities that pay dividends, their influence, and opportunities that surround them ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-39-40-q-a-by-rob-friesen-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-39-40-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-39-40-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354exyo2,d,"{""minimum-quantity"":""1"",""path"":""ch8a2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:08 (42–43): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
HOT AUGUST NIGHTS … AND METALS!
Ahhh! The sweltering days of August have almost arrived. This means it’s time to make sure the air conditioner is going to make it through the summer since this is the time it runs the most. It’s also the time when kids are thinking of their next school year and their parents are thinking of the day the bus shows up to take them away ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-42-43-explore-your-options-by-tom-gentile-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-42-43-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-42-43-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354alla,d,"{""minimum-quantity"":""1"",""path"":""ch8a2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:08 (44–46): All About The Float by John Devcic"",""caption-linebreaks"":""All About The Float by John Devcic
The float in a stock is a number that is easily available along with other data, but do we pay enough attention to it in our analysis? Here’s an in-depth look at float.
Wall Street is filled with terms that on the face of it seem easy to understand but often have a deeper meaning that many investors and traders can overlook. One such term that has been around for as long as stocks have been traded is float. Let’s take a look at what float is and how it can help an investor or trader ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-44-46-all-about-the-float-by-john-devcic-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-44-46-all-about-the-float-by-john-devcic-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-44-46-all-about-the-float-by-john-devcic-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354bofo2,d,"{""minimum-quantity"":""1"",""path"":""ch8a2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:08 (47): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
Quantitative Momentum: A Practitioner’s Guide To Building A Momentum-Based Stock Selection System
How To Pick Quality Shares: A Three-Step Process For Selecting Profitable Stocks
Rogues Of Wall Street: How To Manage Risk In The Cognitive Era
Investing All-In-One For Dummies
The Ten Roads To Riches: The Ways The Wealthy Got There (And How You Can Too!), 2d ed."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-47-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-47-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-47-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354trti4,d,"{""minimum-quantity"":""1"",""path"":""ch8a2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:08 (48–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Domenico D’Errico and Giovanni Trombetta’s article in this issue, “System Development Using Artificial Intelligence.” Here, we present the August 2017 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-48-56-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-48-56-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-48-56-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov356unex,d,"{""minimum-quantity"":""1"",""path"":""ch8a2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:08 (60–61): Unrealistic Expectations by Claudio Demb"",""caption-linebreaks"":""Unrealistic Expectations by Claudio Demb
When it comes to trading, especially in the early part of developing into a trader, there is a tendency to downplay what it takes to operate a trading system well. It looks easy on paper but when it comes to real trading, it’s a different ball game.
We all go through this—the tendency to downplay the amount of work it takes to accomplish something big. It’s as if our mind, at the idea level, thinks it will be much easier than it really is. But in reality, getting from A to B can take a while. I’m going to refer to this common phenomenon as “unrealistic expectations” ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-60-61-unrealistic-expectations-by-claudio-demb-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-60-61-unrealistic-expectations-by-claudio-demb-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-60-61-unrealistic-expectations-by-claudio-demb-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35743av,d,"{""minimum-quantity"":""1"",""path"":""ch8a2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:08 (7, 43): Avoiding False Breakouts: “No 9s” by Ken Calhoun"",""caption-linebreaks"":""Avoiding False Breakouts: “No 9s” by Ken Calhoun
Each month, this professional trader offers insights into the professional trading world with a different momentum trading topic or breakout technique for active traders. This month, the breakout strategy discussed isn’t so much about what to do as what not to do.
One of the biggest challenges you will face as an active trader is false breakouts, where a chart pattern fails to continue once a trade is entered. The best way to avoid these costly trading errors is to become familiar with specific strategies and technical patterns that often lead to false breakouts ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-7-43-avoiding-false-breakouts-no-9s-by-ken-calhoun-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-7-43-avoiding-false-breakouts-no-9s-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-7-43-avoiding-false-breakouts-no-9s-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35838vo,d,"{""minimum-quantity"":""1"",""path"":""ch8a2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:08 (8–12, 38): Volatility Oscillator by Vitali Apirine"",""caption-linebreaks"":""Volatility Oscillator by Vitali Apirine
It’s versatile—you can use it to identify overbought/oversold levels, divergences, and trends. Here are some ways you can use it.
The volatility oscillator is an indicator that measures the percentage of standard deviation. The volatility oscillator (VolatOsc) is based on the idea of trading bands, which is something that was developed by John Bollinger. VolatOsc decreases as standard deviation narrows and increases as standard deviation widens. VolatOsc fluctuates above and below the zero line. The indicator also has volatility bands placed above and below the zero line. Even though the VolatOsc is unbounded, you can use it to identify overbought and oversold levels. Divergences between price and the indicator can also generate trading signals. And you can use VoltOsc to identify the general trend ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-8-12-38-volatility-oscillator-by-vitali-apirine-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-8-12-38-volatility-oscillator-by-vitali-apirine-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-08-8-12-38-volatility-oscillator-by-vitali-apirine-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35125fu,d,"{""minimum-quantity"":""1"",""path"":""ch9s1"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:09 (13, 25): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
THE TRANSITION FROM OPEN OUTCRY (PART 2 OF 2)
The CME closed the majority of open outcry pits at the end of last year. What are the advantages and disadvantages of the futures markets moving exclusively to the “screen”?
Last month, I outlined some of the positive changes in the commodity industry resulting from the decline of open outcry trading. This month, I want to focus on some of the drawbacks (or at least minor grievances) ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-13-25-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-13-25-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-13-25-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov351prfr,d,"{""minimum-quantity"":""1"",""path"":""ch9s1"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:09 (14–17): Profiting From Monthly Trading Cycles by Domenico D’Errico"",""caption-linebreaks"":""Profiting From Monthly Trading Cycles by Domenico D’Errico
Price movement in stocks comes in waves, and within waves are more cyclical waves. What’s the best way to analyze them? Here’s a look at using a scientific approach to measure cycles.
The concept of a repetitive sequence of events in a process that plays out over time is common in nature and can affect any aspect of human life. You find it in agricultural cycles, astronomical, business, climate, economic, electromagnetic, music, social, just about anything. Any science discipline has its own cycles, and analyzing them can help to understand how things work.
In this article I will focus on stock price cycles using a scientific approach. I will start with some observations, then come up with some possible theoretical explanations, then perform some experiments to validate them ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-14-17-profiting-from-monthly-trading-cycles-by-domenico-d-errico-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-14-17-profiting-from-monthly-trading-cycles-by-domenico-d-errico-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-14-17-profiting-from-monthly-trading-cycles-by-domenico-d-errico-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35147op,d,"{""minimum-quantity"":""1"",""path"":""ch9s1"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:09 (18–21, 47): Optimization—Getting It Right by Perry J. Kaufman"",""caption-linebreaks"":""Optimization—Getting It Right by Perry J. Kaufman
Creating a trading system is hard work and we want our system to work well. Oftentimes, we get carried away by trying to tweak it so it works the way we want it to. But that can lead to unrealistic results. Here’s one way to set realistic expectations when optimizing trading systems.
We all know the worst about optimization—it leads to overfitting, and overfitting means there is little chance a system will work. It’s not that the system rules are wrong. It’s that the parameters are too finely tuned. They are so closely tied to the exact patterns of the historical data that they won’t work on any data that’s different, which is the most recent data. My experience with an overfitted system is that most trades end up as losses.
Does that mean that optimization is wrong? Optimization itself is not the wrong thing to do. Rather, it’s the way that it’s done and the way the results are interpreted that could be incorrect ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-18-21-47-optimization-getting-it-right-by-perry-j-kaufman-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-18-21-47-optimization-getting-it-right-by-perry-j-kaufman-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-18-21-47-optimization-getting-it-right-by-perry-j-kaufman-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov352eawa1,d,"{""minimum-quantity"":""1"",""path"":""ch9s1"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:09 (22–25): An Early Warning System, Part 2 by Mike Slattery"",""caption-linebreaks"":""An Early Warning System, Part 2 by Mike Slattery
Some trading signals are better than others. In this second part of a three-part series, we’ll describe a filter that’ll help identify optimal swing trading buy/sell points.
Last month in part 1, I introduced my early warning system (EWS), which combines two indicators of different origins and defines a window of opportunity for a trade. Here in part 2, I’ll introduce a swing trading system with the EWS as its foundation that produces relative reference points for a definitive and optimal entry/exit signal within that window.
TARGETING THE WINDOW OF OPPORTUNITY
\nThe EWS produces two primary signals that flank this trading window. The first signal serves as a warning or alert, indicating that your stock is approaching a potential turning point (see Figure 1). The second signal serves as confirmation that this turning point has occurred and that the stock or equity has crossed over or under the short-term moving filter that produces the horizontal, center demarcation line for this indicator ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-22-25-an-early-warning-system-part-2-by-mike-slattery-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-22-25-an-early-warning-system-part-2-by-mike-slattery-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-22-25-an-early-warning-system-part-2-by-mike-slattery-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov352fopo,d,"{""minimum-quantity"":""1"",""path"":""ch9s1"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:09 (26–28): Focal Points by Dirk Vandycke"",""caption-linebreaks"":""Focal Points by Dirk Vandycke
Financial survival and thriving in trading and investing could have something to do with knowing where to look and what to look for. This article explains why and how.
Survival—it’s one of life’s necessities. Think of being stranded on an island. How do you start a fire? You could do it by concentrating sunlight into binocular lenses or a piece of ice or by applying friction. Likewise, financial survival and thriving in trading and investing may depend on being able to spot focal points or places of friction.
MAKING MONEY IN THE MARKETS
\nYou could extract money from the markets by using a myriad of systems against an even wider range of philosophies, more generally referred to as “beliefs” about the market. There are many books on trading and investing that try to help you find your edge based on your beliefs about the markets. But for this approach to succeed, you need beliefs that are true and an edge that is real ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-26-28-focal-points-by-dirk-vandycke-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-26-28-focal-points-by-dirk-vandycke-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-26-28-focal-points-by-dirk-vandycke-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35336ga,d,"{""minimum-quantity"":""1"",""path"":""ch9s1"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:09 (30–34, 36): Gann And Gann Analysis by Mark Putrino, CMT"",""caption-linebreaks"":""Gann And Gann Analysis by Mark Putrino, CMT
There’s a lot of trading lore behind the life and trading career of W.D. Gann. How much of it is true and how much has been exaggerated? Here’s a deeper look.
What exactly is behind the legend of W.D. Gann? We often think of him being held up as a legendary trader and as having developed useful trading techniques. But yet, in the almost two decades I have spent as an institutional trader, I can tell you that I never heard a professional trader or money manager ever once mention Gann analysis.
I did come across the methodology while studying for the Chartered Market Technician (CMT) designation, but that was a long time ago and I had since forgotten many things about it. So I decided to embark on an in-depth study of Gann, and I was surprised by some of my findings and conclusions. I will share some of what I learned here ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-30-34-36-gann-and-gann-analysis-by-mark-putrino-cmt-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-30-34-36-gann-and-gann-analysis-by-mark-putrino-cmt-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-30-34-36-gann-and-gann-analysis-by-mark-putrino-cmt-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov353exyo2,d,"{""minimum-quantity"":""1"",""path"":""ch9s1"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:09 (35–36): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
THE SCARIEST TWO MONTHS 0F THE YEAR
Are there any specific option strategies someone could use to protect himself or herself during September and October, which are the two months of the year that have been the scariest in the past?
There are times of the year when the markets perform extremely well. This isn’t one of those times. This is the time of the year is when the more dramatic and severe crashes in the markets have happened, and these months are stuck with the reputation of being months to be wary of ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-35-36-explore-your-options-by-tom-gentile-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-35-36-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-35-36-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35340in,d,"{""minimum-quantity"":""1"",""path"":""ch9s1"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:09 (38, 40–42): Interview: An Insight Into Cycles With Ed Easterling by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: An Insight Into Cycles With Ed Easterling by Jayanthi Gopalakrishnan
Navigating the financial markets can be a science and an art. Ed Easterling, founder and president of Crestmont Research, is able to combine the science and art of market analysis and come up with some interesting perspectives on the markets. He shares his insights and publishes provocative research on the financial markets at his website, www.CrestmontResearch.com. He is the author of Unexpected Returns: Understanding Secular Stock Market Cycles and Probable Outcomes: Secular Stock Market Insights, contributing author to Just One Thing: Twelve Of The World’s Best Investors Reveal The One Strategy You Can’t Overlook, and coauthor of chapters about Crestmont’s research in Bull’s Eye Investing by John Mauldin.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Ed Easterling on July 13, 2017 to hear his perspective on secular markets, where we are in the current cycle, and what to expect going forward.
Ed, can you tell us a little bit about yourself and how you got interested in the financial markets?
\nCertainly, and it goes as far back as high school. I was just fascinated, for whatever reason, with the stock market and maintained an interest in it through college. Then after graduation, I had a brief stint in the commodities trading industry early in the 1980s ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-38-40-42-interview-an-insight-into-cycles-with-ed-easterling-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-38-40-42-interview-an-insight-into-cycles-with-ed-easterling-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-38-40-42-interview-an-insight-into-cycles-with-ed-easterling-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35456al,d,"{""minimum-quantity"":""1"",""path"":""ch9s1"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:09 (44–45, 56): All-Inclusive ETF Websites by Leslie N. Masonson"",""caption-linebreaks"":""All-Inclusive ETF Websites by Leslie N. Masonson
Are you interested in learning more about using exchange traded funds (ETFs) in your trading? Leslie N. Masonson, an active ETF trader, is president of Cash Management Resources, a financial consulting firm that focuses on ETF strategies. He is the author of Buy—Don’t Hold: Investing With ETFs Using Relative Strength To Increase Returns With Less Risk; and All About Market Timing, as well as Day Trading On The Edge. His website is www.buydonthold.com, where he writes a weekly blog. To submit topics for future columns, reach him at lesmasonson@yahoo.com.
With the explosion of US ETFs numbering 1,716 at year-end 2016 valued at nearly $2.524 trillion according to the 2017 Investment Company Fact Book, it is no surprise that there has also been a proliferation of websites offering comprehensive ETF coverage. Here, I will briefly review three free sites that offer investors and traders an impressive array of analytical metrics and other useful arrayed data that will aid in the ETF selection process.
Previously in S&C, I reviewed two easy-to-use online resources that offer different approaches to ETF momentum investing and strategy backtesting for active market players. Those were ETFscreen.com (June 2017 S&C) and ETFReplay.com (December 2011 S&C). The latter is strictly a subscription-based offering ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-44-45-56-all-inclusive-etf-websites-by-leslie-n-masonson-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-44-45-56-all-inclusive-etf-websites-by-leslie-n-masonson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-44-45-56-all-inclusive-etf-websites-by-leslie-n-masonson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354qaby3,d,"{""minimum-quantity"":""1"",""path"":""ch9s1"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:09 (46–47): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
STRUCTURAL CHANGES CAN IMPACT TECHNICAL PATTERNS
Market structure, procedures, and settlement processes have come a long way since the 1700s when couriers made the journey to consummate a transaction by horseback or by ship. The settlement adopted at that time for Amsterdam and London exchanges was 14 days. Obviously, the perils that came with the modes of transportation as well as the quantity of time involved put significant counter-party risk on the table ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-46-47-q-a-by-rob-friesen-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-46-47-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-46-47-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354bofo3,d,"{""minimum-quantity"":""1"",""path"":""ch9s1"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:09 (48): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Stocks & Commodities V. 35:09 (48): Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
Money Machine: The Surprisingly Simple Power Of Value Investing
The Wisdom Of Finance: Discovering Humanity In The World Of Risk And Return
The DIY Investor, second edition
Creating Strategic Value Through Financial Technology"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-48-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-48-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-48-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov355trti1,d,"{""minimum-quantity"":""1"",""path"":""ch9s1"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:09 (50–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Stocks & Commodities V. 35:09 (50–56): Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is John Ehlers’ article in this issue, “The Reverse EMA Indicator.” Here, we present the August 2017 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-50-56-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-50-56-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-50-56-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov356whym,d,"{""minimum-quantity"":""1"",""path"":""ch9s1"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:09 (60–62): Why Most Traders Fail (And Why You Won’t) by Stephen Burnich"",""caption-linebreaks"":""Why Most Traders Fail (And Why You Won’t) by Stephen Burnich
It’s often said that most traders fail or never get to the point of having consistent profits. But the chances of beating these odds may be more attainable than you think.
We’ve all heard that the majority of traders never become consistently successful. But I believe that most traders never really give themselves a chance to be winners. Most likely, they’ve started with a lottery mindset that goes something like this: “Trading seems like easy money … I’ll just throw a couple thousand dollars into my brokerage account and see what happens, ” or “If I can just find that one big winner, then I’ll be able to retire on the beach.” Too many people have been lured into trading by so-called gurus who make claims of massive profits and promise that you can too, and with very little effort ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-60-62-why-most-traders-fail-and-why-you-won-t-by-stephen-burnich-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-60-62-why-most-traders-fail-and-why-you-won-t-by-stephen-burnich-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-60-62-why-most-traders-fail-and-why-you-won-t-by-stephen-burnich-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35762da,d,"{""minimum-quantity"":""1"",""path"":""ch9s1"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:09 (7, 62): Daytrading Within Whole Numbers by Ken Calhoun"",""caption-linebreaks"":""Daytrading Within Whole Numbers by Ken Calhoun
Keeping your entry and exits based on simple concepts makes it easier to manage your trades. Here’s a strategy you can apply.
Deciding exactly where to enter and exit stock daytrades can be challenging. If you use whole numbers to help manage your entries and exits, you will likely find that it becomes a favorite trading strategy, once you learn the specific techniques explained in this month’s column.
Traders often get into trouble when they use subjective, overly complicated technical signals to trade that are inconsistent ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-7-62-daytrading-within-whole-numbers-by-ken-calhoun-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-7-62-daytrading-within-whole-numbers-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-7-62-daytrading-within-whole-numbers-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35812re1,d,"{""minimum-quantity"":""1"",""path"":""faarfr209"",""ysw-page-title"":""Stocks & Commodities V. 35:09 (8–10, 12): The Reverse EMA Indicator by John F. Ehlers"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-21818.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-8-10-12-the-reverse-ema-indicator-by-john-f-ehlers-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-8-10-12-the-reverse-ema-indicator-by-john-f-ehlers-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35812re,d,"{""minimum-quantity"":""1"",""path"":""ch9s1"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:09 (8–10, 12): The Reverse EMA Indicator by John F. Ehlers"",""caption-linebreaks"":""The Reverse EMA Indicator by John F. Ehlers
The exponential moving average is a popular indicator among technical analysts. But it has its shortcomings. Here’s a look at how the indicator can be used so it results in minimum lag and provides crisper trading signals.
The exponential moving average (EMA) is one of the cornerstones of technical analysis. It is easy to implement and has excellent smoothing qualities over a wide range of applications. The disadvantage of the EMA is that it has different group delay, or lag, across the spectrum of frequencies present in market data. This different lag causes a nonlinear relationship between frequency and phase, leading to waveform distortions. The moving average is computed from left to right across the chart, and some traders have tried to also perform the EMA from right to left, thereby canceling the nonlinear phase response and getting twice the smoothing in the process ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-8-10-12-the-reverse-ema-indicator-by-john-f-ehlers-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-8-10-12-the-reverse-ema-indicator-by-john-f-ehlers-31.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-09-8-10-12-the-reverse-ema-indicator-by-john-f-ehlers-32.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35137qa,d,"{""minimum-quantity"":""1"",""path"":""ch10o2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:10 (15, 37): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
HOW DO YOU FIND VALUE IN STOCKS?
Pursuing “value” makes sense. Identifying “value” makes sense. Being trapped by “value” doesn’t make any sense in that it poses the question: Why should something of real value be able to trap, bait, or ambush a trader or investor?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-15-37-q-a-by-rob-friesen-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-15-37-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-15-37-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov351goto,d,"{""minimum-quantity"":""1"",""path"":""ch10o2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:10 (16–20): Googling Tomorrow’s Close by Cari Bourette"",""caption-linebreaks"":""Googling Tomorrow’s Close by Cari Bourette
What’s the overall mood of the stock market today? Here’s an indicator that could answer that question for you. And it involves more than just “Googling” something.
You want to make a trade today, but you’d really like to know where the market is most likely to end up before you pull the trigger. One solution is to “Google it!” Okay, it’s a little more involved than that, but that’s the starting point ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-16-20-googling-tomorrow-s-close-by-cari-bourette-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-16-20-googling-tomorrow-s-close-by-cari-bourette-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-16-20-googling-tomorrow-s-close-by-cari-bourette-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35225fu,d,"{""minimum-quantity"":""1"",""path"":""ch10o2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:10 (21, 25): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
STOP ORDERS AND ELECTRONIC TRADING
Stop orders have morphed with the ad-vent of electronic trading. What should traders be aware of?
In my previous two columns, we discussed the death of the open outcry pits and the implications for commodity traders.Conveniently, this question ties in nicely ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-21-25-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-21-25-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-21-25-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov352feno,d,"{""minimum-quantity"":""1"",""path"":""ch10o2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:10 (22–25): Fear, Not Greed, Is Your Friend by Chris Evans, CFA"",""caption-linebreaks"":""Fear, Not Greed, Is Your Friend by Chris Evans, CFA
Most major financial news services deliver a steady diet of fear. Instead of running into a cave and hiding, you’re better off embracing fear. Here’s why.
There are only two things that give the stock market the energy to rally:
- Low(er) interest rates
\n- Fear
It’s easy to understand why lower rates spark rallies. They save the economy and boost the value of dividends and future earnings ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-22-25-fear-not-greed-is-your-friend-by-chris-evans-cfa-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-22-25-fear-not-greed-is-your-friend-by-chris-evans-cfa-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-22-25-fear-not-greed-is-your-friend-by-chris-evans-cfa-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov352wryo,d,"{""minimum-quantity"":""1"",""path"":""ch10o2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:10 (26–28): Wrapping Your Brain Around Weekly Options by Koos van der Merwe"",""caption-linebreaks"":""Wrapping Your Brain Around Weekly Options by Koos van der Merwe
Have you wanted to trade options but are hesitant to take the first step? Here’s how one trader took action and made it happen.
When it comes to trading options, I must admit that I was absolutely stupid. In 1985, I wrote and passed my options exam when I was an investment advisor in South Africa. I simply memorized the entire options book, wrote the exam, and passed, no problem, but I never traded a single options contract ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-26-28-wrapping-your-brain-around-weekly-options-by-koos-van-der-merwe-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-26-28-wrapping-your-brain-around-weekly-options-by-koos-van-der-merwe-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-26-28-wrapping-your-brain-around-weekly-options-by-koos-van-der-merwe-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov353eawa,d,"{""minimum-quantity"":""1"",""path"":""ch10o2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:10 (30–35): An Early Warning System, Part 3 by Mike Slattery"",""caption-linebreaks"":""An Early Warning System, Part 3 by Mike Slattery
In this final part of a three-part series, we’ll describe a swing trading system that provides traders with a simple, straightforward set of rules to help anticipate price trends based on significant volume increases.
If you sell me one share of stock and that transaction represents the entire number of trades for that equity for that trading day, then the total volume for that day would be one (1). This would represent little interest and lack of enthusiasm for this stock and its price. This price is unlikely to fluctuate (beyond this one trade’s price change)—it would be impossible to fluctuate, as price cannot change without volume sufficient to create an atmosphere where market dynamics can come into play, allowing for fluctuation of price ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-30-35-an-early-warning-system-part-3-by-mike-slattery-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-30-35-an-early-warning-system-part-3-by-mike-slattery-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-30-35-an-early-warning-system-part-3-by-mike-slattery-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov353bofo,d,"{""minimum-quantity"":""1"",""path"":""ch10o2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:10 (36): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
The Best Investment Writing: Selected Writing From Leading Investors And Authors
Money Machine: The Surprisingly Simple Power of Value Investing
Super Investors: Lessons From The Greatest Investors In History—From Jesse Livermore To Warren Buffett And Beyond
The Property Chronicle"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-36-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-36-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-36-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov353inun,d,"{""minimum-quantity"":""1"",""path"":""ch10o2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:10 (38–42): Interview: A Unique Perspective From Jonathan Rose Of ActiveDayTrader.com by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: A Unique Perspective From Jonathan Rose Of ActiveDayTrader.com by Jayanthi Gopalakrishnan
Taking what he has learned from being a floor trader on the Chicago Mercantile Exchange and Chicago Board of Trade and turning it into actionable trading ideas has made Jonathan Rose the trader he is today. His ability to hunt for opportunities that could provide profitable moves is unique as is his ability to act as a mentor to traders.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Jonathan Rose via phone on August 10, 2017.
Jonathan, could you tell us a little bit about yourself and how you got interested in trading?
\nSure. After I graduated college in ’97, I moved out to Chicago. I’ve always been good at numbers and knew I wanted to trade. So, it was either go into New York or Chicago. I got a good job in Chicago, trading on the floor of the Mercantile Exchange from ’97 to ’03. I always figured I’d go back to New Jersey eventually, but I just ended up having good job situations in Chicago and stayed out here, met my wife, had a few kids, and now I’m not going back ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-38-42-interview-a-unique-perspective-from-jonathan-rose-of-activedaytrader-com-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-38-42-interview-a-unique-perspective-from-jonathan-rose-of-activedaytrader-com-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-38-42-interview-a-unique-perspective-from-jonathan-rose-of-activedaytrader-com-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354prac,d,"{""minimum-quantity"":""1"",""path"":""ch10o2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:10 (44–47): Price Action Analysis Using Candlesticks by Solomon Chuama"",""caption-linebreaks"":""Price Action Analysis Using Candlesticks by Solomon Chuama
Yes, it is possible to analyze price charts without using any indicators. Here’s the raw deal.
Open up a candlestick chart of any stock with no indicators and analyze the price action on that chart for a certain period of time. This is known as price analysis using naked charts. You’re using natural or “raw” price movement of the market to analyze and make all your trading decisions. You can use this raw price action analysis to trade any financial market, whether it is forex, futures, or equities. The market oscillation “footprints” that are left behind give you a clue to the market’s direction ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-44-47-price-action-analysis-using-candlesticks-by-solomon-chuama-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-44-47-price-action-analysis-using-candlesticks-by-solomon-chuama-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-44-47-price-action-analysis-using-candlesticks-by-solomon-chuama-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354exyo3,d,"{""minimum-quantity"":""1"",""path"":""ch10o2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:10 (48–49): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
REPAIRING LOSING POSITIONS
How do I fix a losing trade?
Everyone hates losing trades. No matter what kind of trader you are; how well your rules for trading are; how low of a cost your strategy is; and no matter how well you plan, execute, and manage a trade, it’s going to happen. The good news is that there are some repair strategies you can incorporate ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-48-49-explore-your-options-by-tom-gentile-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-48-49-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-48-49-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov355trti2,d,"{""minimum-quantity"":""1"",""path"":""ch10o2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:10 (50–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Jerry D’Ambrosio and Barbara Star’s article in this issue, “A Candlestick Strategy With Soldiers And Crows.” Here, we present the October 2017 Traders’ Tips code with possible implementations in various software.
\nThe code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-50-56-traders-tips-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-50-56-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-50-56-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov356prsq,d,"{""minimum-quantity"":""1"",""path"":""ch10o2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:10 (60–62): Price Squares & Time-Price Charts by Mak Sangha"",""caption-linebreaks"":""Price Squares & Time-Price Charts by Mak Sangha
Can you tell a story about the markets using circles and squares? Here’s a look at how Gann angles work in the present day world.
Gann said that the nine digits and circle were the basis of his calculations. When you divide the circle of 360 degrees by the first nine digits, you get these harmonics without repeating a harmonic as shown in the table in Figure 1 ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-60-62-price-squares-time-price-charts-by-mak-sangha-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-60-62-price-squares-time-price-charts-by-mak-sangha-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-60-62-price-squares-time-price-charts-by-mak-sangha-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35737sw,d,"{""minimum-quantity"":""1"",""path"":""ch10o2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:10 (7, 37): Swing Trading Four-Day Breakouts by Ken Calhoun"",""caption-linebreaks"":""Swing Trading Four-Day Breakouts by Ken Calhoun
When trading breakouts, one challenge is to find charts that will continue to move in your favor. Here’s one pat-tern that could help you identify those strong moves.
Your biggest challenge in swing trading breakouts will be to find charts that continue up strongly after you enter your trade. A favorite strategy used by experienced traders is to look at the ratio of green to red candles in recent days’ trading for clues of the underlying technical trading strength ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-7-37-swing-trading-four-day-breakouts-by-ken-calhoun-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-7-37-swing-trading-four-day-breakouts-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-7-37-swing-trading-four-day-breakouts-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov358cast,d,"{""minimum-quantity"":""1"",""path"":""ch10o2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:10 (8–14): A Candlestick Strategy With Soldiers And Crows by Jerry D’Ambrosio and Barbara Star, PhD"",""caption-linebreaks"":""A Candlestick Strategy With Soldiers And Crows by Jerry D’Ambrosio and Barbara Star, PhD
Traders want to get in earlier and have more frequent trading opportunities. Here are two patterns that can point you in that direction.
Among the more well-known candlestick reversal patterns are soldiers and crows. These occur in a three-candle pattern such as three white soldiers or three black crows. Recently, on the website Candlesticker.com, we learned of two other candle reversal patterns—a bullish one white soldier and a bearish one black crow—that require fewer candles. But what really caught our attention were the back-testing results provided on the website ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-8-14-a-candlestick-strategy-with-soldiers-and-crows-by-jerry-d-ambrosio-and-barbara-star-phd-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-8-14-a-candlestick-strategy-with-soldiers-and-crows-by-jerry-d-ambrosio-and-barbara-star-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-10-8-14-a-candlestick-strategy-with-soldiers-and-crows-by-jerry-d-ambrosio-and-barbara-star-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov351trte,d,"{""minimum-quantity"":""1"",""path"":""ch11n2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:11 (10–16): Trading The Tech Emini With The Leavitt Convolution by Jay A. Leavitt, PhD"",""caption-linebreaks"":""Trading The Tech Emini With The Leavitt Convolution by Jay A. Leavitt, PhD
Here’s a trading strategy applied to the emini Nasdaq futures that uses analytical tools based on linear regression rather than traditional ones associated with moving averages. The new indicator presented here has some unusual properties. Read on to find out what they are.
In this article, I’ll explore trading the emini Nasdaq futures contract (^NQ) on a 30-minute chart over a five-year period with new analytical tools based on linear regression rather than traditional ones associated with moving averages. I’ll present a new indicator that supersedes crossovers along with several unusual stops. The strategy has a peculiar property—higher investments have greater rates of return, while the profit factor remains essentially unchanged ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-10-16-trading-the-tech-emini-with-the-leavitt-convolution-by-jay-a-leavitt-phd-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-10-16-trading-the-tech-emini-with-the-leavitt-convolution-by-jay-a-leavitt-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-10-16-trading-the-tech-emini-with-the-leavitt-convolution-by-jay-a-leavitt-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35145es,d,"{""minimum-quantity"":""1"",""path"":""ch11n2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:11 (18–21, 45): Estimating The Fractal Dimension Of Stock Prices by Mike B. Siroky, MD"",""caption-linebreaks"":""Estimating The Fractal Dimension Of Stock Prices by Mike B. Siroky, MD
Are markets completely random and unpredictable, or are they partially predictable? Here, we explore how the fractal dimension (or the related Hurst exponent) of a stock or index price series can help answer this question.
In A Random Walk Down Wall Street, Burton Malkiel maintains that stock prices are random and therefore cannot be predicted, especially not by technical analysis. On the other hand, MIT professor Andrew Lo maintains that at times, stock prices have a discernible trend and are partially predictable. Which hypothesis is correct? Can the fractal dimension (or related Hurst exponent) of a stock or index price series help answer this question ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-18-21-45-estimating-the-fractal-dimension-of-stock-prices-by-mike-b-siroky-md-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-18-21-45-estimating-the-fractal-dimension-of-stock-prices-by-mike-b-siroky-md-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-18-21-45-estimating-the-fractal-dimension-of-stock-prices-by-mike-b-siroky-md-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35226li,d,"{""minimum-quantity"":""1"",""path"":""ch11n2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:11 (22–24, 26): Life Cycle Model Of Crowd Behavior by Henry O. Pruden, PhD"",""caption-linebreaks"":""Life Cycle Model Of Crowd Behavior by Henry O. Pruden, PhD
Editor’s note: On occasion of the recent passing of Henry “Hank” Pruden, who was a longtime industry associate, a dedicated teacher of technical analysis, and a past contributor to this magazine, we are presenting an article from our archives that he had written for our January 1999 issue on a timeless topic in behavioral finance—crowd behavior. Behavioral finance adherents believe that markets reflect the thoughts, emotions, and actions of real people as opposed to the idealized economic investor that underlies the efficient market hypothesis. Here, the application of technical analysis within the framework of behavioral finance is considered.
For a large part of the past 30 years, the discipline of finance has been under the aegis of the efficient market hypothesis. But in recent years, enough anomalies have piled up, cracking its dominance of the field. As a consequence, the arrival of new thinking to explain market behavior has warranted attention, and its name is behavioral finance ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-22-24-26-life-cycle-model-of-crowd-behavior-by-henry-o-pruden-phd-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-22-24-26-life-cycle-model-of-crowd-behavior-by-henry-o-pruden-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-22-24-26-life-cycle-model-of-crowd-behavior-by-henry-o-pruden-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35245qa,d,"{""minimum-quantity"":""1"",""path"":""ch11n2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:11 (27, 45): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
SWARMS! IT’S THE LITTLE THINGS ...
Two things have been “buzzing” around in my head recently. The first is about little things and the second is about swarms of these little things. Maybe it’s the terrifying images of floating islands of fire ants, or the pesky wasps after a hot summer, or maybe it’s constant dribble of all those noisy little sound bites from media venues that assault my ears ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-27-45-q-a-by-rob-friesen-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-27-45-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-27-45-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov352elwa,d,"{""minimum-quantity"":""1"",""path"":""ch11n2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:11 (28–32): Elliott Waves: How High Is High? Part 1 by Mircea Dologa, MD, CTA"",""caption-linebreaks"":""Elliott Waves: How High Is High? Part 1 by Mircea Dologa, MD, CTA
One of the keys to profitable trading is identifying the lowest low and the highest high. But how low is low and how high is high? That’s a tough question to answer. The best you can do is to apply proper tools and money management practices.
Most of us know that the best and less difficult profits to obtain are those from trading impulsive waves; the ones that may belong to an impulsive pattern or even to a corrective one. If you know something about Elliott waves, you’ll have W3-wave and C-wave, and to a lesser degree, W1-, W5- and A-waves in mind ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-28-32-elliott-waves-how-high-is-high-part-1-by-mircea-dologa-md-cta-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-28-32-elliott-waves-how-high-is-high-part-1-by-mircea-dologa-md-cta-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-28-32-elliott-waves-how-high-is-high-part-1-by-mircea-dologa-md-cta-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35339fu,d,"{""minimum-quantity"":""1"",""path"":""ch11n2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:11 (33, 39): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
WHERE HAS VOLATILITY GONE, AND HOW SHOULD I ADJUST MY TRADING?
Whether you are trading stock indexes, currencies, Treasuries, or commodities, you’ve likely noticed market volatility has declined sharply in recent years, particularly in recent months. I fear the lack of market volatility has lulled traders into a complacency that will act as fuel to the fire when market volatility finally returns ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-33-39-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-33-39-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-33-39-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov353alla,d,"{""minimum-quantity"":""1"",""path"":""ch11n2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:11 (34–39): All About Trading Commodities With Carley Garner by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: All About Trading Commodities With Carley Garner by Jayanthi Gopalakrishnan
Commodities market analyst, author, and passionate trader, Carley Garner has done her part in helping commodity traders understand the notorious nature of the futures markets. She is the author of Higher Probability Commodity Trading and A Trader’s First Book On Commodities. She’s one of the faces behind DeCarley Trading, a boutique futures and options broker based in Las Vegas, NV. She’s a regular contributor to this magazine through our Futures For You column, and to CNBC’s Mad Money TV show hosted by Jim Cramer. Over the years, Garner has come across retail traders from all different backgrounds, experience levels, and with different levels of risk capital. Working with them has given her a realistic and practical insight as to what drives them to success and failure.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Carley Garner on September 14, 2017 about identifying trades that have a higher probability of success and the benefits of trading options on futures.
How did you get interested in the financial markets and trading?
\nIt didn’t happen right away. When you’re 18 you think you know what you want to do with your life. You pick a major and a college and go with it. But really, at that age, you honestly have no idea about yourself or life in general. When I was 18, I thought I wanted to be a physical therapist. So I started taking pre-med courses in college. But about three years into it, I decided that it wasn’t for me, since I didn’t like the contact with other people. It took me a long time to figure out that’s what that job’s all about. So from there I switched my major to accounting, and then decided I didn’t like that either ...
"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-34-39-all-about-trading-commodities-with-carley-garner-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-34-39-all-about-trading-commodities-with-carley-garner-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-34-39-all-about-trading-commodities-with-carley-garner-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354coet,d,"{""minimum-quantity"":""1"",""path"":""ch11n2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:11 (40–44): Comparing ETF Sector Families by Leslie N. Masonson"",""caption-linebreaks"":""Comparing ETF Sector Families by Leslie N. Masonson
Are you interested in learning more about using exchange traded funds (ETFs) in your trading? Leslie N. Masonson, an active ETF trader, is president of Cash Management Resources, a financial consulting firm that focuses on ETF strategies. He is the author of Buy—Don’t Hold: Investing With ETFs Using Relative Strength To Increase Returns With Less Risk; and All About Market Timing, as well as Day Trading On The Edge. His website is www.buydonthold.com, where he writes a weekly blog. To submit topics for future columns, reach him at lesmasonson@yahoo.com.
Sector investing is not a new Wall Street phenomenon. A handful of mutual funds have offered different sectors since the 1970s. But the awareness level became much more widespread when Fidelity Investments announced its first group of 22 Select Sector mutual funds in December 1981. Over the years, additional sectors (or more refined subsectors) were added ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-40-44-comparing-etf-sector-families-by-leslie-n-masonson-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-40-44-comparing-etf-sector-families-by-leslie-n-masonson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-40-44-comparing-etf-sector-families-by-leslie-n-masonson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354exyo4,d,"{""minimum-quantity"":""1"",""path"":""ch11n2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:11 (46–47): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
HOW I TRADE NOVEMBER TO MAY, OPTIONS STYLE
For each trade, an options trader has to decide whether to focus on high returns, or a high probability of being right. And that means learning to spot opportunities if you are a directional trader, or learning how to spot abnormal options prices that create favorable trades in terms of being statistically right. Whether you are a directional or nondirectional options trader, before you put your options trade on, you need to have an opinion—whether rules-based or not—of what the underlying stock is (or isn’t) going to do over a certain amount of time ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-46-47-explore-your-options-by-tom-gentile-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-46-47-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-46-47-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35462sw,d,"{""minimum-quantity"":""1"",""path"":""ch11n2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:11 (48, 62): Swing Trading 100SMA Pivots by Ken Calhoun"",""caption-linebreaks"":""Swing Trading 100SMA Pivots by Ken Calhoun
Learn to combine a classic moving average crossover technique with a specific daily candle signal to confirm a pivot entry.
Trading pivot entries correctly often requires you to look for a combination of two or more technical entry signals. Traders often take stop-losses by trying to enter pivots too early, before significant buying strength emerges. Because pivots are inherently riskier than simple breakouts, you will find that combining two or more technical signals can create better pivot entries ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-48-62-swing-trading-100sma-pivots-by-ken-calhoun-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-48-62-swing-trading-100sma-pivots-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-48-62-swing-trading-100sma-pivots-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov355trti3,d,"{""minimum-quantity"":""1"",""path"":""ch11n2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:11 (50–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Ken Calhoun’’s article from the October 2017 issue, “Swing Trading Four-Day Breakouts.” Here, we present the November 2017 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-50-56-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-50-56-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-50-56-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35610re,d,"{""minimum-quantity"":""1"",""path"":""ch11n2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:11 (60–62): 10 Reasons Traders Lose And What To Do About It by Solomon Chuama"",""caption-linebreaks"":""10 Reasons Traders Lose And What To Do About It by Solomon Chuama
Awareness—it’s your best friend. When you start trading, don’t get discouraged with your losing trades. Be aware of why those losses occurred. You’ll find that the losses were often caused by your emotions. Relate your trading to the 10 reasons provided here and figure out how you can better manage your trades.
It's not unusual for new traders to experience losses when they start their trading journey. I went hrough a rough time during my youthful trading days. In fact, my wife discouraged me from trading because the funds meant for family use were lost through forex trading. You don’t want to continue having losses ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-60-62-10-reasons-traders-lose-and-what-to-do-about-it-by-solomon-chuama-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-60-62-10-reasons-traders-lose-and-what-to-do-about-it-by-solomon-chuama-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-60-62-10-reasons-traders-lose-and-what-to-do-about-it-by-solomon-chuama-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov358leto,d,"{""minimum-quantity"":""1"",""path"":""ch11n2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:11 (8–9): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
LEAVITT CONVOLUTION
Editor,
\nI read with interest Jay Leavitt’s article in the August 2017 issue of S&C, “Riding The Waves With The Leavitt Convolution.” I think I see overall what he is doing, but I am hoping he can help me better understand a few parts of the article’s discussion. My questions are as follows ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-8-9-letters-to-s-c-by-technical-analysis-inc-27.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-8-9-letters-to-s-c-by-technical-analysis-inc-31.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-11-8-9-letters-to-s-c-by-technical-analysis-inc-32.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35141we,d,"{""minimum-quantity"":""1"",""path"":""ch12d2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:12 (10–15, 41): Weekly & Daily MACD by Vitali Apirine"",""caption-linebreaks"":""Weekly & Daily MACD by Vitali Apirine
The moving average convergence/divergence oscil-lator (MACD), developed by Gerald Appel, is one of the more popular technical analysis indicators. The MACD is typically used on a single timeframe, but what if we looked at two timeframes on one chart?
The indicator I’ll discuss in this article, the weekly & daily MACD (W&D MACD), combines (as you may have guessed) weekly and daily MACD oscillators on a daily chart. Each oscillator turns two moving averages into a momentum oscillator by subtracting the longer moving average from the shorter moving average. Traders can look for relative daily MACD line crossovers, weekly and daily centerline crossovers, and divergences to generate trading signals. Because the W&D MACD is not bounded, it is not particularly useful for identifying overbought and oversold levels. Here’s how you calculate it ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-10-15-41-weekly-daily-macd-by-vitali-apirine-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-10-15-41-weekly-daily-macd-by-vitali-apirine-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-10-15-41-weekly-daily-macd-by-vitali-apirine-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov351sude,d,"{""minimum-quantity"":""1"",""path"":""ch12d2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:12 (16–21): Supply & Demand Trading by Reza Javaheri"",""caption-linebreaks"":""Supply & Demand Trading by Reza Javaheri
What is it? How effective is it? How can you apply it to your trading? Let’s find out.
Any school of thought or set of guidelines—from a marketing strategy, to a test-taking strategy, and everything in between—will always have a base set of assumptions underlying it, upon which the theory can be built. Any technical analysis strategy will require you, as a technical trader, to assume certain things before the actual meat and potatoes of the strategy is laid out; this is constant. However, what isn’t constant is the credibility of these assumptions. The good news is, as a supply & demand trader, you recognize and operate under only one assumption, and that assumption happens to be the basic principle that underlies any market ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-16-21-supply-demand-trading-by-reza-javaheri-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-16-21-supply-demand-trading-by-reza-javaheri-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-16-21-supply-demand-trading-by-reza-javaheri-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov352fufo2,d,"{""minimum-quantity"":""1"",""path"":""ch12d2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:12 (22): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
SOME CHALLENGES OF SPECULATING ON VOLATILITY
\nWhy do VIX futures trade at higher prices than the CBOE index?
\nPerhaps the most efficient means of speculating on the stock market volatility index, known as the VIX, is via the futures markets. After all, ETFs that have been created to offer traders a place to wager on higher or lower volatility such as the VXX, VIXY, and EVIX are funds that have been created with the intention of mimicking VIX futures but with generally less leverage ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-22-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-22-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-22-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov352elwa1,d,"{""minimum-quantity"":""1"",""path"":""ch12d2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:12 (24–29): Elliott Waves: How High Is High? Part 2 by Mircea Dologa, MD, CTA"",""caption-linebreaks"":""Elliott Waves: How High Is High? Part 2 by Mircea Dologa, MD, CTA
In this second of two parts, we look at some trading techniques that could result in higher-probability trades with lower risk than those suggested by some of the classic trading techniques.
I will describe a series of techniques I consider state-of-the-art technical tools that are practiced every day by some professional traders. The build-up of the two-dimensional chart space (the Cartesian space) is one of the tools that can assist the trader in a precise and efficient way. In this article, I’ll explain how.
In part 1 last month, you saw how the best and least-difficult profits can be achieved by trading the impulsive waves, which may belong to an impulsive pattern or a corrective one. When we think of impulsive or corrective waves, we think of the W3-wave and C-wave, and to a lesser degree, W1-, W5-, and A-waves. Experienced traders are capable of trading corrective waves because the techniques are more difficult to understand and the behavior of these waves is more dangerous, implicating more risk and more cumbersome money management ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-24-29-elliott-waves-how-high-is-high-part-2-by-mircea-dologa-md-cta-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-24-29-elliott-waves-how-high-is-high-part-2-by-mircea-dologa-md-cta-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-24-29-elliott-waves-how-high-is-high-part-2-by-mircea-dologa-md-cta-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov353haou,d,"{""minimum-quantity"":""1"",""path"":""ch12d2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:12 (30–32): Hanging Out With The Junkies by Hector Landazabal"",""caption-linebreaks"":""Hanging Out With The Junkies by Hector Landazabal
Assuming that some bond and equities markets are highly correlated and that bonds affect the equities markets, could we extract information from junk bond markets in such a way as to manage our exposure and protect and increase our trading capital in volatile times? Here is one technique that can be used to accurately predict and identify impending market corrections.
Bonds constitute a big chunk of the credit markets, with an outstanding US bond debt of more than 30 trillion dollars. Bonds come in many flavors with different credit risk profiles (treasuries, foreign, corporate, municipal, TIPS). As most bonds have predictable income, generally dependent on current interest rates, they are considered a conservative, low-risk investment. However, corporate bonds (issued by companies) expose the investor to additional variables in-cluding economic, liquidity, taxation, and inflationary risks. Investors with an appetite for higher yields can, and do, invest in these vehicles ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-30-32-hanging-out-with-the-junkies-by-hector-landazabal-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-30-32-hanging-out-with-the-junkies-by-hector-landazabal-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-30-32-hanging-out-with-the-junkies-by-hector-landazabal-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35345in,d,"{""minimum-quantity"":""1"",""path"":""ch12d2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:12 (34–38, 45): Interview: Jeremy Du Plessis by Jayanthi Gopalarishnan"",""caption-linebreaks"":""Interview: Jeremy Du Plessis by Jayanthi Gopalarishnan
Jeremy du Plessis, an expert in point & figure charting, has written two books on the subject: The Definitive Guide To Point And Figure and 21st Century Point And Figure. Du Plessis is founder of Indexia, a company that provides consulting and training in point & figure charting.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with du Plessis via Skype on October 17, 2017 to talk about how point & figure charts can be used by traders to make trading decisions.
So you were an automotive engineer, then an economist. What drew you to technical analysis?
\nI was a product development engineer at Toyota, so I was used to graphs and charts. I then decided to go back to university and get a degree in business economics. One of my lecturers was interested in technical analysis and showed me a few charts. And that’s what really got me hooked ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-34-38-45-interview-jeremy-du-plessis-by-jayanthi-gopalarishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-34-38-45-interview-jeremy-du-plessis-by-jayanthi-gopalarishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-34-38-45-interview-jeremy-du-plessis-by-jayanthi-gopalarishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35343qu,d,"{""minimum-quantity"":""1"",""path"":""ch12d2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:12 (39–40, 43): Quick-Scan: Ichimoku Master by Barbara Star, PhD"",""caption-linebreaks"":""Quick-Scan: Ichimoku Master by Barbara Star, PhD
ICHIMOKU MASTER
\nMetaStock
\n4548 Atherton Drive,Suite 200
\nSalt Lake City, UT 84123
\n800 882-3040
\nwww.metastock.com/saleschat
\nProduct: Ichimoku trading method add-on for MetaStock
\nRequirements: MetaStock version 15 or higher; Windows XP or higher
\nPrice: $399 one-time fee with 30-day money-back guarantee
Often referred to as the ichimoku cloud, ichimoku kinko hyo, a well-known trading method in Japan, is gaining considerable popularity among Western traders. Roughly translated, the name means equilibrium at one look or at a glance. It is a trend-following system that offers traders rapid information about price direction, support/resistance, and momentum. The MetaStock add-on named Ichimoku Master provides both analysis and signals based on the ichimoku kinko hyo trading system ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-39-40-43-quick-scan-ichimoku-master-by-barbara-star-phd-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-39-40-43-quick-scan-ichimoku-master-by-barbara-star-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-39-40-43-quick-scan-ichimoku-master-by-barbara-star-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354prpr,d,"{""minimum-quantity"":""1"",""path"":""ch12d2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:12 (42–43): Price Projection Swing Trades by Ken Calhoun"",""caption-linebreaks"":""Price Projection Swing Trades by Ken Calhoun
Finding technical breakout entries using the patterns we covered in earlier columns can be helpful. It is equally important, if not more so, to know your exits by identifying likely technical targets when you are managing your trades. Using box trading ranges can help you identify where to exit winning trades or when to tighten trailing stops.
This month’s strategy will provide you with tips for how to exit swing trades by using box trading ranges to price-project your exit targets. Understanding where to lock in profits for winning trades can help you avoid the common error of waiting too long to exit after a reversal occurs ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-42-43-price-projection-swing-trades-by-ken-calhoun-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-42-43-price-projection-swing-trades-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-42-43-price-projection-swing-trades-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354exyo5,d,"{""minimum-quantity"":""1"",""path"":""ch12d2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:12 (44–45): Explore Your Options by Tom Gentile"",""caption-linebreaks"":""Explore Your Options by Tom Gentile
IS SANTA CLAUS COMING TO TOWN?
\nAnother holiday season is now upon us. With global issues surrounding natural calamities, geopolitical tensions, and violent tragedies that took place during the year, can the markets look forward to a Santa Claus rally?
When it comes to stocks moving higher, not all is green. There is a part of the market that the Grinch will visit, and that is retailers ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-44-45-explore-your-options-by-tom-gentile-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-44-45-explore-your-options-by-tom-gentile-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-44-45-explore-your-options-by-tom-gentile-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov354qaby4,d,"{""minimum-quantity"":""1"",""path"":""ch12d2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:12 (48–49): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
A LOOK AT THE CURRENT MARKET — HOW TO APPROACH IT?
\nAs the end of another year fast approaches, I’ll wind up this year’s columns by answering the following set of questions from readers.
Since I have some knowledge of economics, markets, and the drivers of both, perhaps I will provoke some thought on these subjects rather than being able to answer all conclusively ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-48-49-q-a-by-rob-friesen-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-48-49-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-48-49-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov355trti4,d,"{""minimum-quantity"":""1"",""path"":""ch12d2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:12 (50–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Vitali Apirine’s article in this issue, “Weekly & Daily MACD.” Here, we present the December 2017 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-50-56-traders-tips-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-50-56-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-50-56-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov356trre,d,"{""minimum-quantity"":""1"",""path"":""ch12d2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:12 (60–61): The Trading Resolution by Santhosh Kumar V."",""caption-linebreaks"":""The Trading Resolution by Santhosh Kumar V.
Trading involves more than just using a trading system. There are several characteristics and traits traders need to develop to help them become better traders. Here’s a look at what to consider.
How can I set up a perfect trading system? This is a question many traders ask themselves. When a trader looks at a trading platform and sees prices moving, they have, at least once, wondered what the institutional trader sees above and beyond the price movements. The general thought process is that if you have had positive trading experiences in the past, there will be opportunities to make positive returns in the future. But the opportunities available in the future are set by the resolutions we make today ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-60-61-the-trading-resolution-by-santhosh-kumar-v-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-60-61-the-trading-resolution-by-santhosh-kumar-v-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-60-61-the-trading-resolution-by-santhosh-kumar-v-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35762le,d,"{""minimum-quantity"":""1"",""path"":""ch12d2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:12 (7, 62): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
“NO NINES” RULE
Editor,
\nI read Ken Calhoun’s article in the August 2017 issue, “Avoiding False Breakouts: No 9s” and thought I’d test the idea. The theory is to avoid trades with a nine to the left of the decimal and buy in later, at 50 cents above the next whole dollar. For example, if the buy signal happened at $29.00, you’d wait until price climbed to $30.50 before buying. Calhoun also specified in the article that trades should be in the $20 to $70 range and have a $2 stop ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-7-62-letters-to-s-c-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-7-62-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-7-62-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35846fi1,d,"{""minimum-quantity"":""1"",""path"":""faarfr209"",""ysw-page-title"":""Stocks & Commodities V. 35:12 (8–9, 46): Finally! A Buy & Hold Sell Signal by Thomas Bulkowski"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-21819.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-8-9-46-finally-a-buy-hold-sell-signal-by-thomas-bulkowski-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-8-9-46-finally-a-buy-hold-sell-signal-by-thomas-bulkowski-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35846fi,d,"{""minimum-quantity"":""1"",""path"":""ch12d2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:12 (8–9, 46): Finally! A Buy & Hold Sell Signal by Thomas Bulkowski"",""caption-linebreaks"":""Finally! A Buy & Hold Sell Signal by Thomas Bulkowski
When should you sell a long-term holding? Here’s a trading setup that answers that question.
If you own a diversified portfolio of stocks like I do, then some of the stocks you will trade frequently and some of them you may hold for years. When should you sell a stock that you have been holding for the long term (buy & hold)? Here is a sell signal to help you decide ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-8-9-46-finally-a-buy-hold-sell-signal-by-thomas-bulkowski-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-8-9-46-finally-a-buy-hold-sell-signal-by-thomas-bulkowski-31.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-12-8-9-46-finally-a-buy-hold-sell-signal-by-thomas-bulkowski-32.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov351haan,d,"{""minimum-quantity"":""1"",""path"":""ch13bis205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:13 (12–15): Harmony And PATH by Patrick Hughes"",""caption-linebreaks"":""Harmony And PATH by Patrick Hughes
Traders try to learn technical analysis and fall short of working with it in a detailed manner. They look for perfection instead of how perfection is created or how it exists. Here’s a technique that could give you deeper insight into the relationship between time and price.
There are a lot of important concepts that are often overlooked by most people. In this article, I will touch on some of those concepts and introduce you to a new system I created called perfect adjustment through harmony or PATH. You could think of this adjustment or PATH system as an offset or slippage, but really it is the adjustment necessary to put things into perfection ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-13-12-15-harmony-and-path-by-patrick-hughes-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-13-12-15-harmony-and-path-by-patrick-hughes-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-13-12-15-harmony-and-path-by-patrick-hughes-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35144me,d,"{""minimum-quantity"":""1"",""path"":""ch13bis205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:13 (16–17, 44): Measuring Stock Performance Against The Market by Gideon Vigderhous, PhD"",""caption-linebreaks"":""Measuring Stock Performance Against The Market by Gideon Vigderhous, PhD
You know what correlation is, but what about partial correlation? Here we introduce you to a statistical measure that takes the pulse of stock performance relative to the market.
A common practice in measuring stock performance is to compare it to a benchmark such as the S&P 500. The measure basically compares the percent change of a stock in a given period with the percent change of the market. By comparing the two, the measure derives a conclusion on how the stock performed relative to the market ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-13-16-17-44-measuring-stock-performance-against-the-market-by-gideon-vigderhous-phd-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-13-16-17-44-measuring-stock-performance-against-the-market-by-gideon-vigderhous-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-13-16-17-44-measuring-stock-performance-against-the-market-by-gideon-vigderhous-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov351fxst,d,"{""minimum-quantity"":""1"",""path"":""ch13bis205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:13 (18–20): An FX Strategy For Catching Falling Knives by Azeez Mustapha"",""caption-linebreaks"":""An FX Strategy For Catching Falling Knives by Azeez Mustapha
When there’s a considerable decline in a relatively short period of time, can that become a trading opportunity? It’s all about timing, and you can’t rush it. Here’s how to go about it.
The markets have a way of giving us surprise moves. That’s what they are known for. When something unusual or unanticipated happens, especially if it goes against what the public is expecting, price moves strongly. That’s when markets become volatile and can create havoc on your trading results ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-13-18-20-an-fx-strategy-for-catching-falling-knives-by-azeez-mustapha-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-13-18-20-an-fx-strategy-for-catching-falling-knives-by-azeez-mustapha-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-13-18-20-an-fx-strategy-for-catching-falling-knives-by-azeez-mustapha-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov352mach,d,"{""minimum-quantity"":""1"",""path"":""ch13bis205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:13 (21–24): Mastering Chart Analysis With Greg Schnell by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Mastering Chart Analysis With Greg Schnell by Jayanthi Gopalakrishnan
Greg Schnell, CMT, MFTA, is a senior technical analyst at StockCharts.com specializing in intermarket and commodities analysis. Based in Calgary, he is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is also an active member of the Market Technicians Association (MTA) and the International Federation of Technical Analysts (IFTA). Schnell was awarded technical blogger of the year as well as technical/trading educator of the year in 2016 by the CSTA. Schnell joined StockCharts.com in 2012. He currently contributes market analysis commentary to the StockCharts.com blogs The Canadian Technician, Commodities Countdown, ChartWatchers, and Don’t Ignore This Chart. He hosts multiple webinars every week. His primary technical interest is in the global intermarket relationships between the equities, bonds, currencies and commodities markets.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Greg Schnell on January 12, 2017 about how he learned to navigate the markets using technical analysis.
Greg, can tell us a little bit about yourself and how you got interested in technical analysis?
\nI studied geophysics and worked for Royal Dutch Shell, in my case Shell Canada, and did that for 10 years. I then branched out into a few different careers, but one of the big changes that happened along the way was my wife moved to Europe to work with Royal Dutch Shell, and I became a house-husband looking after the family ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-13-21-24-mastering-chart-analysis-with-greg-schnell-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-13-21-24-mastering-chart-analysis-with-greg-schnell-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-13-21-24-mastering-chart-analysis-with-greg-schnell-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov35220re,d,"{""minimum-quantity"":""1"",""path"":""ch13bis205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:13 (26–34): 2017 Readers’ Choice Awards by Technical Analysis, Inc."",""caption-linebreaks"":""Readers’ Choice Awards by Technical Analysis, Inc.
We are pleased to present the Technical Analysis of STOCKS & COMMODITIES magazine 2017 Readers’ Choice Awards (RCA). Each year, we put before our readers a ballot of products and services related to technical analysis and trading. The following pages present the products and services you and your peers chose this year as your favorites.
The Readers’ Choice Awards begins each year with a list of products gathered by the editors of STOCKS & COMMODITIES, with space for write-in votes (given that our list doesn’t claim to be complete). Then, to find out what our readers find to be the most useful for their trading, we ask them to choose their favorite products or the ones they find most useful from various categories by going to our website, Traders.com, and filling out the survey there. After that, we compile the results, just in time for the Bonus Issue you hold in your hands.
Products are categorized by their primary purpose. Just because a service or product is not listed does not necessarily mean that the product does not have features germane to the category. In addition, some categories are divided by cost so that the comparisons can be made on a more level playing field.
The winners in the Readers’ Choice Awards are almost always the dominant players in their niche, and rightfully so. You may have special needs for your trading, however, so you should keep in mind those products that are not the big names in the category of your interest before you make your final decision. The RCA is designed to be an aid for you when you are deciding on which of the numerous products and services currently available to use for your trading and investing. With that in mind, we think you’ll find the Readers’ Choice a terrific guide to products and services that you’ll be interested in ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-13-26-34-2017-readers-choice-awards-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-13-26-34-2017-readers-choice-awards-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-13-26-34-2017-readers-choice-awards-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov353trel,d,"{""minimum-quantity"":""1"",""path"":""ch13bis205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:13 (36–42): Trading Elliott Waves Using A Top-Down Approach by Mircea Dologa, MD, CTA"",""caption-linebreaks"":""Trading Elliott Waves Using A Top-Down Approach by Mircea Dologa, MD, CTA
When applying Elliott waves to your charts, one of the challenges is to know which trend to use. Here is an approach that could help you do just that.
Most novice traders may not be aware of the importance of identifying the origin of a trend on the timeframe they are using. The top-down Elliott wave approach is one of the best strategic tools when practicing Elliott wave trading.
There are many advantages of using this top-down approach. The easiest to understand would be never trade against the trend. But which trend? Is it the ongoing trend on the operational timeframe, or is it the dominant trend, which is situated on a higher timeframe? Can you rely on upper timeframes like monthly, weekly, daily, and hourly to better understand the kinematics of the market flow on the 15-minute chart ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-13-36-42-trading-elliott-waves-using-a-top-down-approach-by-mircea-dologa-md-cta-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-13-36-42-trading-elliott-waves-using-a-top-down-approach-by-mircea-dologa-md-cta-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-13-36-42-trading-elliott-waves-using-a-top-down-approach-by-mircea-dologa-md-cta-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov358trop,d,"{""minimum-quantity"":""1"",""path"":""ch13bis205"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 35:13 (8–11): Trading The Open by Adam Ryan"",""caption-linebreaks"":""Trading The Open by Adam Ryan
The open of any trading day sets the tone for the rest of the trading day. Here’s how you can take advantage of volatility at the open and generate profits from it.
The open is the most important time of the day for a trader. It is when both institutional and large traders alike show their hand. The open sets the tone for the rest of the day and if you can understand the open, profits will come much easier. For novice traders, the added volatility at the open can be slightly intimidating, but in this article, I intend to show you that the added volatility can create more opportunity. You no longer have to wait an hour or more for the market to set up. If the opportunity presents itself, you can start trading well before the market sets up. I have also included three detailed setups that I use when trading the open ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-13-8-11-trading-the-open-by-adam-ryan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-13-8-11-trading-the-open-by-adam-ryan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-35-13-8-11-trading-the-open-by-adam-ryan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36149pr,d,"{""minimum-quantity"":""1"",""path"":""ch1j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:01 (14–18, 49): Profit-Taking And Resets Part 1: Trend-Following by Perry J. Kaufman"",""caption-linebreaks"":""Profit-Taking And Resets Part 1: Trend-Following by Perry J. Kaufman
In this first part of a two-part series, we look at long-term trends and different ways to take profits and reenter trades.
As traders, we all like taking profits. It puts money in our pocket and increases the number of profitable trades. It keeps us out of the market so there is less risk, and if we can avoid a price shock, even better. For money managers, it also shows activity. An investor doesn’t want to pay someone who appears to be doing nothing but sitting on whatever positions are in the portfolio. A modestly active portfolio must mean the advisor is doing his or her best ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-14-18-49-profit-taking-and-resets-part-1-trend-following-by-perry-j-kaufman-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-14-18-49-profit-taking-and-resets-part-1-trend-following-by-perry-j-kaufman-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-14-18-49-profit-taking-and-resets-part-1-trend-following-by-perry-j-kaufman-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36149pr1,d,"{""minimum-quantity"":""1"",""path"":""faarfr2010"",""ysw-page-title"":""Stocks & Commodities V. 36:01 (14–18, 49): Profit-Taking And Resets Part 1: Trend-Following by Perry J. Kaufman"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-21820.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-14-18-49-profit-taking-and-resets-part-1-trend-following-by-perry-j-kaufman-31.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-14-18-49-profit-taking-and-resets-part-1-trend-following-by-perry-j-kaufman-32.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov362ense,d,"{""minimum-quantity"":""1"",""path"":""ch1j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:01 (20–22): Energy Sector and S&P 500: A Look At Pairwise Correlation by Cassandra Wang"",""caption-linebreaks"":""Energy Sector and S&P 500: A Look At Pairwise Correlation by Cassandra Wang
Can you develop a trading strategy out of a correlation pattern between two assets? Here we analyze the movement of the S&P 500 index with its various sectors to find out if any correlation patterns stand out.
In my last article in the February 2017 issue of STOCKS & COMMODITIES, I looked at inter-asset correlation and how it can be used to predict the movement of the S&P 500. After receiving an overwhelming amount of comments from readers about the study, in particular its complex calculations, I began to think about pairwise correlations between the S&P 500 and each of its sectors ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-20-22-energy-sector-and-s-p-500-a-look-at-pairwise-correlation-by-cassandra-wang-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-20-22-energy-sector-and-s-p-500-a-look-at-pairwise-correlation-by-cassandra-wang-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-20-22-energy-sector-and-s-p-500-a-look-at-pairwise-correlation-by-cassandra-wang-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36246tw,d,"{""minimum-quantity"":""1"",""path"":""ch1j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:01 (24–25, 46): Two For The Price Of One by David Solomon"",""caption-linebreaks"":""Two For The Price Of One by David Solomon
Here’s how you can enhance a momentum indicator to show momentum and congestion.
Momentum indicators are probably the most favored in technical analysis. In this article, I’ll show a simple way to emphasize trends and identify congestion in the same plot on a chart.
I begin with any standard momentum indicator—a line drawn on the chart showing an average of some kind (such as simple moving average, exponential moving average, double, Hull, etc.). The moving average convergence/divergence (MACD) is probably one of the more widely used indicators ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-24-25-46-two-for-the-price-of-one-by-david-solomon-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-24-25-46-two-for-the-price-of-one-by-david-solomon-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-24-25-46-two-for-the-price-of-one-by-david-solomon-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36246me,d,"{""minimum-quantity"":""1"",""path"":""ch1j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:01 (26–29, 46): Measuring Risk With The Normalized Risk Index by Mike B. Siroky, MD"",""caption-linebreaks"":""Measuring Risk With The Normalized Risk Index by Mike B. Siroky, MD
Risk—there are many ways to measure it, but how effective are they? Here’s one measure that is versatile and suitable for just about any type of risk profile.
What is risk and how is it best measured? The term risk is generally applied to adverse outcomes only. No one talks about the risk of winning the state lottery, but it is common to hear about the risk of getting hit by lightning. In the financial arena, risk may mean the likelihood of bankruptcy, a dividend cut, or a decline in earnings. In modern portfolio theory, it may mean a high beta, or the likelihood of underperforming a market index or some target return. However, to most individual investors, the term risk means the likelihood of losing capital ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-26-29-46-measuring-risk-with-the-normalized-risk-index-by-mike-b-siroky-md-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-26-29-46-measuring-risk-with-the-normalized-risk-index-by-mike-b-siroky-md-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-26-29-46-measuring-risk-with-the-normalized-risk-index-by-mike-b-siroky-md-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov363dipo,d,"{""minimum-quantity"":""1"",""path"":""ch1j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:01 (30–33): Dip One Toe Into The Forex Pond by Solomon Chuama"",""caption-linebreaks"":""Dip One Toe Into The Forex Pond by Solomon Chuama
It’s one thing to learn the theory behind forex trading but another to apply it in the markets. Here’s a step-by-step approach.
Before you assume any of the steps mentioned in this article, you will have to ask yourself what type of trader you are. Are you a scalper, daytrader, swing trader, or position trader? Which style of trading matches your personality? Once you’ve established the type of trader you are, then you can begin your trading education. Each trader has a unique personality and psychological makeup. That’s why there are different names for different types of trading ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-30-33-dip-one-toe-into-the-forex-pond-by-solomon-chuama-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-30-33-dip-one-toe-into-the-forex-pond-by-solomon-chuama-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-30-33-dip-one-toe-into-the-forex-pond-by-solomon-chuama-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov363inma,d,"{""minimum-quantity"":""1"",""path"":""ch1j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:01 (34–39): Interview: Master The Markets With Gatis And Grayson Roze by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Master The Markets With Gatis And Grayson Roze by Jayanthi Gopalakrishnan
When you live and breathe the markets, it’s not unusual to be a big influence on your family. Because of his deep interest in the financial markets, Gatis Roze had an impact on spreading that passion to his son Grayson. The two have a special bond because of this common interest. From that they’ve formed a respectful relationship that has led them to coauthor a book and collaborate in their efforts to educate investors to take control of their financial assets.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with this father and son team to hear what they had to say about their experiences in writing together and working together toward a common objective of educating independent investors.
Can you briefly tell us a little bit about your back-ground and how you got interested in the financial markets? We’ll start with you, Gatis.
\nGatis: I started investing when I was 16, and my dad was my first financial mentor. He hired me to work for his manufacturing company when I was about 13 and encouraged me to invest my money. My first investment was a mutual fund, I made some profits, and that was it—I got hooked. During my Silicon Valley career, I had a professional money manager, so I was more hands-off. But in the early ’90s, my wife and I opened a family office in Burlingame, California, and that’s when my own financial education, so to speak, went into overdrive ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-34-39-interview-master-the-markets-with-gatis-and-grayson-roze-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-34-39-interview-master-the-markets-with-gatis-and-grayson-roze-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-34-39-interview-master-the-markets-with-gatis-and-grayson-roze-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364fufo,d,"{""minimum-quantity"":""1"",""path"":""ch1j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:01 (40–41): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
CHOOSING A BROKER
What do I need to look for when choosing a commodity option broker?
Before answering this question, there are a few things that must be disclosed. For starters, I am a commodity broker who specifically specializes in housing options traders. Thus, my opinion is likely slanted. Further, it is important to note that we are discussing choosing the proper broker to trade commodity options, not necessarily to trade futures ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-40-41-futures-for-you-by-carley-garner-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-40-41-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-40-41-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364exyo,d,"{""minimum-quantity"":""1"",""path"":""ch1j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:01 (42–43): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
INTRODUCING A NEW HOST FOR EXPLORE YOUR OPTIONS
Allow me to introduce myself. My name is Jay Kaeppel, and I am delighted to have the opportunity to succeed Tom Gentile, who is one of my options trading mentors, as the new host of the Explore Your Options column.
I traded my first option in 1984, and I codeveloped an options trading program in the 1990s that was called Option Pro. (In fact, that software was voted an award in the “options trading systems” category by the readers of S&C for six years in a row in S&C’s annual Readers’ Choice Awards feature!) ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-42-43-explore-your-options-by-jay-kaeppel-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-42-43-explore-your-options-by-jay-kaeppel-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-42-43-explore-your-options-by-jay-kaeppel-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364quma,d,"{""minimum-quantity"":""1"",""path"":""ch1j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:01 (44–45): Quick-Scan: Market Timer App by Barbara Star, PhD"",""caption-linebreaks"":""Quick-Scan: Market Timer App by Barbara Star, PhD
MARKET TIMER APP
\nBest Choice Software
\n1404 Hatcher Drive CircleBrandon, FL 33511
\nPhone: 941 747-5858
\nInternet: bestchoicesoftware.com
\nProduct: End-of-day program for swing and seasonality trading
\nSystem requirements: Any computer or tablet that can access the Internet
\nPrice: Monthly subscription $149, which includes end-of-day data; access to the various trading rooms extra
It isn’t often a customer likes a product so much he decides to buy the company. But that is exactly what Jerry McFarland did when the original owners of Best Choice software retired. Rather than see a company so well-known to those interested in seasonal and short-term trading disappear, McFarland, a longtime and profitable Best Choice software user, proceeded to revamp the program and send it to the cloud, where its new interface can be accessed globally ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-44-45-quick-scan-market-timer-app-by-barbara-star-phd-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-44-45-quick-scan-market-timer-app-by-barbara-star-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-44-45-quick-scan-market-timer-app-by-barbara-star-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364bofo,d,"{""minimum-quantity"":""1"",""path"":""ch1j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:01 (48): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
The Art And Science Of Trading: Course Workbook
Integrated Pitchfork Analysis: Basic To Intermediate Level
Smart Portfolios"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-48-books-for-traders-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-48-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-48-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov365trti,d,"{""minimum-quantity"":""1"",""path"":""ch1j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:01 (50–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Barbara Star’s article from this issue, “The CAM Indicator For Trends And Countertrends.” Here, we present the January 2018 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-50-56-traders-tips-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-50-56-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-50-56-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov366sore,d,"{""minimum-quantity"":""1"",""path"":""ch1j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:01 (60–62): Socially Responsible ETF Investing by Leslie N. Masonson"",""caption-linebreaks"":""Socially Responsible ETF Investing by Leslie N. Masonson
Are you interested in learning more about using exchange traded funds (ETFs) in your trading? Leslie N. Masonson, an active ETF trader, is president of Cash Management Resources, a financial consulting firm that focuses on ETF strategies. He is the author of Buy—Don’t Hold: Investing With ETFs Using Relative Strength To Increase Returns With Less Risk; and All About Market Timing, as well as Day Trading On The Edge. His website is www.buydonthold.com, where he writes a weekly blog. To submit topics for future columns, reach him at lesmasonson@yahoo.com.
Socially responsible investing was born in the 1960s when mutual funds offered a portfolio of companies’ shares meeting their socially responsible criteria, while also managing for competitive returns. The most often-used selection criteria would be companies that don’t sell tobacco, firearms, or alcohol products. In addition, some funds included moral and religious considerations ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-60-62-socially-responsible-etf-investing-by-leslie-n-masonson-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-60-62-socially-responsible-etf-investing-by-leslie-n-masonson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-60-62-socially-responsible-etf-investing-by-leslie-n-masonson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36749da,d,"{""minimum-quantity"":""1"",""path"":""ch1j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:01 (7, 49): Daytrading ADX Breakouts by Ken Calhoun"",""caption-linebreaks"":""Daytrading ADX Breakouts by Ken Calhoun
Would you like to know about a technical indicator that provides a consistent way to spot volatile breakouts in a timely manner? This tool may be sitting right in front of you. If you aren’t already using the ADX, here’s how to use it to determine whether a breakout is strong enough for a daytrade entry.
Daytrading is all about finding volatile breakouts in time to make a successful entry. You can use J. Welles Wilder’s average directional index (ADX) to help locate intraday trading setups as they are breaking out to new highs. I examined how to use this useful indicator for swing trades in an earlier article (STOCKS & COMMODITIES, March 2016). In this month’s column, you will see how to identify daytrades using the ADX ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-7-49-daytrading-adx-breakouts-by-ken-calhoun-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-7-49-daytrading-adx-breakouts-by-ken-calhoun-31.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-7-49-daytrading-adx-breakouts-by-ken-calhoun-32.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36749da1,d,"{""minimum-quantity"":""1"",""path"":""faarfr2010"",""ysw-page-title"":""Stocks & Commodities V. 36:01 (7, 49): Daytrading ADX Breakouts by Ken Calhoun"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-21821.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-7-49-daytrading-adx-breakouts-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-7-49-daytrading-adx-breakouts-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov368cami,d,"{""minimum-quantity"":""1"",""path"":""ch1j209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:01 (8–13): The CAM Indicator For Trends And Countertrends by Barbara Star, PhD"",""caption-linebreaks"":""The CAM Indicator For Trends And Countertrends by Barbara Star, PhD
Prices are always moving—up, sideways, down; they pull back, and change direction. What are some hints that conditions are changing? Here’s a look at how you can use patterns that appear in indicators and add an indicator to help identify the changing conditions of stock prices.
Technical analysis relies heavily on pattern recognition based on price structure alone or on price in relation to one or more indicators. Patterns identify breakouts, trends, consolidations, continuations, or reversals. Several years ago I noticed indicators also create patterns that, when paired with another indicator, can help traders recognize many of the changing conditions displayed by stock prices ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-8-13-the-cam-indicator-for-trends-and-countertrends-by-barbara-star-phd-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-8-13-the-cam-indicator-for-trends-and-countertrends-by-barbara-star-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-01-8-13-the-cam-indicator-for-trends-and-countertrends-by-barbara-star-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36133pr,d,"{""minimum-quantity"":""1"",""path"":""ch2f2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:02 (12, 33): Price Action And Volume Correlations by Ken Calhoun"",""caption-linebreaks"":""Price Action And Volume Correlations by Ken Calhoun
The market always brings us something we can at least eke out a little profit from, but we often miss those signals. This is why it’s necessary for traders to continuously search for opportunities, whether it be patterns that keep repeating themselves, pattern breakouts, or a pattern that’s your best secret. Here’s one pattern that can help you identify breakout opportunities.
One of my favorite technical analysis activities is examining strong winning charts to see whether there are repeatable patterns that can be used for future trades. You should always be on the look-out for early technical breakout patterns that can give you a clue as to potential future price action. You can think of it as becoming a market detective, to uncover visual clues that lead to winning trades ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-12-33-price-action-and-volume-correlations-by-ken-calhoun-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-12-33-price-action-and-volume-correlations-by-ken-calhoun-31.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-12-33-price-action-and-volume-correlations-by-ken-calhoun-32.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36133pr1,d,"{""minimum-quantity"":""1"",""path"":""faarfr2010"",""ysw-page-title"":""Stocks & Commodities V. 36:02 (12, 33): Price Action And Volume Correlations by Ken Calhoun"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-21822.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-12-33-price-action-and-volume-correlations-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-12-33-price-action-and-volume-correlations-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov361pran,d,"{""minimum-quantity"":""1"",""path"":""ch2f2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:02 (14–20): Profit-Taking And Resets Part 2: Short-Term Trading by Perry J. Kaufman"",""caption-linebreaks"":""Profit-Taking And Resets Part 2: Short-Term Trading by Perry J. Kaufman
Trends can be useful for longer-term trades but what about short-term trades? Do they work just as well? Here’s a look at a trading system that can be applied successfully to shorter-term trends.
Last month in part 1 we looked at profit-taking and resets for long-term (macro) trend systems. The overwhelming result was that profit-taking reduced returns by exiting too soon. We looked at ways to reset the trade, hopefully at a better price, but the strongest markets don’t retrace; therefore, they don’t give you a chance to reenter. You tend to miss the best trends ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-14-20-profit-taking-and-resets-part-2-short-term-trading-by-perry-j-kaufman-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-14-20-profit-taking-and-resets-part-2-short-term-trading-by-perry-j-kaufman-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-14-20-profit-taking-and-resets-part-2-short-term-trading-by-perry-j-kaufman-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36245ca,d,"{""minimum-quantity"":""1"",""path"":""ch2f2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:02 (22–25, 45): Capitalizing On Sector Rotation Strategies by Marisa Yang"",""caption-linebreaks"":""Capitalizing On Sector Rotation Strategies by Marisa Yang
Traders can always learn something from investors and vice versa. Typically, investors put more weight into outperforming sectors. But is that the best way? Let’s find out.
Sometimes it’s oil, sometimes real estate, or sometimes just plain old large-cap stocks. If you follow sectors and reallocate your investments by more heavily weighting them into the outperforming sectors, consider yourself ahead of the game when it comes to momentum-based sector rotation strategy. What makes the strategy effective? It generates excess returns over related benchmarks. These benchmarks could be various asset classes such as commodities, equities, bonds, and currencies ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-22-25-45-capitalizing-on-sector-rotation-strategies-by-marisa-yang-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-22-25-45-capitalizing-on-sector-rotation-strategies-by-marisa-yang-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-22-25-45-capitalizing-on-sector-rotation-strategies-by-marisa-yang-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36240wh,d,"{""minimum-quantity"":""1"",""path"":""ch2f2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:02 (26–28, 40): What’s The Fib Pinball? by Avi Gilburt"",""caption-linebreaks"":""What’s The Fib Pinball? by Avi Gilburt
When you pull the lever in pinball, the ball caroms between the game’s bumpers, like stock market prices zigzagging within price channels and meeting resistance at Fibonacci levels. Here’s a look at how market sentiment, Elliott wave analysis, and Fibonacci ratios were used to successfully forecast the post-election markets.
If you are like most in the market, you probably believed Hillary Clinton was going to win the presidential election in November 2016, that the stock market would rally because of it, and that gold would tank. And you were also told that if Donald Trump were able to pull off a win, then the market would tank and gold would skyrocket. These perspectives were based solidly in various fundamental perspectives that dictated these market expectations ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-26-28-40-what-s-the-fib-pinball-by-avi-gilburt-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-26-28-40-what-s-the-fib-pinball-by-avi-gilburt-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-26-28-40-what-s-the-fib-pinball-by-avi-gilburt-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36245ex,d,"{""minimum-quantity"":""1"",""path"":""ch2f2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:02 (29, 45): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
IMPLIED VOLATILITY: IS THAT OPTION CHEAP OR EXPENSIVE?
What is implied volatility, how is it calculated, and what does it mean?
In short, implied volatility is a variable calculated by an options pricing model that can tell an options trader whether the price for options on a given security are presently “cheap,” “expensive,” or somewhere in between. This knowledge can be extremely useful in deciding which options strategy to use and/or in managing existing positions ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-29-45-explore-your-options-by-jay-kaeppel-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-29-45-explore-your-options-by-jay-kaeppel-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-29-45-explore-your-options-by-jay-kaeppel-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov363siap,d,"{""minimum-quantity"":""1"",""path"":""ch2f2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:02 (30–33): A Simple Approach To Gap Trading by Solomon Chuama"",""caption-linebreaks"":""A Simple Approach To Gap Trading by Solomon Chuama
Anyone who has looked at a price chart knows that gaps occur. But all gaps aren’t the same. Here’s a look at the characteristics of four and how you can trade them.
Gaps—the spaces between price bars—are common on forex charts. These visible gaps often occur on the charts between the close of forex trading on Friday afternoon and the opening on Sunday afternoon. Sometimes you’ll see gaps appear in equity or index charts when a news report is released. Your ability to trade a gap depends on your identifying the type of gap that forms and the price action that follows. That said, let’s look more closely at gaps ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-30-33-a-simple-approach-to-gap-trading-by-solomon-chuama-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-30-33-a-simple-approach-to-gap-trading-by-solomon-chuama-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-30-33-a-simple-approach-to-gap-trading-by-solomon-chuama-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36340in,d,"{""minimum-quantity"":""1"",""path"":""ch2f2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:02 (34–37, 40): Interview: Trading Systems With Michael Bryant by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Trading Systems With Michael Bryant by Jayanthi Gopalakrishnan
With advanced degrees in mechanical engineering and computer science, working in the aerospace industry in the field of spacecraft design, and then in academia in the departments of ophthalmology and mechanical engineering, Michael Bryant found the markets a fascinating distraction. He gravitated toward trading futures and with his background it’s no surprise he went on to developing trading systems and then to developing software for traders. Bryant is the owner of Adaptrade Software, which develops products that are easily accessible to retail and professional traders.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Michael Bryant on December 8, 2017 about what it takes to develop a trading system.
Mike, can you tell us a little bit about your background and how you got interested in trading?
\nMy education is in engineering. I have a PhD in mechanical engineering with a minor in computer science. I had several different careers before I started trading. I was in aerospace engineering in spacecraft and launch vehicle design. I then switched to working as a research professor in a medical school developing biomechanical engineering models for the eye in the department of ophthalmology ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-34-37-40-interview-trading-systems-with-michael-bryant-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-34-37-40-interview-trading-systems-with-michael-bryant-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-34-37-40-interview-trading-systems-with-michael-bryant-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov363qaby,d,"{""minimum-quantity"":""1"",""path"":""ch2f2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:02 (38–39): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
WHILE YOU WERE SLEEPING ...
Something changed ... it really changed!
CryptoKitties was born of ones and zeros, bits and bytes, and rose to lofty heights utilizing the Ethereum platform. You can’t help but wonder if the blockchain, which has the power to change companies, industries, and even nations, is the best use of a technology ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-38-39-q-a-by-rob-friesen-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-38-39-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-38-39-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364quxt,d,"{""minimum-quantity"":""1"",""path"":""ch2f2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:02 (41–44): Quick-Scan: XTF.com by Leslie N. Masonson"",""caption-linebreaks"":""Quick-Scan: XTF.com by Leslie N. Masonson
XTF.COM
\nLSEG Information Services (US) Inc.
\nEmail: support@xtf.com
\nInternet: www.xtf.com
\nRequirements: Windows 8 or higher and Internet access
\nProduct: Online software platform providing technical and fundamental research on the US ETF universe incorporating a proprietary rating service
\nPrice: The basic service is free. Two premium services are available: $39/mo. for the gold level and $99/mo. for the platinum level.
ETF growth has been remarkable since the SPDR S&P 500 ETF (SPY) introduction on January 22, 1993. Since then, the number of domestic ETFs has increased to 2,097, valued at $3.28 billion, offered by 119 fund sponsors and listed on four exchanges, according to XTF.com ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-41-44-quick-scan-xtf-com-by-leslie-n-masonson-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-41-44-quick-scan-xtf-com-by-leslie-n-masonson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-41-44-quick-scan-xtf-com-by-leslie-n-masonson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364trti,d,"{""minimum-quantity"":""1"",""path"":""ch2f2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:02 (46–54): Traders' Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders' Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Vitali Apirine’s article in this issue, “Weekly & Daily Percentage Price Oscillator.” Here, we present the February 2018 Traders’ Tips code with possible implementations in various software. New this month is code for Quantacula Studio software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-46-54-traders-tips-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-46-54-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-46-54-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov365fufo,d,"{""minimum-quantity"":""1"",""path"":""ch2f2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:02 (55): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
SEASONAL PATTERN TRADING PLAYS?
How can seasonal analysis help commodity traders?
Most commodities fluctuate with the help of annual price patterns. These patterns can often be explained by growing cycles, annual economic transactions such as taxes and weather, and even holidays. Proponents of the practice of seasonal analysis suggest that traders can benefit from being aware of these annual cycles because it enhances their ability to speculate effectively, but opponents of the idea suggest seasonal information is known by the majority of market participants and, therefore, is always incorporated into current market pricing ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-55-futures-for-you-by-carley-garner-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-55-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-55-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov366yoin,d,"{""minimum-quantity"":""1"",""path"":""ch2f2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:02 (60–61): Your Intuition’s Role In Trading Decisions by Robert Reifert"",""caption-linebreaks"":""Your Intuition’s Role In Trading Decisions by Robert Reifert
We’ve all been taught that sometimes you must trust your instincts, but should you let your portfolio be guided by your intuition? Find out what the intersection of behavioral finance and evolutionary psychology has to say about it.
It's human nature to celebrate achievements. When we earn positive returns on our investments, we boast about them. But we never speak of our investment losses.
Conventional thinking views the financial market as a collection of investors acting on rational and informed financial decisions. However, a closer look will reveal that most of those decisions are based on feelings rather than on rationality. Anyone can have an intuition about a stock, but how much can that intuition be trusted? The market is made up of millions of investors acting on their instincts, which has been hardwired into their brains ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-60-61-your-intuition-s-role-in-trading-decisions-by-robert-reifert-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-60-61-your-intuition-s-role-in-trading-decisions-by-robert-reifert-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-60-61-your-intuition-s-role-in-trading-decisions-by-robert-reifert-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov366bofo,d,"{""minimum-quantity"":""1"",""path"":""ch2f2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:02 (62): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
Conquering The Seven Faces Of Risk: Automated Momentum Strategies That Avoid Bear Markets Empower Fearless Retirement Planning
Trading With Ichimoku: A Practical Guide To Low-Risk Ichimoku Strategies
Top Hedge Fund Investors: Stories, Strategies, and Advice"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-62-books-for-traders-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-62-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-62-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov367leto,d,"{""minimum-quantity"":""1"",""path"":""ch2f2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:02 (7): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
WEEKLY & DAILY MACD
Editor,
\nThank you very much to Vitali Apirine for all the time and effort that he has put into coding and developing profitable indicators for the trading community. He did an especially great job on the weekly & daily MACD indicator and automated strategy, described in his article that appeared in the December 2017 issue of STOCKS & COMMODITIES ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-7-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-7-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-7-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36840we,d,"{""minimum-quantity"":""1"",""path"":""ch2f2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:02 (8–11, 40): Weekly & Daily Percentage Price Oscillator by Vitali Apirine"",""caption-linebreaks"":""Weekly & Daily Percentage Price Oscillator by Vitali Apirine
Modifying a traditional indicator can make you look at a chart differently. You can compare indexes, look at price movements during extended periods of time, and make trading decisions based on your observations.
Sometimes we get so accustomed to using an indicator that we overlook the different things we can do with it. The weekly & daily percentage price oscillator (W&D PPO) is one such indicator. It’s made up of two momentum oscillators—a weekly PPO and a relative daily PPO. Each oscillator measures the difference between two moving averages as a percentage of the largest moving average (130-day EMA) ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-8-11-40-weekly-daily-percentage-price-oscillator-by-vitali-apirine-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-8-11-40-weekly-daily-percentage-price-oscillator-by-vitali-apirine-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-02-8-11-40-weekly-daily-percentage-price-oscillator-by-vitali-apirine-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36129vp,d,"{""minimum-quantity"":""1"",""path"":""ch3m2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:03 (12–16, 29): The V-Trade Part 1: Five Basic Trading Rules by Sylvain Vervoort"",""caption-linebreaks"":""The V-Trade Part 1: Five Basic Trading Rules by Sylvain Vervoort
Technical analysis, money management, and trading rules—these are the three basic components to a technically based trading system. But even if you’ve got these three components down, you still need to stay alert to …
For many years I have been using technical analysis to find the most secure way to make profits in the stock market with minimum risk. It has not been an easy journey. I started trading stocks as most people did, by opening an account, buying a technical analysis program, and connecting with a real-time data provider. And of course I had a PC, and like most people my age, I had a very slow connection to then-barely existing World Wide Web ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-12-16-29-the-v-trade-part-1-five-basic-trading-rules-by-sylvain-vervoort-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-12-16-29-the-v-trade-part-1-five-basic-trading-rules-by-sylvain-vervoort-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-12-16-29-the-v-trade-part-1-five-basic-trading-rules-by-sylvain-vervoort-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36129vp1,d,"{""minimum-quantity"":""1"",""path"":""faarfr2010"",""ysw-page-title"":""Stocks & Commodities V. 36:03 (12–16, 29): The V-Trade Part 1: Five Basic Trading Rules by Sylvain Vervoort"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-21823.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-12-16-29-the-v-trade-part-1-five-basic-trading-rules-by-sylvain-vervoort-31.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-12-16-29-the-v-trade-part-1-five-basic-trading-rules-by-sylvain-vervoort-32.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36127ga,d,"{""minimum-quantity"":""1"",""path"":""ch3m2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:03 (18–20, 27): Gain International Exposure Through ETFs by Leslie N. Masonson"",""caption-linebreaks"":""Gain International Exposure Through ETFs by Leslie N. Masonson
Are you interested in learning more about using exchange traded funds (ETFs) in your trading? Leslie N. Masonson, an active ETF trader, is president of Cash Management Resources, a financial consulting firm that focuses on ETF strategies. He is the author of Buy—Don’t Hold: Investing With ETFs Using Relative Strength To Increase Returns With Less Risk; and All About Market Timing, as well as Day Trading On The Edge. His website is www.buydonthold.com, where he writes a weekly blog. To submit topics for future columns, reach him at lesmasonson@yahoo.com.
When it comes to investing in international markets, investors have several options. Mutual funds with international exposure are always an option, but with the advent of ETFs, the number of available international choices has exploded. For example, according to xtf.com, there are 555 global ETFs, 133 international (ex-US), 1206 country-specific, 22 developed markets, 96 regional, and 98 emerging-market ETFs ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-18-20-27-gain-international-exposure-through-etfs-by-leslie-n-masonson-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-18-20-27-gain-international-exposure-through-etfs-by-leslie-n-masonson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-18-20-27-gain-international-exposure-through-etfs-by-leslie-n-masonson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov362thst,d,"{""minimum-quantity"":""1"",""path"":""ch3m2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:03 (22–27): Through The Stratosphere On The @NQ by Jay A. Leavitt, PhD"",""caption-linebreaks"":""Through The Stratosphere On The @NQ by Jay A. Leavitt, PhD
A system that gives you exceptional results is a keeper. But when you come up with one that gives even better results, it becomes a “keeper to the power of two.” Find out how this author came up with this stellar strategy.
In my November 2017 STOCKS & COMMODITIES article, “Trading The Tech Emini With The Leavitt Convolution,” I discussed my tech emini strategy, which showed a low percentage of time in the market, extremely low drawdown, and equally high yield.
Since then I’ve worked on what I call the stratosphere (STRAT) strategy, which hits tech emini (I’ll refer to that strategy as “TASC”) out of the ballpark and into the, you guessed it, stratosphere. And it doubles its RINA, which is a trade-based statistic that measures the efficiency of a trading system ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-22-27-through-the-stratosphere-on-the-nq-by-jay-a-leavitt-phd-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-22-27-through-the-stratosphere-on-the-nq-by-jay-a-leavitt-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-22-27-through-the-stratosphere-on-the-nq-by-jay-a-leavitt-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov362qaby,d,"{""minimum-quantity"":""1"",""path"":""ch3m2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:03 (28–29): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
THE PROBABILITIES ON REGRET?
What is regret? Most people would say that regret is painful. Some would say it’s the most painful thing in life. What if we run scenarios planning for feelings of regret in our trading? What if we assessed probabilities to a variety of outcomes? We know it’s necessary to create a plan for action and be disciplined to act accordingly. But how do we minimize the impact of regret and bounce back, ready for the next trade ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-28-29-q-a-by-rob-friesen-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-28-29-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-28-29-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36338in,d,"{""minimum-quantity"":""1"",""path"":""ch3m2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:03 (30–34, 38): Interview: Put Option Selling With Lee Lowell by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Put Option Selling With Lee Lowell by Jayanthi Gopalakrishnan
With 26 years of options trading under his belt, including trading crude oil and natural gas contracts on the floor of the NYMEX, Lee Lowell has figured out a way to conservatively trade options so traders can earn a steady income. You can find more about his strategies in his book Get Rich With Options and from his website www.smartoptionseller.com. He also publishes a newsletter, which includes trade recommendations and answers to subscriber questions.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Lee Lowell on January 11, 2018 to hear more about his put option selling strategies.
Lee, the last time I spoke to you was in 2007. What’s been going on since then?
\nYes, that was when the first edition of my book was published. A couple of years later, a second edition came out. I was working with Agora Publishing, a large financial publisher. In January 2017 I opted to start my own newsletter, which was similar to the newsletter I was doing with Agora, which was for put option selling. So I launched the new newslet-ter and started a website and things are going well ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-30-34-38-interview-put-option-selling-with-lee-lowell-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-30-34-38-interview-put-option-selling-with-lee-lowell-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-30-34-38-interview-put-option-selling-with-lee-lowell-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov363howt,d,"{""minimum-quantity"":""1"",""path"":""ch3m2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:03 (36–38): How To Trade Volatility by Andrew Sachais"",""caption-linebreaks"":""How To Trade Volatility by Andrew Sachais
Volatility can be a trader’s best friend, but trading volatility can be tricky. Here we look at an indicator that has a negative correlation with the Cboe Volatility Index (VIX) and could help you identify when volatility could increase.
A lot of attention has been paid to volatility over the past few years, or rather, the lack of volatility in the broader S&P 500 index. Investors have tried to speculate by buying the Cboe Volatility Index (VIX) or VIX-related products whenever they felt that riskier assets were about to roll over, which has ultimately been a losing trade thus far ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-36-38-how-to-trade-volatility-by-andrew-sachais-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-36-38-how-to-trade-volatility-by-andrew-sachais-31.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-36-38-how-to-trade-volatility-by-andrew-sachais-32.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov363howt1,d,"{""minimum-quantity"":""1"",""path"":""faarfr2010"",""ysw-page-title"":""Stocks & Commodities V. 36:03 (36–38): How To Trade Volatility by Andrew Sachais"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-21824.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-36-38-how-to-trade-volatility-by-andrew-sachais-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-36-38-how-to-trade-volatility-by-andrew-sachais-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36442ex,d,"{""minimum-quantity"":""1"",""path"":""ch3m2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:03 (40, 42): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
STARTING OUT IN OPTIONS
I am interested in getting started in options but am not sure where to start.
The most important question to ask and answer regarding options trading is “What objective(s) do I hope to achieve by using options?” While the most common answer is “I want to make money,” ironically, that answer will not help you to achieve that objective ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-40-42-explore-your-options-by-jay-kaeppel-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-40-42-explore-your-options-by-jay-kaeppel-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-40-42-explore-your-options-by-jay-kaeppel-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364fufo1,d,"{""minimum-quantity"":""1"",""path"":""ch3m2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:03 (41–42): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
WHAT DO WE NEED TO KNOW ABOUT BITCOIN FUTURES? (PART 1 OF 2)
The bitcoin frenzy of late 2017 was a stark reminder that US financial markets, which are presumed to be somewhat sophisticated, are ultimately vulnerable to the human emotions of fear and greed. I can’t think of another example of such a raw display of emotion and cult mentality than the cryptocurrency mania that has swept the nation, and even the world. It is impossible to scroll through social media feeds or newspapers without being exposed to the obsession over bitcoin ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-41-42-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-41-42-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-41-42-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364quva,d,"{""minimum-quantity"":""1"",""path"":""ch3m2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:03 (43–45): Quick-Scan: Vantagepoint 10 by Brandon Jones"",""caption-linebreaks"":""Quick-Scan: Vantagepoint 10 by Brandon Jones
VANTAGEPOINT 10
\nMarket Technologies, LLC
\n5807 Old Pasco Rd. Wesley Chapel, FL 33544
\nPhone: 800 732-5407 (US & Canada); 813 973-0496 all others
\nInternet: www.VantagepointSoftware.com
\nProduct: Market forecasting software for intermarket analysis using AI and neural networks
\nPrice: $2,997. Free live demonstration available at website.
My first experience as a trader with VantagePoint Software came in 2007 when I became a customer, just one year before the markets crashed during the Great Recession. Since that tumultuous time, I have used every new version of VantagePoint ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-43-45-quick-scan-vantagepoint-10-by-brandon-jones-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-43-45-quick-scan-vantagepoint-10-by-brandon-jones-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-43-45-quick-scan-vantagepoint-10-by-brandon-jones-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364trti1,d,"{""minimum-quantity"":""1"",""path"":""ch3m2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:03 (48–55): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is John Ehlers’ article in this issue, “Recursive Median Filters.” Here, we present the March 2018 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-48-55-traders-tips-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-48-55-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-48-55-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov366bofo1,d,"{""minimum-quantity"":""1"",""path"":""ch3m2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:03 (60): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
Derivatives Markets And Analysis
Pitch The Perfect Investment: The Essential Guide To Winning On Wall Street
The Investment Trusts Handbook 2018: The Latest Thinking, Opinion, Research And Information On Investment Trusts
The Smart Financial Advisor: How Financial Advisors Can Thrive By Embracing Fintech And Goals-Based Investing"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-60-books-for-traders-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-60-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-60-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov366bufl,d,"{""minimum-quantity"":""1"",""path"":""ch3m2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:03 (61–62): Bull Flag Swing Trading Breakouts by Ken Calhoun"",""caption-linebreaks"":""Bull Flag Swing Trading Breakouts by Ken Calhoun
Missed your entry on a big breakout? A trend continuation could give you a second chance. Here’s how to spot a pattern that gives you the opening you need.
If you have ever missed entering an initial big break-out, one strategy you may find useful is to look to enter breakouts following bullish flag patterns, so that you can enter a trend continuation. This momentum trading strategy, which I’ll describe here, is designed to capitalize on continued volatility following a pullback in a strong uptrend. This month’s column will go beyond the basics of bull flags, adding two additional technical signals to this popular pattern ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-61-62-bull-flag-swing-trading-breakouts-by-ken-calhoun-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-61-62-bull-flag-swing-trading-breakouts-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-61-62-bull-flag-swing-trading-breakouts-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36762le,d,"{""minimum-quantity"":""1"",""path"":""ch3m2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:03 (7, 62): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
INSIGHTS INTO PAIR-WISE CORRELATION
Editor,
\nI am writing in response to the January 2018 article by Cassandra Wang regarding pair-wise correlations.
During my career in the physical sciences, I frequently encountered the need to consider the correlation between variables in an attempt to discover possible issues of causation. While correlation does not equate to causation, it is a necessary precursor ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-7-62-letters-to-s-c-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-7-62-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-7-62-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov368reme,d,"{""minimum-quantity"":""1"",""path"":""ch3m2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:03 (8–11): Recursive Median Filters by John F. Ehlers"",""caption-linebreaks"":""Recursive Median Filters by John F. Ehlers
Impulsive noise spikes or extreme price or volume data are not unusual in the financial markets and these extreme values can throw off your averaging calculations. How can you set up a data filter to re-move these extreme price movements? This STOCKS & COMMODITIES Contributing Editor shows you a way to handle this by using a filter that discards all data except the median value.
Median filters are best applied to remove impulsive or spiking types of noise. Rather than averaging the spike into the filter output, median filters simply ignore the spike. Median filters are routinely used for processing photographs and video because they preserve the sharp edges in the images rather than smoothing them as is done by averaging filters ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-8-11-recursive-median-filters-by-john-f-ehlers-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-8-11-recursive-median-filters-by-john-f-ehlers-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-03-8-11-recursive-median-filters-by-john-f-ehlers-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36147vp,d,"{""minimum-quantity"":""1"",""path"":""ch4a2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:04 (12–16, 47): The V-Trade Part 2: Technical Analysis by Sylvain Vervoort"",""caption-linebreaks"":""The V-Trade Part 2: Technical Analysis by Sylvain Vervoort
Making buy and sell decisions are critical for any trader. But in some market environments, it’s difficult to gauge which way prices will move. Are institutional traders just pushing prices to make a quick buck? What’s a retail trader to do? Here’s one way to know.
In this second part of my V-Trade article series, I’ll discuss the process of making buy and sell decisions. I’ll focus on what you should know about technical analysis in order to successfully apply the five basic trading rules I outlined last time in part 1. I’ll go over several important components of technical analysis including chart types, passive support & resistance, active support & resistance, chart patterns, and wave count. Then I’ll explain how I apply these techniques to make manual and automatic buy & sell decisions ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-12-16-47-the-v-trade-part-2-technical-analysis-by-sylvain-vervoort-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-12-16-47-the-v-trade-part-2-technical-analysis-by-sylvain-vervoort-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-12-16-47-the-v-trade-part-2-technical-analysis-by-sylvain-vervoort-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov361admo,d,"{""minimum-quantity"":""1"",""path"":""ch4a2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:04 (18–21): Adaptive Moving Averages by Vitali Apirine"",""caption-linebreaks"":""Adaptive Moving Averages by Vitali Apirine
The biggest challenge for any trader is identifying turning points in price movements. You never know if you’ll end up getting whipsawed out of a trade. Here’s one way to avoid those whipsaws.
The term adaptive moving average is associated with the Kaufman adaptive moving average (KAMA), developed by Perry Kaufman. In this article I will discuss the adaptive moving average (AMA), which is based on the KAMA but has subtle differences.
The AMA is designed to account for the location of the close relative to the high–low range. You’ll find that AMA closely follows prices and can be combined with KAMA to identify turning points and filter price movements ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-18-21-adaptive-moving-averages-by-vitali-apirine-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-18-21-adaptive-moving-averages-by-vitali-apirine-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-18-21-adaptive-moving-averages-by-vitali-apirine-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov361admo1,d,"{""minimum-quantity"":""1"",""path"":""faarfr2010"",""ysw-page-title"":""Stocks & Commodities V. 36:04 (18–21): Adaptive Moving Averages by Vitali Apirine"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-21825.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-18-21-adaptive-moving-averages-by-vitali-apirine-31.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-18-21-adaptive-moving-averages-by-vitali-apirine-32.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov362vowh,d,"{""minimum-quantity"":""1"",""path"":""ch4a2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:04 (22–26): Volatility: What’s The Best Measure? by Mike B. Siroky, MD"",""caption-linebreaks"":""Volatility: What’s The Best Measure? by Mike B. Siroky, MD
Volatility has often been measured by standard deviation but there are other ways to look at volatility. Here we look at how true range can be used as a reliable volatility measure.
A century ago, John D. Rockefeller was asked what he expected Standard Oil stock to do. According to legend, he answered, “I fully expect it to fluctuate.” Today we use the term “volatility” instead of “stock price fluctuation.” Standard deviation of returns remains the most commonly used volatility estimate, but newer measures have appeared in the last two decades that are thought to offer some significant advantages. The main problem has been that different measures produce different estimates of volatility. It turns out that the level of volatility depends on your measuring stick ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-22-26-volatility-what-s-the-best-measure-by-mike-b-siroky-md-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-22-26-volatility-what-s-the-best-measure-by-mike-b-siroky-md-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-22-26-volatility-what-s-the-best-measure-by-mike-b-siroky-md-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36237fu,d,"{""minimum-quantity"":""1"",""path"":""ch4a2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:04 (27, 37): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
WHAT DO WE NEED TO KNOW ABOUT BITCOIN FUTURES? (PART 2 OF 2)
Last month, we looked at the contract specs for the two versions of bitcoin futures. This month, we’ll focus on market characteristics and logistics ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-27-37-futures-for-you-by-carley-garner-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-27-37-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-27-37-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov362raal,d,"{""minimum-quantity"":""1"",""path"":""ch4a2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:04 (28–31): RaS: An Alternative Charting Technique by Marco Alves"",""caption-linebreaks"":""RaS: An Alternative Charting Technique by Marco Alves
Technical analysts rely on charts to make their trading decisions. Some prefer to look at bar charts, others prefer candle charts, renko charts, line charts, or … There are many options to choose from. Here’s another one to add to your list. It combines bar and candlestick charts and makes your charts more visually appealing and intuitive.
Many types of charts are available to plot price over time—from those that rely solely on closing prices (such as line charts, symbols, area graphs, histograms, and so on), to those that are not time-uniform (such as renko, kagi, point & figure, and so forth), to the most popular ones—bar and candlestick charts ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-28-31-ras-an-alternative-charting-technique-by-marco-alves-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-28-31-ras-an-alternative-charting-technique-by-marco-alves-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-28-31-ras-an-alternative-charting-technique-by-marco-alves-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov363inpi,d,"{""minimum-quantity"":""1"",""path"":""ch4a2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:04 (32–37): Interview: Pivot Levels With Gareth Burgess by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Pivot Levels With Gareth Burgess by Jayanthi Gopalakrishnan
After spending many years dabbling in the financial markets, Gareth Burgess decided to take the leap to becoming an independent trader. Many years of research into charts led him to come up with a trading system that he believes is similar to Jesse Livermore’s tape-reading techniques. His research into charting techniques and backtesting to discover what works and doesn’t work also led to his book published by Wiley, Trading And Investing In The Forex Markets Using Chart Techniques.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Gareth Burgess on February 8, 2018 to find out more about his trading system.
Gareth, tell us about how you got interested in the markets.
My grandfather worked at Coutts Bank in London. When he died, he left a portfolio of company stocks behind, so even though I didn’t understand anything about the financial markets when I was young, it wasn’t new to me when I eventually got involved in trading and investing. The first investment I made was in 1987, and that was through a student friend of mine who had a small portfolio of stocks in energy companies such as British Gas. I had just returned to university after working the summer holidays to get some money together for the winter semester ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-32-37-interview-pivot-levels-with-gareth-burgess-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-32-37-interview-pivot-levels-with-gareth-burgess-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-32-37-interview-pivot-levels-with-gareth-burgess-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov363prre,d,"{""minimum-quantity"":""1"",""path"":""ch4a2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:04 (38–41): Product Review: Elliott Wave Turning Points by Barbara Star, PhD"",""caption-linebreaks"":""Product Review: Elliott Wave Turning Points by Barbara Star, PhD
DYNAMIC TREND, INC.
\n689 West Turkeyfoot Lake Road, Akron, OH 44319
\nPhone: 330 645-0800 Fax: 330 645-0804
\nEmail: sales@dynamictrend.com
\nInternet: www.DynamicTrend.com
\nProduct: Trading signals and targets for stocks, commodities, and forex markets based upon Elliott wave, Gann, and Fibonacci concepts
\nRequirements: Windows version 7 or higher. Works with eSignal and other datafeeds. Broker linkage available with TradeStation and Tradier.
\nPrice: $245 per month includes real-time data (exchange fees extra).
Elliott Wave Turning Points is a real-time trading module recently designed as an addition to the options program from Dynamic Trend that was reviewed in the July 2009 issue of this magazine (see “Option Dynamics” in Further Reading). The good news is the new Elliott Wave Turning Points module can be used for stocks, futures, and forex trading ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-38-41-product-review-elliott-wave-turning-points-by-barbara-star-phd-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-38-41-product-review-elliott-wave-turning-points-by-barbara-star-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-38-41-product-review-elliott-wave-turning-points-by-barbara-star-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364qaby,d,"{""minimum-quantity"":""1"",""path"":""ch4a2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:04 (42–43): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
CHICKEN OR EGG?
I sometimes ask traders this question: “What moves the stock markets?” The responses I receive are quick, varied, and for the most part they are all correct. The traders’ comments are reactive ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-42-43-q-a-by-rob-friesen-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-42-43-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-42-43-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36456pr,d,"{""minimum-quantity"":""1"",""path"":""ch4a2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:04 (44–45, 56): Product Review: NeuroShell Trader Version 6.5 by Jason K. Hutson"",""caption-linebreaks"":""Product Review: NeuroShell Trader Version 6.5 by Jason K. Hutson
WARD SYSTEMS GROUP
\n7820 B Wormans Mill Rd #383, Frederick, MD 21701
\nPhone: 301 662-7950
\nEmail: sales@wardsystems.com; support@wardsystems.com
\nSales: www.neuroshell.com
\nSupport: http://nstsupport.wardsys-temsgroup.com
\nProduct: Neural network trading software
\nPrice: Trader Professional $1,495; Trader Power User $2,295; Day Trader Professional $2,495; Day Trader Power User $3,495.
NeuroShell’s programming interface can get any trader started down a path of building trading systems quickly. The point-and-click interface for the various types of trading systems, indicators, and neural nets that can be created and debugged reduces the learning curve ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-44-45-56-product-review-neuroshell-trader-version-6-5-by-jason-k-hutson-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-44-45-56-product-review-neuroshell-trader-version-6-5-by-jason-k-hutson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-44-45-56-product-review-neuroshell-trader-version-6-5-by-jason-k-hutson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36456ta,d,"{""minimum-quantity"":""1"",""path"":""ch4a2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:04 (46, 56): Tape Reading Breakouts by Ken Calhoun"",""caption-linebreaks"":""Tape Reading Breakouts by Ken Calhoun
The time & sales window can reveal valuable information about the strength of a trend. Learn more about how trading professionals use it and how you too can use it to your advantage.
If you rely on charts to manage your entries in real time, daytrading momentum stock breakouts can be a challenge. But adding the use of time & sales, also known as “tape reading,” can help you detect important entry signals and reduce the likelihood of entering false breakouts. Reading the order flow in time & sales provides an important advantage you can use when deciding whether or not to enter your next trade ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-46-56-tape-reading-breakouts-by-ken-calhoun-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-46-56-tape-reading-breakouts-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-46-56-tape-reading-breakouts-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364trti2,d,"{""minimum-quantity"":""1"",""path"":""ch4a2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:04 (48–54): Traders' Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders' Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Vitali Apirine’s article in this issue, “Adaptive Moving Averages.” Here, we present the April 2018 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
(Or from Traders.com, scroll down to the current articles section and click on the Traders’ Tips tab.)
The Traders’ Tips section is provided to help the reader implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-48-54-traders-tips-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-48-54-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-48-54-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov365exyo,d,"{""minimum-quantity"":""1"",""path"":""ch4a2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:04 (55–56): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
THE KEYS TO BUYING CALL OPTIONS
Should I buy an in-the-money (ITM), at-the-money (ATM), or out-of-the-money (OTM) call option if I am bullish on a stock?
It’s important to recognize that there is no uniformly “correct” answer to that question. Before proceeding, let’s also note for the record that an ITM call has a strike price that is below the price of the underlying shares, the ATM call is the strike price that is closest to the current price of the underlying shares, and the OTM call has a strike price that is above the price of the underlying shares ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-55-56-explore-your-options-by-jay-kaeppel-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-55-56-explore-your-options-by-jay-kaeppel-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-55-56-explore-your-options-by-jay-kaeppel-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov366rast,d,"{""minimum-quantity"":""1"",""path"":""ch4a2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:04 (60–62): A Range-Bound Strategy by Solomon Chuama"",""caption-linebreaks"":""A Range-Bound Strategy by Solomon Chuama
Markets move in trends and markets move in trading ranges. Looking at any chart makes it plain to see that a trader can make money during trends, but we shouldn’t rule out the possibility of making successful trades during trading ranges. Here’s how one forex trader does it.
A range is when there’s a series of prices marked by a high and low level. Ranges occur as a result of buyer and seller indecision. Neither group is able to push the price of a currency pair beyond the high and low point or resistance and support levels, respectively. This is known as a range-bound market. It is possible to trade a market when prices oscillate between these levels, if there’s enough distance between them. But if a ranging market is choppy, it’s not worth trading. A choppy market consolidates tightly and the distance between the levels is not enough to allow for a good risk–reward ratio ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-60-62-a-range-bound-strategy-by-solomon-chuama-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-60-62-a-range-bound-strategy-by-solomon-chuama-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-60-62-a-range-bound-strategy-by-solomon-chuama-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov367leto1,d,"{""minimum-quantity"":""1"",""path"":""ch4a2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:04 (7): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
THE V-TRADE SERIES
Editor,
\nIt’s great to hear from author Sylvain Vervoort again in the magazine. I am a subscriber to S&C and I can’t wait to read his new series of articles!
Looking forward to trying his system. I have a MetaTrader 4 account and am ready to go ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-7-letters-to-s-c-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-7-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-7-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov368subi,d,"{""minimum-quantity"":""1"",""path"":""ch4a2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:04 (8–10): Survivorship Bias—A Wake-Up Call by Dion Kurczek"",""caption-linebreaks"":""Survivorship Bias—A Wake-Up Call by Dion Kurczek
There’s more to trading systems than developing buy and sell signals. Here’s one aspect you may not have been aware of that could make a difference to your backtesting results.
When I first began my research into technical analysis and trading system development—that would have been around the year 2000—I was focused on trading system rules and code. I spent countless hours developing my own backtesting platform, and ensuring the logic for my trading models was expressed correctly and that the results were accurate. But there’s more to system trading than developing buy and sell rules ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-8-10-survivorship-bias-a-wake-up-call-by-dion-kurczek-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-8-10-survivorship-bias-a-wake-up-call-by-dion-kurczek-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-04-8-10-survivorship-bias-a-wake-up-call-by-dion-kurczek-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36154vp,d,"{""minimum-quantity"":""1"",""path"":""ch5m2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:05 (14–21, 54–55): The V-Trade Part 3: Technical Analysis—Fibonacci Projections And Daily Pivots by Sylvain Vervoort"",""caption-linebreaks"":""The V-Trade Part 3: Technical Analysis—Fibonacci Projections And Daily Pivots by Sylvain Vervoort
In this third part of a multipart series, we look at passive support & resistance with Fibonacci projections and daily pivots.
The objective of this series on the V-Trade is to explain the techniques I apply to make manual and automatic buy & sell decisions, or a combination of both. Last month in part 2, I discussed passive support & resistance levels. I will continue that discussion of technical analysis here with a focus on Fibonacci projections and daily pivots. I will also include an indicator that displays pivot levels on a chart ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-14-21-54-55-the-v-trade-part-3-technical-analysis-fibonacci-projections-and-daily-pivots-by-sylvain-vervoort-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-14-21-54-55-the-v-trade-part-3-technical-analysis-fibonacci-projections-and-daily-pivots-by-sylvain-vervoort-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-14-21-54-55-the-v-trade-part-3-technical-analysis-fibonacci-projections-and-daily-pivots-by-sylvain-vervoort-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov362exyo,d,"{""minimum-quantity"":""1"",""path"":""ch5m2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:05 (22–23): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
CREDIT SPREADS
I’ve heard that selling a credit spread can allow me to make money even if the underlying security remains unchanged or slightly moves against me. What exactly is a credit spread and what are the keys to trading them?
A bull put vertical spread involves selling a put option with a higher strike price and buying another put option with a lower strike price ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-22-23-explore-your-options-by-jay-kaeppel-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-22-23-explore-your-options-by-jay-kaeppel-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-22-23-explore-your-options-by-jay-kaeppel-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov362trsu,d,"{""minimum-quantity"":""1"",""path"":""ch5m2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:05 (24–28): Trading Support & Resistance Levels In FX by Solomon Chuama"",""caption-linebreaks"":""Trading Support & Resistance Levels In FX by Solomon Chuama
The forex markets typically move in a zigzag fashion, and that makes entry and exit decisions challenging. Here we look at a few tried and true methods to identify strong support & resistance levels in the forex markets.
Technical analysis or chart analysis is the study of historical price movement to determine where price will go. As you look at the chart you identify trends and patterns that will give you trading opportunities. At the beginning of each trading week, most forex traders first identify the market’s direction, marking these key levels, and initiating trades to buy or sell at these key levels of support & resistance. In this article, I’ll discuss the concept of support & resistance, which forms the basis of forex technical analysis, and I’ll look at how to use these levels to trade ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-24-28-trading-support-resistance-levels-in-fx-by-solomon-chuama-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-24-28-trading-support-resistance-levels-in-fx-by-solomon-chuama-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-24-28-trading-support-resistance-levels-in-fx-by-solomon-chuama-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36256fu,d,"{""minimum-quantity"":""1"",""path"":""ch5m2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:05 (29, 56): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
DAYTRADING EMINI S&P OPTIONS (PART 1 Of 2)
Now that the CME offers Monday, Wednesday, and Friday weekly options, is daytrading emini S&P 500 options a viable strategy?
A few years ago, the idea of daytrading options in the emini S&P was more of a pipe dream than a reality. Traders wishing to do so were forced to trade options with monthly expirations (the third Friday of each month) or end-of-month options ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-29-56-futures-for-you-by-carley-garner-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-29-56-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-29-56-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov363foma,d,"{""minimum-quantity"":""1"",""path"":""ch5m2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:05 (30–33): The Four Market Dimensions by Mark Rivest"",""caption-linebreaks"":""The Four Market Dimensions by Mark Rivest
Improve your trading by combining the dimensions of price, time, momentum, and sentiment.
Traders often find themselves stuck in a world of two or sometimes only one dimension. They could be utilizing the dimensions of price and momentum while ignoring factors from the dimensions of time and sentiment. The reality is markets operate simultaneously in all four dimensions and each must be analyzed to maximize profits ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-30-33-the-four-market-dimensions-by-mark-rivest-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-30-33-the-four-market-dimensions-by-mark-rivest-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-30-33-the-four-market-dimensions-by-mark-rivest-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36339in,d,"{""minimum-quantity"":""1"",""path"":""ch5m2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:05 (34–37, 39): Interview: Building Trading Systems With Cesar Alvarez by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Building Trading Systems With Cesar Alvarez by Jayanthi Gopalakrishnan
With a bachelor of science in electrical engineering and computer science, and a master of science in computer science, it’s no surprise that Cesar Alvarez found an affinity for developing trading systems. He has been at the forefront of stock market research and has developed a number of trading systems based on his findings. He’s got strategies for daytrading, swing trading, long-term trading … you name it, he’s likely got it. Alvarez has also coauthored several books on systems trading.
To find out more about what goes into the different types of trading systems he develops, STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Cesar Alvarez via phone on March 12, 2018.
Cesar, tell us about yourself and how you got interested in the financial markets.
\nI was originally a computer programmer. I spent six years at Microsoft, working on Excel as a programmer. This was back in the days when Excel was called Excel 3, 4, and 5, before they started adding years to the versions ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-34-37-39-interview-building-trading-systems-with-cesar-alvarez-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-34-37-39-interview-building-trading-systems-with-cesar-alvarez-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-34-37-39-interview-building-trading-systems-with-cesar-alvarez-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov363moav,d,"{""minimum-quantity"":""1"",""path"":""ch5m2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:05 (38–39): Moving Average Hammer Pivots by Ken Calhoun"",""caption-linebreaks"":""Moving Average Hammer Pivots by Ken Calhoun
Combine a Japanese hammer candle with a moving average line to confirm a pivot and generate a trading signal.
One of my favorite swing trading pivot patterns is to combine a classic hammer candlestick with a major moving average support line. By combining a Japanese hammer candle with a Western technical moving average line, you can capitalize on trading technical signals generated by both approaches ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-38-39-moving-average-hammer-pivots-by-ken-calhoun-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-38-39-moving-average-hammer-pivots-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-38-39-moving-average-hammer-pivots-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364reet,d,"{""minimum-quantity"":""1"",""path"":""ch5m2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:05 (42–45): Retail ETFs Are A Mixed Bag by Leslie N. Masonson"",""caption-linebreaks"":""Retail ETFs Are A Mixed Bag by Leslie N. Masonson
Are you interested in learning more about using exchange traded funds (ETFs) in your trading? Leslie N. Masonson, an active ETF trader, is president of Cash Management Resources, a financial consulting firm that focuses on ETF strategies. He is the author of Buy—Don’t Hold: Investing With ETFs Using Relative Strength To Increase Returns With Less Risk; and All About Market Timing, as well as Day Trading On The Edge. His website is www.buydonthold.com, where he writes a weekly blog. To submit topics for future columns, reach him at lesmasonson@yahoo.com.
As investors and shoppers, we’re familiar with the world of retailing. Of course, department stores, specialty retailers, and malls were the rage in the 1970s to early 2000s ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-42-45-retail-etfs-are-a-mixed-bag-by-leslie-n-masonson-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-42-45-retail-etfs-are-a-mixed-bag-by-leslie-n-masonson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-42-45-retail-etfs-are-a-mixed-bag-by-leslie-n-masonson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364trti3,d,"{""minimum-quantity"":""1"",""path"":""ch5m2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:05 (46–53): Traders' Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders' Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is John Ehlers’ article in this issue, “RocketRSI—A Solid Propellant For Your Rocket Science Trading.” Here, we present the May 2018 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-46-53-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-46-53-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-46-53-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov366getm,d,"{""minimum-quantity"":""1"",""path"":""ch5m2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:05 (60–62): Get More Value Using A Trading Checklist by Thomas Bulkowski"",""caption-linebreaks"":""Get More Value Using A Trading Checklist by Thomas Bulkowski
What is a trading plan or checklist and how can it help?
There are 10 types of people in the world: those who understand binary and those who don’t. So goes the joke. In the trading world, there are two types of traders: those of us who use trading plans and those who wonder why they can’t make money trading.
Perhaps that is an unfair assessment, and it’s not accurate anyway. But let’s talk about trading plans or checklists and how they can help you make money ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-60-62-get-more-value-using-a-trading-checklist-by-thomas-bulkowski-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-60-62-get-more-value-using-a-trading-checklist-by-thomas-bulkowski-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-60-62-get-more-value-using-a-trading-checklist-by-thomas-bulkowski-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36740le,d,"{""minimum-quantity"":""1"",""path"":""ch5m2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:05 (7, 40): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
TRADING VOLATILITY
Editor,
\nI was reading the article by Andrew Sachais in the March 2018 S&C, “How To Trade Volatility.” I am confused by the top chart showing the $SPXEW overlay with $VIX ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-7-40-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-7-40-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-7-40-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov368roso1,d,"{""minimum-quantity"":""1"",""path"":""faarfr2010"",""ysw-page-title"":""Stocks & Commodities V. 36:05 (8–12): RocketRSI—A Solid Propellant For Your Rocket Science Trading by John F. Ehlers"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-21826.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-8-12-rocketrsi-a-solid-propellant-for-your-rocket-science-trading-by-john-f-ehlers-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-8-12-rocketrsi-a-solid-propellant-for-your-rocket-science-trading-by-john-f-ehlers-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov368roso,d,"{""minimum-quantity"":""1"",""path"":""ch5m2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:05 (8–12): RocketRSI—A Solid Propellant For Your Rocket Science Trading by John F. Ehlers"",""caption-linebreaks"":""RocketRSI—A Solid Propellant For Your Rocket Science Trading by John F. Ehlers
Wouldn’t it be great to know that there’s a strong chance a cyclic reversal will take place? How many indicators can identify this event? The RSI is a favorite indicator among technical analysts. Make it a tad bit more flexible and it may help you find those high-probability reversal points.
J. Welles Wilder’s original description of the relative strength index (RSI) in his 1978 book New Concepts In Technical Trading Systems specified a calculation length of 14 days. That requirement started me on a 40-year quest to find the correct length of data for the computation of indicators and trading strategy rules ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-8-12-rocketrsi-a-solid-propellant-for-your-rocket-science-trading-by-john-f-ehlers-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-8-12-rocketrsi-a-solid-propellant-for-your-rocket-science-trading-by-john-f-ehlers-31.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-05-8-12-rocketrsi-a-solid-propellant-for-your-rocket-science-trading-by-john-f-ehlers-32.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36141fu,d,"{""minimum-quantity"":""1"",""path"":""ch6j2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:06 (15, 41): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
\nDAYTRADING EMINI S&P OPTIONS (PART 2 OF 2)
Now that the CME offers Monday, Wednesday, and Friday weekly options, is daytrading emini S&P 500 options a viable strategy?
\nLast month, I touched on the advantages offered to traders by the CME’s new suite of weekly expiring options. As a reminder, the CME now lists options trading against the emini S&P, which expire on every other day of the trading week ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-15-41-futures-for-you-by-carley-garner-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-15-41-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-15-41-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov361vpa4,d,"{""minimum-quantity"":""1"",""path"":""ch6j2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:06 (16–24): The V-Trade Part 4: Technical Analysis—Trends & Reversals by Sylvain Vervoort"",""caption-linebreaks"":""The V-Trade Part 4: Technical Analysis—Trends & Reversals by Sylvain Vervoort
In this fourth part of a multipart series, we continue with the discussion of an important technical analysis concept, passive support & resistance. We’ll look at price trends, trend channels, the Andrews pitchfork, and applying a stop-loss, all with the goal of leading up to a multipronged approach to the markets.
The V-Trade, which stands for Vervoort trading, is what I call my method of approaching the markets. It’s the series of techniques I use to make manual and automatic buy & sell decisions, or a combination of both. Last month in part 3, I discussed passive support & resistance levels, Fibonacci projections, and daily pivots. I also provided an indicator that displays pivot levels on a chart. Here, I will continue the discussion of technical analysis, this time with a focus on trends and reversals ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-16-24-the-v-trade-part-4-technical-analysis-trends-reversals-by-sylvain-vervoort-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-16-24-the-v-trade-part-4-technical-analysis-trends-reversals-by-sylvain-vervoort-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-16-24-the-v-trade-part-4-technical-analysis-trends-reversals-by-sylvain-vervoort-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov362fibi,d,"{""minimum-quantity"":""1"",""path"":""ch6j2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:06 (26–29): Five Big Dan Zanger Money-Making Patterns by Matt Blackman"",""caption-linebreaks"":""Five Big Dan Zanger Money-Making Patterns by Matt Blackman
Chart patterns and volume—that’s all well-known stock trader Dan Zanger uses. Here are five bullish chart patterns he uses to recognize potential home runs.
Dan Zanger first became a household name in the trading world following a December 2000 Fortune magazine article titled “My Stocks Are Up 10,000 Percent!” Tracing his path from swimming pool contractor making $50,000 a year to becoming a world record–holding stock trader, it outlined how he parlayed $11,000 into $18 million in 18 months during the Internet stock boom ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-26-29-five-big-dan-zanger-money-making-patterns-by-matt-blackman-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-26-29-five-big-dan-zanger-money-making-patterns-by-matt-blackman-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-26-29-five-big-dan-zanger-money-making-patterns-by-matt-blackman-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36356ea,d,"{""minimum-quantity"":""1"",""path"":""ch6j2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:06 (30–35, 56): Early Warning System Dynamic Model by Michael Slattery"",""caption-linebreaks"":""Early Warning System Dynamic Model by Michael Slattery
When can you confidently enter or exit a trade? It’s never easy, but there are dynamics between adoption models and supply & demand that, if understood, can provide the trader with valuable insights in the form of advanced warning signals.
The source of inspiration for most of the indicators I developed over the years has been from authors who have had articles published in these pages. So it was exciting to discover several articles that led to additional insight and understanding of a unique indicator I developed and described in the August 2017 issue of STOCKS & COMMODITIES, “An Early Warning System” ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-30-35-56-early-warning-system-dynamic-model-by-michael-slattery-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-30-35-56-early-warning-system-dynamic-model-by-michael-slattery-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-30-35-56-early-warning-system-dynamic-model-by-michael-slattery-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36356in,d,"{""minimum-quantity"":""1"",""path"":""ch6j2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:06 (36–39, 56): Interview: Finding Dynamic Moves With Robert Miner by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Finding Dynamic Moves With Robert Miner by Jayanthi Gopalakrishnan
Robert Miner published his first market report in 1985. In 1989 he published the W.D. Gann Trading Course (no longer available). His most recent book is High Probability Trading Strategies (Wiley). In the early 1990s, he was a first-place winner of a national trading contest. He continues to write his DT Reports and update and sell the Dynamic Trader Software and Trading Course, now in version 7.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Robert Miner on April 11, 2018 about how his analysis techniques still work in today’s markets.
Robert, how did you get interested in trading and the markets?
I read a book. I can’t remember the exact title but it was something like How To Make A Million Dollars In Your Spare Time Trading Commodities. That was back in the early to mid-’80s. I started reading about trading and charting markets by hand. I would get blueprint paper and chart daily and weekly charts and I went on from there. I got very interested in it. At that time, there wasn’t much instructional information about charting and technical analysis ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-36-39-56-interview-finding-dynamic-moves-with-robert-miner-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-36-39-56-interview-finding-dynamic-moves-with-robert-miner-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-36-39-56-interview-finding-dynamic-moves-with-robert-miner-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364exyo1,d,"{""minimum-quantity"":""1"",""path"":""ch6j2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:06 (40–41): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
TRADING LONG CALLS OR PUTS
I’m relatively new to options trading. I like the idea of buying a call option and spending less than it would cost to buy the underlying shares. I’m just not sure which strike price to buy. Are there any guidelines or rules of thumb that can help?
Yes, there are lots of guidelines and rules of thumb that can help. At the same time, there are no hard and fast rules or “correct” answers ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-40-41-explore-your-options-by-jay-kaeppel-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-40-41-explore-your-options-by-jay-kaeppel-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-40-41-explore-your-options-by-jay-kaeppel-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36455dx,d,"{""minimum-quantity"":""1"",""path"":""ch6j2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:06 (42–43, 55): dxFeed Bookmap by S&C Staff"",""caption-linebreaks"":""Review: dxFeed Bookmap by S&C Staff
BOOKMAP
\n71 Copper 2A, New York, NY 10034
\nInternet: https://bookmap.dxfeed.com, https://bookmap.com
\nPhone: 917 708-8171
\nProduct: Market depth visualization trading platform that provides market transparency
\nPrice: Bookmap Global starts at $39/month; Bookmap Global Plus starts at $79/month; pricing for dxFeed is based on the exchange and whether the user is a professional or nonprofessional trader. Nonprofessional feeds per one exchange start at $49/month.
If traders were able to see what the algorithmic traders were doing and watch the evolution of the order book and order flow, wouldn’t they feel like more knowledgeable traders?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-42-43-55-dxfeed-bookmap-by-s-c-staff-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-42-43-55-dxfeed-bookmap-by-s-c-staff-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-42-43-55-dxfeed-bookmap-by-s-c-staff-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364qaby1,d,"{""minimum-quantity"":""1"",""path"":""ch6j2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:06 (44–45): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
THE CONTRARIAN TAKEAWAY & ALTERNATIVE THINKING
There are many reasons to develop reflective and responsive styles of thinking surrounding major topics of the day rather than simply accepting the most popular idea or automatically defaulting to the fringe due to personal bias. With widely used algorithms competing for eyeballs and driving content to users, it is even more necessary to be an independent thinker and to know how to effectively research ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-44-45-q-a-by-rob-friesen-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-44-45-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-44-45-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364trti4,d,"{""minimum-quantity"":""1"",""path"":""ch6j2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:06 (46–55): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Markos Katsanos’ article in this issue, “A Technical Method For Rating Stocks.” Here, we present the June 2018 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this is-sue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-46-55-traders-tips-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-46-55-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-46-55-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov366caeq,d,"{""minimum-quantity"":""1"",""path"":""ch6j2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:06 (60–61): Calculating Equity Risk Premium by Annukka Jokipii, Martti Luoma, & Petri Sahlström"",""caption-linebreaks"":""Calculating Equity Risk Premium by Annukka Jokipii, Martti Luoma, & Petri Sahlström
Any stock market–related decisions we make are based on events that are likely to take place over the next five, seven, or 10 years. But since we don’t know what will take place at a later time with certainty, how do we figure out if our in-vestments are worth the risk? Here’s one way to answer that question. All you need is some data and a spreadsheet.
Fundamental analysts often use equity valuation models to come up with a reason to invest in a stock. Several models exist and one of the key input variables in these models is the equity risk premium (ERP) ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-60-61-calculating-equity-risk-premium-by-annukka-jokipii-martti-luoma-petri-sahlstr-m-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-60-61-calculating-equity-risk-premium-by-annukka-jokipii-martti-luoma-petri-sahlstr-m-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-60-61-calculating-equity-risk-premium-by-annukka-jokipii-martti-luoma-petri-sahlstr-m-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov366bofo2,d,"{""minimum-quantity"":""1"",""path"":""ch6j2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:06 (62): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
Stock Charts For Dummies
Day Trading 101: From Understanding Risk Management And Creating Trade Plans To Recognizing Market Patterns And Using Automated Software, An Essential Primer In Modern Day Trading
The 100 Best Stocks To Buy In 2018
Smart Portfolios
Harriman’s New Book Of Investing Rules: The Dos And Don’ts Of The World’s Best Investors"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-62-books-for-traders-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-62-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-62-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36724in,d,"{""minimum-quantity"":""1"",""path"":""ch6j2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:06 (7, 24): Inverse ETF Breakouts by Ken Calhoun"",""caption-linebreaks"":""Inverse ETF Breakouts by Ken Calhoun
Find out how this trader applies breakout trading techniques in a falling market.
Whenever the stock market sells off, I always trade the inverse ETFs, which go up when the stock market drops. Having traded these for many years, I can tell you from my own experience that they require slightly different breakout entry strategies than do normal ETFs and stocks, due to their higher volatility ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-7-24-inverse-etf-breakouts-by-ken-calhoun-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-7-24-inverse-etf-breakouts-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-7-24-inverse-etf-breakouts-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov368teme,d,"{""minimum-quantity"":""1"",""path"":""ch6j2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:06 (8–14): A Technical Method For Rating Stocks by Markos Katsanos"",""caption-linebreaks"":""A Technical Method For Rating Stocks by Markos Katsanos
Is it possible to create a stock rating system using multiple indicators or other technical criteria? If so, how does it compare with analyst ratings?
Investors around the world move billions of dollars every day on advice from Wall Street research analysts. Most retail investors do not have the time or can’t be bothered to read the full stock report and rely solely on the bottom line: the stock rating ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-8-14-a-technical-method-for-rating-stocks-by-markos-katsanos-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-8-14-a-technical-method-for-rating-stocks-by-markos-katsanos-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-06-8-14-a-technical-method-for-rating-stocks-by-markos-katsanos-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36125vp,d,"{""minimum-quantity"":""1"",""path"":""ch7j2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:07 (12–19, 25): The V-Trade Part 5: Technical Analysis—Moving Average Support & Resistance And Volatility Bands by Sylvain Vervoort"",""caption-linebreaks"":""The V-Trade Part 5: Technical Analysis—Moving Average Support & Resistance And Volatility Bands by Sylvain Vervoort
In this fifth part of an ongoing series that outlines one trader’s comprehensive approach to trading, we look at the next technical analysis portion of the method—support & resistance and volatility bands.
Vervoort trading or the V-Trade method is a series of techniques I use to make manual and automatic buy & sell decisions, or a combination of both. This month, I’ll focus on active support & resistance with moving averages. I’ll also provide a customized indicator named SveVolatilityBand, which includes a volatility band and Bollinger Bands ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-12-19-25-the-v-trade-part-5-technical-analysis-moving-average-support-resistance-and-volatility-bands-by-sylvain-vervoort-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-12-19-25-the-v-trade-part-5-technical-analysis-moving-average-support-resistance-and-volatility-bands-by-sylvain-vervoort-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-12-19-25-the-v-trade-part-5-technical-analysis-moving-average-support-resistance-and-volatility-bands-by-sylvain-vervoort-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov362inse,d,"{""minimum-quantity"":""1"",""path"":""ch7j2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:07 (20–23): In Search Of The Best Trend by Perry J. Kaufman"",""caption-linebreaks"":""In Search Of The Best Trend by Perry J. Kaufman
There are so many ways to measure trends that it becomes difficult to identify which one to use. Here we compare five systems that each use a different method of determining trend, and we analyze the results to see which ones top the list.
Most of us who have been developing systems and trading for some time know the trend is a critical part of any success story, specifically macrotrends that track interest rate policy and its impact on other sectors. Our objective here is to find which trend method works best. To do that, we need to set some ground rules; otherwise, this task can quickly become unmanageably large ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-20-23-in-search-of-the-best-trend-by-perry-j-kaufman-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-20-23-in-search-of-the-best-trend-by-perry-j-kaufman-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-20-23-in-search-of-the-best-trend-by-perry-j-kaufman-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov362fufo,d,"{""minimum-quantity"":""1"",""path"":""ch7j2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:07 (24–25): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
HOW TO SPECULATE IN A BASKET OF COMMODITIES (PART 1 OF 2)
Is there a cheap, efficient, and convenient way to speculate in a basket of commodities?
Those seeking upside exposure to individual commodities or a basket of individual commodities can do so through the purchase of futures contracts in each of the desired products, but it is hardly an investment on autopilot. There are rollovers to deal with along with margin maintenance and of course risk management ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-24-25-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-24-25-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-24-25-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36239bu,d,"{""minimum-quantity"":""1"",""path"":""ch7j2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:07 (26–30, 39): Building Automated Strategies With Andrea Unger by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Building Automated Strategies With Andrea Unger by Jayanthi Gopalakrishnan
Andrea Unger began his career as a professional trader in 2001, first with covered warrants and then with futures and stocks, preferring a mechanical approach. A four-time winner of the World Cup Championships, he is CEO of Unger Trading S.r.l., a risk manager, strategy developer, educator, and author of the book Money Management (published in Italian and Chinese). He has an MS degree in mechanical engineering from the University of Milan and is a member of Mensa. He is an honorary member of SIAT (an Italian branch of the IFTA).
With a strong interest in helping other traders to develop profitable automated systems, he offers a blog with free articles and videos about trading systems at his website, UngerAcademy.com. The website also offers paid courses, including the Master The Code And Go Live Course for those wanting to learn about programming systems. His Trading Systems Supremacy course shares his personal approach to developing systems.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Andrea Unger on May 10, 2018 about what you need to know to start building your own automated strategies.
Andrea, can you tell us about your background and how you got interested in the financial markets?
\nI studied mechanical engineering and worked for several multinational companies. But I had an interest in the markets ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-26-30-39-building-automated-strategies-with-andrea-unger-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-26-30-39-building-automated-strategies-with-andrea-unger-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-26-30-39-building-automated-strategies-with-andrea-unger-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov363trve,d,"{""minimum-quantity"":""1"",""path"":""ch7j2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:07 (32–34): Trading Vertical Spreads For Income by Eric Kendall"",""caption-linebreaks"":""Trading Vertical Spreads For Income by Eric Kendall
We all want to make an income from the stock market. Here’s one way to accomplish this objective, and you don’t have to own or trade any stocks.
In any game of chance, the individual player who wishes to participate for income must know when the odds are in his favor or against him on each and every play. He can make an income if he plays only when he sees that the odds are in his favor. Blackjack players who know how to figure the mix of cards left to be dealt from observing carefully those already dealt can expect to enjoy a junket in Aruba and leave with some extra money in the bank ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-32-34-trading-vertical-spreads-for-income-by-eric-kendall-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-32-34-trading-vertical-spreads-for-income-by-eric-kendall-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-32-34-trading-vertical-spreads-for-income-by-eric-kendall-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36341ex,d,"{""minimum-quantity"":""1"",""path"":""ch7j2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:07 (35, 41): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
PORTFOLIO HEDGING WITH OPTIONS
I am concerned about the stock market. It has been showing weakness and I’m fearful a bear market may begin soon. At the same time I am hesitant to sell stocks from my portfolio. Is there a way I can hedge the value of my stock portfolio using options?
\nHedging an existing position or portfolio is one of the three primary uses for options (in addition to speculating on price direction and generating income). While hedging an individual stock is fairly straightforward, hedging a stock portfolio requires an investor to ask and answer a few key questions ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-35-41-explore-your-options-by-jay-kaeppel-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-35-41-explore-your-options-by-jay-kaeppel-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-35-41-explore-your-options-by-jay-kaeppel-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov363biet,d,"{""minimum-quantity"":""1"",""path"":""ch7j2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:07 (36–39): Biotech ETFs: A Slice Of Medical Science by Leslie N. Masonson"",""caption-linebreaks"":""Biotech ETFs: A Slice Of Medical Science by Leslie N. Masonson
Are you interested in learning more about using exchange traded funds (ETFs) in your trading? Leslie N. Masonson, an active ETF trader, is president of Cash Management Resources, a financial consulting firm that focuses on ETF strategies. He is the author of Buy—Don’t Hold: Investing With ETFs Using Relative Strength To Increase Returns With Less Risk; and All About Market Timing, as well as Day Trading On The Edge. His website is www.buydonthold.com, where he writes a weekly blog. To submit topics for future columns, reach him at lesmasonson@yahoo.com.
Buy & holders of biotech stocks have been well rewarded over the last 10 years; however, they needed an iron stomach to withstand the big drawdowns during corrections and bear market declines. Any major earnings miss or FDA disapprovals can easily result in a 25% decline or more in the stock price. That is why many investors select a biotech mutual fund or ETF to spread out the risk ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-36-39-biotech-etfs-a-slice-of-medical-science-by-leslie-n-masonson-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-36-39-biotech-etfs-a-slice-of-medical-science-by-leslie-n-masonson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-36-39-biotech-etfs-a-slice-of-medical-science-by-leslie-n-masonson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364data,d,"{""minimum-quantity"":""1"",""path"":""ch7j2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:07 (40–41): Daytrading Tall-Candle Breakouts by Ken Calhoun"",""caption-linebreaks"":""Daytrading Tall-Candle Breakouts by Ken Calhoun
Tall green candles are easy to spot on a chart, and entering above a tall candle’s high can set you up for a profitable breakout trade. Here’s how to do it.
Whenever you daytrade stocks, it is important to find charts that are likely to continue their upward move based on price action, volume, and momentum. Your goal should be to find price breakouts that are likely to keep rising after you enter, long enough to help you make a profitable trade ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-40-41-daytrading-tall-candle-breakouts-by-ken-calhoun-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-40-41-daytrading-tall-candle-breakouts-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-40-41-daytrading-tall-candle-breakouts-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364qaby2,d,"{""minimum-quantity"":""1"",""path"":""ch7j2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:07 (42–45): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
LEVERAGE: A REMARKABLE TOOL, USED WISELY
Many traders have focused on the pursuit of leverage as a vehicle to further their careers. Leverage by itself is only a tool, and a powerful tool at that. Wise use of this tool most likely boils down to position sizing rules or best practices ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-42-45-q-a-by-rob-friesen-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-42-45-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-42-45-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364bofo1,d,"{""minimum-quantity"":""1"",""path"":""ch7j2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:07 (46): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
Trading In Sync With Commodities: Introducing Astrology To Your Financial Toolbox
The End Of Indexing: Six Structural Mega-Trends That Threaten Passive Investing
The Geometry Of Wealth: How To Shape A Life Of Money And Meaning
Deep Value Investing: Finding Bargain Shares With Big Potential"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-46-books-for-traders-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-46-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-46-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364trti5,d,"{""minimum-quantity"":""1"",""path"":""ch7j2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:07 (48–55): Traders' Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders' Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is John Ehlers’ article in this issue, “The Deviation-Scaled Moving Average.” Here, we present the July 2018 Traders’ Tips code with possible implementations in various software. New this month is code from JuicyCharts.com.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this is-sue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-48-55-traders-tips-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-48-55-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-48-55-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov366roof,d,"{""minimum-quantity"":""1"",""path"":""ch7j2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:07 (60–62): The Role Of Evolutionary Psychology In Trading by Daniel J. Subach"",""caption-linebreaks"":""The Role Of Evolutionary Psychology In Trading by Daniel J. Subach
We can always learn and change and grow, but how much can we stretch ourselves, given the limitations we’ve inherited from our ancestors? How much is hardwired? We’ll examine it from a practical standpoint for investing and trading.
Ever wonder why you make the same mistakes over and over again when you trade? The reason may be a mentality that’s been ingrained since the Stone Age. So even though you may feel like you’re part of the modern world—you’ve got a smartphone and you use a digital assistant to remind you of appointments, or use it to set your thermostat before you come home, you still retain many traits from your ancestors ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-60-62-the-role-of-evolutionary-psychology-in-trading-by-daniel-j-subach-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-60-62-the-role-of-evolutionary-psychology-in-trading-by-daniel-j-subach-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-60-62-the-role-of-evolutionary-psychology-in-trading-by-daniel-j-subach-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov367leto2,d,"{""minimum-quantity"":""1"",""path"":""ch7j2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:07 (7): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
TRADING SPREADSHEET
Editor,
\nI am a fan of Tom Bulkowski. I have been following his work for quite some time now and enjoy learning about his trading perspective ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-7-letters-to-s-c-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-7-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-7-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov368demo,d,"{""minimum-quantity"":""1"",""path"":""ch7j2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:07 (8–11): The Deviation-Scaled Moving Average by John F. Ehlers"",""caption-linebreaks"":""The Deviation-Scaled Moving Average by John F. Ehlers
Moving averages have two characteristics—they lag and they smooth data. But there are different ways to tweak them. Here’s one way to make them more adaptive to current prices and make the smoothing heavier.
Adaptive moving averages are not new to technical analysis. If you’re familiar with adaptive techniques, you’ll know that most start with an exponential moving average (EMA). The EMA is a smoothing filter that takes a fraction of the current price and adds the complement of that fraction times the value of the EMA one bar ago ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-8-11-the-deviation-scaled-moving-average-by-john-f-ehlers-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-8-11-the-deviation-scaled-moving-average-by-john-f-ehlers-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-07-8-11-the-deviation-scaled-moving-average-by-john-f-ehlers-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov361vpa6,d,"{""minimum-quantity"":""1"",""path"":""ch8a2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:08 (16–24): The V-Trade Part 6: Technical Analysis—Divergence Indicators by Sylvain Vervoort"",""caption-linebreaks"":""The V-Trade Part 6: Technical Analysis—Divergence Indicators by Sylvain Vervoort
In this sixth part of a multipart series, we’ll continue with our look at one trader’s techniques for making both manual and automatic buy and sell decisions. We’ll also investigate the stochastic RSI indicator (SRSI) to identify divergences.
In several parts of this series, I discuss the technical analysis portions of my method (which I call the V-Trade) and explain all the techniques I apply to make manual and automatic buy and sell decisions, or a combination of both. Continuing with this focus on technical analysis here in part 6, I’ll introduce a stochastic RSI or SRSI indicator (SveStochRSI), which I mainly use to detect divergences between the indicator and price ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-16-24-the-v-trade-part-6-technical-analysis-divergence-indicators-by-sylvain-vervoort-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-16-24-the-v-trade-part-6-technical-analysis-divergence-indicators-by-sylvain-vervoort-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-16-24-the-v-trade-part-6-technical-analysis-divergence-indicators-by-sylvain-vervoort-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36261ac,d,"{""minimum-quantity"":""1"",""path"":""ch8a2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:08 (25, 61): Acceleration Ramp Breakouts by Ken Calhoun"",""caption-linebreaks"":""Acceleration Ramp Breakouts by Ken Calhoun
The acceleration ramp is a pattern that points to stocks that are building strong demand over the course of several weeks. Here’s how to look for this pattern.
Successful swing trading requires strong-trending charts with consistent breakout patterns. You may find that the easiest charts to swing trade are those with steady uptrends that slowly climb higher week after week. This is also true for position trading of up to several months ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-25-61-acceleration-ramp-breakouts-by-ken-calhoun-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-25-61-acceleration-ramp-breakouts-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-25-61-acceleration-ramp-breakouts-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov362dibo,d,"{""minimum-quantity"":""1"",""path"":""ch8a2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:08 (26–29): The Diving Board Trade by Thomas Bulkowski"",""caption-linebreaks"":""The Diving Board Trade by Thomas Bulkowski
What is a diving board pattern and can you profit from trading one?
In the winter of 2017, I was flush with cash, so I started looking for stocks to buy. While flipping through the weekly charts of the 515 stocks I follow, I noticed a recurring chart pattern, one I had not found before.
After researching the pattern, I remembered that this was not a new pattern after all. It was a diving board, a chart pattern I discovered back in 2010. I reviewed that research, traded on it, and I’ll elaborate on the pattern in this article with new findings ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-26-29-the-diving-board-trade-by-thomas-bulkowski-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-26-29-the-diving-board-trade-by-thomas-bulkowski-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-26-29-the-diving-board-trade-by-thomas-bulkowski-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36335se,d,"{""minimum-quantity"":""1"",""path"":""ch8a2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:08 (30–31, 35): Seven Forex Myths Dispelled by Solomon Chuama"",""caption-linebreaks"":""Seven Forex Myths Dispelled by Solomon Chuama
New traders often get attracted to the forex markets because of the potential to make great returns using a small amount of capital. But there is more that new traders should know about it. Here, we look at some of the common misconceptions about forex trading.
The foreign currency exchange market, known as forex, has been around since 1976 and has been electronically traded since 1990. I’ll start with a brief history. The gold standard exchange was implemented in 1876. The purpose was to back all paper currency with gold to stabilize world currencies by pegging them to gold’s price. The major shortcoming was that European countries didn’t have enough gold to support all the currencies they were printing to pay for large military projects ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-30-31-35-seven-forex-myths-dispelled-by-solomon-chuama-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-30-31-35-seven-forex-myths-dispelled-by-solomon-chuama-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-30-31-35-seven-forex-myths-dispelled-by-solomon-chuama-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov363inlo,d,"{""minimum-quantity"":""1"",""path"":""ch8a2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:08 (32–35): An In-Depth Look At Weekly Options by Koos van der Merwe"",""caption-linebreaks"":""An In-Depth Look At Weekly Options by Koos van der Merwe
If you’re hesitant about trading options, it’s best to try them slowly, one contract at a time.
“When it comes to trading options, I must admit that I was absolutely stupid.”
These are the words I used in the opening sentence of my article that appeared in this magazine last year, “Wrapping Your Brain Around Weekly Options.” I concluded the article by writing, “You don’t have to be a genius. With approximately $10,000 capital, I am making close to $2,000 per month selling weekly naked puts. Not bad for an options beginner.” ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-32-35-an-in-depth-look-at-weekly-options-by-koos-van-der-merwe-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-32-35-an-in-depth-look-at-weekly-options-by-koos-van-der-merwe-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-32-35-an-in-depth-look-at-weekly-options-by-koos-van-der-merwe-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36345sl,d,"{""minimum-quantity"":""1"",""path"":""ch8a2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:08 (36–40, 45): Sloping Upward With Tim Knight by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Sloping Upward With Tim Knight by Jayanthi Gopalakrishnan
Timothy Knight began his career writing books at the age of 16 and to date has written two dozen books about both computers and the financial markets. He began trading in 1987 and founded Prophet Financial Systems in 1992, which started as a historical financial data company, but when the Internet was introduced, it became a website on technical analysis, and its charting technologies were also licensed to brokerages. Knight sold Prophet Financial to Ameritrade (now TD Ameritrade) in early 2005. Since then, he founded SlopeOfHope.com, which started as a blog in 2005 but has grown to become a hub for traders who use charts as the basis for their trading ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-36-40-45-sloping-upward-with-tim-knight-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-36-40-45-sloping-upward-with-tim-knight-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-36-40-45-sloping-upward-with-tim-knight-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36447fu,d,"{""minimum-quantity"":""1"",""path"":""ch8a2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:08 (41, 47): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
HOW TO SPECULATE IN A BASKET OF COMMODITIES (PART 2 OF 2)
Is there a cheap, efficient, and convenient way to speculate in a basket of commodities?
Last month, I discussed the inefficiencies of commodity index ETFs and introduced the idea of trading the Bloomberg Commodity Index (BCI) futures (symbol AW) listed on the Chicago Board of Trade division of the CME Group ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-41-47-futures-for-you-by-carley-garner-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-41-47-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-41-47-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364maad,d,"{""minimum-quantity"":""1"",""path"":""ch8a2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:08 (42–45): MarketScope Advisor by Leslie N. Masonson"",""caption-linebreaks"":""MarketScope Advisor by Leslie N. Masonson
CFRA
\nOne New York Plaza, 34th Floor, New York, NY 10004
\nPhone: 800 220-0502
\nSupport: cservices@cfraresearch.com
\nInternet: advisor.marketscope.com
\nRequirements: Windows 8 or higher with Internet access
\nProduct: Subscription service providing independent information on sectors, stocks, ETFs, and mutual funds, with both fundamental and technical analysis tools.
\nPrice: Contact CFRA directly for pricing details for different packages. A free trial is available.
CFRA, a privately held firm founded in 1994, is an independent research firm that provides subscribers with analytical tools and metrics to help them assess their investments in stocks, bonds, mutual funds, sectors, industries, ETFs, and options. Their proprietary methodology combines fundamental equity research, forensic accounting, and technical analysis to pinpoint investments showing the most promise at any given time ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-42-45-marketscope-advisor-by-leslie-n-masonson-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-42-45-marketscope-advisor-by-leslie-n-masonson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-42-45-marketscope-advisor-by-leslie-n-masonson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364exyo2,d,"{""minimum-quantity"":""1"",""path"":""ch8a2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:08 (46–47): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
BULL CALL SPREADS FOR PARTICIPATING IN RALLIES
I think a particular high-priced stock (AAPL) will break out to the upside. My portfolio size does not allow me to buy 100 shares of the stock and even the call options are pretty expensive. I looked at trading a bull call spread to lower the cost but that position limits profit potential. Is there a way to participate in high-priced stocks even if my account is relatively small?
The short answer is “absolutely.” One of the great advantages of trading options is the ability to “craft” positions to meet a certain goal or set of criteria ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-46-47-explore-your-options-by-jay-kaeppel-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-46-47-explore-your-options-by-jay-kaeppel-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-46-47-explore-your-options-by-jay-kaeppel-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364trti6,d,"{""minimum-quantity"":""1"",""path"":""ch8a2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:08 (48–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Domenico D’Errico & Antonio Zaffino’s article in this issue, “Portfolio Strategy Based On Accumulation/Distribution.” Here, we present the August 2018 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this is-sue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-48-56-traders-tips-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-48-56-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-48-56-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov366inob,d,"{""minimum-quantity"":""1"",""path"":""ch8a2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:08 (60–61): Investing: An Objective-Based Primer by Gabriel Gonzalez"",""caption-linebreaks"":""Investing: An Objective-Based Primer by Gabriel Gonzalez
For those just starting out in the world of finance (long before reaching the world of technical analysis) or for the youngsters in your life, here is the first part of an ABC on investing.
Three things to consider in any investment plan are safety, income, and capital. One of my earliest memories of the concept of investing was from the 1984 movie Trading Places. Maybe it was that I was more into Jamie Lee Curtis than anything else about the movie, but still, the movie ultimately made investing seem like a fascinating activity. Ever since then, learning how to invest is something I’ve wanted to do. But the topic can be intimidating. The terminology alone can feel like taking an advanced course in, say, Egyptian opera writing … taught in Greek. The good news is I’m learning right along with you, and I’m going to try to make this as mentally ergonomic as possible ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-60-61-investing-an-objective-based-primer-by-gabriel-gonzalez-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-60-61-investing-an-objective-based-primer-by-gabriel-gonzalez-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-60-61-investing-an-objective-based-primer-by-gabriel-gonzalez-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov366qaby,d,"{""minimum-quantity"":""1"",""path"":""ch8a2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:08 (6–7): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
THE ODDS: USING STATISTICS IN TRADING
In previous columns here, I’ve talked about the trader’s need to have a valid reason to trade and to monitor the trade’s continued validity. Every trade is an educated bet without a payoff certainty ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-6-7-q-a-by-rob-friesen-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-6-7-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-6-7-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36829po,d,"{""minimum-quantity"":""1"",""path"":""ch8a2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:08 (8–15, 29): Portfolio Strategy Based On Accumulation/Distribution by Domenico D’Errico & Antonio Zaffino"",""caption-linebreaks"":""Portfolio Strategy Based On Accumulation/Distribution by Domenico D’Errico & Antonio Zaffino
Whether you are an individual trader or an asset manager, your main goal in reading a chart is to detect the intentions of major institutions, large operators, well-informed insiders, bankers and so on, so you can follow them. Here, we’ll build an automated stock portfolio strategy based on a cornerstone price analysis theory.
Dow theory principles have stood the test of time and they still apply to today’s markets. According to the theory, there are three market phases (Figure 1), and understanding this logic can help traders make sense of how price moves and how bull and bear markets are created ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-8-15-29-portfolio-strategy-based-on-accumulation-distribution-by-domenico-d-errico-antonio-zaffino-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-8-15-29-portfolio-strategy-based-on-accumulation-distribution-by-domenico-d-errico-antonio-zaffino-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-08-8-15-29-portfolio-strategy-based-on-accumulation-distribution-by-domenico-d-errico-antonio-zaffino-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov361vpa7,d,"{""minimum-quantity"":""1"",""path"":""ch9s2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:09 (12–20): The V-Trade Part 7: Technical Analysis—V-Wave Count by Sylvain Vervoort"",""caption-linebreaks"":""The V-Trade Part 7: Technical Analysis—V-Wave Count by Sylvain Vervoort
Counting waves in price charts doesn’t have to be complex. In this seventh part of a multipart series of articles, we consider a method that simplifies the art of counting waves so you can make more successful trades. Find out how.
If you have been following this series of articles on the V-Trade, you will know that my intention is to explain the various techniques I use to make trading decisions. In this article, which is the sixth part of the technical analysis portion of this series, I will introduce the V-wave count, which is a simplified method of counting waves based on the Elliott wave theory ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-12-20-the-v-trade-part-7-technical-analysis-v-wave-count-by-vitali-apirine-23.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-12-20-the-v-trade-part-7-technical-analysis-v-wave-count-by-sylvain-vervoort-3.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-12-20-the-v-trade-part-7-technical-analysis-v-wave-count-by-sylvain-vervoort-4.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov362trbe,d,"{""minimum-quantity"":""1"",""path"":""ch9s2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:09 (22–24): The Truth Behind PEG by Douglas Lyon, PhD"",""caption-linebreaks"":""The Truth Behind PEG by Douglas Lyon, PhD
The computation of the PEG ratio is so seemingly simple and yet is often reported in different ways, sometimes unbeknownst to the user. Let’s look at how PEG should be calculated and why.
To a pure technical analyst, the PEG ratio—P/E ratio over growth—may not come into play often. But for those who throw in some fun-damentals to their analysis, especially when screening stocks to trade, it may come as a surprise that the PEG is often misrepresented ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-22-24-the-truth-behind-peg-by-douglas-lyon-phd-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-22-24-the-truth-behind-peg-by-douglas-lyon-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-22-24-the-truth-behind-peg-by-douglas-lyon-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov362twcu,d,"{""minimum-quantity"":""1"",""path"":""ch9s2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:09 (26–27): Two-Day-High Cup Breakouts by Ken Calhoun"",""caption-linebreaks"":""Two-Day-High Cup Breakouts by Ken Calhoun
Bullish cup patterns often continue upward. Here are two technical entry signals to look for.
Finding strong breakouts often means knowing which specific patterns might attract new buyers, once price action has broken above prior resistance. Learning the details behind winning breakout technical analysis means you have to look for exceptional strength ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-26-27-two-day-high-cup-breakouts-by-ken-calhoun-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-26-27-two-day-high-cup-breakouts-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-26-27-two-day-high-cup-breakouts-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov362dobo,d,"{""minimum-quantity"":""1"",""path"":""ch9s2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:09 (28–31): Double Bottoms Revisited by Pawel Kosinski"",""caption-linebreaks"":""Double Bottoms Revisited by Pawel Kosinski
Chart patterns are often thought of as subjective, but there are ways to look at them objectively. Here, we evaluate the double-bottom pattern to see how reliable it is.
All traders know at least a little about chart patterns: double bottoms, double tops, flags, pennants, and so on. Chart patterns have been explored and documented in various books on the financial markets and trading, including the excellent books by Thomas Bulkowski, which have been mainstays in the field ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-28-31-double-bottoms-revisited-by-pawel-kosinski-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-28-31-double-bottoms-revisited-by-pawel-kosinski-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-28-31-double-bottoms-revisited-by-pawel-kosinski-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36337in,d,"{""minimum-quantity"":""1"",""path"":""ch9s2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:09 (32–35, 37): Interview: Travel The Trading World With Tomas Nesnidal by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Travel The Trading World With Tomas Nesnidal by Jayanthi Gopalakrishnan
Travel, eat, meditate, make money, and enjoy life. That’s how Tomas Nesnidal describes his life. And it’s a life many traders would covet. Nesnidal has been a full-time trader for over 11 years, specializing in automated algorithmic trading strategies. Although he has developed strategies for different trading styles, his affinity is for breakout trading systems and market internals. His personal blog at www.SystemsOnTheRoad.com contains some practical posts with tips, videos, and a free breakout strategy.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan communicated with Tomas Nesnidal via email in July 2018 to find out more about his breakout trading strategies.
Tomas, could you tell us about what got you interested in trading?
\nI am a European-based trader who trades the US markets. I was born in the Czech Republic but have been living and trading from the very south of Spain for about seven years now. My original professional background is in the movie industry (I graduated from a film school), but I found that my true passion is for the markets. I decided to trade to fulfill my two big dreams—to live on a sunny beach and to travel a lot ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-32-35-37-interview-travel-the-trading-world-with-tomas-nesnidal-by-jayanthi-gopalakrishnan-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-32-35-37-interview-travel-the-trading-world-with-tomas-nesnidal-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-32-35-37-interview-travel-the-trading-world-with-tomas-nesnidal-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov363fufo,d,"{""minimum-quantity"":""1"",""path"":""ch9s2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:09 (36–37): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
HEDGING WITH FUTURES & OPTIONS
What are the best ways producers and end users of commodities can use the futures and options markets to hedge their price risk?
Few speculators realize the futures markets were originally created as a means of providing a venue for commodity producers and end users to hedge their price risk ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-36-37-futures-for-you-by-carley-garner-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-36-37-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-36-37-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov363smgr,d,"{""minimum-quantity"":""1"",""path"":""ch9s2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:09 (38–41): Small-Cap Growth ETFs In The Spotlight by Leslie N. Masonson"",""caption-linebreaks"":""Small-Cap Growth ETFs In The Spotlight by Leslie N. Masonson
Are you interested in learning more about using exchange traded funds (ETFs) in your trading? Leslie N. Masonson, an active ETF trader, is president of Cash Management Resources, a financial consulting firm that focuses on ETF strategies. He is the author of Buy—Don’t Hold: Investing With ETFs Using Relative Strength To Increase Returns With Less Risk; and All About Market Timing, as well as Day Trading On The Edge. His website is www.buydonthold.com, where he writes a weekly blog. To submit topics for future columns, reach him at lesmasonson@yahoo.com.
Decades of stock market research have found that about 90% of investment returns are due to asset allocation. And investing a percentage of assets in small-cap stocks has been a rewarding strategy. According to Ibbotson SBBI, from 1926 through 2016, small-cap stocks have out-performed large-cap stocks by 2.1 percentage points a year—12.1% vs. 10.0%, and especially in a rising interest rate environment ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-38-41-small-cap-growth-etfs-in-the-spotlight-by-leslie-n-masonson-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-38-41-small-cap-growth-etfs-in-the-spotlight-by-leslie-n-masonson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-38-41-small-cap-growth-etfs-in-the-spotlight-by-leslie-n-masonson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364exyo3,d,"{""minimum-quantity"":""1"",""path"":""ch9s2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:09 (42–43): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
HEDGING WITH COLLARS FOR YOUR LONG POSITIONS
I am holding a stock with an upcoming earnings announcement. I hear talk of an earnings disappointment and the potential for the stock price to fall. But I don’t want to sell my stock and incur a capital gain. I know I can buy a put option to hedge but I don’t want to spend the money to pay the premium. Is there another alternative to hedging my stock position?
Absolutely. One strategy that is well suited for this situation is referred to as a collar. A collar involves holding shares of stock, selling a call option, and buying a put option ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-42-43-explore-your-options-by-jay-kaeppel-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-42-43-explore-your-options-by-jay-kaeppel-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-42-43-explore-your-options-by-jay-kaeppel-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364prre,d,"{""minimum-quantity"":""1"",""path"":""ch9s2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:09 (44–46): Product Review: SlopeOfHope.com by Karl Montevirgen"",""caption-linebreaks"":""Product Review: SlopeOfHope.com by Karl Montevirgen
SOCIALTRADE CORP.
\n555 Bryant Street, #711, Palo Alto, CA 94301
\nhttps://slopeofhope.com
\nProduct: Website providing a charting interface, blog posts, and social trading.
\nPrice: Many free features with email signup; Slope Plus: $49.95/month or $499.50/year.
Every era, when in full swing, is defined not only by its innovations, technologies, and productive output, but also by its forms of decadence: its repetitions, replications, and excesses. In today’s era of electronic trading, these qualities are evident in the plethora of online trading resources and technologies available ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-44-46-product-review-slopeofhope-com-by-karl-montevirgen-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-44-46-product-review-slopeofhope-com-by-karl-montevirgen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-44-46-product-review-slopeofhope-com-by-karl-montevirgen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364trti7,d,"{""minimum-quantity"":""1"",""path"":""ch9s2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:09 (48–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Vitali Apirine’s article in this issue, “Weekly & Daily Stochastics.” Here, we present the September 2018 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this is-sue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-48-56-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-48-56-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-48-56-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36647qa,d,"{""minimum-quantity"":""1"",""path"":""ch9s2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:09 (6, 47): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
SEASONALITY: A SEASON BEGINS WITH A REASON
The Wall Street community has long known about seasonal influences on the marketplace. One of the most impactful is the turn-of-the-month effect, or TOME. There have been numerous studies as to the cause of this event. Some researchers have exhausted the subject trying to get to the bottom of the TOME bump ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-6-47-q-a-by-rob-friesen-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-6-47-q-a-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-6-47-q-a-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov366opyo,d,"{""minimum-quantity"":""1"",""path"":""ch9s2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:09 (60–62): Optimize Your Mind For Analysis by Daniel J. Subach"",""caption-linebreaks"":""Optimize Your Mind For Analysis by Daniel J. Subach
What do self-confidence, classification, and gossip have to do with technical analysis? Let’s take a look at trading and investing from a psychology perspective to find out.
There’s a good reason technical analysis provides a solution for approaching the markets rationally instead of irrationally, and the field of psychology can help explain why. It turns out the reason goes far back into human history ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-60-62-optimize-your-mind-for-analysis-by-daniel-j-subach-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-60-62-optimize-your-mind-for-analysis-by-daniel-j-subach-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-60-62-optimize-your-mind-for-analysis-by-daniel-j-subach-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36747le,d,"{""minimum-quantity"":""1"",""path"":""ch9s2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:09 (7, 47): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
A TECHNICAL METHOD FOR RATING STOCKS
Editor,
\nThank you very much for Markos Katsanos’ June 2018 article in S&C, “A Technical Method For Rating Stocks.” It gave me great insight into riding the trend.
\nI have a few questions that I was hoping the author would answer for me ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-7-47-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-7-47-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-7-47-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36827we,d,"{""minimum-quantity"":""1"",""path"":""ch9s2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:09 (8–11, 27): Weekly & Daily Stochastics by Vitali Apirine"",""caption-linebreaks"":""Weekly & Daily Stochastics by Vitali Apirine
Indicators play a big role in a technical trader’s life. They act as a GPS to help you navigate around price movements. But there’s no one way to use them. Here’s how you can combine two stochastic oscillators and use them with moving averages and support/resistance levels to help identify corrections and trend reversals.
Technical analysts are familiar with George Lane’s stochastic oscillator. It is a momentum indicator that shows the location of the close relative to the high–low range over a set number of periods. The weekly & daily stochastic is different in that it shows the location of the close relative to the high–low range for two different periods. It uses the slow (that is, three-day smoothed) version of the stochastic oscillator in its calculation ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-8-11-27-weekly-daily-stochastics-by-vitali-apirine-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-8-11-27-weekly-daily-stochastics-by-vitali-apirine-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-09-8-11-27-weekly-daily-stochastics-by-vitali-apirine-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36133vp,d,"{""minimum-quantity"":""1"",""path"":""ch10o2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:10 (16–23, 33): The V-Trade Part 8: The Basic Trading Rules by Sylvain Vervoort"",""caption-linebreaks"":""The V-Trade Part 8: The Basic Trading Rules by Sylvain Vervoort
In this eighth part of a multipart series, we look at the V-Trade trading rules.
The objective of this series on the V-Trade is to explain the techniques I apply to make manual and automatic buy & sell decisions, or a combination of both.
Last month in part 7, I discussed the V-wave count, which is based on Elliott wave theory. This count can be applied to almost any move in the markets. In that article, I documented the rules for the basic wave counts. In reality, this count will likely be more complex with possible extensions in any of the basic waves ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18662.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-16-23-33-the-v-trade-part-8-the-basic-trading-rules-by-sylvain-vervoort-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-16-23-33-the-v-trade-part-8-the-basic-trading-rules-by-sylvain-vervoort-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov362etvs,d,"{""minimum-quantity"":""1"",""path"":""ch10o2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:10 (24–27): ETFs vs. Mutual Funds: Which Way To Go? by Cassandra Wang"",""caption-linebreaks"":""ETFs vs. Mutual Funds: Which Way To Go? by Cassandra Wang
Even short-term traders will have some investments they hold for the longer term. But even those longer-term investments need some monitoring from time to time. Here’s how you can apply a momentum strategy using technical analysis tools to help select mutual funds or ETFs to add to your portfolio.
Exchange-traded funds (ETFs) have become popular among investors for their flexibility and ability to be traded like a stock. The $476.1 billion cash inflow into US-listed ETFs in 2017 far exceeded the inflow of $287.5 billion in 2016. Because of the tax efficiency and low fees of ETFs, many investors tend to add ETFs instead of mutual funds to their investment portfolios, even though mutual funds have a much longer history and offer a similar diversification vehicle through active management ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20389.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-24-27-etfs-vs-mutual-funds-which-way-to-go-by-cassandra-wang-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-24-27-etfs-vs-mutual-funds-which-way-to-go-by-cassandra-wang-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36232qu,d,"{""minimum-quantity"":""1"",""path"":""ch10o2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:10 (28–29, 32): Quick-Scan: MarketClub by Barbara Star"",""caption-linebreaks"":""Quick-Scan: MarketClub by Barbara Star
MarketClubINO.com
\n228 Park Ave. South, Suite 320 New York, NY 10003-1502
\nPhone: 410 867-2100 or 800 538-7424
\nEmail: support@ino.com
\nInternet: www.MarketClub.com
\nProduct: Web-based trade-selection scanning platform with buy & sell signals for stocks, futures, forex, and mutual funds
\nRequirements: Internet access
\nMembership price: 30-day trial; $59/month; $150 quarterly; $449/year. An options feature is also available for an additional fee.
Its name may evoke visions of a chat room for traders, but in reality, MarketClub is an online subscription-based scan and trade selection website. A premium service of INO.com, the site tracks more than 300,000 tradable entities that encompass stocks, futures, indexes, mutual funds, and forex listed on US and Canadian exchanges ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20386.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-28-29-32-quick-scan-marketclub-by-barbara-star-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-28-29-32-quick-scan-marketclub-by-barbara-star-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov363onwo,d,"{""minimum-quantity"":""1"",""path"":""ch10o2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:10 (30–32): One-Day Wonder Trades by Robert J. Seifert"",""caption-linebreaks"":""One-Day Wonder Trades by Robert J. Seifert
Is there such a thing as a conservative one-day options trade that gives you an edge? Yes there is, and here is how professional options traders put it into action.
The existence of weekly options makes it possible to create weekly credit spreads, which in turn makes possible a specialty trade I call the one-day wonder trade. Want to find out more about it? Well, it combines the strength of a computer-generated opinion or advisory with an options strategy that I developed several years ago. The computer-generated opinion is used to provide the probable direction of the underlying stock. I apply this trading strategy to weekly options ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-30-32-one-day-wonder-trades-by-robert-j-seifert-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-30-32-one-day-wonder-trades-by-robert-j-seifert-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-30-32-one-day-wonder-trades-by-robert-j-seifert-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov363inwa,d,"{""minimum-quantity"":""1"",""path"":""ch10o2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:10 (34–37): Interview: Walking Forward With Dion Kurczek by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Walking Forward With Dion Kurczek by Jayanthi Gopalakrishnan
Dion Kurczek is a software developer and individual trader. Developing gaming for chess players in the early days of the Internet led him down the path of developing charting and backtesting programs for trading, after he discovered technical analysis and became interested in trading. In 2000, he created the Wealth-Lab backtesting platform, acquired by Fidelity Investments in 2004. He worked with Fidelity until 2017, enhancing and developing the platform. Since then, he has developed a cloud-based backtesting platform, Quantacula, and a Javascript-based charting and backtesting site, JuicyCharts.com. He is also an abstract artist and resides in Sarasota, FL.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Dion Kurczek on August 8, 2018 to find out more about why it’s important to him to offer traders a way to develop and test their own trading systems and ideas.
Tell us a little bit about yourself and how you got interested in the industry.
I was primarily, and still am, a software developer. That’s my main talent, which I recognized pretty early on. I was working with a company back in the late 1990s, in Vancouver, British Columbia, in Canada, named Grandmaster Technologies ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-34-37-interview-walking-forward-with-dion-kurczek-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-34-37-interview-walking-forward-with-dion-kurczek-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-34-37-interview-walking-forward-with-dion-kurczek-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36341fu,d,"{""minimum-quantity"":""1"",""path"":""ch10o2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:10 (38, 41): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
SIMULTANEOUSLY LONG & SHORT?
Why won’t my futures broker allow me to use a “hedging strategy” in which I am long and short a futures contract simultaneously?
I am asked this question often and am surprised at how many traders are interested in having equal and opposite positions in the exact same futures contract. The reality is, a trader who is both long and short a futures contract is simply “flat” the market ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20383.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-38-41-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-38-41-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364qaby3,d,"{""minimum-quantity"":""1"",""path"":""ch10o2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:10 (40–41): Q&A by Rob Friesen"",""caption-linebreaks"":""Q&A by Rob Friesen
OCTOBER EQUALS OPPORTUNITY
While October is synonymous with risk, opportunity favors the bold and informed. What do most traders think about October’s typical market activity? Most thoughts run toward, “Beware of potential market crashes,” and “Volatility reigns supreme.”
Let’s add a few more items to this conversation about the month of October ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20377.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-40-41-q-a-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-40-41-q-a-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364exyo4,d,"{""minimum-quantity"":""1"",""path"":""ch10o2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:10 (42–43): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
WRITING COVERED CALLS AGAINST STOCK PORTFOLIO
I keep reading about the potential to generate income from my stock portfolio by writing covered calls against the stocks I hold. But I am not sure of the best way to go about trying to do so. Are there any rules that might be helpful?
There’re a lot of rules and guidelines that can be helpful. But let me start by stating what I call “the great irony of option trading” and it goes like this: The best thing about option trading is also the worst thing about option trading ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20374.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-42-43-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-42-43-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364tris,d,"{""minimum-quantity"":""1"",""path"":""ch10o2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:10 (44–46): The Trend Is Your Friend by Bruce Ross"",""caption-linebreaks"":""The Trend Is Your Friend by Bruce Ross
All trends aren’t created equal. How do you know if a trend is truly your friend? Here are a couple of pointers that’ll help you have a long and sustained relationship with the trend.
In the stock trading world, we’ve all heard the saying “The trend is your friend.” But that rule of thumb raises some questions ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20371.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-44-46-the-trend-is-your-friend-by-bruce-ross-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-44-46-the-trend-is-your-friend-by-bruce-ross-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364trti8,d,"{""minimum-quantity"":""1"",""path"":""ch10o2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:10 (48–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is John Ehlers’ article in this issue, “Probability—Probably A Good Thing To Know.” Here, we present the October 2018 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this is-sue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18686.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-48-56-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-48-56-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36633le,d,"{""minimum-quantity"":""1"",""path"":""ch10o2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:10 (6, 33): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
ERRATA: THE V-TRADE, PART 6
Editor,
\nWhen reading part 6 of Sylvain Vervoort’s series on the V-Trade in the August 2018 issue, I was a little irritated when I read the text on page 17 referring to positive divergence in Figure 2. Is it possible that Figures 2 and 5 were mistakenly exchanged, since the author writes that price is going down but in Figure 2 price is going up?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-6-33-letters-to-s-c-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-6-33-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-6-33-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov366sais,d,"{""minimum-quantity"":""1"",""path"":""ch10o2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:10 (60–61): Safety Is More Than A Dance by Gabriel Gonzalez"",""caption-linebreaks"":""Safety Is More Than A Dance by Gabriel Gonzalez
Is there such a thing as safety when it comes to investing or trading? Let’s find out.
For fixed-income earners, safety-based investments are ideal and tend to be the most stable in terms of payout. But they also tend to pay back the least. When you think of safety-based investment vehicles, you think treasury bills, notes, government bonds, certificates of deposit, commercial paper, and bankers’ acceptance slips. These are commonly known as debt securities ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-60-61-safety-is-more-than-a-dance-by-gabriel-gonzalez-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-60-61-safety-is-more-than-a-dance-by-gabriel-gonzalez-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-60-61-safety-is-more-than-a-dance-by-gabriel-gonzalez-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov366bofo3,d,"{""minimum-quantity"":""1"",""path"":""ch10o2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:10 (62): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
Silicon Valley Babble On
The WealthTech Book
Review Of Financial Economics
Engines That Move Markets: Technology Investing From Railroads To The Internet And Beyond"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18683.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-62-books-for-traders-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-62-books-for-traders-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36746in,d,"{""minimum-quantity"":""1"",""path"":""ch10o2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:10 (7, 46): Inside-Range Gap Breakouts by Ken Calhoun"",""caption-linebreaks"":""Inside-Range Gap Breakouts by Ken Calhoun
They may not be your traditional gaps, but they can end up with breakouts that are just as big as or bigger than some of the more popular type of gaps. Discover how to use these gaps in your trading.
Trading gaps is a long-time favorite strategy for active day and swing traders. In this month’s column, I will show you a new strategy for trading gaps that begin inside the previous day’s trading range ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18674.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-7-46-inside-range-gap-breakouts-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-7-46-inside-range-gap-breakouts-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov368prgo1,d,"{""minimum-quantity"":""1"",""path"":""faarfr2010"",""ysw-page-title"":""Stocks & Commodities V. 36:10 (8–14): Probability—Probably A Good Thing To Know by John F. Ehlers"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-21827.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-8-14-probability-probably-a-good-thing-to-know-by-john-f-ehlers-7.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-8-14-probability-probably-a-good-thing-to-know-by-john-f-ehlers-8.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov368prgo,d,"{""minimum-quantity"":""1"",""path"":""ch10o2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:10 (8–14): Probability—Probably A Good Thing To Know by John F. Ehlers"",""caption-linebreaks"":""Probability—Probably A Good Thing To Know by John F. Ehlers
The idea of reversion to the mean is one that traders tend to take for granted. Can you confidently assume all indicators subscribe to the normal probability distribution? Here, we measure the probability distribution of a few indicators to determine if they can be used as part of your reversion-to-the-mean trading strategy.
Swing trading, or reversion to the mean, is a popular trading style mainly because it is a strategy that typically yields a relatively high percent of winning trades. The idea behind it is that if prices have swung far enough from their mean price, there is high probability that price will swing back to the mean value ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18665.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-8-14-probability-probably-a-good-thing-to-know-by-john-f-ehlers-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-10-8-14-probability-probably-a-good-thing-to-know-by-john-f-ehlers-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36136vp,d,"{""minimum-quantity"":""1"",""path"":""ch11n2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:11 (14–23, 36): The V-Trade Part 9: Trading Examples by Sylvain Vervoort"",""caption-linebreaks"":""The V-Trade Part 9: Trading Examples by Sylvain Vervoort
In this ninth part of a multipart series, we look at some example trades using the V-Trade trading rules.
My objective of the V-Trade article series is to explain the techniques I apply to make manual and automatic buy & sell decisions, or a combination of both. But before I move on to the V-Trade tools available in the expert system, I want you to use what you have learned in the technical analysis part of this series and practice the V-Trade by applying the V-Trade buy/sell rules ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18747.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-11-14-23-36-the-v-trade-part-9-trading-examples-by-sylvain-vervoort-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-11-14-23-36-the-v-trade-part-9-trading-examples-by-sylvain-vervoort-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov362opri,d,"{""minimum-quantity"":""1"",""path"":""ch11n2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:11 (24–26): The Options Risk Curve Part 1 by John A. Sarkett"",""caption-linebreaks"":""The Options Risk Curve Part 1 by John A. Sarkett
If you’ve tried to make profits out of option decay, you may have found yourself waiting patiently to eek out even a bit of profit. Find out what some pros have to say about this.
You are sitting there admiring your freshly executed, income-generating options strategy. What a beau-tiful risk curve.
You have positive theta (options decay) coming your way from one or more of the following: calendars, butterflies, short calls, short puts, short verticals, short strangles, or short straddles.
Your brokerage platform’s “risk profile” tells you to expect a significant markup in your profit & loss (P/L) tomorrow. And an even bigger amount the next day ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18750.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-11-24-26-the-options-risk-curve-part-1-by-john-a-sarkett-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-11-24-26-the-options-risk-curve-part-1-by-john-a-sarkett-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov3628336,d,"{""minimum-quantity"":""1"",""path"":""ch11n2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:11 (28 –31, 36): Diamonds Are A Trader’s Best Friend by Igor R. Toshchakov"",""caption-linebreaks"":""Diamonds Are A Trader’s Best Friend by Igor R. Toshchakov
The diamond pattern is a classic chart formation yet it is often misunderstood and underestimated. Here’s a deep dive into diamonds.
Dozens or perhaps even hundreds of books have been written and published over the last several decades depicting classic technical analysis patterns and their practical application for trading in various financial markets. Despite such a large variety of reading choices and of what seems like plenty of useful information readily available for market practitioners of any kind, those books and other sources of information are often full of misconceptions and factual errors ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18753.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-11-28-31-36-diamonds-are-a-trader-s-best-friend-by-igor-r-toshchakov-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-11-28-31-36-diamonds-are-a-trader-s-best-friend-by-igor-r-toshchakov-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov363intr,d,"{""minimum-quantity"":""1"",""path"":""ch11n2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:11 (32–35): Interview: Trading The Headlines With Kathy Lien by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Trading The Headlines With Kathy Lien by Jayanthi Gopalakrishnan
Kathy Lien is managing director of FX Strategy for BK Asset Management and cofounder of BKForex.com. Lien has more than 19 years of experience in the financial markets with a specific focus on G20 currencies. Her career started at JPMorgan Chase, where she worked on the interbank FX trading desk making markets in foreign exchange and later in the cross-markets proprietary trad-ing group where she traded FX spot, options, interest rate derivatives, bonds, equities, and futures. In 2003, she joined FXCM and started DailyFX.com, a leading online foreign exchange research portal. In 2008, Lien joined Global Futures & Forex as director of currency research, where she provided research and analysis to clients and managed a global foreign exchange analysis team. As an expert on G20 currencies, Lien is often quoted in The Wall Street Journal, Reuters, Bloomberg, and other leading news publications. She also appears regularly on CNBC and on Sky Business. Her extensive experience in developing trading strategies using cross-markets analysis and her edge in predicting economic surprises are key components of BK’s analytical techniques.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Kathy Lien on September 18, 2018 about what current events are affecting the markets.
Kathy, the last time we spoke to you was in July 2012. A lot has happened since then, but more important, there’s a lot going on globally—the tariffs, Brexit, Canada-US trade relations. In your view, how do these events impact the currency markets?
\nFirst and foremost, there’s a significant amount of headline risk in the currency markets these days. We’ve seen volatility increase significantly and you can translate that into a lot of unexpected intraday increases in trading ranges and general volatility. So that’s the new norm that a lot of investors have to adjust to, which is that stops need to be wider as a result of all these headline risks ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20368.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-11-32-35-interview-trading-the-headlines-with-kathy-lien-by-jayanthi-gopalakrishnan-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-11-32-35-interview-trading-the-headlines-with-kathy-lien-by-jayanthi-gopalakrishnan-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36347ti,d,"{""minimum-quantity"":""1"",""path"":""ch11n2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:11 (38–41, 47): Timing Consumer Staples & Discretionary ETFs by Leslie N. Masonson"",""caption-linebreaks"":""Timing Consumer Staples & Discretionary ETFs by Leslie N. Masonson
How do you know when to switch from an offensive to a defensive sector? This look at two ETF sectors, consumer staples and discretionary, could provide some clues.
As they say in football, defense is as important as offense, if you expect to have a winning season. Similarly, investors need to know when to play defense to protect their principal from decaying during a major market decline, and swing or position traders need to know when to buy or sell to make consistent market profits ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20362.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-11-38-41-47-timing-consumer-staples-discretionary-etfs-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-11-38-41-47-timing-consumer-staples-discretionary-etfs-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36445fu,d,"{""minimum-quantity"":""1"",""path"":""ch11n2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:11 (42, 45): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
WHAT IS “FIRST NOTICE DAY”?
What exactly is “first notice day” and why does my broker require I offset positions ahead of it?
Although most futures market participants are speculators who hope to take advantage of price changes without the hassle of ever making or taking delivery of the underlying commodity, each futures contract represents that exact process. At least this is true of futures that are written against deliverable commodities such as corn, wheat, and soybeans ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20356.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-11-42-45-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-11-42-45-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364exyo5,d,"{""minimum-quantity"":""1"",""path"":""ch11n2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:11 (44–45): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
WHAT ARE THE GREEKS AND WHY DO THEY MATTER?
I’m learning more and more about options trading, but I keep hearing that I have to learn “the greeks.” I’ve tried to, but they are still “Greek” to me. Can you help me understand what the option greeks are and why they matter?
Absolutely. It is important to know the purpose of greek values. In a nutshell, greek values give you information regarding how much or how little the value of a given option or option position will change based on changes in the underlying security’s price, volatility and the passage of time ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20350.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-11-44-45-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-11-44-45-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364trpe,d,"{""minimum-quantity"":""1"",""path"":""ch11n2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:11 (47–47): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
SO WHAT’S NEW?
There is nothing new under the sun.
I have grown weary of all the hype, buzz, defenders of opinions rather than of empirical evidence, disrupters who disrupt for disruption’s sake, innovators who have no real innovation, “hodlers” crying in the crypto wilderness ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20456.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-11-47-47-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-11-47-47-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364trti9,d,"{""minimum-quantity"":""1"",""path"":""ch11n2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:11 (48–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Markos Katsanos’ article in this issue, “The Stiffness Indicator.” Here, we present the November 2018 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this is-sue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20462.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-11-48-56-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-11-48-56-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov366leto,d,"{""minimum-quantity"":""1"",""path"":""ch11n2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:11 (6): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
REVISITING DOUBLE BOTTOMS
Editor,
\nI enjoy articles most when I learn something, and I learned from Pawel Kosinski’s September 2018 article “Double Bot-toms Revisited.”
I used my double bottom data (3,388 double bottoms found manually in 1,080 stocks, some of which no longer trade, from 1991 to 2018). My results show no performance difference for the bottom-to-bottom price variation or volume, but do show that tall patterns perform substantially better than short ones (using the median height-to-breakout price as the boundary between short and tall) ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-11-6-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-11-6-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-11-6-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov366dewh,d,"{""minimum-quantity"":""1"",""path"":""ch11n2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:11 (60–61): Decision-Making: Why Is It So Difficult? by Claudio Demb"",""caption-linebreaks"":""Decision-Making: Why Is It So Difficult? by Claudio Demb
The answer may be simpler than it seems. Here’s what you should be doing to make trading decisions less stressful.
Whether we like it or not, we have to make decisions all the time. Some decisions are easy and some are difficult. When it comes to trading, decision-making is a skill that you must have under your belt. And even then, it can still present a challenge. I’ll take a closer look at what causes the discomfort in it and what to do about it ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20395.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-11-60-61-decision-making-why-is-it-so-difficult-by-claudio-demb-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-11-60-61-decision-making-why-is-it-so-difficult-by-claudio-demb-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov366bofo4,d,"{""minimum-quantity"":""1"",""path"":""ch11n2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:11 (62): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
The Meaningful Money Handbook
The Naked Trader’s Guide To Spread Betting: How To Make Money From Shares In Up Or Down Markets, 2d. ed.
Financial Planning Review: Inaugural Issue
Shares Made Simple: A Beginner’s Guide To The Stock Market, 3d ed.
Figures To Watch: In Gauging Market Turning Points"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20411.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-11-62-books-for-traders-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-11-62-books-for-traders-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36756wi,d,"{""minimum-quantity"":""1"",""path"":""ch11n2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:11 (7, 56): Wide-Range Chart Breakouts by Ken Calhoun"",""caption-linebreaks"":""Wide-Range Chart Breakouts by Ken Calhoun
Skip the narrow, choppy trading ranges and look for a chart with enough range to have some momentum behind it.
One of the most important considerations you should take into account when it comes to stock selection is volatility, as measured by the range of the chart you are trading. There are many reasons to give preference to trading charts with wide ranges, including profit potential, reduced risk of false breakouts, and the opportunity to scale in to winning trades more easily ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-11-7-56-wide-range-chart-breakouts-by-ken-calhoun-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-11-7-56-wide-range-chart-breakouts-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-11-7-56-wide-range-chart-breakouts-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov368stin,d,"{""minimum-quantity"":""1"",""path"":""ch11n2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:11 (8–13): The Stiffness Indicator by Markos Katsanos"",""caption-linebreaks"":""The Stiffness Indicator by Markos Katsanos
Find out how stiff your stocks are, or identify the next FAANG stock with this new indicator.
The FAANG acronym, standing for those well-known companies Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), and Alphabet (GOOGL), may be familiar to you. Over the past five years, the FAANG five have returned 42.7% annualized compared with a 10.3% annualized gain of the Standard & Poor’s 500 stock index. In fact, only 20 stocks—or four percent of companies listed on the S&P 500—constitute about 70% of the index’s return ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18741.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-11-8-13-the-stiffness-indicator-by-markos-katsanos-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-11-8-13-the-stiffness-indicator-by-markos-katsanos-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36121te,d,"{""minimum-quantity"":""1"",""path"":""ch12d2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:12 (14–16, 21): Testing The Engulfing Bullish Pattern by Pawel Kosinski"",""caption-linebreaks"":""Testing The Engulfing Bullish Pattern by Pawel Kosinski
Identifying chart patterns is often subjective. Is there a way to objectively backtest chart patterns? It can be a challenge but here’s one way to do it.
A necessary component of backtesting trading strategies is to have well-defined entries and exits. For Japanese candlesticks like the engulfing bullish pattern, exits aren’t really specified—traders define them in different ways. As an example, you could look for a resistance well above a potential entry price or sell the position if a bearish price action occurs. This is what makes backtesting a challenge ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20283.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-12-14-16-21-testing-the-engulfing-bullish-pattern-by-pawel-kosinski-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-12-14-16-21-testing-the-engulfing-bullish-pattern-by-pawel-kosinski-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov361opri,d,"{""minimum-quantity"":""1"",""path"":""ch12d2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:12 (18–21): The Options Risk Curve Part 2 by John A. Sarkett"",""caption-linebreaks"":""The Options Risk Curve Part 2 by John A. Sarkett
Your beautiful risk curve didn’t provide you with the beautiful profits it seemed to promise on day one. Why? We asked the experts. In part 1, we covered nine of those 12 reasons. Here, we look at the next three.
To recap from part 1, our options experts gave the following nine reasons for not seeing the profits you expected ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18575.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-12-18-21-the-options-risk-curve-part-2-by-john-a-sarkett-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-12-18-21-the-options-risk-curve-part-2-by-john-a-sarkett-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov362howm,d,"{""minimum-quantity"":""1"",""path"":""ch12d2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:12 (22–26): How Market Psychology Works For Traders by Daryl Guppy"",""caption-linebreaks"":""How Market Psychology Works For Traders by Daryl Guppy
What’s the first thought that goes through your mind after you enter a trade? For most traders, it’s “how much of a profit can I make?”
Formally or informally, traders set an exit target designed to lock in a profit after they enter a trade. This single decision encapsulates the motivation for market involvement. It is this calculation that lies at the heart of market psychology ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18572.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-12-22-26-how-market-psychology-works-for-traders-by-daryl-guppy-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-12-22-26-how-market-psychology-works-for-traders-by-daryl-guppy-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36241ho,d,"{""minimum-quantity"":""1"",""path"":""ch12d2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:12 (28–29, 41): How Averaging Down Could Hurt You by John Chapman"",""caption-linebreaks"":""How Averaging Down Could Hurt You by John Chapman
Averaging down is something many traders turn to. Why? Because it promises quick relief from painful losses. The temptation can be almost irresistible. Here are some steps you can take to combat it.
Traders face a host of emotional pitfalls, but the biggest is surely the dreaded averaging down (AD). This one has probably wiped out more traders than war, famine, and pestilence combined. Most traders, professionals and amateurs, are aware of its reputation, yet it still gets them. And traders aren’t its only victims. Everybody is familiar with doubling down or throwing good money after bad ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18569.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-12-28-29-41-how-averaging-down-could-hurt-you-by-john-chapman-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-12-28-29-41-how-averaging-down-could-hurt-you-by-john-chapman-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36362bu,d,"{""minimum-quantity"":""1"",""path"":""ch12d2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:12 (30–35, 62): Build Your Trading Skills: An Interview With Alex Spiroglou by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Build Your Trading Skills: An Interview With Alex Spiroglou by Jayanthi Gopalakrishnan
Although his interest in the markets started much earlier, Alex Spiroglou began his trading career 20 years ago and it changed his life forever. Since then he has earned a long list of accomplishments and designations including the CFTe from the International Federation of Technical Analysts; the Diploma of Technical Analysis from the Australian Technical Analysts Association; the Investment Management Certificate from the UK Society of Investment Professionals; a market maker/trader license from the Athens Derivative Exchange; and the investment consultant license from the Hellenic Capital Markets Commission. He is the founder and managing director of Trading Training & Development.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Alex Spiroglou on October 25, 2018 about how to develop skills to become a professional trader.
Alex, could you tell us about yourself and how you got interested in technical analysis and trading?
\nFirst of all, I would like to thank you for the opportunity to do this interview. This is really special to me because October 2018 marks 20 years since I got into the industry. So it’s sort of an anniversary interview for me ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18566.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-12-30-35-62-build-your-trading-skills-an-interview-with-alex-spiroglou-by-jayanthi-gopalakrishnan-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-12-30-35-62-build-your-trading-skills-an-interview-with-alex-spiroglou-by-jayanthi-gopalakrishnan-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36341fu1,d,"{""minimum-quantity"":""1"",""path"":""ch12d2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:12 (36, 41): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
STOCK DIVIDEND INCOME
There are ETFs that offer stock dividend income without price risk. How can an individual investor construct such a portfolio using the futures markets?
With the stock market near all-time highs as I write this, it is a reasonable time to consider protecting a stock portfolio ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18554.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-12-36-41-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-12-36-41-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov363bofo,d,"{""minimum-quantity"":""1"",""path"":""ch12d2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:12 (37): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
\nThe following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
Capitalism In America: A History
The Behavioral Investor
The Work Of The New York Stock Exchange In The Panic Of 1929
The Story of Kelsey’s Keys"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18551.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-12-37-books-for-traders-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-12-37-books-for-traders-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov363quca,d,"{""minimum-quantity"":""1"",""path"":""ch12d2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:12 (38–40): Quick-Scan: Candle Profit System 2.0 by Barbara Star"",""caption-linebreaks"":""Quick-Scan: Candle Profit System 2.0 by Barbara Star
CANDLE PROFIT SYSTEM 2.0
\nMETASTOCK
\n4548 S. Atherton Drive, Ste. 200, Salt Lake City, UT 84123
\nTelephone: 800 882-3040
\nEmail: www.MetaStock.com/saleschat
\nRequirements: MetaStock Version 13 or higher, Windows XP or higher
\nProduct: MetaStock add-on for Steve Bigalow candlestick trading patterns
\nPrice: $499 one-time fee with 30-day money-back guarantee.
The Candle Profit System (CPS), a MetaStock add-on, contains the patterns and indicators that Stephen Bigalow uses as part of his trading method ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18548.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-12-38-40-quick-scan-candle-profit-system-2-0-by-barbara-star-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-12-38-40-quick-scan-candle-profit-system-2-0-by-barbara-star-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364qutc,d,"{""minimum-quantity"":""1"",""path"":""ch12d2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:12 (42–43): Quick-Scan: TC2000 Version 18 by James E. Rich"",""caption-linebreaks"":""Quick-Scan: TC2000 Version 18 by James E. Rich
TC2000 VERSION 18
\nWORDEN BROTHERS, INC.
\nPO Box 1139Wilmington, NC 28402
\nTelephone: 800 776-4940
\nInternational: 919 408-0542
\nEmail: support@TC2000.com
\nInternet: www.TC2000.com
\nProduct: Stock market charting and analysis software
\nRequirements: Windows-based PC, or Mac with Parallels Desktop
\nPrice: Basic software and data services start at $9.99/month for Silver edition; $29.99/month for TC2000 Gold; $89.98/month for Platinum.
Worden Brothers’ new TC2000 Version 18 software adds powerful stock and option analysis capabilities that provide almost instantaneous screening capabilities ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18545.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-12-42-43-quick-scan-tc2000-version-18-by-james-e-rich-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-12-42-43-quick-scan-tc2000-version-18-by-james-e-rich-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364exyo6,d,"{""minimum-quantity"":""1"",""path"":""ch12d2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:12 (44–45): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
HOW TO POSITION A TRADE USING A CALENDAR SPREAD (PART 1)
I like the idea of using calendar spreads to take advantage of time decay and/or trading ranges. Unfortunately, it seems like every time I put one on, the underlying security makes a big move and I end up with a loss. Any suggestions?
The keys to successfully utilizing any option strategy are: a) understanding “what makes it tick” b) putting as many factors in your favor as possible when initiating the trade, and c) a little bit of cooperation from the underlying security ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20313.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-12-44-45-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-12-44-45-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364trti10,d,"{""minimum-quantity"":""1"",""path"":""ch12d2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:12 (46–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Sylvain Vervoort’s article in the May 2018 issue, “The V-Trade, Part 3: Technical Analysis—Fibonacci Projections And Daily Pivots.” Here, we present the December 2018 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this is-sue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20310.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-12-46-56-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-12-46-56-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov366leto1,d,"{""minimum-quantity"":""1"",""path"":""ch12d2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:12 (6): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
STIFFNESS INDICATOR AND INDICATORS FOR ESIGNAL
Editor,
\nI read Markos Katsanos’s article in the November 2018 issue on the stiffness indicator—well done! It looks good, especially in long-term trends.I was wondering if the author had other helpful indicators written for other software such as eSignal, especially the Sperandeo technique and for volatility analysis.
\nMichalis TheMelis
\nVolos, Greece"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20292.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-12-6-letters-to-s-c-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-12-6-letters-to-s-c-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov366trpe,d,"{""minimum-quantity"":""1"",""path"":""ch12d2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:12 (60–61): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
BULL VS. BEAR
When I was young, I enjoyed the antics of Spy vs. Spy, originally created by Prohias and featured in Mad Magazine. For those not familiar with the characters, they were identical (except one was white and one black), with long beaks, wide-brimmed hats, and overcoats ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20307.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-12-60-61-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-12-60-61-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36741du,d,"{""minimum-quantity"":""1"",""path"":""ch12d2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:12 (7, 41): Dual-Candle Momentum Breakouts by Ken Calhoun"",""caption-linebreaks"":""Dual-Candle Momentum Breakouts by Ken Calhoun
Green candles in this scenario can be a sign of momentum. Here’s how to incorporate them into your breakout trading.
When it comes to trading breakouts successfully, one of the most important technical considerations is to find charts with increasing price-action momentum. Traders will typically look at the trend strength and duration to help determine the likelihood of a potential trade being profitable ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20289.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-12-7-41-dual-candle-momentum-breakouts-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-12-7-41-dual-candle-momentum-breakouts-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov368idhi,d,"{""minimum-quantity"":""1"",""path"":""ch12d2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:12 (8–12): Identifying High-Probability Buy Signals by François Picard, MS, & Edmond Miresco, PhD"",""caption-linebreaks"":""Identifying High-Probability Buy Signals by François Picard, MS, & Edmond Miresco, PhD
It’s rare but possible to generate profits with 97.5% probability of success. We can achieve this by adapting some industrial engineering tools, like Six Sigma, to the field of technical analysis. Here, we look at one approach you can use to take advantage of these profitable occasions.
One of the many interesting aspects of technical analysis is the ability to apply mathematical tools and techniques from other disciplines to investing. In this article, we propose an innovative avenue based on industrial engineering tools to predict stock market movements and make investment decisions. We use the Six Sigma methodology, a technique used mainly in manufacturing environments, to determine if a given process is (or isn’t) statistically in control, according to some specific patterns ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20286.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-12-8-12-identifying-high-probability-buy-signals-by-fran-ois-picard-ms-edmond-miresco-phd-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-12-8-12-identifying-high-probability-buy-signals-by-fran-ois-picard-ms-edmond-miresco-phd-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36142st,d,"{""minimum-quantity"":""1"",""path"":""ch13bis206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:13 (12–14, 42): Strong Bullish & Bearish Candles by Azeez Mustapha"",""caption-linebreaks"":""Strong Bullish & Bearish Candles by Azeez Mustapha
In any given trading day, bulls and bears battle it out. Even if a trend is generally bullish, there’ll still be some selling going on. The reverse applies to a bearish trend. How can you get a sense of who is winning the battle at any given moment? Some candlestick patterns reveal this information better than others. Here are some to consider.
A trending or high-volatility market is a more favorable environment for making profits. On the other hand, if the market is in equilibrium or has low volatility, it can be difficult to make money. As an astute trader, you would rather ignore low-volatility markets and thrive in high-volatility markets. But even in high-volatility or trending markets, you still have to work hard to find trading opportunities. In this article, I’ll discuss candlestick patterns that can help you identify trading opportunities and a strategy you can use to play such candlesticks ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-13-12-14-42-strong-bullish-bearish-candles-by-azeez-mustapha-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-13-12-14-42-strong-bullish-bearish-candles-by-azeez-mustapha-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-13-12-14-42-strong-bullish-bearish-candles-by-azeez-mustapha-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov361whto,d,"{""minimum-quantity"":""1"",""path"":""ch13bis206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:13 (16–20): What To Expect In 2018 by Koos van der Merwe"",""caption-linebreaks"":""What To Expect In 2018 by Koos van der Merwe
When a market has been strongly bullish, it’s easy to get complacent and focus on continuing to grow your net returns. The reality is that markets don’t always go up, which is why, as a precaution, it’s worth your time to map out the bigger picture. That’s not to say that you can accurately predict when the market might turn around but it gives you a path to follow. Here’s one approach to use.
In my article “Gann Fans & Kondratieff Waves” that appeared in the Technical Analysis of STOCKS & COMMODITIES Bonus Issue of 2016, I concluded that Gann fans were not the key to cyclical analysis and that the Kondratieff wave failed in its prediction of a major correction in March 2016. If you look at the chart of a Kondratieff wave (K-wave) in Figure 1, the K-wave calls for a collapse in 2019. Will this happen, or will the K-wave be wrong again this time?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-13-16-20-what-to-expect-in-2018-by-koos-van-der-merwe-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-13-16-20-what-to-expect-in-2018-by-koos-van-der-merwe-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-13-16-20-what-to-expect-in-2018-by-koos-van-der-merwe-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov362bucu,d,"{""minimum-quantity"":""1"",""path"":""ch13bis206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:13 (22–26): Building A Custom Sentiment Indicator by Philipe Saroyan"",""caption-linebreaks"":""Building A Custom Sentiment Indicator by Philipe Saroyan
Traders always welcome trading signals generated by their indicators. Often, these indicators are based on price and volume, but with the surge in social media, it may be worth your while to pay attention to what the general sentiment is to an equity, future, or option. Read on to find out why.
The goal of this article is to demonstrate how you can capture sizable returns from discounting sentiment on euro futures. I will present backtest results from the Ninja Trader 7 trading platform and also define some of the groundwork required to build the strategy. Think of it as a value-added article!"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-13-22-26-building-a-custom-sentiment-indicator-by-philipe-saroyan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-13-22-26-building-a-custom-sentiment-indicator-by-philipe-saroyan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-13-22-26-building-a-custom-sentiment-indicator-by-philipe-saroyan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36242ge,d,"{""minimum-quantity"":""1"",""path"":""ch13bis206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:13 (28–30, 42): Get The Gann Skinny From Hima Reddy by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Get The Gann Skinny From Hima Reddy by Jayanthi Gopalakrishnan
Trader, educator, author, and mentor Hima Reddy, CMT, was introduced to trading by her late father and has continued on that path since the day she laid eyes on her first price chart. She applies Gann’s price and time analysis to the markets with a more modern approach. In her 2013 book The Trading Methodologies Of W.D. Gann: A Guide To Building Your Technical Analysis Toolbox, Reddy shares some of the Gann analysis tools she uses. She has been an active member of the CMT Association (formerly known as the Market Technicians Association) for over 15 years and is the CMT Content Director for the Wiley publishing company.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Hima Reddy on January 18, 2018 about her trading journey and what attracted her to Gann analysis.
Tell us about how you got interested in the markets?
\nI was 16 years old and needed help with chemistry homework. So I asked my dad to help me. He was a doctor and still had his medical school textbooks on his shelf and knew what was in them. When I initially went to ask for homework help, he was on his computer at the time. This was in the mid-1990s, and he was looking at this strange chart. While he was helping me with my homework, I asked him what that was. He told me it was a stock chart. I asked him what that meant and he said it’s for plotting the price of a particular company’s stock ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-13-28-30-42-get-the-gann-skinny-from-hima-reddy-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-13-28-30-42-get-the-gann-skinny-from-hima-reddy-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-13-28-30-42-get-the-gann-skinny-from-hima-reddy-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36320re,d,"{""minimum-quantity"":""1"",""path"":""ch13bis206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:13 (32–39): 2018 Readers’ Choice Awards by Technical Analysis, Inc."",""caption-linebreaks"":""2018 Readers’ Choice Awards by Technical Analysis, Inc.
We are pleased to present the Technical Analysis of STOCKS & COMMODITIES magazine 2018 Readers’ Choice Awards (RCA). Each year, we put before our readers a ballot of products and services related to technical analysis and trading. The following pages present the products and services you and your peers chose this year as your favorites.
The Readers’ Choice Awards begins each year with a list of products gathered by the editors of STOCKS & COMMODITIES, with space for write-in votes (given that our list doesn’t claim to be complete). Then, to find out what our readers find to be the most useful for their trading, we ask them to choose their favorite products or the ones they find most useful from various categories by going to our website, Traders.com, and filling out the survey there. After that, we compile the results, just in time for the Bonus Issue you hold in your hands.
Products are categorized by their primary purpose. Just because a service or product is not listed does not necessarily mean that the product does not have features germane to the category. In addition, some categories are divided by cost so that the comparisons can be made on a more level playing field.
The winners in the Readers’ Choice Awards are almost always the dominant players in their niche, and rightfully so. You may have special needs for your trading, however, so you should keep in mind those products that are not the big names in the category of your interest before you make your final decision. The RCA is designed to be an aid for you when you are deciding on which of the numerous products and services currently available to use for your trading and investing. With that in mind, we think you’ll find the Readers’ Choice a terrific guide to products and services that you’ll be interested in ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-13-32-39-2018-readers-choice-awards-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-13-32-39-2018-readers-choice-awards-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-13-32-39-2018-readers-choice-awards-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov364howf,d,"{""minimum-quantity"":""1"",""path"":""ch13bis206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:13 (40–42): How Far Down Can It Go? by Rudy Teseo"",""caption-linebreaks"":""How Far Down Can It Go? by Rudy Teseo
Not many people worry about how high a market can go. It can go on indefinitely. And while technically, a market could potentially fall to zero, the chance of that happening is slim. Fibonacci retracement levels are a handy reference guide to have when you try to figure out how low a market could go. Find out here how to apply them.
The next market correction is coming. Are you ready for it? To answer that question, it might help to know how far down the market would or could go. If the market goes down one or two percent, most traders would probably not do anything except watch to see if it’s going to go down even further. But how would you know if it’s going to go down further?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-13-40-42-how-far-down-can-it-go-by-rudy-teseo-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-13-40-42-how-far-down-can-it-go-by-rudy-teseo-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-13-40-42-how-far-down-can-it-go-by-rudy-teseo-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov36420sc,d,"{""minimum-quantity"":""1"",""path"":""ch13bis206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:13 (43–44): 2017 S&C Articles by Technical Analysis, Inc."",""caption-linebreaks"":""2017 S&C Articles by Technical Analysis, Inc.
If you weren’t subscribing to Technical Analysis of StockS & commoditieS, The Traders’ Magazine, throughout 2017, you missed out on a lot of information. Here is some of what you missed ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-13-43-44-2017-s-c-articles-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-13-43-44-2017-s-c-articles-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-13-43-44-2017-s-c-articles-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov368yotr,d,"{""minimum-quantity"":""1"",""path"":""ch13bis206"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 36:13 (8–11): Your Trading Brain Hack by Charles Drummond & JB Wells"",""caption-linebreaks"":""Your Trading Brain Hack by Charles Drummond & JB Wells
How often do you go through a mental checklist before placing a trade? Markets are chaotic and can overwhelm us, which in turn leads us to make hasty decisions. But if you wire your brain to think logically, it may make a difference in how you make your trading decisions. Here’s an approach you could apply to help you think logically.
It doesn’t matter whether you’re a stock trader, futures trader, or forex trader. Success in trading comes down to three important skills, and in this article, we’ll share with you what these are, based on our years of experience. Trading may work for a while without these three skills, but to turn on your trading more completely and create the trading business you’ve always wanted, you must have these three skills working in your trading mindset ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-13-8-11-your-trading-brain-hack-by-charles-drummond-jb-wells-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-13-8-11-your-trading-brain-hack-by-charles-drummond-jb-wells-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-36-13-8-11-your-trading-brain-hack-by-charles-drummond-jb-wells-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov371vowh,d,"{""minimum-quantity"":""1"",""path"":""ch1j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:01 (16–20): Volatility: What They Don’t Teach You In Grad School by Perry J. Kaufman"",""caption-linebreaks"":""What They Don’t Teach You In Grad School by Perry J. Kaufman
You’re most likely not going to engage in a conversation about “lognormal volatility” at a cocktail party. But you may have come across the term in financial texts. This may or may not surprise you: When it comes to the stock market, what you read may not be completely accurate. Here’s something that may turn out to be important to you.
Graduate finance courses teach the theory of price relationships and tools for working with them. You would like to think that what is taught is always correct. Take the concept of modern portfolio theory, that is, optimizing the assets to find the best portfolio in terms of reward to risk. Over the years we have learned two important facts: ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19303.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-16-20-volatility-what-they-don-t-teach-you-in-grad-school-by-perry-j-kaufman-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-16-20-volatility-what-they-don-t-teach-you-in-grad-school-by-perry-j-kaufman-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov371vowh1,d,"{""minimum-quantity"":""1"",""path"":""faarfr2011"",""ysw-page-title"":""Stocks & Commodities V. 37:01 (16–20): Volatility: What They Don’t Teach You In Grad School by Perry J. Kaufman"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-21828.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-16-20-volatility-what-they-don-t-teach-you-in-grad-school-by-perry-j-kaufman-7.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-16-20-volatility-what-they-don-t-teach-you-in-grad-school-by-perry-j-kaufman-8.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37262do,d,"{""minimum-quantity"":""1"",""path"":""ch1j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:01 (22–24, 62): Double Bottom Patterns: Increasing The Odds by Pawel Kosinski"",""caption-linebreaks"":""Double Bottom Patterns: Increasing The Odds by Pawel Kosinski
Any trading strategy can be improved. Here’s a look at how trading double bottom patterns can be modified to give you better trading results.
In my September 2018 S&C article, “Double Bottoms Revisited,” I showed some backtesting results of the double bottom chart pattern. In this article, I would like to continue the discussion and show how a trader can make this pattern even more profitable. As in the previous article, I used software I created for recognizing the double bottom pattern and used it for backtesting ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17503.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-22-24-62-double-bottom-patterns-increasing-the-odds-by-pawel-kosinski-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-22-24-62-double-bottom-patterns-increasing-the-odds-by-pawel-kosinski-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov372stit,d,"{""minimum-quantity"":""1"",""path"":""ch1j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:01 (26–27): Stock It To Me: Income-Based Investing by Gabriel Gonzalez"",""caption-linebreaks"":""Stock It To Me: Income-Based Investing by Gabriel Gonzalez
Putting some of your investment dollars to work in securities that offer payouts can be a good tradeoff between risk and reward. Here’s how to go about it.
Last time, in my October 2018 article, I wrote about safety-based investing, which focuses on relatively stable and established investment vehicles including notes & bonds, CDs, and commercial papers. This time, I’ll take a step beyond that and look at what could deliver a little more return but that still won’t keep you awake at night ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19351.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-26-27-stock-it-to-me-income-based-investing-by-gabriel-gonzalez-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-26-27-stock-it-to-me-income-based-investing-by-gabriel-gonzalez-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov372prfr,d,"{""minimum-quantity"":""1"",""path"":""ch1j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:01 (28–31): Profiting From Inverse ETFs In Bear Markets by Leslie N. Masonson"",""caption-linebreaks"":""Profiting From Inverse ETFs In Bear Markets by Leslie N. Masonson
When the market heads down, there are still ways to profit that don’t require taking an outright short position. Here’s a look at some of the inverse ETFs available, how they have performed, and what risks are involved.
The current bull market has had a terrific run since its launch on March 9, 2009. Since then, through October 12, 2018, the major market averages have risen between 283% (DJIA) to 477% (Nasdaq Composite), with the S&P 500 advancing 303%. Inevitably, a bear market will occur, since stock markets always experience boom and bust cycles. The key to profitable investing is to be ready beforehand with a defensive strategy when the market trend starts to turn down ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17401.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-28-31-profiting-from-inverse-etfs-in-bear-markets-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-28-31-profiting-from-inverse-etfs-in-bear-markets-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov373inda,d,"{""minimum-quantity"":""1"",""path"":""ch1j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:01 (32–35): Interview: David Stendahl On Seasonal Patterns by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: David Stendahl On Seasonal Patterns by Jayanthi Gopalakrishnan
With over 25 years of experience in trading and designing pattern and momentum-style trading systems, David Stendahl understands risk management. Stendahl is founder and president of Signal Trading Group (SignalTradingGroup.com) and focuses on trading the global futures markets. He follows a systematic, low-leveraged, highly diversified trading regimen. He co-created various financial software that centers on evaluating trading systems, position sizing application, and portfolio construction. You can follow him on Twitter at @David_Stendahl.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan communicated with David Stendahl by phone and email in November 2018 about his company’s latest developments in using seasonal charts for trading.
David, we last talked more than a year ago. Anything new you’ve worked on since then?
\nFirst, let me say thank you for having me back. I always enjoy our talks. Yes, it has been a busy year, as I’ve been refining the tools I use to evaluate the seasonal tendencies for the futures markets. My team and I have made great strides by improving the process we use to determine when to watch seasonal charts and when to avoid them. Seasonal tendencies are ingrained in every market. Now that we have better analytics, we know when to focus attention on the correct markets ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17428.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-32-35-interview-david-stendahl-on-seasonal-patterns-by-jayanthi-gopalakrishnan-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-32-35-interview-david-stendahl-on-seasonal-patterns-by-jayanthi-gopalakrishnan-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov373exyo,d,"{""minimum-quantity"":""1"",""path"":""ch1j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:01 (36–37): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
HOW TO POSITION A TRADE USING A CALENDAR SPREAD (PART 2)
Last month, I addressed the question of using calendar spreads to take advantage of time decay and/or trading ranges. I went over a lot of the basics of calendar spreads and discussed the key factors involved when considering entering into a neutral calendar spread. I mentioned that there are any number of ways to position a trade using this strategy, and I would therefore continue with this topic this month ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17431.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-36-37-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-36-37-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37345pr,d,"{""minimum-quantity"":""1"",""path"":""ch1j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:01 (38–42, 45): Product Review: StockCharts.com by Leslie N. Masonson"",""caption-linebreaks"":""Product Review: StockCharts.com by Leslie N. Masonson
STOCKCHARTS.COM
\n11241 Willows Rd., NE Suite 140, Redmond, WA 98052-1009
\nPhone: 425 881-2606
\nEmail: support@StockCharts.com
\nInternet: www.StockCharts.com
\nProduct: Technical analysis charting website
\nData updates: Real-time with five- to 15-second refresh rates depending on plan selected; or end-of-day.
\nRequirements: Works with most browsers. Mobile-friendly on all web-enabled devices including smart phones.
\nPrice: Three monthly subscription plans are offered with prices ranging from $14.95 to $39.95 per month (plus a free level); paying annually provides one free month. A free one-month trial of the paid service option is available to new members.
StockCharts.com is a comprehensive, easy-to-navigate and highly subscribed-to technical analysis and charting website designed for self-directed investors and traders ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-38-42-45-product-review-stockcharts-com-by-leslie-n-masonson-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-38-42-45-product-review-stockcharts-com-by-leslie-n-masonson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-38-42-45-product-review-stockcharts-com-by-leslie-n-masonson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37445fu,d,"{""minimum-quantity"":""1"",""path"":""ch1j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:01 (43, 45): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
LEVERAGED ETFS VS. FUTURES: A GOOD SUBSTITUTE?
Why do some speculators opt to trade leveraged ETFs rather than futures contracts?
This is a great question. One for which I do not have a logical answer. The truth is, beyond the argument of convenience, there is no reasonable reason to trade leveraged ETFs in lieu of futures trading. That said, not everybody should be speculating with leverage. Thus, the first decision a trader should make is whether to utilize leverage ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17434.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-43-45-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-43-45-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov374alqa,d,"{""minimum-quantity"":""1"",""path"":""ch1j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:01 (44–45): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
DISCRETIONARY VS. ALGORITHMIC TRADING
I currently trade in a discretionary manner using price action and trendlines. I find it very difficult. I have heard a lot about systematic and algorithmic trading. Can you tell me more about it?
Certainly, but first of all, you should realize that any type of trading is difficult, no matter what kind of trading, or what kind of instrument, you trade. As a retail trader, you are up against professional traders, and they enjoy profiting from your misfortune ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19474.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-44-45-algo-q-a-by-kevin-j-davey-15.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-44-45-algo-q-a-by-kevin-j-davey-16.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov374alqa2,d,"{""minimum-quantity"":""1"",""path"":""faarfr2011"",""ysw-page-title"":""Stocks & Commodities V. 37:01 (44–45): Algo Q&A by Kevin J. Davey"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-44-45-algo-q-a-by-kevin-j-davey-12.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-44-45-algo-q-a-by-kevin-j-davey-13.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-44-45-algo-q-a-by-kevin-j-davey-14.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov374trpe,d,"{""minimum-quantity"":""1"",""path"":""ch1j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:01 (46–47): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
2019: THE YEAR OF THE PAIR TRADER!
It’s a new year, a new day, and time to know how to trade up, down, and sideways. That is to say, hedged.
As I’ve mentioned previously in my columns in this magazine, markets don’t and won’t go up forever. Sometimes they fall, and there are many periods of range-bound, sideways markets throughout history ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19477.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-46-47-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-46-47-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov374trti,d,"{""minimum-quantity"":""1"",""path"":""ch1j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:01 (48–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Sylvain Vervoort’s article in the July 2018 issue, “The V-Trade, Part 5: Technical Analysis—Moving Average Support & Resistance And Volatility Bands.” Here, we present the January 2019 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this is-sue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19459.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-48-56-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-48-56-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov376leto,d,"{""minimum-quantity"":""1"",""path"":""ch1j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:01 (6): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
STIFFNESS INDICATOR
Editor,
\nI found the article “The Stiffness Indicator” by Markos Katsanos in the November 2018 issue interesting and wish to thank the author for sharing this insight with the trading community. It is a new way to look at trading. It was great that your magazine also offered the associated code for major trading platforms and for Excel. I downloaded the latter as a way to explore the stiffness indicator some more.
M. O’Neill"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19223.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-6-letters-to-s-c-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-6-letters-to-s-c-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov376howd,d,"{""minimum-quantity"":""1"",""path"":""ch1j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:01 (60–62): How Does Impulsivity Affect Your Trading Results? by Claudio Demb"",""caption-linebreaks"":""How Does Impulsivity Affect Your Trading Results? by Claudio Demb
Just knowing if you are trading based on impulse can, at the very least, make a difference in your approach to trading. And that can make a difference in your bottom line.
What is impulsive trading and what does it look like? Let’s begin with defining impulsivity. As the word implies, it is something we do fast without much forethought, mostly with a negative outcome where regret reigns supreme. We all know this, but why is it that knowing it is not enough to stop this behavior from happening in ourselves?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17680.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-60-62-how-does-impulsivity-affect-your-trading-results-by-claudio-demb-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-60-62-how-does-impulsivity-affect-your-trading-results-by-claudio-demb-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov377davw,d,"{""minimum-quantity"":""1"",""path"":""ch1j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:01 (7): Daytrading VWMA Breakouts by Ken Calhoun"",""caption-linebreaks"":""Daytrading VWMA Breakouts by Ken Calhoun
Adding in a volume component to your moving average calculation can help you know when momentum may be slowing, which may improve your trade timing. Here’s how.
If you have ever struggled with knowing when to exit an intraday trade, this month’s column may be helpful. It combines a two-day high breakout pattern with a volume-weighted moving average (VWMA) line. When it comes to daytrading volatile breakouts successfully, you will find that exiting your trade in a timely manner is the most important decision you will make to minimize stops or lock in profits correctly ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-7-daytrading-vwma-breakouts-by-ken-calhoun-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-7-daytrading-vwma-breakouts-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-7-daytrading-vwma-breakouts-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov377davw1,d,"{""minimum-quantity"":""1"",""path"":""faarfr2011"",""ysw-page-title"":""Stocks & Commodities V. 37:01 (7): Daytrading VWMA Breakouts by Ken Calhoun"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-21829.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-7-daytrading-vwma-breakouts-by-ken-calhoun-31.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-7-daytrading-vwma-breakouts-by-ken-calhoun-32.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov378moro,d,"{""minimum-quantity"":""1"",""path"":""ch1j2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:01 (8–15): Moon Rocket by Jay A. Leavitt, PhD"",""caption-linebreaks"":""Moon Rocket by Jay A. Leavitt, PhD
First it was to the stratospheres. Now we’re off to the moon, and maybe even further.
I am a mathematician. Fifty years ago, I started studying supersonic flows and shock waves. I worked on the same machine as was featured in Hidden Figures, except mine was more powerful. Their machine was owned by NASA; mine, by the Atomic Energy Commission.
Since then, my research has carried me through many fields, including chronobiology, linguistics, differential equations, and most recently, prehistoric migrations. All of these studies have involved waves ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-8-15-moon-rocket-by-jay-a-leavitt-phd-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-8-15-moon-rocket-by-jay-a-leavitt-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-01-8-15-moon-rocket-by-jay-a-leavitt-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37141vo,d,"{""minimum-quantity"":""1"",""path"":""ch2f2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:02 (16–20, 41): Volume—Volatility Relationship by Mike B. Siroky, MD"",""caption-linebreaks"":""Volume–Volatility Relationship by Mike B. Siroky, MD
Volume can tell plenty about what to expect in the market. It may be worth your while to keep an eye on what volume is doing. On its own, it's an all-powerful indicator. Combine it with price movement and time, and you may get a trading edge.
Technical analysis is concerned with only three fundamental quantities: price, time, and volume. Most traders understandably focus on the relation between price and time and pay relatively less attention to volume. However, volume is an integral aspect of stock price movement so it is useful to carefully study the information it provides ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-16-20-41-volume-volatility-relationship-by-mike-b-siroky-md-23.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-16-20-41-volume-volatility-relationship-by-mike-b-siroky-md-27.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-16-20-41-volume-volatility-relationship-by-mike-b-siroky-md-28.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov372coex,d,"{""minimum-quantity"":""1"",""path"":""ch2f2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:02 (22–25): Computing Expected Returns On Options Strategies by Douglas Lyon, PhD"",""caption-linebreaks"":""Computing Expected Returns On Options Strategies by Douglas Lyon, PhD
With the many strategies you can trade, computing expected returns can be tedious. Using one strategy as an example, we look at how calculating maximum profit and loss plus factoring in the probability of profit can identify profitable statistical arbitrage opportunities.
The basic probability assumption (BPA) assumes that all probabilities for all outcomes of any given experiment must sum to 1 and that the probabilities are known with 100% certainty. The statistical arbitrageur knows that the BPA is without foundation and that there is a nonzero probability of losing money for any given trade ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17823.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-22-25-computing-expected-returns-on-options-strategies-by-douglas-lyon-phd-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-22-25-computing-expected-returns-on-options-strategies-by-douglas-lyon-phd-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov372hows,d,"{""minimum-quantity"":""1"",""path"":""ch2f2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:02 (26–27): How Sentiment And Social Media Breaks The Roof by Philipe Saroyan"",""caption-linebreaks"":""How Sentiment And Social Media Breaks The Roof by Philipe Saroyan
Have sentiment and social media data reached a tipping point?
Social media use is on the rise, and investors and traders use it as a research tool to measure market sentiment, which in turn helps them make their buy and sell decisions. Extremes in investor sentiment can make market activity exciting. But if you view the markets from this perspective, you may be playing in riskier waters, especially when there is something other than a random walk taking place ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17572.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-26-27-how-sentiment-and-social-media-breaks-the-roof-by-philipe-saroyan-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-26-27-how-sentiment-and-social-media-breaks-the-roof-by-philipe-saroyan-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37238wh,d,"{""minimum-quantity"":""1"",""path"":""ch2f2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:02 (28–31, 38): What Can We Learn From Warren Buffett? by Simon To"",""caption-linebreaks"":""What Can We Learn From Warren Buffett? by Simon To
Traders can take cues from investors. Here’s a look at mimicking what legendary investor Warren Buffett is doing.
Warren Buffett, one of the most legendary investors of our time, has millions of fans and followers. They seek out ways to figure out what his investment strategy is, given that it has led to his enormous success. One way to learn from Buffett is to analyze his portfolio holdings ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18008.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-28-31-38-what-can-we-learn-from-warren-buffett-by-simon-to-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-28-31-38-what-can-we-learn-from-warren-buffett-by-simon-to-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov373inco,d,"{""minimum-quantity"":""1"",""path"":""ch2f2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:02 (32–35): Interview: Connecting Up With Jared Broad by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Connecting Up With Jared Broad by Jayanthi Gopalakrishnan
Jared Broad is founder and CEO of QuantConnect, an open-source, cloud-based algorithmic trading platform that provides tools to its community of more than 65,000 engineers, data scientists, and quantitative analysts to design and backtest trading strategies. He leads the strategy and vision at QuantConnect, where he and his team work to democratize investing and pioneer the future of finance. QuantConnect’s latest project, Alpha Streams, enables quantitative funds to license strategies and alpha-generating insights produced by the QuantConnect community.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan interviewed Jared Broad in QuantConnect’s new digs in Seattle, WA on December 10, 2018.
This is a lovely office. Jared, tell us something about yourself—your background, how you got interested in finance, and what led you here.
\nI was born in New Zealand and studied biomedical engineering. Over time, I eventually got into humanitarian work, which led me to philanthropic opportunities in other countries. When I was doing that, there was a lot of downtime, especially in between jobs ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-32-65533-35-interview-connecting-up-with-jared-broad-by-jayanthi-gopalakrishnan-24.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-32-35-interview-connecting-up-with-jared-broad-by-jayanthi-gopalakrishnan-3.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-32-35-interview-connecting-up-with-jared-broad-by-jayanthi-gopalakrishnan-4.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov373sere,d,"{""minimum-quantity"":""1"",""path"":""ch2f2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:02 (36–38): Sell Relative Strength Index by Howard Wang"",""caption-linebreaks"":""Sell Relative Strength Index by Howard Wang
Traders accumulate profits trade by trade, with the goal of maximizing profits. But selloffs happen and when they do, you see significant price drops that are fast. Here’s an indicator that uses the profit accumulation size to estimate subsequent selloff size.
Newton’s law of universal gravitation indicates that gravity is an interaction between objects caused by the mass of the objects. The size of gravitation is related to the objects’ mass and the distance between the two objects. The greater the mass of the objects, the greater the attraction between them ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19687.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-36-38-sell-relative-strength-index-by-howard-wang-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-36-38-sell-relative-strength-index-by-howard-wang-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov374fufo,d,"{""minimum-quantity"":""1"",""path"":""ch2f2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:02 (40–41): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
OPTION SELLING: RISKS AND REMEDIES (PART 1 OF 2)
\nIn late 2018, energy market option sellers paid a price for trading naked. How could this have been avoided?
Anybody who has followed this column, or any of the other educational content I create, has probably recognized my tendency toward an option-selling strategy. The basic premise used by option sellers is that most options expire worthless; thus, it is generally better to be a seller of options than a buyer ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20453.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-40-41-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-40-41-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37445al,d,"{""minimum-quantity"":""1"",""path"":""ch2f2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:02 (42, 45): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
GETTING STARTED IN ALGO TRADING
What do I need to get started with algo trading?
If you want to be a surgeon, you can’t just wake up one morning and exclaim, “I am performing surgery today.” You need years of education and years of experience. The same holds true for trading, even though it seems trading only requires some cash and a pulse. Expect to spend a significant amount of time before you are ready to trade ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20459.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-42-45-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-42-45-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov374exyo,d,"{""minimum-quantity"":""1"",""path"":""ch2f2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:02 (44–45): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
RISKS OF NAKED OPTIONS
I heard recently about a firm specializing in selling options that went belly up and that all their clients lost their money. Is this true and if so, what lessons can I learn from this and most importantly, how can I avoid a similar fate?
Yes, it is true and the short answer is that if you don’t sell naked futures options then you won’t experience exactly what they experienced. But even beyond that, there are myriad lessons to be learned. And interestingly, one of those lessons is not that all traders should avoid selling naked options. But more on that in a moment ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-44-45-explore-your-options-by-jay-kaeppel-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-44-45-explore-your-options-by-jay-kaeppel-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-44-45-explore-your-options-by-jay-kaeppel-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37461tr,d,"{""minimum-quantity"":""1"",""path"":""ch2f2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:02 (46–47, 61): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
PAIR TRADING RULES OF THUMB
Since I coined this year “the year of the pair trader” in this column last month, I feel responsible for giving you some rules to help guide you. So this month, I’ll offer some ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20465.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-46-47-61-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-46-47-61-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov374trti1,d,"{""minimum-quantity"":""1"",""path"":""ch2f2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:02 (48–55): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Sylvain Vervoort’s article in the August 2018 issue, “The V-Trade, Part 6: Technical Analysis—Divergence Indicators.” Here, we present the February 2019 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this is-sue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18656.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-48-55-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-48-55-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov376leto1,d,"{""minimum-quantity"":""1"",""path"":""ch2f2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:02 (6): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
STIFFNESS INDICATOR
Editor,
\nI am a subscriber. I just read Markos Katsanos’ article from the November 2018 issue on the stiffness indicator. I found it to be very interesting and more readable than some of the other articles I see in the magazine (although I enjoy reading the magazine every month). I am an active trader of equities and options in the US. I am not a daytrader per se, but I do trade a lot of shorter-term swing strategies ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-6-letters-to-s-c-by-technical-analysis-inc-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-6-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-6-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov376trmi,d,"{""minimum-quantity"":""1"",""path"":""ch2f2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:02 (60–61): The Trader’s Mindset by Santhosh Kumar V."",""caption-linebreaks"":""The Trader’s Mindset by Santhosh Kumar V.
It’s not just the mechanical skills that keep you in the game and your account in the black, it’s the mental skills as well. Is your mind in the correct state to trade?
Trading in the markets is never simple. It takes years to understand the behavior of markets. Without an understanding of market behavior, which is usually the case with novice or amateur traders, the trader will eventually end up losing money ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18659.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-60-61-the-trader-s-mindset-by-santhosh-kumar-v-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-60-61-the-trader-s-mindset-by-santhosh-kumar-v-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov376bofo,d,"{""minimum-quantity"":""1"",""path"":""ch2f2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:02 (62): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
Trading Your A Game: Are Feelings Expensive? by Claudio Demb.
Keeping At It: The Quest For Sound Money And Good Governance by Paul A. Volcker with Christine Harper.
Stay The Course: The Story Of Vanguard And The Index Revolution by John C. Bogle.
How To Think About Money: Make Smarter Financial Choices And Squeeze More Happiness Out Of Your Cash by Jonathan Clements."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-62-books-for-traders-by-technical-analysis-inc-25.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-62-books-for-traders-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-62-books-for-traders-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37743da,d,"{""minimum-quantity"":""1"",""path"":""ch2f2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:02 (7, 43): Daytrading Pivot Channels by Ken Calhoun"",""caption-linebreaks"":""Daytrading Pivot Channels by Ken Calhoun
It turns out that yesterday’s news actually can be valuable information. This professional trader explains how.
Daytrading can be challenging if you don’t see prior support & resistance levels that can help you make smart trading decisions. One way to spot these levels is to use a two-day, one-minute candlestick chart. This helps to help see valuable prior days’ open, high, low, close (OHLC) and other key support & resistance prices ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19432.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-7-43-daytrading-pivot-channels-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-7-43-daytrading-pivot-channels-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov378fxad,d,"{""minimum-quantity"":""1"",""path"":""ch2f2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:02 (8–14): FX Advantages And Alternative Opportunities by Fawad Razaqzada"",""caption-linebreaks"":""FX Advantages And Alternative Opportunities by Fawad Razaqzada
Technical analysis is well suited to forex trading, more so than other financial markets. Here’s how you can combine technical setups with intermarket analysis to help unearth potential trading opportunities.
The foreign exchange market (forex or FX) has its unique characteristics, drivers, and advantages (and some disadvantages) over the stock and commodity markets. I will highlight a few of its attributes and explain why technical analysis is perhaps better suited to FX than the other financial markets ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19612.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-8-14-fx-advantages-and-alternative-opportunities-by-fawad-razaqzada-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-02-8-14-fx-advantages-and-alternative-opportunities-by-fawad-razaqzada-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37133do,d,"{""minimum-quantity"":""1"",""path"":""ch3m2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:03 (12–17, 33): Does History Repeat Itself In The Markets? by Alessandro Aldrovandi, Max Malandra, & Fabio Pacchioni"",""caption-linebreaks"":""Does History Repeat Itself In The Markets? by Alessandro Aldrovandi, Max Malandra, & Fabio Pacchioni
Seasonality or repeating patterns in financial data can come in many shapes and sizes and can put the probabilities on your side. Or does general market unpredictability ultimately undermine that edge? Here are some ideas on looking for time-based patterns and an example of how to backtest their reliability.
Is it possible to forecast market moves by using a “time factor”? Here, we’ll attempt to answer that question using monthly timeframes. For this study, we used the forex market and statistically analyzed historical monthly performances of some of the major currency pairs. We hypothesized that the major currencies vs. the US dollar, which is usually a mean-reverting relationship, could indicate seasonality in the different months of the year ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20295.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-03-12-17-33-does-history-repeat-itself-in-the-markets-by-alessandro-aldrovandi-max-malandra-fabio-pacchioni-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-03-12-17-33-does-history-repeat-itself-in-the-markets-by-alessandro-aldrovandi-max-malandra-fabio-pacchioni-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov371trfa,d,"{""minimum-quantity"":""1"",""path"":""ch3m2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:03 (18–24): Trading The Fakeout by Fawad Razaqzada"",""caption-linebreaks"":""Trading The Fakeout by Fawad Razaqzada
Can you profit from fakeouts? Here’s one trader’s take on how to identify these patterns and trade them profitably.
A false breakout—or fakeout—is by far one of my favorite technical patterns. It is when price momentarily moves above a previous high or below a previous low, but then goes back within the existing range. This happens when there isn’t enough demand above the old high, or enough supply beneath the prior low, to help push price significantly in the direction of the break ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20298.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-03-18-24-trading-the-fakeout-by-fawad-razaqzada-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-03-18-24-trading-the-fakeout-by-fawad-razaqzada-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37262al,d,"{""minimum-quantity"":""1"",""path"":""ch3m2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:03 (25, 62): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
A DAY IN THE LIFE OF AN ALGO TRADER
As a new algorithmic trader, how should I be scheduling my day? I am an experienced trader in futures and forex, but only as a discretionary trader.
It’s good you have trading experience, since many people try to jump into algo trading without knowing the basics. To know the markets and be able to use your trading platform are two essentials any trader should have before starting with algorithmic trading ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20301.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-03-25-62-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-03-25-62-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov372alla,d,"{""minimum-quantity"":""1"",""path"":""ch3m2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:03 (26–32): All About OBV by John Devcic"",""caption-linebreaks"":""All About OBV by John Devcic
On-balance volume is a classic indicator that can be helpful for indicating trends and for confirming other indicators. You’ve undoubtedly looked at it on your charts, but if you’ve never really known exactly how it works or how it’s most useful, here’s a close-up view.
While the number of tools available to the trader grows all the time, sometimes the tools and indicators that have been around a long time still serve the trader well. In this article, I’ll examine one of them, the on-balance volume (OBV), and show you how I have used it to trade ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20304.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-03-26-32-all-about-obv-by-john-devcic-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-03-26-32-all-about-obv-by-john-devcic-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37356in,d,"{""minimum-quantity"":""1"",""path"":""ch3m2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:03 (34–37, 56): Interview: The Psychology Of Trading With Claudio Demb by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: The Psychology Of Trading With Claudio Demb by Jayanthi Gopalakrishnan
Claudio Demb, MD, is a psychiatrist and has been an individual trader and investor since the 1990s. He is a frequent contributor to this magazine on the topic of trading psychology. Along with his professional practice, he has an academic appointment as an instructor in psychiatry at Harvard Medical School. He is the author of the recently published Trading Your A Game: How Feelings & Emotions Influence Trading & Investing Decisions. His blog about trading and the psychological aspects of trading can be found at claudiodemb.com.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Claudio Demb on January 15, 2019 about how he juggles trading and a full-time job, and how he uses his insights into trading psychology to improve his own trading.
Claudio, tell us a little bit about your background. What led to your interest in trading?
\nI grew up in Argentina. My grandparents had escaped from Russia. The reason it matters is because they came to Argentina without any money and died poor. Thus, my parents wanted to do well and wanted to do better than my grandparents did ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-03-34-37-56-interview-the-psychology-of-trading-with-claudio-demb-by-jayanthi-gopalakrishnan-26.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-03-34-37-56-interview-the-psychology-of-trading-with-claudio-demb-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-03-34-37-56-interview-the-psychology-of-trading-with-claudio-demb-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37356tr,d,"{""minimum-quantity"":""1"",""path"":""ch3m2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:03 (38–40, 56): Trading Breakaway Gaps by Pawel Kosinski"",""caption-linebreaks"":""Trading Breakaway Gaps by Pawel Kosinski
Many traders like to trade breakaway gaps. How effective are they? Here, we look at backtesting results of trading different breakaway gaps to determine if they can be profitable.
Gaps occur on a price chart because of some impetus that made the price move higher or lower than the previous day’s closing price. Several types of gaps are possible and in this article I’ll focus on upward breakaway gaps, which occur when price suddenly jumps from a congestion zone and moves up. It is considered to be a bullish action and something traders are familiar with ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20274.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-03-38-40-56-trading-breakaway-gaps-by-pawel-kosinski-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-03-38-40-56-trading-breakaway-gaps-by-pawel-kosinski-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37462fu,d,"{""minimum-quantity"":""1"",""path"":""ch3m2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:03 (41, 62): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
OPTION SELLING: RISKS AND REMEDIES (PART 2 OF 2)
In late 2018, energy market option sellers paid a price for trading naked. How could this have been avoided?
As I discussed in this column last month, the practice of option selling is a relatively high-probability trading strategy in that it often comes with unusually high win percentages. Yet we also know that it comes with unlimited risk, and the small percentage of losing trades can wreak havoc on trading accounts. We witnessed several examples of this in the energy complex in late 2018, where at least one large hedge fund (and likely others we aren’t aware of) were wiped out ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20277.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-03-41-62-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-03-41-62-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37455se,d,"{""minimum-quantity"":""1"",""path"":""ch3m2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:03 (42–45, 55): Sector-Rotation ETFs Underperform by Leslie N. Masonson"",""caption-linebreaks"":""Sector-Rotation ETFs Underperform by Leslie N. Masonson
Rotating into leading sectors while switching to a defensive position in downturns is an ideal tactic if it can be implemented successfully, but can it? Are there any ETFs that have succeeded with it? If there are, they could save you the work of implementing the approach yourself, so we’ll investigate.
Sector investing has been popular since Fidelity introduced its sector mutual funds in the mid-1980s, and even more so with the offering of nine popular SPDR sector ETFs in 1999. Since then many more have been made available from multiple ETF providers ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20280.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-03-42-45-55-sector-rotation-etfs-underperform-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-03-42-45-55-sector-rotation-etfs-underperform-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37462ex,d,"{""minimum-quantity"":""1"",""path"":""ch3m2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:03 (46–47, 62): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
ADJUSTING POSITIONS USING OPTIONS
I hear traders refer to “adjusting” an option position. What does that mean, and is it worth knowing about?
Learning to adjust an option position is absolutely worth learning about and is one of the key advantages to trading options versus other vehicles such as stocks, exchange traded funds (ETFs), and commodity futures. To “adjust” an option position means buying or selling options to change the nature of an existing position ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18578.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-03-46-47-62-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-03-46-47-62-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov374trti2,d,"{""minimum-quantity"":""1"",""path"":""ch3m2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:03 (48–55): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Sylvain Vervoort’s article in the September 2018 issue, “The V-Trade, Part 7: Technical Analysis—V-Wave Count.” Here, we present the March 2019 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this is-sue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18581.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-03-48-55-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-03-48-55-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov376leto2,d,"{""minimum-quantity"":""1"",""path"":""ch3m2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:03 (6): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
LEAVITT CONVOLUTION
Editor,
\nI read with interest Jay Leavitt’s article in the January 2019 issue of Technical Analysis of STOCKS & COMMODITIES, “Leavitt Convolution.” I then logged in to the S&C archives at Traders.com and read all of his previously published articles in S&C ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18557.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-03-6-letters-to-s-c-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-03-6-letters-to-s-c-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov376trpe,d,"{""minimum-quantity"":""1"",""path"":""ch3m2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:03 (60–61): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
PAIR TRADES: TO BUILD OR NOT TO BUILD
Continuing with the theme of pair trading that I set out to focus on in this column for 2019, I will discuss some of the areas that offer opportunities to handle things in one of more ways, or not at all.
Tips on position building in pair trading
\nIn my opinion, it is more important to be a student of your own trading than a student of the markets. Through this sort of self-analysis, you may discover that you are accurate on your initial trades, resulting in “one-off” trades and without the need to build larger posi-tions through averaging in additional pair layers ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18584.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-03-60-61-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-03-60-61-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37732in,d,"{""minimum-quantity"":""1"",""path"":""ch3m2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:03 (7, 32): Intraday Swing Trading Basics by Ken Calhoun"",""caption-linebreaks"":""Intraday Swing Trading Basics by Ken Calhoun
Does “intraday swing trading” sound like a contradiction in terms? Well, it may actually not be because it combines the best of both worlds. Find out how this approach can solve some of the trouble spots of both daytrading and swing trading and ultimately boost profit potential.
One of the biggest risks active traders struggle with is holding positions overnight that gap against them, causing expensive stop-losses. Classic daytrading can also be challenging, because of the speed and accuracy needed to capitalize on early breakouts that move just $0.30–$0.80 during the opening hour ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18560.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-03-7-32-intraday-swing-trading-basics-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-03-7-32-intraday-swing-trading-basics-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov3783321,d,"{""minimum-quantity"":""1"",""path"":""ch3m2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:03 (8–11, 33): The 21st-Century Covered Call by Robert J. Seifert"",""caption-linebreaks"":""The 21st-Century Covered Call by Robert J. Seifert
Are you tired of writing covered calls only to see your stock get called away as it heads into the stratosphere? Here is a strategy that professional traders use to kill two birds with one option.
When I began trading options in 1983, one of the hardest trades to execute was to buy a put to protect against the downside risk inherent in the market. The problem with buying puts then and now is that the price you pay for the protection is high and it’s very hard to overcome the premium loss ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18563.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-03-8-11-33-the-21st-century-covered-call-by-robert-j-seifert-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-03-8-11-33-the-21st-century-covered-call-by-robert-j-seifert-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov371adex,d,"{""minimum-quantity"":""1"",""path"":""ch4a2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:04 (10–15): Adaptive Exponential Moving Average by Vitali Apirine"",""caption-linebreaks"":""Adaptive Exponential Moving Average by Vitali Apirine
Trends provide opportunities to eke out some profits from the market. But how do you know when a trend is a trend? Here’s one indicator that could help you figure that out.
The adaptive exponential moving average (AEMA) is an exponential moving average (EMA) designed to identify the location of the close relative to the high–low range.\nThis trend-following indicator can be used with an EMA of the same length to identify the overall trend ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18533.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-10-15-adaptive-exponential-moving-average-by-vitali-apirine-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-10-15-adaptive-exponential-moving-average-by-vitali-apirine-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov371inmo,d,"{""minimum-quantity"":""1"",""path"":""ch4a2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:04 (16–19): Inertia & Momentum In The Futures Market by Michael J. Monsler, PhD"",""caption-linebreaks"":""Inertia & Momentum In The Futures Market by Michael J. Monsler, PhD
The futures markets are known for their excessive price cycles. This cyclical nature attracts speculators who like to take on the high risks associated with them. That doesn’t mean retail traders can’t trade futures. They just need a different perspective.
One piece of advice that traders shouldn’t ignore is that you need to understand the market you’re trading. This is especially true in the futures markets, and my goal for myself is to understand and eventually model the process by which supply & demand lead to the oscillations and price trends we observe in these markets ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18536.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-16-19-inertia-momentum-in-the-futures-market-by-michael-j-monsler-phd-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-16-19-inertia-momentum-in-the-futures-market-by-michael-j-monsler-phd-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37262fu,d,"{""minimum-quantity"":""1"",""path"":""ch4a2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:04 (20, 62): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
LOOKING FOR A FOCUS ON THE FUNDAMENTALS
Do you know of any publication on futures that focuses on fundamentals, specifically longer-term fundamentals? Most of what I have found focuses on the present and very near future.
Commodity futures contracts are leveraged, which tends to encourage traders to place bets on short-term moves rather than long-term projections ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18539.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-20-62-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-20-62-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37254re,d,"{""minimum-quantity"":""1"",""path"":""ch4a2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:04 (22–23, 54): A Reliable Set Of Technical Indicators by Christian Pratsch"",""caption-linebreaks"":""A Reliable Set Of Technical Indicators by Christian Pratsch
With so many indicators to choose from, it often becomes difficult to identify a few that work well together. Here is one trader’s set of favorite indicators.
Many stock or options traders attempt to find the keys to an impossible challenge: to predict stock, ETF, futures, or currency price movements ahead of time. The availability of technical studies, online trading information, illustrations, models, and social media channels often gives people a wave of optimism ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18542.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-22-23-54-a-reliable-set-of-technical-indicators-by-christian-pratsch-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-22-23-54-a-reliable-set-of-technical-indicators-by-christian-pratsch-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov372exyo,d,"{""minimum-quantity"":""1"",""path"":""ch4a2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:04 (24–25): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
MAKING ADJUSTMENTS TO AN OPTION POSITION
I have a decent open profit on a long call position. I think the upward price trend will ultimately continue but I’m concerned that there will be a pullback in the meantime and that a lot of my profit will evaporate. I know I could sell my calls and try to buy them back later, but I’m not sure I will pull the trigger to get back in if I get out now. Is there an alternative?
Yes, there are lots of alternatives. As I wrote about last month in this column, options offer investors and traders unique opportunities to improve the reward/risk ratio for a given trade via an “adjustment” to an option position ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18587.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-24-25-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-24-25-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37229al,d,"{""minimum-quantity"":""1"",""path"":""ch4a2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:04 (26, 29): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
WHICH PLATFORM SHOULD I USE?
I am currently working on automating a strategy using EasyLanguage. I was wondering if there are other tools/languages/platforms I might also use to automate my strategy that you would be able to suggest?
Congratulations on getting a strategy close to the point of automating. I am assuming you have developed a strategy, properly tested it, and are confident in trading it. That is a major accomplishment ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-26-29-algo-q-a-by-kevin-j-davey-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-26-29-algo-q-a-by-kevin-j-davey-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-26-29-algo-q-a-by-kevin-j-davey-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov372swtr,d,"{""minimum-quantity"":""1"",""path"":""ch4a2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:04 (28–29): Swing Trading 50/200 SMA Channels by Ken Calhoun"",""caption-linebreaks"":""Swing Trading 50/200 SMA Channels by Ken Calhoun
Could a moving average channel help you find stocks that are reversing and have some momentum behind them? Try this technique for finding entries and exits while avoiding false breakouts.
If you have ever struggled with knowing when to buy a stock that has trended downwards and is starting to pivot back up, you are not alone. A simple yet over-looked swing trading strategy involves buying once price action has traveled above the 50-period simple moving average (SMA), with an exit target at ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18590.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-28-29-swing-trading-50-200-sma-channels-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-28-29-swing-trading-50-200-sma-channels-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov373inli,d,"{""minimum-quantity"":""1"",""path"":""ch4a2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:04 (30–34): Interview: Linda Bradford Raschke by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Interview: Linda Bradford Raschke by Jayanthi Gopalakrishnan
This recognizable name occupies a place in trading history after nearly four decades of trading and sharing her experiences about it. Linda Bradford Ra-schke began her trading career in 1981 on the floor of the Pacific Coast Stock Exchange before moving to the Philadelphia Stock Exchange, then trading from her home and eventually starting several hedge funds. She co-authored Street Smarts: High Probability Trading Strategies For The Futures And Equities Markets with Laurence Connors in 1996 and has recently come out with a new book, Trading Sardines: Lessons In The Markets By A Lifelong Trader. It chronicles her journey from the trading floors to becoming a top-ranked hedge fund manager and recounts memorable anecdotes and all the incredible events that happened along the way.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Linda Bradford Raschke on February 20, 2019 about some surprising aspects of her book and her career as a full-time trader.
Linda, you really bring out the lifestyle of a trader in your book.
\nIt's almost like a culture, right? That’s what I wanted to share with this book. I’ve met many great people over the years, from the exchange floors to the various profes-sional organizations in this industry such as the MTA [now the CMT Association] and IFTA (International Federation of Technical Analysts) ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18593.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-30-34-interview-linda-bradford-raschke-by-jayanthi-gopalakrishnan-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-30-34-interview-linda-bradford-raschke-by-jayanthi-gopalakrishnan-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37345fa,d,"{""minimum-quantity"":""1"",""path"":""ch4a2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:04 (36–37, 45): The Fallacy Of Adjusting The Stop-Loss To Breakeven by Fawad Razaqzada"",""caption-linebreaks"":""The Fallacy Of Adjusting The Stop-Loss To Breakeven by Fawad Razaqzada
Tightening the stop-loss is a key risk management concept, but moving it to breakeven for no technical reason invites subjectivity into your decision-making, potentially preventing yourself from making a profit.
Some inexperienced traders don’t see small losses as a necessity and will do anything to avoid them. One of the bizarre things they often do: adjusting the stop-loss from its original location to breakeven as soon as the trade goes into profit and without any technical reason ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20265.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-36-37-45-the-fallacy-of-adjusting-the-stop-loss-to-breakeven-by-fawad-razaqzada-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-36-37-45-the-fallacy-of-adjusting-the-stop-loss-to-breakeven-by-fawad-razaqzada-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov373vpa1,d,"{""minimum-quantity"":""1"",""path"":""ch4a2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:04 (38–43): The V-Trade Part 10: Trading With Leverage by Sylvain Vervoort"",""caption-linebreaks"":""The V-Trade Part 10: Trading With Leverage by Sylvain Vervoort
Parts 1 through 9 of this series covered the building blocks for a complete trading strategy, including the technical analysis used and the trading rules. The series continues here with some practical information on getting started and setting up a trading account.
Those of you who followed my V-Trade series of articles in 2018 will know that in parts 1 to 9, I presented all you need to know about technical analysis and the trading rules in my V-Trade (Vervoort trading) strategy. Here in part 10, I’ll introduce you to what I am trading in the foreign exchange (forex) and contracts for difference (CFD) market and show you a few important things you should be aware of ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20268.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-38-43-the-v-trade-part-10-trading-with-leverage-by-sylvain-vervoort-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-38-43-the-v-trade-part-10-trading-with-leverage-by-sylvain-vervoort-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov374trpe1,d,"{""minimum-quantity"":""1"",""path"":""ch4a2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:04 (44–45): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
TECHNICAL CHART PATTERNS: WHAT THEY MIGHT BE, WHAT THEY MIGHT NOT BE
What constitutes a technical pattern? Is there a difference in how technical patterns should be viewed if trading different instruments? That is, is there a difference between the chart patterns of equities, ETFs, market indexes, futures, commodities, forex, crypto currencies, and alt-coins?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20271.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-44-45-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-44-45-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov374trti3,d,"{""minimum-quantity"":""1"",""path"":""ch4a2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:04 (46–54): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Vitali Apirine’s article in this issue, “Adaptive Exponential Moving Average.” Here, we present the April 2019 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this is-sue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-46-54-traders-tips-by-technical-analysis-inc-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-46-54-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-46-54-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov375bofo,d,"{""minimum-quantity"":""1"",""path"":""ch4a2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:04 (55): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
Trading Sardines: Lessons In The Markets From A Lifelong Trader by Linda Bradford Raschke
The 100 Best Stocks To Buy In 2019 by Peter Sander and Scott Bobo
The Everything Guide To Investing In Cryptocurrency: From Bitcoin To Ripple, The Safe And Secure Way To Buy, Trade, And Mine Digital Currencies by Ryan Derousseau
Tailored Wealth Management: Exploring The Cause And Effect Of Financial Success by Niall J. Gannon
Extraordinary Popular Delusions And The Madness Of Crowds by Charles Mackay"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20316.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-55-books-for-traders-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-55-books-for-traders-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37640se,d,"{""minimum-quantity"":""1"",""path"":""ch4a2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:04 (60–62): 401(k): Set It And Forget It by Peter Smolens"",""caption-linebreaks"":""401(k): Set It And Forget It by Peter Smolens
Worried about a shortfall in your retirement income? Don’t overlook using your retirement accounts to prepare for your days ahead.
It's common for people in the middle of their working life to think they’ll never be able to retire—that they’ll have to keep on working until they drop. The reality is that may not be so easy to do, as many baby boomers are now finding out. The grind of getting up each morning and going to work gets rougher the older you become ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20319.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-60-62-401-k-set-it-and-forget-it-by-peter-smolens-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-60-62-401-k-set-it-and-forget-it-by-peter-smolens-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37619be1,d,"{""minimum-quantity"":""1"",""path"":""faarfr2011"",""ysw-page-title"":""Stocks & Commodities V. 37:04 (6–8, 19): The Best Chart Pattern Entry by Thomas Bulkowski"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-21830.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-6-8-19-the-best-chart-pattern-entry-by-thomas-bulkowski-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-6-8-19-the-best-chart-pattern-entry-by-thomas-bulkowski-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37619be,d,"{""minimum-quantity"":""1"",""path"":""ch4a2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:04 (6–8, 19): The Best Chart Pattern Entry by Thomas Bulkowski"",""caption-linebreaks"":""The Best Chart Pattern Entry by Thomas Bulkowski
Can traders better time the entry?
You have just identified a twin bottom in a stock you wish to buy. Should you buy the stock immediately or wait for it to become a valid double bottom? The answer to that question could make a difference to your wallet.
Before I explain how I found the answer, let me define some terms. I used a double bottom for the tests in this article. What is a double bottom? Figure 1 shows an example of one ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20322.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-6-8-19-the-best-chart-pattern-entry-by-thomas-bulkowski-7.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-04-6-8-19-the-best-chart-pattern-entry-by-thomas-bulkowski-8.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov371alqa,d,"{""minimum-quantity"":""1"",""path"":""ch5m2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:05 (14–15): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
TIPS FOR BACKTESTING
I created the following backtest (see Figure 1). What do you think of it?
Thanks for the question. It reminds me of the old days, when traders first started developing and optimizing strategies using trading software platforms ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-05-14-15-algo-q-a-by-kevin-j-davey-37.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-05-14-15-algo-q-a-by-kevin-j-davey-40.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-05-14-15-algo-q-a-by-kevin-j-davey-41.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov371dobo,d,"{""minimum-quantity"":""1"",""path"":""ch5m2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:05 (16–21): Double Bottom Pattern: Selling Earlier? by Pawel Kosinski"",""caption-linebreaks"":""Double Bottom Pattern: Selling Earlier? by Pawel Kosinski
When you enter a trade based on a chart pattern such as the double bottom, sometimes you may exit too early or sit on it for too long. Here’s a look at different exit scenarios using the double bottom pattern.
Buying a stock is simple and has a “feel good” vibe. After buying it, you can imagine the stock’s price moving upward quickly. After some time elapses, you may start feeling uneasy—even if the price has increased and your unrealized gain is decent. You know that in a fraction of a second the rally could be over ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18512.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-05-16-21-double-bottom-pattern-selling-earlier-by-pawel-kosinski-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-05-16-21-double-bottom-pattern-selling-earlier-by-pawel-kosinski-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov372viin,d,"{""minimum-quantity"":""1"",""path"":""ch5m2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:05 (22–29): A Visual Indicator by Kevin D. Morgan"",""caption-linebreaks"":""A Visual Indicator by Kevin D. Morgan
Many technical indicators can be used to detect trends. Active traders need information about a trend on multiple time-frame charts at a glance. Here’s a bar color-coded visual trend indicator that combines the use of ADX and CCI and gives you instant multi-timeframe, high-resolution trend state information so you can invoke “with the trend” trades.
Every novice or intermediate-level trader is well advised to “trade with the trend.” But the devil is in the details, starting with what a trend is and what defines the trend. If these questions aren’t clearly and concisely addressed and you have a high-fidelity trend indicator in place, then “trading with the trend” is at best vague advice ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18515.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-05-22-29-a-visual-indicator-by-kevin-d-morgan-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-05-22-29-a-visual-indicator-by-kevin-d-morgan-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov373crtr,d,"{""minimum-quantity"":""1"",""path"":""ch5m2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:05 (30–34): Creating Trading Strategies With David Pieper by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Creating Trading Strategies With David Pieper by Jayanthi Gopalakrishnan
David Pieper lives in Germany and has 20 years of financial market experience. After earning the designation of Certified International Investment Analyst (CIIA), he spent several years in investment research at a major German state bank. He is currently a senior technical analyst with Tradesignal Ltd., where he provides consulting and training for institutional clients in the energy and financial sectors. His passion for technical analysis and trading is evident in his published articles and at the blog www.welovealgos.com. For his private trading decisions he relies completely on technical analysis and systematic trading strategies that he has developed over the years.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with David Pieper on March 18, 2019 about how he goes about coming up with a system, what is important when testing it, and what it takes to succeed with it.
David, tell us about your background. How did you got interested in the financial markets and especially technical analysis?
\nMy interest in the financial markets started when I was studying business economics. That was at the end of the 1990s, so it was in the middle of the dotcom bubble ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18518.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-05-30-34-creating-trading-strategies-with-david-pieper-by-jayanthi-gopalakrishnan-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-05-30-34-creating-trading-strategies-with-david-pieper-by-jayanthi-gopalakrishnan-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37362fu,d,"{""minimum-quantity"":""1"",""path"":""ch5m2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:05 (35, 62): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
FUTURES SPREAD TRADING
Is trading futures spreads a good way to lower risk when speculating in the commodity markets?
As with most things in finance, the answer to this question is, “it depends.” By definition, a spread is generally the difference between two prices of futures contracts ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18500.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-05-35-62-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-05-35-62-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov373vpa11,d,"{""minimum-quantity"":""1"",""path"":""ch5m2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:05 (36–39): The V-Trade Part 10b: The Expert System by Sylvain Vervoort"",""caption-linebreaks"":""The V-Trade Part 10b: The Expert System by Sylvain Vervoort
In this continuation of an ongoing series on setting up a system to trade, we’ll present a run-through of all the specs involved in the expert system that could help you place your trades.
From the V-Trade technical analysis and trading rules presented in the previous articles in this series, you learned what to trade and when to trade. With the built-in trading access present on all trading platforms, you are able to open and close trades manually ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18503.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-05-36-39-the-v-trade-part-10b-the-expert-system-by-sylvain-vervoort-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-05-36-39-the-v-trade-part-10b-the-expert-system-by-sylvain-vervoort-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37456et,d,"{""minimum-quantity"":""1"",""path"":""ch5m2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:05 (40–43, 56): ETF/ETN Investing In The Dow Jones Industrial Average by Leslie N. Masonson"",""caption-linebreaks"":""ETF/ETN Investing In The Dow Jones Industrial Average by Leslie N. Masonson
The Dow Jones Industrial Average is the most well-known market index. In this article, we look at the so-called “Dogs of the Dow” strategy along with its performance record over the years. Then a handful of relevant ETFs that have Dow exposure are given for dividend-conscious investors.
The Dow Jones Industrial Average (DJIA) is the second-oldest (after the Dow Jones Transportation Index), most well-known, and globally followed stock market index ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18506.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-05-40-43-56-etf-etn-investing-in-the-dow-jones-industrial-average-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-05-40-43-56-etf-etn-investing-in-the-dow-jones-industrial-average-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov374exyo1,d,"{""minimum-quantity"":""1"",""path"":""ch5m2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:05 (44–45): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
SO MANY CHOICES
I have been trading options for a little while but would like to branch out be-yond simply buying calls and puts. The problem I have is trying to decide when to use which strategy. There seem to be so many factors to consider (time, price, volatility, etc.) I was wondering if there is a way to make some objective decisions rather than just “trusting my gut?”
You make a good point. My standard line is that the good news about trading options and the bad news about trading options are the same ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18509.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-05-44-45-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-05-44-45-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37462tr,d,"{""minimum-quantity"":""1"",""path"":""ch5m2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:05 (46–47, 62): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
UTILIZING PRICE POINTS, SIGNALS & THE EXPECTED VALUE FORMULA
How do you use signals and actionable levels to harvest noise?
First, let’s discuss what price points are and what they aren’t. Price points are all those levels, mile-markers, and reference areas that could be utilized to act on. There are obviously a significant number of price points that could be included, but you need to look at the main attractions ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20244.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-05-46-47-62-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-05-46-47-62-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov374trti4,d,"{""minimum-quantity"":""1"",""path"":""ch5m2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:05 (48–55): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Anthony Garner's article in this issue, “Backtesting A Mean-Reversion Strategy In Python.” Here, we present the May 2019 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this is-sue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20247.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-05-48-55-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-05-48-55-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov376leto3,d,"{""minimum-quantity"":""1"",""path"":""ch5m2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:05 (6): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
CODE FOR SRSI
Editor,
\nI liked the article “Sell Relative Strength Index” by Howard Wang in the February 2019 issue of STOCKS & COMMODITIES and am keen to try it, but I believe there may be an error in the TradeStation EasyLanguage code that was provided in the article. Can you please advise?
\nRAY"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-05-6-letters-to-s-c-by-technical-analysis-inc-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-05-6-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-05-6-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov376imof,d,"{""minimum-quantity"":""1"",""path"":""ch5m2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:05 (60–62): The Importance Of Being Sufficiently Capitalized by Fawad Razaqzada"",""caption-linebreaks"":""The Importance Of Being Sufficiently Capitalized by Fawad Razaqzada
Making money from trading can be very difficult. There are several reasons for this, but one root cause is not starting with enough capital. Here’s a way to boost confidence and your account size.
If you have been involved in the markets for a while, you will know that making money from trading is not easy and can in fact be very difficult at times. As shocking as it may sound, it is hardly surprising that many traders struggle in this business ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20250.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-05-60-62-the-importance-of-being-sufficiently-capitalized-by-fawad-razaqzada-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-05-60-62-the-importance-of-being-sufficiently-capitalized-by-fawad-razaqzada-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37721me,d,"{""minimum-quantity"":""1"",""path"":""ch5m2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:05 (7, 21): Mean-Reversion Daytrading, Revisited by Ken Calhoun"",""caption-linebreaks"":""Mean-Reversion Daytrading, Revisited by Ken Calhoun
Take it a step further with a second look at this common scenario in daytrading.
After a stock breaks out to new highs for the day, it will often pull back to the middle of the trading range ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20238.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-05-7-21-mean-reversion-daytrading-revisited-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-05-7-21-mean-reversion-daytrading-revisited-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37856ba,d,"{""minimum-quantity"":""1"",""path"":""ch5m2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:05 (8–13, 56): Backtesting A Mean-Reversion Strategy In Python by Anthony Garner"",""caption-linebreaks"":""Backtesting A Mean-Reversion Strategy In Python by Anthony Garner
You hear the term “mean reversion” thrown around a lot. What does it really mean and how can you create a mean-reversion strategy you can backtest? Here’s a step-by-step guide.
When prices drift too far away from the mean, there’s a strong chance they will revert to the mean. To put this theory to the test, I applied a mean-reversion system to the SPDR S&P 500 ETF (SPY) ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20241.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-05-8-13-56-backtesting-a-mean-reversion-strategy-in-python-by-anthony-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-05-8-13-56-backtesting-a-mean-reversion-strategy-in-python-by-anthony-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov371fufo,d,"{""minimum-quantity"":""1"",""path"":""ch6j2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:06 (16–17): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
NEW MICRO FUTURES CONTRACTS
Is the CME’s new micro S&P 500 futures contract a good way to dip a toe into the futures markets with lower risk? What do we need to know?
In my view, the CME’s new micro stock index futures contracts will act as a bridge between the worlds of stock trading and futures trading. Its small contract size translates into less risk and lower margins for futures traders ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-06-16-17-futures-for-you-by-carley-garner-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-06-16-17-futures-for-you-by-carley-garner-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-06-16-17-futures-for-you-by-carley-garner-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov371efof,d,"{""minimum-quantity"":""1"",""path"":""ch6j2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:06 (18–25): The Effect Of Elections On Stock Market Returns by Markos Katsanos"",""caption-linebreaks"":""The Effect Of Elections On Stock Market Returns by Markos Katsanos
Do elections influence the stock market? Is there a pattern that investors can take advantage of? This author’s statistical research suggests that there is one pattern that produced more than 60% average returns during the election periods in countries around the world.
There is no doubt that political events can influence stock market returns. Upcoming elections are especially important since they can affect the economic and monetary policy of the country.
While there is a plethora of studies and multiyear statistical research concerning the performance of the US stock market during the Presidential election cycle, such studies are few or nonexistent for other countries around the world ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20223.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-06-18-25-the-effect-of-elections-on-stock-market-returns-by-markos-katsanos-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-06-18-25-the-effect-of-elections-on-stock-market-returns-by-markos-katsanos-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov372vpa1,d,"{""minimum-quantity"":""1"",""path"":""ch6j2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:06 (26–35): The V-Trade Part 11: Expert Manual Trading by Sylvain Vervoort"",""caption-linebreaks"":""The V-Trade Part 11: Expert Manual Trading by Sylvain Vervoort
In this series, we’ve discussed trading concepts and techniques, technical analysis, and getting set up to trade. In this part, which continues with using an expert system to trade, we’ll look at using the expert system for manual and semi-automatic trading.
After presenting an overview of the V-Trade expert system in part 10, this time I’ll take a detailed look at the different manual trading options and possibilities that I believe should be present in any expert system ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20253.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-06-26-35-the-v-trade-part-11-expert-manual-trading-by-sylvain-vervoort-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-06-26-35-the-v-trade-part-11-expert-manual-trading-by-sylvain-vervoort-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37356ta,d,"{""minimum-quantity"":""1"",""path"":""ch6j2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:06 (36–39, 56): Talking Volatility With John Bollinger by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""Talking Volatility With John Bollinger by Jayanthi Gopalakrishnan
John Bollinger is best known for creating Bollinger Bands. Traders and investors worldwide use these bands to help assess expected price action in the financial markets, and the bands are a feature found in most financial charting software and charting websites. His book Bollinger On Bollinger Bands has been translated into 12 languages. Bollinger is the recipient of several major achievement awards—among them, the Technical Securities Analysts Association of San Francisco Lifetime Award For Outstanding Achievement In Technical Analysis; the 2005 CMT Association Annual Award For Outstanding Contribution To The Field Of Technical Analysis; and the IFTA 2015 Lifetime Achievement Award. His website, www.BollingerBands.com, provides educational materials, access to the Bollinger Bands Letter, and information about Bollinger Band Tool Kits on various platforms. The site www.BollingerBands.us provides charts, trading systems, and trading signals for investors.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with John Bollinger on April 16, 2019 about his renowned bands and his insights into market volatility based on years of experience and analysis.
It’s been a while since we spoke. What have you been up to in the last few years?
\nThe most significant thing I have been focusing on over the past years is continuing to study volatility. I think that despite volatility having been studied virtually endlessly by academics and practitioners, it is still poorly understood. All you have to do is look at a volatility event such as the one we got last December and then read the articles in the financial press about it ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-06-36-39-56-talking-volatility-with-john-bollinger-by-jayanthi-gopalakrishnan-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-06-36-39-56-talking-volatility-with-john-bollinger-by-jayanthi-gopalakrishnan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-06-36-39-56-talking-volatility-with-john-bollinger-by-jayanthi-gopalakrishnan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37462pr,d,"{""minimum-quantity"":""1"",""path"":""ch6j2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:06 (40–42, 62): Product Review: The 3S Code by Barbara Star, PhD"",""caption-linebreaks"":""Product Review: The 3S Code by Barbara Star, PhD
SEASONAL SWING TRADER
Website: seasonalswingtrader.com
\nRequirements: Works with thinkorswim, TradeStation v.9 or v.10, NinjaTrader v.8, or MetaTrader4 platform
\nProduct: Indicator and scanner for locating price swing top and bottom reversals
\nPrice: $399 one-time fee
One of the skills traders strive to achieve is the ability to identify a change in price trend as early as possible. Silas Peters has made it even easier to identity those changes with his recently launched product, The 3S Code. The goal is to find a pattern that reverses the prevailing trend in any timeframe for the stock, ETF, commodity, and forex markets ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-06-40-42-62-product-review-the-3s-code-by-barbara-star-phd-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-06-40-42-62-product-review-the-3s-code-by-barbara-star-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-06-40-42-62-product-review-the-3s-code-by-barbara-star-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov374exyo2,d,"{""minimum-quantity"":""1"",""path"":""ch6j2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:06 (42–43): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
PLAYING MARKET VOLATILITY WITH RATIO BACKSPREADS
I keep hearing that there are ways to take advantage of low (and/or high) volatility via the use of options. Can you give me an example?
Absolutely. Extremes in volatility can offer option traders many opportunities that aren’t available to stock traders. Let’s look at one example. The iShares Silver Trust (SLV) is an ETF designed to track the price of silver bullion. As of the date in question (see Figure 1), there are a few key factors ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20259.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-06-42-43-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-06-42-43-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37462ho,d,"{""minimum-quantity"":""1"",""path"":""ch6j2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:06 (44–46, 62): How To Avoid Typical Trading Mistakes by Fawad Razaqzada"",""caption-linebreaks"":""How To Avoid Typical Trading Mistakes by Fawad Razaqzada
Sometimes knowing what not to do is as important as knowing what to do. To help you overcome any obstacles that may get in the way of your trading success, here are some suggestions to help smooth the way.
The road to learning how to trade well can be steep. But take heart: Newer traders can shorten the learning curve and minimize mistakes by following some guidelines. In this article, I’ll offer some practical pointers, mostly gathered from my own experience. I hope these suggestions will help you improve your trading experience ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-06-44-46-62-how-to-avoid-typical-trading-mistakes-by-fawad-razaqzada-25.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-06-44-46-62-how-to-avoid-typical-trading-mistakes-by-fawad-razaqzada-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-06-44-46-62-how-to-avoid-typical-trading-mistakes-by-fawad-razaqzada-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37462al,d,"{""minimum-quantity"":""1"",""path"":""ch6j2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:06 (47, 62): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
SUPERVISING YOUR AUTOMATED TRADING
I am considering algo trading, but am worried about having problems with orders, etc. Can you share some tips to put my mind at ease?
Great question! CME, the major US futures exchange, has supervision rules for anyone running automated strategies. TradeStation, a major broker and software provider in the algo world, always advises clients that ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18479.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-06-47-62-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-06-47-62-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov374trti5,d,"{""minimum-quantity"":""1"",""path"":""ch6j2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:06 (48–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is John Ehlers’ article in this issue, “Fourier Series Model Of The Market.” Here, we present the June 2019 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18482.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-06-48-56-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-06-48-56-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov376leto4,d,"{""minimum-quantity"":""1"",""path"":""ch6j2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:06 (6): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
FORMULAS FOR STOCK SCANNING
Editor,
\nWith great interest I have read the article “A Reliable Set Of Technical Indicators” in the April 2019 issue of STOCKS & COMMODITIES. In the article, author Christian Pratsch writes that he uses the following formula to scan for long candidates:\nFor scanning LONG candidates:\n(STOC12,1 > 78) OR ((STOC12,1 < 78) AND (STOC12,1 > AVG(STOC12,1,3)))
\nand the following formula to scan for short candidates ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-06-6-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-06-6-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-06-6-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov376trpe1,d,"{""minimum-quantity"":""1"",""path"":""ch6j2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:06 (60–61): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
COGNITIVE BIASES THAT INFLUENCE YOUR TRADING OUTCOMES
The door to the trading world opens and we step into the unknown, probability-blind.
If that isn’t enough, we have monsters that lurk in the shadows and influence our judgment, decisions, and ability to analyze our resulting actions correctly ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18485.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-06-60-61-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-06-60-61-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37714co,d,"{""minimum-quantity"":""1"",""path"":""ch6j2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:06 (7, 14): Conditional OTO Breakouts by Ken Calhoun"",""caption-linebreaks"":""Conditional OTO Breakouts by Ken Calhoun
Using one-triggers-the-other (OTO) conditional orders is ideal for breakout trading. Here’s why.
Whenever you are looking to enter a new position, it is important to combine technical analysis of the chart patterns with trade management strategies designed to minimize risk and improve profitability. Using conditional orders provides a valuable trade management tool that can help you enter and exit your positions more effectively ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20217.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-06-7-14-conditional-oto-breakouts-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-06-7-14-conditional-oto-breakouts-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov378fose,d,"{""minimum-quantity"":""1"",""path"":""ch6j2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:06 (8–14): Fourier Series Model Of The Market by John F. Ehlers"",""caption-linebreaks"":""Fourier Series Model Of The Market by John F. Ehlers
Traders are aware that cyclical activity can be observed in market data. Here’s a way to use a Fourier series indicator to model the market and describe cyclic market activity so you can develop realistic trading strategy rules for swing trades.
Even the most casual observer will note that cycles are present in market data. Since this is so obvious, it is natural to try to embed the analysis of these cycles into trading strategies to make them better and more profitable. In this article, I’ll describe such analysis ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20220.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-06-8-14-fourier-series-model-of-the-market-by-john-f-ehlers-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-06-8-14-fourier-series-model-of-the-market-by-john-f-ehlers-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37144st,d,"{""minimum-quantity"":""1"",""path"":""ch7j2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:07 (16–18, 44): Stop-Loss Realities by Karen Wong"",""caption-linebreaks"":""Stop-Loss Realities by Karen Wong
Long hours reading multipart fantasy fiction or binge-watching “Game Of Thrones” episodes can eventually get you. Yes, mythical dragons can enter a trader’s life and show up unexpectedly—when you want to place stop-losses. This leads you to exit trades too early and end up with zero profits. Here’s how to keep the dragons at bay.
In the world of forex (FX) trading, one key factor to ensure your account doesn’t reach rock bottom in a hurry is to have a stop-loss in place. But where do you place this stop-loss? It’s a question that should have an easy answer, but it turns out the solution is much more complex ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19300.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-07-16-18-44-stop-loss-realities-by-karen-wong-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-07-16-18-44-stop-loss-realities-by-karen-wong-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov372vpa11,d,"{""minimum-quantity"":""1"",""path"":""ch7j2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:07 (20–25): The V-Trade Part 12 : Expert Automatic Trading by Sylvain Vervoort"",""caption-linebreaks"":""The V-Trade Part 12 : Expert Automatic Trading by Sylvain Vervoort
In part 11 of this series, tools for manual and semi-automatic trading with trendlines using an expert system were presented. In this part, which is the third on using an expert system, we look at technical analysis techniques that can be used with automated trading.
While daytrading, it’s not always possible to be in front of your trading platform all the time. So wouldn’t it be nice to have a trading “expert” at your service to mind your trades even when you step away? There are other advantages as well to using an expert system, such as encoding your buy & sell rules, and helping you to keep some of the emotions out of your decision-making ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19252.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-07-20-25-the-v-trade-part-12-expert-automatic-trading-by-sylvain-vervoort-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-07-20-25-the-v-trade-part-12-expert-automatic-trading-by-sylvain-vervoort-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov372loet,d,"{""minimum-quantity"":""1"",""path"":""ch7j2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:07 (26–30): Low-Volatility ETFs Outperform by Leslie N. Masonson"",""caption-linebreaks"":""Low-Volatility ETFs Outperform by Leslie N. Masonson
Are you looking for a less-risky approach to ETF investing that still captures the return of the S&P 500 index or better? Then consider low-volatility ETFs, which have performed better than expected. A number of high-quality, low-volatility ETFs have been available for at least eight years. Here, we’ll review the top ETFs in this small slice of the ETF market.
Low volatility is considered one of the viable factors that can be accessed via smart beta ETFs. The other factors are quality, value, momentum, dividends, and high beta. Numerous academic and professional studies as well as white papers have evaluated the efficacy of these factors. The findings indicate that all of them can be used to enhance portfolio performance over specific time periods ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17404.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-07-26-30-low-volatility-etfs-outperform-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-07-26-30-low-volatility-etfs-outperform-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37362fu1,d,"{""minimum-quantity"":""1"",""path"":""ch7j2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:07 (31, 62): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
HEDGING WITH MICRO EMINIS
Can the new micro emini stock index futures traded at the Chicago Mercantile Exchange be used to hedge traditional stock portfolio risk?
Absolutely! The futures markets were created as a means of shifting price risk from one person to the other; the micro emini stock index futures are no different. So if you wish to eliminate, or at least mitigate, price risk in any asset class listed on the futures exchange, you can choose to do so by taking an equal and opposite position in the futures market as is held in the cash market ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19229.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-07-31-62-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-07-31-62-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov373wayo,d,"{""minimum-quantity"":""1"",""path"":""ch7j2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:07 (32–37): The Way Of Trading With Ian Murphy by Jayanthi Gopalakrishnan"",""caption-linebreaks"":""The Way Of Trading With Ian Murphy by Jayanthi Gopalakrishnan
Ian Murphy trades his own account using trend-following, swing trading, and daytrading strategies. He studied under experienced traders such as Alexander Elder and Kerry Lovvorn. Working in metal recycling early in his career led him to precious metals and then to becoming an independent trader, not just of commodities but stocks and other financial instruments.
He brought together the lessons learned in trading over the years in a book, Way of the Trader. In it, written to help other traders find their own way to success, he shares both the highs and lows of his trading experiences and identifies what he feels are the most important aspects of his journey. Inspiration for the book came from interactions with other traders, which helped him to distill his experiences into guiding principles.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Ian Murphy on May 13, 2019 about how he evolved from trading physical metals and working in insurance risk management to trading financial instruments, and how so many of those same important principles apply.
Can you tell us a little bit about how you got interested in the financial markets and what led you to trading?
\nSure. I finished college in the 1980s in Ireland and I originally trained in electronics. I started to work for US firms based in Ireland—Westinghouse and Verbatim. And that kind of piqued my interest in stocks ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17157.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-07-32-37-the-way-of-trading-with-ian-murphy-by-jayanthi-gopalakrishnan-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-07-32-37-the-way-of-trading-with-ian-murphy-by-jayanthi-gopalakrishnan-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37356an,d,"{""minimum-quantity"":""1"",""path"":""ch7j2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:07 (38–41, 56): Analysis Of Price Change & Trend Direction by Alexandr Konovalstev"",""caption-linebreaks"":""Analysis Of Price Change & Trend Direction by Alexandr Konovalstev
Did you ever think that price change or movement within a trend can be described by the laws of mechanics of rigid body motion? It can, and here’s a method that looks at it from that perspective.
You can think of price change (movement) in a trend as a uniformly accelerated motion of a rigid body. To do that, you must figure out and calculate some parameters such as movement, path, and time. Once you know these parameters, you can calculate velocity and acceleration, which are two variables that change the closing price within a trend. You can then do a comprehensive system analysis of data obtained on four timeframes and interpret this data. The interpretation allows you to spot some signals, on which basis you could predict the direction of price change in a trend. I used some elements of “blockchain” technology for collecting, processing, and storing information ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18950.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-07-38-41-56-analysis-of-price-change-trend-direction-by-alexandr-konovalstev-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-07-38-41-56-analysis-of-price-change-trend-direction-by-alexandr-konovalstev-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov374exyo3,d,"{""minimum-quantity"":""1"",""path"":""ch7j2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:07 (42–44): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
REVERSE CALENDAR SPREADS
I have traded calendar spreads to take advantage of neutral, low-volatility situations and time decay. But I read recently about a “reverse calendar spread” and was curious to know if this is a viable strategy and if so, how it works.
A reverse calendar spread is exactly the opposite of a more traditional calendar spread. A traditional calendar spread buys a longer-term call or put option and sells a shorter-term call or put option in hopes that the shorter-term option will lose significant value due to time decay ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17142.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-07-42-44-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-07-42-44-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37447al,d,"{""minimum-quantity"":""1"",""path"":""ch7j2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:07 (45, 47): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
TRADING ON A SIMULATOR
I have been on a trading simulator for a while, and am consistently profitable. What should I do next?
I know many trading-simulator millionaires, but very few real-money trading millionaires. That could be because I am hanging around the wrong people (my mom always warned me about that!), but it’s more likely because simulated trading is a lot different than actual, real-money trading ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18935.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-07-45-47-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-07-45-47-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov374trpe2,d,"{""minimum-quantity"":""1"",""path"":""ch7j2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:07 (46–47): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
A VIEW OF EARTH FROM LOWER ORBIT
I have nausea—not from volatility but from observations from my perch.
Hype is everywhere, from every smartphone-empowered self-promoter, to sales and marketing of big business, to the new companies entering private or public arenas. I can observe:
• Sometimes, things are just early
\n• Sometimes, they are late
\n• Very rarely, they are just right.
By “things” I mean new companies, new products, or any trades revolving around these ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-07-46-47-trading-perspectives-by-rob-friesen-25.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-07-46-47-trading-perspectives-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-07-46-47-trading-perspectives-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov374trti6,d,"{""minimum-quantity"":""1"",""path"":""ch7j2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:07 (48–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Vitali Apirine’s article in this issue, “Exponential Deviation Bands.” Here, we present the July 2019 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18929.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-07-48-56-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-07-48-56-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov376howt,d,"{""minimum-quantity"":""1"",""path"":""ch7j2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:07 (60–62): How To Turn A Painful Experience Into A Positive One by Claudio Demb, MD"",""caption-linebreaks"":""How To Turn A Painful Experience Into A Positive One by Claudio Demb, MD
Any missed opportunity can feel painful, and in trading and investing it’s something we all experience. Here’s one way to take such a situation and creatively transform it into a way forward.
You saw a stock that had all the ingredients to go up, flashing the screaming buy signal, but for some reason you didn’t pull the trigger. And of course the stock ran away without you. Painful ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18897.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-07-60-62-how-to-turn-a-painful-experience-into-a-positive-one-by-claudio-demb-md-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-07-60-62-how-to-turn-a-painful-experience-into-a-positive-one-by-claudio-demb-md-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov376etfa,d,"{""minimum-quantity"":""1"",""path"":""ch7j2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:07 (6–7): ETF Arbitrage Daytrading by Ken Calhoun"",""caption-linebreaks"":""ETF Arbitrage Daytrading by Ken Calhoun
There are few guarantees in the stock market, but here is one you may be able to start using.
An old Wall Street saying is that “every trader needs an edge” to be successful. The challenge of course is that stock charts are often random and unpredictable. There is only one consistent edge I have found that is exploitable for profits, which is simultaneously trading inversely correlated ETFs (and ETNs). This occurs because when one goes up, the other is guaranteed to go down ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17304.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-07-6-7-etf-arbitrage-daytrading-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-07-6-7-etf-arbitrage-daytrading-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov378exde,d,"{""minimum-quantity"":""1"",""path"":""ch7j2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:07 (8–14): Exponential Deviation Bands by Vitali Apirine"",""caption-linebreaks"":""Exponential Deviation Bands by Vitali Apirine
Trading bands (also called price envelopes or channels) can help you read the trend on a chart. Here’s a version that is well-suited for trend following.
In he past, I’ve written about exponential standard deviation bands. Here, I will present a slightly different version, useful for trend following. This version uses exponential deviation instead of the more usual standard deviation in its calculation. In addition, these bands can be based on either a simple moving average or an exponential moving average ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19142.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-07-8-14-exponential-deviation-bands-by-vitali-apirine-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-07-8-14-exponential-deviation-bands-by-vitali-apirine-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov371trwi,d,"{""minimum-quantity"":""1"",""path"":""ch8a2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:08 (12–16): Trading With Fibonacci by Fawad Razaqzada"",""caption-linebreaks"":""Trading With Fibonacci by Fawad Razaqzada
Though the mathematician known as “Fibonacci” composed his major work back in the 13th century, his concepts are a popular component of chart reading today. Find out how you could be using Fibonacci tools on your charts and in your trading to help take some of the subjectivity out of your decision-making and to better understand what other traders may be seeing and thinking.
Analysis styles vary considerably among market participants. There are those who like to use moving averages; some prefer candlestick patterns, and others incorporate various technical indicators into their trading. Then there are those who base their trading decisions on horizontal or vertical trendlines ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19751.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-12-16-trading-with-fibonacci-by-fawad-razaqzada-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-12-16-trading-with-fibonacci-by-fawad-razaqzada-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37122fu,d,"{""minimum-quantity"":""1"",""path"":""ch8a2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:08 (17, 22): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
THE INS & OUTS OF FREE LEVERAGE
Could you explain how leverage works in the futures markets and how it’s “free”?
Those accustomed to trading stocks have come to accept the fact that short selling is only possible after borrowing shares from a brokerage at an additional cost. Further, stock traders know that purchasing more stock than they have the available cash for is referred to as trading on margin and involves paying interest to the brokerage for money borrowed to make the transaction ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18037.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-17-22-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-17-22-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov371blmo,d,"{""minimum-quantity"":""1"",""path"":""ch8a2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:08 (18–22): The Black-Scholes Model Demystified by Ken Muranaka"",""caption-linebreaks"":""The Black-Scholes Model Demystified by Ken Muranaka
The Black-Scholes formula looks complicated but understanding its key components actually only requires some basic arithmetic and elementary algebra. Since trading derivatives always involves this model in one way or another, we’ll break down the logic behind the formula.
Traders in derivative markets actively use risk parameters such as delta and gamma. They also use the Black-Scholes model for analysis, something that is also used in corporate finance and even in areas unrelated to finance. Though the Nobel-winning Black-Scholes model (BSM) is a partial differential equation, each derivation step of this mathematical model can be understood with some simple arithmetic and elementary algebra ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19745.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-18-22-the-black-scholes-model-demysti-64257-ed-by-ken-muranaka-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-18-22-the-black-scholes-model-demysti-64257-ed-by-ken-muranaka-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37235al,d,"{""minimum-quantity"":""1"",""path"":""ch8a2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:08 (23, 35): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
INTRADAY TRADING WITH ALGOS
Can a strategy be written that works on three-minute charts? Or what is the smallest timeframe that works?
The great thing about creating your own algo strategies is that you are in control. You get to pick the markets, the timeframes, and so on. You can trade as often or as little as you like, and you can tailor a strategy to fit your work and life schedule ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19748.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-23-35-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-23-35-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37227ex,d,"{""minimum-quantity"":""1"",""path"":""ch8a2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:08 (24–25, 27): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
THE MODIDOR STRATEGY
Are there any strategies beyond the ones that most option literature details (long naked, credit spreads, debit spreads, calendars, straddle, etc.) that can be useful to traders who are not necessarily experts or who do not have a lot of experience?
Yes. But before getting into that, here are a few salient points. With this column, I typically try to stick to the “standard” strategies for several reasons. First, I believe that a lot of individuals new to option trading read this column, so I generally prefer to stick to the basics. While I may at some point get around to discussing things like “delta neutral” or “gamma scalping,” the reality is that while these things can absolutely be profitable, they do not represent the type of strategy that the “average” trader tends to pursue (or is prepared to pursue successfully) ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-24-25-27-explore-your-options-by-jay-kaeppel-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-24-25-27-explore-your-options-by-jay-kaeppel-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-24-25-27-explore-your-options-by-jay-kaeppel-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov372stde,d,"{""minimum-quantity"":""1"",""path"":""ch8a2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:08 (26–27): Strategy Design For Option Traders by Ashok Yarlagadda"",""caption-linebreaks"":""Strategy Design For Option Traders by Ashok Yarlagadda
Need a clear picture of what it takes to employ a successful trading strategy? Here it is.
Going into an option trade without a plan is usually a recipe for disaster. Why? Unless the trader is very experienced and has learned to master his emotions around investing, then his trade decisions will be biased by subjective views. Greed and fear can cause traders to do illogical things, especially when the trader does not follow a plan. Is there a better way? Yes. Develop a clear, objective trading strategy ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18118.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-26-27-strategy-design-for-option-traders-by-ashok-yarlagadda-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-26-27-strategy-design-for-option-traders-by-ashok-yarlagadda-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37261re,d,"{""minimum-quantity"":""1"",""path"":""ch8a2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:08 (28–29, 61): Review: ProfitLocker Pro by Barbara Star, PhD"",""caption-linebreaks"":""Review: ProfitLocker Pro by Barbara Star, PhD
VECTORVEST INC.
\n20472 Chartwell Center Dr. Ste D Cornelius, NC 28031
Phone: 888 658-7638
\nFax: 704 895-4065
\nWebsite: www.vectorvest.com
\nProduct: Multi-function customizable stop-loss
\nRequirements: VectorVest version 7
\nPrice: VectorVest 7 + ProfitLocker Pro 30-day trial $29.95
Traders often spend more of their time on stock selection and high-probability entry strategies than on identifying the initial risk, managing the trade, and determining the exit. But once a trade is initiated, traders need a robust risk management system in order to follow the adage “cut your losses early and let your profits run.”
VectorVest has taken the risk manage-ment process to new levels by allowing control from initial stop-loss placement to trailing-stop exit with its proprietary, multi-adjustable, patent-pending ProfitLocker Pro ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-28-29-61-review-profitlocker-pro-by-barbara-star-phd-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-28-29-61-review-profitlocker-pro-by-barbara-star-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-28-29-61-review-profitlocker-pro-by-barbara-star-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov373inco1,d,"{""minimum-quantity"":""1"",""path"":""ch8a2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:08 (30–35): Interview: A Conversation With Sam Stovall by Leslie N. Masonson"",""caption-linebreaks"":""Interview: A Conversation With Sam Stovall by Leslie N. Masonson
Sam Stovall, CFP, is currently Chief Investment Strategist at CFRA Research and provides commentary and analysis on the equity markets, with particular attention paid to industry and sector seasonality and momentum. He also serves as chairman of the CFRA Investment Policy Committee. Moreover, he writes a weekly column for the MarketScope Advisor website, as well as contributes to the well-known weekly The Outlook. He worked at S&P Global (later known as S&P Capital IQ) from April 1989 through September 2016, and was the Chief Equity Strategist of S&P Capital IQ, as well as chairman of its Investment Policy Committee.
Previously, he was editor-in-chief at Argus Research in NYC. He is the author of The Seven Rules Of Wall Street (2009) as well as The Standard & Poor’s Guide To Sector Investing (1995). He received an MBA in finance from New York University and a BA in history and education from Muhlenberg College. He is on the latter college’s board of trustees. Stovall is also a board member of W!SE (Working in Support of Education), an educational not-for-profit that aims to improve the lives of young people through programs that develop financial literacy and readiness for college and careers. He speaks at many industry conferences including AAII and other venues, he participates in CFRA webinars, and contributes to the Equities.com website.
STOCKS & COMMODITIES ETF columnist Leslie Masonson interviewed Sam Stovall on June 13, 2019 to discuss his historical perspective on the markets and his focus on sector and industry investing ...
Sam, did your highly respected father, Robert Stovall, a well-known Wall Street authority, influence you to enter the investment business? If not, how did you end up on Wall Street?
\nI ended up on Wall Street as sort of an end-run, if you will. I went to Muhlenberg College and was an education major. I had my heart set on being a social studies teacher and a football coach on the sidelines ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-30-35-interview-a-conversation-with-sam-stovall-by-leslie-n-masonson-25.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-30-35-interview-a-conversation-with-sam-stovall-by-leslie-n-masonson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-30-35-interview-a-conversation-with-sam-stovall-by-leslie-n-masonson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov373im50,d,"{""minimum-quantity"":""1"",""path"":""ch8a2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:08 (36–38): Improving The 50/200 SMA With A Simple Crossover System by Gary Fontano"",""caption-linebreaks"":""Improving The 50/200 SMA With A Simple Crossover System by Gary Fontano
You shouldn’t always assume that the default settings for your indicators are necessarily the best ones to use for all timeframes. With a little careful modification, your indicators could be greatly improved. Here is some guidance (and inspiration) to tackle that.
There are numerous indicators that a trader can use. At times, I have tried out indicators on my charts, and while they were fairly good, I wanted something better. After all, indicators can always be improved to meet an individual’s trading style ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18091.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-36-38-improving-the-50-200-sma-with-a-simple-crossover-system-by-gary-fontano-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-36-38-improving-the-50-200-sma-with-a-simple-crossover-system-by-gary-fontano-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov374buen,d,"{""minimum-quantity"":""1"",""path"":""ch8a2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:08 (40–43): Bullish Engulfing Pattern: To Buy Or Not To Buy? by Pawel Kosinski"",""caption-linebreaks"":""Bullish Engulfing Pattern: To Buy Or Not To Buy? by Pawel Kosinski
When you see a familiar chart pattern on a price chart, should you automatically do what the pattern suggests, or should you look at it more closely before making the decision? Here are some scenarios that could play out when a bullish engulfing pattern appears on a price chart.
The bullish engulfing pattern is a popular candlestick pattern that consists of two candles—the first one is bearish and the second one is bullish. The body of the second candle engulfs the first one. In other words, the opening price of the second candle is below the closing price of the first candle bar ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19829.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-40-43-bullish-engul-64257-ng-pattern-to-buy-or-not-to-buy-by-pawel-kosinski-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-40-43-bullish-engul-64257-ng-pattern-to-buy-or-not-to-buy-by-pawel-kosinski-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37462tr1,d,"{""minimum-quantity"":""1"",""path"":""ch8a2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:08 (44–45, 62): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
A STORM IS A-BREWIN’
What if STOCKS & COMMODITIES readers could pick up on potential trends before they become identifiable and technically confirmed trends?\nThe strongest technical observations may result from a fundamental reason as the root cause.
There was a “tell” in the financial world recently ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18305.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-44-45-62-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-44-45-62-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov374trti7,d,"{""minimum-quantity"":""1"",""path"":""ch8a2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:08 (48–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is John Ehlers’ article in this issue, “A Peek Into The Future.” Here, we present the August 2019 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20018.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-48-56-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-48-56-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov376caap,d,"{""minimum-quantity"":""1"",""path"":""ch8a2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:08 (60–61): A Capital-Based Approach by Gabriel Gonzalez"",""caption-linebreaks"":""A Capital-Based Approach by Gabriel Gonzalez
So far in this series of investing primers, we covered investing for safety and investing for income. As we move on to investing with the goal of achieving capital gains, we look at the basic theory behind stock investing.
There’s comfort to be had in the certainty of routine. In my two previous articles in the October 2018 and January 2019 issues, I discussed the investing objectives of safety and income, which rely on the consistent, timely return of yields via bonds and, in a limited capacity, some stocks. The capital-based objective, on the other hand, is an investment goal that requires a much more dynamic, hands-on approach and perhaps even a bit of clairvoyance ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18296.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-60-61-a-capital-based-approach-by-gabriel-gonzalez-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-60-61-a-capital-based-approach-by-gabriel-gonzalez-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov376swtr,d,"{""minimum-quantity"":""1"",""path"":""ch8a2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:08 (6–7): Swing Trading 10-Point Breakouts by Ken Calhoun"",""caption-linebreaks"":""Swing Trading 10-Point Breakouts by Ken Calhoun
Some numbers have an important psychology attached to them. Find out how you can use this to your advantage in swing trading.
If you have ever struggled with deciding when to enter and exit your long-term swing trades, this month’s technique may be helpful to you. The concept is to simply trade within 10-point trading ranges, using multiples of $10/share as key price-action support & resistance levels ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20021.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-6-7-swing-trading-10-point-breakouts-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-6-7-swing-trading-10-point-breakouts-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37835pe,d,"{""minimum-quantity"":""1"",""path"":""ch8a2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:08 (8–11, 35): A Peek Into The Future by John F. Ehlers"",""caption-linebreaks"":""A Peek Into The Future by John F. Ehlers
We all know there is no crystal ball for the markets. But if you could get a signal in advance of other signals that are used by traders, that might be the next best thing. Here, we introduce a new filter that could help signal cyclic turning points.
Trading would be considerably less difficult if we could look into the future. Of course that is impossible, but signal processing can provide a filter with negative group delay. In this article, I will describe such a filter. While it cannot really look into the future, it can provide signals in advance of signals used by other traders—and that may be enough to create a successful trading edge ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18308.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-8-11-35-a-peek-into-the-future-by-john-f-ehlers-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-08-8-11-35-a-peek-into-the-future-by-john-f-ehlers-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov371royo,d,"{""minimum-quantity"":""1"",""path"":""ch9s2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:09 (12–17): Roll Your Own Futures Using Python by Anthony Garner"",""caption-linebreaks"":""Roll Your Own Futures Using Python by Anthony Garner
If you want to backtest a strategy for trading futures, you’ll need historical data that has been back-adjusted to synthesize it into continuous contracts. Here’s a way to do that yourself.
As anyone who has had any contact with the futures markets knows, futures contracts expire. Regularly. Thus, there is no such thing as a historical long-term price series for gold futures. Or for eurodollar futures, or long bond futures ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18831.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-09-12-17-roll-your-own-futures-using-python-by-anthony-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-09-12-17-roll-your-own-futures-using-python-by-anthony-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37156et,d,"{""minimum-quantity"":""1"",""path"":""ch9s2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:09 (18, 56): ETF Arbitrage Swing Trading by Ken Calhoun"",""caption-linebreaks"":""ETF Arbitrage Swing Trading by Ken Calhoun
In the July 2019 issue in this column, ETF arbitrage for daytrading was presented. This month, the same concept is applied to swing trading. Find out how.
Successful swing trading depends on your ability to correctly enter strong-trending charts, while avoiding false breakouts. You can gain a unique technical advantage by swing trading inversely related ETFs that move in exactly opposite directions. When one goes up, the other goes down ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18834.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-09-18-56-etf-arbitrage-swing-trading-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-09-18-56-etf-arbitrage-swing-trading-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov372siwa,d,"{""minimum-quantity"":""1"",""path"":""ch9s2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:09 (20–23): A Simple Way To Trade Seasonality by Perry J. Kaufman"",""caption-linebreaks"":""A Simple Way To Trade Seasonality by Perry J. Kaufman
You can locate patterns to perform seasonal trades—although they won’t necessarily be where you expect. Here’s a way to uncover consistent patterns you can use to trade, not just on futures but also on some seasonal stocks.
I have always liked seasonal trades. I like trades that are based on something real, rather than patterns uncovered by a computer search. Corn is planted in the spring and harvested in the fall. At the beginning of the season there is uncertainty about the size of the crop. In the middle of the year there are concerns about drought and disease. And at harvest there is always more corn than we know what to do with. We can count on that just as we can count on the way the earth spins ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18840.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-09-20-23-a-simple-way-to-trade-seasonality-by-perry-j-kaufman-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-09-20-23-a-simple-way-to-trade-seasonality-by-perry-j-kaufman-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov372lire,d,"{""minimum-quantity"":""1"",""path"":""ch9s2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:09 (24–29): The Limited-Risk Reversal Spread Trade by Robert J. Seifert"",""caption-linebreaks"":""The Limited-Risk Reversal Spread Trade by Robert J. Seifert
Here’s a trade the big hitters of Wall Street might use to control shares without making their activity obvious to the market. It’s similar to creating a synthetic long position, but it has a couple of major differences. Find out how you can construct this trade.
Do you ever wonder how legendary investors such as Carl Icahn or Warren Buffett are able to take over major corporations without anyone noticing until they release the forms to the SEC, which reveal their purchases? Buying the stock would be obvious to other big traders, who undoubtedly would want in on the action ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18843.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-09-24-29-the-limited-risk-reversal-spread-trade-by-robert-j-seifert-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-09-24-29-the-limited-risk-reversal-spread-trade-by-robert-j-seifert-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37333ex,d,"{""minimum-quantity"":""1"",""path"":""ch9s2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:09 (30–31, 33): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
AN INEXPENSIVE DIRECTIONAL STRATEGY FOR LEVERAGE
I like buying calls and puts for the leverage, but time decay often ends up working against me to the point that I lose money. Is there an inexpensive directional strategy I can use that allows time decay to work in my favor?
Yes, there are several, but due to space constraints let’s just focus on one very versatile and robust strategy that most traders are not aware of. It is commonly referred to as an out-of-the-money butterfly spread (heretofore OTM fly, for short) ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18846.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-09-30-31-33-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-09-30-31-33-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov373alqa,d,"{""minimum-quantity"":""1"",""path"":""ch9s2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:09 (32–33): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
FINDING THE BEST PARAMETERS FOR YOUR STRATEGY
I want to find out the optimum timeframe (bar size) and market for my strategy. How do I do that?
Most retail trading software packages allow you to optimize just about every parameter in your strategy, but may not allow you to easily test your strategy with one-minute, five-minute, 10-minute and 60-minute bars. You may not also be able to quickly test a variety of symbols to search for the best-performing one ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18849.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-09-32-33-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-09-32-33-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov373inma,d,"{""minimum-quantity"":""1"",""path"":""ch9s2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:09 (34–39): Interview: Market Data Insights With John Ehlers by Karl Montevirgen"",""caption-linebreaks"":""Interview: Market Data Insights With John Ehlers by Karl Montevirgen
John F. Ehlers is a market technician with a specialty in the study of market data and cycles, as well as using that data more effectively to develop trading strategies. In the early 1980s, around the same time this magazine was launched, he was pioneering new ways to accurately measure market cycles using engineering techniques discovered during his time as a Senior Engineering Fellow with Raytheon and during his work on various special projects including SkyLab. In his current work he continues to research and refine ways to see market data and to use market cycles for trading.
Ehlers is president of MESA Software and cofounder of StockSpotter.com and BeYourOwnHedgeFund.com. MESA Software offers algorithmic trading strategies that adapt to different markets and market conditions by dynamically tuning the strategy using cycle measurements.
A Contributing Editor to this magazine, he has contributed more than 80 articles to STOCKS & COMMODITIES since 1983. Across this large body of work, he has presented breakthrough research; new indicators, filters, and analysis techniques; and methods to gain earlier trading signals.
Books written by Ehlers include Rocket Science For Traders, MESA And Trading Market Cycles, and most recently, Cycle Analytics For Traders. He has been a speaker at many conferences and seminars on topics related to market cycles and trading strategy development, and he offers his own annual seminar to share some of his life’s work on analyzing the markets with other traders.
S&C Contributor Karl Montevirgen spoke with John Ehlers on July 3, 2019 to explore some of the technical concepts behind his work and why those concepts are important to trading strategy development.
John, how long have you been working with market cycles and waveforms? And what inspired you to focus on this very particular approach to market analysis?
Well, we started in the mid-1970s. The reason I got into trading was I got a bonus, and my choices were either to invest in real estate or to trade commodities. And I didn’t want to be a landlord and fix toilets in the middle of the night ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-09-34-39-interview-market-data-insights-with-john-ehlers-by-karl-montevirgen-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-09-34-39-interview-market-data-insights-with-john-ehlers-by-karl-montevirgen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-09-34-39-interview-market-data-insights-with-john-ehlers-by-karl-montevirgen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov373fufo,d,"{""minimum-quantity"":""1"",""path"":""ch9s2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:09 (38–39): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
CAN MICRO FUTURES REPLACE OPTION TRADING ON FUTURES?
Does the advent of micro and mini futures mitigate the argument for long option trading?
When I came into the industry in 2004, the futures markets were considered untouchable to most retail traders due to the hurdles required to enter the arena. For instance, highly leveraged and richly margined futures contracts generally kept small speculators on the sidelines ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20525.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-09-38-39-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-09-38-39-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37462sp,d,"{""minimum-quantity"":""1"",""path"":""ch9s2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:09 (40–41, 62): Spotting Imbalances In Novel Markets by Azeez Mustapha"",""caption-linebreaks"":""Spotting Imbalances In Novel Markets by Azeez Mustapha
Trading opportunities are created when bitcoin and altcoins are traded against the US dollar. And when some of the more popular altcoins are traded against bitcoin, unusual yet predictable trading opportunities may arise. Here’s a strategy for one such possible trade.
Edges occur in the markets all the time. These days, you can find opportunities for a trading edge in the relatively new genre of cryptoassets. One such edge is the frequent trading opportunities created in bitcoin (BTC) pairs, for example, EOSBTC, NEOBTC, ETHBTC, LTCBTC, XRPBTC, and others ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20528.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-09-40-41-62-spotting-imbalances-in-novel-markets-by-azeez-mustapha-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-09-40-41-62-spotting-imbalances-in-novel-markets-by-azeez-mustapha-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37446up,d,"{""minimum-quantity"":""1"",""path"":""ch9s2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:09 (42–43, 46): An Updated Market Outlook by Richard J. Johnson"",""caption-linebreaks"":""An Updated Market Outlook by Richard J. Johnson
In today’s world, it may seem as though computer-generated trading should have removed most of the human emotion from the market, which could mean that classic wave patterns no longer apply. But that may not be the case. Here’s why.
In a postscript I wrote in 2014 to my book Finding Waves: Objectively Identifying Wave Patterns in Financial Market Data, I confidently asserted that the long bull wave from the 1932 low in the stock markets was over. The 2007 high was it for our lifetimes ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20531.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-09-42-43-46-an-updated-market-outlook-by-richard-j-johnson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-09-42-43-46-an-updated-market-outlook-by-richard-j-johnson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov374trpe3,d,"{""minimum-quantity"":""1"",""path"":""ch9s2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:09 (44–46): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
OLD-STYLE, NEW-STYLE, & FED-STYLE RECESSION WARNINGS
Building on what I discussed last month in this column, which was the impact new technologies can have on a specific sector, we are seeing macroeconomic forces exerted positively and negatively for most sectors ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20540.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-09-44-46-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-09-44-46-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov374bofo,d,"{""minimum-quantity"":""1"",""path"":""ch9s2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:09 (47): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
The Laws Of Trading: A Trader’s Guide To Better Decision-Making For Everyone by Agustin Lebron
The Art Of Currency Trading: A Professional’s Guide To The Foreign Exchange Market by Brent Donnelly
Equity Smart Beta And Factor Investing For Practitioners by Khalid Ghayur, Ronan G. Heaney, and Stephen C. Platt
Plant Your Money Tree: A Guide To Growing Your Wealth by Michele Schneider
7 Financial Models For Analysts, Investors And Finance Professionals: Theory And Practical Tools To Help Investors Analyse Businesses Using Excel by Paul Lower"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20543.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-09-47-books-for-traders-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-09-47-books-for-traders-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov374trti8,d,"{""minimum-quantity"":""1"",""path"":""ch9s2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:09 (48–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Perry Kaufman’s article in this issue, “A Simple Way To Trade Seasonality.” Here, we present the September 2019 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this is-sue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20546.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-09-48-56-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-09-48-56-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov376unan,d,"{""minimum-quantity"":""1"",""path"":""ch9s2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:09 (60–62): Understanding An Annual Report by Peter Smolens"",""caption-linebreaks"":""Understanding An Annual Report by Peter Smolens
Long considered drudgery to read, annual reports do contain some important information if you know what to look for. Here’s a look inside them.
They come to our mailboxes like clockwork, although some companies now provide the option for you to download a copy from their website. Some are printed on thin, almost tissue-like paper while others are slick productions with full-color photographs highlighting different sections of the company ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20549.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-09-60-62-understanding-an-annual-report-by-peter-smolens-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-09-60-62-understanding-an-annual-report-by-peter-smolens-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov376hiet,d,"{""minimum-quantity"":""1"",""path"":""ch9s2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:09 (6–11): High-Dividend-Paying ETFs Offer Concentrated Returns by Leslie N. Masonson"",""caption-linebreaks"":""High-Dividend-Paying ETFs Offer Concentrated Returns by Leslie N. Masonson
Are you looking to capture higher-than-normal dividends while still enjoying a solid total return? If so, then here are six ETFs to consider that focus on high dividend payments, and they all have billions of dollars in assets.
Dividend-paying NYSE-listed companies have always been popular among investors, especially since the increase in market volatility during the fourth quarter of 2018. Managers of these companies strive to grow earnings with the goal of increasing share price and dividends. And the compounding effect of dividends and share price can produce significant total returns (capital appreciation and dividends) for long-term, patient investors ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18828.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-09-6-11-high-dividend-paying-etfs-offer-concentrated-returns-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-09-6-11-high-dividend-paying-etfs-offer-concentrated-returns-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37126vp,d,"{""minimum-quantity"":""1"",""path"":""ch10o2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:10 (16–20, 26): The V-Trade Part 13: Expert Automatic Trading by Sylvain Vervoort"",""caption-linebreaks"":""The V-Trade Part 13: Expert Automatic Trading by Sylvain Vervoort
In this ongoing series on the V-Trade system, we are presenting this author’s method of making manual and automatic buy & sell decisions (or a combination of both). Now that we have set up the expert system and shown how to use it for manual and semi-automated trading, we’ll look at a mechanical trading technique to use with automated trading.
In part 12 of my series on the V-Trade, I looked at an example of auto-trading compared to manual and semi-automatic trading. That trading example used the MACD to help make buy and sell decisions. In this part, which is part 13 and the fourth part on the V-Trade expert system, I will take a look at a strategy for mechanical trading based on counting consecutive modified renko bars ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18801.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-10-16-20-26-the-v-trade-part-13-expert-automatic-trading-by-sylvain-vervoort-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-10-16-20-26-the-v-trade-part-13-expert-automatic-trading-by-sylvain-vervoort-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov372cobo,d,"{""minimum-quantity"":""1"",""path"":""ch10o2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:10 (22–26): Combining Bollinger Bands With Candlesticks by Pawel Kosinski"",""caption-linebreaks"":""Combining Bollinger Bands With Candlesticks by Pawel Kosinski
It’s quintessential technical analysis. Here’s a simple strategy to trade with as well as an easy model for how to backtest it, putting together these two popular components of charting.
Most traders and technical analysts use or have at least heard of Bollinger Bands. A price envelope technique, these bands are a feature on most trading platforms, given that they have been a mainstay of technical analysis since John Bollinger first introduced this version of trading bands in the 1980s ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18807.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-10-22-26-combining-bollinger-bands-with-candlesticks-by-pawel-kosinski-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-10-22-26-combining-bollinger-bands-with-candlesticks-by-pawel-kosinski-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37239al,d,"{""minimum-quantity"":""1"",""path"":""ch10o2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:10 (27, 39): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
DETERMINING AN APPROPRIATE INITIAL ACCOUNT SIZE
I just created a new strategy for gold futures. How do I know the proper ac-count size to start trading it with?
Congratulations on creating a new trading strategy you feel comfortable enough to trade with real money. I hope it does well for you.
It is really difficult to tell you what size account you need, so I will give you some general guidelines—ones you can use with any trading system ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18813.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-10-27-39-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-10-27-39-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov372vaat,d,"{""minimum-quantity"":""1"",""path"":""ch10o2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:10 (28–32): Value At Risk For The Small Investor by Mike B. Siroky, MD"",""caption-linebreaks"":""Value At Risk For The Small Investor by Mike B. Siroky, MD
Protecting your capital and limiting losses is fundamental to trading. But how can you estimate your possible losses for better risk management? Here’s a method you can use.
It is a fact that all traders at some point will suffer a string of losing trades that could wipe out their trading capital (known as “gambler’s ruin”). To mitigate this risk, proper money management is critical ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-10-28-32-value-at-risk-for-the-small-investor-by-mike-b-siroky-md-25.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-10-28-32-value-at-risk-for-the-small-investor-by-mike-b-siroky-md-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-10-28-32-value-at-risk-for-the-small-investor-by-mike-b-siroky-md-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37339hi,d,"{""minimum-quantity"":""1"",""path"":""ch10o2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:10 (33, 39): High-Volume Close Breakouts by Ken Calhoun"",""caption-linebreaks"":""High-Volume Close Breakouts by Ken Calhoun
As with many trading techniques, looking for confirmation before taking action is smart. Here’s one way you can do that.
When looking for swing trading charts to trade, you may find that using both increasing price and volume together is useful to confirm your entries. Here, I’ll look at how to trade charts that are likely to continue up on the day after a “high-volume close” is observed ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18777.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-10-33-39-high-volume-close-breakouts-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-10-33-39-high-volume-close-breakouts-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov373inte,d,"{""minimum-quantity"":""1"",""path"":""ch10o2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:10 (34–36): Interview: A Technical Narrative With Mark Newton by Karl Montevirgen"",""caption-linebreaks"":""Interview: A Technical Narrative With Mark Newton by Karl Montevirgen
Mark L. Newton has more than 25 years of buy-side and sell-side experience in financial services. Before moving to the New York City area in 2004, he traded equity options as a market maker and floor trader at the CBOE, and worked in risk management. He is a member of the CMT Association (formerly Market Technicians Association), and is a former member of the CBOE, CBOT, and PHLX exchanges. He obtained the CMT (Chartered Market Technician) designation in 2002.
In 2016, he founded an advisory firm, Newton Advisors LLC (NewtonAdvisor.com), which offers a consulting and web subscription service that seeks to provide actionable ideas to both financial professionals and retail investors based on proprietary technical analysis on equity indexes, ETFs, and sectors. The service also seeks to identify potentially profitable patterns in equities, commodities, currencies, and fixed income in the global markets. In addition to employing standard technical tools to identify trend duration, relative strength, and momentum, he utilizes countertrend analysis to identify potential trend exhaustion and trend reversals.
Previously, he was chief technical analyst for Greywolf Equity Partners; a technical analyst and portfolio manager for Diamondback Capital Management; and a technical strategist for Morgan Stanley. He appears frequently on CNBC’s The Closing Bell, BNN, and Fox Business News, and he contributes to Yahoo Finance.
S&C Contributor Karl Montevirgen spoke with Mark Newton on June 11, 2019 to ask him what steered him toward technical analysis and how that serves his investing clients, as well as to find out a little more about the person behind the media appearances.
Mark, tell us how you got started in the financial markets. More specifi-cally, how did you decide to specialize in technical analysis?
\nA lot of this started back in the mid-1980s ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18780.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-10-34-36-interview-a-technical-narrative-with-mark-newton-by-karl-montevirgen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-10-34-36-interview-a-technical-narrative-with-mark-newton-by-karl-montevirgen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov373trpe,d,"{""minimum-quantity"":""1"",""path"":""ch10o2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:10 (37): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
BATTEN DOWN THE HATCHES? (PART 1)
Is there a strange storm brewing? This doesn’t mean the ship is at risk of going down into Davy Jones’ locker, but rather, the winds and rough seas are unavoidable. This month and next, I’ll continue my discussion about how and why the wind is blowing through countries’ bond markets, and why negative interest rates in bonds and savings accounts are here to stay. Giving some serious thought to this information may assist traders in capitalizing on the current and ongoing trends by considering how companies and industries are impacted ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18783.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-10-37-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-10-37-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov373fufo1,d,"{""minimum-quantity"":""1"",""path"":""ch10o2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:10 (38–39): Futures For You by Carley Garner"",""caption-linebreaks"":""Stocks & Commodities V. 37:10 (38–39): Futures For You by Carley Garner
WHY USE DIAGONAL OPTION SPREADS?
What are diagonal option spreads and how can they be traded?
I’ve been an advocate of premium collection strategies for well over a decade while most futures brokers have shied away ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20507.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-10-38-39-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-10-38-39-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov374trfa,d,"{""minimum-quantity"":""1"",""path"":""ch10o2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:10 (40–43): Trading The Failure Of Technical Patterns by Fawad Razaqzada"",""caption-linebreaks"":""Trading The Failure Of Technical Patterns by Fawad Razaqzada
Yes, you can potentially trade patterns profitably even when they fail. Here’s how to spot and take advantage of these types of opportunities.
In my article in the March 2019 issue of STOCKS & COMMODITIES, I described trading the fakeout. I noted that from false moves come fast moves in the opposite direction. The idea behind that approach is to look for false breaks occurring above previous highs and below old lows ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20510.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-10-40-43-trading-the-failure-of-technical-patterns-by-fawad-razaqzada-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-10-40-43-trading-the-failure-of-technical-patterns-by-fawad-razaqzada-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov374rema,d,"{""minimum-quantity"":""1"",""path"":""ch10o2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:10 (44–46): Review: Market Rover Pro by Barbara Star, PhD"",""caption-linebreaks"":""Review: Market Rover Pro by Barbara Star, PhD
THE STEADY TRADER
\nwww.thesteadytrader.com, www.GetTSTRover.com
\nsupport@thesteadytrader.com
\nProduct: Stock and ETF scanner
\nPrice: $497 quarterly; $1,997 annually
Market Rover Pro from The Steady Trader (TST) is a web-based scanner that incorporates several proprietary indicators developed by Serge Berger to detect reversals, continuations, price exhaustion, and gaps ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20513.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-10-44-46-review-market-rover-pro-by-barbara-star-phd-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-10-44-46-review-market-rover-pro-by-barbara-star-phd-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov374leto,d,"{""minimum-quantity"":""1"",""path"":""ch10o2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:10 (46): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
TURNING EHLERS’ VOSS PREDICTOR INTO A STRATEGY
Editor,
\nI am a great fan of John Ehlers and look forward to any new indicator that he develops. I use his “roofing filter” all the time. When I read his article on the Voss predictor (“A Peek Into The Future,” August 2019 S&C), I immediately entered it into my computer, applied the S&P futures, and looked at the results. They were terrible. As John warned, that’s the difference between an indicator and a strategy. But with a few practical changes, you can make it very profitable ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20516.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-10-46-letters-to-s-c-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-10-46-letters-to-s-c-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov374trti9,d,"{""minimum-quantity"":""1"",""path"":""ch10o2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:10 (48–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Pawel Kosinski’s article in this issue, “Combining Bollinger Bands With Candlesticks.” Here, we present the October 2019 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this is-sue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20483.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-10-48-56-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-10-48-56-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37647wy,d,"{""minimum-quantity"":""1"",""path"":""ch10o2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:10 (60–62, 47): Wyckoff And Livermore: The Conversations by Stella Osoba, CMT"",""caption-linebreaks"":""Wyckoff And Livermore: The Conversations by Stella Osoba, CMT
We learn from those who have come before us. Richard D. Wyckoff and Jesse Livermore both lived and worked in the early part of the 20th century, applying their craft to the financial markets. Today, their insights into the art of speculation provide wisdoms that still apply.
“What has been is what will be, and what has been done is what will be done; and there is nothing new under the sun.”\n—Ecclesiastes 1:9
Because human behavior does not change even though the tools with which we use to live our lives does, it is wise to remember the old saying quoted above as we seek new ways of interpreting markets. There is indeed nothing new under the sun ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20486.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-10-60-62-47-wyckoff-and-livermore-the-conversations-by-stella-osoba-cmt-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-10-60-62-47-wyckoff-and-livermore-the-conversations-by-stella-osoba-cmt-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37626ex,d,"{""minimum-quantity"":""1"",""path"":""ch10o2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:10 (6–7, 26): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
OPTIONS ON STOCKS, INDEXES, AND FUTURES
I am new to option trading and am trying to understand the difference between trading options on stocks, options on indexes, and options on futures. Does it make a difference which type I trade?
Yes, there is definitely a difference between stock, index, and futures options in terms of how they are traded, how they are paid for, and what the end result of a given option trade may be ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20504.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-10-6-7-26-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-10-6-7-26-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov378inma,d,"{""minimum-quantity"":""1"",""path"":""ch10o2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:10 (8–14): An Interplanetary Marriage by Jay A. Leavitt, PhD"",""caption-linebreaks"":""An Interplanetary Marriage by Jay A. Leavitt, PhD
The quest to continually improve and update a trading strategy is often part of a trader’s mission—and can be a rewarding one at that, on many levels. Presented here is a new version of a strategy for trading two futures contracts, along with two new indicators that are at the core of the strategy.
In previous articles, I presented several strategies for trading futures contracts, including the moon rocket strategy, the stratosphere strategy (STRAT), and the tech emini strategy (TASC). In my previous articles I also introduced two concepts at the core of these strategies, which I call the Leavitt convolution and the Leavitt projection. The Leavitt convolution (Lc) is based on linear regression and finds a best-fit line. The Leavitt projection is also a linear regression function that finds a line’s slope and sequence of intercepts ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18795.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-10-8-14-an-interplanetary-marriage-by-jay-a-leavitt-phd-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-10-8-14-an-interplanetary-marriage-by-jay-a-leavitt-phd-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37118ad,d,"{""minimum-quantity"":""1"",""path"":""ch11n2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:11 (13, 18): ADX & 50SMA Breakouts by Ken Calhoun"",""caption-linebreaks"":""ADX & 50SMA Breakouts by Ken Calhoun
The more technical signals that line up in your favor, the better the odds of making a successful trade. Here’s an example of how to confirm a technical signal with another signal.
When it comes to finding strong entry signals, it is often a good idea to combine two or more technical indicators. This month, I will demonstrate combining moving average (MA) breakouts with average directional index (ADX) entry signals. The reason this is useful is because it gives you a stronger breakout signal that may be less likely to generate false breakouts, compared to using a single entry signal ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20522.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-11-13-18-adx-50sma-breakouts-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-11-13-18-adx-50sma-breakouts-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov371usre,d,"{""minimum-quantity"":""1"",""path"":""ch11n2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:11 (14–18): Using Regression To Predict Turning Points by Ken Muranaka"",""caption-linebreaks"":""Using Regression To Predict Turning Points by Ken Muranaka
Use the unique relationship between the Nikkei Stock Average and the major US stock market indexes to predict short-term market turning points with the help of a spreadsheet—no skills in statistics required!
The Nikkei Stock Average (Nikkei 225) is the pre-mier index of Japanese stocks. It is computed and reported by the newspaper publisher Nihon Keizai Shimbun. “Nikkei” stands for Nihon (“Japan”) Keizai (“economy”). The Nikkei 225 was called “Nikkei–Dow Average” from May 1975 to May 1985 because of a license agreement between the Nikkei’s publisher and Dow Jones & Co. This stock index dates back to the day when the Tokyo Stock Exchange (TSE) resumed opera-tions on May 16, 1949, and was initially valued 176.21 ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18762.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-11-14-18-using-regression-to-predict-turning-points-by-ken-muranaka-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-11-14-18-using-regression-to-predict-turning-points-by-ken-muranaka-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov372vpa12,d,"{""minimum-quantity"":""1"",""path"":""ch11n2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:11 (20–24): The V-Trade Part 14: Expert Automatic Trading by Sylvain Vervoort"",""caption-linebreaks"":""The V-Trade Part 14: Expert Automatic Trading by Sylvain Vervoort
As we continue with this series that explains step-by-step a set of techniques to use for trading—including the building of an expert system for automatic or semi-automatic trading—here, we look at a strategy where mechanical trading is based on a modified MACD indicator.
Last time in part 13, I presented an expert for an expert system that simply counts modified renko bars. Here in part 14, which is the fifth part on the topic of building an expert system, I will look at a strategy where mechanical trading is based on a modified MACD indicator. This modified MACD indicator has a variable threshold ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18765.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-11-20-24-the-v-trade-part-14-expert-automatic-trading-by-sylvain-vervoort-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-11-20-24-the-v-trade-part-14-expert-automatic-trading-by-sylvain-vervoort-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37239fu,d,"{""minimum-quantity"":""1"",""path"":""ch11n2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:11 (25, 39): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
SHOULD INVESTORS ALLOCATE 25% OF THEIR WEALTH TO GOLD?
In my humble opinion, allocating anything more than a small percentage, far less than 25%, of investable assets to gold is a poor decision. In its best light, gold is an inflationary and economic hedge, but it is a metal that truly has little value other than what humans have assigned to it ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18768.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-11-25-39-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-11-25-39-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov372stma,d,"{""minimum-quantity"":""1"",""path"":""ch11n2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:11 (26–29): The Stochastic MACD Oscillator by Vitali Apirine"",""caption-linebreaks"":""The Stochastic MACD Oscillator by Vitali Apirine
The moving average convergence/divergence (MACD) is a well-known oscillator used to signal trend changes and indicate trend direction. Combining the stochastic oscillator and MACD allows you to define overbought/oversold MACD levels. Here’s how to do it.
The stochastic moving average convergence/divergence oscillator (STMACD) is a momentum oscillator that measures the difference between two moving averages relative to the high–low range over a set number of periods. STMACD is shown with a signal line, a centerline, and overbought/oversold levels. In this article, I will focus on differences between the MACD and STMACD ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-11-26-29-the-stochastic-macd-oscillator-by-vitali-apirine-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-11-26-29-the-stochastic-macd-oscillator-by-vitali-apirine-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-11-26-29-the-stochastic-macd-oscillator-by-vitali-apirine-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov372stma1,d,"{""minimum-quantity"":""1"",""path"":""faarfr2011"",""ysw-page-title"":""Stocks & Commodities V. 37:11 (26–29): The Stochastic MACD Oscillator by Vitali Apirine"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-21831.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-11-26-29-the-stochastic-macd-oscillator-by-vitali-apirine-31.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-11-26-29-the-stochastic-macd-oscillator-by-vitali-apirine-32.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov373rufo,d,"{""minimum-quantity"":""1"",""path"":""ch11n2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:11 (30–32): Running For Cover by Perry J. Kaufman"",""caption-linebreaks"":""Running For Cover by Perry J. Kaufman
After stocks take a dive, many investors flee into bonds. Does that pay off, or is it already too late by then? Let’s find out.
If you’ve traded long enough and have experienced a few price shocks, you will be aware that when stocks plummet, bonds rally. They call that “flight to safety.” I call it “running for cover.” Most stock investors are long, so buying bonds or other interest rate futures or buying an interest rate ETF (such as TLT) may reduce the loss of a downward price shock ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18816.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-11-30-32-running-for-cover-by-perry-j-kaufman-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-11-30-32-running-for-cover-by-perry-j-kaufman-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37339al,d,"{""minimum-quantity"":""1"",""path"":""ch11n2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:11 (33, 39): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
WHAT IS “RISK OF RUIN,” AND HOW DO I AVOID IT?
I have a trading system that has a great backtest, so I am confident in its ability to make money. But a trader friend said I should be worried about “risk of ruin”—why?
One of the most misunderstood things about good trading is the need for sufficient capital to run your trading system. I discussed account sizing in this column last month, but I think it is worthwhile to expand on the concept of “risk of ruin” ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18819.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-11-33-39-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-11-33-39-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov373inet,d,"{""minimum-quantity"":""1"",""path"":""ch11n2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:11 (34–38): Infrastructure ETFs — Building A Better, Stronger America by Leslie N. Masonson"",""caption-linebreaks"":""Infrastructure ETFs — Building A Better, Stronger America by Leslie N. Masonson
Are you looking to participate in the rebuilding of America’s infrastructure? If so, then here are six ETFs to consider that focus on this unique sector. Increased government spending will power this sector higher, but only if the US Congress can work together to get it done.
Infrastructure has been a hot topic in Washington, DC and across the country, as reports of crumbling roads and bridges, coupled with antiquated air traffic control software and airport facilities, have resulted in unfortunate fatalities ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18822.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-11-34-38-infrastructure-etfs-building-a-better-stronger-america-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-11-34-38-infrastructure-etfs-building-a-better-stronger-america-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37462co,d,"{""minimum-quantity"":""1"",""path"":""ch11n2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:11 (40–47, 62): A Conversation With Eric D. Wish by Leslie N. Masonson"",""caption-linebreaks"":""Interview: A Conversation With Eric D. Wish by Leslie N. Masonson
Since 1990, Eric Wish, PhD, has been director of the University of Maryland College Park’s Center for Substance Abuse Research (CESAR), where as a re-search psychologist, he has focused on drug abuse epidemiology. In addition, since 2006 he has taught courses on the stock market and technical analysis at the university. In 2005, Wish placed fifth in Barron’s Stock Challenge, professors division, with a 30.8% return during the 2.5-month contest.
Wish is a part-time trader who focuses on developing specific rules for buying and selling growth stocks. His free website, WishingWealthBlog.com, was begun as an educational source for friends and others to help them steer through the market’s ups and downs.
STOCKS & COMMODITIES contributor and ETF columnist Leslie N. Masonson interviewed Eric Wish on September 3, 2019 to discuss his interests in stock market investing and his dedication to using a rules-based approach.
You have been investing in the stock market for almost 60 years. How did your journey begin?
\nI feel like the stock market is in my blood. I lost my father at age 7 but when I would visit his father, my grandfather, Abe, in Brookline, MA, the most common thing I remember him saying is, “Oh, the market, oh, the market” ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18825.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-11-40-47-62-a-conversation-with-eric-d-wish-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-11-40-47-62-a-conversation-with-eric-d-wish-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37462ex1,d,"{""minimum-quantity"":""1"",""path"":""ch11n2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:11 (48–49, 62): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
A MODIFIED RISK-REVERSAL OPTION TRADE
So far, a lot of my trading involves simply buying calls when I have a bullish outlook for a given security. And although I have tended to get direction right over time, I seem to be “early” quite often and find myself “underwater” very early in my trades and in need of a big advance to get back to breakeven. Is there any way around this?
Yes, of course. The snarky answer is simple—“time your trades better.” Let’s put that reply under the category of “some things are easier said than done.” Typically, I try to keep this column in the “less complex” category so that even those who are new to options can grasp whatever concept I am purporting to explain. But this time out, we will branch out into a “more creative” approach to trading options ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20495.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-11-48-49-62-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-11-48-49-62-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37562tr,d,"{""minimum-quantity"":""1"",""path"":""ch11n2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:11 (50–56, 62): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Vitali Apirine’s article in this issue, “The Stochastic MACD Oscillator.” Here, we present the November 2019 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this is-sue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20498.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-11-50-56-62-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-11-50-56-62-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov376istr,d,"{""minimum-quantity"":""1"",""path"":""ch11n2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:11 (60–61): Is Trading Getting Harder? by Thomas Bulkowski"",""caption-linebreaks"":""Is Trading Getting Harder? by Thomas Bulkowski
As some chart patterns become more well known and as more people trade based on charts, have some patterns lost their reliability? Here is some research that could provide some answers, based on almost three decades of data.
Has making money by trading stocks the last several years become harder? Have you heard that once a trading setup becomes popular it stops working? Perhaps mental roadblocks have impeded your performance or perhaps trading has become more difficult. Let’s find out ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20501.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-11-60-61-is-trading-getting-harder-by-thomas-bulkowski-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-11-60-61-is-trading-getting-harder-by-thomas-bulkowski-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37618tr,d,"{""minimum-quantity"":""1"",""path"":""ch11n2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:11 (6–7, 18): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
BATTEN DOWN THE HATCHES? (PART 2)
This month, I’ll continue my discussion about how and why the wind is blowing through countries’ bond markets, and why negative interest rates in bonds and savings accounts are here to stay.
Giving some serious thought to this information may help you capitalize on the current and ongoing trends by considering how companies and industries are impacted ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-11-6-7-18-trading-perspectives-by-rob-friesen-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-11-6-7-18-trading-perspectives-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-11-6-7-18-trading-perspectives-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov378stma,d,"{""minimum-quantity"":""1"",""path"":""ch11n2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:11 (8–12): Stock Market Seasonality: A Global Phenomenon by Jay A. Kaeppel"",""caption-linebreaks"":""Stock Market Seasonality: A Global Phenomenon by Jay A. Kaeppel
Is yearly seasonality something that is particular to the US stock market, or does it extend to other countries in the same way? Here’s some research you can use to your advantage.
The concept of “sell in May and go away” was first introduced by Yale Hirsch, founder of The Stock Trader’s Almanac, back in the early 1970s. The underlying theory is that the stock market performs better during late winter into early spring than it does from early spring into late winter. Lots of studies have been done that seek to validate the reality of this theory and a whole other batch of studies have been done to try to debunk this theory ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20519.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-11-8-12-stock-market-seasonality-a-global-phenomenon-by-jay-a-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-11-8-12-stock-market-seasonality-a-global-phenomenon-by-jay-a-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov371trfa1,d,"{""minimum-quantity"":""1"",""path"":""ch12d2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:12 (16–19): Trading The Failure Of Candle Patterns by Fawad Razaqzada"",""caption-linebreaks"":""Trading The Failure Of Candle Patterns by Fawad Razaqzada
As all traders know, chart and candle patterns may or may not follow through in an ideal fashion. But not all is lost when they don’t. Sometimes, you can observe quite a lot about market action and market participants even with failed patterns. Here, we shine a light on what you can learn when candle patterns fail.
In my article in the October 2019 issue of STOCKS & COMMODITIES, I discussed the failure of technical patterns and how to take advantage of such a situation. The same concept can be applied to candlestick patterns, and that’s what I’ll look at this time ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18446.gif"",""height"":""642"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-12-16-19-trading-the-failure-of-candle-patterns-by-fawad-razaqzada-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-12-16-19-trading-the-failure-of-candle-patterns-by-fawad-razaqzada-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37243fu,d,"{""minimum-quantity"":""1"",""path"":""ch12d2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:12 (20, 43): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
WHAT IS AN OPTION LADDER AND WHEN SHOULD ONE BE USED?
As all option traders have learned the hard way, options are priced to lose. Accordingly, it generally makes sense to avoid paying too much for an outright call or put option, or even a long option strategy such as a vertical spread ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18443.gif"",""height"":""642"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-12-20-43-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-12-20-43-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov372degr,d,"{""minimum-quantity"":""1"",""path"":""ch12d2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:12 (22–25): Deconstructing Granville’s On-Balance Volume by Mike B. Siroky, MD"",""caption-linebreaks"":""Deconstructing Granville’s On-Balance Volume by Mike B. Siroky, MD
What does this classic indicator actually measure, and how? What’s the best way to use it? Taking a close look at its components can provide answers.
Joseph E. Granville (1923–2013) introduced the on-balance volume (OBV) indicator in his newsletters in the 1960s and in his 1976 book, A New Strategy Of Daily Stock Market Timing For Maximum Profit. The on-balance volume (OBV) remains, half a century later, arguably the most widely used volume-based indicator in technical analysis ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18440.gif"",""height"":""642"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-12-22-25-deconstructing-granville-s-on-balance-volume-by-mike-b-siroky-md-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-12-22-25-deconstructing-granville-s-on-balance-volume-by-mike-b-siroky-md-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37251go,d,"{""minimum-quantity"":""1"",""path"":""ch12d2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:12 (26–28, 51): A Gold Momentum Strategy by Robert Tang"",""caption-linebreaks"":""A Gold Momentum Strategy by Robert Tang
Given that the S&P 500 has had a good run from 2009 to present, its volatility is expected to increase. Here’s an investing strategy to allow you to diversify over simply holding the market, and how you can backtest it.
When it comes to investing, many investors may first think of the S&P 500, a market capitalization–weighted index representing the 500 largest companies listed in US stock exchanges. And the S&P 500 is a good choice of investment because it’s a gauge of the US economy ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18437.gif"",""height"":""642"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-12-26-28-51-a-gold-momentum-strategy-by-robert-tang-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-12-26-28-51-a-gold-momentum-strategy-by-robert-tang-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37343us,d,"{""minimum-quantity"":""1"",""path"":""ch12d2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:12 (30–33, 43): Using Renko Charts by John Devcic"",""caption-linebreaks"":""Using Renko Charts by John Devcic
Ever tried using renko-style charts? They have their advantages: Renko charts offer a way to help visualize pure price movement. Here’s how you can start incorporating them into your analysis.
Renko charts have been around a long time but they do not share the popularity of bar, mountain, or even the vaunted and highly used candlestick chart. But they can be useful, and this article aims to provide a quick overview of how to use them ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18434.gif"",""height"":""642"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-12-30-33-43-using-renko-charts-by-john-devcic-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-12-30-33-43-using-renko-charts-by-john-devcic-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov373info,d,"{""minimum-quantity"":""1"",""path"":""ch12d2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:12 (34–39): Interview: Following The Trend With Perry Kaufman by Karl Montevirgen"",""caption-linebreaks"":""Interview: Following The Trend With Perry Kaufman by Karl Montevirgen
Perry J. Kaufman has been involved in trading, research, and advisory functions at commercial banks, securities houses, central banks, and hedge funds since 1971. His current area of specialty is the design of trading systems, algorithms, and indexes. He is president of KaufmanSignals.com, which offers daily trading signals by subscription based on strategies it developed. He can be reached through his website at www.KaufmanSignals.com.
Starting out as a “rocket scientist” in the aerospace industry, Kaufman worked on the navigation and control systems for the Orbiting Astronomical Observatory, the predecessor of the Hubble Observatory. He was also involved in the development of navigation systems for Project Gemini, which were later used for Apollo missions. The earliest systematic programs for trading used exponential smoothing, a technique developed in aerospace for estimating the path of missiles.\nAfter leaving the aerospace industry, he worked in the following decades as a commercial hedger, a portfolio manager, a consultant, and a quantitative analyst for a hedge fund with a focus on managed futures trading strategies.
In addition to trading, Kaufman writes extensively on markets and strategies, and has contributed many articles to this magazine. His seminal book Trading Systems and Methods, first published in 1978, has just seen the release of its sixth edition. His book A Guide To Developing A Successful Algorithmic Trading Strategy was published in 2016. Kaufman has been a frequent speaker at universities and conferences and has made many media appearances.
S&C contributor Karl Montevirgen spoke with Perry Kaufman on September 13, 2019 to focus on price and momentum divergence, and how traders can exploit changes in the markets that have occurred over the past two decades."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18431.gif"",""height"":""642"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-12-34-39-interview-following-the-trend-with-perry-kaufman-by-karl-montevirgen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-12-34-39-interview-following-the-trend-with-perry-kaufman-by-karl-montevirgen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov374amgo,d,"{""minimum-quantity"":""1"",""path"":""ch12d2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:12 (40–42): Ambushing Gold, Silver, And Platinum by Azeez Mustapha"",""caption-linebreaks"":""Ambushing Gold, Silver, And Platinum by Azeez Mustapha
Gold, silver, and platinum are often positively correlated. Their prices can move in a predictable manner, and price patterns are often present that can be spotted and taken advantage of. Here is one such pattern.
A trained eye can see what the markets have to offer—that is, any financial markets. There are some peculiarities inherent in certain markets, which gives experienced traders an edge in those markets. For instance, it is common for crypto markets to trend upwards on Saturdays, which gives an edge to speculators who open intraday positions on Saturdays ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20196.gif"",""height"":""642"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-12-40-42-ambushing-gold-silver-and-platinum-by-azeez-mustapha-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-12-40-42-ambushing-gold-silver-and-platinum-by-azeez-mustapha-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov374sein,d,"{""minimum-quantity"":""1"",""path"":""ch12d2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:12 (44–49): Seasons In The Sun by Matt Blackman"",""caption-linebreaks"":""Seasons In The Sun by Matt Blackman
New energy technology companies are propelling economies and job growth around the world. So how do traders find and trade stocks that are leading this charge?
According to Bloomberg New Energy Finance, $11.5 trillion will be invested in new energy generation between 2018 and 2050 with $8.4 trillion going into wind and solar alone to power what many have called the “fourth industrial revolution” or “Industry 4.0.” It is creating some big winners and losers around the world ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20193.gif"",""height"":""642"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-12-44-49-seasons-in-the-sun-by-matt-blackman-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-12-44-49-seasons-in-the-sun-by-matt-blackman-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov374alqa1,d,"{""minimum-quantity"":""1"",""path"":""ch12d2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:12 (48–49): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
GETTING STARTED IN ALGO TRADING
I am considering jumping into the algo trading world. How important is it to have experience with discretionary trading before getting into algo trading? Do I need to have a certain amount of trades under my belt, or should I have tested a few different strategies?
Algorithmic (algo) trading can sound like a daunting task at first, but with the proper preparation, you should be able to get started fairly quickly ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20190.gif"",""height"":""642"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-12-48-49-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-12-48-49-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37556tr,d,"{""minimum-quantity"":""1"",""path"":""ch12d2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:12 (50, 56): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
IS THE MARKET A ZERO-SUM GAME?
I’ve discussed relationship-based trading many times over the years in this column, and I feel that market conditions continue to warrant emphasis on market-neutral and hedged trading techniques ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20187.gif"",""height"":""642"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-12-50-56-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-12-50-56-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov375trti,d,"{""minimum-quantity"":""1"",""path"":""ch12d2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:12 (52–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is John Devcic’s article in this issue, “Using Renko Charts.” Here, we present the December 2019 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization.
"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20181.gif"",""height"":""642"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-12-52-56-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-12-52-56-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37662le,d,"{""minimum-quantity"":""1"",""path"":""ch12d2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:12 (6, 62): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
BOLLINGER BANDS AND CANDLESTICKS
Editor,
\nI enjoyed Pawel Kosinki’s article on Bollnger Bands and candlesticks. That combination has long been a passion of mine. I prepared a paper for the 2001 IFTA conference in Tokyo comparing the outcomes of the karakasa pattern at the upper, middle, and lower Bollinger Bands and found it to be most effective at the upper band ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20184.gif"",""height"":""642"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-12-6-62-letters-to-s-c-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-12-6-62-letters-to-s-c-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov376exyo,d,"{""minimum-quantity"":""1"",""path"":""ch12d2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:12 (60–61): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
WHAT THE GREEKS ARE TELLING YOU
I have learned and understand the basics of a number of option trading strategies. But I am wondering if there are ways to gain an “edge” that I might be missing.
For any given security, there is typically any number of ways to craft a position to take advantage of whatever outlook you may have for that security ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20178.gif"",""height"":""642"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-12-60-61-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-12-60-61-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov3771945,d,"{""minimum-quantity"":""1"",""path"":""ch12d2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:12 (7, 19): 45° Angle Breakouts by Ken Calhoun"",""caption-linebreaks"":""45° Angle Breakouts by Ken Calhoun
One of the strongest swing trading breakout patterns is the 45° angle multi week uptrend. Here’s what to look for and how you can trade it.
If you have ever been stopped out during choppy markets, you know how frustrating this can be ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18452.gif"",""height"":""642"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-12-7-19-45-angle-breakouts-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-12-7-19-45-angle-breakouts-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov378alpo,d,"{""minimum-quantity"":""1"",""path"":""ch12d2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:12 (8–14): An All-Weather Portfolio by Anthony Garner"",""caption-linebreaks"":""An All-Weather Portfolio by Anthony Garner
Here, we’ll look at how you can structure a portfolio to achieve a good balance between gains and volatility, and how you can program a backtest for it using code in the Python language.
The “All Weather Portfolio” was developed and made famous by Ray Dalio of Bridgewater Associates, one of the world’s largest hedge funds. It is the investing strategy used in its All Weather Fund. But what is this strategy?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18449.gif"",""height"":""642"",""width"":""485""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-12-8-14-an-all-weather-portfolio-by-anthony-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-12-8-14-an-all-weather-portfolio-by-anthony-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37128ko,d,"{""minimum-quantity"":""1"",""path"":""ch13bis207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:13 (12–16, 28): The Kondratieff Wave Revisited by Koos van der Merwe"",""caption-linebreaks"":""The Kondratieff Wave Revisited by Koos van der Merwe
Given the recent market volatility, is the decade-long bull market over? And if we did enter a bear market, in what year might the market bottom and a new bull market begin? Here’s a market outlook based on an updated look at K-waves and Elliott waves.
In my article “What To Expect In 2018” published last February in the 2018 Bonus Issue of Technical Analysis of STOCKS & COMMODITIES magazine, I concluded after studying Elliott wave and the Kondratieff wave that a correction should occur sometime in the year 2018. I stated that the year would be an interesting year—a year to be cautious and a year to watch carefully. With the present correction in the market, my forecast was accurate ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20202.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-13-12-16-28-the-kondratieff-wave-revisited-by-koos-van-der-merwe-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-13-12-16-28-the-kondratieff-wave-revisited-by-koos-van-der-merwe-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37131st,d,"{""minimum-quantity"":""1"",""path"":""ch13bis207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:13 (18–19, 31): Stocks Could Face A Challenging Year by Fawad Razaqzada"",""caption-linebreaks"":""Stocks Could Face A Challenging Year by Fawad Razaqzada
What does 2019 hold for us? While there’s no certain answer to that question until the year ends, we can at least look at some “big picture” indicators to make forecasts.
After a poor start, the US stock markets recovered noticeably to end the month of January 2019 higher. Sentiment improved mainly on the back of hopes that China and the US would end their ongoing trade spat and reach a deal in the months ahead. In addition, the Federal Reserve more or less announced that it will be pausing its hiking cycle following four interest rate rises in 2018 ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20199.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-13-18-19-31-stocks-could-face-a-challenging-year-by-fawad-razaqzada-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-13-18-19-31-stocks-could-face-a-challenging-year-by-fawad-razaqzada-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37231us,d,"{""minimum-quantity"":""1"",""path"":""ch13bis207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:13 (20–24, 31): The US Long Wave Revisited by Mark Rivest"",""caption-linebreaks"":""The US Long Wave Revisited by Mark Rivest
Want a long-term cyclical outlook for the US stock market? Here’s one way to do it.
Ralph Nelson Elliott discovered that stock market prices have repeatable patterns. He called this phenomenon the wave principle, now known as Elliott wave theory. He also found that this pattern was just one part of a larger pattern with the same structure. This larger pattern was again just one part of a still larger pattern and could progress to infinity. Form remains constant but size will vary ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18428.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-13-20-24-31-the-us-long-wave-revisited-by-mark-rivest-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-13-20-24-31-the-us-long-wave-revisited-by-mark-rivest-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov372foma,d,"{""minimum-quantity"":""1"",""path"":""ch13bis207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:13 (26–28): Forecasting A Market Recovery After A 10% (Or More) Correction by Gideon Vigderhous, PhD"",""caption-linebreaks"":""Forecasting A Market Recovery After A 10% (Or More) Correction by Gideon Vigderhous, PhD
Market declines can cause the powerful emotions of fear and greed to take over our decision-making abilities. When you notice that happening, try to think rationally.
When a market declines more than 10%, it’s reason enough for investors and traders to be concerned. Do you hold your positions and ride out the drop even if it gets worse, or do you exit your positions and reenter after the market has begun its road to recovery?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18425.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-13-26-28-forecasting-a-market-recovery-after-a-10-or-more-correction-by-gideon-vigderhous-phd-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-13-26-28-forecasting-a-market-recovery-after-a-10-or-more-correction-by-gideon-vigderhous-phd-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37320re,d,"{""minimum-quantity"":""1"",""path"":""ch13bis207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:13 (32–40): 2019 Readers’ Choice Awards by Technical Analysis, Inc."",""caption-linebreaks"":""2019 Readers’ Choice Awards by Technical Analysis, Inc.
We are pleased to present the Technical Analysis of STOCKS & COMMODITIES magazine 2019 Readers’ Choice Awards (RCA). Each year, we put before our readers a ballot of products and services related to technical analysis and trading. The following pages present the products and services you and your peers chose this year as your favorites.
The Readers’ Choice Awards begins each year with a list of products gathered by the editors of STOCKS & COMMODITIES, with space for write-in votes (given that our list doesn’t claim to be complete). Then, to find out what our readers find to be the most useful for their trading, we ask them to choose their favorite products or the ones they find most useful from various categories by going to our website, Traders.com, and filling out the survey there ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18422.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-13-32-40-2019-readers-choice-awards-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-13-32-40-2019-readers-choice-awards-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37420sc,d,"{""minimum-quantity"":""1"",""path"":""ch13bis207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:13 (42–43): 2018 S&C Articles by Technical Analysis, Inc."",""caption-linebreaks"":""2018 S&C Articles by Technical Analysis, Inc.
If you weren’t subscribing to Technical Analysis of STOCKS & COMMODITIES, The Traders’ Magazine, throughout 2018, you missed out on a lot of information. Here is some of what you missed ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18419.gif"",""height"":""476"",""width"":""360""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-13-42-43-2018-s-c-articles-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-13-42-43-2018-s-c-articles-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37420tr,d,"{""minimum-quantity"":""1"",""path"":""ch13bis207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:13 (44): 2018 Traders.com Advantage Articles by Technical Analysis, Inc."",""caption-linebreaks"":""2018 Traders.com Advantage Articles by Technical Analysis, Inc.
Here is a sample of the articles you missed in 2018 if you weren’t a subscriber ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-13-44-2018-traders-com-advantage-articles-by-technical-analysis-inc-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-13-44-2018-traders-com-advantage-articles-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-13-44-2018-traders-com-advantage-articles-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov37630wh,d,"{""minimum-quantity"":""1"",""path"":""ch13bis207"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 37:13 (6–10, 30): What’s Controlling The Market? by Eric Morgan"",""caption-linebreaks"":""What’s Controlling The Market? by Eric Morgan
When the movement of the Dow Jones Industrial Average and Fibonacci levels are in line, what’s it telling you? Let’s take a look at the Dow’s history and see if its movements are truly random.
All the talk about artificial intelligence (AI) today is so pervasive that it’s worth asking the question, “Can an AI footprint be found in the market?” By “AI,” I don’t mean computer-coded algorithms but rather a natural order that can be seen as patterns in the market. Let’s explore this idea by examining the history of the Dow Jones Industrial Average (DJIA) between the years 1896 and 2007 using daily DJIA theoretical highs and lows as found in the DJIA historical database. (The DJIA theoretical high or low is calculated as if all the component stocks hit their highs or lows simultaneously during the day) ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-13-6-10-30-what-s-controlling-the-market-by-eric-morgan-29.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-13-6-10-30-what-s-controlling-the-market-by-eric-morgan-32.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-37-13-6-10-30-what-s-controlling-the-market-by-eric-morgan-33.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38121fu,d,"{""minimum-quantity"":""1"",""path"":""ch1j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:01 (16–17, 21): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
RISK REVERSALS
What is a risk reversal and how is it used?
Risk reversals can be used as an aggressive form of speculation or an efficient means of hedging the price risk of an underlying asset such as a stock portfolio or even an agricultural farm product ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19544.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-16-17-21-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-16-17-21-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov381selo,d,"{""minimum-quantity"":""1"",""path"":""ch1j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:01 (18–21): Seeking Long-Term Growth With The Power Zone/Dead Zone Approach by Jay A. Kaeppel"",""caption-linebreaks"":""Seeking Long-Term Growth With The Power Zone/Dead Zone Approach by Jay A. Kaeppel
Here’s an investing approach that seeks to take advantage of seasonality in the stock market.
The concept of “sell in May and go away” was first popularized by Yale Hirsch, founder of the Stock Trader’s Almanac, back in the early 1970s and has been analyzed six ways to Sunday and been deemed “valid,” “false,” and everything in between depending on how you look at it. Here is one point of view ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19547.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-18-21-seeking-long-term-growth-with-the-power-zone-dead-zone-approach-by-jay-a-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-18-21-seeking-long-term-growth-with-the-power-zone-dead-zone-approach-by-jay-a-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov3828paf,d,"{""minimum-quantity"":""1"",""path"":""ch1j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:01 (22–25): An 8-Day Pattern For Short-Term Traders by Omar Ait Hellal, PhD, and Chen Zhang"",""caption-linebreaks"":""An 8-Day Pattern For Short-Term Traders by Omar Ait Hellal, PhD, and Chen Zhang
Here is a continuation pattern that could help swing traders capture some gains in stocks or ETFs that are trending.
Most swing traders don’t hold their positions for more than a few days. They aim to exploit quick momentum of stocks and commodities and rely mainly on trading patterns. Some patterns indicate reversals and others a continuation of a prevailing trend. In general, continuation patterns are of great interest, since established trends tend to continue for a sufficient period of time and can be exploited “more safely” for a decent profit ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-22-25-an-8-day-pattern-for-short-term-traders-by-omar-ait-hellal-phd-and-chen-zhang-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-22-25-an-8-day-pattern-for-short-term-traders-by-omar-ait-hellal-phd-and-chen-zhang-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-22-25-an-8-day-pattern-for-short-term-traders-by-omar-ait-hellal-phd-and-chen-zhang-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38233wa,d,"{""minimum-quantity"":""1"",""path"":""ch1j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:01 (26–29, 33): Water ETFs: Go With The Flow Or Not? by Leslie N. Masonson"",""caption-linebreaks"":""Water ETFs: Go With The Flow Or Not? by Leslie N. Masonson
Water is a lifesaver around the world and will always be an essential and critical element of our lives and the planet’s survival. Some investors may wish to consider adding a small position of one of these ETFs to their portfolio. Since two of these ETFs (CGW and FIW) have outperformed the S&P 500 over the last 12.5 years, they may have a place in an investor’s portfolio.
According to the United Nations Office for Disaster Risk Reduction, 2.1 billion people do not have access to safely managed drinking water, 90% of all natural disasters are water-related, and water scarcity impacts four out of ten people ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17885.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-26-29-33-water-etfs-go-with-the-flow-or-not-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-26-29-33-water-etfs-go-with-the-flow-or-not-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov383stet,d,"{""minimum-quantity"":""1"",""path"":""ch1j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:01 (30–33): Studying ETFs Online With R by Guy Brys, PhD, and Luc Van Hof"",""caption-linebreaks"":""Studying ETFs Online With R by Guy Brys, PhD, and Luc Van Hof
Here is an example of using an open-source language, R, to code indicators, which the authors then used to create their own app that can compare ETFs. Here is how they did it.
Exchange traded funds (ETFs) are one of the most important and valuable products created for individual investors in recent years. ETFs offer many benefits and, if used wisely, are an excellent vehicle to achieve an investor’s investment goals ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17882.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-30-33-studying-etfs-online-with-r-by-guy-brys-phd-and-luc-van-hof-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-30-33-studying-etfs-online-with-r-by-guy-brys-phd-and-luc-van-hof-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov383diwi,d,"{""minimum-quantity"":""1"",""path"":""ch1j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:01 (34–41): A Discussion with Robert W. Colby, CMT by Leslie N. Masonson"",""caption-linebreaks"":""Interview: A Discussion with Robert W. Colby, CMT by Leslie N. Masonson
Robert W. Colby, CMT, is Chief Investment Officer at Robert W. Colby Asset Management, Inc., a Registered Investment Advisory (RIA) firm based in New York City. He has 50 years of professional experience in research, trading, and portfolio management at several large Wall Street firms. As an adjunct professor at both New York University and New York Institute of Finance, he developed and taught new courses on market timing for investors and on technical analysis for traders.
Colby is the author of The Encyclopedia Of Technical Market Indicators (first edition 1988, second edition 2003), which is a standard reference on indicators and trading system design.
Currently, at his RIA firm, he uses technical analysis to actively manage several different portfolios of stocks and bonds, with the objective of producing positive absolute returns regardless of market conditions while taking controlled and low risks.
STOCKS & COMMODITIES Contributing Writer and ETF columnist Leslie N. Masonson interviewed Colby via email in early November 2019 to discuss his extensive career in technical analysis, research, rules-based trading strategies, and money management.
In your interview with STOCKS & COMMODITIES magazine in the December 2006 issue, you explained how your interest in the stock market began in the 1960s. Now, with 50 years of professional investment experience, I was wondering what you have found to be the most important principles of successful investing?
ABLESYS CORPORATION
\n8407 Central Ave.\nNewark, CA 94560\nPhone: 510 265-1883
\nTech support: 510 265-1895 Email: support@AbleSys.com
\nInternet: www.wintick.com
\nProduct: Trading software providing real-time and end-of-day buy and sell signals on stocks, ETFs, futures, and eminis
\nData updates: AbleSys provides vari-ous real-time options at different price points. Other options are detailed later in this article under the heading of “Datafeeds”
\nRequirements: Internet connection Annual lease option: AbleTrend end-of-day for $1,999 with Wintick or AbleTrend Real-Time for eSignal, NinjaTrader Standalone version: $2,995
\nFull purchase option: AbleTrend (EOD) without WinTick $2,995; the other three are $5,995 each. $30-day trial for $99.
AbleSys Corporation, founded in 1994, first provided trading software to the public in 1995. Since then, subscribers around the world have signed up for the company’s systematic trading approach, and many are still customers today, with 117 testimonials on the company’s website. The longevity and value of their offering is reinforced by their receiving a Readers’ Choice Award in this magazine for three categories (stock, futures and options trading) for 23 consecutive years ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17888.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-42-45-product-review-abletrend-7-0-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-42-45-product-review-abletrend-7-0-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov384gopr,d,"{""minimum-quantity"":""1"",""path"":""ch1j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:01 (47–47): Gold: Protection From Market Crashes? by Slawomir Bobrowski"",""caption-linebreaks"":""Gold: Protection From Market Crashes? by Slawomir Bobrowski
There are many sayings and wisdoms about the markets, and many of them exist for good reason. But technical analysts never assume; rather, they put things to the test. Here’s a quick analysis on whether gold retains its value during market downturns.
Stock market “gurus” send conflicting messages as to the role of gold in a market crash environment. Some claim that gold retains its value during crises, thus being an insurance asset that should be part of any long-term portfolio. Meanwhile, others claim that historically, gold loses value by following falling markets ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17829.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-47-47-gold-protection-from-market-crashes-by-slawomir-bobrowski-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-47-47-gold-protection-from-market-crashes-by-slawomir-bobrowski-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov384exyo,d,"{""minimum-quantity"":""1"",""path"":""ch1j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:01 (48–49): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
“BUY/WRITE” STRATEGY
I am looking for a conservative way to trade options. I read recently about the “buy/write” strategy—that is, buying shares of stock and simultaneously selling a call option against it. Is this a useful strategy? Or is there a better alternative?
One thing to know about option trading is that there are no “definitive answers” to questions like this. Mostly, there is deciding which objective(s) you are trying to achieve and then crafting a position that can achieve that/those objective(s)—while keeping risk at an acceptable level ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17826.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-48-49-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-48-49-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov385trti,d,"{""minimum-quantity"":""1"",""path"":""ch1j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:01 (50–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Jay Leavitt’s article in the October 2019 issue “An Interplanetary Marriage.” Here, we present the January 2020 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17832.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-50-56-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-50-56-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov386leto,d,"{""minimum-quantity"":""1"",""path"":""ch1j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:01 (6): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
LEAVITT INDICATORS, TRADERS’ TIPS IN THIS ISSUE
Editor,
\nI have read Jay Leavitt’s articles in your magazine including his most recent one in the October 2019 issue, “An Interplanetary Marriage” on the Mars strategy.
I found the articles really interesting and stimulating and I thank him for sharing his research with a wider audience ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19532.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-6-letters-to-s-c-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-6-letters-to-s-c-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov386trpe,d,"{""minimum-quantity"":""1"",""path"":""ch1j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:01 (60–61): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
THE PENDULUM WILL SWING
From 2004 to 2007, many books and articles expounded the virtues of how value-over-growth strategies and methods had dominated since the 1950s. This meant that key metrics like price-to-book and price-to-earnings had hands-down won the metrics marathon during those years ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-60-61-trading-perspectives-by-rob-friesen-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-60-61-trading-perspectives-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-60-61-trading-perspectives-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov386alqa2,d,"{""minimum-quantity"":""1"",""path"":""faarfr2012"",""ysw-page-title"":""Stocks & Commodities V. 38:01 (62): Algo Q&A by Kevin J. Davey"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-62-algo-q-a-by-kevin-j-davey-14.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-62-algo-q-a-by-kevin-j-davey-15.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-62-algo-q-a-by-kevin-j-davey-16.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov386alqa,d,"{""minimum-quantity"":""1"",""path"":""ch1j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:01 (62): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
SOURCING TRADING IDEAS
I have seen some of your YouTube videos, and you mention the need for finding trading ideas. I always struggle with this. Can you help me with sources of trading ideas?
The way I see it, trading ideas are the lifeblood of any algo trader. Ideas are the raw material to create the end product, a trading strategy. So you can easily see that without any new ideas to test and evaluate, your strategy development process will grind to a halt ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19585.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-62-algo-q-a-by-kevin-j-davey-12.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-62-algo-q-a-by-kevin-j-davey-13.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38761sc,d,"{""minimum-quantity"":""1"",""path"":""ch1j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:01 (7, 61): Scaling In To Swing Trades by Ken Calhoun"",""caption-linebreaks"":""Scaling In To Swing Trades by Ken Calhoun
Position sizing is an important concept in trading. Here is a look at using multiple entry points to reduce the risk of any one entry point.
One of the biggest differences between professional versus amateur trading is the proper use of position sizing, also known as “scaling in.” Adding more shares to a winning position is an outstanding way to leverage your capital, and can help you reduce the likelihood of selling your winners too soon ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-7-61-scaling-in-to-swing-trades-by-ken-calhoun-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-7-61-scaling-in-to-swing-trades-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-7-61-scaling-in-to-swing-trades-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov388spon,d,"{""minimum-quantity"":""1"",""path"":""ch1j2011"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:01 (8–15): Spying On The SPY by Hector Landazabal"",""caption-linebreaks"":""Spying On The SPY by Hector Landazabal
Most of the signals that traders rely on for the equities market are derived from the equities market itself (such as price, patterns, volume, and breadth indicators). But there’s another dimension you can use. Get an independent window into the stock market by finding out what another asset class—the influential bond market—is telling us about it.
I often trade the SPY ETF. Like anyone else, before initiating a trade, I like to know if the equity is overvalued or undervalued, overbought or oversold, and whether it will probably go up, down, or range. The answers to these questions are provided by the market sooner or later ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-8-15-spying-on-the-spy-by-hector-landazabal-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-8-15-spying-on-the-spy-by-hector-landazabal-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-01-8-15-spying-on-the-spy-by-hector-landazabal-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov381ussc,d,"{""minimum-quantity"":""1"",""path"":""ch2f2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:02 (10–17): Using Scaling Laws For The Development Of FX Trading Models by Richard Poster"",""caption-linebreaks"":""Using Scaling Laws For The Development Of FX Trading Models by Richard Poster
Can the fractal properties of financial time data be used to develop effective trading models? Here’s a look at using scaling laws, which describe fractal behavior, for the development of trading models for forex.
Scaling laws arise from systems that have a fractal geometry. Fractals are self-similar systems. What is a “self-similar” system? If a scale is the level of detail as we look at an object, then a self-similar object still looks like itself at different scales ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17654.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-10-17-using-scaling-laws-for-the-development-of-fx-trading-models-by-richard-poster-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-10-17-using-scaling-laws-for-the-development-of-fx-trading-models-by-richard-poster-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov381spfo,d,"{""minimum-quantity"":""1"",""path"":""ch2f2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:02 (18–21): A Spreadsheet For A Trend-Following Approach by Ron McEwan"",""caption-linebreaks"":""A Spreadsheet For A Trend-Following Approach by Ron McEwan
Here’s a template for a spreadsheet that anyone can use to set up a simple trend-following system.
The cult classic 1980s movie Trading Places was supposedly based on the famous Wall Street legend of two great traders, Richard Dennis and his partner William Eckhardt. The story goes that the two had a disagreement over whether trading skills were an innate talent or whether they were a skill that could be learned or taught ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17648.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-18-21-a-spreadsheet-for-a-trend-following-approach-by-ron-mcewan-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-18-21-a-spreadsheet-for-a-trend-following-approach-by-ron-mcewan-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38229no,d,"{""minimum-quantity"":""1"",""path"":""ch2f2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:02 (22–23, 29): A Nondirectional Trading Strategy For Cryptocurrencies, Part 1 by Azeez Mustapha"",""caption-linebreaks"":""A Nondirectional Trading Strategy For Cryptocurrencies, Part 1 by Azeez Mustapha
Crypto markets can move faster and more predictably than other markets, so these markets are attractive to traders. Here is a trading strategy you can use whether the cryptocurrency being traded is falling or rising. Here in part 1, the focus is bitcoin.
I will forever regret not investing in bitcoin when it was only $0.5. I thought it was a scam and would be a waste of money and energy. While I occasionally watched bitcoin price movements, I was not interested in it at all. Now, I can’t imagine how much I would have made if I had invested just $100 in bitcoin when it was $0.5. Given the current price of bitcoin, think how it would feel to own 200 bitcoin now ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17651.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-22-23-29-a-nondirectional-trading-strategy-for-cryptocurrencies-part-1-by-azeez-mustapha-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-22-23-29-a-nondirectional-trading-strategy-for-cryptocurrencies-part-1-by-azeez-mustapha-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov382howt,d,"{""minimum-quantity"":""1"",""path"":""ch2f2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:02 (24–25): How To Describe Corrections In The US Equity Market by Anatoly B. Schmidt, PhD"",""caption-linebreaks"":""How To Describe Corrections In The US Equity Market by Anatoly B. Schmidt, PhD
Even when you assign a fairly concrete definition to the term “correction” or “bear market,” it’s still not easy to know at what point one began. Here is one proposed solution.
Corrections in the US equity market are usually defined as declines of the S&P 500 index by more than 10% (but less than 20%) from its most recent peak. Corrections exceeding 20% are usually considered bear markets ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17663.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-24-25-how-to-describe-corrections-in-the-us-equity-market-by-anatoly-b-schmidt-phd-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-24-25-how-to-describe-corrections-in-the-us-equity-market-by-anatoly-b-schmidt-phd-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov382sedi,d,"{""minimum-quantity"":""1"",""path"":""ch2f2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:02 (26–28): The Sentiment Dimension by Mark Rivest"",""caption-linebreaks"":""The Sentiment Dimension by Mark Rivest
You can use market sentiment readings to help locate turns in the market. Here are some to pay attention to.
Most traders and market analysts focus on just one dimension: price. Market direction and turns can be discovered using methods like Elliott wave analysis or chart patterns such as those described by Edwards & Magee in their classic book on market analysis ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17666.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-26-28-the-sentiment-dimension-by-mark-rivest-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-26-28-the-sentiment-dimension-by-mark-rivest-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38343mi,d,"{""minimum-quantity"":""1"",""path"":""ch2f2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:02 (30–35, 43): A Minute With Michele “Mish” Schneider by Karl Montevirgen"",""caption-linebreaks"":""A Minute With Michele “Mish” Schneider by Karl Montevirgen
Michele “Mish” Schneider is the director of education & trading research for MarketGauge.com, where she is a market analyst, writer, and producer of daily market analysis in “Mish’s Daily.” She also serves as a developer and trading mentor in several of MarketGauge’s trading services. To these roles, she brings her background in trading and her experience as a professional educator.
With more than 30 years of commodity trading experience, she is a former member of the Coffee, Sugar and Cocoa Exchange, NYMEX, and FINEX in New York City. While on the trading floor she also served as a market analyst for two of the largest commodity trading firms at the time, Conti-Commodities and Prudential Bache. She also has been an independent trader for her own account. She coauthored MarketGauge’s Complete Swing Trading System and served as a trader/partner in Halcyon Trading LP, a hedge fund. She is currently a partner in MarketGauge Asset Management Company, LLC, and a partner in Wizard IP, a software development company working to develop trading technologies. Her new book is Plant Your Money Tree: A Guide to Growing Your Wealth, which seeks to present investing, trading, and analysis concepts in a way that is understandable and usable by anyone.
S&C Contributing Writer Karl Montevirgen spoke with Mish Schneider on December 13, 2019."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17657.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-30-35-43-a-minute-with-michele-mish-schneider-by-karl-montevirgen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-30-35-43-a-minute-with-michele-mish-schneider-by-karl-montevirgen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov383fofu,d,"{""minimum-quantity"":""1"",""path"":""ch2f2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:02 (36–39): Fossil Fuels Vs. Clean Energy: Time To Shift Your Money? by Matt Blackman"",""caption-linebreaks"":""Fossil Fuels Vs. Clean Energy: Time To Shift Your Money? by Matt Blackman
There’s a lot of talk these days of “clean energy” companies as revenues slowly begin to rise in this sector. Want to get in on this upcoming arena? Here’s a look at some of the newer technologies and how returns are stacking up against more traditionally based companies.
In the 18th century, the first industrial revolution ushered in a new age of coal-fired steam power. Cheap gas and oil powered the next industrial revolution in the mid-19th century, which brought us liquid-cooled internal combustion engines ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17660.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-36-39-fossil-fuels-vs-clean-energy-time-to-shift-your-money-by-matt-blackman-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-36-39-fossil-fuels-vs-clean-energy-time-to-shift-your-money-by-matt-blackman-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov384posi,d,"{""minimum-quantity"":""1"",""path"":""ch2f2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:02 (40–41): Position Sizing Basics by John Devcic"",""caption-linebreaks"":""Position Sizing Basics by John Devcic
Are you giving enough consideration to this very important part of the trading equation?
Traders spend much of their time looking at charts and analyzing price action as well as either using technical or fundamental analysis, or a combination of both. While these indeed are all very good things to spend time on, not all traders and investors take the time to focus on position sizing ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19468.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-40-41-position-sizing-basics-by-john-devcic-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-40-41-position-sizing-basics-by-john-devcic-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov384swtr,d,"{""minimum-quantity"":""1"",""path"":""ch2f2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:02 (42–43): Swing Trading MACD Pivots by Ken Calhoun"",""caption-linebreaks"":""Swing Trading MACD Pivots by Ken Calhoun
After sustained selling, you may be interested in purchasing shares of a stock that is starting to pivot back to the upside. Here is a signal you can use to help time that.
Although breakouts usually produce the best entries, during volatile markets it is often a good idea to also look for pivots ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19471.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-42-43-swing-trading-macd-pivots-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-42-43-swing-trading-macd-pivots-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov384swtr1,d,"{""minimum-quantity"":""1"",""path"":""faarfr2012"",""ysw-page-title"":""Stocks & Commodities V. 38:02 (42–43): Swing Trading MACD Pivots by Ken Calhoun"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-21832.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-42-43-swing-trading-macd-pivots-by-ken-calhoun-7.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-42-43-swing-trading-macd-pivots-by-ken-calhoun-8.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov384fufo,d,"{""minimum-quantity"":""1"",""path"":""ch2f2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:02 (44): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
IS PAPER TRADING EFFECTIVE?
What is the correlation between paper trading success and live trading success?
I am not aware of any reliable data on the relationship between paper trading performance and that of live trading, but I am almost certain they are negatively correlated ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19462.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-44-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-44-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38447al,d,"{""minimum-quantity"":""1"",""path"":""ch2f2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:02 (45, 47): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
DIFFERENCE BETWEEN USING ALGOS FOR STOCKS VS. FUTURES?
I notice in your past columns and writings you primarily discuss algo trading in the futures markets. Any tips for those of us who want to algo trade stocks?
While it is true that my own trading is mainly based in futures trading, you can algo trade any market, whether it is futures, forex, stocks, options, or even cryptocurrencies. In each different area, however, there are some nuances you must be aware of ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19465.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-45-47-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-45-47-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov384exyo1,d,"{""minimum-quantity"":""1"",""path"":""ch2f2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:02 (46–47): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
CREDIT SPREADS: WHEN TO USE THEM?
I think a particular stock is going to move in a certain direction but I don’t have a high degree of conviction. Is there a way to play this situation other than buying calls or puts?
Most investors focus on what they think is going to happen, that is, the market will go up (or down), a particular stock or security will go up (or down), and so forth ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19453.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-46-47-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-46-47-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov384trti,d,"{""minimum-quantity"":""1"",""path"":""ch2f2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:02 (48–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is John Ehlers’ article in this issue “Reflex: A New Zero-Lag Indicator.” Here, we present the February 2020 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19456.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-48-56-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-48-56-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov385leto,d,"{""minimum-quantity"":""1"",""path"":""ch2f2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:02 (56): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
EXPONENTIAL DEVIATION
Editor,
\nI appreciated John Bollinger’s comments in Letters To S&C regarding my articles ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19447.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-56-letters-to-s-c-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-56-letters-to-s-c-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov386trpe1,d,"{""minimum-quantity"":""1"",""path"":""ch2f2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:02 (60–61): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
LET THERE BE…MERGERS & MEGA DEALS
We saw an increase of deals in the last quarter of 2019 with many US-based mega mergers.
The rest of the world has seen a substantial decline in mergers, so this leads me to think that there is a reason that US deals are on the rise ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19450.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-60-61-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-60-61-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov386bofo,d,"{""minimum-quantity"":""1"",""path"":""ch2f2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:02 (62): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
Patient Capital: The Challenge & Promises Of Long-Term Investing by Victoria Ivashina & Josh Lerner
Narrative Economics: How Stories Go Viral And Drive Major Economic Events by Robert J. Shiller
The Ultimate ETF Guidebook: A Comprehensive Guide To The World Of Exchange-Traded Funds—Including The Latest Innovations And Ideas For ETF Portfolios by David Stevenson and David Tuckwell"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17683.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-62-books-for-traders-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-62-books-for-traders-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38621re1,d,"{""minimum-quantity"":""1"",""path"":""faarfr2012"",""ysw-page-title"":""Stocks & Commodities V. 38:02 (6–8, 21): Reflex: A New Zero-Lag Indicator by John F. Ehlers"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-21833.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-6-8-21-reflex-a-new-zero-lag-indicator-by-john-f-ehlers-31.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-6-8-21-reflex-a-new-zero-lag-indicator-by-john-f-ehlers-32.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38621re,d,"{""minimum-quantity"":""1"",""path"":""ch2f2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:02 (6–8, 21): Reflex: A New Zero-Lag Indicator by John F. Ehlers"",""caption-linebreaks"":""Reflex: A New Zero-Lag Indicator by John F. Ehlers
For indicators to be useful, the indications they produce can’t arrive too late. Toward that all-important goal, here we introduce a new indicator plus a variation on that indicator that you will want to add to your charts.
Reduction of lag is probably the most desirable characteristic for an indicator. That is because in trading, even if you get the right answer, it is of no value if the indication comes after the opportunity has passed ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-6-8-21-reflex-a-new-zero-lag-indicator-by-john-f-ehlers-25.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-6-8-21-reflex-a-new-zero-lag-indicator-by-john-f-ehlers-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-02-6-8-21-reflex-a-new-zero-lag-indicator-by-john-f-ehlers-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov381usre,d,"{""minimum-quantity"":""1"",""path"":""ch3m2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:03 (14–23): Using Relative Strength To Outperform The Market by Markos Katsanos"",""caption-linebreaks"":""Using Relative Strength To Outperform The Market by Markos Katsanos
Take advantage of the performance differential of a stock versus the market with this new indicator.
Relative strength measures the relationship between two securities. The most common relative strength (RS) indicator, available in almost all technical analysis software, is calculated by dividing the price of one security by another ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19124.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-03-14-23-using-relative-strength-to-outperform-the-market-by-markos-katsanos-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-03-14-23-using-relative-strength-to-outperform-the-market-by-markos-katsanos-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov3821sta,d,"{""minimum-quantity"":""1"",""path"":""ch3m2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:03 (24–27): The 1st And 2nd Cross by Perry J. Kaufman"",""caption-linebreaks"":""The 1st And 2nd Cross by Perry J. Kaufman
Traders know it is not possible to perfectly capture a full trend from its exact beginning to exact end. Here’s a way you can capture a small but profitable portion of it, and with low drawdowns.
Linda Bradford Raschke is one of the trading stars of our generation. I was fortunate to travel with her in the mid-1990s when we toured for Dow Jones under the protective leadership of Tim Slater, another wonderful person who has facilitated many careers. In Australia, Linda presented the 1st Cross System ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19127.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-03-24-27-the-1st-and-2nd-cross-by-perry-j-kaufman-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-03-24-27-the-1st-and-2nd-cross-by-perry-j-kaufman-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov382inso,d,"{""minimum-quantity"":""1"",""path"":""ch3m2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:03 (28–31): The Ins & Outs Of Moving Averages Part 1 by Fawad Razaqzada"",""caption-linebreaks"":""The Ins & Outs Of Moving Averages Part 1 by Fawad Razaqzada
They are ubiquitous on price charts and an integral part of technical analysis. Do you know everything you should about using them?
In my 10 years of experience in the markets, I have seen many traders use moving averages in many different ways. Some base their entire trading strategies on moving averages, while others use them merely as guides in determining the direction of the trend ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17301.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-03-28-31-the-ins-outs-of-moving-averages-part-1-by-fawad-razaqzada-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-03-28-31-the-ins-outs-of-moving-averages-part-1-by-fawad-razaqzada-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov383cowi,d,"{""minimum-quantity"":""1"",""path"":""ch3m2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:03 (32–39): A Conversation With Charles D. Kirkpatrick II, CMT by Leslie N. Masonson"",""caption-linebreaks"":""A Conversation With Charles D. Kirkpatrick II, CMT by Leslie N. Masonson
Charles D. Kirkpatrick II, CMT is president of Kirkpatrick & Company, Inc., Kittery, Maine—a private technical analysis research firm that he founded in 1978. He was the publisher and editor of the Market Strategist newsletter until it ceased publication in October 2017. The newsletter provided portfolio baskets that successfully exceeded their benchmarks over many years.
His 50-year investment and trading career has encompassed writing, speak-ing, and educating those interested in how the markets work and in becoming successful investors. He co-authored with Julie Dahlquist Technical Analysis: The Complete Resource For Financial Market Technicians, which is used as the core text for the Chartered Market Technician designation offered by the CMT Association (formerly known as the Market Technicians Association or MTA). He also authored two other technically oriented books in 2009 and 2014 with a heavy focus on the value of relative strength analysis (see the “Further reading” section at end).
Kirkpatrick has contributed articles to Barron’s and has been quoted in Futures magazine, Forbes, Business Week, and The Wall Street Journal. He has been a guest on “Wall $treet Week” and CNBC as well as a speaker at numerous professional associations and organizations in the securities industry.
Kirkpatrick is the only two-time winner of the CMT’s prestigious Charles H. Dow Award in 1993 and 2001 for his technical analysis research, as well as the MTA Annual Award in 2008 for “outstanding contributions to the field of technical analysis,” and winner in 2012 of the Mike Epstein Award from the MTA Educational Foundation for “long-term sponsorship of technical analysis in academia.”
He was an adjunct professor of finance at Brandeis University International Business School, where he taught technical analysis. Kirkpatrick is a graduate of Phillips Exeter Academy, Harvard College (AB), and the Wharton School at the University of Pennsylvania (MBA). He is a past board member of the CMT Association; past editor of the CMT’s Journal Of Technical Analysis; past board member and vice president of the Market Technicians Association Educational Foundation; and a member of the American Association of Professional Technicians.
STOCKS & COMMODITIES Contributing Writer and ETF Columnist Leslie N. Masonson interviewed Charles D. Kirkpatrick II on January 17, 2020 via email to discuss his extensive career as an acclaimed technical analyst, market researcher, professor, and esteemed author."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-03-32-39-a-conversation-with-charles-d-kirkpatrick-ii-cmt-by-leslie-n-masonson-25.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-03-32-39-a-conversation-with-charles-d-kirkpatrick-ii-cmt-by-leslie-n-masonson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-03-32-39-a-conversation-with-charles-d-kirkpatrick-ii-cmt-by-leslie-n-masonson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38447wo,d,"{""minimum-quantity"":""1"",""path"":""ch3m2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:03 (40–44, 47): The World Of Technology: QQQ Powering Ahead by Leslie N. Masonson"",""caption-linebreaks"":""The World Of Technology: QQQ Powering Ahead by Leslie N. Masonson
Do you want to participate in the possible future growth of technology stocks without having to take on the effort and risk of individual stock selection? Here’s a close-up look at the QQQ, the ETF that holds many Nasdaq technology stocks. We look at its components, its characteristics, and compare it to other similar or competing ETFs.
In 2019, the three major stock market averages rocketed higher, after first tumbling nearly 20% in the fourth quarter of 2018. In particular, the Nasdaq Composite was the clear leader with an advance of 35.2%, its best performance since 2013 when it rose 38% ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17295.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-03-40-44-47-the-world-of-technology-qqq-powering-ahead-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-03-40-44-47-the-world-of-technology-qqq-powering-ahead-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38455al,d,"{""minimum-quantity"":""1"",""path"":""ch3m2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:03 (45, 55): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
STRATEGY DEVELOPMENT
I was developing a strategy, and I normally use walkforward testing as part of my usual algo development process. Today, I created a strategy, and with no optimization of any kind, the initial ver-sion I created had a great-looking equity curve. I’m torn—should I just keep this unoptimized, non-standard version?
There is quite a lot to cover in your question ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17298.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-03-45-55-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-03-45-55-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov384exyo2,d,"{""minimum-quantity"":""1"",""path"":""ch3m2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:03 (46–47): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
KEEPING IT SIMPLE
I am trying to “keep it simple” and stick to just buying calls and puts. But I am wondering if there is a way to narrow down the option-buying process to make it more systematic.
Even when you are simply buying calls and puts, it is important to remember that there is no “one best way” to do anything ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17313.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-03-46-47-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-03-46-47-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov384trti1,d,"{""minimum-quantity"":""1"",""path"":""ch3m2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:03 (48–55): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Markos Katsanos’ article in this issue “Using Relative Strength To Outperform The Market.” Here, we present the March 2020 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17316.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-03-48-55-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-03-48-55-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov385fufo,d,"{""minimum-quantity"":""1"",""path"":""ch3m2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:03 (56): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
WHAT IS LEVERAGE AND WHAT DOES IT MEAN TO COMMODITY TRADERS?
Outside the world of finance, the term leverage is used to describe the practice of utilizing one object to maximize the mechanical advantage of exertion being used to accomplish a goal. It can also be used to describe the influence a person, or entity, has on the decisions and behaviors of others ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17307.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-03-56-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-03-56-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38639le,d,"{""minimum-quantity"":""1"",""path"":""ch3m2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:03 (6, 39): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
PIVOT CONDITIONS FOR THE LEAVITT CONVOLUTION?
Editor,
\nI have a question regarding Jay Leavitt’s November 2017 article in S&C, “Trading The Tech Emini with the Leavitt Convolution.” In the article, entry and exit conditions using pivot points are described. For example ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19121.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-03-6-39-letters-to-s-c-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-03-6-39-letters-to-s-c-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov386trpe2,d,"{""minimum-quantity"":""1"",""path"":""ch3m2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:03 (60–61): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
MANY WAYS TO USE AVERAGE TRUE RANGE (ATR)
Since the inception of markets, practitioners have been dedicated to creating technical and statistical indicators, at-tempting to gather insights, assist in timing trades, and for creating a framework relating to risk and reward ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17310.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-03-60-61-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-03-60-61-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov386bofo1,d,"{""minimum-quantity"":""1"",""path"":""ch3m2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:03 (62): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
Trading Systems, 2nd Edition: A New Approach To System Development And Portfolio Optimisation by Urban Jaekle and Emilio Tomasini
Applications Of Computational Intelligence In Data-Driven Trading by Cris Doloc
Finding Alphas: A Quantitative Approach To Building Trading Strategies, 2nd Edition by Igor Tulchinsky
Technical Analysis For Dummies, 4th Edition by Barbara Rockefeller"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19118.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-03-62-books-for-traders-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-03-62-books-for-traders-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38739go,d,"{""minimum-quantity"":""1"",""path"":""ch3m2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:03 (7, 39): Golden Cross & Cup Breakouts by Ken Calhoun"",""caption-linebreaks"":""Golden Cross & Cup Breakouts by Ken Calhoun
Using multiple entry points to scale into winning trades can increase your odds for a successful outcome. Here’s an example of one way you can do that by combining signals from a golden cross and a bullish cup breakout.
How many times have you missed an entry because you didn’t see it in time, after which the stock price continues up without you ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19130.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-03-7-39-golden-cross-cup-breakouts-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-03-7-39-golden-cross-cup-breakouts-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38823cr,d,"{""minimum-quantity"":""1"",""path"":""ch3m2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:03 (8–13, 23): Creating Synthetic Historical Data by Ken Huck"",""caption-linebreaks"":""Creating Synthetic Historical Data by Ken Huck
If you are trading some of the newer products such as ETFs or ETNs launched within the past several years, you may not have a lot of data with which to backtest. Here’s a way around that.
There has been an explosion of new investment products in recent years. While companies continue to create new mutual funds, the real expansion has been with new ETF and ETN products ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-03-8-13-23-creating-synthetic-historical-data-by-ken-huck-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-03-8-13-23-creating-synthetic-historical-data-by-ken-huck-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-03-8-13-23-creating-synthetic-historical-data-by-ken-huck-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov381thti,d,"{""minimum-quantity"":""1"",""path"":""ch4a2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:04 (14–17): Three Tips For Removing The Noise From Price Action by Evan Medeiros"",""caption-linebreaks"":""Three Tips For Removing The Noise From Price Action by Evan Medeiros
Take your chart-reading skills to the next level with these three tips.
Price is king. But let’s face it, price can be noisy. Sometimes our favorite markets enter a long period of sideways consolidation, bouncing around in a range with lots of chop and uncertainty ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19139.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-14-17-three-tips-for-removing-the-noise-from-price-action-by-evan-medeiros-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-14-17-three-tips-for-removing-the-noise-from-price-action-by-evan-medeiros-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov381notr,d,"{""minimum-quantity"":""1"",""path"":""ch4a2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:04 (18–20): A Nondirectional Trading Strategy For Cryptocurrencies Part 2 by Azeez Mustapha"",""caption-linebreaks"":""A Nondirectional Trading Strategy For Cryptocurrencies Part 2 by Azeez Mustapha
Crypto markets can move faster and more predictably than other markets, so these markets are attractive to traders. Here is a trading strategy you can use whether the cryptocurrency being traded is falling or rising. Here in the second part of a two-part series, the focus is altcoins.
Last time in part 1, I presented a nondirectional trading strategy for trading bitcoin. Of course, trading opportunities are not only found in the bitcoin market; trading opportunities are also found in other altcoin markets ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17289.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-18-20-a-nondirectional-trading-strategy-for-cryptocurrencies-part-2-by-azeez-mustapha-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-18-20-a-nondirectional-trading-strategy-for-cryptocurrencies-part-2-by-azeez-mustapha-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov382onvo,d,"{""minimum-quantity"":""1"",""path"":""ch4a2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:04 (22–25): On-Balance Volume Modified (OBVM) by Vitali Apirine"",""caption-linebreaks"":""On-Balance Volume Modified (OBVM) by Vitali Apirine
Here is a smoothed version of the classic OBV indicator with a signal line. You can use it to look for signal line crossovers and divergences.
In this article I will present a modification to the classic indicator on-balance volume (OBV), which was developed by Joe Granville and introduced in his 1963 book Granville’s New Key To Stock Market Profits ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-22-25-on-balance-volume-modi-64257-ed-obvm-by-vitali-apirine-25.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-22-25-on-balance-volume-modi-64257-ed-obvm-by-vitali-apirine-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-22-25-on-balance-volume-modi-64257-ed-obvm-by-vitali-apirine-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov382inso1,d,"{""minimum-quantity"":""1"",""path"":""ch4a2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:04 (26–30): The Ins & Outs Of Moving Averages Part 2 by Fawad Razaqzada"",""caption-linebreaks"":""The Ins & Outs Of Moving Averages Part 2 by Fawad Razaqzada
They are ubiquitous on price charts and an integral part of technical analysis. Do you know everything you should about using them? Here in part 2, we go a little deeper into the topic of moving averages.
Last time in part 1, I discussed some of the basics of moving averages including why traders should have the 200-period moving average on their daily charts. I concluded by suggesting that moving averages are a developing trader’s best friend, because they ensure and enforce objective analysis and (hopefully) your trading ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-26-30-the-ins-outs-of-moving-averages-part-2-by-fawad-razaqzada-25.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-26-30-the-ins-outs-of-moving-averages-part-2-by-fawad-razaqzada-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-26-30-the-ins-outs-of-moving-averages-part-2-by-fawad-razaqzada-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov383fufo,d,"{""minimum-quantity"":""1"",""path"":""ch4a2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:04 (31): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
WHAT IS AN IRON CONDOR STRATEGY, AND DOES IT MAKE SENSE IN COMMODITIES?
In the trading community, the use of iron condor is synonymous with a short iron condor rather than the long iron condor version ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17292.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-31-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-31-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38362co,d,"{""minimum-quantity"":""1"",""path"":""ch4a2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:04 (32–36, 62): A Conversation With Jeffrey Saut by Leslie N. Masonson"",""caption-linebreaks"":""Interview: A Conversation With Jeffrey Saut by Leslie N. Masonson
Jeffrey D. Saut has had a remarkable career on Wall Street beginning in 1971. Over the years he was employed by a number of firms where he provided his extensive market knowledge, market commentary, and research to companies, including Roney & Co.; Sterne, Agee & Leach; E.F. Hutton; Wheat First Securities; Branch Cabell & Co.; Exeter Capital Management; and Ferris, Baker, Watts, Inc. From 1999 through spring of 2019, he was employed by Raymond James as chief investment strategist and managing director of the firm’s equity research department. There, he published a weekly market letter; met with financial advisors, institutional clients, and portfolio managers; and made daily strategy calls to the firm’s professionals.
Saut has been interviewed numerous times on major business news networks as well as on PBS and NPR, including a number of local radio and television networks. As a knowledgeable market strategist, he has been quoted by Barron’s, The Wall Street Journal, and many other publications. His weekly commentary also appeared on the Advisor Perspectives website obtained from his firm Saut Strategy LLC.
In May 2019, he became affiliated with Capital Wealth Planning as a market strategist and advisory board member. In that position, he meets with clients, manages money, and writes a weekly market commentary aimed at financial advisors and other firm clients.
STOCKS & COMMODITIES Contributing Writer and ETF columnist Leslie N. Masonson interviewed Jeffrey Saut via phone on January 17, 2020 to discuss his long investment career, his accurate market calls based on his research, and his market views."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17319.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-32-36-62-a-conversation-with-jeffrey-saut-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-32-36-62-a-conversation-with-jeffrey-saut-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov383alqa,d,"{""minimum-quantity"":""1"",""path"":""ch4a2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:04 (37): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
TRADING THE NEW MICRO EMINIS
What would you recommend for someone getting started with a smaller account?
Don’t do what I did!
I remember it like it was yesterday, even though it was nearly 30 years ago. I opened a futures account with $5,000, which at the time was basically my life savings ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17322.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-37-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-37-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38343go,d,"{""minimum-quantity"":""1"",""path"":""ch4a2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:04 (38–41, 43): Gold’s Super Cycle by Gary S. Wagner and Joseph M. Wagner II"",""caption-linebreaks"":""Gold’s Super Cycle by Gary S. Wagner and Joseph M. Wagner II
Where is gold in relation to its historic highs and lows, and where is it headed in the years to come? Here is a look at the gold cycle with projected outlooks for gold based on Elliott wave and Fibonacci analysis.
In 2010 I began a service that focused solely on the precious metals. It is now in its ninth year. At that time, gold had been trading at a new record high of $1,250 and would run to its all-time record high just above $1,900 over the next year and a half ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17325.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-38-41-43-gold-s-super-cycle-by-gary-s-wagner-and-joseph-m-wagner-ii-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-38-41-43-gold-s-super-cycle-by-gary-s-wagner-and-joseph-m-wagner-ii-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov384sian,d,"{""minimum-quantity"":""1"",""path"":""ch4a2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:04 (42–43): Signals And Confirmation by Stella Osoba, CMT"",""caption-linebreaks"":""Signals And Confirmation by Stella Osoba, CMT
Many people say candlestick signals do not work. Or maybe they just didn’t know what confirmation to look for.
Trading well is all about reading charts with a cynical, cold eye. The further away we move from our emotions, the more we are able to see and assess. Many people say candlestick signals do not work. They are right—sometimes. Other times, they may be just plain wrong about that. Maybe they just don’t know what to look for ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17328.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-42-43-signals-and-confirmation-by-stella-osoba-cmt-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-42-43-signals-and-confirmation-by-stella-osoba-cmt-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov384exyo3,d,"{""minimum-quantity"":""1"",""path"":""ch4a2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:04 (44–45): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
USING OPTIONS TO PROTECT YOUR STOCK & ETF PORTFOLIO
With the stock market doing so well I am getting nervous that it might be doing “a little too well.” I would like to reduce my risk in the market but am also not comfortable with selling my stock holdings and incurring tax liability. Is there something I can do with options to help protect my portfolio?
Of course. Hedging—along with expressing a market opinion and generating income—is one of the three primary uses for options ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18870.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-44-45-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-44-45-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov384trpe,d,"{""minimum-quantity"":""1"",""path"":""ch4a2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:04 (46–47): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
THE “GRETA EFFECT”
Is the “Greta effect” reflected in the markets?
\nIs it already factoring into market behavior?
\nIf not, how will it shape investment, trends, and money flow in the future?
The “Greta effect” was coined after Greta Thunberg addressed the 2018 UN Climate Change Conference, and afterwards, strikes and protests erupted around the world ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18873.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-46-47-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-46-47-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38462tr,d,"{""minimum-quantity"":""1"",""path"":""ch4a2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:04 (48–56, 62): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Vitali Apirine’s article in this issue “On-Balance Volume Modified (OBVM).” Here, we present the April 2020 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18876.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-48-56-62-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-48-56-62-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38613le,d,"{""minimum-quantity"":""1"",""path"":""ch4a2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:04 (6, 13): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
INTERVIEW WITH MISH SCHNEIDER
Editor,
\nI am a longtime subscriber. Thank you for your interview with Michele “Mish” Schneider in the February 2020 issue. I enjoyed the interview and I always enjoy her insights on the markets. I do have a question ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-6-13-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-6-13-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-6-13-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38717cl,d,"{""minimum-quantity"":""1"",""path"":""ch4a2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:04 (7, 17): Closing Range Breakouts by Ken Calhoun"",""caption-linebreaks"":""Closing Range Breakouts by Ken Calhoun
Learn to identify a closing range break-out entry using a two-day chart.
It has been said that amateurs control the open, while professionals control the close of each trading day. While much as been published on open range breakouts, one overlooked yet critically important price level is where a stock closes on the day ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19133.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-7-17-closing-range-breakouts-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-7-17-closing-range-breakouts-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov388tuur,d,"{""minimum-quantity"":""1"",""path"":""ch4a2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:04 (8–13): Turnover & Urgency In The Futures Markets by Michael J. Monsler, PhD"",""caption-linebreaks"":""Turnover & Urgency In The Futures Markets by Michael J. Monsler, PhD
If you are long or short the market, you’ll want to gather clues to help time your exit and maximize your profits. Here, we introduce a new, dimension-less variable called “urgency” that helps quantify how pressing the need is for current shorts or longs to exit their positions.
I am involved in a long-term quest to understand the dynamics of the futures markets well enough to write equations for how supply & demand drive the large-scale oscillations of price that we see in the data. I am not interested in the minute-by-minute fluctuations we see in the markets ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19136.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-8-13-turnover-urgency-in-the-futures-markets-by-michael-j-monsler-phd-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-04-8-13-turnover-urgency-in-the-futures-markets-by-michael-j-monsler-phd-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov381alqa,d,"{""minimum-quantity"":""1"",""path"":""ch5m2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:05 (17): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
TRADING SIMULATIONS
Can you discuss the two ways to evaluate a strategy—real-money trading versus simulated trading?
I assume by the question that back-testing is not an option. This could be because the approach can’t really be backtested (possibly a strategy related to news events), or the trader is scared of backtesting and its many pitfalls (over-optimization, for example) ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19148.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-17-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-17-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov381isth,d,"{""minimum-quantity"":""1"",""path"":""ch5m2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:05 (18–23): Is There A Recession In The Cards For 2020? by Matt Blackman"",""caption-linebreaks"":""Is There A Recession In The Cards For 2020? by Matt Blackman
What is the outlook for a recession? What indicators can be watched to continually weigh the likelihoods?
As 2020 began, US stocks were showing barely a trace of slowing. Between the December 2018 lows and mid-January 2020, the S&P 500 gained more than 42% despite a turbulent year of tariff spats, impeachment clouds, and worsening economic and earnings news. Despite these and other challenges, the rally that began in March 2009 continued to climb the proverbial wall of worry ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19145.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-18-23-is-there-a-recession-in-the-cards-for-2020-by-matt-blackman-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-18-23-is-there-a-recession-in-the-cards-for-2020-by-matt-blackman-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov382coas,d,"{""minimum-quantity"":""1"",""path"":""ch5m2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:05 (24–27): Correlation As A Trend Indicator by John F. Ehlers"",""caption-linebreaks"":""Correlation As A Trend Indicator by John F. Ehlers
Here, we introduce a new indicator: the correlation trend indicator. It could help you to identify the onset of a trend. It could also help you to detect the failure of a trend thereby giving you an indication that a cyclic mode may be beginning.
While the concept is straightforward, I have not seen a description of using correlation directly as an indicator. How would this work? Imagine correlating prices with a straight line having a positive slope. If the price trend is up, the correlation is nearly +1 ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-24-65533-27-correlation-as-a-trend-indicator-by-john-f-ehlers-21.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-24-27-correlation-as-a-trend-indicator-by-john-f-ehlers-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-24-27-correlation-as-a-trend-indicator-by-john-f-ehlers-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov382coas1,d,"{""minimum-quantity"":""1"",""path"":""faarfr2012"",""ysw-page-title"":""Stocks & Commodities V. 38:05 (24–27): Correlation As A Trend Indicator by John F. Ehlers"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-21834.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-24-27-correlation-as-a-trend-indicator-by-john-f-ehlers-7.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-24-27-correlation-as-a-trend-indicator-by-john-f-ehlers-8.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov382prin,d,"{""minimum-quantity"":""1"",""path"":""ch5m2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:05 (28–31): Profitable Insights From Ratio Charts by Timothy Knight"",""caption-linebreaks"":""Profitable Insights From Ratio Charts by Timothy Knight
You can draw conclusions from the behavior of a chart from its two contributing elements. Here’s where ratio charts come in.
Suppose for a minute that you are observing a rain barrel that is half full of water. You can clearly see how high or low the water is, and there are plainly visible markings within the barrel allowing you to judge the amount of water, whether it is increasing or decreasing, and at about what rate it is doing so ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19196.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-28-31-profitable-insights-from-ratio-charts-by-timothy-knight-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-28-31-profitable-insights-from-ratio-charts-by-timothy-knight-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov383loat,d,"{""minimum-quantity"":""1"",""path"":""ch5m2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:05 (32–35): Looking At Markets With Fawad Razaqzada by Karl Montevirgen"",""caption-linebreaks"":""Interview: Looking At Markets With Fawad Razaqzada by Karl Montevirgen
Fawad Razaqzada is a market analyst and economist who has been involved in the financial markets for a decade. He has worked for several leading brokerages as a market analyst in London, UK. Specializing in forex, commodities, stock indexes, and cryptocurrencies, Razaqzada has expertise in reading price action on the charts. He uses his knowledge of economics together with fundamental analysis to forecast short-term price fluctuations.
As well as writing articles for this magazine and other publications, he also conducts live market analysis and educational webinars on various subjects, including trading psychology. His commentary is often quoted in the financial press including Reuters and MarketWatch.
He has been trading his personal account for many years. He posts regular market updates on Twitter. You can follow him on Twitter at @Trader_F_R.\nS&C Contributing Writer Karl Montevirgen conducted this interview with Fawad Razaqzada via email in January 2020 ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19193.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-32-35-looking-at-markets-with-fawad-razaqzada-by-karl-montevirgen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-32-35-looking-at-markets-with-fawad-razaqzada-by-karl-montevirgen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38344va,d,"{""minimum-quantity"":""1"",""path"":""ch5m2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:05 (36–37, 44): Variations On The Gold Momentum Strategy by Massoud Metghalchi, PhD"",""caption-linebreaks"":""Variations On The Gold Momentum Strategy by Massoud Metghalchi, PhD
We saw good results from a simple momentum strategy where the investor switches between investing in the S&P 500 and a gold ETF. Could that strategy be improved upon?
In the December 2019 issue of STOCK & COMMODITIES, an article by Robert Tang proposed a yearly based gold momentum strategy as follows: If the S&P 500 performed better than gold in the current year, then in the next year, invest in the S&P 500; but if gold performed better, then the next year, invest in gold ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19187.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-36-37-44-variations-on-the-gold-momentum-strategy-by-massoud-metghalchi-phd-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-36-37-44-variations-on-the-gold-momentum-strategy-by-massoud-metghalchi-phd-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov383reen,d,"{""minimum-quantity"":""1"",""path"":""ch5m2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:05 (38–44): Renewable Energy ETFs: Saving the World by Leslie N. Masonson"",""caption-linebreaks"":""Renewable Energy ETFs: Saving the World by Leslie N. Masonson
Renewable energy ETFs have become a popular investment category in the past year with returns greater than those of the S&P 500 index. And during the coronavirus market plunge, these ETFs held up well. Investors have a choice of very concentrated ETFs or more diversified ones.
Over the last decade there has been a concentrated effort to develop alternative clean energy sources away from the high in carbon fossil fuels such as coal, petroleum, and natural gas so that the planet can survive ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19184.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-38-44-renewable-energy-etfs-saving-the-world-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-38-44-renewable-energy-etfs-saving-the-world-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38450fu,d,"{""minimum-quantity"":""1"",""path"":""ch5m2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:05 (45, 50): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
HIGH VOLATILITY
Is it true the most money can be made in highly volatile markets?
Yes, this is a true statement. However, while trading is (roughly) a zero-sum proposition because there is a winner for every loser and vice versa, I believe unusual volatility is when the masses lose the most money, not the other way around ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17340.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-45-50-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-45-50-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov384prre1,d,"{""minimum-quantity"":""1"",""path"":""ch5m2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:05 (46–50): Product Review: ETFAction.com by Leslie N. Masonson"",""caption-linebreaks"":""Product Review: ETFAction.com by Leslie N. Masonson
ETFACTION.COM
\nDenver, CO
\nPhone: 608 712-1547
\nEmail: team@etfaction.com
\nWebsite: www.ETFAction.com
\nProduct: Comprehensive ETF research platform to help advisors build customized diversified ETF client portfolios
\nData updates: Mostly end-of-day, but with real-time prices for certain applications
\nRequirements: Works with all Internet browsers
\nPrice: Special $1,500/year first year (25% off) billed annually for single licenses; $1,000/license first year (50% off) for team packages, billed annually; then option to buy or remain on basic (free) plan.
The first US ETF was the SPDR S&P 500 ETF born on January 22, 1993. No one could have imagined that ETFs would have become such a popular investment vehicle compared to mutual funds, in so short a time ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17337.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-46-50-product-review-etfaction-com-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-46-50-product-review-etfaction-com-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38562tr,d,"{""minimum-quantity"":""1"",""path"":""ch5m2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:05 (51, 62): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
THE CORONAVIRUS ECONOMY: “GOVERNMENT-SANCTIONED DEPRESSION”
This is not a movie. But if I were to write a script for a potential ending to this coronavirus nightmare, I would propose this scenario: A vaccine is created, mandatory vaccinations are implemented globally ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17334.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-51-62-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-51-62-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov385trti1,d,"{""minimum-quantity"":""1"",""path"":""ch5m2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:05 (52–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is John Ehlers’ article in this issue “Correlation As A Trend Indicator.” Here, we present the May 2020 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17331.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-52-56-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-52-56-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov386leto1,d,"{""minimum-quantity"":""1"",""path"":""ch5m2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:05 (6): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
FIBONACCI ANALYSIS
Editor,
\nI am not a big Fib fan, but Mark Rivest’s article in the 2020 Bonus Issue of Technical Analysis of STOCKS & COMMODITIES (“Fibonacci For Fun And Profit—It’s True!”) made me think I might be missing something ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-6-letters-to-s-c-by-technical-analysis-inc-25.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-6-letters-to-s-c-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-6-letters-to-s-c-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov386exyo,d,"{""minimum-quantity"":""1"",""path"":""ch5m2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:05 (60–61): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
MITIGATING VOLATILITY RISK WITH OPTIONS
I typically just buy calls and puts—that is, long premium. The stock market fell hard and I think it will bounce, but implied option volatility has gone through the roof. Is it a good idea to buy calls in this situation? Or are there alternatives?
There are a few key considerations to account for in this situation. First, take a close look at Figure 1, which displays price action for ticker SPY along with the implied volatility for 7- to 30-day options ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-60-65533-61-explore-your-options-by-jay-kaeppel-21.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-60-8211-61-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-60-8211-61-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov387scin,d,"{""minimum-quantity"":""1"",""path"":""ch5m2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:05 (7): Scaling Into Swing Trades by Ken Calhoun"",""caption-linebreaks"":""Scaling Into Swing Trades by Ken Calhoun
Here’s a favorite decision-support strategy for swing trading that uses a unique visual pattern.
You may have often struggled with deciding when to add to a winning trade, or when to stop out of a losing position. A favorite Wall Street strategy is to focus on “out” positions, in which price is above the previous day’s high or below the previous day’s low ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17367.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-7-scaling-into-swing-trades-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-7-scaling-into-swing-trades-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38835fi,d,"{""minimum-quantity"":""1"",""path"":""ch5m2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:05 (8–16, 35): Fibonacci Fitting by Kevin D. Morgan"",""caption-linebreaks"":""Fibonacci Fitting by Kevin D. Morgan
Using a technique called “Fibonacci fitting,” the Fibonacci structure of a price swing in progress can be analyzed for information about likely price action of the continuing price swing. Read on to find out how.
The tendency of Fibonacci ratios to operate as pivot levels for a price retracement swing in progress is foundational for an entire methodology of trading, as is the tendency of price swings to complete at Fibonacci ratio extensions of prior price swings ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19151.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-8-16-35-fibonacci-fitting-by-kevin-d-morgan-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-05-8-16-35-fibonacci-fitting-by-kevin-d-morgan-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov381dian,d,"{""minimum-quantity"":""1"",""path"":""ch6j2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:06 (16–20): Dividends And The Risk Of Early Option Assignment by James Leahy"",""caption-linebreaks"":""Dividends And The Risk Of Early Option Assignment by James Leahy
Selling calls on stocks always presents a risk of early assignment when the calls are in-the-money. Stocks that have dividends present an even greater assignment risk when they are in-the-money and when the extrinsic value is low. Here is what you should know.
Selling call options on stocks you own (called covered calls) is a bullish strategy for reducing the cost basis of the stock. This is accomplished by selling out-of-the-money calls that expire weeks or months in the future, collecting the option premium and then rolling the calls out to farther months, and possibly a different strike when the current options get near expiration ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18888.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-06-16-20-dividends-and-the-risk-of-early-option-assignment-by-james-leahy-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-06-16-20-dividends-and-the-risk-of-early-option-assignment-by-james-leahy-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38229fu,d,"{""minimum-quantity"":""1"",""path"":""ch6j2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:06 (21, 29): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
WHAT LESSONS CAN WE LEARN FROM THE CHAOS OF MARCH 2020?
The events that unfolded both inside and outside of the stock and commodity trading arena were devastating on many fronts. No one could have possibly predicted the carnage that the COVID-19 virus would eventually cause ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18891.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-06-21-29-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-06-21-29-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov382prsh,d,"{""minimum-quantity"":""1"",""path"":""ch6j2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:06 (22–25): Price Shocks: Anticipation Is Everything by Perry J. Kaufman"",""caption-linebreaks"":""Price Shocks: Anticipation Is Everything by Perry J. Kaufman
A major selloff in the market can happen suddenly or build slowly. When the market is dropping, how can the trader decide when it’s time to move from risk-on to risk-off? Here’s a method you can use based on volatility of returns and a few simple rules.
Price shocks are ugly. By definition, they produce huge losses for most investors because they move in the opposite direction from the positions held by nearly everyone. When price shocks cause upward moves in the stock market, no one seems to complain about them. They don’t threaten to wipe out your investment ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18882.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-06-22-25-price-shocks-anticipation-is-everything-by-perry-j-kaufman-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-06-22-25-price-shocks-anticipation-is-everything-by-perry-j-kaufman-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov382nosl,d,"{""minimum-quantity"":""1"",""path"":""ch6j2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:06 (26–29): Normalized Slope As A Measure Of Trend by Mike B. Siroky, MD"",""caption-linebreaks"":""Normalized Slope As A Measure Of Trend by Mike B. Siroky, MD
Here is a sophisticated tool you can use to not only identify trends but also to help measure their significance. Formulas and functions that you can use in Excel to calculate it are provided for easy implementation.
Linear regression is probably the most widely used technique in statistics, yet it has not been widely applied in technical analysis to determine trend. Most platforms, such as www.stockcharts.com, provide the capability of generating a Pearson correlation coefficient and the slope of a regression line ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18885.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-06-26-29-normalized-slope-as-a-measure-of-trend-by-mike-b-siroky-md-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-06-26-29-normalized-slope-as-a-measure-of-trend-by-mike-b-siroky-md-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38356ke,d,"{""minimum-quantity"":""1"",""path"":""ch6j2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:06 (30–38, 56): The Keys To Success With Mark Minervini by Leslie N. Masonson"",""caption-linebreaks"":""Interview: The Keys To Success With Mark Minervini by Leslie N. Masonson
Mark Minervini is a top stock trader who now also shares his trading expertise with others. He has more than 37 years of market experience as an independent trader and more recently has also been a market educator and performance coach for traders. He is the author of Trade Like A Stock Market Wizard; Think And Trade Like A Champion; and Mindset Secrets For Winning.
Minervini was featured in Momentum Masters: A Roundtable Interview With Super Traders, as well as in Jack Schwager’s Stock Market Wizards: Interviews With America’s Top Stock Traders. In that book, Schwager wrote, “Most traders and money managers would be delighted to have Minervini’s worst year—a 128% gain—as their best.”
In 1997, Minervini put up $250,000 to enter the US Investing Championship. Trading against stock, futures, and options traders, he came in first to win the real-money investment derby with a 155% annual return, almost double the performance of the second-place holder ... "",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18912.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-06-30-38-56-the-keys-to-success-with-mark-minervini-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-06-30-38-56-the-keys-to-success-with-mark-minervini-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov384fike,d,"{""minimum-quantity"":""1"",""path"":""ch6j2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:06 (40–44): Five Key Differences Between Bull And Bear Rallies by Matt Blackman"",""caption-linebreaks"":""Five Key Differences Between Bull And Bear Rallies by Matt Blackman
Some traders treat all rallies equally. Find out why that can be a very costly mistake.
Up until March 2020, North American stock markets seemed locked in the long-term bull market that began in March 2009. Granted, stocks had gotten stuck in a trading range in 2018, but they then soared to new all-time highs as 2020 began to unfold. Market sentiment remained strong, as did pundit calls for the bull to continue ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18915.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-06-40-44-five-key-differences-between-bull-and-bear-rallies-by-matt-blackman-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-06-40-44-five-key-differences-between-bull-and-bear-rallies-by-matt-blackman-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38462ex,d,"{""minimum-quantity"":""1"",""path"":""ch6j2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:06 (45, 62): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
OPTION STRATEGIES FOR PROFITING FROM EXTREME IMPLIED VOLATILITY
The recent coronavirus panic in the market appeared to push implied option volatility to extreme levels. I’d like to sell premium to take advantage of this, but given the extreme uncertainty regarding the future direction of the market—let alone individual stocks—is there a way to play that doesn’t involve extreme risk?
As always, there is risk in any option trade that you might consider making. The real questions are, “what are your reasonable expectations,” and “what type of risk are you willing to accept?” ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18906.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-06-45-62-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-06-45-62-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov384dofi,d,"{""minimum-quantity"":""1"",""path"":""ch6j2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:06 (46–48): Do Fibonacci Retraces Work? by Thomas Bulkowski"",""caption-linebreaks"":""Do Fibonacci Retraces Work? by Thomas Bulkowski
Traders often plot Fibonacci levels on their charts and some consider these levels important to trade around. Does this approach work, or is it just wishful thinking?
Does a Fibonacci retrace work in the stock market? In the lab, this article will conclude the answer is no. In the real world, the answer may be yes. It could be like trying to prove that aspirin prevents heart attacks: One study may conclude it does, another may say it does not, and a third is inconclusive with the authors arguing that the first two studies are flawed.
Let’s take a closer look at the Fibonacci retrace as it applies to trading the stock market ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18909.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-06-46-48-do-fibonacci-retraces-work-by-thomas-bulkowski-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-06-46-48-do-fibonacci-retraces-work-by-thomas-bulkowski-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov384trti2,d,"{""minimum-quantity"":""1"",""path"":""ch6j2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:06 (49–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is John Ehlers’ article in this issue “Correlation As A Cycle Indicator.” Here, we present the June 2020 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17071.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-06-49-56-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-06-49-56-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov386alqa1,d,"{""minimum-quantity"":""1"",""path"":""ch6j2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:06 (6): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
TRADING IN UNCERTAIN TIMES
Should I be trading right now, with all the COVID-19 volatility and uncertainty?
The funny thing about trading is that volatility is needed for profitable trading. No volatility means no price changes, and therefore no opportunity to profit ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17095.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-06-6-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-06-6-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov386trpe3,d,"{""minimum-quantity"":""1"",""path"":""ch6j2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:06 (60–62): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
THE AMAZING WORLD OF BASKET TRADING!
Limited only by research, imagination, courage, and capital constraints, traders can design baskets for all market conditions, events, and opportunities. Probabilistic reasoning models and scenario running enables the trader to take advantage of any macro forces that are evident now as well as to ready themselves for those events that are yet to come ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17077.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-06-60-62-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-06-60-62-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38729ha,d,"{""minimum-quantity"":""1"",""path"":""ch6j2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:06 (7, 29): Hammer And MACD Pivots by Ken Calhoun"",""caption-linebreaks"":""Hammer And MACD Pivots by Ken Calhoun
In volatile markets, whipsaws are common. Using these two technical signals to confirm your entries can provide better support for your trading decisions.
In this month’s column, we will look at combining classic hammer with MACD crossover signals to provide clear, understandable entry patterns that you may find helpful.
When trading volatile markets, it is also helpful to combine technical entry signals to provide stronger entries than classic single signals ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17089.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-06-7-29-hammer-and-macd-pivots-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-06-7-29-hammer-and-macd-pivots-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov388coas1,d,"{""minimum-quantity"":""1"",""path"":""faarfr2012"",""ysw-page-title"":""Stocks & Commodities V. 38:06 (8–15): Correlation As A Cycle Indicator by John F. Ehlers"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-21835.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-06-8-15-correlation-as-a-cycle-indicator-by-john-f-ehlers-7.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-06-8-15-correlation-as-a-cycle-indicator-by-john-f-ehlers-8.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov388coas,d,"{""minimum-quantity"":""1"",""path"":""ch6j2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:06 (8–15): Correlation As A Cycle Indicator by John F. Ehlers"",""caption-linebreaks"":""Correlation As A Cycle Indicator by John F. Ehlers
As traders know, markets have trend modes and cyclic (mean-reversion) modes. Last month, we introduced a new indicator—the trend correlation indicator—for trend trading, based on a straightforward yet novel concept. This month, we follow up with a second new indicator to help you profit in cycling markets.
Cycle indicators can give very fast and timely signals. Here, I will present a new cycle indicator to help you get in early on trades, as well as a variable to help you base trade entries on prevailing market conditions ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17092.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-06-8-15-correlation-as-a-cycle-indicator-by-john-f-ehlers-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-06-8-15-correlation-as-a-cycle-indicator-by-john-f-ehlers-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov381swru,d,"{""minimum-quantity"":""1"",""path"":""ch7j2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:07 (14–17): The Swing Rule by Thomas Bulkowski"",""caption-linebreaks"":""he Swing Rule by Thomas Bulkowski
Here’s a technique that looks for a particular pattern of price swings to project a price target as the exit.
If you haven’t heard of the “swing rule,” you’re not alone. I found the technique described in the 1988 book Stan Weinstein’s Secrets For Profiting In Bull And Bear Markets. I’ll describe what the swing rule is, test how it works, see how performance has changed over the decades, and optimize the rule ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19636.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-07-14-17-the-swing-rule-by-thomas-bulkowski-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-07-14-17-the-swing-rule-by-thomas-bulkowski-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38123fu,d,"{""minimum-quantity"":""1"",""path"":""ch7j2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:07 (18, 23): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
A STRATEGY FOR VOLATILE FUTURES: THE OPTION BUTTERFLY
How can retail traders get into markets with high volatility and margin requirements?
In the aftermath of the May crude oil futures contract blow-up in April 2020 which temporarily drove prices into negative territory to the tune of $40.00 per barrel, retail traders were left with few “options” for oil speculation ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19633.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-07-18-23-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-07-18-23-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov382trin,d,"{""minimum-quantity"":""1"",""path"":""ch7j2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:07 (20–23): Truncated Indicators by John F. Ehlers"",""caption-linebreaks"":""Truncated Indicators by John F. Ehlers
An ideal cycle indicator is one that will help you locate and track cycles in price data to better anticipate price. Here is a straightforward technique for improving how accurately a cycle indicator reflects price—including the handling of extreme price events such as the market experienced recently. Coding is provided to help you implement the technique.
The performance of some, but not all, indicators can be greatly enhanced by truncation. By “truncation,” I am referring to limiting the data range automatically in ways that allow the indicator to more accurately reflect price.
But which indicators can be enhanced by it, and why? In this article, I’ll tell you the type of indicator that can benefit from this mathematical technique, and I’ll show you a way to perform the truncation ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19642.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-07-20-23-truncated-indicators-by-john-f-ehlers-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-07-20-23-truncated-indicators-by-john-f-ehlers-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38245us,d,"{""minimum-quantity"":""1"",""path"":""ch7j2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:07 (24–28, 45): Using Scaling Laws For FX Trading Models: A Two-Dimensional Extension by Richard Poster, PhD"",""caption-linebreaks"":""Using Scaling Laws For FX Trading Models: A Two-Dimensional Extension by Richard Poster, PhD
Previously, we looked at how scaling laws can be used to predict the behavior of forex (FX) data. In this follow-up article, we look at how scaling laws can be extended into two dimensions: volatility and price change thresholds. Now, using two-dimensional scaling laws, an even more accurate prediction of expected returns can be made. Find out how.
The jagged coastline of Norway, an old oak tree, and the EURUSD time series have at least one thing in common—they all have fractal geometries. This means they have the same form or structure when viewed at different scales ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19639.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-07-24-28-45-using-scaling-laws-for-fx-trading-models-a-two-dimensional-extension-by-richard-poster-phd-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-07-24-28-45-using-scaling-laws-for-fx-trading-models-a-two-dimensional-extension-by-richard-poster-phd-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38362in,d,"{""minimum-quantity"":""1"",""path"":""ch7j2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:07 (30–35, 62): Interview: A Conversation With Jay Kaeppel by Leslie N. Masonson"",""caption-linebreaks"":""Interview: A Conversation With Jay Kaeppel by Leslie N. Masonson
Jay Kaeppel has over 30 years of varied experience in options, equity, and futures trading as a research analyst, trader and portfolio manager. Professionally, he began his career as head trader at Essex Trading Co. managing futures accounts for eight years, and as a programmer, he co-developed Option Pro trading software, which was the winner of our Readers’ Choice Award for six consecutive years in this magazine in the category of Options Trading Systems. He then became a trading strategist and trading instructor for Optionetics, writing a weekly column for nine years called “Kaeppel’s Corner.”
For the past five years he has been a vice president and director of research at Alpha Investment Management, Inc. In addition, he offers regular market commentary on his website JayOnTheMarkets.com.
He is a prolific writer, as evidenced by his authoring four books on trading: Seasonal Stock Market Trends (Wiley), The Four Biggest Mistakes In Option Trading (Wiley), The Four Biggest Mistakes In Futures Trading (Wiley), and The Option Trader’s Guide To Probability, Volatility, And Timing (Wiley).\nKaeppel currently writes the monthly Explore Your Options column for this magazine, as well as contributing many articles on a variety of subjects since 1999. Kaeppel can be reached at jaykaeppel@gmail.com.
STOCKS & COMMODITIES Contributing Writer and ETF columnist Leslie N. Masonson interviewed Kaeppel via email in early March 2020."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-07-30-35-62-interview-a-conversation-with-jay-kaeppel-by-leslie-n-masonson-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-07-30-35-62-interview-a-conversation-with-jay-kaeppel-by-leslie-n-masonson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-07-30-35-62-interview-a-conversation-with-jay-kaeppel-by-leslie-n-masonson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov383dubr,d,"{""minimum-quantity"":""1"",""path"":""ch7j2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:07 (36): Dual-Candle Breakouts by Ken Calhoun"",""caption-linebreaks"":""Dual-Candle Breakouts by Ken Calhoun
Simply buying into an uptrend in isolation often leads to false breakouts. Instead, you may find more success if you scan for dual-candle breakout patterns. Here’s how to find them.
When it comes to correctly entering uptrending charts, your goal should always be to find the strongest price action breakouts ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19657.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-07-36-dual-candle-breakouts-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-07-36-dual-candle-breakouts-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov383alqa1,d,"{""minimum-quantity"":""1"",""path"":""ch7j2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:07 (37): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
DATA BACKUP AND MANAGEMENT
I just tried to open my trading platform today, and all my indicators and strategies are gone. HELP!
There is nothing worse than opening your trading platform on Sunday night before the market open and seeing…nothing ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19663.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-07-37-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-07-37-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38345ch,d,"{""minimum-quantity"":""1"",""path"":""ch7j2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:07 (38–39, 45): The Chase Of Volatility by Robert van Eyden, PhD"",""caption-linebreaks"":""The Chase Of Volatility by Robert van Eyden, PhD
The fear of missing out (FOMO) can create a psychological challenge for traders. Here are some steps you can take to help prevent emotions from entering into your trading decisions and wreaking havoc on your trading plan.
Behavioral finance has grown over the past twenty years—and the conclusion is that investors rarely behave rationally. Extending the principles of behavioral finance into the trading realm can be useful, especially when it relates to trading psychology and the behavior of traders ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19660.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-07-38-39-45-the-chase-of-volatility-by-robert-van-eyden-phd-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-07-38-39-45-the-chase-of-volatility-by-robert-van-eyden-phd-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov384utet,d,"{""minimum-quantity"":""1"",""path"":""ch7j2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:07 (40–44): Utility ETFs: Power Up With Dividend Payers? by Leslie N. Masonson"",""caption-linebreaks"":""Utility ETFs: Power Up With Dividend Payers? by Leslie N. Masonson
Investing in our infrastructure power is critical to our daily lives. Without adequate energy, our country would grind to a halt. Conservative investors may want to invest a portion of their funds in this defensive sector for capital appreciation and dividends. Since 2007, they have provided an annualized return of 8.52% compared to 8.81% for the S&P 500 with less volatility and drawdown.
Utility companies are the backbone of the power industry in the United States. And some of these companies have had a rough going with natural disasters, man-made conflagrations, and competing technologies. Nevertheless, this industry is an essential component of our well-being and the nation’s future growth ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17945.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-07-40-44-utility-etfs-power-up-with-dividend-payers-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-07-40-44-utility-etfs-power-up-with-dividend-payers-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov384exyo4,d,"{""minimum-quantity"":""1"",""path"":""ch7j2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:07 (46–47): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
HEDGING INDIVIDUAL STOCK POSITIONS
I have certain stock holdings that I would prefer not to sell—either for tax reasons or simply because I think they will do well over time. However, I am extremely nervous about the prospects for the overall stock market in the months ahead. I'e never had much success with trying to hedge an overall portfolio. So, is there a way to hedge the positions I am most concerned about on a position-by-position basis?
Of course. One approach is simply to buy a put option ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-07-46-65533-47-explore-your-options-by-jay-kaeppel-21.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-07-46-8211-47-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-07-46-8211-47-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov384trti3,d,"{""minimum-quantity"":""1"",""path"":""ch7j2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:07 (48–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is John Ehlers’ article in this issue “Truncated Indicators.” Here, we present the July 2020 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17951.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-07-48-56-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-07-48-56-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov386trpe4,d,"{""minimum-quantity"":""1"",""path"":""ch7j2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:07 (60–62): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
TRADING! A PERFECT STAY-AT-HOME JOB?
Whether you are just starting to look into trading or are already an active career trader, have you given enough thought to what contributes to the viability of trading? Here, I’ll offer some reflections on what I believe it takes to be successful at trading ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17948.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-07-60-62-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-07-60-62-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38656le,d,"{""minimum-quantity"":""1"",""path"":""ch7j2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:07 (6–7, 56): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
CORRELATION AS A TREND INDICATOR
Editor,
\nJohn Ehlers’ May 2020 article, “Correlation As A Trend Indicator,” was straightforward and easy to follow. However, when I went to look up more details about the Spearman correlation formula, I found that when one of the variables is linear, like in this case, it is really the Pearson correlation, and this is the formula used for the code given in the article ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17975.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-07-6-7-56-letters-to-s-c-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-07-6-7-56-letters-to-s-c-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov388poof,d,"{""minimum-quantity"":""1"",""path"":""ch7j2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:07 (8–13): The Power Of Growth Stocks by Andreas A. Aigner, PhD, & Walter Schrabmair"",""caption-linebreaks"":""The Power Of Growth Stocks by Andreas A. Aigner, PhD, & Walter Schrabmair
How can you measure the strength of a growth stock? Can this be quantified? Here’s a way to help measure it using concepts from digital signal processing.
When we think of growth stocks, we think of stocks that consistently trend in price and that outperform the market average. They usually pay no or next to no dividend, as they save up earnings to expand their business ventures through development or aggressively buying out other businesses to consolidate or vertically integrate. By investing in this type of stock, you expect to profit from above-average market returns through price appreciation only ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17972.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-07-8-13-the-power-of-growth-stocks-by-andreas-a-aigner-phd-walter-schrabmair-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-07-8-13-the-power-of-growth-stocks-by-andreas-a-aigner-phd-walter-schrabmair-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov381enbr,d,"{""minimum-quantity"":""1"",""path"":""ch8a2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:08 (15): End-of-Day Breakouts by Ken Calhoun"",""caption-linebreaks"":""End-of-Day Breakouts by Ken Calhoun
The open is where the excitement is. But the close may be a smarter place to be.
It has been said that amateurs control the open and professionals control the close. In volatile markets, you can often find excellent trading opportunities during the last hour or so ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17645.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-08-15-end-of-day-breakouts-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-08-15-end-of-day-breakouts-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov381copr,d,"{""minimum-quantity"":""1"",""path"":""ch8a2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:08 (16–20): The Compare Price Momentum Oscillator (CPMO), Part 1 by Vitali Apirine"",""caption-linebreaks"":""The Compare Price Momentum Oscillator (CPMO), Part 1 by Vitali Apirine
Here is a way you can compare at a glance the momentum of two different market indexes or securities in the same chart. It could also be used to help generate trading signals. In this first part of a three-part series, we’ll look at comparing index momentums.
The compare price momentum oscillator (CPMO) is a new approach to using the DecisionPoint price momentum oscillator (PMO), which was developed by Carl Swenlin. The DecisionPoint PMO is an oscillator based on a rate of change (ROC) calculation and can be used as a relative strength tool ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19588.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-08-16-20-the-compare-price-momentum-oscillator-cpmo-part-1-by-vitali-apirine-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-08-16-20-the-compare-price-momentum-oscillator-cpmo-part-1-by-vitali-apirine-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38262co,d,"{""minimum-quantity"":""1"",""path"":""ch8a2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:08 (22–26, 62): Coming Late: Buying Double Bottoms During Bearish Price Action by Pawel Kosinski"",""caption-linebreaks"":""Coming Late: Buying Double Bottoms During Bearish Price Action by Pawel Kosinski
This pattern can present a good buying opportunity for stocks. Here’s what to look for.
\""Should I buy now? How about now?\"" The double bottom pattern can present a good time to buy a stock. I’ve written about this pattern before in this magazine (see “Further reading” at end). I wanted to take advantage of the recent bearish action in many stocks to put this pattern to the test ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-08-22-26-62-coming-late-buying-double-bottoms-during-bearish-price-action-by-pawel-kosinski-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-08-22-26-62-coming-late-buying-double-bottoms-during-bearish-price-action-by-pawel-kosinski-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-08-22-26-62-coming-late-buying-double-bottoms-during-bearish-price-action-by-pawel-kosinski-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38262al,d,"{""minimum-quantity"":""1"",""path"":""ch8a2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:08 (27, 62): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
CAN ALGO TRADING ELIMINATE EMOTIONS IN TRADING?
My discretionary trading is being destroyed by my emotions. Should I try algo trading to eliminate emotional interference?
It is a great sign that you realize your emotions are creating havoc with your trading. The first sign in curing a problem, it is said, is to first realize there is a problem. And you have conquered that step ...
\n[Kevin is also the subject of this month's interview]"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-08-27-62-algo-q-a-by-kevin-j-davey-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-08-27-62-algo-q-a-by-kevin-j-davey-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-08-27-62-algo-q-a-by-kevin-j-davey-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov382bico,d,"{""minimum-quantity"":""1"",""path"":""ch8a2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:08 (28–33): Bitcoin Correlations by Markos Katsanos"",""caption-linebreaks"":""Bitcoin Correlations by Markos Katsanos
Is there a relationship between bitcoin and other commodities, currencies, or stock indexes? Is it possible to forecast the bitcoin price using intermarket strategies? Read on to find out.
Bitcoin has been hailed by some as the holy grail of uncorrelated diversification assets or as an alternative to gold. Most of them, however, based their opinions on a limited number of observations ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19429.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-08-28-33-bitcoin-correlations-by-markos-katsanos-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-08-28-33-bitcoin-correlations-by-markos-katsanos-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov383altr,d,"{""minimum-quantity"":""1"",""path"":""ch8a2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:08 (34–39): Algorithmic Trading With Kevin Davey by Karl Montevirgen"",""caption-linebreaks"":""Interview: Algorithmic Trading With Kevin Davey by Karl Montevirgen
A professional trader and systems developer, Kevin J. Davey has been developing, analyzing, testing, and creating trading strategies for over 25 years in every futures market from the emini S&P to crude oil to corn to cocoa. He is the author of Building Winning Algorithmic Trading Systems: A Trader’s Journey From Data Mining To Monte Carlo Simulation To Live Trading, Introduction To Algo Trading, and several others. His background is in aerospace engineering with an MBA.
During the years 2005–2007 he came in first place once and second place twice in the World Cup Championship of Futures Trading.
In addition to trading full-time, Davey now teaches and consults via his Strat-egy Factory online workshops (https://kjtradingsystems.com). Clients include both private individuals and trading professionals.
Davey shares his insights and expertise with S&C readers monthly in our “Algo Q&A” column, which focuses on algorithmic and automated rules-based trading and strategy development. Readers with questions about trading strategy development may email Davey through his website for possible topics in future columns. This column won a Readers’ Choice Award this year in our annual Readers’ Choice poll, and his company, KJ Trading Systems, also won a Readers’ Choice Award in the category of “schools & training.” Because of this, we wanted to catch up with him again since our last interview with him in 2015.
S&C Contributing Writer Karl Montevirgen spoke with Davey by phone on February 20, 2020 (with some later email follow-ups) to find out about what trading strategy development looks like for him these days and how he continues to refine his strategy development process."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19615.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-08-34-39-algorithmic-trading-with-kevin-davey-by-karl-montevirgen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-08-34-39-algorithmic-trading-with-kevin-davey-by-karl-montevirgen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38445ex,d,"{""minimum-quantity"":""1"",""path"":""ch8a2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:08 (40–41, 45): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
USING PROTECTIVE PUTS
I was told that buying a put option is a good way to limit the risk on my stock positions. But I know that I have to pay an option premium to buy a protective put. Is this a good idea? And what are the primary considerations?
The strategy you are asking about is commonly referred to as a married put ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17639.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-08-40-41-45-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-08-40-41-45-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov384vowi,d,"{""minimum-quantity"":""1"",""path"":""ch8a2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:08 (42–45): Voting With Multiple Timeframes by F. Arden Thomas"",""caption-linebreaks"":""Voting With Multiple Timeframes by F. Arden Thomas
Sometimes, traditional indicators can be used with new techniques. This technique uses a traditional oscillator with multiple timeframes and a voting process to create a new indicator that displays values for buying and selling pressure.
Using multiple timeframes can be very helpful in uncovering good opportunities for both buying and selling. If an indicator is applied in multiple timeframes and if all the timeframes are suggesting a condition of oversold or overbought, it’s a less frequent and more valuable indication of that condition ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17897.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-08-42-45-voting-with-multiple-timeframes-by-f-arden-thomas-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-08-42-45-voting-with-multiple-timeframes-by-f-arden-thomas-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov384trti4,d,"{""minimum-quantity"":""1"",""path"":""ch8a2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:08 (46–55): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Vitali Apirine’s article in this issue “The Compare Price Momentum Oscillator (CPMO).” Here, we present the August 2020 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17642.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-08-46-55-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-08-46-55-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38620le,d,"{""minimum-quantity"":""1"",""path"":""ch8a2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:08 (6, 20): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
USING YOUR OWN MARKET DATA FOR EXCEL WORKSHEETS
Editor,
\nI am a big fan of [Traders' Tips contributor] Ron McAllister’s work and I highly appreciate that he makes Excel work-sheets available to the trader community by way of this magazine ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17894.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-08-6-20-letters-to-s-c-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-08-6-20-letters-to-s-c-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov386trpe5,d,"{""minimum-quantity"":""1"",""path"":""ch8a2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:08 (60–62): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
VOLATILITY=OPPORTUNITY
Volatility! You missed out? Don’t worry; it will come again…
First, let us review.
On Friday, March 27, 2020, President Donald Trump signed the CARES Act, the largest stimulus bill in US history in response to the global health crisis. $6.2 trillion in total—$4 trillion in Federal Reserve lending power and 2.2 trillion in direct assistance ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-08-60-62-trading-perspectives-by-rob-friesen-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-08-60-62-trading-perspectives-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-08-60-62-trading-perspectives-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38714fu,d,"{""minimum-quantity"":""1"",""path"":""ch8a2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:08 (7, 14): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
THE SMALL EXCHANGE—WHAT IS IT?
What is “The Small Exchange” and why should I consider trading its products?
According to The Small Exchange’s website (https://www.thesmallexchange. com), it offers the best of the stock and futures worlds in a single product ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17636.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-08-7-14-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-08-7-14-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov388newg,d,"{""minimum-quantity"":""1"",""path"":""ch8a2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:08 (8–14): A New Gauge For Sentiment And Breadth Data by Marco Alves"",""caption-linebreaks"":""A New Gauge For Sentiment And Breadth Data by Marco Alves
Here is a new tool you can use to help get better readings on the market. This method is based on the relative difference of squares (RDoS). Discover its advantages.
Breadth indicators and sentiment data are useful tools for helping to assess the strength of a market. However, the standardly used tools have their drawbacks. In this article, I’ll take a look at some traditional assessment tools and show where there is room for improvement ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17930.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-08-8-14-a-new-gauge-for-sentiment-and-breadth-data-by-marco-alves-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-08-8-14-a-new-gauge-for-sentiment-and-breadth-data-by-marco-alves-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov381higo,d,"{""minimum-quantity"":""1"",""path"":""ch9s2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:09 (17): High-Volume Golden Cross Breakouts by Ken Calhoun"",""caption-linebreaks"":""High-Volume Golden Cross Breakouts by Ken Calhoun
It often pays to wait for confirmation to avoid false breakouts. Here are two indications you can use as confirming signals.
Finding strong breakouts can be quite a challenge during volatile markets. This month, I’ll show how to combine an initial high-volume price action breakout with a classic golden cross pattern ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19651.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-09-17-high-volume-golden-cross-breakouts-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-09-17-high-volume-golden-cross-breakouts-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov381apte,d,"{""minimum-quantity"":""1"",""path"":""ch9s2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:09 (18–23): Applied Technical Analysis Part 1: The SCVolatility Band Indicator by Sylvain Vervoort"",""caption-linebreaks"":""Applied Technical Analysis Part 1: The SCVolatility Band Indicator by Sylvain Vervoort
Traders need a foundational way to approach the markets, to know what to look for and for how to make buy and sell deci-sions. Here, we begin a new article series that will step you through this process, starting with applying very basic technical analysis, using only a volatility channel on a candlestick chart. Coding is provided for the channel indicator.
Making buy and sell decisions using only a price chart? In my previous article series in this magazine (see “Further reading” at end), I demonstrated a set of techniques I apply to make manual and automatic buy and sell decisions or a combination of both. I call my approach the V-Trade system (where “V-Trade” stands for “Vervoort trading”) ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19654.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-09-18-23-applied-technical-analysis-part-1-the-scvolatility-band-indicator-by-sylvain-vervoort-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-09-18-23-applied-technical-analysis-part-1-the-scvolatility-band-indicator-by-sylvain-vervoort-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov382como,d,"{""minimum-quantity"":""1"",""path"":""ch9s2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:09 (24–29): Comparing The Momentums Of Stock Market Indexes, Part 2 by Vitali Apirine"",""caption-linebreaks"":""Comparing The Momentums Of Stock Market Indexes, Part 2 by Vitali Apirine
Last month in part 1, we looked at using an oscillator based on momentum to compare the momentums of two markets on a chart for insights into those markets. In this part, we’ll look at what centerline crossovers tell us about the state of the overall stock market when we compare the momentums of stock indexes.
Comparing the momentums of two different indexes on the same graph can be useful. Traders can look for momentum crossovers, centerline crossovers, signal line crossovers, and divergences to help generate signals ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17954.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-09-24-29-comparing-the-momentums-of-stock-market-indexes-part-2-by-vitali-apirine-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-09-24-29-comparing-the-momentums-of-stock-market-indexes-part-2-by-vitali-apirine-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38343co,d,"{""minimum-quantity"":""1"",""path"":""ch9s2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:09 (30–36, 43): A Conversation With Jake Bernstein by Leslie N. Masonson"",""caption-linebreaks"":""Interview: A Conversation With Jake Bernstein by Leslie N. Masonson
Jake Bernstein, president of Network Press Inc., is an internationally known commodities and futures analyst, prolific author, decades’ long trader, and researcher who has developed numerous futures trading strategies and indicators for professional and retail traders. Bernstein is chief market strategist and publisher of the Jake Bernstein’s Weekly Capital Markets Report, published continuously since 1972 ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-09-30-36-43-a-conversation-with-jake-bernstein-by-leslie-n-masonson-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-09-30-36-43-a-conversation-with-jake-bernstein-by-leslie-n-masonson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-09-30-36-43-a-conversation-with-jake-bernstein-by-leslie-n-masonson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38343fu,d,"{""minimum-quantity"":""1"",""path"":""ch9s2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:09 (37, 43): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
SHOULD FUTURES TRADERS LEARN TO TRADE OPTIONS?
Options are complicated; is it worth the effort to learn about them?
I cannot deny it; options trading is complicated, messy, and forces traders to use “fuzzy math” rather than the clean profit & loss calculations enjoyed by futures traders ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17957.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-09-37-43-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-09-37-43-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov383hoet,d,"{""minimum-quantity"":""1"",""path"":""ch9s2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:09 (38–43): Homebuilder ETFs: Building Homes To Meet Demand by Leslie N. Masonson"",""caption-linebreaks"":""Homebuilder ETFs: Building Homes To Meet Demand by Leslie N. Masonson
The homebuilding industry is tied to the health of the economy, employment, interest rates, and supply & demand for housing of all types. During difficult financial times, homebuilders and their stocks suffer. However, during strong parts of the economic cycle, homebuilder stocks do well. Here’s a look at how this industry and some related industries have performed, as represented by the ETFs in this sector.
Homebuilder stocks typically enjoy strong seasonal performance between November and March, at least based on 15 years of history. Of course, this year, the coronavirus pandemic, the resulting economic conditions, and a lack of employment opportunities have thrown the homebuilding industry into turmoil ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17960.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-09-38-43-homebuilder-etfs-building-homes-to-meet-demand-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-09-38-43-homebuilder-etfs-building-homes-to-meet-demand-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov384foru,d,"{""minimum-quantity"":""1"",""path"":""ch9s2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:09 (44–46): Fools Rush In: Investing In IPOs by Perry J. Kaufman"",""caption-linebreaks"":""Fools Rush In: Investing In IPOs by Perry J. Kaufman
Many people rue the day that they passed up an opportunity to buy an IPO that went on to make investors millions. How often do IPOs pay off? And when they do, how long does it take? We’ll take a look at what some of the data says.
If we had bought Google shares at $100 on the close of the day the IPO began trading in August 2004, we would have had a profit of 1,035% when it split 2:1 on April 2, 2014. The price on April 22, 2020 was $1,406, up from $568 for another gain of 1,487% ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17963.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-09-44-46-fools-rush-in-investing-in-ipos-by-perry-j-kaufman-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-09-44-46-fools-rush-in-investing-in-ipos-by-perry-j-kaufman-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov384alqa,d,"{""minimum-quantity"":""1"",""path"":""ch9s2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:09 (47): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
IS AN UNDERLYING THEORY NEEDED FOR AN ALGO SYSTEM?
I am getting into algorithmic trading after a long period of using pure fundamentals, such as supply & demand numbers and financial metrics, to enter and exit trades. Should my algos have a fundamental reason for taking trades?
For any system to work well for you, if you feel strongly about it, then you should definitely use that criteria as part of your idea generation ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17966.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-09-47-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-09-47-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov384trti5,d,"{""minimum-quantity"":""1"",""path"":""ch9s2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:09 (48–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is James Garofallou’s article in this issue “Tracking Relative Strength In Four Dimensions.” Here, we present the September 2020 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-09-48-56-traders-tips-by-technical-analysis-inc-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-09-48-56-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-09-48-56-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov386trpe6,d,"{""minimum-quantity"":""1"",""path"":""ch9s2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:09 (60–61): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
FOOLISHNESS OF CROWDS— WISDOM OF MOBS?
Investors hear that they should “buy low and sell high.” This sounds attainable, but sadly, most investors and traders do the opposite. When markets rally, greed, which is the “fear of missing out” emotion, kicks in and participants buy high. When the market sells off, the fear of loss causes market participants to panic and lock in losses ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17969.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-09-60-61-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-09-60-61-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov386bofo2,d,"{""minimum-quantity"":""1"",""path"":""ch9s2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:09 (62): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
Kaufman Constructs Trading Systems by Perry J. Kaufman
Trading Commodity Options…With Creativity by Carley Garner
Dating The Stock Market: 10 Key Mind sets You Need To Excel As A Trader by Mark Kelly, PhD
Benjamin Graham’s Net-Net Stock Strategy: A Practical Guide To Successful Deep Value Investing In Today’s Markets by Evan Bleker"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19624.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-09-62-books-for-traders-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-09-62-books-for-traders-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38616ex,d,"{""minimum-quantity"":""1"",""path"":""ch9s2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:09 (6–7, 16): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
COMBATTING TIME DECAY IN OPTIONS
I like to trade on a short-term directional basis. I would like to use shorter-term options to reduce my cost but I know that buying calls or puts with little time left until expiration invites a lot of time decay. Is there a reasonable alternative?
When it comes to option trading, there are always alternatives. The key is understanding the tradeoffs and the unique risk/reward nature of each alternative ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19645.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-09-6-7-16-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-09-6-7-16-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov388trre,d,"{""minimum-quantity"":""1"",""path"":""ch9s2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:09 (8–16): Tracking Relative Strength In Four Dimensions by James Garofallou, PhD"",""caption-linebreaks"":""Tracking Relative Strength In Four Dimensions by James Garofallou, PhD
Relative strength has more information embedded within it than meets the eye. Here is a way to identify and compress several dimensions of relative strength into one single scalable value, the RS4r, which allows you to compare and then rank securities for robustness across timeframes and shifting market conditions.
Relative strength (not to be confused with the RSI, which is the relative strength index developed by J. Welles Wilder) measures a security’s strength in comparison to another security. It is derived by dividing the first security by a second security or by the index to which it is compared ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19648.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-09-8-16-tracking-relative-strength-in-four-dimensions-by-james-garofallou-phd-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-09-8-16-tracking-relative-strength-in-four-dimensions-by-james-garofallou-phd-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov381apte1,d,"{""minimum-quantity"":""1"",""path"":""ch10o2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:10 (14–19): Applied Technical Analysis Part 2: Basic Technical Analysis by Sylvain Vervoort"",""caption-linebreaks"":""Applied Technical Analysis Part 2: Basic Technical Analysis by Sylvain Vervoort
Making buy and sell decisions with just a price chart? Here in part 2 of this series, we look at using only some very basic technical analysis to look for trading opportunities.
Last month in part 1, I introduced a modified version of my volatility band using the middle line aver-age to detect reversals and trend moves. Instead of having only a single fixed input for the middle line average, you can make use of different average types, such as the simple moving average (SMA) ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20006.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-10-14-19-applied-technical-analysis-part-2-basic-technical-analysis-by-sylvain-vervoort-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-10-14-19-applied-technical-analysis-part-2-basic-technical-analysis-by-sylvain-vervoort-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov382coma,d,"{""minimum-quantity"":""1"",""path"":""ch10o2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:10 (20–24): Comparing Market And Volatility Index Momentums, Part 3 by Vitali Apirine"",""caption-linebreaks"":""Comparing Market And Volatility Index Momentums, Part 3 by Vitali Apirine
In part 1, we looked at using a momentum oscillator to compare the momentums of two markets for insights into those markets. In part 2, we looked at comparing the momentums of different stock market indexes. In this third and final part, we look at comparing the momentum of a volatility index against the momentum of the market to find out what it can tell us.
Comparing the momentums of different markets or indexes on the same graph can be useful. Traders can look for things like momentum crossovers, centerline crossovers, signal line crossovers, and divergences to help generate signals ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20000.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-10-20-24-comparing-market-and-volatility-index-momentums-part-3-by-vitali-apirine-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-10-20-24-comparing-market-and-volatility-index-momentums-part-3-by-vitali-apirine-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38231pr,d,"{""minimum-quantity"":""1"",""path"":""ch10o2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:10 (25, 31): Price Channel Breakouts by Ken Calhoun"",""caption-linebreaks"":""Price Channel Breakouts by Ken Calhoun
If you have ever wondered where to enter an uptrending chart, then you may find this month’s trading strategy helpful.
Many traders are concerned about buying too late in a trend, out of concern that they will be buying the top ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19994.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-10-25-31-price-channel-breakouts-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-10-25-31-price-channel-breakouts-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov382moav,d,"{""minimum-quantity"":""1"",""path"":""ch10o2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:10 (26–31): Moving Average Crossovers: Looking Under The Hood by Richard Poster, PhD"",""caption-linebreaks"":""Moving Average Crossovers: Looking Under The Hood by Richard Poster, PhD
It’s one of the most popular charting tools and is commonly used for trading signals. Make sure you are using moving average crossovers the most effective way by paying attention to one very important component. Find out what that is.
Moving averages of asset prices are one of the most commonly used tools for identifying trade entry and exit opportunities. One application of this tool, the moving average crossover, is widely used ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18269.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-10-26-31-moving-average-crossovers-looking-under-the-hood-by-richard-poster-phd-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-10-26-31-moving-average-crossovers-looking-under-the-hood-by-richard-poster-phd-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov383inco,d,"{""minimum-quantity"":""1"",""path"":""ch10o2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:10 (32–38): Interview: A Conversation With Ned Davis by Leslie N. Masonson"",""caption-linebreaks"":""Interview: A Conversation With Ned Davis by Leslie N. Masonson
Ned Davis, senior investment strategist, founded Ned Davis Research (NDR) in 1980. He has been professionally involved in the stock market for over 50 years. He is the author of Being Right Or Making Money (2014). His philosophy is that an investor can consistently do well by using a disciplined, rules-based strategy focused on weight of evidence ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18266.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-10-32-38-interview-a-conversation-with-ned-davis-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-10-32-38-interview-a-conversation-with-ned-davis-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38456fu,d,"{""minimum-quantity"":""1"",""path"":""ch10o2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:10 (40, 56): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
PARTICIPATE IN THE GOLD MARKET WITH LESS RISK?
Gold and silver margins are high and so are the risks. How can small traders participate?
Gold and silver tend to be feast or famine markets regarding both prices and volatility ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18263.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-10-40-56-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-10-40-56-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov384alqa1,d,"{""minimum-quantity"":""1"",""path"":""ch10o2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:10 (41): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
WHERE BACKTESTING GOES WRONG
You have said that many backtests fail in real-time trading. What factors do you believe contribute to good backtests failing in the real world? Thanks!
One of the hardest things to understand with algo trading is the whole concept of backtesting, and its usefulness in live trading ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18260.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-10-41-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-10-41-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov384prre2,d,"{""minimum-quantity"":""1"",""path"":""ch10o2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:10 (42–47): Product Review: MarketSmith by Leslie N. Masonson"",""caption-linebreaks"":""Product Review: MarketSmith by Leslie N. Masonson
MARKETSMITH, INC.
\nWebsite: marketsmith.investors.com
\nPhone: 800 452-4422
\nRequirements: Windows or Mac OS X 10.48 and above
\nProduct: Stock analysis, proprietary ranking and research
\nPrice: Annual subscription $1,499; monthly $149.95. Trial 3 weeks for $19.99
When I saw an advertisement extolling the features of MarketSmith in IBD Weekly a few months ago, it brought back memories of reading the Investor’s Business Daily newspaper in my younger days, attending a one-day advanced investing workshop in New York City in the 1980s led by William J. O’Neil, and reading all the editions of his bestseller How To Make Money In Stocks ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18284.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-10-42-47-product-review-marketsmith-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-10-42-47-product-review-marketsmith-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov384trti6,d,"{""minimum-quantity"":""1"",""path"":""ch10o2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:10 (48–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Barbara Star’s article in this issue “Swing Trade With The Gann Hi-Lo Activator.” Here, we present the October 2020 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18281.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-10-48-56-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-10-48-56-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov386trpe7,d,"{""minimum-quantity"":""1"",""path"":""ch10o2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:10 (60–61): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
MACRO, FUNDAMENTALS, TECHNICALS, AND THE STATS
September is that interesting month where institutions and investors plunge back into the markets with some directional mindset after the events or non-events of the summer months. It often feels like a January in that things are new, fresh, with some excellent liquidity ahead by the many market participants exercising their biases and deploying capital ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18275.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-10-60-61-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-10-60-61-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38638ex,d,"{""minimum-quantity"":""1"",""path"":""ch10o2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:10 (6–7, 38): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
RATIO BACKSPREADS
I would like to enter long-term bullish positions on a variety of stocks and ETFs, however, I have a limited amount of trading capital so I can’t buy a lot of shares. I would like to consider options, but I am concerned about the potentially negative effect of time decay on longer-term options and well as the effect of changes in implied volatility along the way. Is there anything you can suggest?
One possibility that fits this scenario well is referred to as a ratio backspread ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19979.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-10-6-7-38-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-10-6-7-38-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38824sw,d,"{""minimum-quantity"":""1"",""path"":""ch10o2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:10 (8–13, 24): Swing Trade With The Gann Hi-Lo Activator by Barbara Star, PhD"",""caption-linebreaks"":""Swing Trade With The Gann Hi-Lo Activator by Barbara Star, PhD
Here’s an indicator that swing traders can use to help find peaks and valleys of price movement, which is crucial to their success.
Swing trading occupies an important space in the realm of short-term trading. It embraces the concept of trend while avoiding the faster pace and multiple decisions inherent in daytrading. To become skillful, swing traders need a strategy that helps them navigate the peaks and valleys of price movement ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20012.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-10-8-13-24-swing-trade-with-the-gann-hi-lo-activator-by-barbara-star-phd-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-10-8-13-24-swing-trade-with-the-gann-hi-lo-activator-by-barbara-star-phd-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38824sw1,d,"{""minimum-quantity"":""1"",""path"":""faarfr2012"",""ysw-page-title"":""Stocks & Commodities V. 38:10 (8–13, 24): Swing Trade With The Gann Hi-Lo Activator by Barbara Star, PhD"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-21836.gif"",""height"":""296"",""width"":""224""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-10-8-13-24-swing-trade-with-the-gann-hi-lo-activator-by-barbara-star-phd-7.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-10-8-13-24-swing-trade-with-the-gann-hi-lo-activator-by-barbara-star-phd-8.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov381trdi,d,"{""minimum-quantity"":""1"",""path"":""ch11n2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:11 (14–19): Trend Direction And Probability: The Bull Bear Index by Mike B. Siroky, MD"",""caption-linebreaks"":""Trend Direction And Probability: The Bull Bear Index by Mike B. Siroky, MD
Have you ever thought of defining trend in terms of probability rather than in terms of momentum? Here’s a different way to think of trend.
“Trend” is a deceptively intuitive concept, yet remains difficult to quantitate. Trend is most commonly defined in terms of momentum, which is simply the first derivative of price. Here, we will look at trend in an entirely different manner, defining trend in terms of probability ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18097.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-11-14-19-trend-direction-and-probability-the-bull-bear-index-by-mike-b-siroky-md-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-11-14-19-trend-direction-and-probability-the-bull-bear-index-by-mike-b-siroky-md-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38236co,d,"{""minimum-quantity"":""1"",""path"":""ch11n2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:11 (20–24, 36): Comparing Two Adaptive Trends by Perry J. Kaufman"",""caption-linebreaks"":""Comparing Two Adaptive Trends by Perry J. Kaufman
Walk-forward testing and Kaufman’s adaptive moving average try to do the same thing, but in very different ways.
Does it make sense to use the same 40-day moving average for the past 30 years? Many traders don’t think so. Ideally, we would like to change the trend speed to accommodate different price patterns, sometimes changing direction more often, other times grinding out a slow move up or down ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17981.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-11-20-24-36-comparing-two-adaptive-trends-by-perry-j-kaufman-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-11-20-24-36-comparing-two-adaptive-trends-by-perry-j-kaufman-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov382fufo,d,"{""minimum-quantity"":""1"",""path"":""ch11n2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:11 (25): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
MICRO EMINI OPTIONS?
Can you tell me more about the micro emini stock index options and how they might be helpful to traders?
While 2020 has been a rough year for most, there are a few good things that have come from it. For instance, the CME Group listed options written against the micro emini S&P 500 futures as well as options against the micro Nasdaq 100 futures ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19820.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-11-25-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-11-25-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov382apte,d,"{""minimum-quantity"":""1"",""path"":""ch11n2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:11 (26–31): Applied Technical Analysis Part 3: Advanced Technical Analysis by Sylvain Vervoort"",""caption-linebreaks"":""Applied Technical Analysis Part 3: Advanced Technical Analysis by Sylvain Vervoort
Here in part 3 of this series, we’ll look at applying more advanced technical analysis to find out how trading signals improve.
Making buy and sell decisions with just a price chart? In part 1 of this series on applied technical analysis, I introduced a modified version of my volatility band using the middle line average to detect reversals and trend moves. Then in part 2, I applied basic technical analysis only ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19666.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-11-26-31-applied-technical-analysis-part-3-advanced-technical-analysis-by-sylvain-vervoort-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-11-26-31-applied-technical-analysis-part-3-advanced-technical-analysis-by-sylvain-vervoort-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov383incr,d,"{""minimum-quantity"":""1"",""path"":""ch11n2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:11 (32–36): Interview: Cris Doloc On Data-Driven Trading by Karl Montevirgen"",""caption-linebreaks"":""Interview: Cris Doloc On Data-Driven Trading by Karl Montevirgen
Put aside for a minute some of the hype surrounding the latest data-driven technologies in finance and instead take in a few words from someone with a passion for the opportunities that recent developments in computational intelligence could bring to the field of finance and trading. Especially since, as an adjunct professor at University of Chicago in the program of Financial Mathematics, he has a keen interest in explaining it ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19823.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-11-32-36-interview-cris-doloc-on-data-driven-trading-by-karl-montevirgen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-11-32-36-interview-cris-doloc-on-data-driven-trading-by-karl-montevirgen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov383alqa2,d,"{""minimum-quantity"":""1"",""path"":""ch11n2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:11 (37): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
USE STOP-LOSSES?
Since I can create my own strategies with algo trading, do I always need to include stop-losses?
When you develop and test your own algo trading strategies, one great advantage is that you can do whatever you like ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19669.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-11-37-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-11-37-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov383viga,d,"{""minimum-quantity"":""1"",""path"":""ch11n2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:11 (38–42): Video Gaming And eSports ETFs by Leslie N. Masonson"",""caption-linebreaks"":""Video Gaming And eSports ETFs by Leslie N. Masonson
The gaming and esports industry is a very big, lucrative, and growing behemoth in the United States and overseas. The Covid-19 situation has resulted in unexpected revenue surges, skyrocketing stock prices, and possible antitrust investigations. Here’s a look at the six ETFs in this industry sector.
According to industry data, there were 2.5 billion video game players this year compared to 1.8 billion six years ago, with an expected surge of another 200 million by year-end 2021 ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19826.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-11-38-42-video-gaming-and-esports-etfs-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-11-38-42-video-gaming-and-esports-etfs-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38447ex,d,"{""minimum-quantity"":""1"",""path"":""ch11n2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:11 (43, 47): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
BULL CALL SPREAD: IN-THE-MONEY OR OUT-OF-THE-MONEY?
I am expecting a specific price movement in a specific security. I am looking to enter a bull call spread in order to attempt to profit from this movement. My problem is I don’t know if it would be better to: a) buy an in-the-money debit spread in order to increase the probability of profit, or b) buy an out-of-the-money debit spread in order to maximize profitability. Is there a way to choose?"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18067.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-11-43-47-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-11-43-47-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov384trhe,d,"{""minimum-quantity"":""1"",""path"":""ch11n2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:11 (44–46): Trading Head & Shoulders Formations by Fawad Razaqzada"",""caption-linebreaks"":""Trading Head & Shoulders Formations by Fawad Razaqzada
All chartists should be familiar with this chart pattern. Here are a few pointers on ways to get long and short and where alternative exits may be.
Some of the most popular reversal patterns traders use for identifying opportunities against the prevailing trend include double bottoms/tops, head & shoulders, and false breakouts ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18302.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-11-44-46-trading-head-shoulders-formations-by-fawad-razaqzada-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-11-44-46-trading-head-shoulders-formations-by-fawad-razaqzada-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38462tr1,d,"{""minimum-quantity"":""1"",""path"":""ch11n2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:11 (48–56, 62): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is F. Arden Thomas’ article in the August issue “Voting With Multiple Timeframes.” Here, we present the November 2020 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18064.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-11-48-56-62-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-11-48-56-62-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov386leto2,d,"{""minimum-quantity"":""1"",""path"":""ch11n2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:11 (6): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
INTERVIEW WITH JAY KAEPPEL
Editor,
\nIn “A Conversation With Jay Kaeppel” in the July 2020 S&C, Jay indicated that: “... HYG (high-yield) typically perform best December through April” ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19672.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-11-6-letters-to-s-c-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-11-6-letters-to-s-c-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov386trpe8,d,"{""minimum-quantity"":""1"",""path"":""ch11n2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:11 (60–61): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
HEDGED TRADING VERSUS ALGORITHMIC TRADING
By choosing to write on this subject this month, I am not trying to spawn debate over the two topics of hedged trading and algorithmic trading. Rather, I only want to present some pros and cons of both methods and let you consider which may assist you personally in your trading ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18299.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-11-60-61-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-11-60-61-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38719sw,d,"{""minimum-quantity"":""1"",""path"":""ch11n2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:11 (7, 19): Swing Trading High-Volume Pivots by Ken Calhoun"",""caption-linebreaks"":""Swing Trading High-Volume Pivots by Ken Calhoun
Trading pivots can be tricky. Here’s what will help.
As a general rule of thumb, I have found it more effective to trade gaps and breakouts instead of pivots. Often you will find that buying near where you think a low is does not work out if price action keeps going against you after putting on a pivot trade. Sound familiar? If so, then you will like this month’s trading technique in which we look for exceptional confirming volume when attempting to trade pivots ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18094.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-11-7-19-swing-trading-high-volume-pivots-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-11-7-19-swing-trading-high-volume-pivots-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38819un,d,"{""minimum-quantity"":""1"",""path"":""ch11n2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:11 (8–13, 19): A Unified Theory Of The Markets by Steve J. Godwin & Louisa C. Schneider"",""caption-linebreaks"":""A Unified Theory Of The Markets by Steve J. Godwin & Louisa C. Schneider
It sounds ambitious, but it’s based on a simple premise.
In this article, we will present a model of the stock market we developed. It uses common elements found in most technical analysis platforms. The model is based on a linear equation that describes the forward strength and weak-ness of the market ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17978.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-11-8-13-19-a-unified-theory-of-the-markets-by-steve-j-godwin-louisa-c-schneider-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-11-8-13-19-a-unified-theory-of-the-markets-by-steve-j-godwin-louisa-c-schneider-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38118ex,d,"{""minimum-quantity"":""1"",""path"":""ch12d2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:12 (14–15, 18): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
WEEKLY OPTIONS ADVANTAGES
I am interested in trading weekly options, but am not sure which strategy or strategies to employ. Any suggestions?
The advent of weekly options has opened up a brand-new world of opportunities for traders and speculators ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18362.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-12-14-15-18-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-12-14-15-18-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov381noel,d,"{""minimum-quantity"":""1"",""path"":""ch12d2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:12 (16–18): Noise Elimination Technology by John F. Ehlers"",""caption-linebreaks"":""Noise Elimination Technology by John F. Ehlers
Reduce indicator noise and clarify the direction of your indicators using Kendall rank correlation, which measures the strength of dependence between two sets of variables. Here’s how you can use it.
The purpose of technical indicators is to provide an insight into the inefficiencies in the market to make better-informed trading decisions. The problem with most indicators is they use only a short amount of data and are, therefore, noisy themselves ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20172.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-12-16-18-noise-elimination-technology-by-john-f-ehlers-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-12-16-18-noise-elimination-technology-by-john-f-ehlers-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38246ap,d,"{""minimum-quantity"":""1"",""path"":""ch12d2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:12 (20–26, 46): Applied Technical Analysis Part 4: Continuing With Advanced Technical Analysis by Sylvain Vervoort"",""caption-linebreaks"":""Applied Technical Analysis Part 4: Continuing With Advanced Technical Analysis by Sylvain Vervoort
Here, we build on the previous parts and finish this series by continuing the demonstration of some advanced market analysis techniques and how they could help you to read price evolution.
In my past three articles, I introduced some different analysis methods from very simple to more complex for making buy and sell decisions with only a price chart. Last time in part 3, I presented some advanced techniques to help identify more accurate buy and sell signals ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20175.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-12-20-26-46-applied-technical-analysis-part-4-continuing-with-advanced-technical-analysis-by-sylvain-vervoort-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-12-20-26-46-applied-technical-analysis-part-4-continuing-with-advanced-technical-analysis-by-sylvain-vervoort-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38239co,d,"{""minimum-quantity"":""1"",""path"":""ch12d2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:12 (28–33, 39): A Conversation With Julius de Kempenaer by Leslie N. Masonson"",""caption-linebreaks"":""Interview: A Conversation With Julius de Kempenaer by Leslie N. Masonson
Julius de Kempenaer is the founder and director of RRG Research and the developer of Relative Rotation Graphs (RRGs), which is charting technology for data visualization of sector rotation. The RRG software can be found on several major trading platforms.
De Kempenaer was a buy-side quant/technical analyst for five years for IRIS/Robeco. When it was acquired by RABObank, he moved to RABObank International as head of technical analysis on the trading floor. Until June 2007 he served in a similar role on the trading floor of Kempen & Co. in Amsterdam ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20166.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-12-28-33-39-a-conversation-with-julius-de-kempenaer-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-12-28-33-39-a-conversation-with-julius-de-kempenaer-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov383stfo,d,"{""minimum-quantity"":""1"",""path"":""ch12d2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:12 (34–38): A Strategy For The Nasdaq 100 Using Options Sentiment by Urban Jaekle"",""caption-linebreaks"":""A Strategy For The Nasdaq 100 Using Options Sentiment by Urban Jaekle
Can the put/call ratio be used to time entries and exits in the stock market? We take a look.
On March 23, 2020, the put/call ratio traded at a record high for the last five years. This date exactly marked the bottom within most US indexes during the coronavirus-induced crisis ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20169.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-12-34-38-a-strategy-for-the-nasdaq-100-using-options-sentiment-by-urban-jaekle-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-12-34-38-a-strategy-for-the-nasdaq-100-using-options-sentiment-by-urban-jaekle-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov384prre3,d,"{""minimum-quantity"":""1"",""path"":""ch12d2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:12 (40–46): Product Review: Barchart.com by Leslie N. Masonson"",""caption-linebreaks"":""Product Review: Barchart.com by Leslie N. Masonson
BARCHART.COM, INC.
\n209 W. Jackson Blvd. 2nd floor Chicago, IL 60606
\nPhone: 844 227-2427
\nWebsite: www.barchart.com Requirements: Works with all browsers.
\nProduct: Comprehensive market data, charting, and analysis of all asset classes with extensive customization capabilities.
\nPrice: Free 30-day trial of Premier Member service: one-month $29.95 with cancelation at any time; one-year $199; two-year $368; free version available with ads and limited database.
Barchart.com, a privately held company, was founded in Chicago in 2000 ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20097.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-12-40-46-product-review-barchart-com-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-12-40-46-product-review-barchart-com-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov384fufo1,d,"{""minimum-quantity"":""1"",""path"":""ch12d2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:12 (47): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
COMMODITY TRADING ADVISORS: A SMARTER APPROACH?
Is using CTAs to invest funds less risky than other forms of commodity market speculation?
The short answer to that question is… no. Let me explain: Commodity Trading Advisors, CTAs, are entities or persons who, for a fee, trade futures and options strategies on behalf of others ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20100.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-12-47-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-12-47-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38455tr,d,"{""minimum-quantity"":""1"",""path"":""ch12d2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:12 (48–53, 55): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is John Ehlers’ article in this issue “Noise Elimination Technology.” Here, we present the December 2020 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20091.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-12-48-53-55-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-12-48-53-55-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov385wipa,d,"{""minimum-quantity"":""1"",""path"":""ch12d2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:12 (54–55): Wilder’s Parabolic SAR by Stella Osoba, CMT"",""caption-linebreaks"":""Wilder’s Parabolic SAR by Stella Osoba, CMT
When managing a position, we often ask ourselves when is the best time to sell to preserve profits, and if we do sell, when to get back in or reverse our position. The parabolic SAR can help to remove some of that guesswork.
The parabolic SAR is an indicator developed by J. Welles Wilder in the 1970s. He also developed the average true range (ATR), directional movement (ADX), and the relative strength index (RSI). In this brief article, I will offer an overview of the parabolic SAR ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20094.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-12-54-55-wilder-s-parabolic-sar-by-stella-osoba-cmt-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-12-54-55-wilder-s-parabolic-sar-by-stella-osoba-cmt-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov385alqa,d,"{""minimum-quantity"":""1"",""path"":""ch12d2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:12 (56): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
TRADING: PANDEMIC JOB?
I’m interested in trading because I lost my job due to Covid-19. So I need to learn to trade to put food on the table. What do you recommend?
I recommend what you probably do not want to hear—DON’T TRADE!
I’ve actually gotten quite a few e-mails like this in the past 6 months, and the story is always the same ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18392.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-12-56-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-12-56-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov386trpe9,d,"{""minimum-quantity"":""1"",""path"":""ch12d2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:12 (60–61): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
TRADERS—UNCOMMON THINKERS
Traders tend to view life, work, markets, and the economy differently than others. As a trader, you may have a different perspective toward the world than those around you. You tend to conduct your own research, question everything, read between the lines, think outside the box, and avoid swallowing what talking heads are pushing ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18395.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-12-60-8211-61-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-12-60-8211-61-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov386mepi,d,"{""minimum-quantity"":""1"",""path"":""ch12d2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:12 (6–7): Mean-Reversion Pivot Zones by Ken Calhoun"",""caption-linebreaks"":""Mean-Reversion Pivot Zones by Ken Calhoun
This price retracement pattern can help you when daytrading stocks.
One of the most commonly found chart patterns in current markets is the mean-reversion pivot. In this pattern, after an initial large move up ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18365.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-12-6-7-mean-reversion-pivot-zones-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-12-6-7-mean-reversion-pivot-zones-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38839he,d,"{""minimum-quantity"":""1"",""path"":""ch12d2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:12 (8–12, 39): Hedging The S&P 500 Index Using Low-Correlation ETFs by Ken Huck & Nelson Huck"",""caption-linebreaks"":""Hedging The S&P 500 Index Using Low-Correlation ETFs by Ken Huck & Nelson Huck
Here is a way you can improve your buy & hold returns and ease drawdowns by hedging with ETFs.
Many investors, especially those who are retired or approaching retirement, sometimes find it difficult to “buy and hold” due to equity market volatility and large drawdowns ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18359.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-12-8-12-39-hedging-the-s-p-500-index-using-low-correlation-etfs-by-ken-huck-nelson-huck-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-12-8-12-39-hedging-the-s-p-500-index-using-low-correlation-etfs-by-ken-huck-nelson-huck-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov381esma,d,"{""minimum-quantity"":""1"",""path"":""ch13bis208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:13 (14–17): Essential Math For Traders by Perry J. Kaufman"",""caption-linebreaks"":""Essential Math For Traders by Perry J. Kaufman
Do you understand the right way to calculate risk, reward, and the chance of something unexpected happening in the market? Are you sure? Just in case, here is a review of the basic calculations and concepts that every trader should know.
The steady growth of volume in worldwide stock and futures markets during the past twenty years can be viewed as greatly increased competition for profits. An important ingredient for success in this new regime is a better understanding of how risk is important ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-13-14-17-essential-math-for-traders-by-perry-j-kaufman-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-13-14-17-essential-math-for-traders-by-perry-j-kaufman-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-13-14-17-essential-math-for-traders-by-perry-j-kaufman-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38131in,d,"{""minimum-quantity"":""1"",""path"":""ch13bis208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:13 (18–27, 31): Interview: A Conversation With Ziad Jasani by Leslie N. Masonson"",""caption-linebreaks"":""Interview: A Conversation With Ziad Jasani by Leslie N. Masonson
Ziad Jasani became a self-directed investor in 2008 and experienced an intensive education by training with top portfolio managers and trading mentors. He is currently Managing Director and Head Swing Trader of the Independent Investor Institute, which he co-founded in 2011. Recently, he merged his business with becomeabettertrader.com to start offering education and insight on a global scale. Its focus is to provide day and swing trading education to novice and advanced traders through a daily multi-session online trading room.
Prior to starting the Institute, Jasani owned and managed retail establish-ments, as well as having had a successful executive career in the consumer packaged goods industry, growing product portfolios at a double-digit pace.\nMembers who subscribe to his service have been with him for many years because of the value he provides to them. Moreover, Jasani polls members during the day on various decisions, and that provides a community feeling and adds value to the service. Above all, Jasani provides objective, unbiased market insight and always points out his own errors or missed calls, which is not often seen and certainly a rarity in the industry.
STOCKS & COMMODITIES Contributing Writer and ETF columnist Leslie N. Masonson interviewed Ziad Jasani on December 23, 2019 to discuss his educational day and swing trading service and his unique model-based, heavily researched methodology.
After graduating from the Schulich School of Business in 2001 with a BBA in finance, economics, and marketing, you had a series of successful entrepreneurial and corporate experiences. When and why did you decide to give all that up and change careers to become a trader?
\nIt was quite an unexpected journey for me into the world of trading. Shortly after immigrating to Canada at the age of 10, I started working in family businesses that my dad built, small things like variety stores and restaurants ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18903.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-13-18-27-31-interview-a-conversation-with-ziad-jasani-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-13-18-27-31-interview-a-conversation-with-ziad-jasani-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov382wiof,d,"{""minimum-quantity"":""1"",""path"":""ch13bis208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:13 (28–31): The Wisdom Of Wyckoff by Stella Osoba, CMT"",""caption-linebreaks"":""The Wisdom Of Wyckoff by Stella Osoba, CMT
At the root of all markets are the participants. Human nature does not change and therefore there is much to appreciate and learn from the observations Richard D. Wyckoff made nearly a hundred years ago.
\""In a poorly lighted room a youth sat deep in thought. Could he solve the riddle of the stock market? He knew he was on the right road. Study, effort, patient endeavor, with these he was bound to be successful.\"" —Richard D. Wyckoff
A lifetime of closely observing market action and market participants led Richard DeMille Wyckoff to gain a deep understanding of both. This article will extrapolate from Wyckoff’s writings some of his observations about Wall Street and those who participate in what he described as the greatest of all the world’s games ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-13-28-31-the-wisdom-of-wyckoff-by-stella-osoba-cmt-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-13-28-31-the-wisdom-of-wyckoff-by-stella-osoba-cmt-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-13-28-31-the-wisdom-of-wyckoff-by-stella-osoba-cmt-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov383rech,d,"{""minimum-quantity"":""1"",""path"":""ch13bis208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:13 (32–39):2020 Readers’ Choice Awards by Technical Analysis, Inc."",""caption-linebreaks"":""2020 Readers’ Choice Awards by Technical Analysis, Inc.
We are pleased to present the Technical Analysis of STOCKS & COMMODITIES magazine 2020 Readers’ Choice Awards (RCA). Each year, we put before our readers a ballot of products and services related to technical analysis and trading. The following pages present the products and services you and your peers chose this year as your favorites.
The Readers’ Choice Awards begins each year with a list of products gathered by the editors of STOCKS & COMMODITIES, with space for write-in votes (given that our list doesn’t claim to be complete). Then, to find out what our readers find to be the most useful for their trading, we ask them to choose their favorite products or the ones they find most useful from various categories by going to our website, Traders.com, and filling out the survey there ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18900.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-13-32-39-2020-readers-choice-awards-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-13-32-39-2020-readers-choice-awards-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov384betr,d,"{""minimum-quantity"":""1"",""path"":""ch13bis208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:13 (40–41): Bear Traps In Point & Figure by Stella Osoba, CMT"",""caption-linebreaks"":""Bear Traps In Point & Figure by Stella Osoba, CMT
A bear trap is a bullish signal, so recognizing them and understanding how to trade them can be very useful.
In this article, I’ll illustrate a classic bear trap pattern, using Facebook (FB) stock as an example, since it completed one in the fall of 2019 ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17074.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-13-40-41-bear-traps-in-point-figure-by-stella-osoba-cmt-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-13-40-41-bear-traps-in-point-figure-by-stella-osoba-cmt-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38420sc,d,"{""minimum-quantity"":""1"",""path"":""ch13bis208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:13 (42–43): 2019 S&C Articles by Technical Analysis, Inc."",""caption-linebreaks"":""2019 S&C Articles by Technical Analysis, Inc.
If you weren’t subscribing to Technical Analysis of STOCKS & COMMODITIES, The Traders’ Magazine, throughout 2019, you missed out on a lot of information. Here is some of what you missed ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17068.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-13-42-43-2019-s-c-articles-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-13-42-43-2019-s-c-articles-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov3844120,d,"{""minimum-quantity"":""1"",""path"":""ch13bis208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:13 (44, 41): 2019 Traders.com Advantage Articles by Technical Analysis, Inc."",""caption-linebreaks"":""2019 Traders.com Advantage Articles by Technical Analysis, Inc.
Here is a sample of the articles you missed in 2019 if you weren’t a subscriber ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17065.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-13-44-41-2019-traders-com-advantage-articles-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-13-44-41-2019-traders-com-advantage-articles-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov38641fi,d,"{""minimum-quantity"":""1"",""path"":""ch13bis208"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 38:13 (6–12, 41): Fibonacci Analysis For Fun And Profit (It’s True!) by Mark Rivest"",""caption-linebreaks"":""Fibonacci Analysis For Fun And Profit (It’s True!) by Mark Rivest
It’s been a useful concept not only in modern market analysis but also throughout modern mathematics—and it can explain a lot. Here’s a primer on Fibonacci analysis, coupled with a market outlook for 2020 that incorporates Fibonacci analysis.
When to buy? When to sell? These are the basic questions every trader makes before entering a trade. The trader’s objective is to minimize losses and maximize profits. In this article, I’ll explain how Fibonacci analysis can play an important part in helping you to achieve those goals ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18894.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-13-6-12-41-fibonacci-analysis-for-fun-and-pro-64257-t-it-s-true-by-mark-rivest-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-38-13-6-12-41-fibonacci-analysis-for-fun-and-pro-64257-t-it-s-true-by-mark-rivest-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39137se,d,"{""minimum-quantity"":""1"",""path"":""ch1j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:01 (18–19, 37): Semi-Annual Gold Momentum Strategy: International Evidence by Massoud Metghalchi, PhD, with Ahsan Baig"",""caption-linebreaks"":""Semi-Annual Gold Momentum Strategy: International Evidence by Massoud Metghalchi, PhD, with Ahsan Baig
If you find an investing strategy with an edge, it’s worth looking to see if you can broaden the strategy for more opportunities. Here, we’ll revisit the gold momentum strategy to test it on some worldwide markets this time. We think you’ll like the results.
In the December 2019 issue of Technical Analysis of STOCKS & COMMODITIES, an article by Robert Tang proposed a yearly-based gold momentum strategy as follows: If the S&P 500 index performed better than gold in the current year, then in the next year, invest in the S&P 500; but if gold performed better, then the next year, invest in gold ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19958.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-18-19-37-semi-annual-gold-momentum-strategy-international-evidence-by-massoud-metghalchi-phd-with-ahsan-baig-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-18-19-37-semi-annual-gold-momentum-strategy-international-evidence-by-massoud-metghalchi-phd-with-ahsan-baig-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39256ma,d,"{""minimum-quantity"":""1"",""path"":""ch1j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:01 (20–22, 56): Managing Trading Fear And Stress by Stella Osoba, CMT"",""caption-linebreaks"":""Managing Trading Fear And Stress by Stella Osoba, CMT
Keeping emotion out of your trading decisions is always an important part of managing your trading. Understanding the biological processes behind our reactions to stimuli can help us find ways to counter unproductive emotions.
Fear is the one universal emotion that torpedoes many traders’ accounts. Unmanaged fear is the reason traders will often eventually quit trading. Fear is the underlying cause of many mistakes and countless unforced errors traders will make. Fear permeates our conscious and subconscious mind ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19949.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-20-22-56-managing-trading-fear-and-stress-by-stella-osoba-cmt-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-20-22-56-managing-trading-fear-and-stress-by-stella-osoba-cmt-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39239et,d,"{""minimum-quantity"":""1"",""path"":""ch1j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:01 (24–27, 39): ETF Midcap Growth Investing by Leslie N. Masonson"",""caption-linebreaks"":""ETF Midcap Growth Investing by Leslie N. Masonson
One group of stocks with market-beating performance over the past decade has been midcap growth stocks. ETFs provide a way to invest in a basket of stocks in this or other categories. Here’s a look at a handful of ETFs in this category to consider.
Long-term and intermediate-term investors are always looking for areas of the market that offer consistent price performance with normal risk parameters. Market experts always try to pick next year’s winning category, but with limited success ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19952.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-24-27-39-etf-midcap-growth-investing-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-24-27-39-etf-midcap-growth-investing-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov392qulo,d,"{""minimum-quantity"":""1"",""path"":""ch1j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:01 (28–30): A Quick Look At Approaching Cryptocurrencies by Azeez Mustapha"",""caption-linebreaks"":""A Quick Look At Approaching Cryptocurrencies by Azeez Mustapha
Are candlestick patterns and basic technical analysis principles useful for trading cryptos? We take a look.
Two of the most important success factors for a trader are their ability to assess and recognize risks, and their ability to evaluate and control their impulses. Both require separate types of skills, but there are some matches ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18193.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-28-30-a-quick-look-at-approaching-cryptocurrencies-by-azeez-mustapha-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-28-30-a-quick-look-at-approaching-cryptocurrencies-by-azeez-mustapha-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov393inte,d,"{""minimum-quantity"":""1"",""path"":""ch1j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:01 (32–37): Interview: Technical And Market Analysis With Kyle Crystal by Karl Montevirgen"",""caption-linebreaks"":""Interview: Technical And Market Analysis With Kyle Crystal by Karl Montevirgen
Kyle Crystal, CMT, CFTe, is a portfolio manager and technical/quantitative market strategist with xperience in formulating and implementing investment policy in various styles, including long-short, global macro and long-only for single managed accounts as well as fund structures. STOCKS & COMMODITIES Contributing Writer Karl Montevirgen spoke with him about his approach to analyzing the markets, an approach that includes multiple timeframe analysis, market geometry, Elliott wave theory, momentum oscillators, Gann analysis, cycles, and candlesticks ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18196.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-32-37-interview-technical-and-market-analysis-with-kyle-crystal-by-karl-montevirgen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-32-37-interview-technical-and-market-analysis-with-kyle-crystal-by-karl-montevirgen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov393quta,d,"{""minimum-quantity"":""1"",""path"":""ch1j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:01 (38–39): Quick-Scans: Target Rich Trades by Barbara Star, PhD"",""caption-linebreaks"":""Quick-Scans: Target Rich Trades by Barbara Star, PhD
TARGET RICH TRADES
\nMetaStock Add-on
\n4548 Atherton Drive, Ste 200
\nSalt Lake City, UT 84123
\nPhone: 800 882-3040
\nWeb: www.MetaStock.com/ saleschat
\nRequirements: MetaStock version 13 or higher, Windows XP or higher
\nProduct: MetaStock add-on for a trading system by Anne-Marie Baiynd Price: $499 one-time fee with 30-day money-back guarantee
Target Rich Trades incorporates a trading system used by Anne-Marie Baiynd, the originator and CEO of The Trading Book.com. This MetaStock add-on combines her use of trend, support/resistance, and momentum within bullish and bearish price cycles to produce real-time buy and sell signals in all timeframes ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-38-39-quick-scans-target-rich-trades-by-barbara-star-phd-25.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-38-39-quick-scans-target-rich-trades-by-barbara-star-phd-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-38-39-quick-scans-target-rich-trades-by-barbara-star-phd-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39445ex,d,"{""minimum-quantity"":""1"",""path"":""ch1j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:01 (40–41, 45): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
SIDEWAYS STOCKS: AN OPPORTUNITY TO USE CALENDAR SPREADS?
A number of stocks that I am following seem to spend a lot of time going side-ways and trading in a range. Is there a low-risk way to profit from that scenario using options?
A calendar spread can offer a trader the opportunity to make money even when a stock “goes nowhere.” Likewise, if properly positioned, it can offer a significant rate of return and a relatively low dollar risk ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18190.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-40-41-45-explore-your-options-by-jay-kaeppel-7.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-40-41-45-explore-your-options-by-jay-kaeppel-8.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39445ex1,d,"{""minimum-quantity"":""1"",""path"":""faarfr2013"",""ysw-page-title"":""Stocks & Commodities V. 39:01 (40–41, 45): Explore Your Options by Jay Kaeppel"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-21837.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-40-41-45-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-40-41-45-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39445fu,d,"{""minimum-quantity"":""1"",""path"":""ch1j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:01 (42, 45): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
THE QUALITY OF FILLS
Does the commodity brokerage make a difference in the quality of the fill? Also, why aren’t orders always filled as expected?
The biggest lesson new traders learn is there are no free lunches. Moreso, the commodity markets are not charities. Orders will only be filled if there is a willing and able market participant to take the other side of the trade at the desired price. The market does not owe any of us anything, not even liquidity or fair pricing ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18242.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-42-45-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-42-45-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov394buys,d,"{""minimum-quantity"":""1"",""path"":""ch1j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:01 (44–45): Buy Support, Sell Resistance by Ken Calhoun"",""caption-linebreaks"":""Buy Support, Sell Resistance by Ken Calhoun
Here’s what to look for if you want to trade within a price channel.
In nontrending markets, it can be frustrating to get stopped out when trends do not continue in your favor ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18245.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-44-45-buy-support-sell-resistance-by-ken-calhoun-7.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-44-45-buy-support-sell-resistance-by-ken-calhoun-8.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov394buys1,d,"{""minimum-quantity"":""1"",""path"":""faarfr2013"",""ysw-page-title"":""Stocks & Commodities V. 39:01 (44–45): Buy Support, Sell Resistance by Ken Calhoun"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-21838.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-44-45-buy-support-sell-resistance-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-44-45-buy-support-sell-resistance-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov394trti,d,"{""minimum-quantity"":""1"",""path"":""ch1j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:01 (46–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Perry Kaufman’s article in this issue “A Fresh Look At Short-Term Patterns.” Here, we present the January 2021 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18236.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-46-56-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-46-56-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov396leto,d,"{""minimum-quantity"":""1"",""path"":""ch1j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:01 (6): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
TREND DIRECTION AND PROBABILITY: THE BULL BEAR INDEX
Editor,
\nI thoroughly enjoyed Mike Siroky’s article on the “Bull Bear Index” in the November 2020 issue of Technical Analysis of STOCKS & COMMODITIES and I would like to use it in my own trading.
However, I don’t understand how to set up the Excel formula for the t.dist function in Excel ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19920.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-6-letters-to-s-c-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-6-letters-to-s-c-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov396trpe,d,"{""minimum-quantity"":""1"",""path"":""ch1j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:01 (60–61): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
BASKET TRADING: A LOW-VARIANCE APPROACH TO SCALING UP YOUR TRADING BUSINESS
Markets won’t always go up. Besides the directional outcomes, there are also many inside days and choppy sessions to endure or to participate in, if you have the knowhow and the tools ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18239.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-60-61-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-60-61-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov396bofo,d,"{""minimum-quantity"":""1"",""path"":""ch1j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:01 (62): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
Unknown Market Wizards: The Best Traders You've Never Heard Of by Jack D. Schwager
How I Invest My Money: Finance Ex-perts Reveal How They Save, Spend, And Invest by Joshua Brown and Brian Portnoy
Investing For Growth: How To Make Money By Only Buying The Best Companies In The World—An Anthology Of Investment Writing, 2010–20 by Terry Smith
The VIX Trader’s Handbook: The History, Patterns, And Strategies Every Volatility Trader Needs To Know by Russell Rhoads"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19933.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-62-books-for-traders-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-62-books-for-traders-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39717al,d,"{""minimum-quantity"":""1"",""path"":""ch1j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:01 (7, 17): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
CLOSING TIME(S)
I have a gold algo, and I was calculating values today after the close at 5 pm and got an entry signal. But at 6 pm, the closing price had changed significantly, making my signal invalid. What went wrong?
Based on your question, I would guess that you have fallen victim to the “last vs. settlement closing price” issue. Let me explain it, and I’ll give you some workarounds ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-7-17-algo-q-a-by-kevin-j-davey-29.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-7-17-algo-q-a-by-kevin-j-davey-37.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-7-17-algo-q-a-by-kevin-j-davey-38.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39717al1,d,"{""minimum-quantity"":""1"",""path"":""faarfr2013"",""ysw-page-title"":""Stocks & Commodities V. 39:01 (7, 17): Algo Q&A by Kevin J. Davey"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-7-17-algo-q-a-by-kevin-j-davey-34.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-7-17-algo-q-a-by-kevin-j-davey-35.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-7-17-algo-q-a-by-kevin-j-davey-36.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov398frlo,d,"{""minimum-quantity"":""1"",""path"":""ch1j2012"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:01 (8–17): A Fresh Look At Short-Term Patterns by Perry J. Kaufman"",""caption-linebreaks"":""A Fresh Look At Short-Term Patterns by Perry J. Kaufman
You may be familiar with some of the most popular short-term patterns, but do you know which work best? These test results may help you find out.
I have always liked short-term price patterns. The simplest, such as an island reversal, seem intuitively correct. The best study of chart patterns I’ve seen is by Thomas Bulkowski, who ranked the three top bullish patterns as follows:
1. Upward breakout of a rectangular top (this is the same as a breakout above a horizontal resistance line)
\n2. Upward breakout from a falling wedge
\n3. Upward breakout from an ascending triangle ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19955.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-8-17-a-fresh-look-at-short-term-patterns-by-perry-j-kaufman-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-8-17-a-fresh-look-at-short-term-patterns-by-perry-j-kaufman-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov398frlo1,d,"{""minimum-quantity"":""1"",""path"":""faarfr2013"",""ysw-page-title"":""Stocks & Commodities V. 39:01 (8–17): A Fresh Look At Short-Term Patterns by Perry J. Kaufman"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-21839.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-8-17-a-fresh-look-at-short-term-patterns-by-perry-j-kaufman-7.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-01-8-17-a-fresh-look-at-short-term-patterns-by-perry-j-kaufman-8.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov391alqa,d,"{""minimum-quantity"":""1"",""path"":""ch2f2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:02 (13): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
IN THE MARGINS
My account is small, and my brokerage intraday margin for the mini S&P futures is too high. Why won’t they lower it?
Those darn brokers, how dare they throw up obstacles to trading! Am I right?\nBefore I discuss the broker part of the equation, I’ll touch on general futures margin requirements ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18058.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-02-13-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-02-13-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov391dysu,d,"{""minimum-quantity"":""1"",""path"":""ch2f2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:02 (14–18): Dynamic Support And Resistance by Mike B. Siroky, MD"",""caption-linebreaks"":""Dynamic Support And Resistance by Mike B. Siroky, MD
Here’s how you can use the principles of random walk theory to develop volatility-based dynamic support and resistance lines that can be useful in either oscillating or trending markets.
Ohio State football coach Woody Hayes allegedly said, “Three things can happen when you throw the ball, and two of them are bad.” Paraphrasing, three things can happen when you buy a stock, and two of them are bad. The stock can go down, it can oscillate in a range, or it can go up ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18073.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-02-14-18-dynamic-support-and-resistance-by-mike-b-siroky-md-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-02-14-18-dynamic-support-and-resistance-by-mike-b-siroky-md-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov392raof,d,"{""minimum-quantity"":""1"",""path"":""ch2f2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:02 (20–21): Ratio Of Red To Green Candles by Ken Calhoun"",""caption-linebreaks"":""Ratio Of Red To Green Candles by Ken Calhoun
One of the most important skills to develop as an active trader is to know when to scale out of a position to lock in profits once price action starts to reverse.
Traditional candlestick reversal patterns include shooting stars and bearish engulfing candles ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18070.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-02-20-21-ratio-of-red-to-green-candles-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-02-20-21-ratio-of-red-to-green-candles-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39247un,d,"{""minimum-quantity"":""1"",""path"":""ch2f2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:02 (22–25, 47): A Unified Theory Of The Markets: RSI And Dynamic Clip Levels by Steve J. Godwin & Louisa C. Schneider"",""caption-linebreaks"":""A Unified Theory Of The Markets: RSI And Dynamic Clip Levels by Steve J. Godwin & Louisa C. Schneider
As a follow-up to our recent article that presented a market model called the UTM, here we dive deeper into some of the details that are used as inputs to the model. This market model provides a perspective on the strength of the buying/selling forces and their market impact.
In our November 2020 article in this magazine, “A Unified Theory Of The Markets,” we described an approach that we use to model the market. In the article, we presented our basic premise and we described the inputs that we use to obtain outputs we find useful for our model ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18079.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-02-22-25-47-a-unified-theory-of-the-markets-rsi-and-dynamic-clip-levels-by-steve-j-godwin-louisa-c-schneider-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-02-22-25-47-a-unified-theory-of-the-markets-rsi-and-dynamic-clip-levels-by-steve-j-godwin-louisa-c-schneider-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov392thun,d,"{""minimum-quantity"":""1"",""path"":""ch2f2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:02 (26–31): Three Undeniable Truths Of Trading by Robert J. van Eyden, PhD"",""caption-linebreaks"":""Three Undeniable Truths Of Trading by Robert J. van Eyden, PhD
What every trader should know.
Much has been written about what it takes to become a profitable trader. There is no shortage of books, articles, courses, and more on the topic. Like so many things in life, trading looks simple from the outside. However ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18076.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-02-26-31-three-undeniable-truths-of-trading-by-robert-j-van-eyden-phd-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-02-26-31-three-undeniable-truths-of-trading-by-robert-j-van-eyden-phd-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov393inco,d,"{""minimum-quantity"":""1"",""path"":""ch2f2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:02 (32–37): Interview: A Conversation With Urban Jaekle by Karl Montevirgen"",""caption-linebreaks"":""Interview: A Conversation With Urban Jaekle by Karl Montevirgen
Urban Jaekle has been trading stocks since 1995 and futures since 2000. He is coauthor of Trading Systems: A New Approach To System Testing And Portfolio Optimization (2019, second edition) along with Emilio Tomasini. His educational background is in physics. He enjoys programming and testing concepts, putting a high priority on reproducibility and verifiability.
He worked on the trading floor of the CME in S&P 500 futures, and for several years he traded his strategies for a German fund. He now regularly shares his experiences in building robust trading systems in books, seminars, and in his AmiBroker video course, and is launching a signal service for US stocks. His website is Urban-Stocks.com.
STOCKS & COMMODITIES Contributing Writer Karl Montevirgen interviewed Urban Jaekle in December 2020 to discuss system testing and development and how he goes about discovering ideas for trading strategies."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19778.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-02-32-37-interview-a-conversation-with-urban-jaekle-by-karl-montevirgen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-02-32-37-interview-a-conversation-with-urban-jaekle-by-karl-montevirgen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov393apsw,d,"{""minimum-quantity"":""1"",""path"":""ch2f2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:02 (38–41): Approaching Swing Trading In Forex by Azeez Mustapha"",""caption-linebreaks"":""Approaching Swing Trading In Forex by Azeez Mustapha
The principles of swing trading in forex vary only slightly from swing trading in any other market. Here are some basic steps you can use to put yourself on the path toward mastering swing trading, particularly for the forex market.
Given the thousands of trading methods to follow and possible new avenues to explore, how do you know which to pursue? With so many strategies and tools available, it can certainly get complicated. But it doesn’t have to be ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19775.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-02-38-41-approaching-swing-trading-in-forex-by-azeez-mustapha-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-02-38-41-approaching-swing-trading-in-forex-by-azeez-mustapha-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov394fufo,d,"{""minimum-quantity"":""1"",""path"":""ch2f2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:02 (42): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
HOW CAN SMALL TRADERS REDUCE LEVERAGE IN THEIR COMMODITY SPECULATIONS?
The biggest mistake traders make is to maximize their leverage. In their minds, they are also maximizing their profit potential, but in reality they are dramatically reducing their odds of success ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19784.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-02-42-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-02-42-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov394suin,d,"{""minimum-quantity"":""1"",""path"":""ch2f2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:02 (44–45): Sustainable Investing As A Tool For Impact by Andre Manduku"",""caption-linebreaks"":""Sustainable Investing As A Tool For Impact by Andre Manduku
Here, we present some thoughts from a young investor on the topics of sustainable investing and impact investing.
Investing has always been about individuals assessing and selecting ventures which they perceive to hold the potential of generating yield and profit while incurring the least amount of loss. This choice has traditionally been done through evaluating a specific venture’s risk and return profile ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19781.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-02-44-45-sustainable-investing-as-a-tool-for-impact-by-andre-manduku-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-02-44-45-sustainable-investing-as-a-tool-for-impact-by-andre-manduku-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov394usco,d,"{""minimum-quantity"":""1"",""path"":""ch2f2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:02 (46–47): Using The Commodity Channel Index by Stella Osoba, CMT"",""caption-linebreaks"":""Using The Commodity Channel Index by Stella Osoba, CMT
The commodity channel index (CCI) is a popular indicator developed by Donald Lambert and first published in an edition of Commodities magazine in 1980. It is named the CCI because Lambert developed the index to help him identify cyclical turns in the commodities market. Since then it has gained popularity for its versatility, as it can be applied to stocks, currencies, and indexes.
The CCI has a center line of 0. It is unbounded, which means that it can rise above +100 or below -100. Levels above +100 are generally considered bullish while levels below -100 are considered bearish ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19805.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-02-46-47-using-the-commodity-channel-index-by-stella-osoba-cmt-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-02-46-47-using-the-commodity-channel-index-by-stella-osoba-cmt-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov394trti1,d,"{""minimum-quantity"":""1"",""path"":""ch2f2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:02 (48–55): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Richard Poster’s article in this issue “Trend Strength: Measuring The Duration Of A Trend.” Here, we present the February 2021 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19802.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-02-48-55-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-02-48-55-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov395bofo,d,"{""minimum-quantity"":""1"",""path"":""ch2f2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:02 (56): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
The Psychology Of Money: Timeless Lessons On Wealth, Greed, And Happiness by Morgan Housel
Bulletproof Trader: Evidence-Based Strategies For Overcoming Setbacks And Sustaining High Performance In The Markets by Steve Ward
When the Fund Stops: The Untold Story Behind The Downfall Of Neil Woodford, Britain’s Most Successful Fund Manager by David Ricketts
Technical Analysis And Stock Market Profits (Harriman Definitive Edition) by Richard Schabacker
"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19811.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-02-56-books-for-traders-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-02-56-books-for-traders-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39655tr,d,"{""minimum-quantity"":""1"",""path"":""ch2f2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:02 (60–62, 55): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
MORE ON BASKET TRADING
My goal has always been to equip traders to beat the odds. This is important, as I hear from many that it is challenging to make money from daytrading and swing trading.
I believe that it should be easier to extract profits from trading equities versus trading synthetics ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19808.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-02-60-62-55-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-02-60-62-55-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov396exyo,d,"{""minimum-quantity"":""1"",""path"":""ch2f2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:02 (6–7): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
STOCK ACCUMULATION WITH HELP FROM OPTIONS
I keep reading that one potential use for options is to accumulate a position in a given stock. But I don’t really understand how that works. Can you explain the process?
First off—as with all things related to options trading—there is no “one set way” or “one best way” to accumulate a stock position via the use of options. But walking through an example should give you the gist of what you need to know ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18055.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-02-6-7-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-02-6-7-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39841tr,d,"{""minimum-quantity"":""1"",""path"":""ch2f2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:02 (8–12, 41): Trend Strength: Measuring The Duration Of A Trend by Richard Poster, PhD"",""caption-linebreaks"":""Trend Strength: Measuring The Duration Of A Trend by Richard Poster, PhD
Getting a good reading on trend strength is an important and useful metric to have when trading. Here, we introduce a new technique that makes use of a less common approach to measuring the strength of a trend.
Trend strength can be measured by the size of price change over a period of time. It can also be measured by the duration of a trend. In this article, I will propose a new trend strength indicator that calculates the less common of the two approaches—the duration. This indicator can serve to improve the effectiveness of trading strategies ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18061.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-02-8-12-41-trend-strength-measuring-the-duration-of-a-trend-by-richard-poster-phd-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-02-8-12-41-trend-strength-measuring-the-duration-of-a-trend-by-richard-poster-phd-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39128in,d,"{""minimum-quantity"":""1"",""path"":""ch3m2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:03 (10–12, 28): In Search Of A Better RSI by Alon Horesh"",""caption-linebreaks"":""In Search Of A Better RSI by Alon Horesh
The relative strength index has long been a standard tool for technical analysts. Here, we introduce a new version of it, named the RSING, that offers several important improvements.
The relative strength index (RSI), developed by J. Welles Wilder in the 1970s, is a momentum oscillator that measures the price momentum of a traded asset. It also serves other purposes such as overbought/oversold indications ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18106.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-03-10-12-28-in-search-of-a-better-rsi-by-alon-horesh-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-03-10-12-28-in-search-of-a-better-rsi-by-alon-horesh-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov391raof,d,"{""minimum-quantity"":""1"",""path"":""ch3m2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:03 (14–16): Rate Of Change With Bands by Vitali Apirine"",""caption-linebreaks"":""Rate Of Change With Bands by Vitali Apirine
Here, we introduce a type of trading band you can use on your charts. These bands are based on the rate-of-change oscillator.
The rate-of-change (ROC) indicator is a momentum oscillator that measures the percent change in price from one period to the next. An oscillator fluctuates above and below the zero line. ROC bands show the upper and lower limits of rate of change. This article will focus on overbought and oversold levels ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18109.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-03-14-16-rate-of-change-with-bands-by-vitali-apirine-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-03-14-16-rate-of-change-with-bands-by-vitali-apirine-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov391alqa1,d,"{""minimum-quantity"":""1"",""path"":""ch3m2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:03 (17): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
THE HOLY GRAIL STRATEGY
I have been chart trading for a while, and recently decided to tackle algorithmic trading. I am looking for a single mini S&P strategy that trades one-minute bars, multiple trades per day, with a position sizing approach that generates over $1 million in profits with minimal drawdown. With my most recent backtest iteration, I feel I am almost there. Can you help me reach the summit?
I was once like you—I’d drift off to sleep at night dreaming of the holy grail millionaire strategy ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18112.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-03-17-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-03-17-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov391prfr,d,"{""minimum-quantity"":""1"",""path"":""ch3m2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:03 (18–23): Profiting From Failure by Thomas Bulkowski"",""caption-linebreaks"":""Profiting From Failure by Thomas Bulkowski
Trading busted chart patterns might be the way to riches. Or not.
If you’re having trouble making money trading chart patterns, then here’s an idea: Try trading busted ones. What’s a busted pattern? I struggled answering that question when I first started researching chart patterns. A busted pattern is one that doesn’t work as expected ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18115.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-03-18-23-profiting-from-failure-by-thomas-bulkowski-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-03-18-23-profiting-from-failure-by-thomas-bulkowski-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov392qust,d,"{""minimum-quantity"":""1"",""path"":""ch3m2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:03 (24–28): Quick-Scans: StockCharts ACP by Leslie N. Masonson"",""caption-linebreaks"":""Quick-Scans: StockCharts ACP by Leslie N. Masonson
STOCKCHARTS ACP
\nStockCharts.com
\n11241 Willows Rd., Suite 320 Redmond, WA 98052
\nPhone: 425 881-2606
\nEmail: support@StockCharts.com
\nWebsite: www.StockCharts.com
\nProduct: StockCharts ACP (Advanced Charting Platform) for technical analysis
\nPrice: Basic, $14.95/mo.; Extra, $24.95/mo.; and Pro, $39.95 mo. (real-time data at 5-second refresh rate). Free version with limited ac-cess. Free trial available.
StockCharts ACP is the latest interactive streaming enhancement of StockCharts.com, which is a powerful and well-known dynamic technical analysis charting and scanning platform that was founded in 1999 ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19838.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-03-24-28-quick-scans-stockcharts-acp-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-03-24-28-quick-scans-stockcharts-acp-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39237pr,d,"{""minimum-quantity"":""1"",""path"":""ch3m2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:03 (29, 37): Price Projection Daytrading by Ken Calhoun"",""caption-linebreaks"":""Price Projection Daytrading by Ken Calhoun
Here’s how you can use the previous day’s range to project the expected maximum range for the current trading session.
One of the most valuable techniques you can use\nwhen daytrading stocks is to look for patterns that repeat, which is why it’s referred to as “pattern daytrading” ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19841.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-03-29-37-price-projection-daytrading-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-03-29-37-price-projection-daytrading-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39337fu,d,"{""minimum-quantity"":""1"",""path"":""ch3m2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:03 (30, 37): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
WHAT ARE THE BIGGEST MISTAKES COMMODITY TRADERS MAKE?
The truth is, most commodity speculators lose money and there is no limit to the types of mistakes that can be made. Further, because markets and environments (both economic and political) are constantly changing, the mistakes traders make today might not have existed a few short years ago ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19844.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-03-30-37-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-03-30-37-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov393avpi,d,"{""minimum-quantity"":""1"",""path"":""ch3m2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:03 (32–36): Avoiding The Pitfalls Of Historical Data by Perry J. Kaufman"",""caption-linebreaks"":""Avoiding The Pitfalls Of Historical Data by Perry J. Kaufman
Testing a trading strategy depends on handling the data correctly. How do price shocks figure into the historical data?
On April 20, 2020, in the midst of the Covid-19 pandemic, there was an unprecedented drop in demand for oil. No one was driving, no one was flying. Figure 1 shows a plunge to negative $35/barrel. Even the exchange was unprepared to handle negative prices for a commodity ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19847.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-03-32-36-avoiding-the-pitfalls-of-historical-data-by-perry-j-kaufman-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-03-32-36-avoiding-the-pitfalls-of-historical-data-by-perry-j-kaufman-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39356el,d,"{""minimum-quantity"":""1"",""path"":""ch3m2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:03 (38–39, 56): Elliott Wave Perspective For US Stocks, 2009–2020 by Mark Rivest"",""caption-linebreaks"":""Elliott Wave Perspective For US Stocks, 2009–2020 by Mark Rivest
See why the 2009 to 2010 market rally may suggest an upcoming top in the stock market.
Knowledge of Elliott wave patterns can provide tremendous insight as to where, and sometimes when, a market could turn. There are many different Elliott wave patterns, and subwaves can occasionally cloud the bigger picture ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19857.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-03-38-39-56-elliott-wave-perspective-for-us-stocks-2009-2020-by-mark-rivest-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-03-38-39-56-elliott-wave-perspective-for-us-stocks-2009-2020-by-mark-rivest-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov394miga,d,"{""minimum-quantity"":""1"",""path"":""ch3m2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:03 (40–41): Mind The Gap by Stella Osoba, CMT"",""caption-linebreaks"":""Mind The Gap by Stella Osoba, CMT
Understanding gaps and their significance can be useful for getting in and staying in the trade. Here's a refresher.
Gaps are periods on charts during which no trading has taken place. They are represented by blank spaces. They can form on any timeframe and represent periods when high buying or selling volume—often after market close or before market open—has taken place ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19860.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-03-40-8211-41-mind-the-gap-by-stella-osoba-cmt-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-03-40-8211-41-mind-the-gap-by-stella-osoba-cmt-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39462em,d,"{""minimum-quantity"":""1"",""path"":""ch3m2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:03 (42–46, 62): Emerging Market ETFs by Leslie N. Masonson"",""caption-linebreaks"":""Emerging Market ETFs by Leslie N. Masonson
Emerging market stocks and ETFs appear to finally be coming out of a multiyear decline. Historically, such a rise has typically been followed by a multiyear advance. Given that historical pattern, six broad-based emerging market ETFs are reviewed here to provide a basis for comparison for possible investment.
Emerging market stock price performance has historically seen explosive advances followed by consolidations, then precipitous declines, only to start this cycle over again. This is not unlike the cycle we’ve seen in other assets ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19863.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-03-42-46-62-emerging-market-etfs-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-03-42-46-62-emerging-market-etfs-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov394trti2,d,"{""minimum-quantity"":""1"",""path"":""ch3m2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:03 (48–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Vitali Apirine’s article in this issue “Rate Of Change With Bands.” Here, we present the March 2021 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19866.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-03-48-56-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-03-48-56-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov396trpe1,d,"{""minimum-quantity"":""1"",""path"":""ch3m2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:03 (60–62): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
GAINING MARKET INSIGHTS BY CHARTING SPREADS
Spreads of almost any kind provide information and insights. I am not saying that you should trade them, but I am saying you could. At a minimum, you can use them to be better at what you do, whether that’s to trade, invest, educate, or advise ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18166.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-03-60-62-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-03-60-62-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39656ex,d,"{""minimum-quantity"":""1"",""path"":""ch3m2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:03 (6–8, 56): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
VERY SHORT-TERM OPTIONS
I am interested in trading options on a very short-term basis as a way to collect premium and generate income. Is there a safe way to do this?
There is certainly a lot of opportunity to trade options on a short-term basis to generate income. And there are steps one can take to reduce the associated risk ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18103.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-03-6-8-56-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-03-6-8-56-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov391alqa2,d,"{""minimum-quantity"":""1"",""path"":""ch4a2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:04 (17): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Stocks & Commodities V. 39:04 (17): Algo Q&A by Kevin J. Davey
LIFE ON EASY STREET?
I don’t get it. I just started trading a few months ago with a Robinhood account, and I am up +52% already. I missed trading Gamestop though, bummer! Why do you say trading and algo trading are so hard? It seems pretty easy to me.
We live in interesting times, for sure. There is now a whole generation of traders and investors who think stocks do nothing but go up—just look at the performance of the Nasdaq since the financial crisis ended in 2009 ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19498.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-04-17-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-04-17-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov391fufo,d,"{""minimum-quantity"":""1"",""path"":""ch4a2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:04 (18–19): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
BITCOIN FUTURES AND OPTIONS: A BETTER WAY TO SPECULATE IN CRYPTOCURRENCIES?
The answer to that question likely depends on who you talk to. As a member of the futures industry advocating for such products, I believe traders with ample risk capital are better off using the CME Group suite of cryptocurrencies to gain exposure to price risk in that space ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19383.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-04-18-19-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-04-18-19-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov392swnc,d,"{""minimum-quantity"":""1"",""path"":""ch4a2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:04 (20–24): Swinging NCR by Thomas Bulkowski"",""caption-linebreaks"":""Swinging NCR by Thomas Bulkowski
Here’s a breakdown of a recent momentum swing trade—from the initial search for a trade, to reading the chart, to researching the market context, the reasons for the buy, and the reasons for the exit. Was it successful? We find out. (Spoiler alert: It was.)
The articles I enjoy reading most in Technical Analysis of STOCKS & COMMODITIES magazine have the theme “Anatomy of a trade.” In these articles, the author will dissect a trade he’s made and explain what he did right and what he flubbed ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19495.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-04-20-24-swinging-ncr-by-thomas-bulkowski-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-04-20-24-swinging-ncr-by-thomas-bulkowski-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov392sifo,d,"{""minimum-quantity"":""1"",""path"":""ch4a2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:04 (26–29): A Simple Forex Trend-Following Strategy by Azeez Mustapha"",""caption-linebreaks"":""A Simple Forex Trend-Following Strategy by Azeez Mustapha
A strategy need not be complicated. The strategy given here is for swing trades in the forex market.
As a runner, you could be a sprinter or a marathoner. However, you could also choose to be somewhere in between, such as a 10-kilometer runner. This analogy can relate to forex trading ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19380.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-04-26-29-a-simple-forex-trend-following-strategy-by-azeez-mustapha-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-04-26-29-a-simple-forex-trend-following-strategy-by-azeez-mustapha-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov393indi,d,"{""minimum-quantity"":""1"",""path"":""ch4a2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:04 (30–36): Interview: A Discussion With David Cox by Leslie N. Masonson"",""caption-linebreaks"":""Interview: A Discussion With David Cox by Leslie N. Masonson
David Cox, CFA, CMT, FCSI, FMA, BMath is a Portfolio Manager at CIBC Wood Gundy in Waterloo, Ontario, a role he started in May 2003. As part of the Cox Daggett Advisory Group at CIBC, he manages several discretionary portfolios, as well as regularly conducts educational forums and workshops for clients. He manages assets using a fundamentally screened yet technically driven investment process that uses both trend-following and swing trading techniques. Moreover, for the past 15 years, he has written “Monthly Market Chit Chat,” a monthly e-publication that reviews the key current market trends using charts and commentary, as well as offers a weekly webinar on the markets for both clients and other interested parties ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17774.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-04-30-36-interview-a-discussion-with-david-cox-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-04-30-36-interview-a-discussion-with-david-cox-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39339ma,d,"{""minimum-quantity"":""1"",""path"":""ch4a2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:04 (37, 39): Market Rap by Emilio Tomasini"",""caption-linebreaks"":""Market Rap by Emilio Tomasini
THE ODYSSEY OF A STILL-STRUGGLING COMMODITY TRADER
There are some questions for which there are no easy answers. In the business of trading, this is particularly true. The hard reality is there are never any conclusive answers about our trading methods—we can test whatever methodology we like, but tomorrow will bring a different day ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-04-37-39-market-rap-by-emilio-tomasini-25.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-04-37-39-market-rap-by-emilio-tomasini-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-04-37-39-market-rap-by-emilio-tomasini-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov393swtr,d,"{""minimum-quantity"":""1"",""path"":""ch4a2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:04 (38–39): Swing Trading Volatile Reversals by Ken Calhoun"",""caption-linebreaks"":""Swing Trading Volatile Reversals by Ken Calhoun
In this month’s column you will learn tips for trading secondary breakouts following the initial big move up and back down.
With extreme volatility in stocks like GameStop (GME), you may be wondering how to best approach trading these instruments in a sensible manner ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17771.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-04-38-39-swing-trading-volatile-reversals-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-04-38-39-swing-trading-volatile-reversals-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov394tito,d,"{""minimum-quantity"":""1"",""path"":""ch4a2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:04 (40–41): The Time To Short A Stock Is Not When It’s In An Uptrend by Stella Osoba, CMT"",""caption-linebreaks"":""The Time To Short A Stock Is Not When It’s In An Uptrend by Stella Osoba, CMT
With the madness surrounding stocks like GME, it seems that now is a good time to go over this basic principle of trend trading.
We all want to believe we have an edge and that often means that we convince ourselves we see or know something that others have missed ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17560.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-04-40-41-the-time-to-short-a-stock-is-not-when-it-s-in-an-uptrend-by-stella-osoba-cmt-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-04-40-41-the-time-to-short-a-stock-is-not-when-it-s-in-an-uptrend-by-stella-osoba-cmt-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39420ma,d,"{""minimum-quantity"":""1"",""path"":""ch4a2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:04 (42–47): Product Review: 2020 Master Trader Program: Superperformance Workshop With Mark Minervini by Leslie N. Masonson"",""caption-linebreaks"":""Product Review: 2020 Master Trader Program: Superperformance Workshop With Mark Minervini by Leslie N. Masonson
MINERVINI PRIVATE ACCESS, LLC
\nProduct: Master Trader Program Superperformance Workshop
\nEmail: Workshop@minervini.com
\nContact: Bob Weissman, 917 268-1800
\nWebsite: Minervini.com
\nPrice: $5,000
Over the past 37 years, Mark Minervini learned the keys to profitable trading by studying over 10,000 best-performing stock charts and developing hard-and-fast trading rules, all of which helped to catapult him from novice to supertrader ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-04-42-47-2020-master-trader-program-superperformance-workshop-with-mark-minervini-by-leslie-n-masonson-23.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-04-42-47-product-review-2020-master-trader-program-superperformance-workshop-with-mark-minervini-by-leslie-n-masonson-3.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-04-42-47-product-review-2020-master-trader-program-superperformance-workshop-with-mark-minervini-by-leslie-n-masonson-4.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov394trti3,d,"{""minimum-quantity"":""1"",""path"":""ch4a2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:04 (48–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Markos Katsanos’ article in this issue “Detecting High-Volume Breakouts.” Here, we present the April 2021 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19398.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-04-48-56-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-04-48-56-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39647tr,d,"{""minimum-quantity"":""1"",""path"":""ch4a2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:04 (60–62, 47): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
WHAT DO WE DO WHEN VOLATILITY DECLINES AGAIN?
Looking back over history, increases in volatility are short-lived. The decay that comes after those spikes is pronounced and predictable. Traders who bet on increasing volatility often miss the window of it occurring as it increases rapidly due to “surprises.” Once the catalyst has been largely factored in, volatility retreats ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19508.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-04-60-62-47-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-04-60-62-47-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39619ex,d,"{""minimum-quantity"":""1"",""path"":""ch4a2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:04 (6–7, 19): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
BENEFITS OF A COLLAR STRATEGY?
I read recently about a strategy known as a “collar,” whereby you simultaneously sell a call and buy a put on a stock you hold. Is this a good strategy, and under what circumstances does it makes sense to use?
There is no such thing as a “good” strategy or a “bad” strategy. With any option trading strategy, it really comes down to how you use it and when ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17750.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-04-6-7-19-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-04-6-7-19-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov398dehi,d,"{""minimum-quantity"":""1"",""path"":""ch4a2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:04 (8–16): Detecting High-Volume Breakouts by Markos Katsanos"",""caption-linebreaks"":""Detecting High-Volume Breakouts by Markos Katsanos
Looking at hundreds of charts for high-volume break-out patterns can be tedious and time-consuming. Here is an indicator that will help identify these patterns in seconds.
Is there anything more satisfying for a trader than capturing a huge breakout? The usual practice for breakout entries is to simply buy new highs ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17563.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-04-8-16-detecting-high-volume-breakouts-by-markos-katsanos-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-04-8-16-detecting-high-volume-breakouts-by-markos-katsanos-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39138be,d,"{""minimum-quantity"":""1"",""path"":""ch5m2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:05 (16–19, 38): Better Entries by Perry J. Kaufman"",""caption-linebreaks"":""Better Entries by Perry J. Kaufman
Does waiting for a pullback when entering a trade improve results, or does that just cause you to miss out on the trade? What about other popular entry methods? Here’s a test to find out what may work best.
An easy way to increase your trading profits is to get a better entry price, that is, buy lower or sell higher than the opening price on the day you want to trade. Some analysts recommend approaches such as waiting for a better price, averaging down, using an indicator to find the oversold or overbought level, or just closing your eyes and entering at the market ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17181.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-05-16-19-38-better-entries-by-perry-j-kaufman-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-05-16-19-38-better-entries-by-perry-j-kaufman-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov392fufo,d,"{""minimum-quantity"":""1"",""path"":""ch5m2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:05 (20–21): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
IS THIS THE BEGINNING OF A COMMODITY SUPER-CYCLE?
Historically aggressive government stimulus and a political shift away from fossil fuels have revived expectations of an impending commodity super-cycle ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17166.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-05-20-21-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-05-20-21-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39255tr,d,"{""minimum-quantity"":""1"",""path"":""ch5m2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:05 (22–25, 55): The Trader’s Dilemma: Dealing With Zones Of Uncertainty by Mike B. Siroky, MD"",""caption-linebreaks"":""The Trader’s Dilemma: Dealing With Zones Of Uncertainty by Mike B. Siroky, MD
Using the statistical concepts of sample size and population, we offer a better way to filter out whipsaws in a trend-following system based on moving averages.
In a trend-following system, the moving average is the prime indicator used to determine market trend. If you are a trend-following investor, you will be faced with the inherent drawbacks presented by moving averages. These inherent drawbacks include lag and he inevitable false signal or “whipsaw” ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17172.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-05-22-25-55-the-trader-s-dilemma-dealing-with-zones-of-uncertainty-by-mike-b-siroky-md-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-05-22-25-55-the-trader-s-dilemma-dealing-with-zones-of-uncertainty-by-mike-b-siroky-md-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov392arin,d,"{""minimum-quantity"":""1"",""path"":""ch5m2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:05 (26–31): Artificial Intelligence ETFs by Leslie N. Masonson"",""caption-linebreaks"":""Artificial Intelligence ETFs by Leslie N. Masonson
AI-related companies and AI-focused ETFs have sprung to life with some ETFs having one-year gains ranging from 54% to 89%. AI will be a driving force in many future advancements, making it a trail blazer in this next advanced industrial revolution. Investors and traders can buy a basket of AI companies and participate in the next industrial revolution using ETFs. We’ll take a look at some of them here.
Artificial intelligence (AI) is increasingly being used today for many high-level processes, from optimizing the capabilities of robots, to diagnosing diseases and performing robotic surgery, to enhancing the manufacturing processes for many companies and industries ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18973.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-05-26-31-artificial-intelligence-etfs-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-05-26-31-artificial-intelligence-etfs-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov393cowi,d,"{""minimum-quantity"":""1"",""path"":""ch5m2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:05 (32–38): A Conversation With Timothy Brackett by Karl Montevirgen"",""caption-linebreaks"":""A Conversation With Timothy Brackett by Karl Montevirgen
Timothy Brackett, MSTA, CFTe, is a technical analyst with 35 years of financial market experience, both on the sell side and buy side. He is CEO and founder of The Market’s Compass, LLC (themarketscompass.com), which offers market consulting services as well as subscription-based ETF research. He works at Marketfield Asset Management LLC building a database to track economic, fundamental, and price statistics, and creates a mechanism through the visualization of the data to alert the portfolio manager and analysts of pertinent changes ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18976.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-05-32-38-a-conversation-with-timothy-brackett-by-karl-montevirgen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-05-32-38-a-conversation-with-timothy-brackett-by-karl-montevirgen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov393alqa,d,"{""minimum-quantity"":""1"",""path"":""ch5m2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:05 (39): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
SUPPORT (WITHOUT RESISTANCE)
I am a budding algo trader, and I was speaking with a friend who trades discretionarily based on charts. He mentioned how important it is to have his wife’s support in his trading. I am wondering about this for myself and about whether spousal support might be less of an issue with algorithmic trading as opposed to discretionary trading. I wanted to ask you for your thoughts.
My wife likes to joke that every time she starts reading one of my algo trading books, she falls asleep! Apparently, reading about me programming head and shoulders or candlestick patterns makes her drowsy…"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18967.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-05-39-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-05-39-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov394prre,d,"{""minimum-quantity"":""1"",""path"":""ch5m2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:05 (40–44): Product Review: WealthCharts by Barbara Star, PhD"",""caption-linebreaks"":""Product Review: WealthCharts by Barbara Star, PhD
WEALTHCHARTS, LLC
\nwww.wealthcharts.com
\nSupport@WealthCharts.com
\n580 Broad St., Lake Geneva, WI 53147
\nPhone: (262) 299-6200
\nProduct: Web-based real-time charting, scanning, analytic, educational, and integrated trading platform for desktops, laptops, tablets, and mobile phones
\nPrice: $197 monthly or $2,364 annually
With the goal of creating a platform that contains everything an active trader needs to make trading decisions, national and international trading champion Rob Hoffman launched WealthCharts to be an affordable web-based platform in January 2020 ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18970.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-05-40-44-product-review-wealthcharts-by-barbara-star-phd-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-05-40-44-product-review-wealthcharts-by-barbara-star-phd-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39455ex,d,"{""minimum-quantity"":""1"",""path"":""ch5m2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:05 (46–47, 55): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
DOUBLE TOPS
It seems to me that when a stock makes a double top, it would be a good opportunity to enter an out-of-the-money calendar spread. Is that correct? And if so, is there a set of rules I can follow to exploit such opportunities?
The beauty of a double top is that it provides a trader with an objective “line in the sand,” that is, as long as price remains below the previous high, the trend can objectively be designated as “sideways to lower.” And if price does break back above the previous high, it is an objective sign that the initial catalyst for the trade has failed and it is time to cut bait ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18991.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-05-46-47-55-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-05-46-47-55-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov394trti4,d,"{""minimum-quantity"":""1"",""path"":""ch5m2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:05 (48–54): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is John Ehlers’ article in this issue “A Technical Description Of Market Data For Traders.” Here, we present the May 2021 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-05-48-54-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-05-48-54-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-05-48-54-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov395mara,d,"{""minimum-quantity"":""1"",""path"":""ch5m2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:05 (56): Market Rap by Emilio Tomasini"",""caption-linebreaks"":""Market Rap by Emilio Tomasini
GETTING TO THE POINT WHERE THE RUBBER MEETS THE ROAD
A car is only as good as its tires. There are no exceptions. In whatever field of human endeavor you are traveling, you must always pay attention to where the rubber meets the road. If you stop just before that magic point or if you go too far, you may find yourself off the map ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18988.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-05-56-market-rap-by-emilio-tomasini-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-05-56-market-rap-by-emilio-tomasini-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov396trpe2,d,"{""minimum-quantity"":""1"",""path"":""ch5m2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:05 (60–62): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
MAKING THE TRANSITION TO HIGH-PROBABILITY TRADING
This month, I’d like to recount a story about one of our traders since I think it could help and inspire others. It’s about how he went from nearly having to give up on trading to becoming profitable and consistent. Here, I’ll share some insights about how he got there ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-05-60-62-trading-perspectives-by-rob-friesen-25.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-05-60-62-trading-perspectives-by-rob-friesen-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-05-60-62-trading-perspectives-by-rob-friesen-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov396swtr,d,"{""minimum-quantity"":""1"",""path"":""ch5m2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:05 (6–7): Swing Trading The 50/200 SMA Channel by Ken Calhoun"",""caption-linebreaks"":""Swing Trading The 50/200 SMA Channel by Ken Calhoun
In this month’s column, we’ll look at using the channel formed by the 50 and 200 SMA to help make trading decisions.
Swing traders often use the 50-, 100-, and 200- period simple moving average (SMA). This is particularly helpful for charts that have had an extended run and have recently pulled back into an earlier trading range ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17151.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-05-6-7-swing-trading-the-50-200-sma-channel-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-05-6-7-swing-trading-the-50-200-sma-channel-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov398tede,d,"{""minimum-quantity"":""1"",""path"":""ch5m2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:05 (8–14): A Technical Description Of Market Data For Traders by John F. Ehlers"",""caption-linebreaks"":""A Technical Description Of Market Data For Traders by John F. Ehlers
What is the nature of market data? What wisdoms can be gained from studying it? Here is a brief summary of research into the nature of market data, from someone who has spent decades researching it, testing it, and trading it. Included is a technique to detect and demodulate the AM and FM components of cycles, so you can better ensure your timing signals are accurately accounting for the market data.
Most traders consider market data to be a continuous function. It is further assumed that smoothing this function with averages or squiggly line indicators will create patterns or conditions that are useful for predicting future market direction. These assumptions are very wrong on many levels ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-05-8-14-a-technical-description-of-market-data-for-traders-by-john-f-ehlers-25.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-05-8-14-a-technical-description-of-market-data-for-traders-by-john-f-ehlers-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-05-8-14-a-technical-description-of-market-data-for-traders-by-john-f-ehlers-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov391betr,d,"{""minimum-quantity"":""1"",""path"":""ch6j2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:06 (14–19): The Beazer Trade by Thomas Bulkowski"",""caption-linebreaks"":""The Beazer Trade by Thomas Bulkowski
Should you hold through earnings or not? Here’s an examination of a trade made in a home construction stock, together with the notes and trading journal entries that support and explain the thinking behind the trade every step of the way.
My sale of Beazer Homes (BZH) stock started innocently enough with a question from my bother Jim, who also owned the stock. “Earnings in 8 days. Sell before?” Let me walk you through my purchase of the stock, discuss the sale, and then answer his question ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19309.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-06-14-19-the-beazer-trade-by-thomas-bulkowski-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-06-14-19-the-beazer-trade-by-thomas-bulkowski-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov392enef,d,"{""minimum-quantity"":""1"",""path"":""ch6j2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:06 (20–25): The End-Of-The-Month Effect On The “Cable” by Luca Giusti"",""caption-linebreaks"":""The End-Of-The-Month Effect On The “Cable” by Luca Giusti
Here’s an example of observing a pattern in the market, programming it into an algorithm, analyzing the results, and capitalizing on it in your trading account—in short, what we as technical traders seek to do.
Traders commonly look for trading ideas by looking for patterns.\nWhen we analyze the historical price series for the currency pair GBPUSD (commonly known as the “cable”), we observe that in the last few days of the month, the cable tends to rise, while in the first days of the following month, it tends to fall ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19306.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-06-20-25-the-end-of-the-month-effect-on-the-cable-by-luca-giusti-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-06-20-25-the-end-of-the-month-effect-on-the-cable-by-luca-giusti-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39238di,d,"{""minimum-quantity"":""1"",""path"":""ch6j2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:06 (26–30, 38): Dissecting An Earnings Trade by James Leahy"",""caption-linebreaks"":""Dissecting An Earnings Trade by James Leahy
Option trades are called “earnings trades” when they attempt to profit from stock price moves following the release of a company’s quarterly earnings. This article will construct and dissect a recent Nvidia earnings trade.
Dissecting is defined as the process of methodically analyzing something in minute detail. In this article, I’ll examine the process of setting up a trade before earnings and then dissect it through the next day, after earnings have been released and close the trade ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19315.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-06-26-30-38-dissecting-an-earnings-trade-by-james-leahy-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-06-26-30-38-dissecting-an-earnings-trade-by-james-leahy-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39338al,d,"{""minimum-quantity"":""1"",""path"":""ch6j2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:06 (31, 38): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
FUTURES CONTRACT ROLLOVER AND PRICE HISTORIES
Help! I am trading crude oil futures, and there was a contract rollover yesterday. Today, my historical trades look different, and my current long is now a short! What happened?
One of the unique aspects of futures contracts is their limited lifespan. Typically, futures contracts are only active for a year or two before they expire ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19312.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-06-31-38-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-06-31-38-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov393cowi1,d,"{""minimum-quantity"":""1"",""path"":""ch6j2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:06 (32–38): A Conversation With Jack Schwager by Karl Montevirgen"",""caption-linebreaks"":""A Conversation With Jack Schwager by Karl Montevirgen
Jack Schwager is a trading expert and author of the bestselling Market Wizards book series as well as other notable books in the field. In his latest book, Unknown Market Wizards, he interviews eleven successful low-profile traders to examine how they have achieved their exceptional trading performance. STOCKS & COMMODITIES Contributing Writer Karl Montevirgen interviewed Jack Schwager to ask him for some insights from his latest book as well as about whether we as traders can emulate the successes of these high-performance traders. Read on to find out his answers to these questions and more ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17464.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-06-32-38-a-conversation-with-jack-schwager-by-karl-montevirgen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-06-32-38-a-conversation-with-jack-schwager-by-karl-montevirgen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov394simo,d,"{""minimum-quantity"":""1"",""path"":""ch6j2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:06 (40–44): Sideline Money by Steve J. Godwin & Louisa C. Schneider"",""caption-linebreaks"":""Sideline Money by Steve J. Godwin & Louisa C. Schneider
The amount of money waiting on the sidelines, as well as how that money is moving, can be measured and used as a gauge of fear in the markets (as well as the potential for recovery). Here’s a way you can measure it by using the sideline money ratio (SMR).
In our previous articles, we presented our work towards building a model that unifies the input forces “to” and the output reactions “from” the stock market. We named our model a “unified theory of the markets” ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-06-40-44-sideline-money-by-steve-j-godwin-louisa-c-schneider-25.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-06-40-44-sideline-money-by-steve-j-godwin-louisa-c-schneider-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-06-40-44-sideline-money-by-steve-j-godwin-louisa-c-schneider-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov394exyo,d,"{""minimum-quantity"":""1"",""path"":""ch6j2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:06 (45–47): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
THE BASICS OF OPTIONS QUOTES AND THE GREEK VARIABLES
I am new to option trading and want to make sure I have an understanding of the basics of options quotes and the greeks associated with them. Is there a way to make this information easily understandable?
Understandable? Yes. Easily understandable? Well, we’ll give it our best shot ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17476.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-06-45-47-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-06-45-47-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov394trti5,d,"{""minimum-quantity"":""1"",""path"":""ch6j2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:06 (48–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is John Ehlers’ article in this issue “Creating More Robust Trading Strategies With The FM De-modulator.” Here, we present the June 2021 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17470.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-06-48-56-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-06-48-56-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39639fu,d,"{""minimum-quantity"":""1"",""path"":""ch6j2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:06 (6, 39): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
THE NEW MICRO BITCOIN FUTURES CONTRACT IS A GAME CHANGER
From the get-go, bitcoin has been a market everyone loves to talk about but few are participating in due to significant barriers to entry ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19362.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-06-6-39-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-06-6-39-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39656tr,d,"{""minimum-quantity"":""1"",""path"":""ch6j2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:06 (60–61, 56): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
ASYMMETRIC VS. SYMMETRIC TRADES
I have witnessed a narrative in the last few years that “asymmetric bets” are the most important part of trading and investing. I fundamentally disagree. In truth, there are worthwhile applications of both asymmetric and symmetric trades ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17533.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-06-60-61-56-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-06-60-61-56-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov396mara,d,"{""minimum-quantity"":""1"",""path"":""ch6j2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:06 (62): Market Rap by Emilio Tomasini"",""caption-linebreaks"":""Market Rap by Emilio Tomasini
TREND-FOLLOWING OR MEAN-REVERTING?
There are many ways to trade a market. The first thing you must decide is which half of the sky you want to belong to. On one side, you have the trend-following world, that is, those traders who like to buy momentum and sell weakness ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17527.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-06-62-market-rap-by-emilio-tomasini-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-06-62-market-rap-by-emilio-tomasini-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39747da,d,"{""minimum-quantity"":""1"",""path"":""ch6j2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:06 (7, 47): Day Trading Gap Reversals by Ken Calhoun"",""caption-linebreaks"":""Day Trading Gap Reversals by Ken Calhoun
Day trading gaps can be challenging due to their volatile nature.
Sometimes gaps will continue in the direction of the gap, while other times they will reverse. One little known but very consistent pattern is that of a gap reversal ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19365.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-06-7-47-day-trading-gap-reversals-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-06-7-47-day-trading-gap-reversals-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov398crmo,d,"{""minimum-quantity"":""1"",""path"":""ch6j2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:06 (8–13): Creating More Robust Trading Strategies With The FM Demodulator by John F. Ehlers"",""caption-linebreaks"":""Creating More Robust Trading Strategies With The FM Demodulator by John F. Ehlers
Market data is made up of cyclical components. Cycles contain both signals and noise. It’s a concept that underpins market timing and can be crucial to success. Last month we introduced the concept of using the AM (amplitude modulation) and FM (frequency modulation) components of cycles to better time trades. In this article, we follow up with an example of how you can use this idea in your trading strategies. It’s a process that just might be considered foundational to quantitative analysis.
Last month in the May 2021 issue of STOCKS & COMMODITIES, I introduced the concept of using an FM demodulator to identify and isolate volatility components from the timing components in market data ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-06-8-13-creating-more-robust-trading-strategies-with-the-fm-demodulator-by-john-f-ehlers-25.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-06-8-13-creating-more-robust-trading-strategies-with-the-fm-demodulator-by-john-f-ehlers-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-06-8-13-creating-more-robust-trading-strategies-with-the-fm-demodulator-by-john-f-ehlers-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39140mo,d,"{""minimum-quantity"":""1"",""path"":""ch7j2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:07 (16–18, 40): Moving Average Bands Part 1 by Vitali Apirine"",""caption-linebreaks"":""Moving Average Bands Part 1 by Vitali Apirine
These dynamic bands change as volatility increases and decreases. Use them to signal potential entry points in uptrends and downtrends or to help identify overbought and oversold levels in flat markets.
Moving average bands (MAB), which are a type of trading band based on two different moving average lengths, help to show the movement of a shorter-term moving average relative to movement of a longer-term moving average ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18855.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-07-16-18-40-moving-average-bands-part-1-by-vitali-apirine-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-07-16-18-40-moving-average-bands-part-1-by-vitali-apirine-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov392lote,d,"{""minimum-quantity"":""1"",""path"":""ch7j2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:07 (20–25): Long-Term Technical Indicators by Richard Poster, PhD"",""caption-linebreaks"":""Long-Term Technical Indicators by Richard Poster, PhD
Long-term indicators can help short-term, market-entry indicators maximize profits. Find out how.
We can characterize technical indicators by the period of time they encompass. Of course, we usually use technical indicators with short timespans (short-term indicators) to describe local market behavior and support market-entry decisions ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18858.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-07-20-25-long-term-technical-indicators-by-richard-poster-phd-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-07-20-25-long-term-technical-indicators-by-richard-poster-phd-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov392aede,d,"{""minimum-quantity"":""1"",""path"":""ch7j2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:07 (26–32): Aerospace & Defense ETFs by Leslie N. Masonson"",""caption-linebreaks"":""Aerospace & Defense ETFs by Leslie N. Masonson
The US government provides high-level funding to aerospace and defense to expand its communication satellite networks, to continue building the US air defense, and to examine the far reaches of outer space. Investors may want to consider a small portfolio allocation to an ETF in this technologically exciting industry segment.
Aerospace and defense contractors have always been able to obtain billions of dollars in fund-ing from the US government ever since the US launched Explorer 1—its first satellite to reach orbit on January 31, 1958 ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-07-26-8211-32-aerospace-defense-etfs-by-leslie-n-masonson-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-07-26-8211-32-aerospace-defense-etfs-by-leslie-n-masonson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-07-26-8211-32-aerospace-defense-etfs-by-leslie-n-masonson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39343al,d,"{""minimum-quantity"":""1"",""path"":""ch7j2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:07 (33, 43): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
RIDING THE CRYPTOS TO RICHES?
All my buddies at work are talking about trading crypto. I want to get in on the action with algo trading. How do I get started?
A few months ago, the stock market was all the rage with GameStop going through the roof from all the social media attention ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17040.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-07-33-43-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-07-33-43-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov393cowi2,d,"{""minimum-quantity"":""1"",""path"":""ch7j2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:07 (34–40): A Conversation With Dennis Tilley by Leslie N. Masonson"",""caption-linebreaks"":""Interview: A Conversation With Dennis Tilley by Leslie N. Masonson
Dennis Tilley has traded securities for over 25 years. Since 1999, Tilley has been Director of Research and Chief Investment Officer at Merriman Wealth Management LLC, and is currently Director of Alternative Investments. Tilley has extensive experience in asset class trading, portfolio management research, design, and implementation. Before joining Merriman, Tilley was a nationally recognized expert in the field of electric propulsion. STOCKS & COMMODITIES Contributing Writer and ETF Columnist Leslie N. Masonson spoke with him about his trading career and portfolio management approach ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17043.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-07-34-40-a-conversation-with-dennis-tilley-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-07-34-40-a-conversation-with-dennis-tilley-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39443ma,d,"{""minimum-quantity"":""1"",""path"":""ch7j2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:07 (41, 43): Market Rap by Emilio Tomasini"",""caption-linebreaks"":""Market Rap by Emilio Tomasini
DISCRETIONARY TRADING VS. SYSTEM TRADING
If you want to achieve good trading performance, then use a trading system; if you want to try to make a fortune, then be a discretionary trader ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17046.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-07-41-43-market-rap-by-emilio-tomasini-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-07-41-43-market-rap-by-emilio-tomasini-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov394fufo1,d,"{""minimum-quantity"":""1"",""path"":""ch7j2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:07 (42–43): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
WHERE CAN I FIND COMMODITY VOLATILITY INFORMATION?
Most traders, and even those who have no interest in trading, are aware of the VIX. However, few realize the CME Group displays similar fear gauges for each of the major commodity markets on its website ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17049.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-07-42-43-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-07-42-43-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov394dayt,d,"{""minimum-quantity"":""1"",""path"":""ch7j2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:07 (44–45): Day Trading Mid-Range Gaps by Ken Calhoun"",""caption-linebreaks"":""Day Trading Mid-Range Gaps by Ken Calhoun
We usually think about gaps above previous highs or below previous lows. This month’s strategy can help you trade gaps that are neither of those, but rather are gaps down inside the previous day’s trading range.
One of my favorite gap patterns is one in which a previously strong uptrend-ing stock gaps down to the middle of the prior day’s range and then resumes it’s uptrend ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17009.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-07-44-45-day-trading-mid-range-gaps-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-07-44-45-day-trading-mid-range-gaps-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov394trbu,d,"{""minimum-quantity"":""1"",""path"":""ch7j2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:07 (46–47): Trading Bull Traps by Stella Osoba, CMT"",""caption-linebreaks"":""Trading Bull Traps by Stella Osoba, CMT
In this article we’ll look at bull traps, what they mean, and the best way to trade them.
Point & figure (P&F) charting is perhaps the oldest method of price charting in the Western world. But they are often overlooked because they are perceived as complex and archaic ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17012.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-07-46-47-trading-bull-traps-by-stella-osoba-cmt-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-07-46-47-trading-bull-traps-by-stella-osoba-cmt-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov394trti6,d,"{""minimum-quantity"":""1"",""path"":""ch7j2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:07 (48–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Markos Katsanos’ article in this issue “Buy & Hold, Or Buy & Sell?” Here, we present the July 2021 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17015.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-07-48-56-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-07-48-56-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov396trpe3,d,"{""minimum-quantity"":""1"",""path"":""ch7j2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:07 (60–62): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
THE FUTURE IS ANALOG AND HOW I LOST MY LOVE FOR MUSIC
The big groundswell is to get everything digitally transformed and online. Increased technology up-take, 5G, and the internet of things will keep moving us forward to that amazing future ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17018.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-07-60-62-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-07-60-62-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39643ex,d,"{""minimum-quantity"":""1"",""path"":""ch7j2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:07 (6–7, 43): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
THE USEFULNESS OF BULL CALL SPREADS AND BEAR PUT SPREADS
I have read a lot about the bull call spread and feel like I understand it pretty well. But I am wondering when is the best time to use these strategies versus simply buying stock or buying a call option.
There are many situations when a bull call or bear put spread can make sense. First, let’s define these types of trades ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18879.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-07-6-7-43-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-07-6-7-43-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov398buyh,d,"{""minimum-quantity"":""1"",""path"":""ch7j2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:07 (8–15): Buy & Hold, Or Buy & Sell? by Markos Katsanos"",""caption-linebreaks"":""Buy & Hold, Or Buy & Sell? by Markos Katsanos
Here is a system that with a few simple rules will reduce drawdown and improve the profitability of your portfolio without having to go short or use put options.
You might have heard the common advice that you shouldn’t try to time the market, or that a buy & hold strategy supposedly returns about 10% per year over the long term. However, a 10% return sounds too good to be true, so I decided to investigate ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18852.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-07-8-15-buy-hold-or-buy-sell-by-markos-katsanos-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-07-8-15-buy-hold-or-buy-sell-by-markos-katsanos-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov391whba,d,"{""minimum-quantity"":""1"",""path"":""ch8a2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:08 (10–16): When Backtests Meet Reality Part 1 by Johann Christian Lotter"",""caption-linebreaks"":""When Backtests Meet Reality Part 1 by Johann Christian Lotter
Before you put real money on the line with a trading strategy, you will want to test the strategy to find out if it has a good chance of being profitable going forward. However, there are some important pitfalls to avoid when you go to design a backtest or evaluate the backtest results. Here’s a way forward.
Can you trust your backtest? Too often, systems with a great test result fail miserably in live trading. All backtests suffer from some degree of bias ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20109.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-08-10-16-when-backtests-meet-reality-part-1-by-johann-christian-lotter-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-08-10-16-when-backtests-meet-reality-part-1-by-johann-christian-lotter-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov391plit,d,"{""minimum-quantity"":""1"",""path"":""ch8a2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:08 (18–22): Playing It Safe With Cryptos by Perry J. Kaufman"",""caption-linebreaks"":""Playing It Safe With Cryptos by Perry J. Kaufman
Cryptocurrency trading carries various kinds of risks. Here, we’ll compare several trading methods to find out which could have less risk when approaching the cryptocurrency markets.
To say that cryptocurrencies are “popular” nowadays would be an under-statement, and the 6,700 cryptocurrencies currently available make it clear that just about everyone is in the game ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20145.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-08-18-22-playing-it-safe-with-cryptos-by-perry-j-kaufman-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-08-18-22-playing-it-safe-with-cryptos-by-perry-j-kaufman-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov392mara,d,"{""minimum-quantity"":""1"",""path"":""ch8a2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:08 (23): Market Rap by Emilio Tomasini"",""caption-linebreaks"":""Market Rap by Emilio Tomasini
A REMEMBRANCE OF THE LIFE AND WORK OF J. WELLES WILDER JR.
Editor’s note: J. Welles Wilder Jr. died on April 18, 2021, in Christchurch, New Zealand, at the age of 85. Here, columnist Emilio Tomasini shares his appreciation for the contributions Wilder made to this field.
They say that “old soldiers never die.” There are many concepts in technical trading that are still in frequent use a half century after they were developed ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20151.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-08-23-market-rap-by-emilio-tomasini-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-08-23-market-rap-by-emilio-tomasini-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov392moav,d,"{""minimum-quantity"":""1"",""path"":""ch8a2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:08 (24–27): Moving Average Band Width Part 2 by Vitali Apirine"",""caption-linebreaks"":""Moving Average Band Width Part 2 by Vitali Apirine
In this follow-up to last month’s article on moving average bands (MAB), we present an indicator based on the distance between the bands. MAB width lines can foreshadow strong market moves or a change in trend.
As I discussed in my article last month, moving average bands are a type of trading band that are based on the difference between two moving averages with different lengths ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20157.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-08-24-27-moving-average-band-width-part-2-by-vitali-apirine-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-08-24-27-moving-average-band-width-part-2-by-vitali-apirine-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39262fu,d,"{""minimum-quantity"":""1"",""path"":""ch8a2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:08 (28, 62): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
HOW CAN SMALL RETAIL TRADERS GET INVOLVED IN THE OIL MARKET?
Any trader who has dabbled in crude oil futures knows the risk exposure and stress levels are steep. While there is a relatively liquid option market available around the clock, the risks there are also too large for many retail traders to manage ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20163.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-08-28-62-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-08-28-62-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39262al,d,"{""minimum-quantity"":""1"",""path"":""ch8a2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:08 (29, 62): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
RISE OF THE MACHINES?
Do you think machine learning and artificial intelligence will take over trading someday, rendering us humans obsolete?
First, let me state for the record that I am terrible at predicting the future, as are most people. I don’t think anyone can say for certain what trading will look like in 10–20 years ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18410.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-08-29-62-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-08-29-62-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov393thbr,d,"{""minimum-quantity"":""1"",""path"":""ch8a2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:08 (30–31): Three-Candle Breakouts by Ken Calhoun"",""caption-linebreaks"":""Three-Candle Breakouts by Ken Calhoun
One of the big challenges that we face in trading breakouts is avoiding false breakouts, where price looks to be taking out a new high but then goes back down.
One way to minimize trading false breakouts is to look for a sequence of increasing price action above technical resistance levels ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18413.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-08-30-31-three-candle-breakouts-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-08-30-31-three-candle-breakouts-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov393inco1,d,"{""minimum-quantity"":""1"",""path"":""ch8a2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:08 (32–37): Interview: A Conversation With Joseph W. Cotton by Leslie N. Masonson"",""caption-linebreaks"":""A Conversation With Joseph W. Cotton by Leslie N. Masonson
Joseph Cotton has enjoyed a long career in the financial and real estate fields. A background in finance gives him an interest in incorporating fundamental analysis of companies in his work, and his long experience in charting, tape reading, and technical analysis has enabled him to have a career as a professional market technician. Early on, he became proficient in using charts to help him manage his own investments. When trading and charting software later became available, he became proficient at technical analysis. Along the way he has been a professional credit manager, finance manager, real estate broker, and market letter publisher. He first published his “Cotton’s Technically Speaking” newsletter in 1986. The newsletter provides a weekly market assessment and several weekly stock picks, displaying charts for each pick. He has won or placed in several stock-picking contests. His website is www.cottonstocks.net.
STOCKS & COMMODITIES contributing writer and ETF columnist Leslie N. Masonson interviewed Joseph Cotton via email exchange in late February 2021 to obtain some of his market insights from his 34-plus years in finance as well as some of his investing principles. They also discussed his approach for making stock selections that have the potential for price appreciation ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-08-32-37-interview-a-conversation-with-joseph-w-cotton-by-leslie-n-masonson-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-08-32-37-interview-a-conversation-with-joseph-w-cotton-by-leslie-n-masonson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-08-32-37-interview-a-conversation-with-joseph-w-cotton-by-leslie-n-masonson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov393moav,d,"{""minimum-quantity"":""1"",""path"":""ch8a2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:08 (38–42): Moving Average Crossover Patterns by Marko Fržop"",""caption-linebreaks"":""Moving Average Crossover Patterns by Marko Fržop
The “golden cross” and the “death cross” are two much-hyped patterns in the stock market. Are these patterns strong indicators of things to come? Find out from this study just how reliable they are.
Moving averages are a go-to tool for technical analysts and traders. Some moving averages and moving average crossover patterns are popularly followed and entrusted. But can a moving average tell us whether a trend will continue ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18416.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-08-38-42-moving-average-crossover-patterns-by-marko-fr-op-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-08-38-42-moving-average-crossover-patterns-by-marko-fr-op-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov394copr,d,"{""minimum-quantity"":""1"",""path"":""ch8a2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:08 (44–45): Contradictory Price Patterns by Stella Osoba, CMT"",""caption-linebreaks"":""Contradictory Price Patterns by Stella Osoba, CMT
Oftentimes, price charts will show price patterns that are contradictory. What should you do?
Using technical analysis successfully means being prepared for signals that are contradictory, not being thrown by them, and interpreting them appropriately. Here, I will discuss two signals that appeared on the Dow Jones Industrial Average daily price chart (INDU) ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18398.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-08-44-45-contradictory-price-patterns-by-stella-osoba-cmt-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-08-44-45-contradictory-price-patterns-by-stella-osoba-cmt-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov394trti7,d,"{""minimum-quantity"":""1"",""path"":""ch8a2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:08 (46–55): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Vitali Apirine's article in this issue “Moving Average Band Width” Here, we present the August 2021 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18401.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-08-46-55-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-08-46-55-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov395bofo1,d,"{""minimum-quantity"":""1"",""path"":""ch8a2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:08 (56): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
The Art Of High Probability Investing by Mike B. Siroky, MD
Trading Option Volatility: A Breakthrough In Option Valuation Yielding Practical Insights Into Strategy Design, Simulation, Optimization, Risk Management, And Profits by Brian Johnson
Trend Following Mindset: The Genius Of Legendary Trader Tom Basso by Michael Covel
The DIY Investor: How To Take Control Of Your Investments And Plan For A Financially Secure Future, third edition by Andy Bell"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18404.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-08-56-books-for-traders-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-08-56-books-for-traders-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov396trpe4,d,"{""minimum-quantity"":""1"",""path"":""ch8a2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:08 (60–62): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
USING QUANTITATIVE DATA WITH MARKET REGIME CHANGES
What do you when market disruption occurs and what was in vogue becomes despised and that which was forgotten is now the favorite?
“Rotation” is not a light-hearted word when you are risking capital that is your main tool to use for the business of trading ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18407.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-08-60-62-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-08-60-62-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39631ex,d,"{""minimum-quantity"":""1"",""path"":""ch8a2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:08 (6–8, 31): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
STRADDLE ME THIS…
I am interested in trading straddles but am unsure what criteria I should focus on when deciding which trade to make.
A straddle involves buying a call and put at the same strike price and of the same expiration month. The position makes money if the underlying security moves far enough in one direction to earn more profit on the profitable option than it loses on the unprofitable option ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20103.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-08-6-8-31-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-08-6-8-31-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39135sw,d,"{""minimum-quantity"":""1"",""path"":""ch9s2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:09 (15, 35): Swing Trading Wide-Range Candles by Ken Calhoun"",""caption-linebreaks"":""Swing Trading Wide-Range Candles by Ken Calhoun
As an active trader, you may often face the difficult decision of figuring out when to add to a current position that is open.
In this month’s column you will see how to combine taller-than-average candles with position sizing to better help you decide when to add to a winning trade ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18326.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-09-15-35-swing-trading-wide-range-candles-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-09-15-35-swing-trading-wide-range-candles-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov391lire,d,"{""minimum-quantity"":""1"",""path"":""ch9s2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:09 (16–23): Linear Regression Of Price And Time Part 1: Three Basic Tools by Mike B. Siroky, MD"",""caption-linebreaks"":""Linear Regression Of Price And Time Part 1: Three Basic Tools by Mike B. Siroky, MD
The concept of using a regression line to define price trend takes a big step forward here by introducing three powerful tools you can calculate in Excel. With these tools, you can accurately measure performance, minimize risk, and compare the strength of stocks and ETFs. Find out what these tools are.
Simple linear regression is a statistical method to find the line of best fit for data involving a dependent variable and an independent variable. The purpose of regression analysis is threefold ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18317.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-09-16-23-linear-regression-of-price-and-time-part-1-three-basic-tools-by-mike-b-siroky-md-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-09-16-23-linear-regression-of-price-and-time-part-1-three-basic-tools-by-mike-b-siroky-md-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov392bama,d,"{""minimum-quantity"":""1"",""path"":""ch9s2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:09 (24–31): Basic Materials ETFs by Leslie N. Masonson"",""caption-linebreaks"":""Basic Materials ETFs by Leslie N. Masonson
The materials sector has had market-beating performance over the past year, especially those funds or securities with a metals and mining component. “Materials” is one of the S&P’s 11 sectors, and investors and traders might take a look at this critical and growing area of the US’s expanding economy, which could benefit from the billions of dollars that will be spent through infrastructure spending bills.
Basic materials exchange-traded funds (ETFs) hold companies that focus on the production and exploration of raw materials. More specifically, these areas include the manufacture of chemicals, containers and packaging, metals and mining, construction materials, building products, and paper and forest products ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18320.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-09-24-31-basic-materials-etfs-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-09-24-31-basic-materials-etfs-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov393cowi3,d,"{""minimum-quantity"":""1"",""path"":""ch9s2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:09 (32–35): A Conversation With Alon Horesh by Karl Montevirgen"",""caption-linebreaks"":""Stocks & Commodities V. 39:09 (32–35): A Conversation With Alon Horesh by Karl Montevirgen
Alon Horesh has been an active trader in the US equity markets since 2005. He is the cofounder of Alpha Over Beta (alphaoverbeta.net), which specializes in automated trading solutions. As a software systems architect, Horesh has been involved in the development of automated solutions for the past 20 years. He is accomplished in stock market analysis, risk management, and algorithmic trading strategies, and is an instructor at the Psagot College trading academy in Israel.
Karl Montevirgen interviewed Alon Horesh to discuss trading strategy development and testing, his approach to algorithmic trading, and his recent article in this magazine ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18311.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-09-32-35-a-conversation-with-alon-horesh-by-karl-montevirgen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-09-32-35-a-conversation-with-alon-horesh-by-karl-montevirgen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov393maxm,d,"{""minimum-quantity"":""1"",""path"":""ch9s2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:09 (36–39): MACD x MA: A Cryptocurrency Trading Strategy And Guide by Azeez Mustaha"",""caption-linebreaks"":""MACD x MA: A Cryptocurrency Trading Strategy And Guide by Azeez Mustaha
Having a trading strategy in hand when you step up to your trading platform can be an essential part of an overall trading plan and approach to the markets. Here is one to consider, as well as some guidance for putting this or another strategy to work.
With the recent boom in the cryptocurrency industry, many traders are jumping on the bandwagon to try to profit in this market. There are numerous ways to pursue profits from the cryptocurrency market, be it short-term or long-term ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18314.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-09-36-39-macd-x-ma-a-cryptocurrency-trading-strategy-and-guide-by-azeez-mustaha-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-09-36-39-macd-x-ma-a-cryptocurrency-trading-strategy-and-guide-by-azeez-mustaha-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39443al,d,"{""minimum-quantity"":""1"",""path"":""ch9s2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:09 (40, 43): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
MICRO FUTURES CONTRACTS
What do you think about the sudden proliferation of micro-size futures contracts?
In July 2021, the CME (Chicago Mercantile Exchange, the world’s largest futures exchange) introduced its latest offering—micro contracts for crude oil. These new contracts are sized at 1/10th the size of the full-size crude oil contracts ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20046.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-09-40-43-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-09-40-43-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov394fufo2,d,"{""minimum-quantity"":""1"",""path"":""ch9s2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:09 (42–43): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
IS IT VIABLE TO TRADE COVERED CALLS IN COMMODITIES?
In the realm of stock trading, the practice of selling call options against stocks in an investment portfolio is considered a conservative strategy ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20049.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-09-42-43-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-09-42-43-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39462de,d,"{""minimum-quantity"":""1"",""path"":""ch9s2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:09 (44–49, 62): The Derivative Degree by Yehuda Kornitzer"",""caption-linebreaks"":""The Derivative Degree by Yehuda Kornitzer
How will supply & demand unfold? Here’s a new tool that may help you to look at a chart in a new way.
As a technical analyst, I have spent a good deal of time playing around with charts, trying to make sense of what I was seeing. I eventually came up with a concept I call the derivative degree. In this article, I will explain the concept and how you can use it ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20040.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-09-44-49-62-the-derivative-degree-by-yehuda-kornitzer-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-09-44-49-62-the-derivative-degree-by-yehuda-kornitzer-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov395trti,d,"{""minimum-quantity"":""1"",""path"":""ch9s2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:09 (50–56): Traders’ Tips by Technical Analysis, inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is John Ehlers' article in this issue “Windowing” Here, we present the September 2021 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20043.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-09-50-56-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-09-50-56-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov396trpe5,d,"{""minimum-quantity"":""1"",""path"":""ch9s2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:09 (60–62): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
WHAT COMES OUR WAY AFTER THE SUMMER?
Oh, the summer doldrums…except that occasionally, they are not dull. We have seen summers that had a few weeks of sudden increased volatility, which is not actually that surprising considering that many market participants schedule time off especially in August, so trading volumes decline ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20037.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-09-60-62-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-09-60-62-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov396exyo1,d,"{""minimum-quantity"":""1"",""path"":""ch9s2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:09 (6–7): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
MARRIED, WITH PUTS
I recently read about the “married put” strategy as a means to hedge a particular position. Is this a useful strategy, and if so, when is the best time to employ it?
The married put is one of the simplest strategies of all. It merely involves buying a put option on a stock that you already hold at the time you buy the stock ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18329.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-09-6-7-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-09-6-7-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39823wi,d,"{""minimum-quantity"":""1"",""path"":""ch9s2016"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:09 (8–14, 23): Windowing by John F. Ehlers"",""caption-linebreaks"":""Windowing by John F. Ehlers
In statistics and signal processing, when a waveform or data sequence is multiplied by a window function, the result is the part where they overlap, often thought of as “the view through the window.” Windowing can improve the functionality of filters used for trading such as the simple moving average. Which window function works best for this? We’ll find out.
Simple moving averages (SMA) are ubiquitous in technical analysis. However, the truth is that they are not very good filters. The purpose of this article is to present simple, easy-to-program modifications that represent a near-optimum compromise between filtering and lag for their use in technical analysis of the market ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18323.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-09-8-14-23-windowing-by-john-f-ehlers-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-09-8-14-23-windowing-by-john-f-ehlers-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov391mara,d,"{""minimum-quantity"":""1"",""path"":""ch10o2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:10 (13): Market Rap by Emilio Tomasini"",""caption-linebreaks"":""Market Rap by Emilio Tomasini
WHAT THEY SAY MATTERS
In the trading world, people will sometimes use tricks to give the illusion of trading success. It’s why it’s often said in educational spaces and in this magazine to be sure to do your due diligence and avoid guru-seeking ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18287.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-10-13-market-rap-by-emilio-tomasini-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-10-13-market-rap-by-emilio-tomasini-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov391caop,d,"{""minimum-quantity"":""1"",""path"":""ch10o2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:10 (14–18): Capturing Opportunity By Fading The News by Perry J. Kaufman"",""caption-linebreaks"":""Capturing Opportunity By Fading The News by Perry J. Kaufman
Is there an opportunity to sell a rally following a stock upgrade or other bullish news on a company? Here’s a test to find out.
Just like most of you, I watch the financial news and listen to their recommendations. Sometimes the stock price jumps after an upgrade or falls following a downgrade. My trading platform shows daily upgrades and downgrades, plus a score next to a news item indicating whether the reaction should be bullish or bearish ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18293.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-10-14-18-capturing-opportunity-by-fading-the-news-by-perry-j-kaufman-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-10-14-18-capturing-opportunity-by-fading-the-news-by-perry-j-kaufman-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov392cyan,d,"{""minimum-quantity"":""1"",""path"":""ch10o2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:10 (20–23): Cycle/Trend Analytics And The MAD Indicator by John F. Ehlers"",""caption-linebreaks"":""Cycle/Trend Analytics And The MAD Indicator by John F. Ehlers
Here, we introduce the moving average difference (MAD) indicator and explain the rationale behind its creation. You will find the indicator is robust yet reflects simplicity.
I have been conducting a research project that I started as a way to gain insight into the characteristics of cycles in market data. (See my May 2021 S&C article, “A Technical Description Of Market Data For Traders,” and my February 2021 article, “Creating More Robust Trading Strategies With The FM Demodulator”). Ultimately, the research led to my development of a new trend indicator—the moving average difference (MAD) oscillator ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18290.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-10-20-23-cycle-trend-analytics-and-the-mad-indicator-by-john-f-ehlers-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-10-20-23-cycle-trend-analytics-and-the-mad-indicator-by-john-f-ehlers-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov392lire,d,"{""minimum-quantity"":""1"",""path"":""ch10o2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:10 (24–27): Linear Regression Of Price And Time Part 2 by Mike B. Siroky, MD"",""caption-linebreaks"":""Linear Regression Of Price And Time Part 2: The Regression Adaptive Moving Average (RAMA) by Mike B. Siroky, MD
Here’s a novel approach to the problem of incorporating changing market volatility into a moving average.
A moving average has two important characteristics: 1) it smooths the noise in the data, and 2) it lags behind the most recent price action. The longer the time window of the moving average, the more lag is built in. Exponential moving averages give more weight to recent prices and thus reduce lag ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18251.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-10-24-27-linear-regression-of-price-and-time-part-2-by-mike-b-siroky-md-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-10-24-27-linear-regression-of-price-and-time-part-2-by-mike-b-siroky-md-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov392exyo,d,"{""minimum-quantity"":""1"",""path"":""ch10o2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:10 (28–29): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
FAST-MOVING BREAKOUTS
I would like to buy breakouts on fast-moving stocks. Unfortunately, many of the stocks I find are very expensive. Even to buy call options is proving to be cost prohibitive. Is there a more cost-effective way to make this type of play?
There are a variety of spread opportunities that can fill this bill. Let’s talk about one that most traders don’t think of as a directional strategy ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18248.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-10-28-29-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-10-28-29-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39356co,d,"{""minimum-quantity"":""1"",""path"":""ch10o2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:10 (30–36, 56): A Conversation With David Lundgren by Karl Montevirgen"",""caption-linebreaks"":""Interview: A Conversation With David Lundgren by Karl Montevirgen
David Lundgren, CMT, CFA, is a 30-year investment industry veteran with a focus on technical analysis strategies, particularly momentum and trend following. He was a managing director, portfolio manager, and director of technical research at Wellington Management. He has held similar positions at Fidelity Management and Thomson Financial. He has launched several research and investment firms, including Lundgren Financial Services, Breakaway Research, and hedge fund Lyceum Capital. He co-hosts the monthly podcast “Fill the Gap” for the CMT Association, which he launched at the start of 2021.
STOCKS & COMMODITIES contributing writer Karl Montevirgen interviewed David Lundgren to ask him for some of his insights as well as to explore some of the strong historical links between technical and fundamental analysis ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18257.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-10-30-36-56-a-conversation-with-david-lundgren-by-karl-montevirgen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-10-30-36-56-a-conversation-with-david-lundgren-by-karl-montevirgen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov393alqa1,d,"{""minimum-quantity"":""1"",""path"":""ch10o2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:10 (37): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
SHOULD SIZE MATTER?
I am generally happy with my trading, but I find that once I increase size, my performance degrades. Do you have any tips for me?
I’ll make the assumption that you are trading a liquid market with a good amount of volume. Most futures markets fall into this category ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18254.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-10-37-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-10-37-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov393swtr1,d,"{""minimum-quantity"":""1"",""path"":""ch10o2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:10 (38–39): Swing Trading 50SMA Pivots by Ken Calhoun"",""caption-linebreaks"":""Swing Trading 50SMA Pivots by Ken Calhoun
One of the more valuable strategies you can use as a technical trader is to look for patterns that repeat consistently over time.
In this month’s column, we’ll look at how consistently the S&P has pivoted off of the 50 simple moving average (SMA) line during the last six months ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19967.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-10-38-39-swing-trading-50sma-pivots-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-10-38-39-swing-trading-50sma-pivots-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39456di,d,"{""minimum-quantity"":""1"",""path"":""ch10o2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:10 (40–42, 56): The Directional Cross Strategy by Azeez Mustapha"",""caption-linebreaks"":""The Directional Cross Strategy by Azeez Mustapha
Here we introduce a simple chart-based strategy you can consider.
The directional cross strategy capitalizes on trend change. It seeks to give signals about potential new directional moves in the market. The strategy makes use of three tools: a simple moving average (SMA), price envelopes, and Bollinger Bands. The combination of the three tools produces the strategy’s signals ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19964.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-10-40-42-56-the-directional-cross-strategy-by-azeez-mustapha-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-10-40-42-56-the-directional-cross-strategy-by-azeez-mustapha-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov394canc,d,"{""minimum-quantity"":""1"",""path"":""ch10o2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:10 (44–45): Can Crosses Help Our Trade? by Stella Osoba, CMT"",""caption-linebreaks"":""Can Crosses Help Our Trade? by Stella Osoba, CMT
The death cross and golden cross are technical patterns that are often used to signal stock selloffs or rallies.
THE DEATH CROSS
When the 50-day moving average moves below the 200-day moving average, the technical pattern is often termed a death cross. The faster average moving below the slower average is often a sign of an impending selloff ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19973.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-10-44-45-can-crosses-help-our-trade-by-stella-osoba-cmt-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-10-44-45-can-crosses-help-our-trade-by-stella-osoba-cmt-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov394trti8,d,"{""minimum-quantity"":""1"",""path"":""ch10o2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:10 (46–56): Traders' Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is John Ehlers' article in this issue “Cycle/Trend Analytics And The MAD Indicator.” Here, we present the October 2021 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19970.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-10-46-56-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-10-46-56-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov396trpe6,d,"{""minimum-quantity"":""1"",""path"":""ch10o2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:10 (60–62): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
STATISTICAL BACKDROPS WITH IF-THEN PARAMETERS
The framework I will discuss here can apply to daily trading activity, swing trading, or investing ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20015.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-10-60-62-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-10-60-62-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov396fufo,d,"{""minimum-quantity"":""1"",""path"":""ch10o2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:10 (6–7): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
IS IT VIABLE TO TRADE COVERED CALLS IN COMMODITIES? (PART 2)
Last month we covered (no pun intended) the topic of covered calls in commodities. To summarize, covered calls can be a great strategy for those looking to participate in the futures market but require some room for error ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19961.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-10-6-7-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-10-6-7-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39818wh,d,"{""minimum-quantity"":""1"",""path"":""ch10o2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:10 (8–12, 18): When Backtests Meet Reality Part 2 by Johann Christian Lotter"",""caption-linebreaks"":""When Backtests Meet Reality Part 2 by Johann Christian Lotter
Being able to predict with some accuracy the live trading behavior of a trading strategy is important to your bottom line. Last time in part 1, we looked at some important facets and components of backtesting a trading strategy before you take it live. Here in part 2, we continue by presenting an objective method of evaluating your strategy in live trading so you can determine when you may need to correct course.
Imagine: You have developed a new trading strategy. It passed all tests with flying colors, including the “reality check” described in part 1 of this article. You did everything right and have all reason to assume ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-10-8-12-18-when-backtests-meet-reality-part-2-by-johann-christian-lotter-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-10-8-12-18-when-backtests-meet-reality-part-2-by-johann-christian-lotter-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-10-8-12-18-when-backtests-meet-reality-part-2-by-johann-christian-lotter-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov391shyo,d,"{""minimum-quantity"":""1"",""path"":""ch11n2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:11 (18–22): Should You Buy New 52-Week Highs? by Pawel Kosinski"",""caption-linebreaks"":""Should You Buy New 52-Week Highs? by Pawel Kosinski
How often does this simple bullish strategy work? Here’s a test to find out.
Almost every day we observe stocks that reach their “new 52-week high.” It is often considered a bullish sign, so such signals may be quite appealing for many traders ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18151.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-11-18-22-should-you-buy-new-52-week-highs-by-pawel-kosinski-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-11-18-22-should-you-buy-new-52-week-highs-by-pawel-kosinski-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39226al,d,"{""minimum-quantity"":""1"",""path"":""ch11n2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:11 (23, 26): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
HOW MUCH WILL I MAKE?
How do I know how much monthly income I can reasonably expect to receive once I go live with my trading system? I ask because my backtesting data looks pretty decent but any-thing can happen when trading live. I just don’t want to get too excited. Thanks!
You’ve brought up a lot of topics in your question, so I thought I’d address them one by one ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18160.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-11-23-26-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-11-23-26-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39226bu,d,"{""minimum-quantity"":""1"",""path"":""ch11n2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:11 (23, 26): Buy The Open, Sell The Close by Ken Calhoun"",""caption-linebreaks"":""Buy The Open, Sell The Close by Ken Calhoun
If fast-paced day trading is too hectic for your preference, and swing trading is too slow, then you may want to look at the strategy outlined in this month’s column.
This month’s strategy is a relatively simple one, in which you buy between 9:30 and 10:00 am, and sell between 3:30 and 4:00 pm ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-11-23-26-buy-the-open-sell-the-close-by-ken-calhoun-25.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-11-23-26-buy-the-open-sell-the-close-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-11-23-26-buy-the-open-sell-the-close-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov392madi1,d,"{""minimum-quantity"":""1"",""path"":""faarfr2013"",""ysw-page-title"":""Stocks & Commodities V. 39:11 (24–26): The MAD Indicator, Enhanced by John F. Ehlers"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-21840.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-11-24-26-the-mad-indicator-enhanced-by-john-f-ehlers-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-11-24-26-the-mad-indicator-enhanced-by-john-f-ehlers-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov392madi,d,"{""minimum-quantity"":""1"",""path"":""ch11n2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:11 (24–26): The MAD Indicator, Enhanced by John F. Ehlers"",""caption-linebreaks"":""The MAD Indicator, Enhanced by John F. Ehlers
Here, the MAD indicator introduced last month is made even better for technical traders. We’ll explain how the MADH is created and how you can put it to use.
Last month in my October 2021 article, “Cycle/Trend Analytics And The MAD Indicator,” I introduced the MAD indicator as a “thinking man’s” MACD. I shared this indicator that I developed because I found it to be robust yet elegant in its simplicity ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18145.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-11-24-26-the-mad-indicator-enhanced-by-john-f-ehlers-7.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-11-24-26-the-mad-indicator-enhanced-by-john-f-ehlers-8.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov392cowi,d,"{""minimum-quantity"":""1"",""path"":""ch11n2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:11 (28–36): A Conversation With Stan Weinstein by Leslie N. Masonson"",""caption-linebreaks"":""A Conversation With Stan Weinstein by Leslie N. Masonson
Stan Weinstein has enjoyed a 50+ year career in the markets. He published The Professional Tape Reader (PTR) newsletter from 1972–2000. He has published Global Trend Alert (GTA) for institutional-focused clients from 1990 through the present. In the late 1970s he began appearing frequently on PBS’s “Wall $treet Week With Louis Rukeyser” TV show and also became a frequent guest of Paul Kangas on PBS’s “Nightly Business Report.”
His 1988 bestselling book Secrets For Profiting In Bull And Bear Markets became a classic on technical analysis and includes the stage analysis concept he developed, which became a staple for technicians and market analysts.
Stocks & Commodities Contributing Writer Leslie Masonson interviewed him to ask about his two financial newsletters, his stage analysis concept, and to glean some market wisdoms from his long investing career."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18148.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-11-28-36-a-conversation-with-stan-weinstein-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-11-28-36-a-conversation-with-stan-weinstein-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov393fufo,d,"{""minimum-quantity"":""1"",""path"":""ch11n2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:11 (38–39): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
WHAT IS A GAMMA SQUEEZE AND IS IT POSSIBLE IN COMMODITIES?
Prior to 2021, the concept of option gamma and the potential of a “gamma squeeze” wasn’t on the radar of the average retail speculator ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18163.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-11-38-39-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-11-38-39-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov394reve,d,"{""minimum-quantity"":""1"",""path"":""ch11n2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:11 (40–47): Review: VectorVest 7 Premium Part 1 by Leslie N. Masonson"",""caption-linebreaks"":""Review: VectorVest 7 Premium Part 1 by Leslie N. Masonson
VECTORVEST, INC.
\n20472 Chartwell Center Dr. Cornelius, NC 28031
\nPhone: 888 658-7638
\nInternet: www.vectorvest.com
\nSystem requirements: Microsoft Windows 10 with high-speed inter-net. Mac Users: Cloud-based Parallels Client provided by VectorVest.
\nPricing plans: $69/mo. for “Basic” end-of-day service; $99/mo. for “Enhanced” streaming 15-minute delay; $149/mo. for “Premium” real-time version.
Trading stocks has never been easier, more fun, or more affordable ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18154.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-11-40-47-review-vectorvest-7-premium-part-1-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-11-40-47-review-vectorvest-7-premium-part-1-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov394trti9,d,"{""minimum-quantity"":""1"",""path"":""ch11n2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:11 (48–54): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is John Ehlers' article in this issue “The MADH: The MAD Indicator, Enhanced.” Here, we present the November 2021 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18157.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-11-48-54-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-11-48-54-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov395mara1,d,"{""minimum-quantity"":""1"",""path"":""ch11n2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:11 (56): Market Rap by Emilio Tomasini"",""caption-linebreaks"":""Market Rap by Emilio Tomasini
WHAT IS “GOOD TRADING”?
What is important in trading? I’d suggest it’s staying true to yourself and to your principles, just as with any other pursuit in life. This, in the end, is more important than any trading technique, strategy, or formula ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19890.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-11-56-market-rap-by-emilio-tomasini-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-11-56-market-rap-by-emilio-tomasini-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39639ex,d,"{""minimum-quantity"":""1"",""path"":""ch11n2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:11 (6–7, 39): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
IT’S YOUR CALL: DECIDING WHICH STRIKE PRICE TO BUY
I am brand new to options trading. I want to buy call options, but I am unsure which strike price to buy, in-the-money, at-the-money, or out-of-the-money. Is there a way to tell which one is best?
Buying a call option gives you the potential to profit from an increase in the price of a given underlying security ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-11-6-65533-7-39-explore-your-options-by-jay-kaeppel-22.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-11-6-8211-7-39-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-11-6-8211-7-39-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov396trpe7,d,"{""minimum-quantity"":""1"",""path"":""ch11n2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:11 (60–62): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
SYMPATHY PLAYS: A FRESH APPROACH WITH AN EDGE
Most market participants are familiar with correlations and how groups of stocks will move in unison. Often with significant market moves, most stocks move directionally with the overall market. You may have heard the saying “a market correlation of one,” which has been emphasized in certain seasons more than others ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19893.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-11-60-62-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-11-60-62-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov398chbr,d,"{""minimum-quantity"":""1"",""path"":""ch11n2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:11 (8–16): Charting Breakouts With Convertible Point & Figure Charts by Tushar S. Chande, PhD"",""caption-linebreaks"":""Charting Breakouts With Convertible Point & Figure Charts by Tushar S. Chande, PhD
Here, we introduce a charting technique that builds on the classic point & figure charting style and updates it to put the time dimension into play.
Traditional point & figure charts, which use the letters “X” and “O” to denote uptrends and downtrends, are time-independent charts because they plot changes in price movement without a time axis. This “timelessness” is both a strength and a weakness ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19917.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-11-8-16-charting-breakouts-with-convertible-point-figure-charts-by-tushar-s-chande-phd-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-11-8-16-charting-breakouts-with-convertible-point-figure-charts-by-tushar-s-chande-phd-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov391dmim1,d,"{""minimum-quantity"":""1"",""path"":""faarfr2013"",""ysw-page-title"":""Stocks & Commodities V. 39:12 (16–18): The DMH: An Improved Directional Movement Indicator by John F. Ehlers"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-21841.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-12-16-18-the-dmh-an-improved-directional-movement-indicator-by-john-f-ehlers-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-12-16-18-the-dmh-an-improved-directional-movement-indicator-by-john-f-ehlers-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov391dmim,d,"{""minimum-quantity"":""1"",""path"":""ch12d2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:12 (16–18): The DMH: An Improved Directional Movement Indicator by John F. Ehlers"",""caption-linebreaks"":""The DMH: An Improved Directional Movement Indicator by John F. Ehlers
The directional movement indicator originally developed by J. Welles Wilder has been a mainstay in technical analysis. It’s time to modernize it.
I hardly know where to start. Directional movement has been part of technical analysis for five decades, invented using pencil and paper for its calculations. Seriously! Check out the worksheets in J. Welles Wilder’s 1978 book, New Concepts In Technical Trading Systems ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19997.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-12-16-18-the-dmh-an-improved-directional-movement-indicator-by-john-f-ehlers-7.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-12-16-18-the-dmh-an-improved-directional-movement-indicator-by-john-f-ehlers-8.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov391alqa3,d,"{""minimum-quantity"":""1"",""path"":""ch12d2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:12 (19): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
DEVELOPING STRATEGIES
What are some principles to keep in mind when developing strategies?
Great question! This question can really be answered in two ways: best practices to follow, and bad habits to avoid ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20003.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-12-19-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-12-19-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov392nare,d,"{""minimum-quantity"":""1"",""path"":""ch12d2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:12 (20–27): Natural Resource ETFs by Leslie N. Masonson"",""caption-linebreaks"":""Natural Resource ETFs by Leslie N. Masonson
Natural resource ETFs underperformed the S&P 500 over the past one and three years, but since the March 23, 2020 low, most of these ETFs have finally outpaced that index. With worldwide demand increasing for water, energy, oil and gas, timber, and other resources, investors taking a small position in this sector could take advantage of possible capital appreciation while receiving above-average dividends.
Natural resources are materials or substances such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20009.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-12-20-27-natural-resource-etfs-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-12-20-27-natural-resource-etfs-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov392eare,d,"{""minimum-quantity"":""1"",""path"":""ch12d2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:12 (28–32): An Easy Recipe To Beat Buy & Hold by Massoud Metghalchi, PhD"",""caption-linebreaks"":""An Easy Recipe To Beat Buy & Hold by Massoud Metghalchi, PhD
It’s not always easy to beat buy & hold on a consistent basis, particularly without the use of complex and involved strategies. But it is possible, as this study suggests. Here are some easy strategies that could beat buy & hold. They work by incorporating some technical trading yet they are not overly complicated.
Is it possible to beat buy & hold using the basic principles of diversification and technical trading? Naturally, this is what we as traders always pursue and it is a question that I and others have studied academically for years ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19976.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-12-28-32-an-easy-recipe-to-beat-buy-hold-by-massoud-metghalchi-phd-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-12-28-32-an-easy-recipe-to-beat-buy-hold-by-massoud-metghalchi-phd-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39335ma,d,"{""minimum-quantity"":""1"",""path"":""ch12d2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:12 (33, 35): Market Rap by Emilio Tomasini"",""caption-linebreaks"":""Market Rap by Emilio Tomasini
A MARKETPLACE OF CONFUSION
Confusión de confusiones is a book written in 1688 in Amsterdam by Don Ioseph de la Vega. In the book, three fictional characters—a philosopher, a trader, and a stockholder—discuss the tricky dynamics of the psychological aberrations that define the movement of prices on a stock exchange ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19982.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-12-33-35-market-rap-by-emilio-tomasini-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-12-33-35-market-rap-by-emilio-tomasini-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov393fufo1,d,"{""minimum-quantity"":""1"",""path"":""ch12d2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:12 (34–35): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
A LOOK AT IMPLIED VOLATILITY
What is implied volatility and how does it impact option market behavior?
Implied volatility is the term used to describe the premium that options traders build into option prices to account for expectations of future volatility ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19985.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-12-34-35-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-12-34-35-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39349ex,d,"{""minimum-quantity"":""1"",""path"":""ch12d2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:12 (36–37, 49): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
BULL CALL SPREAD VS. BULL PUT SPREAD
I have trouble deciding between using a bull call spread versus a bull put spread. I like the higher probability of a bull put spread but also like the greater upside potential with a bull call spread. Any suggestions?
Books have been written about both strategies, and there are many factors that a trader might assess to try to choose which strategy is “best” in a given circumstance ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19988.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-12-36-37-49-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-12-36-37-49-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov393reve,d,"{""minimum-quantity"":""1"",""path"":""ch12d2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:12 (38–49): Review: VectorVest 7 Premium Part 2 by Leslie N. Masonson"",""caption-linebreaks"":""Review: VectorVest 7 Premium Part 2 by Leslie N. Masonson
VECTORVEST, INC.
\n20472 Chartwell Center Dr. Cornelius, NC 28031
\nPhone: 888-658-7638
\nInternet: www.vectorvest.com
\nSystem requirements: Microsoft Windows 10 with high-speed internet. Mac users: Cloud-based Parallels client provided by VectorVest.
\nPricing plans: $69/mo. for “Basic” end-of-day service; $99/mo. for “Enhanced” streaming 15-minute delay; $149/mo. for “Premium” real-time version.
Last month in part 1 of my review of VectorVest 7 Premium, I focused on two of the three most important questions for traders and investors ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-12-38-49-review-vectorvest-7-premium-part-2-by-leslie-n-masonson-25.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-12-38-49-review-vectorvest-7-premium-part-2-by-leslie-n-masonson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-12-38-49-review-vectorvest-7-premium-part-2-by-leslie-n-masonson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39562tr,d,"{""minimum-quantity"":""1"",""path"":""ch12d2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:12 (50–56, 62): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is John Ehlers' article in this issue “The DMH: An Improved Directional Movement Indicator.” Here, we present the December 2021 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18272.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-12-50-56-62-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-12-50-56-62-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39618da,d,"{""minimum-quantity"":""1"",""path"":""ch12d2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:12 (6, 18): Daytrading Bitcoin ETFs by Ken Calhoun"",""caption-linebreaks"":""Daytrading Bitcoin ETFs by Ken Calhoun
In this month’s column you will discover new tips for daytrading these popular instruments with unique technical trading signals.
When it comes to daytrading volatile bitcoin ETFs, there are several unique strategies you should be aware of that are different ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18233.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-12-6-18-daytrading-bitcoin-etfs-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-12-6-18-daytrading-bitcoin-etfs-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov396trpe8,d,"{""minimum-quantity"":""1"",""path"":""ch12d2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:12 (60–61): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
UTILIZING MONEY FLOW & RANDOMNESS WITH HIGH-PROBABILITY LISTS
Over the past year in this column, I have shared ways of curating high-probability trading lists using seasonality, predictors such as the VIX, USD, and TLT, and by harvesting expectations after indicators and signals ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18278.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-12-60-61-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-12-60-61-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov398hogr,d,"{""minimum-quantity"":""1"",""path"":""ch12d2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:12 (8–14): The Holy Grail Is Not for Sale by Dan Valcu, CFTe"",""caption-linebreaks"":""The Holy Grail Is Not for Sale by Dan Valcu, CFTe
If you use a trading system or are connected with system design—such as a system developer, a vendor, or are looking to purchase a system—you will want to read this. Here, we introduce how to apply forensic analysis to algorithmic trading systems. It may shed light into your trading system returns—or into the reported returns from a system you are considering using—in a bold new way.
Forensic analysis methods to detect fraudulent financial transactions can be used to flag potential inaccuracies that may occur, voluntarily or not, in algorithmic trading system design ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19991.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-12-8-14-the-holy-grail-is-not-for-sale-by-dan-valcu-cfte-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-12-8-14-the-holy-grail-is-not-for-sale-by-dan-valcu-cfte-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov391tupo,d,"{""minimum-quantity"":""1"",""path"":""ch13bis209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:13 (12–14): The Turning Points by Ketan Asher"",""caption-linebreaks"":""The Turning Points by Ketan Asher
Resistance & support levels can suggest turning points for price. Here, we offer a simple model, inspired by the work of W.D. Gann, for projecting market turning points.
Every trader and investor pursues ways that they can seize profitable opportunities to fulfill the goal to “buy low and sell high.” Everyone looks for methods that work for them ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19401.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-13-12-14-the-turning-points-by-ketan-asher-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-13-12-14-the-turning-points-by-ketan-asher-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov391tean,d,"{""minimum-quantity"":""1"",""path"":""ch13bis209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:13 (16–18): Technical Analysis Or Efficient Markets? by Massoud Metghalchi, PhD"",""caption-linebreaks"":""Technical Analysis Or Efficient Markets? by Massoud Metghalchi, PhD
What is being said today about this long-ranging debate? Here’s some brief history on it plus a data-based study of a market pattern that lends weight to the debate.
As most readers of this magazine well know, technical analysis is a method of evaluating security prices by analyzing statistics generated by market activities, such as volume, open interest, past prices, and various indicators that are based on price and volume ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19535.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-13-16-18-technical-analysis-or-efficient-markets-by-massoud-metghalchi-phd-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-13-16-18-technical-analysis-or-efficient-markets-by-massoud-metghalchi-phd-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39218ec,d,"{""minimum-quantity"":""1"",""path"":""ch13bis209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:13 (20–23): The 18 ½-Year Economic Cycle by Ronald McEwan"",""caption-linebreaks"":""The 18 ½-Year Economic Cycle by Ronald McEwan
Some believe that W.D. Gann was able to make accurate economic predictions based on the 18 ½-year lunar cycle. Here is a look at this concept, with a study that plots lunar cycles against the stock market.
Among the copious amounts of research published by W.D. Gann during his time as one of the all-time great market technicians was a chart of his predictions for the years (periods) various economic conditions would predominate ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-13-20-23-the-18-year-economic-cycle-by-ronald-mcewan-25.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-13-20-23-the-18-year-economic-cycle-by-ronald-mcewan-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-13-20-23-the-18-year-economic-cycle-by-ronald-mcewan-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov392mase,d,"{""minimum-quantity"":""1"",""path"":""ch13bis209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:13 (24–28): Making Sense Of A Schizophrenic Market by Matt Blackman"",""caption-linebreaks"":""Making Sense Of A Schizophrenic Market by Matt Blackman
There are key differences between a bubble and a bull market. The challenge is recognizing the difference.
For most of us, 2020 will go down as the strangest year ever. We were hit with the most serious pandemic in 100 years, and in addition, arguably the most contentious and nasty political campaigns came to a head and US democracy was tested like never before in recent history ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19538.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-13-24-28-making-sense-of-a-schizophrenic-market-by-matt-blackman-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-13-24-28-making-sense-of-a-schizophrenic-market-by-matt-blackman-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39320re,d,"{""minimum-quantity"":""1"",""path"":""ch13bis209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:13 (30–38): 2021 Readers’ Choice Awards by Technical Analysis, Inc."",""caption-linebreaks"":""2021 Readers’ Choice Awards by Technical Analysis, Inc.
We are pleased to present the Technical Analysis of STOCKS & COMMODITIES magazine 2021 Readers’ Choice Awards (RCA). Each year, we put before our readers a ballot of products and services related to technical analysis and trading. The following pages present the products and services you and your peers chose this year as your favorites.
The Readers’ Choice Awards begins each year with a list of products gathered by the editors of STOCKS & COMMODITIES, with space for write-in votes (given that our list doesn’t claim to be complete). Then, to find out what our readers find to be the most useful for their trading, we ask them to choose their favorite products or the ones they find most useful from various categories by going to our website, Traders.com, and filling out the survey there ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17575.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-13-30-38-2021-readers-choice-awards-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-13-30-38-2021-readers-choice-awards-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39320sc,d,"{""minimum-quantity"":""1"",""path"":""ch13bis209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:13 (39–42): 2020 S&C Articles by Technical Analysis, Inc."",""caption-linebreaks"":""2020 S&C Articles by Technical Analysis, Inc.
If you weren’t subscribing to Technical Analysis of STOCKS & COMMODITIES, The Traders’ Magazine, throughout 2020, you missed out on a lot of information. Here is some of what you missed ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17811.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-13-39-42-2020-s-c-articles-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-13-39-42-2020-s-c-articles-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov3944220,d,"{""minimum-quantity"":""1"",""path"":""ch13bis209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:13 (43–44, 42): 2020 Traders.com Advantage Articles by Technical Analysis, Inc."",""caption-linebreaks"":""2020 Traders.com Advantage Articles by Technical Analysis, Inc.
Here is a sample of the articles you missed in 2020 if you weren’t a subscriber ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17569.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-13-43-44-42-2020-traders-com-advantage-articles-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-13-43-44-42-2020-traders-com-advantage-articles-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39619us1,d,"{""minimum-quantity"":""1"",""path"":""faarfr2013"",""ysw-page-title"":""Stocks & Commodities V. 39:13 (6–11, 19): Using Bollinger Bands For Better Technical Analysis by André Salmerón"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-21842.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-13-6-11-19-using-bollinger-bands-for-better-technical-analysis-by-andr-salmer-n-7.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-13-6-11-19-using-bollinger-bands-for-better-technical-analysis-by-andr-salmer-n-8.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov39619us,d,"{""minimum-quantity"":""1"",""path"":""ch13bis209"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 39:13 (6–11, 19): Using Bollinger Bands For Better Technical Analysis by André Salmerón"",""caption-linebreaks"":""Using Bollinger Bands For Better Technical Analysis by André Salmerón
Harness the power of John Bollinger’s work in ways you may not currently be taking advantage of.
Technical analysis is like a magnifying glass. But if you think this metaphor is going the usual way, think again. It is my firm belief that we should not use technical analysis to magnify market information, but rather to concentrate it on a single, miniscule point—much like a scout would use it to concentrate the light from the sun and start a fire ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19541.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-13-6-11-19-using-bollinger-bands-for-better-technical-analysis-by-andr-salmer-n-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-39-13-6-11-19-using-bollinger-bands-for-better-technical-analysis-by-andr-salmer-n-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40128wh,d,"{""minimum-quantity"":""1"",""path"":""ch1j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:01 (14–20, 28): Why Volatility Matters by Mike B. Siroky, MD"",""caption-linebreaks"":""Why Volatility Matters by Mike B. Siroky, MD
Does high volatility translate to big profits, or only to increased risk that in the end lowers profits? Here’s a careful look.
What is volatility and why does it matter?
In a freely traded market, all assets demonstrate volatility, which is simply the variability in price over any given time period ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17509.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-01-14-20-28-why-volatility-matters-by-mike-b-siroky-md-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-01-14-20-28-why-volatility-matters-by-mike-b-siroky-md-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40262fu,d,"{""minimum-quantity"":""1"",""path"":""ch1j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:01 (21, 62): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
HEDGING OPTIONS WITH FUTURES
Can traders use mini and micro futures to hedge options and vice versa?
Perhaps the best products ever listed on the CME Group are of the mini and micro variety ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17491.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-01-21-62-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-01-21-62-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov402rest,d,"{""minimum-quantity"":""1"",""path"":""ch1j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:01 (22–25): Relative Strength Moving Averages Part 1 by Vitali Apirine"",""caption-linebreaks"":""Relative Strength Moving Averages Part 1 by Vitali Apirine
You can use calculations of the relative strength of price, volume, and volatility to filter price movement and help define turning points. In this three-part series, we’ll examine three applications of relative strength: the relative strength exponential moving average, the relative strength volume-adjusted exponential moving average, and the relative strength volatility-adjusted exponential moving average. Here in part 1, we’ll start with the relative strength exponential moving average.
In this article series, I will introduce three indicators you can use that are moving averages based on relative strength ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17494.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-01-22-25-relative-strength-moving-averages-part-1-by-vitali-apirine-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-01-22-25-relative-strength-moving-averages-part-1-by-vitali-apirine-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov402yani,d,"{""minimum-quantity"":""1"",""path"":""ch1j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:01 (26–28): (Yet Another) Improved RSI by John F. Ehlers"",""caption-linebreaks"":""(Yet Another) Improved RSI by John F. Ehlers
Over the years there have been many looks at this ven-erable, longstanding tool of technical analysis. Here, we introduce an improvement to the RSI that brings this indicator into the age of algorithmic trading. This improved RSI takes advantage of the Hann windowing technique described in an article earlier this year.
When I started trading, I questioned why 14 days were used in the calculation of the RSI. My broker said, “Because Welles Wilder said so.” Well, that response was certainly unsatisfying to this engineer ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17497.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-01-26-28-yet-another-improved-rsi-by-john-f-ehlers-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-01-26-28-yet-another-improved-rsi-by-john-f-ehlers-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov402mara,d,"{""minimum-quantity"":""1"",""path"":""ch1j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:01 (29): Market Rap by Emilio Tomasini"",""caption-linebreaks"":""Market Rap by Emilio Tomasini
THE BUSINESS OF TRADING
In the trading business, we are all obsessed with returns. The first thing you wonder when you meet a fellow trader is how much he made in the last year and overall ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17500.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-01-29-market-rap-by-emilio-tomasini-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-01-29-market-rap-by-emilio-tomasini-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40334us,d,"{""minimum-quantity"":""1"",""path"":""ch1j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:01 (30–31, 34): Using Parallel Midzone Resistance by Azeez Mustapha"",""caption-linebreaks"":""Using Parallel Midzone Resistance by Azeez Mustapha
Plotting a parallel channel on a chart helps the trader to see entry and exit opportunities and helps to reveal consolidation and reversals within an ongoing trend. Plotting the parallel midzone helps uncover additional opportunities. Find out how you can apply and interpret this technique.
The market moves in a specific order. Hence, certain tools exist to aid the trader with entry and exit. Many times, the market makes patterns that are difficult for two trendlines to enclose, so that a distinct channel can’t be discerned ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19339.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-01-30-31-34-using-parallel-midzone-resistance-by-azeez-mustapha-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-01-30-31-34-using-parallel-midzone-resistance-by-azeez-mustapha-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40345ra,d,"{""minimum-quantity"":""1"",""path"":""ch1j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:01 (35, 45): Range-Based Day Trading by Ken Calhoun"",""caption-linebreaks"":""Range-Based Day Trading by Ken Calhoun
Whenever you are looking for technical signals to help you day trade, one of the most important things to keep in mind is the prior day’s range.
It is very important to understand when to enter and when to exit based on price elasticity, and using typical ranges accomplishes that ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19342.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-01-35-45-range-based-day-trading-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-01-35-45-range-based-day-trading-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40362le,d,"{""minimum-quantity"":""1"",""path"":""ch1j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:01 (36–43, 62): Leveraged And Inverse ETFs by Leslie N. Masonson"",""caption-linebreaks"":""Leveraged And Inverse ETFs by Leslie N. Masonson
Investors and traders looking for market-beating returns might consider placing a small portion of their assets in leveraged ETFs, especially in trending markets. Typically, it’s recommended to hold a leveraged ETF for only one day, due to its daily reset and possible negative compounding if it declines. But does that advice always hold true? Multiyear returns for 3X bullish leveraged ETFs have been exceptional since 2010. Here, we’ll take a look.
Leveraged exchange-traded funds and inverse exchange-traded funds (ETFs) are types of funds that came on the scene in 2006 ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19345.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-01-36-43-62-leveraged-and-inverse-etfs-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-01-36-43-62-leveraged-and-inverse-etfs-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov404alqa,d,"{""minimum-quantity"":""1"",""path"":""ch1j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:01 (44–45): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
STRATEGY CORRELATION AND MARKET CORRELATION: A LOOK AT SEEKING DIVERSIFICATION
I have a live portfolio that is doing well but is all concentrated in stock index futures. Should I be worried about correlation?
The short answer is “yes.” When all your eggs are in one basket, your results might be terrific—until the basket tips over or gets a hole in it ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19348.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-01-44-45-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-01-44-45-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov404usup,d,"{""minimum-quantity"":""1"",""path"":""ch1j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:01 (46–47): Using Upside-Down Charts by Stella Osoba, CMT"",""caption-linebreaks"":""Using Upside-Down Charts by Stella Osoba, CMT
Sometimes, to improve clarity, it pays to flip a chart upside down and study it that way for a while.
Boeing (BA), the aerospace firm with a market capitalization of around $180 billion, has been in the news the last few years for mostly all the wrong reasons ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19318.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-01-46-47-using-upside-down-charts-by-stella-osoba-cmt-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-01-46-47-using-upside-down-charts-by-stella-osoba-cmt-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov404bofo,d,"{""minimum-quantity"":""1"",""path"":""ch1j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:01 (48): Books For Traders by Technical Analysis, Inc."",""caption-linebreaks"":""Books For Traders by Technical Analysis, Inc.
The following selection of book descriptions represents a sampling of recent book releases in the investing field. Books described here may be from some of the major book publishers as well as some independent book publishers. These are not critical reviews or editorial evaluations, but rather a brief look at the book marketplace to help keep readers up to date on new or recent book offerings.
Included this month:
Day Trading The Dow Mini: A Practical Guide For Market Participation, third edition by Brad E. Stych, PhD, CMT
Stock Trader’s Almanac 2022, 55th edition by Jeffrey A. Hirsch
The World’s Simplest Stock Picking Strategy by Edward W. Ryan
Risk Parity: How To Invest For All Market Environments by Alex Shahidi, CFA, CFP"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19321.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-01-48-books-for-traders-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-01-48-books-for-traders-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov405trti,d,"{""minimum-quantity"":""1"",""path"":""ch1j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:01 (50–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is John Ehlers’ article in this issue “(Yet Another) Improved RSI.” Here, we present the January 2022 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19324.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-01-50-56-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-01-50-56-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov406trpe,d,"{""minimum-quantity"":""1"",""path"":""ch1j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:01 (60–62): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
PROBABILITIES & PATTERNS
Among technicians, the candlestick patterns that are the most widely followed may contain nine neutral candles, eight one-candle patterns, ten two-candle patterns, and fourteen three-candle patterns ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19327.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-01-60-62-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-01-60-62-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40612ex,d,"{""minimum-quantity"":""1"",""path"":""ch1j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:01 (6–7, 12): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
BULL PUT SPREADS: A LOOK AT TIMING
I’ve examined the results of my timing method and found that it is so-so at picking great buying opportunities. At the same time, the signals are rarely followed by meaningful declines in price. Is there a way to use such a strategy to make money?
The bull put spread sounds like a good candidate to use with your timing method ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-01-6-7-12-explore-your-options-by-jay-kaeppel-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-01-6-7-12-explore-your-options-by-jay-kaeppel-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-01-6-7-12-explore-your-options-by-jay-kaeppel-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov408trmo,d,"{""minimum-quantity"":""1"",""path"":""ch1j2013"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:01 (8–12): Trading A Moving Average System: Important Choices by Perry J. Kaufman"",""caption-linebreaks"":""Trading A Moving Average System: Important Choices by Perry J. Kaufman
Most traders have used moving average-based trading systems to derive trading signals. But how you define the signal can greatly affect the outcome. Here’s a study to help determine the best ways to apply a moving average system.
I am sure that there is no need to explain a moving average to any of you. But there are choices as to how they are interpreted and executed ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17506.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-01-8-12-trading-a-moving-average-system-important-choices-by-perry-j-kaufman-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-01-8-12-trading-a-moving-average-system-important-choices-by-perry-j-kaufman-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov401rest,d,"{""minimum-quantity"":""1"",""path"":""ch2f2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:02 (14–18): Relative Strength Moving Averages Part 2 by Vitali Apirine"",""caption-linebreaks"":""Relative Strength Moving Averages Part 2 by Vitali Apirine
You can use calculations of the relative strength of price, volume, and volatility to filter price movement and help define turning points. In this three-part series, we are examining three applications of relative strength: the relative strength exponential moving average, the relative strength volume-adjusted exponential moving average, and the relative strength volatility-adjusted exponential moving average. Here in part 2, we explore the relative strength volume-adjusted exponential moving average.
In this article series, I am introducing three indicators you can use that are moving averages based on relative strength ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20229.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-02-14-18-relative-strength-moving-averages-part-2-by-vitali-apirine-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-02-14-18-relative-strength-moving-averages-part-2-by-vitali-apirine-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40123da,d,"{""minimum-quantity"":""1"",""path"":""ch2f2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:02 (19, 23): Daytrading ETF Gap Reversals by Ken Calhoun"",""caption-linebreaks"":""Daytrading ETF Gap Reversals by Ken Calhoun
Here’s a gap-reversal pattern to watch for, especially in leveraged ETFs.
On days following extended selloffs, price may often gap down ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20226.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-02-19-23-daytrading-etf-gap-reversals-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-02-19-23-daytrading-etf-gap-reversals-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov402infi,d,"{""minimum-quantity"":""1"",""path"":""ch2f2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:02 (20–23): Inverse Fisher Transform Redux by John F. Ehlers"",""caption-linebreaks"":""Inverse Fisher Transform Redux by John F. Ehlers
Swing traders will welcome the improved timing capabil-ity of the indicator presented here, named the “elegant oscillator.” It uses the inverse Fisher transform to help you spot reversion-to-the-mean opportunities.
I introduced technical traders to the use of the Fisher transform and the inverse Fisher transform almost 20 years ago (see my S&C articles “Using The Fisher Transform,” October 2002 and “The Inverse Fisher Transform,” May 2004) ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18530.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-02-20-23-inverse-fisher-transform-redux-by-john-f-ehlers-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-02-20-23-inverse-fisher-transform-redux-by-john-f-ehlers-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov402usle,d,"{""minimum-quantity"":""1"",""path"":""ch2f2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:02 (24–28): Using LEAPS In The Dogs Of The Dow Strategy by John Devcic"",""caption-linebreaks"":""Using LEAPS In The Dogs Of The Dow Strategy by John Devcic
The Dogs of the Dow is a simple, well-known strategy that picks stocks based on yield and trades once a year. Here’s a twist on the strategy that buys call options on the strategy’s stock picks. Find out how you can implement this approach and how it performed last year.
The Dogs of the Dow and its offshoot, the Puppies of the Dow, are strategies that have done well consistently over the years. Both strategies are easy to understand and trade; regardless of an investor’s knowledge level ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18527.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-02-24-28-using-leaps-in-the-dogs-of-the-dow-strategy-by-john-devcic-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-02-24-28-using-leaps-in-the-dogs-of-the-dow-strategy-by-john-devcic-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40249ma,d,"{""minimum-quantity"":""1"",""path"":""ch2f2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:02 (29, 49): Market Rap by Emilio Tomasini"",""caption-linebreaks"":""Market Rap by Emilio Tomasini
A MULTI-SYSTEM, MULTI-MARKET APPROACH IN SYSTEMS TRADING? YES, BUT DON’T BE TOO DILIGENT
In systems trading, it is often said that using a multi-system, multi-market approach will increase your chances of success. That is, you should test multiple systems across multiple assets, asset classes, or markets to find systems that will work across assets ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18524.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-02-29-49-market-rap-by-emilio-tomasini-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-02-29-49-market-rap-by-emilio-tomasini-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov403alqa,d,"{""minimum-quantity"":""1"",""path"":""ch2f2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:02 (30–31): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
INTRADAY ALGO TRADING
I have had success algo trading on a long-term trend-following basis. But I’d like to algo trade intraday instead. Any suggestions?
I get this question quite often. Most everyone, it seems, wants to have algo strategies that trade intraday, exiting before the close of each session ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18521.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-02-30-31-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-02-30-31-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40343in,d,"{""minimum-quantity"":""1"",""path"":""ch2f2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:02 (34–41, 43): Interview: A Conversation With Tom Dorsey by Leslie N. Masonson"",""caption-linebreaks"":""Interview: A Conversation With Tom Dorsey by Leslie N. Masonson
When point & figure charting (PnF) is mentioned in investment circles, Tom Dorsey’s name instantly comes up. Interestingly, he first was introduced to PnF charts by a co-worker ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18497.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-02-34-41-43-interview-a-conversation-with-tom-dorsey-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-02-34-41-43-interview-a-conversation-with-tom-dorsey-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov404fufo,d,"{""minimum-quantity"":""1"",""path"":""ch2f2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:02 (42–43): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
TREASURY YIELD FUTURES
What are Treasury yield futures and how can they be used to speculate on interest rates?
Traditional Treasury futures contracts provide excellent liquidity and efficiency for those looking to speculate or hedge changes in interest rates ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18494.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-02-42-43-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-02-42-43-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40449mo,d,"{""minimum-quantity"":""1"",""path"":""ch2f2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:02 (44–45, 49): A More Precise Cumulative Volume Indicator? by Nolan McNamara"",""caption-linebreaks"":""A More Precise Cumulative Volume Indicator? by Nolan McNamara
Introducing a new volume indicator to measure volume momentum.
While developing a momentum trading strategy with plans to monitor both price and quantity of transactions, or volume, finding an indicator to measure price momentum was easy, but it has been a challenge finding something similar for volume ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18491.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-02-44-45-49-a-more-precise-cumulative-volume-indicator-by-nolan-mcnamara-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-02-44-45-49-a-more-precise-cumulative-volume-indicator-by-nolan-mcnamara-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov404moan,d,"{""minimum-quantity"":""1"",""path"":""ch2f2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:02 (46–48): Momentum And Seasonality: What Can We Learn From Nearly 100 Years Of Historical Data? by Jerry Zhao"",""caption-linebreaks"":""Momentum And Seasonality: What Can We Learn From Nearly 100 Years Of Historical Data? by Jerry Zhao
Many studies on seasonal tendencies of stocks have relied on a few decades’ worth of activity. What does a century of data show? Can we glean additional insights? Here’s a study that evaluates the performance of 12 industry groups over a period of over nine decades.
Finding the right stocks to buy at the right time is always the challenge for investors. Studies of market seasonality may offer some insights that can help with this challenge ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18488.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-02-46-48-momentum-and-seasonality-what-can-we-learn-from-nearly-100-years-of-historical-data-by-jerry-zhao-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-02-46-48-momentum-and-seasonality-what-can-we-learn-from-nearly-100-years-of-historical-data-by-jerry-zhao-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov405trti1,d,"{""minimum-quantity"":""1"",""path"":""ch2f2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:02 (50–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is John Ehlers’ article in this issue “An Elegant Oscillator: Inverse Fisher Transform Redux.” Here, we present the February 2022 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20262.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-02-50-56-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-02-50-56-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov406trpe1,d,"{""minimum-quantity"":""1"",""path"":""ch2f2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:02 (60–62): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
MATCH. APPROACH. POINT. GAME.
There are some elements in the business of trading that are similar to tennis. A good habit is to look outside of the trading industry and ask ourselves ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20256.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-02-60-62-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-02-60-62-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov406exyo,d,"{""minimum-quantity"":""1"",""path"":""ch2f2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:02 (6–7): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
MODIFIED BUTTERFLY SPREAD
I read about some less commonly used trading strategies and came across one called the modified butterfly spread. Can you tell me what is involved with this strategy and the potential risks and rewards?
The modified butterfly is a specialized strategy that can offer above-average returns for traders who use options to generate income ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20235.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-02-6-7-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-02-6-7-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40831mo,d,"{""minimum-quantity"":""1"",""path"":""ch2f2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:02 (8–12, 31): Momentum Trading Strategies Through The Academic Lens by Anatoly B. Schmidt, PhD"",""caption-linebreaks"":""Momentum Trading Strategies Through The Academic Lens by Anatoly B. Schmidt, PhD
Here’s a brief survey of the dominant approaches to momentum trading strategies, with a look at comparing performance of different types of momentum strategies versus buy-and-hold over different time periods.
Momentum trading belongs to the family of trend-following strategies with a long history that can be traced to the early 20th century ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20232.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-02-8-12-31-momentum-trading-strategies-through-the-academic-lens-by-anatoly-b-schmidt-phd-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-02-8-12-31-momentum-trading-strategies-through-the-academic-lens-by-anatoly-b-schmidt-phd-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40120al,d,"{""minimum-quantity"":""1"",""path"":""ch3m2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:03 (13, 20): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
APPROACHES TO BACKTESTING
I’ve been algo trading futures for about three years, and I hear conflicting info about backtesting. Can you share your thoughts?
Backtesting is a very important part of algo trading. Although there are a lot of variations on how to do it, there are really four primary ways to test a strategy ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20058.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-03-13-20-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-03-13-20-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov401lire,d,"{""minimum-quantity"":""1"",""path"":""ch3m2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:03 (14–20): Linear Regression Of Price And Time Part 3 by Mike B. Siroky, MD"",""caption-linebreaks"":""Linear Regression Of Price And Time Part 3 by Mike B. Siroky, MD
The relationship between individual security (or portfolio) performance and volatility is critical and is constantly changing over time. Here, we introduce a new measuring tool so you can monitor this changing relationship. It indicates when a given portfolio holding is exhibiting deteriorating risk-adjusted performance, which may suggest it as a potential candidate for sale.
In the 1950s Harry Markowitz at the University of Chicago introduced the concept of measuring risk-adjusted returns for investment portfolios ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20392.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-03-14-20-linear-regression-of-price-and-time-part-3-by-mike-b-siroky-md-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-03-14-20-linear-regression-of-price-and-time-part-3-by-mike-b-siroky-md-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40231ma,d,"{""minimum-quantity"":""1"",""path"":""ch3m2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:03 (21, 31): Market Rap by Emilio Tomasini"",""caption-linebreaks"":""Market Rap by Emilio Tomasini
CAN EVERYONE MAKE MONEY WITH A TRADING SYSTEM?
Nowadays, algorithmic system trading is booming. There’s a lot of talk about trading systems ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20055.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-03-21-31-market-rap-by-emilio-tomasini-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-03-21-31-market-rap-by-emilio-tomasini-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov402rest1,d,"{""minimum-quantity"":""1"",""path"":""ch3m2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:03 (22–29): Relative Strength Moving Averages Part 3 by Vitali Apirine"",""caption-linebreaks"":""Relative Strength Moving Averages Part 3 by Vitali Apirine
You can use calculations of the relative strength of price, volume, and volatility to filter price movement and help define turning points. In this three-part series, we are examining three applications of relative strength: the relative strength exponential moving average, the relative strength volume-adjusted exponential moving average, and the relative strength volatility-adjusted exponential moving average. Here in part 3, we explore the relative strength volatility-adjusted exponential moving average.
In this article series, I am introducing three indicators you can use that are moving averages based on relative strength. The three indicators are ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20380.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-03-22-29-relative-strength-moving-averages-part-3-by-vitali-apirine-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-03-22-29-relative-strength-moving-averages-part-3-by-vitali-apirine-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov402swtr,d,"{""minimum-quantity"":""1"",""path"":""ch3m2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:03 (28–29): Swing Trading $10 Ranges by Ken Calhoun"",""caption-linebreaks"":""Swing Trading $10 Ranges by Ken Calhoun
Traders often struggle with deciding how to enter and exit their positions. In this month’s column, you will see how to trade within $10 ranges.
The idea is simple enough: you enter above prices that are a multiple of $10/share and exit at the top ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20052.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-03-28-29-swing-trading-10-ranges-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-03-28-29-swing-trading-10-ranges-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov403fufo,d,"{""minimum-quantity"":""1"",""path"":""ch3m2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:03 (30–31): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
TRADING LEVERAGED FUTURES CONTRACTS
What is the best approach to trading lumber futures and options?
The simple answer is “The average speculator shouldn’t even think about participating in lumber futures or options.” There is a severe lack of liquidity that creates a nearly impossible arena for speculation ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18680.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-03-30-31-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-03-30-31-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov403cafa,d,"{""minimum-quantity"":""1"",""path"":""ch3m2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:03 (34–36): Catching The Falling Knife by Reza Javaheri"",""caption-linebreaks"":""Catching The Falling Knife by Reza Javaheri
Buying a market that is in freefall is often an intriguing idea. Do the wisdoms hold up surrounding the adage that you should never try to “catch a falling knife”? Here’s a case study for consideration.
Throughout the many active ways to engage the financial markets—whether it’s semi-regular rebalancing of a stock portfolio, or daytrading the so-called FAANG stocks, or swing-trading spot forex pairs—technical analysis mantras and sayings abound ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18338.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-03-34-36-catching-the-falling-knife-by-reza-javaheri-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-03-34-36-catching-the-falling-knife-by-reza-javaheri-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov403chfo,d,"{""minimum-quantity"":""1"",""path"":""ch3m2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:03 (38–41): A Channel-Based Forex Trading Strategy Guide by Azeez Mustapha"",""caption-linebreaks"":""A Channel-Based Forex Trading Strategy Guide by Azeez Mustapha
Here is a trading strategy you can consider adopting for forex trading or other markets, in addition to some smart guidelines for using this or any other trading strategy. This trading strategy requires only two color-differentiated channels on a chart, keeping it simple.
Maintaining a good trading discipline is regarded as a sure-fire way to succeed as a trader. To achieve this feat, you have to cultivate a habit of astute adherence to a set of rules, making trading an automatic experience ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18671.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-03-38-41-a-channel-based-forex-trading-strategy-guide-by-azeez-mustapha-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-03-38-41-a-channel-based-forex-trading-strategy-guide-by-azeez-mustapha-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov404inin,d,"{""minimum-quantity"":""1"",""path"":""ch3m2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:03 (42–49): Investing In DWA-Branded ETFs: A Market-Beating Experience? by Leslie N. Masonson"",""caption-linebreaks"":""Investing In DWA-Branded ETFs: A Market-Beating Experience? by Leslie N. Masonson
Rules-based relative strength investing is not new. Its goal is to outperform its benchmark or a well-known market index. Dorsey, Wright & Associates has provided to five ETF sponsors its point-and-figure methodology using relative strength ranking. How have these DWA-branded ETFs performed over the past decade and more recently? Find out in this review of the 28 ETFs in this category.
In the February 2022 issue of this magazine, I interviewed Tom Dorsey, the co-founder of Dorsey, Wright & Associates (DWA). I suggest reading that article first, if you haven’t yet, to provide background ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18332.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-03-42-49-investing-in-dwa-branded-etfs-a-market-beating-experience-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-03-42-49-investing-in-dwa-branded-etfs-a-market-beating-experience-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov405trti2,d,"{""minimum-quantity"":""1"",""path"":""ch3m2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:03 (50–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Vitali Apirine’s article in this issue “Relative Strength Moving Averages, Part 3.” Here, we present the March 2022 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18668.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-03-50-56-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-03-50-56-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov406trpe2,d,"{""minimum-quantity"":""1"",""path"":""ch3m2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:03 (60–62): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
UP, DOWN, OR SIDEWAYS
We entered 2022 on the back of stellar performances for most indexes. While a rising market lifts most stocks, it also creates significant anomalies in performance as well as in the fundamentals ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20061.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-03-60-62-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-03-60-62-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov406exyo1,d,"{""minimum-quantity"":""1"",""path"":""ch3m2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:03 (6–7): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
OPTIONS AND SEASONAL TRENDS
Is it possible to trade seasonal trends using options?
Absolutely. There are often different possibilities available in most situations. To illustrate, let’s consider the tendency for the silver market to show strength early in the new year ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18335.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-03-6-7-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-03-6-7-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov408inpa,d,"{""minimum-quantity"":""1"",""path"":""ch3m2015"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:03 (8–12): Intraday Patterns Of Price Change by Richard Poster, PhD"",""caption-linebreaks"":""Intraday Patterns Of Price Change by Richard Poster, PhD
Hourly patterns of volatility and trend formation are present in price change data. As a result of these hourly patterns, trade entry time has an important role in trade entry decisions.
Price charts have often been analyzed for the presence of monthly seasonal patterns, daily patterns, and also hourly patterns ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18677.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-03-8-12-intraday-patterns-of-price-change-by-richard-poster-phd-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-03-8-12-intraday-patterns-of-price-change-by-richard-poster-phd-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40125al,d,"{""minimum-quantity"":""1"",""path"":""ch4a2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:04 (17, 25): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
WALKFORWARD TESTING
I have heard some experts say walk-forward testing is required for algo trading, and others who say it is not. Can you resolve this?
In last month’s column, I discussed the primary ways to backtest an algo strategy and I gave my recommendation for the best approach—walkforward testing ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19835.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-04-17-25-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-04-17-25-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov401siru,d,"{""minimum-quantity"":""1"",""path"":""ch4a2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:04 (18–21): Simple Rules To Profit From Bear Markets by Jon Wolfenbarger, CFA"",""caption-linebreaks"":""Simple Rules To Profit From Bear Markets by Jon Wolfenbarger, CFA
You can improve your investment returns over time dramatically if you can make profits during a bear market period instead of just suffering losses.
The goal of most investors is to create wealth by generating high compounded returns over time. The primary obstacle to generating high compounded returns is bear markets, which cause negative returns ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-04-18-21-simple-rules-to-profit-from-bear-markets-by-jon-wolfenbarger-cfa-25.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-04-18-21-simple-rules-to-profit-from-bear-markets-by-jon-wolfenbarger-cfa-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-04-18-21-simple-rules-to-profit-from-bear-markets-by-jon-wolfenbarger-cfa-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov402howt,d,"{""minimum-quantity"":""1"",""path"":""ch4a2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:04 (22–25): How To Still Be Profitable While Being Wrong More Than Right In The Markets by Reza Javaheri"",""caption-linebreaks"":""How To Still Be Profitable While Being Wrong More Than Right In The Markets by Reza Javaheri
On the road toward profitability as a trader, both the frequency and size of your winning trades are important. But to what extent? You can use the “expected value” calculation for the trades in your account as a way of examining profitability. Find out how.
Among the crowds engaging the financial markets, some of us are active market participants—those who look past parking money in the S&P or some massive sector ETF—and instead look to enter and exit one or more markets at particular times ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18082.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-04-22-25-how-to-still-be-profitable-while-being-wrong-more-than-right-in-the-markets-by-reza-javaheri-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-04-22-25-how-to-still-be-profitable-while-being-wrong-more-than-right-in-the-markets-by-reza-javaheri-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40231be,d,"{""minimum-quantity"":""1"",""path"":""ch4a2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:04 (26–29, 31): Beating The Indexes Using Fundamental Analysis In Long-Term Trading by Zoltan Csesznik"",""caption-linebreaks"":""Beating The Indexes Using Fundamental Analysis In Long-Term Trading by Zoltan Csesznik
Is it possible to beat the market indexes and generate alpha returns by using fundamental analysis and company reports? Here’s a look.
Stock trading is a hot topic, isn’t it? Over the decades, technology has opened up a lot more possibilities for retail traders. For me these days, it feels like the early 2000s again, when I happened to be in New York City ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18088.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-04-26-29-31-beating-the-indexes-using-fundamental-analysis-in-long-term-trading-by-zoltan-csesznik-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-04-26-29-31-beating-the-indexes-using-fundamental-analysis-in-long-term-trading-by-zoltan-csesznik-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov403fufo1,d,"{""minimum-quantity"":""1"",""path"":""ch4a2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:04 (30–31): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
FED STIMULUS AND ASSET PRICES
Does government stimulus result in higher commodity prices?
Yes. The commodity rallies we have seen in 2021 and thus far in 2022 can largely be attributed to the combination of government cash injections into the economy to battle the economic impact of the Covid crisis, and social pressures calling for renewable energy ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18085.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-04-30-31-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-04-30-31-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40343pr,d,"{""minimum-quantity"":""1"",""path"":""ch4a2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:04 (32–34, 43): Profitable Daytrades With Candlestick Signals by Stephen W. Bigalow"",""caption-linebreaks"":""Profitable Daytrades With Candlestick Signals by Stephen W. Bigalow
Candlestick signals and patterns are as effective on a one-minute chart as on a monthly chart. Here’s a look at using candlestick signals to locate high-probability daytrade setups.
Candlestick signals make powerful tools for building daytrading strategies. The recurring nature of human sentiment creates opportunities in the market to find high-probability daytrade setups ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-04-32-34-43-profitable-daytrades-with-candlestick-signals-by-stephen-w-bigalow-25.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-04-32-34-43-profitable-daytrades-with-candlestick-signals-by-stephen-w-bigalow-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-04-32-34-43-profitable-daytrades-with-candlestick-signals-by-stephen-w-bigalow-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40343ma,d,"{""minimum-quantity"":""1"",""path"":""ch4a2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:04 (35, 43): Market Rap by Emilio Tomasini"",""caption-linebreaks"":""Market Rap by Emilio Tomasini
SOME PHILOSOPHICAL THOUGHTS ON OPTIMIZATION AND ITS ROLES
How many angels can dance on the head of a pin? This well-known rhetorical question suggests it is foolhardy to debate what can’t practically be answered ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-04-35-43-market-rap-by-emilio-tomasini-25.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-04-35-43-market-rap-by-emilio-tomasini-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-04-35-43-market-rap-by-emilio-tomasini-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40356co,d,"{""minimum-quantity"":""1"",""path"":""ch4a2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:04 (36–42, 56): A Conversation With Ric Edelman by Leslie N. Masonson"",""caption-linebreaks"":""A Conversation With Ric Edelman by Leslie N. Masonson
Ric Edelman founded the Digital Assets Council of Financial Professionals (DACFP) in 2018 to help financial advisors learn about the digital asset revolution encompassing blockchain, digital assets, and digital currencies. DACFP provides education, training, advice, and consulting to financial advisors and executives in the financial and crypto communities. Edelman created the first exponential technologies ETF and holds two patents for financial innovation ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-04-36-42-56-a-conversation-with-ric-edelman-by-leslie-n-masonson-25.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-04-36-42-56-a-conversation-with-ric-edelman-by-leslie-n-masonson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-04-36-42-56-a-conversation-with-ric-edelman-by-leslie-n-masonson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov404exyo,d,"{""minimum-quantity"":""1"",""path"":""ch4a2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:04 (44–45): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
OUT-OF-THE-MONEY BUTTERFLY SPREADS
I want to trade some of the bigger name stocks. However, many of them are extremely expensive per share. I also looked at buying call options, but even those are quite expensive. Is there a way to use options to make it more affordable to trade these stocks?
Absolutely. Of course, there are tradeoffs. When you buy shares of stock, you get point-for-point movement, that is, if the stock goes up to $50 a share, you make $50 a share and vice versa ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18100.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-04-44-45-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-04-44-45-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov404trti,d,"{""minimum-quantity"":""1"",""path"":""ch4a2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:04 (46–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Markos Katsanos’ article in this issue “Stock Market Seasonality.” Here, we present the April 2022 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19817.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-04-46-56-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-04-46-56-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov406trpe3,d,"{""minimum-quantity"":""1"",""path"":""ch4a2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:04 (60–62): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
THEMATIC TRADING FOR BASKETS & PAIRS
As market regimes change, traders should adapt to preserve their edges or find new ones ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19814.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-04-60-62-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-04-60-62-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov406dash,d,"{""minimum-quantity"":""1"",""path"":""ch4a2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:04 (6–7): Daytrading Shorts Using Two-Day Lows by Ken Calhoun"",""caption-linebreaks"":""Daytrading Shorts Using Two-Day Lows by Ken Calhoun
The strongest short setups occur when price action loses the prior day’s low.
When scanning, be on the lookout for stocks that ended the prior day near the intraday low, as seen in Figure 1 of Palantir Technologies (PLTR) ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19832.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-04-6-7-daytrading-shorts-using-two-day-lows-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-04-6-7-daytrading-shorts-using-two-day-lows-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov408stma,d,"{""minimum-quantity"":""1"",""path"":""ch4a2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:04 (8–16): Stock Market Seasonality by Markos Katsanos"",""caption-linebreaks"":""Stock Market Seasonality by Markos Katsanos
Should you sell in May, or later in the summer, or never? Is October the best reentry month? Which are the best and worst months for the stock market? And are there statistically significant seasonal patterns in the equity markets? Can we improve on a seasonal system using other technical conditions? Read on to find out.
\""Sell in May and go away, buy in October and stay sober” is one of the most well-known adages in the financial world and it is based on the theory that the stock market under-performs in the summer months ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-04-8-16-stock-market-seasonality-by-markos-katsanos-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-04-8-16-stock-market-seasonality-by-markos-katsanos-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-04-8-16-stock-market-seasonality-by-markos-katsanos-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40127fu,d,"{""minimum-quantity"":""1"",""path"":""ch5m2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:05 (17, 27): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
COMMODITY ETFS
With commodities booming, should I consider commodity ETFs?
For full disclosure, I make a living as a commodity futures and options broker ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17987.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-05-17-27-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-05-17-27-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov401etfp,d,"{""minimum-quantity"":""1"",""path"":""ch5m2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:05 (18–21): An ETF Portfolio Based On Minimizing Drawdown by Guy Brys, PhD, and Luc Van Hof"",""caption-linebreaks"":""An ETF Portfolio Based On Minimizing Drawdown by Guy Brys, PhD, and Luc Van Hof
A good risk management plan will deal effectively with the inevitable drawdowns that will occur. The results of this study point to a way you can improve an ETF portfolio and minimize drawdowns.
Exchange traded funds (ETFs) are one of the most important and valuable products created for individual investors in recent years ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17990.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-05-18-21-an-etf-portfolio-based-on-minimizing-drawdown-by-guy-brys-phd-and-luc-van-hof-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-05-18-21-an-etf-portfolio-based-on-minimizing-drawdown-by-guy-brys-phd-and-luc-van-hof-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov402chfo,d,"{""minimum-quantity"":""1"",""path"":""ch5m2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:05 (22–27): A Checklist For Successful Trading by Robert J. Van Eyden, PhD"",""caption-linebreaks"":""A Checklist For Successful Trading by Robert J. Van Eyden, PhD
Keeping a checklist can help you keep a handle on your trading day as well as your bottom line. Learn how you can boost your trading success and daily productivity with a checklist. Here is one to get you started.
High-performance teams consistently deliver in their significant areas, but they are made up of fallible humans ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17993.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-05-22-27-a-checklist-for-successful-trading-by-robert-j-van-eyden-phd-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-05-22-27-a-checklist-for-successful-trading-by-robert-j-van-eyden-phd-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40256sw,d,"{""minimum-quantity"":""1"",""path"":""ch5m2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:05 (28, 56): Swing Trading Uptrends With Wide Candles by Ken Calhoun"",""caption-linebreaks"":""Swing Trading Uptrends With Wide Candles by Ken Calhoun
Finding the best stocks and ETFs to swing trade can be quite challenging. In this month’s column, you’ll learn how to use a simple wide-candle approach to help you visually scan for strong breakouts.
The criteria for the wide-candle approach is easy to understand ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17996.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-05-28-56-swing-trading-uptrends-with-wide-candles-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-05-28-56-swing-trading-uptrends-with-wide-candles-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov402mara1,d,"{""minimum-quantity"":""1"",""path"":""ch5m2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:05 (29): Market Rap by Emilio Tomasini"",""caption-linebreaks"":""Market Rap by Emilio Tomasini
GAINING A VITAL EDGE IN STOCK SELECTION USING FUNDAMENTAL ANALYSIS
Are you ever skeptical about using fundamental analysis to evaluate a company or stock? Don’t worry ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17999.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-05-29-market-rap-by-emilio-tomasini-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-05-29-market-rap-by-emilio-tomasini-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov403cowi,d,"{""minimum-quantity"":""1"",""path"":""ch5m2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:05 (30–36): A Conversation With Jon Wolfenbarger by Karl Montevirgen"",""caption-linebreaks"":""A Conversation With Jon Wolfenbarger by Karl Montevirgen
Jon Wolfenbarger, CFA, has over 25 years of professional investment experience, including over two decades as a securities analyst at Allianz Global Investors ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18002.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-05-30-36-a-conversation-with-jon-wolfenbarger-by-karl-montevirgen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-05-30-36-a-conversation-with-jon-wolfenbarger-by-karl-montevirgen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov403amet,d,"{""minimum-quantity"":""1"",""path"":""ch5m2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:05 (38–45): Amplify ETFs by Leslie N. Masonson"",""caption-linebreaks"":""Amplify ETFs by Leslie N. Masonson
Investors and traders looking for thematic ETFs with unique portfolios may want to check out those offered by Amplify ETFs. From cannabis to batteries to black swans and more, these ETFs are focused on the future earnings growth of companies in disruptive and fast-growing segments of the economy.
Amplify Investments is the issuer of 15 diverse US ETFs assembled over eight years beginning in mid-2013 ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18005.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-05-38-45-amplify-etfs-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-05-38-45-amplify-etfs-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40455ti,d,"{""minimum-quantity"":""1"",""path"":""ch5m2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:05 (46–53, 55):Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Vitali Apirine’s article in the January 2022 issue, “Relative Strength Moving Averages, Part 1: The Relative Strength Exponential Moving Average (RS EMA).” Here, we present the May 2022 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19678.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-05-46-53-55-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-05-46-53-55-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov405exyo,d,"{""minimum-quantity"":""1"",""path"":""ch5m2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:05 (54–55): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
COVERED CALL STRATEGY
The covered call strategy is probably the second most popular options trading strategy (second to simply buying calls and puts). However, it is also one of the most misunderstood strategies ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19681.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-05-54-55-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-05-54-55-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov406trpe4,d,"{""minimum-quantity"":""1"",""path"":""ch5m2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:05 (60–62): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
ODDS & ENDS
This month, I wanted to do something a bit different by offering a collection of thoughts, observations, and items that I believe are important to share ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19684.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-05-60-62-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-05-60-62-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov406alqa,d,"{""minimum-quantity"":""1"",""path"":""ch5m2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:05 (6–7): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
SPEND MONEY TO MAKE MONEY?
I find building trading algos difficult. Would I be better off purchasing a system, or subscribing to signals instead?
There is no easy path to riches in trading, whether you try to develop your own algo, purchase a strategy, or subscribe to signals ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19675.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-05-6-7-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-05-6-7-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov408inte,d,"{""minimum-quantity"":""1"",""path"":""ch5m2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:05 (8–16): In-Sample Test Data, Out-of-Sample Data—Does It Really Matter? by Perry J. Kaufman"",""caption-linebreaks"":""In-Sample Test Data, Out-of-Sample Data—Does It Really Matter? by Perry J. Kaufman
Backtesting a trading strategy or trading system before trading it has always been an important part of the system trader’s process. But what’s the best way to go about it? Here’s an overview of the process and some finer points on how to select data to use in backtesting.
The “scientific way” to test is by using data that is referred to as in-sample. You then use those results on out-of-sample data, that is, data that the test has not seen before ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17984.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-05-8-16-in-sample-test-data-out-of-sample-data-does-it-really-matter-by-perry-j-kaufman-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-05-8-16-in-sample-test-data-out-of-sample-data-does-it-really-matter-by-perry-j-kaufman-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov401bugo,d,"{""minimum-quantity"":""1"",""path"":""ch6j2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:06 (14–17): Buying Golden Crosses And Selling Death Crosses: Evidence From ETFs by Massoud Metghalchi, PhD, and Manuel Lopez-Garcia"",""caption-linebreaks"":""Buying Golden Crosses And Selling Death Crosses: Evidence From ETFs by Massoud Metghalchi, PhD, and Manuel Lopez-Garcia
It’s a well-known concept to buy “golden crosses” and sell “death crosses.” But how often does this popular notion hold up in the market? Here’s a recent study using a portfolio of ETFs for an updated look.
Technical analysis (TA) has significantly evolved from the graphical approach in the mid-20th century to a more sophisticated computational approach used in the present day ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19523.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-06-14-17-buying-golden-crosses-and-selling-death-crosses-evidence-from-etfs-by-massoud-metghalchi-phd-and-manuel-lopez-garcia-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-06-14-17-buying-golden-crosses-and-selling-death-crosses-evidence-from-etfs-by-massoud-metghalchi-phd-and-manuel-lopez-garcia-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov401obde,d,"{""minimum-quantity"":""1"",""path"":""ch6j2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:06 (18–21): Objectively Defining And Measuring Consistency Using Bollinger Bands by André Salmerón"",""caption-linebreaks"":""Objectively Defining And Measuring Consistency Using Bollinger Bands by André Salmerón
Consistency in trading is more complex than you might think. The first step toward achieving consistent trading results is objectively measuring your performance. But how can you measure it in objective terms? Here’s a novel way you may not have thought of.
\""Consistency\"" can be a vague concept in trading, as well as something of an unreachable holy grail. A lot of us dedicate our lives to achieving it. Many people promise to show you the path to it. But few of us actually achieve it ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19520.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-06-18-21-objectively-defining-and-measuring-consistency-using-bollinger-bands-by-andr-salmer-n-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-06-18-21-objectively-defining-and-measuring-consistency-using-bollinger-bands-by-andr-salmer-n-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov402trde,d,"{""minimum-quantity"":""1"",""path"":""ch6j2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:06 (22–29): Trend Detection In Highly Liquid Assets by Idel Enk"",""caption-linebreaks"":""Trend Detection In Highly Liquid Assets by Idel Enk
Here is a way to detect the start of a price trend, also called a “wave.” It borrows two basic concepts from numerical calculus—the derivative and the integral—as an approach to filtering waves.
In this article, I will describe a way to detect and validate price trend reversals of highly liquid assets that oscillate between uptrends and downtrends (waves) and channels ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17820.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-06-22-29-trend-detection-in-highly-liquid-assets-by-idel-enk-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-06-22-29-trend-detection-in-highly-liquid-assets-by-idel-enk-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40338us,d,"{""minimum-quantity"":""1"",""path"":""ch6j2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:06 (30, 38): Using Bollinger Bands With The VIX by Ken Calhoun"",""caption-linebreaks"":""Using Bollinger Bands With The VIX by Ken Calhoun
Bollinger Bands are a brilliant tool that can be used to identify reversals, so using them with the VIX makes sense.
The VIX (Cboe Volatility Index) is an essential indicator used by traders worldwide to help identify reversals from bullish to bearish sentiment, and vice versa ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17817.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-06-30-38-using-bollinger-bands-with-the-vix-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-06-30-38-using-bollinger-bands-with-the-vix-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40343al,d,"{""minimum-quantity"":""1"",""path"":""ch6j2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:06 (31, 43): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
THE QUESTION OF MARGIN
Have you found when trading a large (30–40+) number of algo strategies that the margin requirements become problematic in that too much cash is required to trade that many strategies?
Terrific question! If you’ve read my previous columns, you’ll know that I am a huge proponent of algo trading with multiple strategies and multiple markets ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-06-31-43-algo-q-a-by-kevin-j-davey-25.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-06-31-43-algo-q-a-by-kevin-j-davey-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-06-31-43-algo-q-a-by-kevin-j-davey-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov403brof,d,"{""minimum-quantity"":""1"",""path"":""ch6j2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:06 (32–38): The Brogans Of The Brogan Group Equity Research by Karl Montevirgen"",""caption-linebreaks"":""The Brogans Of The Brogan Group Equity Research by Karl Montevirgen
It’s a family affair: Bob Brogan Sr., Terence Brogan, and Rob Brogan Jr. run The Brogan Group Equity Research (BGER), a division of Wellington Shields & Co. The firm offers decades of experience as institutional market technicians, publishing daily research based on money flow and relative performance and providing buy and sell recommendations on stocks, commodities, currencies, and fixed income. We spoke with them about their path to discovering their money flow and relative performance analytics approach to market analysis ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17814.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-06-32-38-the-brogans-of-the-brogan-group-equity-research-by-karl-montevirgen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-06-32-38-the-brogans-of-the-brogan-group-equity-research-by-karl-montevirgen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov404snma,d,"{""minimum-quantity"":""1"",""path"":""ch6j2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:06 (40–42): The Sniper MACD Trading Strategy by Azeez Mustapha"",""caption-linebreaks"":""The Sniper MACD Trading Strategy by Azeez Mustapha
Here’s a daytrading forex strategy that’s designed to be hassle-free.
Daytrading financial assets involves the simple act of buying and selling these assets within the same day or even several times a day ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17808.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-06-40-42-the-sniper-macd-trading-strategy-by-azeez-mustapha-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-06-40-42-the-sniper-macd-trading-strategy-by-azeez-mustapha-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov404sytr,d,"{""minimum-quantity"":""1"",""path"":""ch6j2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:06 (44–45): Symmetrical Triangles by Stella Osoba, CMT"",""caption-linebreaks"":""Symmetrical Triangles by Stella Osoba, CMT
Sometimes it’s useful to go back to basics to remind ourselves of classic chart patterns that may have receded in importance during the recent bull market but which now seem to pop up with more consistency. One such pattern is the symmetrical triangle.
Asymmetrical triangle is a continuation chart pattern. It consists of a downward-sloping upper trendline and an upward-sloping lower trendline ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17805.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-06-44-45-symmetrical-triangles-by-stella-osoba-cmt-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-06-44-45-symmetrical-triangles-by-stella-osoba-cmt-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov404fufo1,d,"{""minimum-quantity"":""1"",""path"":""ch6j2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:06 (46–47): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
ALGORITHMIC TRADING SYSTEMS
Algorithmic trading is popular and impacting price action. Should I go that route?
Since the early 2000s, computers and, more notably, electronic futures trading execution has become the norm for commodity traders ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17802.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-06-46-47-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-06-46-47-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov404trti1,d,"{""minimum-quantity"":""1"",""path"":""ch6j2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:06 (48–55): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is John Ehlers’ article in this issue, “Ehlers Loops, Part 1.” Here, we present the June 2022 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-06-48-55-traders-tips-by-technical-analysis-inc-25.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-06-48-55-traders-tips-by-technical-analysis-inc-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-06-48-55-traders-tips-by-technical-analysis-inc-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov405mara,d,"{""minimum-quantity"":""1"",""path"":""ch6j2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:06 (56): Market Rap by Emilio Tomasini"",""caption-linebreaks"":""Market Rap by Emilio Tomasini
HIGH-FREQUENCY TRADING AND MARKET MAKING (PART 1)
What is high-frequency trading (HFT)? The trading arena is so full of definitions that even if you’re a professional trader, sometimes you can get lost in the terminology ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19553.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-06-56-market-rap-by-emilio-tomasini-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-06-56-market-rap-by-emilio-tomasini-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40647tr,d,"{""minimum-quantity"":""1"",""path"":""ch6j2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:06 (60–62, 47): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""STOCK SELECTION: DISCIPLINE OVER FOMO
How would one select stocks with potential alpha over SPY or other markets?
As you are aware, there are 500 companies in the S&P 500 stock index for a total of 505 stocks, as some have multiple share classes ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19550.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-06-60-62-47-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-06-60-62-47-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov406exyo2,d,"{""minimum-quantity"":""1"",""path"":""ch6j2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:06 (6–7): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
BUTTERFLY CALL SPREAD? IT MAY DEPEND ON YOUR OUTLOOK
I have a specific bullish outlook for gold. However, I am not willing to trade futures contracts, and even the cost of 100 shares of GLD is a bit steep for me. I have looked at buying a bullish out-of-the-money call on GLD but am concerned about time decay. Is there an alternative strategy?
Yes, there are always alternative strategies with options ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19529.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-06-6-7-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-06-6-7-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40838eh,d,"{""minimum-quantity"":""1"",""path"":""ch6j2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:06 (8–12, 38): Ehlers Loops, Part 1 by John F. Ehlers"",""caption-linebreaks"":""Ehlers Loops, Part 1 by John F. Ehlers
Introducing a new way to discretionarily predict bullish and bearish moves in the market.
\""Volume leads price\"" is a philosophical dogma that has been part of technical analysis forever ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19526.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-06-8-12-38-ehlers-loops-part-1-by-john-f-ehlers-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-06-8-12-38-ehlers-loops-part-1-by-john-f-ehlers-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov401isit,d,"{""minimum-quantity"":""1"",""path"":""ch7j2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:07 (14–19): Is It Too Volatile To Trade? by Perry J. Kaufman"",""caption-linebreaks"":""Is It Too Volatile To Trade? by Perry J. Kaufman
Traders profit from volatility. But what exactly is the tipping point where volatility crosses over into excessive risk? Here are tools you can use to measure volatility and determine that crucial point.
Can any stock be too volatile to trade? Most traders look for volatility ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19505.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-07-14-19-is-it-too-volatile-to-trade-by-perry-j-kaufman-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-07-14-19-is-it-too-volatile-to-trade-by-perry-j-kaufman-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov402prre,d,"{""minimum-quantity"":""1"",""path"":""ch7j2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:07 (20–22): Product Review: GoNoGo Charts Complete by Barbara Star, PhD"",""caption-linebreaks"":""Product Review: GoNoGo Charts Complete by Barbara Star, PhD
METASTOCK
\nwww.metastock.com
\nwww.metastock.com/saleschat
\n800 882-3040
\nRequirements: MetaStock version 17 or higher, Windows 10 or higher
\nProduct: Decision-making indicator and scanner for locating price entries
\nPrice: $1,495 one-time fee
Is it risk on or risk off? Is it time to enter a trade or stay out? The GoNoGo Charts Complete add-on to MetaStock helps takes the guesswork out of making important trading decisions ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19511.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-07-20-22-product-review-gonogo-charts-complete-by-barbara-star-phd-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-07-20-22-product-review-gonogo-charts-complete-by-barbara-star-phd-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40246us,d,"{""minimum-quantity"":""1"",""path"":""ch7j2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:07 (23, 46): Using Two-Year Support Levels For Entries by Ken Calhoun"",""caption-linebreaks"":""Using Two-Year Support Levels For Entries by Ken Calhoun
You can use multiyear support and resistance levels to help enter positions.
Recently, many large-cap, well-known companies like Shopify (SHOP) have been sold down to under two-year lows. Other notable examples include Paypal and Netflix ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19514.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-07-23-46-using-two-year-support-levels-for-entries-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-07-23-46-using-two-year-support-levels-for-entries-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov402fiet,d,"{""minimum-quantity"":""1"",""path"":""ch7j2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:07 (24–32): Fintech ETFs by Leslie N. Masonson"",""caption-linebreaks"":""Fintech ETFs by Leslie N. Masonson
Fintech ETFs offer a window into the exploding digital payments revolution, which drastically transformed the banking and payment system landscape around the world for consumers and small businesses, especially during the COVID-19 pandemic. From blockchain to crypto to mining to mobile payments to digital wallets, investors and traders may want to consider investing a small allocation to this disruptive arena. Check out the diverse leaders in this market segment in this article.
Fintech is generally defined as “computer programs and other technology used to support or enable banking and financial services.” According to Investopedia ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19517.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-07-24-32-fintech-etfs-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-07-24-32-fintech-etfs-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40335ma,d,"{""minimum-quantity"":""1"",""path"":""ch7j2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:07 (33, 35): Market Rap by Emilio Tomasini"",""caption-linebreaks"":""Market Rap by Emilio Tomasini
HIGH-FREQUENCY TRADING AND MARKET MAKING (PART 2):\nMY EXPERIENCE IN THE SECOND HALF OF THE SKY
Last time, I discussed the topics of high-frequency trading (HFT) and algorithmic trading, and posed the question of where the average retail trader might fit into this picture ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17726.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-07-33-35-market-rap-by-emilio-tomasini-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-07-33-35-market-rap-by-emilio-tomasini-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov403inco,d,"{""minimum-quantity"":""1"",""path"":""ch7j2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:07 (36–43): Interview: A Conversation With Louise Yamada by Leslie N. Masonson"",""caption-linebreaks"":""Interview: A Conversation With Louise Yamada by Leslie N. Masonson
Louise Yamada, CMT, was the managing director of Louise Yamada Technical Research Advisors (LYA) for 15 years before retiring in December 2020. But she still contributes periodic reports on the market to her website ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17729.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-07-36-43-interview-a-conversation-with-louise-yamada-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-07-36-43-interview-a-conversation-with-louise-yamada-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov404exyo1,d,"{""minimum-quantity"":""1"",""path"":""ch7j2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:07 (44–46): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
CREDIT SPREADS
I am interested in trading credit spreads. However, I find many possible choices, and I don’t know how to narrow them down to find the best opportunities.
That is a frustration for many traders. This led me to create Jay’s Trading Maxim #115: The best thing about trading options (“there are so many possibilities”) is—ironically—also the worst thing about trading options (“there are so many possibilities”) ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17732.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-07-44-46-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-07-44-46-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov404fufo2,d,"{""minimum-quantity"":""1"",""path"":""ch7j2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:07 (48–49): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
FUTURES PRICE LIMITS
Are price limits good or bad for futures markets?
Futures exchanges set daily price limits for most commodities. When that price limit is reached, trade is not necessarily halted as stock exchanges sometimes do during times of high volatility ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17735.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-07-48-49-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-07-48-49-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov405trti3,d,"{""minimum-quantity"":""1"",""path"":""ch7j2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:07 (50–56): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is John Ehlers’ article in this issue, “Pairs Rotation With Ehlers Loops, Part 2.” Here, we present the July 2022 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17765.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-07-50-56-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-07-50-56-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov406trpe5,d,"{""minimum-quantity"":""1"",""path"":""ch7j2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:07 (60–62): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
TRADING IS NOT ABOUT ONE THING
Traders require ideas, but they also need to be prepared for multiple scenarios. When preparing the night before for the following day, all we know is what happened, how we arrived at that point, and what the futures markets are doing after the extended-hours trading session ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17768.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-07-60-62-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-07-60-62-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov406alqa1,d,"{""minimum-quantity"":""1"",""path"":""ch7j2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:07 (6–7): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
RE-OPTIMIZATION PERIODS
What is your philosophy on re-optimization periods for walkforward testing? I’ve seen a few educators claim you should re-optimize every day.
Wow, this is one of the more detailed questions I’ve had in this column. I’ll try to answer it without getting too bogged down in minutiae ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19480.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-07-6-7-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-07-6-7-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov408paro,d,"{""minimum-quantity"":""1"",""path"":""ch7j2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:07 (8–13): Pairs Rotation With Ehlers Loops, Part 2 by John F. Ehlers"",""caption-linebreaks"":""Pairs Rotation With Ehlers Loops, Part 2 by John F. Ehlers
Last time in part 1, a new charting style named Ehlers Loops was introduced that could help you to gain predictive insights by the nature of the display. This time, we’ll look at Ehlers Loops in action with a pairs trading example.
Pairs rotation is a strategy whose goal is to minimize drawdown while simultaneously maximizing return on capital ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19483.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-07-8-13-pairs-rotation-with-ehlers-loops-part-2-by-john-f-ehlers-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-07-8-13-pairs-rotation-with-ehlers-loops-part-2-by-john-f-ehlers-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40219li,d,"{""minimum-quantity"":""1"",""path"":""ch8a2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:08 (20–28, 19): Linear Regression Of Price And Time, Part 4: Logistic Asset Allocation by Mike B. Siroky, MD"",""caption-linebreaks"":""Linear Regression Of Price And Time, Part 4: Logistic Asset Allocation by Mike B. Siroky, MD
Effective asset allocation design will recognize not only how much is allocated to various assets, but also, which assets are performing the best. Toward this goal, the “logistic portfolio” is introduced here, which is a dynamic allocation model based on near-term estimates of risk-adjusted returns, rather than on long-term expected returns or expected volatilities. Find out how to implement it.
Before putting any capital at risk, an investor is faced with two difficult questions ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17741.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-08-20-28-19-linear-regression-of-price-and-time-part-4-logistic-asset-allocation-by-mike-b-siroky-md-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-08-20-28-19-linear-regression-of-price-and-time-part-4-logistic-asset-allocation-by-mike-b-siroky-md-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40233ma,d,"{""minimum-quantity"":""1"",""path"":""ch8a2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:08 (29, 33): Market Rap by Emilio Tomasini"",""caption-linebreaks"":""Market Rap by Emilio Tomasini
MARKET DECLINES: A DISASTER, OR AN OPPORTUNITY?
Over the years, I have observed a growing number of financial advisors, financial analysts, and money managers who have just a single investing strategy ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17738.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-08-29-33-market-rap-by-emilio-tomasini-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-08-29-33-market-rap-by-emilio-tomasini-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov403canm,d,"{""minimum-quantity"":""1"",""path"":""ch8a2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:08 (30–33): Can Members Of Congress Beat The Market? by Massoud Metghalchi, PhD, Peggy A. Cloninger, PhD, and Jaime G. Herran La Torre"",""caption-linebreaks"":""Can Members Of Congress Beat The Market? by Massoud Metghalchi, PhD, Peggy A. Cloninger, PhD, and Jaime G. Herran La Torre
The US Congress passed the Stop Trading on Congressional Knowledge Act of 2012, commonly known as the STOCK Act, to help curb potential or apparent trading by members of Congress based on inside or confidential information they may possess. But have members of Congress actually fared better in their trading results than anyone else? See what this study says.
The efficient market hypothesis (EMH), developed in the 1960s, argues that no traders can make consistent abnormal returns in the stock market because all data and information, past and present, is fully reflected in the current stock price ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17747.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-08-30-33-can-members-of-congress-beat-the-market-by-massoud-metghalchi-phd-peggy-a-cloninger-phd-and-jaime-g-herran-la-torre-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-08-30-33-can-members-of-congress-beat-the-market-by-massoud-metghalchi-phd-peggy-a-cloninger-phd-and-jaime-g-herran-la-torre-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov403trwi,d,"{""minimum-quantity"":""1"",""path"":""ch8a2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:08 (34–37): Trading With Double Tops And Double Bottoms by Azeez Mustapha"",""caption-linebreaks"":""Trading With Double Tops And Double Bottoms by Azeez Mustapha
You can make profitable trades by getting to recognize patterns that tend to repeat. Here’s an example of taking trades in the forex market based on double tops and double bottoms, with confirmation from Bollinger Bands.
The feelings of uncertainty and fear of execution disappear the moment a trader can finally read the meaning of the charts. If you can have a precise understanding of something that happens repeatedly in the markets, it can give you an edge in the markets ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17744.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-08-34-37-trading-with-double-tops-and-double-bottoms-by-azeez-mustapha-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-08-34-37-trading-with-double-tops-and-double-bottoms-by-azeez-mustapha-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov403lire,d,"{""minimum-quantity"":""1"",""path"":""ch8a2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:08 (38–41): The Linear Regression-Adjusted Exponential Moving Average by Vitali Apirine"",""caption-linebreaks"":""The Linear Regression-Adjusted Exponential Moving Average by Vitali Apirine
Here is a new tool you can use that combines a linear regression indicator with exponential moving averages to filter price movement and help define turning points.
The linear regression-adjusted exponential moving average (LRAdj EMA) is designed to account for linear regression deviation (that is, the distance between the price and the linear regression indicator) ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17756.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-08-38-41-the-linear-regression-adjusted-exponential-moving-average-by-vitali-apirine-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-08-38-41-the-linear-regression-adjusted-exponential-moving-average-by-vitali-apirine-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov403sate,d,"{""minimum-quantity"":""1"",""path"":""ch8a2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:08 (38–41): The Savvy Technician by Stella Osoba, CMT"",""caption-linebreaks"":""The Savvy Technician by Stella Osoba, CMT
HISTORY DOESN’T REPEAT
There’s a well-known quote attributed to Samuel Langhorne Clemens (also known by his pen name Mark Twain) that says, “History doesn’t repeat, but it often rhymes.”
With the Dow Jones Industrial Average (DJIA) flirting near bear market territory as I write this ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-08-38-41-the-savvy-technician-by-stella-osoba-cmt-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-08-38-41-the-savvy-technician-by-stella-osoba-cmt-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-08-38-41-the-savvy-technician-by-stella-osoba-cmt-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40445da,d,"{""minimum-quantity"":""1"",""path"":""ch8a2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:08 (42, 45): Daytrading Small Caps: End-Of-Day by Ken Calhoun"",""caption-linebreaks"":""Daytrading Small Caps: End-Of-Day by Ken Calhoun
Here is a simple momentum daytrading breakout strategy that is designed to capitalize on volatile moves in small-cap stocks.
Because of their volatility and speculative price action, small-cap stocks under $10 often provide good trading opportunities during the last hour of the trading session ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17753.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-08-42-45-daytrading-small-caps-end-of-day-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-08-42-45-daytrading-small-caps-end-of-day-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40448al,d,"{""minimum-quantity"":""1"",""path"":""ch8a2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:08 (43, 48): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
STRATEGY DEVELOPMENT AND PSYCHOLOGY
You seem to focus more on strategy building than on psychology or emotions in this column. Why is that? Do emotions not matter in algo trading?
Emotions, discipline, and psychology absolutely do matter in algo trading ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17762.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-08-43-48-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-08-43-48-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov404fufo3,d,"{""minimum-quantity"":""1"",""path"":""ch8a2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:08 (44–45): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
ARE PRICE LIMITS GOOD OR BAD FOR FUTURES MARKETS? (PART 2)
Last month I discussed the unintended consequences and disadvantages of exchange price limits on futures traders. Price limits are daily maximum fluctuations allowed by commodity exchanges for respective products ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17759.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-08-44-45-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-08-44-45-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov404exyo2,d,"{""minimum-quantity"":""1"",""path"":""ch8a2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:08 (46–48): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
MINIMIZING CASH NEEDED TO SELL NAKED PUTS
like the idea of selling naked puts to collect premium. But I’m not too fond of having to hold large sums of cash in my account to secure the puts. Any way around this?
There is no way around having to hold cash to write a cash-secured put. However ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19489.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-08-46-48-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-08-46-48-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40462tr,d,"{""minimum-quantity"":""1"",""path"":""ch8a2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:08 (49–56, 62): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Markos Katsanos’ article in this issue, “Trading The Fear Index.” Here, we present the August 2022 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19486.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-08-49-56-62-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-08-49-56-62-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov406trpe6,d,"{""minimum-quantity"":""1"",""path"":""ch8a2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:08 (60–62): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
REGARDLESS OF TRADING STYLE, DON’T IGNORE THE MACRO PICTURE
Traders come in different stripes and may follow different trading methods, styles, and strategies. But no matter the trading style, very few traders can afford to ignore the macro forces and influences at work in the market ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19492.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-08-60-62-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-08-60-62-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov408trfe,d,"{""minimum-quantity"":""1"",""path"":""ch8a2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:08 (8–19): Trading The Fear Index by Markos Katsanos"",""caption-linebreaks"":""Trading The Fear Index by Markos Katsanos
Here is a long-short strategy to capitalize on stock market volatility using volatility-based exchange-traded funds (ETFs or ETNs).
Most investors regard the VIX Index (also known as the “fear index”) simply as a metric that might help them prepare for market movements but ignore any potentially lucrative trading opportunities that it offers ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19501.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-08-8-19-trading-the-fear-index-by-markos-katsanos-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-08-8-19-trading-the-fear-index-by-markos-katsanos-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40125un,d,"{""minimum-quantity"":""1"",""path"":""ch9s2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:09 (14–19, 25): A Unified Theory Of The Markets: Trend by Steve J. Godwin & Louisa C. Schneider"",""caption-linebreaks"":""A Unified Theory Of The Markets: Trend by Steve J. Godwin & Louisa C. Schneider
The unified theory of the markets (UTM) model presented previously detects upcoming weakness and strength in the market. Here, we introduce a companion model focused on trend to help determine current trend strength and direction.
In our November 2020 article in this magazine, we introduced our unified theory of the markets (UTM) model and provided an equation for it. It’s a simple linear equation ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/newitem2-243.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-09-14-19-25-a-unified-theory-of-the-markets-trend-by-steve-j-godwin-louisa-c-schneider-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-09-14-19-25-a-unified-theory-of-the-markets-trend-by-steve-j-godwin-louisa-c-schneider-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov402trna,d,"{""minimum-quantity"":""1"",""path"":""ch9s2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:09 (20–25): Trading Natural Gas Using UNG by Massoud Metghalchi, PhD, and Peggy A. Cloninger, PhD"",""caption-linebreaks"":""Trading Natural Gas Using UNG by Massoud Metghalchi, PhD, and Peggy A. Cloninger, PhD
Using a long-term buy & hold approach with the natural gas ETF UNG would almost certainly be a losing proposition. So how can you trade UNG profitably? Let’s find out.
The United States Natural Gas Fund, UNG, introduced in April 2007, is the largest natural gas ETF on the NYSE Arca. The fund facilitates investing in natural gas without going through the futures markets ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/newitem2-246.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-09-20-25-trading-natural-gas-using-ung-by-massoud-metghalchi-phd-and-peggy-a-cloninger-phd-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-09-20-25-trading-natural-gas-using-ung-by-massoud-metghalchi-phd-and-peggy-a-cloninger-phd-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov402stpo,d,"{""minimum-quantity"":""1"",""path"":""ch9s2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:09 (26–30): Stock Portfolio Construction When Recession Looms by Ken (Xueyue) Jin"",""caption-linebreaks"":""Stock Portfolio Construction When Recession Looms by Ken (Xueyue) Jin
What industry groups fared best during recessionary periods of the past? Armed with this information, investors can better construct their stock portfolio to weather recessions. Here is a study to point the way.
A recession is a period of weak or negative GDP growth accompanied by a significant loss of employment. During a recession, the stock market can suffer large losses ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/newitem2-285.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-09-26-30-stock-portfolio-construction-when-recession-looms-by-ken-xueyue-jin-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-09-26-30-stock-portfolio-construction-when-recession-looms-by-ken-xueyue-jin-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40333al,d,"{""minimum-quantity"":""1"",""path"":""ch9s2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:09 (31, 33): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
FULL-TIME ALGO TRADING
I recently lost my job, so I’ve decided to switch to full-time algo trading for a career. I am giving myself three-months to succeed (I can already program and backtest), otherwise I will start looking for a “real” job. Any advice?
Save yourself some time and aggravation, and GET A JOB now! This is some blunt advice, I realize. You will probably be mad at me for saying that ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/newitem2-288.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-09-31-33-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-09-31-33-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov403sate1,d,"{""minimum-quantity"":""1"",""path"":""ch9s2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:09 (32–33): The Savvy Technician by Stella Osoba, CMT"",""caption-linebreaks"":""The Savvy Technician by Stella Osoba, CMT
LESSONS FROM MR. MARKET
“All things excellent are as difficult as they are rare.”
\n—Baruch Spinoza, as quoted in The Intelligent Investor
On July 1, 2022, the S&P 500 index was trading down 19.74% from its high ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/newitem2-279.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-09-32-33-the-savvy-technician-by-stella-osoba-cmt-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-09-32-33-the-savvy-technician-by-stella-osoba-cmt-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40362in,d,"{""minimum-quantity"":""1"",""path"":""ch9s2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:09 (34–37, 62): Interview: A Conversation With Sunny Harris by Karl Montevirgen"",""caption-linebreaks"":""Interview: A Conversation With Sunny Harris by Karl Montevirgen
Sunny Harris is a full-time trader as well as a programmer, teacher, and consultant to individual and institutional clients. Harris has been a speaker at many conferences and seminars and has made various media appearances over the years ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/newitem2-282.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-09-34-37-62-interview-a-conversation-with-sunny-harris-by-karl-montevirgen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-09-34-37-62-interview-a-conversation-with-sunny-harris-by-karl-montevirgen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40355co,d,"{""minimum-quantity"":""1"",""path"":""ch9s2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:09 (38–43, 55): Communication ETFs by Leslie N. Masonson"",""caption-linebreaks"":""Communication ETFs by Leslie N. Masonson
Communications between individuals and companies is the lifeblood of our society. Ever since the development of the telegraph, the US has led the world in revolutionary telecommunications services. Investors can directly participate in the growth and innovation of well-known companies in this everchanging industry by allocating a small position in their portfolio to a communications sector ETF. We will take a closer look at some of those ETFs here.
On May 24, 1844, Samuel F.B. Morse sent the first telegraph message from Washington, DC to Baltimore over wires suspended on wooden poles connecting those two cities ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/newitem2-276.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-09-38-43-55-communication-etfs-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-09-38-43-55-communication-etfs-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40453ma,d,"{""minimum-quantity"":""1"",""path"":""ch9s2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:09 (44, 53): Market Rap by Emilio Tomasini"",""caption-linebreaks"":""Market Rap by Emilio Tomasini
WHAT IS ARBITRAGE AND ARE THERE REALLY NO FREE LUNCHES?
We were told in school there are no free lunches. But this is wrong. Sometimes it happens and you really can find a free lunch. It seldom occurs but it does happen. In the markets, a “free lunch” might be in the form of an arbitrage ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-09-44-53-market-rap-by-emilio-tomasini-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-09-44-53-market-rap-by-emilio-tomasini-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-09-44-53-market-rap-by-emilio-tomasini-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov404fufo4,d,"{""minimum-quantity"":""1"",""path"":""ch9s2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:09 (46–47): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
ARE MICRO CRUDE OIL OPTIONS A VIABLE “OPTION” FOR TRADERS?
Crude oil is one of the most important commodities around the globe. It is used to make the majority of products we purchase (plastics) but it is also used to transport goods and even contribute to the services we consume (think air conditioning) ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/newitem2-270.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-09-46-47-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-09-46-47-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov404trti2,d,"{""minimum-quantity"":""1"",""path"":""ch9s2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:09 (48–53): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Vitali Apirine’s article in the August issue, “The Linear Regression-Adjusted Exponential Moving Average.” Here, we present the September 2022 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/newitem2-273.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-09-48-53-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-09-48-53-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov405boba,d,"{""minimum-quantity"":""1"",""path"":""ch9s2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:09 (54–55): Bollinger Band Reversals by Ken Calhoun"",""caption-linebreaks"":""Bollinger Band Reversals by Ken Calhoun
Bollinger Bands do an especially good job of visually representing variance, trading range expansion/contraction, and potential trend reversals.
When the “tails” of candles are seen outside of Bollinger Bands (BBands), a reversal may occur ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/newitem2-252.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-09-54-55-bollinger-band-reversals-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-09-54-55-bollinger-band-reversals-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov406trpe7,d,"{""minimum-quantity"":""1"",""path"":""ch9s2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:09 (60–62): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""RESPOND TO MARKET CHAOS WITH RELATIONSHIP-BASED, HEDGED TRADING
We certainly have seen plenty of trouble this year for “buy the dip” and naked “swing trading” strategies ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/newitem2-255.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-09-60-62-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-09-60-62-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40647ex,d,"{""minimum-quantity"":""1"",""path"":""ch9s2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:09 (6–7, 47): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
USING THE “COLLAR” STRATEGY TO HEDGE AGAINST A LONG STOCK
I hold stock shares but am concerned about how the stock might react following the upcoming earnings announcement. I currently have a profit in the stock and don’t want to sell the shares and trigger a taxable event. However, the options are relatively expensive, so I am hesitant to just buy a put option. Any alternatives?
A helpful strategy for an investor who wants to hedge risk around earnings is a “collar.” A collar involves ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-09-6-7-47-explore-your-options-by-jay-kaeppel-25.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-09-6-7-47-explore-your-options-by-jay-kaeppel-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-09-6-7-47-explore-your-options-by-jay-kaeppel-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov408whis,d,"{""minimum-quantity"":""1"",""path"":""ch9s2017"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:09 (8–13): What Is The Real Risk Of System Trading? by Perry J. Kaufman"",""caption-linebreaks"":""What Is The Real Risk Of System Trading? by Perry J. Kaufman
By knowing the risk of being in the market, you can hedge and control portfolio volatility better. Here is a rundown of the most popular ways to evaluate and measure risk, as well as the strengths and weaknesses of each. In the end, you’ll find out what’s important and how you can use a spreadsheet to assess risk.
I realize that risk is not everyone’s favorite topic. It is, however, critical to being a successful trader and critical to survival. If you don’t understand your trading risk, you can lose everything. But what is your risk ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/newitem2-249.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-09-8-13-what-is-the-real-risk-of-system-trading-by-perry-j-kaufman-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-09-8-13-what-is-the-real-risk-of-system-trading-by-perry-j-kaufman-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40121ma,d,"{""minimum-quantity"":""1"",""path"":""ch10o2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:10 (15, 21): Market Rap by Emilio Tomasini"",""caption-linebreaks"":""Market Rap by Emilio Tomasini
SPECULATION VS. INVESTING
What is an “investment” and how does it differ from “speculation”? Economic literature has been discussing this topic for centuries ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17352.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-10-15-21-market-rap-by-emilio-tomasini-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-10-15-21-market-rap-by-emilio-tomasini-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov401dean,d,"{""minimum-quantity"":""1"",""path"":""ch10o2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:10 (16–21): Developing And Testing A Trading Strategy From The Vault by Kevin J. Davey"",""caption-linebreaks"":""Developing And Testing A Trading Strategy From The Vault by Kevin J. Davey
A dive into this magazine’s vast article archives can provide you with myriad ideas for trading strategies to develop and test. Here’s an example of doing just that by returning to the very first issue of this magazine to pull out a trading idea. Will it work? Let’s find out.
As Technical Analysis of STOCKS & COMMODITIES magazine celebrates its 40-year anniversary, I thought I’d share a way I take advantage of the 40 years of article archives that S&C magazine subscribers have access to at the magazine’s website ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17021.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-10-16-21-developing-and-testing-a-trading-strategy-from-the-vault-by-kevin-j-davey-6.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-10-16-21-developing-and-testing-a-trading-strategy-from-the-vault-by-kevin-j-davey-7.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov402fost,d,"{""minimum-quantity"":""1"",""path"":""ch10o2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:10 (22–26): Four Steps To Bull And Bear Profits by Jon Wolfenbarger, CFA"",""caption-linebreaks"":""Four Steps To Bull And Bear Profits by Jon Wolfenbarger, CFA
The major cyclical trends in the financial markets create both risk and opportunity for investors, yet most lack a system to identify and profit by these cycles. Here is a tutorial to help you build a comprehensive system in four steps—using a wide variety of proven fundamental and technical indicators—to identify and profit in both bull and bear markets.
The key to creating wealth for an investor is to generate high compounded annual returns over time ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17355.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-10-22-26-four-steps-to-bull-and-bear-profits-by-jon-wolfenbarger-cfa-7.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-10-22-26-four-steps-to-bull-and-bear-profits-by-jon-wolfenbarger-cfa-8.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40241sw,d,"{""minimum-quantity"":""1"",""path"":""ch10o2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:10 (27, 41): Swing Trading In The 50/200MA Channel by Ken Calhoun"",""caption-linebreaks"":""Swing Trading In The 50/200MA Channel by Ken Calhoun
You can use the popular 50-day and 200-day moving averages for more than looking for crosses of the two lines. You can also use the channel that the two lines create to swing trade in a continuous up-trend. Here’s how.
Traders’ use of simple moving averages (SMA) has largely focused on crossover patterns, such as so-called golden crosses (upside 50/200SMA crossover) ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17024.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-10-27-41-swing-trading-in-the-50-200ma-channel-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-10-27-41-swing-trading-in-the-50-200ma-channel-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40255ur,d,"{""minimum-quantity"":""1"",""path"":""ch10o2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:10 (28–30, 55): Urban Energy Revolution: A Choice Or A Must? by Jerry Zhao"",""caption-linebreaks"":""Urban Energy Revolution: A Choice Or A Must? by Jerry Zhao
With increasing population growth and urban development comes increased energy use. Where can investors put their money to capitalize on opportunities brought by new sources of energy? Here’s a study examining several fundamental metrics to see if they might have some forecasting ability that investors can benefit from.
We are living in a world that has seen significant population growth and urban development. According to the World Bank, the population of cities will grow from the current 55% to approximately 70% by 2050 ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19166.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-10-28-30-55-urban-energy-revolution-a-choice-or-a-must-by-jerry-zhao-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-10-28-30-55-urban-energy-revolution-a-choice-or-a-must-by-jerry-zhao-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40356al,d,"{""minimum-quantity"":""1"",""path"":""ch10o2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:10 (31, 56): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
THE FUTURE OF ALGO TRADING?
Where do you see trading, specifically algo trading, 40 years from now?
This is a timely question, considering we are currently celebrating the 40-year anniversary of Technical Analysis of STOCKS & COMMODITIES magazine.
It’s a tricky question to answer, so I’ve asked some trading expert friends to help me address it ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18861.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-10-31-56-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-10-31-56-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov403inpe,d,"{""minimum-quantity"":""1"",""path"":""ch10o2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:10 (32–34): Interview: Perry Kaufman: Still Dancing by Barbara Diamond-Kaufman"",""caption-linebreaks"":""Interview: Perry Kaufman: Still Dancing by Barbara Diamond-Kaufman
Perry J. Kaufman began his career in technical trading in 1969. As the markets grew up and market products grew, he grew with them. His company, Kaufman Signals, offers subscribers daily trading signals before the opening bell. On the occasion of this magazine’s 40-year anniversary, we take a look back at market history and how that has informed (and continues to inform) his views on how to successfully trade today’s markets ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19163.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-10-32-34-interview-perry-kaufman-still-dancing-by-barbara-diamond-kaufman-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-10-32-34-interview-perry-kaufman-still-dancing-by-barbara-diamond-kaufman-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40356fu,d,"{""minimum-quantity"":""1"",""path"":""ch10o2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:10 (35, 56): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
WHAT DOES THE COT REPORT TELL US ABOUT COMMODITY SPECULATORS?
Unlike other marketplaces such as stocks or currencies, the US commodity futures industry collects and reports data on the type, size, and direction of market participants ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18864.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-10-35-56-futures-for-you-by-carley-garner-7.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-10-35-56-futures-for-you-by-carley-garner-8.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov403crsc,d,"{""minimum-quantity"":""1"",""path"":""ch10o2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:10 (36–42): A Cryptocurrency Scalping Strategy by Azeez Mustapha"",""caption-linebreaks"":""A Cryptocurrency Scalping Strategy by Azeez Mustapha
Here is a short-term and easy trend-following trading strategy for you to consider and to test for yourself. It uses a 5-minute chart for execution and a 1-hour chart for short-term trend identification.
Despite the recent negative string of events plaguing the cryptocurrency market, this industry remains one of the most sought-after financial markets by investors in 2022 ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19169.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-10-36-42-a-cryptocurrency-scalping-strategy-by-azeez-mustapha-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-10-36-42-a-cryptocurrency-scalping-strategy-by-azeez-mustapha-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov404gran,d,"{""minimum-quantity"":""1"",""path"":""ch10o2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:10 (42–45): Greed And Fear Index by Howard Wang"",""caption-linebreaks"":""Greed And Fear Index by Howard Wang
Here’s a relative strength type of indicator called the GFI that can provide warning of an overheated or oversold market. It could help you to buy or sell earlier rather than later in an uptrend or downtrend.
The greed and fear index (GFI) is a relative strength of overbought and oversold conditions, similar to the relative strength index (RSI). The GFI is an indicator of buy or sell action that can help you know when to buy or sell in advance of the crowd ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17086.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-10-42-45-greed-and-fear-index-by-howard-wang-6.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-10-42-45-greed-and-fear-index-by-howard-wang-7.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov404sate,d,"{""minimum-quantity"":""1"",""path"":""ch10o2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:10 (46–47): The Savvy Technician by Stella Osoba, CMT"",""caption-linebreaks"":""The Savvy Technician by Stella Osoba, CMT
KEEP YOUR MARKET OUTLOOK BASED IN REALITY
“The stupid shall be punished” is a military maxim. It is an admonishment that mistakes can be costly and can literally be the difference between life and death ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17385.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-10-46-47-the-savvy-technician-by-stella-osoba-cmt-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-10-46-47-the-savvy-technician-by-stella-osoba-cmt-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov404re40,d,"{""minimum-quantity"":""1"",""path"":""ch10o2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:10 (48–49): A Retrospective: 40 years by Technical Analysis, Inc."",""caption-linebreaks"":""A Retrospective: 40 years by Technical Analysis, Inc.
A LOOK BACK AT SOME EARLY S&C INTERVIEWS
This issue marks 40 years that Technical Analysis of STOCKS & COMMODITIES magazine has been published. Over the decades, we’ve presented interviews with hundreds of analysts, technicians, traders, and educators. All of those interviews add up to a lot of trading wisdoms. We wanted to share a few quotes from some of our earliest published interviews, so we dove deep into our article archives to pluck out some quotes ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17083.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-10-48-49-a-retrospective-40-years-by-technical-analysis-inc-6.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-10-48-49-a-retrospective-40-years-by-technical-analysis-inc-7.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov405trti4,d,"{""minimum-quantity"":""1"",""path"":""ch10o2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:10 (50–55): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Vitali Apirine’s article in the February 2022 issue, “Relative Strength Moving Averages, Part 2 (RS VA EMA).” Here, we present the October 2022 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17382.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-10-50-55-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-10-50-55-traders-tips-by-technical-analysis-inc-7.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov406trpe8,d,"{""minimum-quantity"":""1"",""path"":""ch10o2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:10 (60–62): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
USING DATA STRATEGICALLY
I am frequently asked about how to use data correctly. While this is a big subject, we can cover a few items that relate to the world I am most familiar with, which is trading equity pairs and baskets ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-17080.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-10-60-62-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-10-60-62-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40614ex,d,"{""minimum-quantity"":""1"",""path"":""ch10o2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:10 (6–7, 14): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
THE “OPEN COLLAR” STRATEGY
I read your column on the collar strategy with interest. I like the hedging aspect of the strategy but find the limited profit nature of the strategy to be quite unappealing. Is there any way to hedge with a collar without limiting profit potential?
Yes, in some cases, there are ways. There is a little-known option trading strategy that I refer to as the “open collar” ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-19190.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-10-6-7-14-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-10-6-7-14-explore-your-options-by-jay-kaeppel-7.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov408reph,d,"{""minimum-quantity"":""1"",""path"":""ch10o2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:10 (8–14): Recurring Phase Of Cycle Analysis by John F. Ehlers"",""caption-linebreaks"":""Recurring Phase Of Cycle Analysis by John F. Ehlers
On this occasion of the 40-year anniversary of this magazine, S&C Contributing Editor John Ehlers takes a look back at technical analysis history and reviews what we’ve come to understand about cycles in the financial markets. His years of technical research on this topic has led to insights and advancements that he has shared with us in many articles, and continues to share here.
Cycle analysis for technical analysis has come a long way since the launch of this magazine in 1982. Cycle analysis was pretty primitive back then. J.M. Hurst had established that patterns such as double tops, head & shoulders, and even Elliott waves could be synthesized with just a few harmonics of a fundamental sine wave ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18867.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-10-8-14-recurring-phase-of-cycle-analysis-by-john-f-ehlers-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-10-8-14-recurring-phase-of-cycle-analysis-by-john-f-ehlers-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40162fi,d,"{""minimum-quantity"":""1"",""path"":""ch11n2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:11 (12–15, 62): Filters On The Test Bench by Andrea Unger"",""caption-linebreaks"":""Filters On The Test Bench by Andrea Unger
In this article, we analyze the effects of an indecision pattern on trend-following models and try to answer the long-standing question: Are the results of this model repeatable or the result of chance?
A trading system consists of a set of rules. The more rules you have, the higher the risk of overfitting. This can lead to systems that only look good on paper, worked in the past, but didn’t stand the test of time ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18350.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-11-12-15-62-filters-on-the-test-bench-by-andrea-unger-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-11-12-15-62-filters-on-the-test-bench-by-andrea-unger-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov401loma,d,"{""minimum-quantity"":""1"",""path"":""ch11n2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:11 (16–21): Long-Term Market Breadth Analysis by Kevin Luo"",""caption-linebreaks"":""Long-Term Market Breadth Analysis by Kevin Luo
Are market breadth measurements an underused tool for gaining the best picture of the stock market? Here’s a study to demonstrate why you should be using this tool.
The market breadth is a technical indicator. It specifies how many stocks are participating in a given market direction at a given time. On the other hand, a major stock index is the average price of its component stocks ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18356.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-11-16-21-long-term-market-breadth-analysis-by-kevin-luo-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-11-16-21-long-term-market-breadth-analysis-by-kevin-luo-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov402putr,d,"{""minimum-quantity"":""1"",""path"":""ch11n2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:11 (22–25): Pullback Trading by Azeez Mustapha"",""caption-linebreaks"":""Pullback Trading by Azeez Mustapha
A few charting tools can help put price in context when classifying highs and lows. And having context for when price is relatively high or relatively low can help the trader to successfully trade pullbacks. Here’s an example strategy using the concept of pullback trading.
Trading can be very complex if the trader has not adequately defined his approach to the market. An inability to read the meaning of lines formed on the chart during trading will lead to inconsistency in trading. A rules-based approach with an edge is the first step to long-term profitability ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20127.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-11-22-25-pullback-trading-by-azeez-mustapha-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-11-22-25-pullback-trading-by-azeez-mustapha-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40236ho,d,"{""minimum-quantity"":""1"",""path"":""ch11n2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:11 (26–27, 36): How To Improve Any Trading Strategy by Dave Mabe"",""caption-linebreaks"":""How To Improve Any Trading Strategy by Dave Mabe
Don’t wait for drawdowns to hit before you make the effort to examine your profitability. Successful traders will routinely and systematically do this. Here’s how you can embrace this mindset and adopt these important concepts for improving your profitability.
You’ve done your research and you have a trading strategy that’s performing well and as expected. Sure, it could be improved, but as long as it’s profitable, you can just sit back and think about what to buy with your new income stream ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20130.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-11-26-27-36-how-to-improve-any-trading-strategy-by-dave-mabe-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-11-26-27-36-how-to-improve-any-trading-strategy-by-dave-mabe-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov402etfm,d,"{""minimum-quantity"":""1"",""path"":""ch11n2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:11 (28–36): ETF Marketplace Review: $7.2 Trillion AUM And Counting by Leslie N. Masonson"",""caption-linebreaks"":""ETF Marketplace Review: $7.2 Trillion AUM And Counting by Leslie N. Masonson
The first ETF, SPDR S&P 500 ETF Trust, was born on January 22, 1993 and has grown to $358.4 billion in AUM as of September 2, 2022. Its popularity is unrivaled. Join us here for a retrospective of the ETF industry, which has changed the investment landscape for millions of investors, while the mutual fund industry fortunes have begun to slow.
Over the years there have been some watershed events that have forever changed the financial markets landscape. Two of the most significant ones were the 1924 introduction of the first mutual fund and the 1993 launch of the first exchange-traded fund ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20133.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-11-28-36-etf-marketplace-review-7-2-trillion-aum-and-counting-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-11-28-36-etf-marketplace-review-7-2-trillion-aum-and-counting-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov403alqa1,d,"{""minimum-quantity"":""1"",""path"":""ch11n2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:11 (37): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
EVALUATING BACKTEST RESULTS
I just bought a new indicator package, and it performs great in a backtest. But in live trading, it only loses money. Can you help?
Your situation is not so unusual. There are many indicators and strategies out there being sold, and many of them claim to provide the “holy grail” of trading ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20136.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-11-37-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-11-37-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40362in1,d,"{""minimum-quantity"":""1"",""path"":""ch11n2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:11 (38–44, 62): Interview: A Conversation With Gregory Morris by Leslie N. Masonson"",""caption-linebreaks"":""Interview: A Conversation With Gregory Morris by Leslie N. Masonson
Gregory Morris has a 50-year investment career as a technical analyst, a prolific developer of indicators and trading systems, educational speaker, and an accomplished author of books on trend analysis, breadth, and candlesticks. Leslie Masonson interviewed Gregory Morris to discuss his indicator and systems development using technical analysis, his rules-based money management methodology, and his blog at StockCharts.com titled “Dancing With The Trend.”"",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20115.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-11-38-44-62-interview-a-conversation-with-gregory-morris-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-11-38-44-62-interview-a-conversation-with-gregory-morris-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40462ma,d,"{""minimum-quantity"":""1"",""path"":""ch11n2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:11 (45, 62): Market Rap by Emilio Tomasini"",""caption-linebreaks"":""Market Rap by Emilio Tomasini
A KILLER OF TRADING SUCCESS?
Nobody talks about it, but one of the keys to trading success is this: avoiding mistakes. A “mistake” is not some misjudgment about the future direction of the market ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20118.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-11-45-62-market-rap-by-emilio-tomasini-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-11-45-62-market-rap-by-emilio-tomasini-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40449ex,d,"{""minimum-quantity"":""1"",""path"":""ch11n2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:11 (46–47, 49): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
THE DOUBLE CALENDAR SPREAD
I am interested in neutral strategies, but I am concerned about getting assigned on short options if I trade butterflies, condors, or credit spreads. Is there an alternative?
One viable alternative is the “double calendar spread.” This strategy involves holding an out-of-the-money call calendar spread and an out-of-the-money put calendar spread simultaneously ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20121.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-11-46-47-49-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-11-46-47-49-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov404fufo5,d,"{""minimum-quantity"":""1"",""path"":""ch11n2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:11 (48–49): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
WHAT IS THE APPROPRIATE ACCOUNT SIZE FOR A BEGINNING COMMODITY TRADER?
The only person that can answer that question is the trader himself because any money put into a commodity trading account should be risk capital ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20124.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-11-48-49-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-11-48-49-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov405sate,d,"{""minimum-quantity"":""1"",""path"":""ch11n2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:11 (50–51): The Savvy Technician by Stella Osoba, CMT"",""caption-linebreaks"":""The Savvy Technician by Stella Osoba, CMT
CULTIVATE THE ART OF PERCEPTION
What we see is not always what is there. What is there is not always what we see. The visual illusion is a well-known psychological phenomena ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18383.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-11-50-51-the-savvy-technician-by-stella-osoba-cmt-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-11-50-51-the-savvy-technician-by-stella-osoba-cmt-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40561tr,d,"{""minimum-quantity"":""1"",""path"":""ch11n2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:11 (52–56, 61): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is John Ehlers’ article in the October 2022 issue, “Recurring Phase Of Cycle Analysis.” Here, we present the November 2022 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18386.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-11-52-56-61-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-11-52-56-61-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov406dafo,d,"{""minimum-quantity"":""1"",""path"":""ch11n2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:11 (60–61): Daytrading The FOMC Release by Ken Calhoun"",""caption-linebreaks"":""Daytrading The FOMC Release by Ken Calhoun
Here’s an approach you can use to daytrade major economic news or report releases using ETFs.
Whenever economic reports are released or interest rates are changed by the Federal Open Markets Committee (FOMC), markets often provide excellent daytrading opportunities ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18389.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-11-60-61-daytrading-the-fomc-release-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-11-60-61-daytrading-the-fomc-release-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov406leto,d,"{""minimum-quantity"":""1"",""path"":""ch11n2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:11 (6–7): Letters To S&C by Technical Analysis, Inc."",""caption-linebreaks"":""Letters To S&C by Technical Analysis, Inc.
DRAWING EHLERS LOOPS USING VISUAL BASIC
Editor,
\nIn the June and July 2022 issues in the articles “Ehlers Loops” and “Pairs Rotation With Ehlers Loops,” John Ehlers presents a charting technique he calls Ehlers Loops. I find that Ehlers Loops provide an interesting and quite different visual look at a security ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18344.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-11-6-7-letters-to-s-c-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-11-6-7-letters-to-s-c-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov408boyo,d,"{""minimum-quantity"":""1"",""path"":""ch11n2019"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:11 (8–11): Boost Your Strategy Development Part 1: The Optimizer Contest by René Koch, PhD"",""caption-linebreaks"":""Boost Your Strategy Development Part 1: The Optimizer Contest by René Koch, PhD
Trading strategies usually involve adjustable parameters, and trading strategy development involves optimizing those parameters to find the best inputs and variables for the most profitable results. Here is an overview of some available optimizer types, along with some insights into using current-generation software to help with this very important task.
There is constant debate about the usefulness and benefit of optimization in the development of trading strategies. Many have the opinion that “optimized” strategies do not perform in real-time trading. In this series of articles, I’ll show recent developments in the field and demonstrate some practices that result in working strategies ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18347.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-11-8-11-boost-your-strategy-development-part-1-the-optimizer-contest-by-ren-koch-phd-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-11-8-11-boost-your-strategy-development-part-1-the-optimizer-contest-by-ren-koch-phd-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov401diya,d,"{""minimum-quantity"":""1"",""path"":""ch12d2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:12 (16–19): DIY Annuity: Guaranteed Monthly Retirement Income by Lawrence Smith"",""caption-linebreaks"":""DIY Annuity: Guaranteed Monthly Retirement Income by Lawrence Smith
Here is an example of a way that retiree-investors could sell puts to generate income.
Every day, 10,000 fellow baby boomers retire in the US. This trend is expected to continue until 2030. If there is a low interest rate environment, it’s difficult to find safe retirement income-generating securities. FDIC-insured bank CDs pay just pennies ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20564.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-12-16-19-diy-annuity-guaranteed-monthly-retirement-income-by-lawrence-smith-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-12-16-19-diy-annuity-guaranteed-monthly-retirement-income-by-lawrence-smith-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40241lo,d,"{""minimum-quantity"":""1"",""path"":""ch12d2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:12 (20–23, 41): Locating Trade Opportunities With Candlestick Analysis by Stephen W. Bigalow"",""caption-linebreaks"":""Locating Trade Opportunities With Candlestick Analysis by Stephen W. Bigalow
As a testament to the power of candlestick chart analysis, you can use candlestick scanning techniques to help reveal which sectors or securities are showing the strongest signals.
Candlestick charts reveal some very powerful truisms. This is because the candlesticks are based on the most consistent investing indicator in the world—human nature ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20561.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-12-20-23-41-locating-trade-opportunities-with-candlestick-analysis-by-stephen-w-bigalow-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-12-20-23-41-locating-trade-opportunities-with-candlestick-analysis-by-stephen-w-bigalow-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov402cran,d,"{""minimum-quantity"":""1"",""path"":""ch12d2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:12 (24–27): Cryptocurrencies And Seasonality: Crypto Summer Part 1 by Azeez Mustapha"",""caption-linebreaks"":""Cryptocurrencies And Seasonality: Crypto Summer Part 1 by Azeez Mustapha
Did you know a pattern exists in cryptocurrencies where two years of a bear market are often followed by two years of a bull market? This is a type of seasonality that you can profit by, both on the short and long side. Here is what to look for to help spot the crypto summer pattern.
The success of a trader is very dependent on his or her trading psychology. Some traders like to always have their hands busy. Others are passive in their trading style for a good part of the time ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20558.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-12-24-27-cryptocurrencies-and-seasonality-crypto-summer-part-1-by-azeez-mustapha-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-12-24-27-cryptocurrencies-and-seasonality-crypto-summer-part-1-by-azeez-mustapha-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov402inco,d,"{""minimum-quantity"":""1"",""path"":""ch12d2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:12 (28–35): Interview: A Conversation With Katie Stockton by Leslie N. Masonson"",""caption-linebreaks"":""Interview: A Conversation With Katie Stockton by Leslie N. Masonson
Katie Stockton, CMT, is founder and managing partner of Fairlead Strategies, LLC (FairleadStrategies. com), an independent research firm and investment advisor founded in 2018. The firm uses technical analysis as its main tool to discern the stock market’s health and to select and recommend investments to individual and institutional clients. Through the firm, Stockton and her team offer research and consulting services, providing multiple reports throughout the week with their current recommendations ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-12-28-35-interview-a-conversation-with-katie-stockton-by-leslie-n-masonson-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-12-28-35-interview-a-conversation-with-katie-stockton-by-leslie-n-masonson-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-12-28-35-interview-a-conversation-with-katie-stockton-by-leslie-n-masonson-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov403siro,d,"{""minimum-quantity"":""1"",""path"":""ch12d2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:12 (36–40): A Simple Rotation Strategy With Sector ETFs by Yi Hui Yang and Eugene Pinsky, PhD"",""caption-linebreaks"":""A Simple Rotation Strategy With Sector ETFs by Yi Hui Yang and Eugene Pinsky, PhD
Here is a portfolio rebalancing technique that’s simple enough for an individual trader to perform on a monthly basis.
In recent years, sector ETFs have been widely used to provide diversification and in portfolio construction. Portfolio managers who chose to use a sector-based strategy to gain a performance edge may have a different focus. Some may invest in business cycles ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20073.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-12-36-40-a-simple-rotation-strategy-with-sector-etfs-by-yi-hui-yang-and-eugene-pinsky-phd-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-12-36-40-a-simple-rotation-strategy-with-sector-etfs-by-yi-hui-yang-and-eugene-pinsky-phd-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40445ma,d,"{""minimum-quantity"":""1"",""path"":""ch12d2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:12 (42, 45): Market Rap by Emilio Tomasini"",""caption-linebreaks"":""Market Rap by Emilio Tomasini
SHOULD WE GIVE UP ON THE HEAD-AND-SHOULDERS PATTERN?
The head-and-shoulders pattern is a classic, renowned price pattern that technicians traditionally look for on the chart. For many years it has been considered a useful pattern to spot ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20076.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-12-42-45-market-rap-by-emilio-tomasini-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-12-42-45-market-rap-by-emilio-tomasini-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40445al,d,"{""minimum-quantity"":""1"",""path"":""ch12d2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:12 (43, 45): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
LOCKING IN PROFITS
While monitoring automated strategies I am very tempted to lock in profit if I see a specific strategy has accumulated some. Do you also experience this and is it wise to do?
This is a great question, one faced by most algo traders at some time or another. Open profits are tempting to cash in, and if one times it correctly, they can re-enter at a better price and then be in sync again with their algo ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20079.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-12-43-45-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-12-43-45-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40447da,d,"{""minimum-quantity"":""1"",""path"":""ch12d2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:12 (44, 47): Day Trading Whole-Number Ladders by Ken Calhoun"",""caption-linebreaks"":""Day Trading Whole-Number Ladders by Ken Calhoun
Climbing the ladder of trading success may be made easier by laddering your trades. Find out how.
Scaling in to winning trades, or using a sequence of entries, is a valuable trading technique you can use for both day and swing trading ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-12-44-47-day-trading-whole-number-ladders-by-ken-calhoun-26.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-12-44-47-day-trading-whole-number-ladders-by-ken-calhoun-29.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-12-44-47-day-trading-whole-number-ladders-by-ken-calhoun-30.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov404fufo6,d,"{""minimum-quantity"":""1"",""path"":""ch12d2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:12 (46–47): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
OVERNIGHT TRADING
Do all commodities trade overnight? Is that an advantage or disadvantage?
Most, but not all, futures markets trade around the clock. Because the CME Group exchange started as four separate exchanges, it is no surprise each division has a different idea of when markets should be open for trading ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20064.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-12-46-47-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-12-46-47-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov404trti3,d,"{""minimum-quantity"":""1"",""path"":""ch12d2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:12 (48–55): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Barbara Star’s article in this issue, “Short-Term Continuation And Reversal Signals.” Here, we present the December 2022 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20067.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-12-48-55-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-12-48-55-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40656tr,d,"{""minimum-quantity"":""1"",""path"":""ch12d2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:12 (60–62, 56): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
SYMPATHY, STREAKS, & SEASONALITY
This month, I’m going to talk about three areas that can provide traders with useful insights and potential trading edges when searching for trade opportunities ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20070.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-12-60-62-56-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-12-60-62-56-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40627ex,d,"{""minimum-quantity"":""1"",""path"":""ch12d2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:12 (6–7, 27): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
SHORT-TERM CREDIT SPREADS
I am interested in selling short-term credit spreads to generate income. But there are so many potential choices regarding which spread to choose. Are there any guidelines for selecting the best spread?
Yes and no. There are potential guidelines that a trader can apply, but there is no such thing as “the best spread” ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20555.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-12-6-7-27-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-12-6-7-27-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov408shco,d,"{""minimum-quantity"":""1"",""path"":""ch12d2018"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:12 (8–15): Short-Term Continuation And Reversal Signals by Barbara Star, PhD"",""caption-linebreaks"":""Short-Term Continuation And Reversal Signals by Barbara Star, PhD
Combining two classic oscillators, the directional movement oscillator and the commodity channel index, and adding a few twists described here can help you more easily recognize price continuations and reversals that take place within a trend.
Finding a trend and sticking with it is the goal of many traders. But even in strongly trending markets, minor price retracements and consolidations occur that can shake them ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20552.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-12-8-15-short-term-continuation-and-reversal-signals-by-barbara-star-phd-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-12-8-15-short-term-continuation-and-reversal-signals-by-barbara-star-phd-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40122ti,d,"{""minimum-quantity"":""1"",""path"":""ch13bis2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:13 (14–15, 22): Timing The Trade: Knowing When To Switch Horses by Matt Blackman"",""caption-linebreaks"":""Timing The Trade: Knowing When To Switch Horses by Matt Blackman
Careful analysis is one essential component of making successful trades. Admitting you were wrong is another.
As any expert will tell you, the keys to making a successful trade are performing your analysis, choosing the highest-probability entry points, identifying and confirming trade setups, and, once you are in the trade, choosing exit points ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18786.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-13-14-15-22-timing-the-trade-knowing-when-to-switch-horses-by-matt-blackman-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-13-14-15-22-timing-the-trade-knowing-when-to-switch-horses-by-matt-blackman-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov401whca,d,"{""minimum-quantity"":""1"",""path"":""ch13bis2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:13 (16–19): What Can We Learn From Tesla Inc.? by Vincent Shi"",""caption-linebreaks"":""What Can We Learn From Tesla Inc.? by Vincent Shi
In a search for the next success story to invest in, this student investor finds that stocks which have correlated most closely with Tesla’s stock price over a given time period become worthy investment candidates to consider.
It was probably three or four years ago when I came across an image of the first car Tesla ever made, the Roadster. As a student investor, I became interested in the company ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18341.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-13-16-19-what-can-we-learn-from-tesla-inc-by-vincent-shi-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-13-16-19-what-can-we-learn-from-tesla-inc-by-vincent-shi-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov402mami,d,"{""minimum-quantity"":""1"",""path"":""ch13bis2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:13 (20–22): Magical Midpoint Of 52-Week High & Low by Ketan Asher"",""caption-linebreaks"":""Magical Midpoint Of 52-Week High & Low by Ketan Asher
This easy-to-use and easy-to-understand technique helps you to locate opportunities on the chart for securities as they approach their 52-week midpoint.
Technical studies require clear understanding of the particular indicator to work for you. The concept I will explain in this article is so simple that you need to consider only one level for each stock ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18789.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-13-20-22-magical-midpoint-of-52-week-high-low-by-ketan-asher-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-13-20-22-magical-midpoint-of-52-week-high-low-by-ketan-asher-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40244up,d,"{""minimum-quantity"":""1"",""path"":""ch13bis2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:13 (23, 44): The Upper-Right Of The Chart Is Not Resistance by Stella Osoba, CMT"",""caption-linebreaks"":""The Upper-Right Of The Chart Is Not Resistance by Stella Osoba, CMT
What goes up comes down, but when?
One mistake that some people make is to look at a chart in a defined trend and think because it has reached the top of the chart (in an uptrend), price has to decline ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18353.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-13-23-44-the-upper-right-of-the-chart-is-not-resistance-by-stella-osoba-cmt-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-13-23-44-the-upper-right-of-the-chart-is-not-resistance-by-stella-osoba-cmt-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov402loat,d,"{""minimum-quantity"":""1"",""path"":""ch13bis2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:13 (26–29): A Look At The Money Flow Index by John Devcic"",""caption-linebreaks"":""A Look At The Money Flow Index by John Devcic
The money flow index is a long-standing popular indicator that helps you see whether money is moving into or out of securities in the context of volume. Find out how it’s calculated and how it’s used.
Traders of all skill levels are always looking for an edge. That edge often comes in the form of a tool or a number of tools that can give them a heads-up on current trend levels or potential changes in trend direction ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20537.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-13-26-29-a-look-at-the-money-flow-index-by-john-devcic-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-13-26-29-a-look-at-the-money-flow-index-by-john-devcic-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40320re,d,"{""minimum-quantity"":""1"",""path"":""ch13bis2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:13 (30–38): 2022 Readers’ Choice Awards by Technical Analysis, Inc."",""caption-linebreaks"":""2022 Readers’ Choice Awards by Technical Analysis, Inc.
We are pleased to present the Technical Analysis of STOCKS & COMMODITIES magazine 2022 Readers’ Choice Awards (RCA). Each year, we put before our readers a ballot of products and services related to technical analysis and trading. The following pages present the products and services you and your peers chose this year as your favorites.
The Readers’ Choice Awards begins each year with a list of products gathered by the editors of STOCKS & COMMODITIES, with space for write-in votes (given that our list doesn’t claim to be complete). Then, to find out what our readers find to be the most useful for their trading, we ask them to choose their favorite products or the ones they find most useful from various categories by going to our website, Traders.com, and filling out the survey there ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20139.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-13-30-38-2022-readers-choice-awards-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-13-30-38-2022-readers-choice-awards-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40343tr,d,"{""minimum-quantity"":""1"",""path"":""ch13bis2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:13 (39, 43): Traders.com Advantage Articles by Technical Analysis, Inc."",""caption-linebreaks"":""Traders.com Advantage Articles by Technical Analysis, Inc.
Here is a sample of the articles you missed in 2021 if you weren’t a subscriber ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20534.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-13-39-43-traders-com-advantage-articles-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-13-39-43-traders-com-advantage-articles-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov404scar,d,"{""minimum-quantity"":""1"",""path"":""ch13bis2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:13 (40–43): S&C Articles by Technical Analysis, Inc."",""caption-linebreaks"":""S&C Articles by Technical Analysis, Inc.
If you weren’t subscribing to Technical Analysis of STOCKS & COMMODITIES, The Traders’ Magazine, throughout 2021, you missed out on a lot of information. Here is some of what you missed ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20112.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-13-40-43-s-c-articles-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-13-40-43-s-c-articles-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov40650ye,d,"{""minimum-quantity"":""1"",""path"":""ch13bis2010"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 40:13 (6–13): 50 Years On, What Have I Learned? by Perry J. Kaufman"",""caption-linebreaks"":""50 Years On, What Have I Learned? by Perry J. Kaufman
Here, we offer up a collection of 20 market observations and market wisdoms from someone with more than 50 years of experience in trading, studying, and analyzing the financial markets. The first edition of his book Trading Systems and Methods in 1978 played a part in helping to launch the modern-day field of technical analysis. Take a walk through time and discover what long experience can tell us when it comes to looking at the markets.
As time passes, we tend to forget older events in favor of more recent. I forgot how much hair I had. But there is a lot to learn by studying the past ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20082.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-13-6-13-50-years-on-what-have-i-learned-by-perry-j-kaufman-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-40-13-6-13-50-years-on-what-have-i-learned-by-perry-j-kaufman-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov411mama,d,"{""minimum-quantity"":""1"",""path"":""ch1j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 41:01 (16–21): Matching The Markets To Your Trading Style by Perry J. Kaufman"",""caption-linebreaks"":""Matching The Markets To Your Trading Style by Perry J. Kaufman
Traders can choose to use a trend-following method or a mean-reversion method depending on the market, but how can you tell when and where to apply each? Here’s a way you can know.
As much as we would like to think otherwise, not all markets will be profitable with all trading styles. Part of being a successful trader is knowing which markets work with your strategies ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18756.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-41-01-16-21-matching-the-markets-to-your-trading-style-by-perry-j-kaufman-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-41-01-16-21-matching-the-markets-to-your-trading-style-by-perry-j-kaufman-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov412trra,d,"{""minimum-quantity"":""1"",""path"":""ch1j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 41:01 (22–27): True Range Adjusted Exponential Moving Average (TRAdj EMA) by Vitali Apirine"",""caption-linebreaks"":""True Range Adjusted Exponential Moving Average (TRAdj EMA) by Vitali Apirine
Combine some classic indicators in this unique way and you will get buy and sell signals to consider using while in the presence of strong trends.
The true range adjusted exponential moving average (TRAdj EMA) is designed to account for true range. True range measures a stock’s or index’s volatility ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20328.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-41-01-22-27-true-range-adjusted-exponential-moving-average-tradj-ema-by-vitali-apirine-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-41-01-22-27-true-range-adjusted-exponential-moving-average-tradj-ema-by-vitali-apirine-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov412inco,d,"{""minimum-quantity"":""1"",""path"":""ch1j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 41:01 (28–35): Interview: A Conversation With Peter Eliades by Leslie N. Masonson"",""caption-linebreaks"":""Interview: A Conversation With Peter Eliades by Leslie N. Masonson
Peter Eliades has been offering stock market cycle analysis for half a century. His analysis identifies key short- and long-term market highs and lows. He published the Stock Market Cycles newsletter for 36 years ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20325.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-41-01-28-35-interview-a-conversation-with-peter-eliades-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-41-01-28-35-interview-a-conversation-with-peter-eliades-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov413sate,d,"{""minimum-quantity"":""1"",""path"":""ch1j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 41:01 (36–37): The Savvy Technician by Stella Osoba"",""caption-linebreaks"":""The Savvy Technician by Stella Osoba
DO NOT INVEST IN THE PRESENT
It has been a really hard year to make a profit in the stock market. With high inflation and increasing interest rates, risk assets such as stocks are vulnerable ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20334.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-41-01-36-37-the-savvy-technician-by-stella-osoba-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-41-01-36-37-the-savvy-technician-by-stella-osoba-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov413mero,d,"{""minimum-quantity"":""1"",""path"":""ch1j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 41:01 (38–44): The Metaverse’s Rosy Future Lies Ahead, Or Does It? by Leslie N. Masonson"",""caption-linebreaks"":""The Metaverse’s Rosy Future Lies Ahead, Or Does It? by Leslie N. Masonson
In newer technology spaces such as the “metaverse,” investors need to consider whether they want to get in near the ground floor or take a “wait and see” approach to find out if the technology truly takes off. Here’s a close look at ETFs related to the metaverse industry to help you consider whether any of these recently launched ETFs deserve a place in your portfolio.
Investing in ETFs related to the metaverse space could offer a window of opportunity into the next iteration of social media, as well as the next phase of remote work, gaming, productivity tools, and e-commerce applications ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20331.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-41-01-38-44-the-metaverse-s-rosy-future-lies-ahead-or-does-it-by-leslie-n-masonson-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-41-01-38-44-the-metaverse-s-rosy-future-lies-ahead-or-does-it-by-leslie-n-masonson-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov41455al,d,"{""minimum-quantity"":""1"",""path"":""ch1j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 41:01 (46, 55): Algo Q&A by Kevin J. Davey"",""caption-linebreaks"":""Algo Q&A by Kevin J. Davey
A PORTFOLIO OF STRATEGIES?
I am considering algo trading. I have a mid-six-figure account. I am an experienced futures trader. Should I try to create one strategy and trade with big size, or should I aim for multiple strategies with small size?
Thanks for the question. I will assume that you know the proper way to design, develop, and test algo strategies ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20471.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-41-01-46-55-algo-q-a-by-kevin-j-davey-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-41-01-46-55-algo-q-a-by-kevin-j-davey-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov41455sw,d,"{""minimum-quantity"":""1"",""path"":""ch1j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 41:01 (47, 55): Swing Trading 52-Week Low Pivot by Ken Calhoun"",""caption-linebreaks"":""Swing Trading 52-Week Low Pivot by Ken Calhoun
Here is a trading technique based on a pivot pattern that buys following a 52-week low support level.
This month, we’ll look at trading pivot patterns using 52-week low support levels (trading a leveraged inverse ETF) ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20468.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-41-01-47-55-swing-trading-52-week-low-pivot-by-ken-calhoun-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-41-01-47-55-swing-trading-52-week-low-pivot-by-ken-calhoun-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov414fufo,d,"{""minimum-quantity"":""1"",""path"":""ch1j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 41:01 (48–49): Futures For You by Carley Garner"",""caption-linebreaks"":""Futures For You by Carley Garner
SOFR FUTURES
What are SOFR futures and what does their existence mean for euro-dollars?
Let’s start with the definition of SOFR: the Secured Overnight Financing Rate is a broad measure of borrowing cash overnight collateralized by Treasury securities ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20477.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-41-01-48-49-futures-for-you-by-carley-garner-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-41-01-48-49-futures-for-you-by-carley-garner-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov415trti,d,"{""minimum-quantity"":""1"",""path"":""ch1j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 41:01 (50–55): Traders’ Tips by Technical Analysis, Inc."",""caption-linebreaks"":""Traders’ Tips by Technical Analysis, Inc.
For this month’s Traders’ Tips, the focus is Vitali Apirine’s article in this issue “True Range Adjusted Exponential Moving Average (TRAdj EMA).” Here, we present the January 2023 Traders’ Tips code with possible implementations in various software.
The code for the following Traders’ Tips selections is posted here:
• Traders.com > Home–S&C Magazine > Traders’ Tips
At Traders.com you can also right-click on any chart to open it in a new tab or window and view the chart at a much larger size.
The Traders’ Tips section is provided to help readers implement a selected technique from an article in this issue or another recent issue. The entries here are contributed by software developers or programmers for software that is capable of customization."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20474.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-41-01-50-55-traders-tips-by-technical-analysis-inc-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-41-01-50-55-traders-tips-by-technical-analysis-inc-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov41562ma,d,"{""minimum-quantity"":""1"",""path"":""ch1j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 41:01 (56, 62): Market Rap by Emilio Tomasini"",""caption-linebreaks"":""Market Rap by Emilio Tomasini
INDICATORS—CAN’T LIVE WITH ’EM, CAN’T LIVE WITHOUT ’EM?
My feelings about indicators have varied over the decades that I have spent in the markets. In the beginning, almost 30 years ago, I thought success depended completely on the choice of indicator, which would magically show the market’s turning points ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20085.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-41-01-56-62-market-rap-by-emilio-tomasini-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-41-01-56-62-market-rap-by-emilio-tomasini-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov416trpe,d,"{""minimum-quantity"":""1"",""path"":""ch1j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 41:01 (60–62): Trading Perspectives by Rob Friesen"",""caption-linebreaks"":""Trading Perspectives by Rob Friesen
TRADE NOT WHAT YOU SEE, BUT WHAT WILL BE. THIS IS THE WAY FOR 2023!
The main practice among retail traders and to some degree institutional players is to trade what is visible, witnessed, and evident ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-20088.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-41-01-60-62-trading-perspectives-by-rob-friesen-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-41-01-60-62-trading-perspectives-by-rob-friesen-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov41615ex,d,"{""minimum-quantity"":""1"",""path"":""ch1j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 41:01 (6–7, 15): Explore Your Options by Jay Kaeppel"",""caption-linebreaks"":""Explore Your Options by Jay Kaeppel
ORGANIZING YOUR APPROACH WITH THE PROVEST METHOD
I am trying to develop an organized approach to trading options that considers the most critical factors. Any suggestions?
One approach to this task is one I refer to as “the PROVEST method.” PROVEST is an acronym for the following factors ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18744.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-41-01-6-7-15-explore-your-options-by-jay-kaeppel-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-41-01-6-7-15-explore-your-options-by-jay-kaeppel-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"
stcov418boyo,d,"{""minimum-quantity"":""1"",""path"":""ch1j2014"",""leaf"":""1"",""template"":""storetemplate."",""ysw-page-title"":""Stocks & Commodities V. 41:01 (8–15): Boost Your Strategy Development Part 2: The SMAC Optimizer by René Koch, PhD"",""caption-linebreaks"":""Boost Your Strategy Development Part 2: The SMAC Optimizer by René Koch, PhD
Trading strategies usually involve adjustable parameters, and trading strategy development involves optimizing those parameters to find the best inputs and variables for the most profitable results. Here is a look at using the SMAC optimizer algorithm for the optimization of trading strategies.
There is constant debate about the usefulness and benefit of optimization in the development of trading strategies ..."",""imageFields"":{""image"":{""url"":""https://s.turbifycdn.com/aah/traderscom/thumbnail-18759.gif"",""height"":""360"",""width"":""272""},""image-amp-main"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-41-01-8-15-boost-your-strategy-development-part-2-the-smac-optimizer-by-ren-koch-phd-5.gif"",""height"":""200"",""width"":""360"",""type"":""amp-main""},""image-amp-inset"":{""url"":""https://s.turbifycdn.com/aah/traderscom/stocks-commodities-v-41-01-8-15-boost-your-strategy-development-part-2-the-smac-optimizer-by-ren-koch-phd-6.gif"",""height"":""100"",""width"":""100"",""type"":""amp-inset""}},""relations"":[]}"