Alltrader

Ultimate Trading Guide

2006-07-14T21:55:00.000+08:00

Develop original trading systems that really work Trading systems are more popular than ever. But few traders know how to develop or use them correctly. John Hill, one of today's most listened-to analysts, and his partners George Pruitt and Lundy Hill, demonstrate in this indispensable guide that a system is only as reliable as the criteria on which it is based and the information that is fed into it.

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

.http://www.traderspress.org/detail.asp?product_id=1743

China Paper - Need to clear two more barriers

2006-04-28T23:46:00.000+08:00

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.

China Sun - Potential Inverted Hammer

2006-04-27T23:50:00.000+08:00

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

2006-04-27T18:23:00.000+08:00

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

2006-04-27T18:08:00.000+08:00

Synopsis:
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.

Jacket Description:
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.

http://www.traderslibrary.com/moreinfo.asp?item=2434165&SID=BAESNMJLOZL413535912974671204D31&lc=tradingcourses&refer=

Technical Analysis By: D., Schwager, Jack

2006-04-27T17:58:00.000+08:00

Synopsis:
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.

Jacket Description:
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.

http://www.traderslibrary.com/moreinfo.asp?item=2585&SID=BAESNMJLOZL413535912974671204D31&lc=moreinfo_related

Trading for a Living: Psychology, Trading Tactics, Money Management

2006-04-27T17:53:00.000+08:00

Synopsis:
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.

Jacket Description:
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.

http://www.traderslibrary.com/moreinfo.asp?item=2663&SID=BAESNMJLOZL413535912974671204D31&lc=moreinfo_related

The Master Swing Trader: Tools and Techniques to Profit from Outstanding Short-Term Trading Opportunities 1st Edition

2006-04-27T17:39:00.000+08:00

Enter the hidden world of the master pattern recognition and build powerful swing trading strategies that respond quickly to changing market conditions. Use multiple time frame technical analysis and advanced 3D charting techniques to execute trades that take advantage of crowd confusion and market inefficiency. This complete, practical guide to modern swing trading includes over 180 illustrations and dozens of proprietary setups that illustrate both classic and highly original short-term tactics.

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.

http://www.traderslibrary.com/moreinfo.asp?item=11668&SID=BAESNMJLOZL413535912974671204D31&lc=moreinfo_related

Aus Group - Bullish Engulfing Pattern

2006-04-26T18:59:00.000+08:00

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

2006-04-26T18:49:00.000+08:00

Keywords: Bullish engulf engulfing candle candlestick easyscan persona criteria formula formulas PCF PCFs

Link to Worden Video

http://www.worden.com/training/default.aspx?g=posts&t=845

BULLISH ENGULFING

2006-04-26T18:37:00.000+08:00

Bullish Engulfing Pattern is a pattern characterized by a large white real body engulfing a preceding small black real body, which appears during a downtrend. The white body does not necessarily engulf the shadows of the black body but totally engulfs the body itself. The Bullish Engulfing Pattern is an important bottom reversal signal.

Recognition Criteria:

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.

Explanation:

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.

Important Factors:

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.

http://www.candlesticker.com/Cs32.asp

Bullish Engulfing

2006-04-26T18:32:00.000+08:00

The bullish engulfing pattern consists of two candlesticks, the first black and the second white. The size of the black candlestick is not that important, but it should not be a doji which would be relatively easy to engulf. The second should be a long white candlestick -- the bigger it is, the more bullish. The white body must totally engulf the body of the first black candlestick. Ideally, though not necessarily, the white body would engulf the shadows as well. Although shadows are permitted, they are usually small or nonexistent on both candlesticks.

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.

http://www.stockcharts.com/education/ChartAnalysis/candlestickbullreversal1.html

China Paper - Double inverted hammer but still drop

2006-04-26T00:19:00.000+08:00

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.

Inverted Hammer

2006-04-24T23:55:00.000+08:00

An inverted hammer formation is as the name implies an upside down hammer formation. The formation has a real body at the lower end of the range, although the colour of the body is not important.

China Paper - Potential Inverted Hammer

2006-04-23T22:45:00.000+08:00

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

2006-04-23T19:03:00.000+08:00

Pattern: reversal

Reliability: high

Identification
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.

The Psychology
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.

http://www.leavittbrothers.com/education/candlestick_patterns/bear/drkcloud.cfm

Dark Cloud Cover

2006-04-23T18:58:00.000+08:00

In candlestick charting, a pattern where a black candlestick follows a long white candlestick. It can be an indication of a future bearish trend.

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.

http://www.investopedia.com/terms/d/darkcloud.asp

Dark Cloud Cover Bearish

2006-04-23T18:43:00.000+08:00

Pattern: Reversal
Trend: Bearish
Reliability: High

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.

http://www.litwick.com/indicators/1206.html

Bearish Dark Cloud Cover

2006-04-23T18:35:00.000+08:00

This pattern signals a trend...

Reversal

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.

Psychology...

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.

http://www.hotcandlestick.com/directory/Bearish%20Dark%20Cloud%20Cover.htm

BEARISH DARK CLOUD COVER

2006-04-23T18:06:00.000+08:00

Bearish Dark Cloud Cover Pattern is a two-candlestick pattern signaling a top reversal after an uptrend or, at times, at the top of a congestion band. We see a strong white real body in the first day. The second day opens strongly above the previous day high (it is above the top of the upper shadow). However, market closes near the low of the day and well within the prior day’s white body at the end of the day.

Recognition Criteria:

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.

Explanation:

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.

Important Factors:

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.

http://www.candlesticker.com/Cs48.asp

BEARISH LONG LEGGED DOJI

2006-04-22T23:23:00.000+08:00

Long Legged Doji is a doji characterized by very long shadows. It shows the indecision of the buyers and sellers and it is an important reversal signal.

Recognition Criteria:
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.

Explanation:
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.

Important Factors:
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.

http://www.candlesticker.com/Cs28.asp

HL Asia - Missed Gap closing by 1 cent

2006-04-22T23:05:00.000+08:00

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.

Memtech Weekly Chart Showing Potential Resistances

2006-04-21T22:14:00.000+08:00

All possible resistances from 38 cents to 54 cents. Many excting and interesting weeks to come.

BEARISH ENGULFING

2006-04-21T18:56:00.000+08:00

Definition:

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.

Recognition Criteria:

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.

Explanation:

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.

Important Factors:

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.

http://www.candlesticker.com/Cs44.asp

Memtech - Potential Bearish Engulfing Pattern

2006-04-21T00:10:00.000+08:00

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.

HL Finance - Dragronfly sitting on 20 days close simple moving average

2006-04-19T23:55:00.000+08:00

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

2006-04-19T00:37:00.000+08:00

This pattern signals a trend - Reversal

How to identify...

1. 1st two days create a bullish engulfing formation.

2. 3rd day closes higher than the 2nd day.

http://www.hotcandlestick.com/directory/Bullish%20Three%20Outside%20Up.htm

HL Asia

2006-04-18T18:10:00.000+08:00

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.

Learn How To Trade With ADXellence!

2006-04-17T23:52:00.000+08:00

A full length book, available only through Traders Press, dealing solely and exclusively with ADX, the powerful trend measuring indicator developed by Welles Wilder. This valuable trading manual gives SPECIFIC trading strategies and methods using ADX and is the only book anywhere on this subject. Serious traders, check this out and get your copy while available!

Description:

Using ADX, a trader can make the largest amount of money in the least amount of time.

ADX is the best indicator for trading power trends…it quantifies trend strength, gives direction, and shows trend momentum.

When ADX is applied in the context of power trading principles, the result is an amazing opportunity to capitalize on the strongest trends with the greatest potential for gain.

http://www.traderspress.org/detail.asp?product_id=3900

Candlestick Charting Explained (3rd Ed.) by Gregory L. Morris

2006-04-16T23:06:00.000+08:00

Note from Greg Morris: "The success of the first edition (1992) and the second edition (1995) made the decision to do this one easy. I added 20+ new complementary patterns to fill the holes that existed in the Japanese literature. A giant section dedicated to traders has been added. Hundreds of updated charts and tables with statistics from millions of days of data have also been added. This is almost a totally new book."

The classic Japanese candlestick reference, updated with all-new insights and tools to improve your predictive accuracy. Candlestick Charting Explained takes the subjectivity out of Japanese candlestick analysis by providing you with standardized, straightforward coverage of 89 powerful candlestick charts patterns. You will learn what they indicate about current trader behavior and how you can use each to instantly improve your market knowledge and analytical precision.

In this revised and greatly expanded third edition, candlestick expert Greg Morris updates his influential guidebook with valuable new material and patterns to give you:

• Thorough coverage of candlestick patterns to allow instant analysis of investor attitude and probable market direction.
• Methods for integrating candlesticks with traditional Western charting analysis for enhanced signal verification.
• Completely new section by Ryan Litchfield dedicated to “Trading with Candlesticks.”
• Current insights into trader psychology, and how it impacts interactions between buyers and sellers.

Its in-depth exploration of traditional as well as all-new candlestick charts, Candlestick Charting Explained will show you how to make candlestick charting a logical, understandable, and profitable component of your current trading program.

http://store.yahoo.com/stockcharts/cachex3edgrl.html

Introducing The Bearish Diamond Formation

2006-04-16T02:01:00.000+08:00

For years, market aficionados and forex traders alike have been using simple price patterns not only to forecast profitable trading opportunities but also to explain simple market dynamics. As a result, common formations such as pennants, flags and double bottoms and tops are often used in the currency markets, as well as many other trading markets. A less talked about, but equally useful, pattern that occurs in the currency markets is the bearish diamond top formation, commonly known as the diamond top. In this article, we'll explain how forex traders can quickly identify diamond tops in order to capitalize on various opportunities.

The diamond top occurs mostly at the top of considerable uptrends. It effectively signals impending shortfalls and retracements with relative accuracy and ease. Because of the increased liquidity of the currency market, this formation can be easier to identify in the currency market than in its equity-based counterpart, where gaps in price action frequently occur, displacing some of the requirements needed to recognize the diamond top. This formation can also be applied to any time frame, especially daily and hourly charts, as the wide swings often seen in the currency markets will offer traders plenty of opportunities to trade.

http://www.investopedia.com/articles/forex/05/DiamondBear.asp

BIO-T - Potential Ascending Triangle Breakout

2006-04-15T20:26:00.000+08:00

Breaking out of ascending triangle resistance at $1.28 soon. RSI just below oversold border of 80%. Stochastics just move back up into oversold region. New record high soon.

Are you looking to learn how to draw Trendlines?

2006-04-15T00:59:00.000+08:00

Trendlines are an extremely difficult tool to master. What if there was a way to draw perfect trendlines every time. The art of drawing a trendline comes down to intuition and experience and it is this, that makes it difficult for amateur traders just starting out. But there is way to draw trendlines in a very systematic way, so that if every person on earth used this system, then everyone's trendlines would look exactly the same! Wow!

Experienced traders use gut feel and experience to determine where they draw a trendline. But get several of these people together and tell them to draw trendlines, look what you get!

So why is this? If part of your trading plan is to trade support and resistance, then a lot of your entries and exits are going to be positioned according to where your trendlines are! Even when using horizontal support and resistance lines, what are you applying them to? And here lies the problem. Have a look at the charts above. Some trendlines are drawn using the highs and lows, others using closes and opens, and then there's some with a mixture. Very confusing!

Experienced traders have their own methods which evolve over time, but primarily, they'll look to use the close of prices, or to find a way to get as many touches on a line to give it strength, all of which work, but as a beginner it can be frustrating not quite knowing where to put them.

What I'm suggesting is to use a universal approach while starting out until you become a little more experienced and you can trust your intuition. This method is a mechanical method, meaning there can only be one way, but there is also an extra dimension enabling you to determine the strength of the trendline also.

http://www.atradersuniverse.com/trendlines.htm

Trend Lines

2006-04-14T01:03:00.000+08:00

Technical analysis is built on the assumption that prices trend. Trend Lines are an important tool in technical analysis for both trend identification and confirmation. A trend line is a straight line that connects two or more price points and then extends into the future to act as a line of support or resistance. Many of the principles applicable to support and resistance levels can be applied to trend lines as well. It is important that you understand all of the concepts presented in our Support and Resistance article before you continue.

Uptrend Line

An uptrend line has a positive slope and is formed by connecting two of more low points. The second low must be higher than the first for the line to have a positive slope. Uptrend lines act as support and indicate that net-demand (demand less supply) is increasing even as the price rises. A rising price combined with increasing demand is very bullish and shows a strong determination on the part of the buyers. As long as prices remain above the trend line, the uptrend is considered solid and intact. A break below the uptrend line indicates that net-demand has weakened and a change in trend could be imminent.

Downtrend line

A downtrend line has a negative slope and is formed by connecting two or more high points. The second high must be lower than the first for the line to have a negative slope. Downtrend lines act as resistance, and indicate that net-supply (supply less demand) is increasing even as the price declines. A declining price combined with increasing supply is very bearish and shows the strong resolve of the sellers. As long as prices remain below the downtrend line, the downtrend is considered solid and intact. A break above the downtrend line indicates that net-supply is decreasing and a change of trend could be imminent.

http://www.stockcharts.com/education/ChartAnalysis/trendlines.html

Trendline

2006-04-12T22:54:00.000+08:00

Definition

Technical analysis formation created by drawing a line connecting a series of descending tops, descending bottoms, ascending tops or ascending bottoms. Some technical analysts look for prices breaking through trendlines on the belief that those stocks have broken through a resistance level and are headed in a new direction.

http://www.investorwords.com/5069/trendline.html

Trendlines

2006-04-11T23:24:00.000+08:00

Trendlines illustrate the direction of the market movement and provide a primary consideration in any analysis.

Overview

Uptrends consist of a series of successively higher highs and lows.
Downtrends consist of a series of successively lower highs and lows.

The first consideration when looking at any market is the direction of the long term trend (with the exception of day traders).

Prices can only go in three directions; up, down, and sideways. A long line of past price ranges together gives you a pattern. There will be plenty of dips and bumps along the line but you should still be able to discern a general direction up, down, or sideways. We can help spot this direction or trend by drawing in "trendlines".

http://www.chartfilter.com/reports/c32b.htm

HL Finance - 5 support levels

2006-04-09T22:21:00.000+08:00

Falling back into major support zone from $3.62 to $3.54. At which support level will it stop at? Interesting week ahead for this stock.

HL Asia - Breakout $1.55

2006-04-08T23:12:00.000+08:00

Finally, broke out above $1.55. Immediate support is $1.58 to $1.57 band . Next support level is $1.55. Immediate resistance is $1.67 as shown by the green dash line. Next resistance is $1.71. Will the gap resistance at $1.75 be filled? Another interesting week ahead for this stock.

DARVAS BOXES

2006-04-07T23:28:00.000+08:00

Definition

The Darvas Boxes were taken from the pages of Nicolas Darvas’ book, How I Made $2,000,000 in the Stock Market. The boxes are used to normalize a trend. A "buy" signal would be indicated when the price of the stock exceeds the top of the box. A "sell" signal would be indicated when the price of the stock falls below the bottom of the box.

http://www.gerryco.com/tech/darvas.html

Swing Trading and Short-Term Price Patterns

2006-04-06T23:06:00.000+08:00

Linda believes strongly in the market's tendency to exhibit patterns which enable traders to predict price direction (although not magnitude). She has found that prices tend to form a distinctive three-day swing trading pattern which consistently repeats itself in a tradable fashion.

Linda will discuss why this swing pattern occurs and how to recognize it when it does. She will describe both the market tendencies underlying the theories and the philosophy behind trading the swing pattern. She will then teach a sound method for trading this cyclic phenomenon, a method that will enhance your confidence to trade in any stock or futures market, on any day. Finally, Linda will illustrate how, using these swing patterns, you can develop mechanical systems that are applicable to market periods of varying length. Always popular, Linda's presentation will give you a new perspective on price behavior and chart patterns.

http://flix.ino.com/preview/movie.html?movieid=93

HL Asia - Trapped in the range

2006-04-05T21:26:00.000+08:00

Range getting narrower between high of $1.52 and low of $1.49. Just ran out of space, tomorrow will touch the red bold sloping line. Need to breakout of $1.55 to begin rebounce back to $1.71. Multi-level supports at $1.48, $1.45 and $1.38. Waiting for the bulls or the bears to take action.

LBR GROUP

2006-04-04T21:40:00.000+08:00

Linda Bradford Raschke is President of LBRGroup, Inc., a money management firm and registered CTA. She began her professional trading career in 1981 as a market maker in equity options. After 7 years on the trading floor, she left the exchange to expand her trading program in the futures markets. In addition to running LBRGroup's CTA program, she has been principal trader for several hedge funds and runs commercial hedging programs in the metals markets. In the early 90's she formed a research partnership with Moore Research Center and pioneered work on volatility based trading indicators, which were incorporated into her daily trading programs.

Ms. Raschke was recognized in Jack Schwager's critically acclaimed book, The New Market Wizards, and is known for her own top selling book, Street Smarts - High Probability Short-Term Trading Strategies. She has been featured in dozens of financial publications, radio and financial television programs, and has served on the Board of Directors for the Market Technician's Association for many years.

Ms. Raschke has presented her research and lectured on trading at conferences for the Market Technician's Association, International Federation of Technical Analysis, Canadian Society of Technical Analysts, TAG, Omega World, Managed Futures Association, International Online Trading Expo, AIQ, Futures Magazine, Bloomberg, Money-Expo.com, Carlin Equities and has lectured in over 16 different countries for Dow Jones/Telerate.

Ms. Raschke continues to manage money and trade her proprietary accounts, while posting real time trade setups into the LBR Live trading rooms, an educational internet based service. Members in these rooms include professional traders from over 18 different countries.

Ms Raschke received a degree in both economics and music composition from Occidental College in 1980.

http://www.lbrgroup.com/index.asp?page=About

Candlesticks, Fibonacci, and Chart Pattern Trading Tools: A Synergistic Strategy to Enhance Profits and Reduce Risk

2006-04-03T21:06:00.000+08:00

Fischer provides an intriguing and thorough look at blending the Fibonacci series, candlesticks, and 3-point chart patterns to trade securities. Backed by explicit trading rules and numerous examples and illustrations, this book is an invaluable tool for the serious investor. Read it.

– Thomas N. Bulkowski author of Encyclopedia of Chart Patterns and Trading Classic Chart Patterns

In this groundbreaking new book, Fibonacci expert Robert Fischer and coauthor Dr. Jens Fischer successfully merge Fibonacci applications with candlestick charting to create an innovative trading strategy that will help you enhance profits and reduce risk.

Filled with in-depth insights, helpful charts and graphs, and practical real-world examples, Candlesticks, Fibonacci, and Chart Pattern Trading Tools reveals how correctly combining these different strategies can give you a noticeable edge in challenging market times– regardless of whether you are a short-term or long-term trader– and improve your chances of success under a variety of market conditions.

You’ ll be introduced to the critical aspects of this synergistic approach through in-depth analysis and detailed explanations of: Core combinations of Fibonacci trading tools with candlesticks and regular 3-point chart patterns The magic figure three and its relevance in pattern recognition Fibonacci-related trading strategies, selected candlestick chart patterns, and regular 3-point chart patterns Applications of these trading strategies– double tops, Fibonacci price extensions, PHI-channel applications PHI-ellipses as trading tools And much more

Along with the computer technology of the WINPHI charting program included on the companion CD-ROM, Candlesticks, Fibonacci, and Chart Pattern Trading Tools will help you understand and implement this profitable trading strategy to the best of your ability.

Synopsis:
Candlestick charting and Fibonacci applications are two of the most popular technical tools used by stock, options, and futures traders. By merging the two techniques, "Candlesticks, Fibonacci, and Chart Pattern Trading Tools"provides traders with a new, cutting edge trading strategy. This synergistic approach, never before written about, will attract traders looking for an edge in challenging market times, regardless of whether they are short- or long-term traders.

Synopsis:
An in-depth examination of a powerful new trading strategy
Candlestick, Fibonacci and 3-Point Chart Patterns are three of the most popular technical tools used by stock, options, and futures traders. By merging the three techniques, Candlesticks, Fibonacci, and Chart Pattern Trading Tools provides readers with a new, cutting-edge trading strategy. This synergistic approach, never before written about, will attract traders looking for an edge in challenging market times, regardless of whether they are short- or long-term traders. This comprehensive trading guide also includes a powerful tutorial CD-ROM, so readers can immediately practice what they’ ve learned.

http://www.powells.com/biblio?isbn=0471448613

Hammer

2006-04-02T21:15:00.000+08:00

The hammer is made up of one candlestick, white or black, with a small body, long lower shadow and small or nonexistent upper shadow. The size of the lower shadow should be a least twice the length of the body and the high/low range should be relatively large. Large is a relative term and the high/low range should be large relative to range over the last 10-20 days.

After a decline, the hammer's intraday low indicates that selling pressure remains. However, the strong close shows that buyers are starting to become active again. Further strength is required to provide bullish confirmation of this reversal pattern.

http://stockcharts.com/education/ChartAnalysis/candlestickbullreversal1.html

About Steve Nison, CMT- President of Candlecharts.com

2006-04-02T00:29:00.000+08:00

Steve Nison is founder and President of Candlecharts.com which provides premier educational products and advisory services (also see About Candlecharts.com)

Traders and investors everywhere have discovered the power of candle charting because of Steve’s groundbreaking work.

Nison, the very first to reveal the startling power of candlestick charts to the Western Hemisphere, is acknowledged as the leading authority on the subject. Before Nison’s work not one charting system in the Western world had candle charts. Now almost every electronic charting package has them.

While recognized as the authority on candlestick charts, Nison is also an expert on Western technical analysis with over 25 years real world experience. As such, as a result many of his products and services incorporate both Eastern and Western technical trading techniques.

Nison is the author of "Japanese Candlestick Charting Techniques" and "Beyond Candlesticks". Sales of over 75,000 copies, in eight languages, have made these books the “bibles of candlestick analysis” around the world.

http://www.candlecharts.com/about-Steve.html

Beyond Candlesticks by Steve Nison

2006-03-31T23:46:00.000+08:00

If you found Nison's Japanese Candlestick Charting Techniques helpful, you will find this sequel to be indispensable.Known internationally as `The Father of Candlesticks,' Nison reveals more Japanese charting methods which have never been published or used in the Western world. Describes kagi, renko and three-line break charts. Provides a brief review of candlesticks and previously unavailable candlestick patterns that can be used in equities, fixed-income, foreign exchange and overseas markets.

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

Japanese Candlestick Charting Techniques (Revised Edition) by Steve Nison

2006-03-31T00:21:00.000+08:00

Japanese Candlestick Charting Techniques, 2nd Edition, provides an in-depth explanation of candlestick plotting and analysis, conveying to the reader, in easy-to-understand language, the author’s years of practical experience in this increasingly popular and dynamic approach to market analysis. It includes hundreds of examples that span the equity, futures, fixed-income, and foreign exchange markets and shows how candlestick charting techniques can be used in almost any market. It has been thoroughly updated to include:-New techniques and strategies-

The author’s concept of the Convergence (when a series of signals converge at one zone, thus increasing the chances for a market turn from that area)This new edition broadens the book’s focus and all new updated charts, and information on several new areas such as day trading and how candlestick charting can be used to improve returns and help decrease market risk.It includes everything from the basics, such as constructing the candlesticks and learning the patterns, to advanced topics, such as the rules of multiple technical techniques.

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

HL Finance - Breakout

2006-03-28T20:46:00.000+08:00

RSI, Momentum and Stochastics all looking good. Gap up and broke out above $3.60. Immediate resistance is the 20 day close simple moving average at $3.66.

Inverted Hammer / Gravestone Doji Bullish

2006-03-27T22:38:00.000+08:00

How to Identify it

Small real body at the lower end of the trading range
Upper shadow usually no more than twice as long as the real body
No (or almost no) lower shadow

What it Means

As the market opens below the close of the previous day, the bulls rally briefly, but not enough to close above the previous day’s close. As this leaves shorts in a losing position, the Inverted Hammer presents the potential for an upcoming rally. Confirmation of the trend reversal would by an opening above the body of the Inverted Hammer on the next trading day. If the open and the close are identical, the indicator is considered a Gravestone Doji. The Gravestone Doji has a higher reliability associated with it than an Inverted Hammer.

http://www.litwick.com/indicators/1122.html

HL Asia - $1.45 support broken

2006-03-27T21:01:00.000+08:00

The bears finally broke down the $1.45 support. Next support is $1.38 shown as by the pink dotted line. Range trading between $1.45 to $1.38 as the bulls and bears fight to gain control of this new range.

HL Finance Weekly Chart - Potential Inverted Hammer

2006-03-26T21:50:00.000+08:00

Potential Inverted Hammer spotted in the weekly chart. Weekly RSI flat. Weekly stochastics just drop below oversold region. Need another weekly candlestick to confirm. Another interesting week ahead. Lets monitor for possible reversal. Waiting for confirmation before taking action.

HL Asia - Hammer Power request by Wah_Siew

2006-03-25T21:30:00.000+08:00

Tested $1.45 again twice in a row. Unable to breakout of the resistance set at $1.48 by the tail of the hammer shown in red. Bulls and Bears fighting in 3 cents range. An exciting and interesting week ahead.

Hammer Candlestick and Hanging Man Candlestick Patterns

2006-03-25T01:48:00.000+08:00

The Hammer Candlestick and Hanging Man Candlestick are excellent patterns for revealing price reversals. You can learn how to spot these useful patterns by studying the following charts.

http://www.stock-charts-made-easy.com/hammer-candlestick.html

Hammer

2006-03-25T01:41:00.000+08:00

Hammer candlesticks form when a security moves significantly lower after the open, but rallies to close well above the intraday low. The resulting candlestick looks like a square lollipop with a long stick. If this candlestick forms during an advance, then it is called a Hanging Man.

http://www.stockcharts.com/education/ChartAnalysis/CandlestickDictionary.htm

Candle Charting Essentials:The Hammer

2006-03-25T01:33:00.000+08:00

In our last issue I focused on the shadows of the candle line (i.e. the thin lines above and below the real body). In this issue we look at a specific type of candle line that has a very long lower shadow called a hammer -- so called because the Japanese will say the market is trying to "hammer" out a base. The criteria for the hammer are:

1. The real body is at the upper end of the trading range.
2. The color of the real body can be black or white.
3. A bullish long lower shadow that is at least twice the height of the real body.
4. It should have no, or a very short, upper shadow.

http://www.tradersvic.com/candlestick/hammer.html

Hammer

2006-03-25T01:30:00.000+08:00

A price pattern in candlestick charting that occurs when a security trades significantly lower than its opening, but rallies later in the day to close either above or close to its opening price. This pattern forms a hammer-shaped candlestick.

A hammer occurs after a security has been declining, possibly suggesting the market is attempting to determine a bottom.The signal does not mean bullish investors have taken full control of a security, it simply indicates that the bulls are strengthening.

http://www.investopedia.com/terms/h/hammer.asp

Bullish Hammer

2006-03-25T01:20:00.000+08:00

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.

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

HL Asia - Review

2006-03-23T21:23:00.000+08:00

Will price bounce off and move up as it did the last 3 times when it tested $1.45? The green arrows show the days $1.45 was tested and the bulls took charge. An interesting day tomorrow who will triumph the bears or the bulls? . Immediate and critical support is $1.45. Immediate resistance is $1.48. Next support if $1.45 breaks is $1.38 as shown by the pink dotted line.

HL Asia

2006-03-22T15:49:00.000+08:00

The power of the hammer bar formed on 2nd March 2006 is clearly demostrated by its ability to contain price movement below its hammer head high of $1.55. $1.55 indicated by the green dotted has become a psychology barrier market must conquer before price can resume its upward movement. 20 days closing simple moving average and the downtrend slope shown by the red bold line are 2 other barriers restricting the upward price movement. Expect more range trading between $1.55 to $1.45 until the bulls or bears take control of this 10 cents range.

HL Finance

2006-03-21T22:48:00.000+08:00

Great Support at $3.54 . Tested 3 days in a row. Daily RSI and stochastics are in oversold regions. How long can the $3.54 support lasts? Breakout down from $3.54 will see retest $3.48 as shown in the chart by the red dooted.

Landwind - Head and Shoulders Formation Invalid

2006-03-21T17:11:00.000+08:00

After closing at above the RH top of 41.5 cents as denoted by the green dotted line, the head and shoulders formation is no longer valid. 41.5 cents is the former resistance has become the new support line. Looks like a double has just been confirmed. The next few days will be interesting. Stochastics, MACD and RSI moving in unison again. Volume increasing.Lets see how high price will continue to move up.

Onion Tech - Simple but effective?

2006-03-20T14:34:00.000+08:00

Why use so complicated trading system when simple methods are just as effective. It has happened twice before. Will it happen the 3rd time?

2006-03-20T00:18:00.000+08:00

Moving Average Convergence Divergence - MACD

A trend-following momentum indicator that shows the relationship between two moving averages of prices. The MACD is calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA. A nine-day EMA of the MACD, called the "signal line", is then plotted on top of the MACD, functioning as a trigger for buy and sell signals.

There are three common methods used to interpret the MACD:

1. Crossovers - As shown in the chart above, when the MACD falls below the signal line, it is a bearish signal, which indicates that it may be time to sell. Conversely, when the MACD rises above the signal line, the indicator gives a bullish signal, which suggests that the price of the asset is likely to experience upward momentum. Many traders wait for a confirmed cross above the signal line before entering into a position to avoid getting getting "faked out" or entering into a position too early, as shown by the first arrow.

2. Divergence - When the security price diverges from the MACD. It signals the end of the current trend.

3. Dramatic rise - When the MACD rises dramatically - that is, the shorter moving average pulls away from the longer-term moving average - it is a signal that the security is overbought and will soon return to normal levels.

Traders also watch for a move above or below the zero line because this signals the position of the short-term average relative to the long-term average. When the MACD is above zero, the short-term average is above the long-term average, which signals upward momentum. The opposite is true when the MACD is below zero. As you can see from the chart above, the zero line often acts as an area of support and resistance for the indicator.

http://www.investopedia.com/terms/m/macd.asp

2006-03-19T02:34:00.000+08:00

Arthur Hill On Moving Average Crossovers

A popular use for moving averages is to develop simple trading systems based on moving average crossovers. A trading system using two moving averages would give a buy signal when the shorter (faster) moving average advances above the longer (slower) moving average. A sell signal would be given when the shorter moving average crosses below the longer moving average. The speed of the systems and the number of signals generated will depend on the length of the moving averages. Shorter moving average systems will be faster, generate more signals and be nimble for early entry. However, they will also generate more false signals than systems with longer moving averages.

http://www.stockcharts.com/education/TradingStrategies/AHillMAcrossover.html

2006-03-18T02:49:00.000+08:00

Making Moving Averages Work

All traders at some time in their career have used moving averages as a basis for a trading system. These trading systems come in a variety of disguises, from plain vanilla “buy when the price crosses of the average” to dual and triple moving average crossings. What we are going to confine ourselves are simple methods of making moving averages work more effectively.

There is no question that moving averages can and do produce impressive results. Using some variation of MA to buying or shorting during bull or bear markets is child’s play. Unfortunately, their biggest problem occurs during trending markets. The reality is that most stocks spend 70% or more of their time in a trading range. It is during these trading ranges that the MA systems show their weaknesses by whipsaws and commission expenses.

Diversification is not necessarily a solution. No doubts it will help, but many stocks are strongly correlated. Approximately, 70% of all stocks will rise and fall at the same time. If we are going to diversify, then we need to use different stocks in different fields. Money management would have to deal with adjusting the stock mix to maintain a constant volatility for each the stocks. I discuss this in the eBook, The Three Day Hammer.

http://www.arbtrading.com/masystems.htm

2006-03-15T19:44:00.000+08:00

Bill M. Williams, Ph.D., C.T.AFounder and CEO of the Profitunity Trading Group

Bill M. Williams, Ph.D., C.T.A., is the founder of the Profitunity Trading Group, a leader in the education of traders and investors. He is a trader with over forty years experience. Besides coaching over two thousand traders in private tutorials, his two best-selling books, Trading Chaos and New Trading Dimensions, have contributed to furthering his unique trading concepts. He is also well known on the speaker circuit, with a loyal following of high-level traders. Williams has taught seminars throughout Europe, Asia and the United States including the Fractal of the Elliott Wave, the MFI and the "Alligator."

Justine Williams-Lara President of the Profitunity Trading Group

Justine Williams-Lara is a full time trader and President of the Profitunity Trading Group. She has been actively trading for 10 years in both the stock and commodity markets. She has trained over one thousand traders in the Profitunity Methodology and teaches all Private Tutorial classes in her office in Southern California. Her specialty is teaching new traders how to become consistent winners in the markets. She also teaches them how to manage their risk in order to achieve the results desired from the markets without the usual fear/greed factors involved in trading.

Justine has been featured throughout the country, speaking/appearing at conferences by Futures Industry Association, TAG, Bridge, FIA and OmegaWorld, and the MoneyWatch Expo. Trading is her life and teaching others to trade for their freedom is what makes her continue her father's work.

http://www.profitunity.com/

2006-03-15T02:01:00.000+08:00

Alligator Indicators by Bill Williams

Following are the Bill William's Alligator indicators I put together. Please read his book "Trading Chaos" and pick up a demo of his "Investor's Dream" software from his web site to see how they are used.

Hope you find them useful.

originally from Gary Randall -- Brunswick, Maine, U.S.A.

http://trader.online.pl/MSZ/e-w-Alligator_Indicators.html

2006-03-13T20:19:00.000+08:00

Alligator Technical Indicator

In principle, Alligator Technical Indicator is a combination of Balance Lines (Moving Averages) that use fractal geometry and nonlinear dynamics.

The blue line (Alligator’s Jaw) is the Balance Line for the timeframe that was used to build the chart (13-period Smoothed Moving Average, moved into the future by 8 bars);

The red line (Alligator’s Teeth) is the Balance Line for the value timeframe of one level lower (8-period Smoothed Moving Average, moved by 5 bars into the future);

The green line (Alligator’s Lips) is the Balance Line for the value timeframe, one more level lower (5-period Smoothed Moving Average, moved by 3 bars into the future).

Lips, Teeth and Jaw of the Alligator show the interaction of different time periods. As clear trends can be seen only 15 to 30 per cent of the time, it is essential to follow them and refrain from working on markets that fluctuate only within certain price periods.

When the Jaw, the Teeth and the Lips are closed or intertwined, it means the Alligator is going to sleep or is asleep already. As it sleeps, it gets hungrier and hungrier — the longer it will sleep, the hungrier it will wake up. The first thing it does after it wakes up is to open its mouth and yawn. Then the smell of food comes to its nostrils: flesh of a bull or flesh of a bear, and the Alligator starts to hunt it. Having eaten enough to feel quite full, the Alligator starts to lose the interest to the food/price (Balance Lines join together) — this is the time to fix the profit

http://www.metaquotes.net/techanalysis/indicators/alligator