Daily Techniques For Day Trader By Anthony Green Technical analysis can be defined as the study of past price behavior in an effort to determine patterns and trends that are believed to be predictable of the future. At the core of this school of thought is the assumption that human behavior is repetitive in nature. We all recognize that, although human behavior patterns may have recurrent tendencies, they do not normally express themselves in the same exact, mechanical manner each time. Even with this qualification in mind, technical analysis is capable of providing us with the ability to make price forecasts characterized with an improved probability of outcome. It can help us achieve the edge required in our pursuit of long-term consistent success.
A wide array of technical approaches is available. Some are better suited to articular personalities and styles of than others. This article will focus on just a few that I have found to be consistently helpful in interpreting intraday market behavior and making short-term price forecasts. My timeframe of choice is the intraday, primarily because it affords the greatest degree of immediate feedback.
An important element for consistent success is the ability to quickly realize one's mistakes. Intraday offers us a way to"have our finger on the button", and ready to take quick evasive action should our market judgements prove incorrect. Technical analysis tells us what has happened on a fairly consistent basis in the past, but it makes absolutely no guarantees about the future. Oscillator Divergence/Momentum Confirmation
The nature of day requires that the futures trader make a constant assessment as to whether a market is in a trending or trading-range mode. If the mode is determined to be trading-range we need a convenient means of identifying short term reversal points. On the other hand, if the mode is assumed to be trending, we require a means of identifying
(1) An appropriate entry point based on the trend currently in force.
(2) An appropriate exit point based on likely trend exhaustion.
An effective means of identifying such short term intraday market turning points involves an evaluation of the momentum behind successive market swings. Price momentum is the measure of the rate, or speed, of price change. Normally, if we are to expect successive market swings to continue creating new highs or new lows, we would expect the rate of price change to increase along with the move to new highs or new lows. If successive swings do not have an increase in momentum, the validity of any new push higher or lower is called into question.
One very effective tool for measuring price momentum is the 3/10 Oscillator. It is a simple indicator constructed by subtracting the 10 period Exponential Moving Average from the 3 period Exponential Moving. As an alternative, most charting packages offer construction of the MACD indicator (Moving
Seeking some bowlers... <!-- Begin check for Blog Icon -->
<!-- End check for Blog Icon -->
<!-- Begin check for Teaser Toggle -->
<div class="field-item"><p>OK, this has very little to do with retail, but I thought I'd throw it out there anyway.</p><p>Reader Chris asked me over the weekend if I know of any places in or around Raleigh that offer duckpin bowling or candlepin bowling (both varations on traditional bowling, more popular in the Northeast). I don't even remember the last time I went bowling, so I am not going to be of any help to Chris on this question. But if you know of a place, please share the details...</p></div>
<div class="node-blog-teaser-footer">
<div class="node-blog-teaser-comments"><a href="http://projects.newsobserver.com/taking_stock/seeking_some_bowlers#comment"><img src="http://www.newsobserver.com/images/front_new/icon_discussion.gif" width="11" height="7" border="0" /> Comments (0)</a>
<!-- If permissions, display edit link at end of teaser -->
<!-- End edit link code -->
</div>
</div>
<!-- End check for Teaser Toggle -->
<!-- BEGIN AUDIO ATTACHMENT CODE -->
Early voting at the mall... <!-- Begin check for Blog Icon -->
<!-- End check for Blog Icon -->
<!-- Begin check for Teaser Toggle -->
<div class="field-item"><p>The Wake County Board of Elections has opened a location in Raleigh's Triangle Town Center. Located in the outdoor "commons" portion of the mall near Orvis, Men's Warehouse and Archivers, the office will be an early voting location. You can see all the details about exactly when and where you can vote on the Board of Election's <a href="http://www.wakegov.com/WakeGov/Templates/Admin/HtmlContentNoLeftNav.aspx?NRMODE=Published&NRNODEGUID=%7b4EC45CA2-E723-4C72-B233-C1DFA3902F73%7d&NRORIGINALURL=%2felections%2fonestop%2fdefault%2ehtm&NRCACHEHINT=Guest#map">Web site here</a>.</p><p>Cary Towne Center and Beaver Creek Commons in Apex will also serve as early voting sites.</p></div>
<div class="node-blog-teaser-footer">
<div class="node-blog-teaser-comments"><a href="http://projects.newsobserver.com/taking_stock/early_voting_at_the_mall#comment"><img src="http://www.newsobserver.com/images/front_new/icon_discussion.gif" width="11" height="7" border="0" /> Comments (0)</a>
<!-- If permissions, display edit link at end of teaser -->
<!-- End edit link code -->
</div>
</div>
<!-- End check for Teaser Toggle -->
<!-- BEGIN AUDIO ATTACHMENT CODE -->
Save on a doctor's visit... <!-- Begin check for Blog Icon -->
<!-- End check for Blog Icon -->
<!-- Begin check for Teaser Toggle -->
<div class="field-item"><p>If you've taken your child to the doctor this year and purchased two Lysol products, you've already qualified for this one (I hope you saved your receipts!). </p><p>Lysol is offering a $5 Disinfect to Protect "reward" when you buy two Lysol products and take your child to the doctor. I am honestly not sure if the reward is an actual check or some other form of coupon/certificate (anyone know?). But $5 back is $5 back. And, since the promotion runs from Jan. 1, 2008 through March 31, 2009, you may have already made the qualifying purchases and had a qualifying doctor's visit.</p><p>All you need is your receipt, a copy of your doctor's office receipt or bill and the downloadable form below... </p><br /><br /><b>Document(s):</b><br /><a href='http://projects.newsobserver.com/sites/projects.newsobserver.com/files/pediRewards08.pdf'>pediRewards08.pdf</a><br /></div>
<div class="node-blog-teaser-footer">
<div class="node-blog-teaser-comments"><a href="http://projects.newsobserver.com/taking_stock/save_on_a_doctors_visit#comment"><img src="http://www.newsobserver.com/images/front_new/icon_discussion.gif" width="11" height="7" border="0" /> Comments (0)</a>
<!-- If permissions, display edit link at end of teaser -->
<!-- End edit link code -->
</div>
</div>
<!-- End check for Teaser Toggle -->
<!-- BEGIN AUDIO ATTACHMENT CODE -->
Good customer service... <!-- Begin check for Blog Icon -->
<!-- End check for Blog Icon -->
<!-- Begin check for Teaser Toggle -->
<div class="field-item"><p>I'm back to my favorite topic of customer service again because of <a href="http://consumerist.com/5043970/this-apology-letter-from-southwest-is-refreshingly-honest-and-informative">this post</a> on The Consumerist.</p><p>In it, a gentleman named Deepak praises Southwest Airlines (that's right, praises an airline!) for its response to his recent flight from Seattle to Oakland, which was turned around and sent back to its starting point because of a fluid leak. The letter he received explained fully what happened, apologized profusely and offered a $175 voucher as a make-up gesture. Wow... if only all companies had this customer service thing figured out...</p><p> </p></div>
<div class="node-blog-teaser-footer">
<div class="node-blog-teaser-comments"><a href="http://projects.newsobserver.com/taking_stock/good_customer_service#comment"><img src="http://www.newsobserver.com/images/front_new/icon_discussion.gif" width="11" height="7" border="0" /> Comments (1)</a>
<!-- If permissions, display edit link at end of teaser -->
<!-- End edit link code -->
</div>
</div>
<!-- End check for Teaser Toggle -->
<!-- BEGIN AUDIO ATTACHMENT CODE -->
Cheerios Challenge... <!-- Begin check for Blog Icon -->
<!-- End check for Blog Icon -->
<!-- Begin check for Teaser Toggle -->
<div class="field-item"><p>Cheerios is challenging Americans to eat Cheerios for six weeks to see if it lowers their cholesterol or makes them feel better. As part of the challenge, Cheerios is offering you six $1 coupons to help motivate you to buy Cheerios. <a href="http://www.cheerios.com/promotions/challenge/">You can sign up here</a>. As the site only asked for my e-mail address, I presume these are Internet Printable coupons that will be e-mailed to you... </p></div>
<div class="node-blog-teaser-footer">
<div class="node-blog-teaser-comments"><a href="http://projects.newsobserver.com/taking_stock/cheerios_challenge#comment"><img src="http://www.newsobserver.com/images/front_new/icon_discussion.gif" width="11" height="7" border="0" /> Comments (0)</a>
<!-- If permissions, display edit link at end of teaser -->
<!-- End edit link code -->
</div>
</div>
<!-- End check for Teaser Toggle -->
<!-- BEGIN AUDIO ATTACHMENT CODE -->
Today's coupons are up... <!-- Begin check for Blog Icon -->
<!-- End check for Blog Icon -->
<!-- Begin check for Teaser Toggle -->
<div class="field-item"><p>Good morning, everyone!</p><p>Usually on the weekend following a big holiday weekend, there are a lot of coupons, and that is the case today. In addition to the inserts, don't miss the Soy Joy coupon in Parade Magazine. It's a buy two get one free.</p><p>Today's coupons have been added to the database. As always, if you would like the Excel spreadsheet version, it is available for download below.</p><p>Also, I should note that I added a new feature to the spreadsheet this week for those of you who save the whole inserts so that you can go back to them later. At the top of my database, you should see the "Find a Coupon" heading, and below that you should now see both "Sue's coupon database" and a link to the right that says "Insert key." If you click on it, it will take you to a new page, where I give you a key for weeks when we have multiple Smart Source or Red Plum inserts. As most of you know, on those weeks, I will identify the insert in which a coupon was printed by using numbers (ie. SS1 and SS2). My new key will simply help you identify the insert by adding a detail like, "SS2 is the one with the Lasik ad on the front." But it should make identification easier for those of you who save the whole inserts. I hope it helps, anyway!</p><p>Happy clipping, everyone!!! </p><br /><br /><b>Document(s):</b><br /><a href='http://projects.newsobserver.com/sites/projects.newsobserver.com/files/Find a Coupon 0907.xls'>Find a Coupon 0907.xls</a><br /></div>
<div class="node-blog-teaser-footer">
<div class="node-blog-teaser-comments"><a href="http://projects.newsobserver.com/taking_stock/todays_coupons_are_up_26#comment"><img src="http://www.newsobserver.com/images/front_new/icon_discussion.gif" width="11" height="7" border="0" /> Comments (1)</a>
<!-- If permissions, display edit link at end of teaser -->
<!-- End edit link code -->
</div>
</div>
<!-- End check for Teaser Toggle -->
<!-- BEGIN AUDIO ATTACHMENT CODE -->
Reminder... free ice cream today... <!-- Begin check for Blog Icon -->
<!-- End check for Blog Icon -->
<!-- Begin check for Teaser Toggle -->
<div class="field-item"><p><img src="/sites/projects.newsobserver.com/files/images/iceCreamlogo.jpg" alt="" hspace="7" vspace="7" width="123" height="85" align="left" />Remember, Cameron Village is giving away free ice cream this afternoon. Customers are asked to bring the coupon from the N&O or the <a href="http://www.shopsofcameronvillage.com/go/Poolb.cfm?MallID=921&FPURLID=2129963527">Cameron Village Web site</a> to either the Baskin-Robbins shop in Cameron Village or the special "Cone Cafe" set up on Clark Avenue near the Party Shop and Accipiter. (If it rains, the Cone Cafe plans will be scrapped, and scoops will be available only at Baskin-Robbins.) The promotion runs from 1 to 5 p.m. </p></div>
<div class="node-blog-teaser-footer">
<div class="node-blog-teaser-comments"><a href="http://projects.newsobserver.com/taking_stock/reminder_free_ice_cream_today#comment"><img src="http://www.newsobserver.com/images/front_new/icon_discussion.gif" width="11" height="7" border="0" /> Comments (0)</a>
<!-- If permissions, display edit link at end of teaser -->
<!-- End edit link code -->
</div>
</div>
<!-- End check for Teaser Toggle -->
<!-- BEGIN AUDIO ATTACHMENT CODE -->
Shutterfly deals... <!-- Begin check for Blog Icon -->
<!-- End check for Blog Icon -->
<!-- Begin check for Teaser Toggle -->
<div class="field-item"><p>Of all the photo-processing and printing Web sites, my personal favorite is Shutterfly. Not only do they do a nice job with photos, but they also offer a ton of promotions and deals.</p><p>The latest one to land in my inbox was a promotion of Shutterfly's new Share Web sites. You can design your own Shutterfly Share site, upload pictures and invite your friends and family to look at them. Through Sept. 24, Shutterfly is offering a free 8x10 photo when you order 30 prints of any size. Use the code <strong>55SUMMER</strong> when you check out. To learn more about the Shutterfly Share sites, <a href="http://www.shutterfly.com/learn/newshare.jsp">click here</a>. </p></div>
<div class="node-blog-teaser-footer">
<div class="node-blog-teaser-comments"><a href="http://projects.newsobserver.com/taking_stock/shutterfly_deals#comment"><img src="http://www.newsobserver.com/images/front_new/icon_discussion.gif" width="11" height="7" border="0" /> Comments (0)</a>
<!-- If permissions, display edit link at end of teaser -->
<!-- End edit link code -->
</div>
</div>
<!-- End check for Teaser Toggle -->
<!-- BEGIN AUDIO ATTACHMENT CODE -->
It's National Coupon Month... <!-- Begin check for Blog Icon -->
<!-- End check for Blog Icon -->
<!-- Begin check for Teaser Toggle -->
<div class="field-item"><p>I know, I had no idea! I got a press release from the The Coupon Council this week promoting National Coupon Month. The thing that caught my eye was this statistic: <em>"The majority [of shoppers] spend less than 10 minutes per week clipping and organizing their coupons, and achieve a 7 percent average savings on their grocery bill."</em> </p><p>So to me, that means that even if you don't want to devote a lot of time to saving, you can still save a lot with a little effort. If you say the average family spends $100 a week on groceries, 7 percent of that is $7. And $7 multiplied by 52 weeks is $364. I'd say that's worth it... and of course, if you invest a little more time, you can make your savings grow in a big way. </p></div>
<div class="node-blog-teaser-footer">
<div class="node-blog-teaser-comments"><a href="http://projects.newsobserver.com/taking_stock/its_national_coupon_month#comment"><img src="http://www.newsobserver.com/images/front_new/icon_discussion.gif" width="11" height="7" border="0" /> Comments (0)</a>
<!-- If permissions, display edit link at end of teaser -->
<!-- End edit link code -->
</div>
</div>
<!-- End check for Teaser Toggle -->
<!-- BEGIN AUDIO ATTACHMENT CODE -->
Seeking outdoor adventurers... <!-- Begin check for Blog Icon -->
<!-- End check for Blog Icon -->
<!-- Begin check for Teaser Toggle -->
<div class="field-item"><p>If you like to go hiking or running on our local trails, you may want to consider entering New Balance's "Own the Trails" contest. New Balance is asking people to tell them about their favorite trails, and the winners will receive free New Balance equipment. <a href="http://www.backpackerpromo.com/newbalance/sweeps.php">You can enter here</a>.. </p></div>
<div class="node-blog-teaser-footer">
<div class="node-blog-teaser-comments"><a href="http://projects.newsobserver.com/taking_stock/seeking_outdoor_adventurers#comment"><img src="http://www.newsobserver.com/images/front_new/icon_discussion.gif" width="11" height="7" border="0" /> Comments (0)</a>
<!-- If permissions, display edit link at end of teaser -->
<!-- End edit link code -->
</div>
</div>
<!-- End check for Teaser Toggle -->
<!-- BEGIN AUDIO ATTACHMENT CODE -->
Prescription deal at HT... <!-- Begin check for Blog Icon -->
<!-- End check for Blog Icon -->
<!-- Begin check for Teaser Toggle -->
<div class="field-item"><p>I mentioned awhile back that Harris Teeter had sent me a mailing with a really good offer for transferring my prescription to the Harris Teeter pharmacy. It seems now that a slightly different version of this offer is available to all VIC card members.</p><p>Through Sept. 30, you can get a free $25 gift card for transferring your prescription to Harris Teeter. Then on top of that, you will also get a $10 credit added onto your VIC card for EACH prescription you transfer. There is no limit. So if you transfer one prescription, you'd get the $25 gift card and the $35 credit. If you transfer two, you'd get the $25 gift card and two $10 credits. That's a mighty nice incentive for a very small amount of work. You can find the details of the deal on Harris Teeter's <a href="http://www.harristeeter.com/promotions/e-vic/special_offer.aspx">Web site here</a>.</p><p>(As always, I caution do want to people who have multiple precriptions that bouncing them from pharmacy to pharmacy could be dangerous because of possible drug interactions.) </p></div>
<div class="node-blog-teaser-footer">
<div class="node-blog-teaser-comments"><a href="http://projects.newsobserver.com/taking_stock/prescription_deal_at_ht#comment"><img src="http://www.newsobserver.com/images/front_new/icon_discussion.gif" width="11" height="7" border="0" /> Comments (2)</a>
<!-- If permissions, display edit link at end of teaser -->
<!-- End edit link code -->
</div>
</div>
<!-- End check for Teaser Toggle -->
<!-- BEGIN AUDIO ATTACHMENT CODE -->
Get store credit for your old stuff... <!-- Begin check for Blog Icon -->
<!-- End check for Blog Icon -->
<!-- Begin check for Teaser Toggle -->
<div class="field-item"><p><img src="/sites/projects.newsobserver.com/files/images/Office%20Depot%20Tech%20Trade-In%20Main%20Page.preview.jpg" alt="" hspace="7" vspace="7" width="218" height="272" align="left" />Office Depot has launched a <a href="/www.officedepot.com/techtradein">new Web site</a> that offers consumers the chance to trade in their used electronics for store credit. Or, if the items are so old that they have no trade-in value, you can simply pay a small fee to have Office Depot recycle it and get it out of your house.</p><p>So, basically, shoppers can go to <a href="http://www.officedepot.com/techtradein">www.officedepot.com/techtradein</a> and search for the compuer, MP3 player, Smart phone, etc., that they wish to trade in. You tell the site a little bit about the condition of the product and it tells you what it's worth. If the amount is acceptable, you hit OK and receive a shipping label and instructions. Once your product has been received and inspected to make sure it matches your description, you are mailed an Office Depot gift card loaded with your trade-in amount.</p><p>Or, if you just wish to recycle items, you will need to pay a $5, $10 or $15 fee for the box and shipping, and Office Depot will take care of the rest. Seems like a mighty fine time to go hunting through your closets and garages for some old electronics to me...</p></div>
<div class="node-blog-teaser-footer">
<div class="node-blog-teaser-comments"><a href="http://projects.newsobserver.com/taking_stock/get_store_credit_for_your_old_stuff#comment"><img src="http://www.newsobserver.com/images/front_new/icon_discussion.gif" width="11" height="7" border="0" /> Comments (0)</a>
<!-- If permissions, display edit link at end of teaser -->
<!-- End edit link code -->
</div>
</div>
<!-- End check for Teaser Toggle -->
<!-- BEGIN AUDIO ATTACHMENT CODE -->
North Hills reschedules events... <!-- Begin check for Blog Icon -->
<!-- End check for Blog Icon -->
<!-- Begin check for Teaser Toggle -->
<div class="field-item"><p>Due to the current weather situation in Raleigh, North Hills has rescheduled two events.</p><p>The center's Iron Chef Competition is now rescheduled for two weeks from tomorrow on Saturday, Sept. 20. Chefs from Bonefish and Mura will go head-to-head using ingredients from the Farmers' Market, dishing up delicious treats for you to taste. Proceeds will go to benefit the InterFaith Food Shuttle. </p><p>And, the Farmer's Market that would normally take place tomorrow has been canceled. It will return as scheduled, next Saturday from 8 a.m. to 12 p.m. </p></div>
<div class="node-blog-teaser-footer">
<div class="node-blog-teaser-comments"><a href="http://projects.newsobserver.com/taking_stock/north_hills_reschedules_events#comment"><img src="http://www.newsobserver.com/images/front_new/icon_discussion.gif" width="11" height="7" border="0" /> Comments (0)</a>
<!-- If permissions, display edit link at end of teaser -->
<!-- End edit link code -->
</div>
</div>
<!-- End check for Teaser Toggle -->
<!-- BEGIN AUDIO ATTACHMENT CODE -->
Friday freebies... <!-- Begin check for Blog Icon -->
<!-- End check for Blog Icon -->
<!-- Begin check for Teaser Toggle -->
<div class="field-item"><p>Oh, it's Friday... which means it's time for freebies!!</p><p>*You can request a Quaker Simple Harvest granola bar <a href="http://startsampling.com/sm/100462/captureAddress.iphtml?item=100462&source">here</a>.</p><p>*There's a sample of Secret Clinical deodorant (this is a good one because that stuff is like $8). Try this link: <a href="https://secretsport.safeprocessing.com/">https://secretsport.safeprocessing.com/</a></p><p>*I've posted other Greenies samples before, but I think <a href="http://www.greenies.com/en_US/FreeSample/">this may be a new one</a>.</p><p>*And there's a sample of Bounce dryer sheets <a href="https://pgpromotions.archway.com/bounce_us/?utm_source=news.eml.200808">here</a>.</p></div>
<div class="node-blog-teaser-footer">
<div class="node-blog-teaser-comments"><a href="http://projects.newsobserver.com/taking_stock/friday_freebies_26#comment"><img src="http://www.newsobserver.com/images/front_new/icon_discussion.gif" width="11" height="7" border="0" /> Comments (0)</a>
<!-- If permissions, display edit link at end of teaser -->
<!-- End edit link code -->
</div>
</div>
<!-- End check for Teaser Toggle -->
<!-- BEGIN AUDIO ATTACHMENT CODE -->
Just for Men rebate... <!-- Begin check for Blog Icon -->
<!-- End check for Blog Icon -->
<!-- Begin check for Teaser Toggle -->
<div class="field-item"><p>Just for Men is offering a "Try Me Free" mail-in rebate for up to $8 when you purchase Just for Men hair color. You'll need your cash register receipt, dated before Dec. 31, 2008, plus the UPC code from the package and the mail-in rebate form that is available for download below... </p><br /><br /><b>Document(s):</b><br /><a href='http://projects.newsobserver.com/sites/projects.newsobserver.com/files/tryfree.pdf'>tryfree.pdf</a><br /></div>
<div class="node-blog-teaser-footer">
<div class="node-blog-teaser-comments"><a href="http://projects.newsobserver.com/taking_stock/just_for_men_rebate#comment"><img src="http://www.newsobserver.com/images/front_new/icon_discussion.gif" width="11" height="7" border="0" /> Comments (0)</a>
<!-- If permissions, display edit link at end of teaser -->
<!-- End edit link code -->
</div>
</div>
<!-- End check for Teaser Toggle -->
<!-- BEGIN AUDIO ATTACHMENT CODE -->
Average Convergence-Divergence). The 3/10 Oscillator can be simulated with the MACD by setting the short term parameter to 3, the long term parameter to 10, and the smoothing parameter to 1. When using the 3/10 Oscillator, we are attempting to identify one of two conditions on successive market swings that move to either new highs or to new lows. The first of these conditions is referred to as Oscillator Divergence and the second as Momentum Confirmation.
The two terms describe opposite conditions. Typically, each successively greater swing pivot high or swing pivot low will be accompanied by one or the other.In a market trending towards lower prices, Oscillator Divergence is described as a swing to new lows in price which is accompanied by a higher low in the oscillator. In a market moving towards higher prices, it is described as a swing to new highs in price which is accompanied by a lower high in the oscillator. Examples of both conditions are presented in the charts below.
In essence, Oscillator Divergence indicates that the current market movement is losing momentum. It is at these times that a reversal is most likely. If we had been considering a trade in the direction of the expected reversal, this would be an opportune time to initiate entry. On the other hand, when Momentum Confirmation occurs, we know that the current swing direction has some "oomph" left to it, and it would be best to either stay with existing positions or look for an opportunity to climb on board. When properly used, the 3/10 Oscillator can become a very helpful tool for the day trader. It is a quick and effective means of measuring market momentum, revealing valuable information about the market's underlying intent. Become proficient in its use, but also realize that it is not infallible.
Great Profit Potential Comes With Greater Risk By RICHARD PROUD Perhaps you have been trading stocks for a long time. You believe that you have mastered the art known as trading and want to go even further. You think you are ready to play with the big boys Read more...
System Trading: The Future Of Online Trading By John The main reasons behind online trading catching up so quickly are the tremendous improvements we have seen in the field of communication technology, especially in internet, the improved hardware Read more...
Benefits Of Online Stock Trading By penny stocks The new fad is online stock trading. Online stock trading refers to buying and/or sell securities by the stock investor himself on the Internet as compared to calling the broker and having him or her Read more...
The Foreign Exchange Market By Murtaza The Foreign exchange market deals with the trading of different foreign currencies. One currency is traded for another in the foreign exchange market only. Presently the foreign exchange market is by Read more...
