ALL ABOUT TECHNICAL ANALYSIS

Stan Weinstein's Secrets For Profiting in Bull and Bear Markets (Paperback)

2006-04-15T01:38:00.000+08:00

"Stocks form bottoms when the current news is terrible and top out when the public is ecstatic about glowing earnings reports, stock splits, and so on. It’s therefore not surprising that typical traders and investors buy near the top, when the news is great, and then dump their stock for big losses, near the low, when the media are reporting ghastly news. It’s not luck (good or bad) that causes consistent losses for the public and consistent profits for the real professionals, but the rules by which the two groups are playing. It’s really no different from a professional poker player who understands the odds and refuses to pull to an inside straight, while the amateur lets his hunches and feelings lead him into losses."

The above is a quote from Stan Weinstein’s book Secrets for Profiting in Bull and Bear Markets.

http://www.amazon.com/gp/product/1556236832/ref=sib_rdr_dp/103-2671716-1265425?me=ATVPDKIKX0DER&no=283155&st=books&n=283155

Understanding Technical Analysis

2006-04-13T16:57:00.000+08:00

Two good Books:

The Technical Analysis Course
by: Thomas A. Meyer
Available From Equis International
1-800-882-3040

Technical Analysis From A to Z
by: Steven B. Achelis
Also Available From Equis International

Notice! ...... Both books can usually be found in most public libraries.

Technical analysis is a very reliable tool for forecasting market trendsand timing market changes. Technical analysis can be very accurate. It isalso very ... unemotional. It has been proven time and again that stocksmove in trends. Technical analysis is used to spot those trends.

Technical analysis is best defined as ... the study of individual securitiesand the overall market based on supply and demand. Technicians usecharts and graphs to study past and future probability of stock prices.Historical stock price and volume activity is used to program their charts.

http://www.stockmarketroundup.com/page26.html

Introduction to Fundamental Analysis

2006-04-12T19:05:00.000+08:00

As the market relentlessly calls into question virtually every portion of your stock portfolio, even the most independent-minded investor can start doubting himself. You wonder, did I make the right decisions when I bought these stocks? To answer yourself in any rational fashion, you need to be able to judge whether circumstances, not just psychology, have changed for your holdings.

In times like these, strong fundamental analysis becomes key to your conviction. With this in mind, welcome to our five-part series on the how-to of fundamental analysis: what it is, how to read a balance sheet, and how to read an income statement.

As the pundits rant about Russia, rate cuts, devaluation and deflation, you're probably looking at your now-droopy portfolio thinking, "This is the same bunch of stocks I owned happily a month ago. How did the world get so ugly so fast?"

It's a good question, because chances are your companies haven't changed much. It's investor psychology that has.

You could try to chase that psychology by day trading. Or you could opt out of the daily grind altogether, on the theory that you know your companies' prospects as well or better than anyone. In the long run you'll be vindicated. Psychology dissipates, fundamentals endure.

The Internet -- long hailed as a day-trader's dream -- actually provides the weapons investors need to do serious company analysis. Sure, the Net can give traders the unprecedented ability to skim teenies off the volatility du jour from the comfort of their living room. But it also provides investors with nearly unlimited access to the financial data needed for fundamental analysis of a company's future.

To understand the difference between pure fundamental analysis a la Warren Buffett and its day-trading cousin, technical analysis, think of the market as an open-air bazaar with stocks as items for sale. A technical analyst would wade into the shopping frenzy with eyes seeking the crowd. He would ignore the goods for sale altogether.

http://www.thestreet.com/basics/fundamental/145556.html

Averaging Up a Winner is Good

2006-04-12T00:16:00.000+08:00

Averaging Up a Winner is Good; Averaging Down a Loser is Bad.

Averaging a loser is a no no. If a market is going against you -- it is not a time to acquire more at "cheaper prices". Don't do it .

On the other hand, adding to a position or averaging up or pyramiding -- is smart.

Sales often draw big crowds, and understandably so. But don't seek discounts when it comes to investing. Sure, it may be tempting to add shares of a stock you own if it moves down in price from what you paid for your initial investment. But that can be dangerous, especially if it pulls back on heavy volume. Why risk a bigger fall by buying when a stock gets weaker? Better to average up when a winning stock displays strength. A stock that breaks out of a sound base into new high ground shows support from mutual funds and other big players. Pyramiding, as the process is called, helps lower risk since you invest less money at higher prices.

http://www.turtletrader.com/average-up.html

Using Technical Analysis by Cliff Pistolesse

2006-04-10T19:20:00.000+08:00

For today's investor, a thorough understanding of technical analysis can mean the difference between realizing substantial gains or mediocre returns. As a part of a series of outstanding self-teaching seminars, Using Technical Analysis is designed to immerse the investor in the essentials of implementing and interpreting technical analysis techniques in order to make more profitable investment decisions.

In this roll-up-the-sleeves, innovative home workshop, expert Clifford Pistolese presents a unique system designed to help you use and analyze stock market charts...a system essential to learning all there is to know about how the market rises or falls. To help you learn technical analysis, this convenient volume utilizes extensive self-teaching materials. The author first explains a complete array of iinformation on using technical analysis, then presents simulated exercises to assess your understanding of the subject.

Individual investors, financial advisors and consultants, stock brokers, traders, and other investment professionals interested in the advantages of using technical analysis should not be without this definitive source.

http://store.yahoo.com/stockcharts/usteanclpi.html

Authoritative ... all-inclusive ... and up-to-date!

2006-04-09T19:17:00.000+08:00

This is an invaluable tool for traders/investors at all experience levels. In John Murphy's latest book, Technical Analysis of the Financial Markets, he takes the principles from his 1986 best-selling book and expands it to cover all the financial markets. If you invest in the stock market, this is an investment you cannot overlook.

Learn the fundamentals of technical analysis and chart construction Guides you from the basics of charting through the latest computer technology Shows you 400 real-life charts that clarify every key point Teaches you how to pull it all together and make it work for you.

Cited in research studies by the Federal Reserve, John Murphy's Technical Analysis of the Futures Markets, a comprehensive guide to the concepts of technical analysis and their applications to the futures markets, is widely considered the "bible" in its field. Now, in response to widespread demand, John Murphy has completely updated and revised this landmark volume, broadened its scope, and expanded it to cover all financial markets.

http://store.yahoo.com/stockcharts/teanoffimajo.html

ASL MARINE

2006-04-08T21:38:00.000+08:00

Bearish Alert: Dragron Fly Doji below 20 and 50 days simple moving average.

Resistances:

1. 50 day simple moving average at 72.5 cents

2. 20 day simple moving average at 73 cents

3. Green Bold Line at 74 cents

Support:

1. Blue dotted line at 71.5 cents

2. Green dash line at 70.5 cents

3. Pink dash line at 69.5 cents

Jesse Livermore

2006-04-07T23:15:00.000+08:00

Jesse Livermore, though he died over forty years ago, is still known today as one of the most colorful, flamboyant and respected market speculators of all time. Known by such epithets such as “Boy Plunger”, the “Great Bear”, “The Wall Street Wonder ”and the “Cotton King”, Livermore both made, and subsequently lost, four multi-million dollar fortunes during his career as a speculator, which spanned three decades.

The man who was blamed for the 1929 crash and for precipitating in every market break from 1917 to 1940.

For the reader who is fascinated, as I always have been, with the life of Jesse Livermore, the King of the Speculators, I whole heartedly recommend that you read through the most sought after and best selling book ever written on the stock market.

http://www.stressfreetrading.com/jesselivermore.htm

J.M. HURST CYCLE TRADING

2006-04-06T17:09:00.000+08:00

THE CYCLE CULT

J.M. Hurst is a minor cult figure. Like Gann and Elliott before him the complexity of his methods spawns a cadre of 'experts' whose only goal is to invest themselves as high priests entrusted with the knowledge to find the right anniversay date, the right wave count, and the right cycle. Nevermind that the original authors themselves were trying to make a better hole not a fancier drill.

OUR BOOK IS ABOUT HURST BUT NOT ABOUT CYCLES

That's not what we're about. On the site and in our trading books we look for the hidden keystone of knowledge that makes the complex work of these genius pioneers useable and reliable even if they never consciously intended it that way. We believe that we have accomplished that with J.M. Hurst who established his place in trading history with his original work, The Profit Magic of Stock Transaction Timing
The full implementation of Hurst's work is not for the mathematically challenged. We got the book in 1982 and spent months getting through it so that we could do the Fourier and the digital filters, and print Hurst charts onto a dot matrix printer complete with envelopes and inverse averages. It doesn't seem that long ago but if you wanted to test with historical data you needed a room full of Barrons and the WSJ.

http://www.tradingfives.com/store/hurstbook.html

Aroon

2006-04-05T18:36:00.000+08:00

Description

The Aroon indicator was developed by Tushar Chande. Aroon is a Sanskrit word meaning “dawn’s early light” or the change from night to day. The Aroon indicator allows you to anticipate changes in security prices from trending to trading range. For more information on the Aroon indicator see the article written by Tushar Chande in the September 1995 issue of Technical Analysis of Stocks & Commodities magazine.

These changes are anticipated by measuring the number of periods that have passed since the most recent x-period high and x-period low. Therefore, the Aroon indicator consists of two plots; one measuring the number of periods since the most recent x-period high (Aroon Up) and the other measuring the number of periods since the most recent x-period low (Aroon Down).

The actual plotted value is a “stochastic” like scale ranging from 0 to 100. Assuming a default time-period of 14 days, if a security makes a new 14-day high, the Aroon Up = 100; when the security makes a new 14-day low, the Aroon Down = 100. When the security has not made a new high for 14 days, the Aroon Up = 0; when the security has not made a new low for 14 days, the Aroon Down = 0.

As explained in the interpretation section for the VHF indicator the age-old problem for many trading systems is their inability to determine if a trending or trading range market is at hand. Trend-following indicators such as MACD and moving averages, tend to be whipsawed as markets enter a non-trending congestion phase. On the other hand, overbought/oversold oscillators (which work well during trading range markets) tend to overreact to price pull-backs during trending markets—thereby closing a position prematurely. The Aroon indicator attempts to remedy this by helping you determine when trend-following or overbought/oversold indicators are likely to succeed.

Interpretation

There are basically three conditions that you look for when interpreting the Aroon indicator: extremes at 0 and 100, parallel movement between Aroon Up and Aroon Down, and crossovers between Aroon Up and Aroon Down.

Extremes:

When the Aroon Up line reaches 100, strength is indicated. If the Aroon Up remains persistently between 70 and 100, a new uptrend is indicated. Likewise if the Aroon Down line reaches 100, potential weakness is indicated. If the Aroon Down remains persistently between 70 and 100, a new downtrend is indicated.

A strong uptrend is indicated when the Aroon Up line persistently remains between 70 and 100 while the Aroon Down line persistently remains between 0 and 30. Likewise a strong downtrend is indicated when the Aroon Down line persistently remains between 70 and 100 while the Aroon Up line persistently remains between 0 and 30.

Parallel Movement:

When the Aroon Up and Aroon Down Lines move parallel with each other (are roughly at the same level), then consolidation is indicated. Expect further consolidation until a directional move is indicated by an extreme level or a crossover.

Crossovers:

When the Aroon Down line crosses above the Aroon Up line, potential weakness is indicated. Expect prices to begin trending lower. When the Aroon Up line crosses above the Aroon Down line, potential strength is indicated. Expect prices to begin trending high

http://www.paritech.com/education/technical/indicators/trend/aroon.asp

Aroon indicator

2006-04-04T19:24:00.000+08:00

What is it

The Aroon was developed by Tushar Chande in mid-ninetees. It is a trend indicator - used to determine if the security is moving in a trend or sideways, as well as how strong the trend is.

If the price of a security is rising, the Close for the period will be closer to the end of the period, and vice versa. The Aroon indicator shows how much time passed between the highest (up) or lowest (down) Close since the beginning of a period (in percents).

Calculation

The following formula is used to calculate Aroon indicator. It consists of two lines - Aroon(up) and Aroon(down), and the resulting Aroon Oscillator is the difference between them.

Aroon(up) = ((total_num_of_periods - num_of_periods_since_highest_close) / total_num_of_periods) x 100

Aroon(down) = ((total_num_of_periods - num_of_periods_since_lowest_close) / total_num_of_periods)) x 100

Aroon(oscillator) = Aroon(up) - Aroon(down)
Usage

When Aroon(up) and Aroon(down) are moving together, there is no clear trend (the price is moving sideways, or about to move sideways).

When the Aroon(up) is below 50, it is an indication that the uptrend is losing its momentum, while when the Aroon(down) is below 50, it is an indication that the downtrend is losing its momentum.

When the Aroon(up) or Aroon(down) are above 70, it indicate a strong trend in the same direction, while when the value is below 30, it indicates a trend coming in an opposite direction.

Finally, for the Aroon Oscillator, the positive value indicates an upward trend (or coming trend), and the negative value indicates a downward trend. The higher the absolute value of an oscillator, the stronger is an indication of a trend.

http://trader.snowseed.com/aroon.htm

A Little Keltner, a Little Wyckoff, and a Lot of Street Smarts

2006-04-03T18:01:00.000+08:00

Linda Raschke, renowned financial trader and speaker, will draw on the work of two noted technicians to show you how to apply some classical technical principles and methods to today's dynamic markets. Chester Keltner, one of the early pioneers in the field of system trading, is best known for his "Keltner Channels". Keltner also designed several mechanical systems for trading the grain markets. Linda will discuss his techniques and show how his non-trending conditions can be modified to highlight both trending and non-trending conditions, as well as to define specific trading set-ups. Richard Wyckoff was the master of analyzing accumulation and distribution patterns. Anyone wishing to develop his or her tape reading skills must be familiar with Wyckoff's techniques. Linda will summarize his classical concepts and then demonstrate how she utilizes them in her own analysis and trading. "Street Smarts", the book Linda co-authored with Larry Connors, describes how to capture these concepts and mold them into a concrete trading methodology. Preparation and organization, done ahead of time, are the keys to combining mechanical set-ups and tape reading. In this workshop, Linda will show you how to accomplish this.

http://flix.ino.com/preview/author.html?authorid=29

What is a hammer?

2006-04-02T18:55:00.000+08:00

Bullish Hammer

This pattern signals a trend... Reversal

How to identify...

1. Small real body at the upper trading range.
2. Color of the body is not important.
3. Long lower shadow at least twice the length of the body.
4. Little or no upper shadow.
5. Previous trend should be bearish.

Psychology...

As with any single candlestick, confirmation is required. The Bullish Hammer formation shows the price goes much lower than the open then closes near the opening price. This fact reduces the confidence of the bears. Ideally, a white real body Hammer with a higher open the following day could be a bullish signal for the days ahead.

http://hotcandlestick.com/directory/Bullish%20Hammer.htm

The Candlestick Forecaster

2006-04-01T22:29:00.000+08:00

This is a software that can read your local markets' data and display it as candle on a chart. It will also calculate Western Technical Indicators for you automatically. By clicking on a single candle and click on Analysis Result button, it can prompts you with every single patterns, double patterns, triple patterns and multiple patterns found in the particular candle that you've clicked. This is a fantastic feature that no other charting software has. A strong BUY signal will appear if the software analyzed that particular day as a nice buying day. Other than buy signal, it also tells you to go out of the market if it detected the market will be down in few days time. (signals reflects to the candle pattern found and Western Technical Indicator values). This software also allows you to select stocks that you would want to keep an eye on, and scan it by running CandleWatch™. Or you can even select every stocks counter that you have in the local hard drive to scan. Running a CandleWatch™ for 1000 counters on Metastock format takes about 1-2 minutes, depending on your computer processor's speed.

http://www.highestsummit.com.my/

Visual Trader - FIND THE BIG MOVES IN ANY MARKET

2006-03-31T22:42:00.000+08:00

VisualTrader shows you a stunningly profitable view of the market.Make money by being in the right stocks at the right time.

• NO guessing which stocks are moving
• NO fumbling through charts Just click, confirm, and trade.

NEVER MISS ANOTHER BIG MOVE

Rotations like these in the Semiconductor Equipment group are not uncommon, and VisualTrader will help you identify, confirm, and profit from the moves.
According to Investor's Business Daily, industry group action determines at least half of a stock's performance. VisualTraderis the only software designed to allow you to easily monitor dozens of industry groups to locate the big movers. You will know what's hot and what's not, instantly.

http://www.visualtrader.com/product.htm

Omni Trader

2006-03-30T18:04:00.000+08:00

OmniTrader is the only software designed to help you Trade the Moves. By automating technical analysis, OmniTrader gives you the power to make decisions fast! No other software gives you real trading signals with all of the supporting information automatically displayed for you. OmniTrader's signals are exceptionally accurate - making it a Great Prospecting Tool.
Great Trading Signals, however, are just the beginning of the OmniTrader story. OmniTrader provides all the tools you need to Trade the Moves:

> Great Buy & Sell Candidates
> Built-In Money Management
> Trading Simulators

Great Buy and Sell Candidates

OmniTrader is the only software that generates Buy and Sell Signals based on the "personality" of each security in a given list.
We call this powerful technique the Adaptive Reasoning Model (ARM ). In just seconds, the program will test ALL of its 120 built-in methods on EACH symbol in a given list to find the precise techniques that are working well. Then, it uses those methods to generate signals. You can see an example chart above. ARM was invented at Nirvana Systems in 1994, and here is how it works:

1. A list of symbols is provided to the software. This list can be as short as the S&P 100 or as large as the entire stock market, depending on how many candidates you want the program to generate for you.

2. Press ONE BUTTON in OmniTrader, and it will begin its proprietary analysis. In a matter of seconds, OmniTrader will test each of its built-in trading methods on each security, choosing the BEST techniques to use. Using this approach, OmniTrader is able to determine the personality of each individual security, according to our proprietary Personality of Markets Theory.

3. The software automatically finds Buy and Sell Signals on each symbol in the list, using the methods that have been found to work well for each individual security. The result? Superb Buy and Sell Signals unlike any you have ever seen - automatically. No other software offers this automation benefit.

http://www.omnitrader.com/

CandlePower 6 Pro - Software Tools for technical candle pattern analysis

2006-03-28T23:08:00.000+08:00

Welcome to CandlePower 6 Pro - a professional charting and scanning program for end-of-day candle pattern and technical analyses. CP6 Pro represents the latest update to the CandlePower 6 series of programs. It adds “BestPerf”, an automatic “Best Performance” back-testing capability that determines the best performing indicator for each and every security scanned, using 13 popular technical indicators and a library of 106 candle patterns. In essence, it shows what works best!

The CP6 Pro chart screen can be configured to show any or all indicator signals and candle signals, along with the price plot which can be displayed in several formats including candle stick, equivolume, line, bar, or candlepower (where the width of the candle is proportional to volume).

Amibroker 4.70

2006-03-27T22:53:00.000+08:00

Featuring Drag-and-Drop indicator creation, True Portfolio Backtesting and Optimization with scaling and multiple currency handling, Multiple Time-Frame support, 3D optimization charts, automated trading interface, volume profile, object-oriented charting, drawing layers, multi-window layouts, formula-based alerts, easy-to-use formula editor, equity function, unique composite indicators, direct link to eSignal, Interactive Brokers, IQFeed, myTrack, FastTrack, QP2, TC2000, any DDE compliant feed, MS and more...

Tradestation

2006-03-27T00:00:00.000+08:00

At TradeStation Technologies, our mission is to provide active traders and institutions with the technology and support to trade more successfully. Our legacy line of products, currently offered solely via authorized resellers* outside of the United States, features our proprietary technology EasyLanguage® which has garnered praise from traders and product reviewers alike. This robust trading technology allows for the design and testing of custom trading ideas, customized market views, and identifies option strategies based on the user's market assumptions.

Metastock

2006-03-25T22:37:00.000+08:00

For people who want to make money trading the markets, whether you're an experienced individual active trader or just learning how to trade, the MetaStock product line will help you succeed. MetaStock's powerful analysis tools lead you to more informed decisions about what markets to trade and when to buy and sell, thus making you more money. In fact, 84% of our customers report that they have been successful using the MetaStock software! Whether you trade stocks, bonds, mutual funds, futures, commodities, FOREX, or indices, MetaStock has the tools you need for superior market analysis and financial success.

MetaStock is the best selling investment analysis software in the world — it's the 12-time winner of Technical Analysis of Stocks and Commodities Magazine™ Reader's Choice Award for best analysis software. Our high quality software and reliable data feeds have proven themselves over time and in the marketplace. People who are serious about trading choose our premium software because it is easy to use, customizable to your trading style, and gives you an advantage over other traders in the marketplace.

Learn more about:
MetaStock for end-of-day trading
MetaStock Pro for real-time trading
MetaStock Pro FX for foreign exchange trading
QuoteCenter - our market data desktop that pairs excellent data with MetaStock Pro to give you the most powerful combination of tools and real-time data available in the individual trader marketplace.
Receive an Info Pack

http://www.equis.com/

Best charting software

2006-03-25T22:32:00.000+08:00

Starting today we will begin our quest to look for the best charting software that is currently available in the world. Metastock, Ezy charts, Tradestation and many more to be discovered. Let the search begin now.