Friday, July 14, 2006
Ultimate Trading Guide
In The Ultimate Trading Guide, Hill, Pruitt, and Hill clearly explain the principles behind trading systems. They demonstrate how various types of systems operate for accounts of all sizes--from $10,000 to $1 million. And they provide the tools and background necessary for developing computerized trading systems that really work.
*A complete tutorial in successfully developing and using trading systems.With the recent explosion in the popularity of trading, nearly everyone who trades wants a trading system—amethodology for buying and selling. A trading system can be a useful tool—provided the trader has the know-how to use it correctly. Unfortunately, few traders do.
In this indispensable book, John Hill, one of today's most highly regarded analysts, and his partners, George Pruitt and Lundy Hill, enable traders to develop original systems that they can use to increase their trading profitability.Demonstrating that a system is only as reliable as the criteria on which it is based and the information that is fed into it, the authors provide traders with the tools needed to develop systems based on sound logic, including complete explanations of:
The principles behind trading systemsHow various systems operate for accounts of all sizes, ranging from amounts of $10,000 to $1,000,000The tools and background necessary for developing computerized trading systems that are backtested (i.e., tested on existing historical data) and will be profitable in the futureShort-term market timing techniques for any markey...and much more.Stock, futures and options traders, and individual investors will find that this complete, highly effective tutorial is truly the ultimate in successfully developing and utilizing trading systems that really work
Friday, April 28, 2006
China Paper - Need to clear two more barriers
RSI and stochastics turning upwards. Managed to break above blue slope resistance line. Still to clear the red slope resistance and the 20 days close moving average resistance.
Thursday, April 27, 2006
China Sun - Potential Inverted Hammer
Potential inverted hammer. Immediate support is 88 cents. Next support is the 20 day close moving average support at 84 cents. Immediate resistance is 92 cents. Next resistance is 96.5 cents.
China Sky - Potential Inverted Hammer
Potential inverted hammer formed after a doji yesterday. Immediate support is 99 cents. Immediate resistance is $1.08. Requires confirmation before taking action.
Strategies for Profiting with Japanese Candlestick Charts
What are Japanese Candlesticks and why should traders use them? This brand new video workshop will help you understand and master this powerful tool with high impact results. Steve Nison is the premiere expert on Candlesticks in the world and now you can benefit from his expertise in the comfort of your own home. Filmed at a unique one-day seminar he gave for a select group of traders you'll find discover -The Most Import Candle Patterns -Using the Power of Candles for Online Trading -Combining western technical indicators with CandleStick Charts for increased profits -Reducing risk with Candlestick Charts -Swing & Day Trading with Candlestick Charts and so much more. It's an incredible opportunity to have the foremost expert guide you to trading success now at a great savings. Also available in VHS version.
What are Japanese Candlesticks - and why should traders use them? This brand new video workshop will help you understand and master this powerful tool with high impact results. Steve Nison is the premiere expert on Candlesticks in the world - and now you can benefit from his expertise in the comfort of your own home. Filmed at a unique one-day seminar he gave for a select group of traders - you'll find discover:
- The Most Import Candle Patterns
- Using the Power of Candles for Online Trading
- Combining western technical indicators with CandleStick Charts for increased profits
- Reducing risk with Candlestick Charts
- Swing & Day Trading with Candlestick Charts
-and so much more.It's an incredible opportunity to have the foremost expert guide you to trading success - now at a great savings.
Technical Analysis By: D., Schwager, Jack
Starting with an expanded overview of classical chart analysis, Schwager then explores the structure and design of a variety of technical trading systems and demonstrates their application in real market examples.
Schwager on Futures Technical Analysis Jack Schwager is one of the most important and visible figures in the futures industry today. His Market Wizards and The New Market Wizards are two of the bestselling finance titles of all time. Now, in the latest volume in the Schwager on Futures series, Technical Analysis, Schwager has created the most comprehensive guide ever for using technical analysis for futures trading. What makes Technical Analysis unique, besides its in-depth coverage, is that it is written from a trader’s perspective. Schwager doesn’t merely cover the subject, he explores what works and doesn’t work in the real world of trading.*Contains a comprehensive guide to chart analysis written with a particular focus on trading applications*Includes a separate 200+ page section illustrating the use of chart analysis in the real world*Details and illustrates several original trading systems*Includes a self-contained primer on cyclical analysis*Describes popular oscillators, the pitfalls in their common use, and guidelines to their successful application in trading*Explains the concept and use of "continuous futures"and compares 10-year continuous futures charts with conventional nearest futures charts for all major U.S. futures markets*Contains a section on trading strategy and philosophy, including over 100 trading tipsHundreds of charts, tables, and examples illustrate key points throughout, while the text is written in the informative, insightful, and nontechnical style that has made Jack Schwager one of the most highly regarded and bestselling investment authors ever. This invaluable book by one of the world’s foremost authorities is destined to become the premier industry guide on technical analysis for many years to come.
Trading for a Living: Psychology, Trading Tactics, Money Management
Top notch book integrates three major areas of trading; psychology, trading tactics and money management into a coherent framework for success. Unique approach combines the author's trading success with his decades of experience as physician and psychiatrist.
You have just taken a big step away from the crowd of amateurs. By opening Trading for a Living, you’ve resolved to become a successful trader. Dr. Alexander Elder is a professional trader, a world-class expert in technical analysis, and a practicing psychiatrist. He believes that successful trading is based on three M’s: Mind, Method, and Money. First, you will see that the key to winning is inside your Mind. You will find out how to develop discipline and how to avoid the traps of emotional trading. Second, you will learn how to find good trades by using charts, computerized indicators, and other tools. You will discover how to combine several analytic Methods into a powerful trading system. Finally, you will learn how to manage Money in your trading account. The rules for limiting risks are as vital to a trader as a safety net is to a high-wire walker. With this book, you are on your way to mastering a new way of trading stocks, futures, currencies, and options. Dr. Alexander Elder helps you embark on an intense pursuit—trading for a living.
The Master Swing Trader: Tools and Techniques to Profit from Outstanding Short-Term Trading Opportunities 1st Edition
Swing trading offers traders the unique ability to isolate high-probability trade set-ups and difficult-to-spot opportunities before they disappear. By applying Farley’s innovative and proven system of Pattern Cycles, traders will gain a significant edge in the markets by spotlighting and closing out superior trade set ups one step ahead of the trading pack.
Combining his own unique and original trading methods with traditional technical analysis tools, Farley’s strategy addresses reward, risk andstop-loss considerations. He also provides tips for making informed choices during all phases of short term trading development, which will furnish traders with much-needed support on the road to building consistent trading performance.
Wednesday, April 26, 2006
Aus Group - Bullish Engulfing Pattern
After covering the support gap yesterday, a bullish engulfing pattern has emerged today. Immediate support is 33.5 cents. Immediate resistance is 35 cents. Strong volume breakout above 35 cents will retest record high of 39 cents.
Bullish Engulfing Pattern Worden Video
Link to Worden Video
1. Market is characterized by downtrend.
2. Then we see a small black body.
3. Next day we see a white body that completely engulfs the black real body of the preceding day.
While the market sentiment is bearish; we see some subsided selling reflected by the short, black real body of the first day. Next day shows bull strength with a closing price at or above the previous day’s open. It means that the downtrend is now losing momentum and the bulls started to take the lead.
The relative size of the bodies in the first and second days is important. If the first day of the Bullish Engulfing Pattern is characterized by a very small real body (it may even be a doji or nearly a doji) but the second day is characterized by a very long real body, this strongly indicates that the bearish power is diminishing and the disparity of white versus black body is indicative of the emerging bull power.
There is higher probability of a bullish reversal if there is heavy volume on the second real body or if the second day of the Bullish Engulfing Pattern engulfs more than one real body (which essentially means we see two or more small black bodies preceding the long white body).
The reversal of downtrend needs further confirmation on the third day. This confirmation may be in the form of a white candlestick, a large gap up or a higher close on the third day.
After a decline, the second white candlestick begins to form when selling pressure causes the security to open below the previous close. Buyers step in after the open and push prices above the previous open for a strong finish and potential short-term reversal. Generally, the larger the white candlestick and the greater the engulfing, the more bullish the reversal. Further strength is required to provide bullish confirmation of this reversal pattern.
China Paper - Double inverted hammer but still drop
No double inverted hammer confirmation. Immediate support is 38.5 cents. Next support is 36.6 cents. Immediate resistance is 41.5 cents. Descending triangle still exerting downward price pressure.
Monday, April 24, 2006
Sunday, April 23, 2006
China Paper - Potential Inverted Hammer
Potential Inverted Hammer formation. Need confirmation from next candlestick bar. Testing 40 cents to 38.5 cents support band. Descending triangle slope needs to be broken before price reaches the apex for short term trend change.
Dark Cloud Cover
A long white day is followed by a black day which gaps above the high of the white candle and then closes below the midpoint of the first day's body.
In an uptrend or within a bounce of a downtrend, the stock gaps up and immediately encounters sellers who push the stock back down. This simply signifies the possibility of a reversal that is more reliable if the gap up occurs at resistance and the black day is accompanied by a surge in volume. The bearish Dark Cloud Cover is similar to the bearish Engulfing.
Dark Cloud Cover
Essentially, the large black candle is forming a "dark cloud" over the preceding bullish trend. The dark cloud must have a closing price that is:
1) within the price range of the previous day, but
2) below the mid-point between open and closing prices of the previous day.
Dark Cloud Cover Bearish
How to Identify it
1. First day is a long white day
2. Second day is black with an open above the high of the previous day
3. Second day closes within but below the midpoint of the first day’s body
What it Means
In an uptrend the market gaps open, but loses ground to fall below the midpoint of the previous day. The Dark Cloud Cover pattern suggests an opportunity for the shorts to capitalize on the next day’s open: a warning sign to bullish investors. The Dark Cloud Cover pattern is the opposite of the Piercing line pattern.
Bearish Dark Cloud Cover
How to identify...
1. 1st day is a long white day.
2. 2nd day is a black day which opens above the 1st day's high.
3. 2nd day closes within the 1st day, but below the midpoint.
A long white candlestick is formed on the 1st day and a gap up is created on the 2nd day. This is encouraging to the bulls. However, the 2nd day closes below the midpoint of the 1st day. Longs quickly question their strategy.
BEARISH DARK CLOUD COVER
1. Market is characterized by an uptrend.
2. We see a long white candlestick in the first day.
3. Then we see a black body characterized by an open above the high of the previous day on the second day.
4. The second black candlestick closes within and below the midpoint of the previous white body.
Market goes up with an uptrend. Then we see a strong white candlestick followed by a gap suggesting that bulls retain the control. However, the rally does not continue. Market suddenly closes at or near the lows of the day so the second day body moving well into the prior day’s real body. Longs are shaken somehow and short sellers now have a benchmark to place a stop, which is at the new high of the second day.
If the black real body’s close penetrates deeper into the prior white real body, the chance for a top increases. There are some Japanese technicians who require more than a 50% penetration of the black day’s close into the white real body. If the black candlestick does not close below the halfway point of the white candlestick then it is better to wait for confirmation following the dark cloud cover; and even if it does, a confirmation may still be necessary. This confirmation may be in the form of a black candlestick, a large gap down or a lower close on the next trading day.
Saturday, April 22, 2006
BEARISH LONG LEGGED DOJI
1. Market is characterized by overall uptrend
.2. Then we see a Doji that gaps in the direction of the uptrend.
3. The real body of the Doji is either a horizontal line or it is significantly small (its length is not more than a few ticks).
4. The upper and lower shadows of the Doji are long and almost equal in length.
This particular doji shows that there is a great amount of indecision in the market. Long-legged Doji shows that the prices traded well above and below the opening price however they closed virtually at the level of the opening price. We have an end result with little change from the initial open despite all the excitement and volatility during the day showing that the market has lost its sense of direction.
Long Legged Doji is more important at tops.
Since the Long Legged Doji is a single candlestick pattern, it is better to see confirmation in the form of a move opposite to the prior trade on the next trading day.
HL Asia - Missed Gap closing by 1 cent
Missed gap closing at $1.75 by 1 cent. Upper doji shadow was $1.74 on 20th April 2006. Immediate support now is $1.68. Next support is $1.66. High chance of covering the gap at $1.75 if support at $1.66 is not broken the next few days.
Friday, April 21, 2006
Memtech Weekly Chart Showing Potential Resistances
Bearish Engulfing Pattern is a large black real body, which engulfs a small white real body in an uptrend (it need not engulf the shadows). The Bearish Engulfing Pattern is an important top reversal signal.
1. Market is characterized by uptrend.
2. We see a white candlestick in the first day.
3. Then we see a black candlestick that completely engulfs the real body of the first day.
Market is in a bull mood. Then we see diminished buying reflected by the short, white real body. This then is followed by a strong sell-off, which lead to a close at or below the previous day’s open. Apparently the uptrend has lost momentum and the bears may be gaining strength.
Relative sizes of the first and second days are important. If the first day of the Bearish Engulfing Pattern is a very small real body (it may even be almost a doji or is a doji) but the second day has a very long real body, this shows the dissipation of the prior uptrend’s force and an increase in bearish force.
A protracted or very fast move increases the chance that potential buyers are already long and that there may be less of a supply of new longs in order to keep the market moving up. A fast move makes the market overextended and vulnerable to profit taking. A Bearish Engulfing Pattern appearing after such a move is more likely to be an important bearish reversal indicator.
A bearish reversal is more possible if there is heavy volume on the second real body or if the second day of the Bearish Engulfing Pattern engulfs more than one real body.
A confirmation in the third day is required to be sure that the uptrend has reversed. The confirmation may be in the form of a black candlestick, a large gap down or a lower close on the third day.
Memtech - Potential Bearish Engulfing Pattern
Potential Bearish Engulfing pattern forming. Immediate resistance is the record high at 36 cents. Immediate support is the support band between 34 to 33.5 cents. Next support is the critical support at 31 cents. Breakdown from 31 cents will most probably indicate the end of the current uptrend.
Wednesday, April 19, 2006
HL Finance - Dragronfly sitting on 20 days close simple moving average
Tested $3.64 immediate support 4 times in the last 8 days. Dragronfly doji now sitting on 20 days close simple moving average. Higher short term peaks were established during the recent uptrend. Next few days may test the $3.78 recent peak. Strong support band between $3.60 to $3.54 .
Bullish Three Outside Up
How to identify...
1. 1st two days create a bullish engulfing formation.
2. 3rd day closes higher than the 2nd day.
Tuesday, April 18, 2006
Range bound between $1.62 to $1.63 support band and $1.68 resistance. Breakout above $1.68 will see retest of $1.71 resistance and gap resistance at $1.75 . Need another powerful marubozu candlestick just like the outside day marubozu bar that formed last Friday.