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Also in this issue: ■ Kondratieff Waves And 2018

■ Trading Brain Hack ■ Custom Sentiment Indicator
■ Interview With Hima Reddy ■ How Far Down Can It Go?
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 CONTENTS Bonus ISSUE 2018, Volume 36 Number 4

FEATURE ARTICLE can accurately predict when the

market might turn around but it
8 Your Trading Brain Hack gives you a path to follow. Here’s
by Charles Drummond & JB Wells one approach to use.
How often do you go through a
mental checklist before placing
a trade? Markets are chaotic and 22 Building A Custom
can overwhelm us, which in turn Sentiment Indicator
leads us to make hasty decisions. by Philipe Saroyan READERS’ CHOICE AWARDS
But if you wire your brain to think Traders always welcome trading
logically, it may make a difference signals generated by their indica-
32 2018 Readers’ Choice Awards
Stocks & Commodities presents
in how you make your trading tors. Often, these indicators are
the 2018 Readers’ Choice Awards,
decisions. Here’s an approach based on price and volume, but
with products and services that our
you could apply to help you think with the surge in social media,
subscribers are using and find use-
logically. it may be worth your while to
ful, in more than 20 categories.
pay attention to what the general
sentiment is to an equity, future, or
12 Strong Bullish & Bearish option. Find out why. 40 How Far Down Can It Go?
Candles by Rudy Teseo
by Azeez Mustapha INTERVIEW Not many people worry about how
In any given trading day, bulls high a market can go. It can go on
and bears battle it out. Even if a 28 Get The Gann Skinny From indefinitely. And while technically,
trend is generally bullish, there’ll Hima Reddy a market could potentially fall to
still be some selling going on. Trader, educator, author, and zero, the chance of that happen-
The reverse applies to a bearish mentor Hima Reddy, CMT, was ing is slim. Fibonacci retracement
trend. How can you get a sense of introduced to trading by her late levels are a handy reference guide
who is winning the battle at any father and has continued on that to have when you try to figure out
given moment? Some candlestick path since the day she laid eyes on how low a market could go. Find
patterns reveal this information her first price chart. She applies out how to apply them.
better than others. Here are some Gann’s price and time analysis to
to consider. the markets with a more mod-
ern approach. In her book The 43 2017 S&C Articles
Trading Methodologies Of W.D.
16 What To Expect In 2018 Gann, Reddy shares some of the
by Koos van der Merwe Gann analysis tools she uses. DEPARTMENTS
When a market has been strongly She has been an active member
bullish, it’s easy to get complacent 6 Opening Position
of the CMT Association for over
and focus on continuing to grow 15 years and is the CMT Content 31 †Traders’ Glossary
your net returns. The reality is that Director for the Wiley publishing 45 Classified Advertising
markets don’t always go up, which company. We spoke with her about
is why, as a precaution, it’s worth
45 Traders’ Resource
her trading journey and what at- 46 Advertisers’ Index
your time to map out the bigger tracted her to Gann analysis.
picture. That’s not to say that you 46 Editorial Resource Index

Copyright © 2018 Technical Analysis, Inc. All rights reserved. Information in this publication must not be stored or reproduced in any form without written permission from the publisher. Technical Analysis
of Stocks & Commodities™ (ISSN 0738-3355) is published monthly with a Bonus Issue in March for $89.99 per year by Technical Analysis, Inc., 4757 California Ave. S.W., Seattle, WA 98116-4499. Periodicals
postage paid at Seattle, WA and at additional mailing offices. Postmaster: Send address changes to Technical Analysis of Stocks & Commodities™ 4757 California Ave. S.W., Seattle, WA 98116-4499 U.S.A.
Printed in the U.S.A.

4 • Bonus Issue 2018 • Technical Analysis of Stocks & Commodities

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 Bonus Issue 2018 • Volume 36, Number 4
Opening Position
The Traders’ MagazineTM

W
EDITORIAL
editor@traders.com hat’s up with volatility? After
Editor in Chief Jack K. Hutson spending all of 2017 below its
Editor Jayanthi Gopalakrishnan average of 19, the VIX, a popular measure
Production Manager Karen E. Wasserman
of market fear, suddenly popped to a high
Art Director Christine Morrison
of 50 on February 6, 2018. I’ve always said
Graphic Designer Wayne Shaw
Webmaster Han J. Kim
the markets have an uncanny ability to sur-
Contributing Editors John Ehlers,
prise us. I guess that still holds. The more
Anthony W. Warren, Ph.D. complacent we get, the more of a surprise it
Contributing Writers Thomas Bulkowski, Martin Pring, throws at us. This just serves to wake us up to
Barbara Star, Markos Katsanos
the reality that when a market is overvalued
and is far from its mean, anything that can
OFFICE OF THE Publisher
Publisher Jack K. Hutson
cause jitters in the markets can lead to an explosive selloff, one you may not
Industrial Engineer Jason K. Hutson have expected.
Project Engineer Sean M. Moore
Controller Mary K. Hutson
In the midst of the euphoria and panic, let’s not forget that these days, machines
are increasingly placing trades, and at lightning-fast speeds. This leads to an
Advertising Sales exponential increase in the domino effect. Think about it—one sell triggers another
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circ@traders.com
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placing trades, and at
in such highly volatile environments. You lightning-fast speeds.
Website
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Staff members may be emailed through the Internet to accept that you’ve got to do the best with exponential increase
using first initial plus last name plus @traders.com what you have.
in the domino effect.

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6 • Bonus Issue 2018 • Technical Analysis of Stocks & Commodities

 Traders take many paths to reach their destination.
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8 • Bonus Issue 2018 • Technical Analysis of Stocks & Commodities
 Trading Systems

Three Keys To Unlock The Mystery

Your Trading Brain Hack

How often do you go through a mental checklist Let’s start the conversation
before placing a trade? Markets are chaotic and Ask yourself, “What is my long-term objective?”
can overwhelm us, which in turn leads us to make The initial conversation you have with yourself is
hasty decisions. But if you wire your brain to think important. Your chart might be suggesting several
logically, it may make a difference in how you make things; perhaps it holds a harbinger of something that
your trading decisions. Here’s an approach you could you might need later, or maybe there is an immediate
apply to help you think logically. need to take action. If you are to use this information

It
effectively in your trading, you must first decide how
doesn’t matter whether you’re a stock to categorize the information within your trading
trader, futures trader, or forex trader. framework. This, above all else, is the most important
Success in trading comes down to three function to a trader.
important skills, and in this article, we’ll share with Where and how you file information for future ac-
you what these are, based on our years of experi- cess is critical. When you read this article, or pick up a
ence. Trading may work for a while without these book, the moment you decide that this is information
three skills, but to turn on your trading more com- you want to use, whether it’s something to help you
pletely and create the trading business you’ve al- with trend-following or with countertrend entries,
ways wanted, you must have these three skills you then decide in advance where you are going to
working in your trading mindset. put this information in your trading process and in
The approach we’ll outline here is a simple tech- your mind.
nique anyone can use to help their trading process. We believe that an important goal for every trader
Essentially, these three skills are centered on how we is to become better at pattern recognition on the right-
communicate with ourselves—communicating with a hand side of the chart. When you gather information
purpose so we achieve the desired outcome. That is, and ideas about future market activity and store them
we follow a recipe in putting together the trade. And in your brain, something significant happens. Your
it all comes down to this question that we must ask brain says, “The next time I ask myself to analyze
ourselves and be able to answer: “Why am I going to market activity, I am going to be able to recall the
take this trade, and what process led to the decision method for this setup.” In essence, you plan recall
to initiate the trade?” in advance.
Oftentimes, we’ll hear something, and if it sounded
good, we might go tell it to others, even if we have The three keys
not fully mastered and internalized it ourselves. But Here, then, are the three important skills to master
the goal is to allow this to fully become a consistent and make part of your trading process. Incorporate
part of your trading personality. these into your thinking to be able to answer that
Our objective here is to help you figure out where all-important question mentioned earlier: Why am I
to file this knowledge in your head so it is readily going to take this trade, and what process led to the
accessible. Once you have mastered it, it will make decision to initiate the trade?
ken smith

trading more enjoyable and consistent.

by Charles Drummond & JB Wells

Bonus Issue 2018 • Technical Analysis of Stocks & Commodities • 9
 1. Visualize the outcome. Play a game in your brain called
“connect the dots.” Do you remember playing “connect the
dots” on the back of a placemat at a restaurant when you
were a kid? Remember how once you connected the dots, If you are to use this
you could then see the big picture? To think like a trader, information effectively in your
you need to see it in your mind first before you can have trading, you must first decide
the confidence to act. You need to connect the dots. how to categorize it within your
2. Simplify your thought process. Take complicated subjects trading framework.
and create a linear process that will establish clarity. Most
traders have difficulty because they cannot see how they
can get from one spot to another. The flow would look
like: “I can see how A connects to B and because B is
connected to C, I can then see how A flows to C. This Once bar #3 closes, you can use some big-picture informa-
allows me to decide what it is I am going to do.” tion. The 151% red bear energy is not able to push price down
anywhere near support. Notice another bullish clue—support is
3. Become a better decision-maker. Most traders cannot
simultaneously stepping up (see the blue up arrow). Also notice
effectively make decisions because they cannot connect
the dots. That’s why you need to break down the decision-
making formation. In other words, what processing
sequence allows a trader to comfortably act using their
trading method, whatever that may be? Find a series of
steps that works for you.
If you cannot connect the dots in your decision-making with
clarity, you will not have enough information and confidence
to decide when and how to trade. But once you achieve some
clarity, trading becomes more predictable and you’ll be able
to take action.

So first, the big picture

Maybe you are a countertrend daytrader.
How would you implement this approach?
We’ll present a scenario and give some chart
examples as one way to step through this
thought process.
Let us consider the September 22, 2017,
50,000-tick chart of the S&P 500 emini in

AXE GPS tools on Visual Energy Analysis software; Data from NINJATRADER
Figure 1 to see if we can begin the process of connecting the
dots to come up with the big picture. We are going to look for
any information that can either be used now or stored in the
“big picture container” in our trading brains for later. Note that
on the close (black square) of bar #1 there’s a zero at the top
of the chart (from our AXE GPS algorithm). That the zero is
green suggests that no bulls are to be found, so price falls down
to 2492. This happens in premarket trading. Values of 100% or
greater are an indication of crowd energy that could have the
ability to move prices dramatically, that is, red values down or
green values up. Bar #1 doesn’t provide enough information to
take action right away. However, we are seeing that the bulls
have currently lost the fight.
The close of bar #2 has a value much greater than 100%.
There’s 821% red energy coming into the market for the bears
and also an up blue exhaustion arrow for the next bar, #3. This
suggests the market is possibly bouncing up and support is
becoming strong, even under this strong crowd energy pushing FIGURE 1: CONNECT THE DOTS. The first step involves looking for any informa-
tion you can use to help see the big picture. The strength of the information (using
down. This is still not enough information to use, but it’s worth a scale helps) tells you whether to act on the information or just store it in your mind
storing this information for later use. for use later on.

10 • Bonus Issue 2018 • Technical Analysis of Stocks & Commodities

 Noisy indicators
delay your analysis
that the red numbers at the top are now weaker and less than
100%—they’re a low value of 75%. This is critical information
to a bull for a countertrade setup during the cash session. Why?
This is indicating to us that the crowd is losing its ability to
push down, and we can see this numerically and graphically
with our AXE GPS and AXE support forecasting tools. Jurik algorithms
The information we are seeing connects the dots and gives us
data for at least two timeframes. This is because we are looking
deliver low lag,
at the effect of the 50,000-tick chart’s support at 2495.25 being low noise analysis
picked up by the 2,000-tick chart (Figure 2), which ultimately
revealed the daily overlay support at 2494.50–2495.00 as a
strong lean of support to trade against.

Then the trees See Jurik Tools on NinjaTrader

Now that you have connected the dots in terms of the big picture https://tinyurl.com/jurik-ninja
and have clarity on multiple time periods, you need to lower
the resistance so you can make the decision to pull the trigger
when the time is right.
Let’s look at the lower time period chart in Figure 2, the Jurik Research
2,000-tick chart, which can be used for the trade entry chart.
At the top of this chart you see some red and green numbers
that we use as indications of strength and weakness. The red 2010 -- 2011 -- 2012 -- 2013
693 and 168 are strong values showing a break in support. Add-In software

The 103 with a blue up exhaustion arrow indicate that sup-

port is beginning to hold, and a wall of support is formed at jurikres.com • 800-810-3646 • 719-686-0074
2495.00 (drawn in purple). With no green energy coming into
the market, the market falls to test the limit cycle, and with a
strong red 274% unable to break support, the next bar’s red 89% Unlock your potential
indicates weakness at 2495.25, which was the support level in Now that you have all three pieces of the
the 50,000-tick chart. puzzle, you’re armed with the intel to act.
By working this type of approach into your
trading process, the mechanical part of your
brain will be more ready to trade.

Charles Drummond is a veteran futures trader who self-

programmed his method, called the Visual Energy Analysis
(VEA), based on his studies of market geometry and technical
analysis. JB Wells is a specialized futures and options trader
who developed the AXE GPS software based on Drummond’s
work on market geometry, intended to be a simplified, teach-
able method to approaching the markets. Together, they have
coached traders in 44 different countries. They may be reached
via their website at www.DrummondEnergyBands.com.

Further reading
Drummond, Charles [2015]. “Detecting Energy Patterns,”
Technical Analysis of Stocks & Commodities, Volume
33: November.
‡NinjaTrader; ‡Visual Energy Analysis (Drummond Energy
Bands)
‡See Editorial Resource Index
†See Traders’ Glossary for definition

FIGURE 2: LOOKING AT THE TREES. Once you have the big picture, you can zero
in on a shorter timeframe chart to make your entry and exit decisions.

Bonus Issue 2018 • Technical Analysis of Stocks & Commodities • 11

 Who’s Got The Power?

Strong Bullish & Bearish

Candles
In any given trading day, bulls and bears battle it out. Even if markets. But even in high-volatility or trending markets, you
a trend is generally bullish, there’ll still be some selling going still have to work hard to find trading opportunities. In this
on. The reverse applies to a bearish trend. How can you get article, I’ll discuss candlestick patterns that can help you
a sense of who is winning the battle at any given moment? identify trading opportunities and a strategy you can use to
Some candlestick patterns reveal this information better than play such candlesticks.
others. Here are some to consider.
Strong movement candlesticks
by Azeez Mustapha There are a few candle formations that alert us to impulse

A
movements in the markets that could lead to profit-making
trending or high-volatility market is a more fa- opportunities. You won’t usually find these candle formations
vorable environment for making profits. On the in equilibrium markets.
PT-LENS/SHUTTERSTOCK

other hand, if the market is in equilibrium or has Every trade you think of placing is based on a speculative
low volatility, it can be difficult to make money. idea with the intention of it generating consistent profits. But
As an astute trader, you would rather ignore low- bear in mind, you want to use a speculative idea that puts the
volatility markets and thrive in high-volatility odds in your favor when significant price movements occur.
12 • Bonus Issue 2018 • Technical Analysis of Stocks & Commodities
 FOREX TRADING
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FIGURE 1: Bullish and Bearish Marubozus. Here you see a bullish marubozu on an hourly chart of
gold futures. A bearish marubozu is seen in the four-hour chart of EURNZD. The red vertical lines and oval
MINUTES
shapes help identify the candles in question. The candles have been enlarged for better visualization. without coding

www.NeuroShell.com
301.662.7950
FIGURE 2: Bullish and Bearish Engulfing Patterns. Here you see a bearish engulfing pattern
on the four-hour chart of silver futures and a bullish engulfing pattern on the hourly chart of GBPCAD. The
red vertical lines and oval shapes help identify the candles in question.

When you see a significant breakout in an equilibrium mar- the upside, turning it into a support level. Conversely, when
ket, a bullish engulfing pattern, a bearish engulfing pattern, or you see a long and strong bearish candlestick on a chart, it
a marubozu forms. These strong candles initiate significant suggests that a support level has been breached to the downside
breakouts and trending movements in the market. They also and has turned into a resistance level.
indicate trend continuations after a retracement. (See the
sidebar “Bullish And Bearish Candles” for more informa- The strategy
tion on these candles.) In certain cases, the open price of the The strategy I discuss here is a low-risk, high-reward one that
white marubozu would almost be equal to the low price, and allows traders to open positions based on economic events or
the close price would be nearly equal to the high price. This market conditions that initiate strong movements. Once you
is also true of a black marubozu. become familiar with the strategy, you’ll find that by letting
In Figure 1 you see two charts side by side. The one on the your profits run for some time, you could end up generating
left shows a bullish marubozu on an hourly chart of gold. The average profits that are larger than your average losses.
chart on the right displays a bearish marubozu on a four-hour Part-time traders can also benefit from this strategy. It’s
chart of EURNZD. The marubozu is identified by red vertical not required that you sit at a desk and stare at your screen
lines and ovals. during the trading day. You can stare at it on your mobile
In Figure 2 you see examples of bearish and bullish engulfing device instead. Granted, you may miss some signals, but you
patterns. The four-hour chart of silver on the left displays a will still be able to take advantage of some of the signals. I
bearish engulfing pattern, whereas the hourly chart of GBP- encourage you to practice in a simulation mode and then de-
CAD on the right displays a bullish engulfing pattern. cide whether the hourly chart or the four-hour chart is better
Studies have shown that price tends to continue upward after suited to your needs.
a bullish marubozu or a bullish engulfing pattern. The price
tends to continue downward after a bearish marubozu or a Strategy details
bearish engulfing pattern. From these narratives, a speculator Strategy name: Strong bullish and bearish candles master
can start looking for entry opportunities after seeing these Strategy type: Contrarian and trend-following method
candles form on hourly or four-hour charts. Suitability: Part-time and full-time traders
When you see a long and strong bullish candlestick on your Time horizon: Hourly charts or four-hour charts
charts, it suggests that a resistance level has been breached to Bullish setup: Go long after the close of a bullish marubozu
Bonus Issue 2018 • Technical Analysis of Stocks & Commodities • 13
 Taking a signal off a bullish engulfing pattern When you see a
significant breakout
in an equilibrium
market, a bullish
engulfing pattern,
a bearish engulfing
pattern, or a
marubozu forms.
FIGURE 3: Trading With The Bullish Engulfing Pattern. On this four-hour chart of GBPJBY, the
red vertical line on the left shows where the trade was entered and the red vertical line on the right shows
where the trade was liquidated. A successful trade was made by entering the trade after a bullish engulfing
pattern formed and exiting once your target was reached.

or a bullish engulfing pattern. Caution: You may need to stop trading when you are down
Bearish setup: Go short after the close of a bearish marubozu more than 5% in a month; you can resume trading the fol-
or a bearish engulfing pattern. lowing month.
Stop-loss: 60 pips if signal is taken from an hourly chart; 100
pips if signal taken from a four-hour chart. An example of a trading signal
Take-profit: The take-profit should be three times higher than In Figure 3 you see an example of a trade taken based on the
the number of pips at risk. strong bullish and bearish candles strategy. The red vertical
Breakeven stop: You can move your stop to breakeven after line on the left shows where the trade was entered and the
gaining up to 65 pips. red vertical line on the right shows where the trade was liq-
Trailing stop: You can set a 50% trailing stop after gaining uidated. You can see from the chart that a bullish engulfing
up to 100 pips; 165 pips if signal is taken from a four-hour pattern formed, probably because bulls were purchasing lots
chart. of positions. An individual private trader would think there is
Position size: You may use 0.01 lots for each $2,000 (that is, something promising about the market and start taking action
0.05 lots for $10,000); or 0.1 lots for each 20,000 cents in a (like opening long positions). This can result in a more bullish
cent account (0.5 lots for each 100,000 cents). trend. When many retail speculators begin to buy because
Survival probability: The long-term hit rate is over 40% but
it is possible to be victorious with only 34% accuracy. Continued on page 42

Bullish And Bearish Candles

Note that the candlestick colors mentioned here are for controlled the price action the entire session. It usually implies
illustration purposes. You can choose any color you like, a bearish continuation or bearish reversal.
such as green or blue for a bullish candle, or red for a bear-
ish candle. Bullish and bearish engulfing patterns
The bullish engulfing pattern is a two-candlestick pattern
Marubozu that signals the possibility of a forthcoming strong up move.
Marubozu means “lack of shadow in the body.” Depending There’ll be a bearish candle immediately followed by a larger
on whether the candlestick’s body is filled or hollow, or red bullish candle.
or green, the high and low are the same as its open or close. This second candle “engulfs” the bearish candle. This
You can see the two types of marubozus in Figure 1. means buyers are flexing their muscles and there could
A white marubozu is made up of a long white body with be a strong up move after a recent downtrend or period of
no shadows. The open equals the low price and the close consolidation.
equals the high price. This is a bullish candle since it sug- The bearish engulfing pattern is the opposite of the bullish
gests that buyers were in control the entire session. It usually pattern. This type of candlestick pattern occurs when the bull-
becomes the first part of a bullish continuation or bullish ish candle is immediately followed by a bearish candle that
reversal pattern. completely “engulfs” it. It indicates that sellers overpowered
A black marubozu is made up of a long black body with buyers and a strong move down could happen.
no shadows. The open equals the high and the close equals
the low. This is a bearish candle that suggests that sellers Source: Babypips.com

14 • Bonus Issue 2018 • Technical Analysis of Stocks & Commodities

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 the chart of a Kondratieff wave
(K-wave) in Figure 1, the K-wave
calls for a collapse in 2019. Will
this happen, or will the K-wave

5.5" x 7.75"
be wrong again this time?

The K-wave

Bleed top
What has gone wrong with the
K-wave prediction? What has
changed? Admittedly, corrections

Bleed left
do not happen on the exact date
suggested by the K-wave, but
corrections do happen reasonably
close to them. Let us take a closer
look at the Kondratieff wave, and
also add a US presidential cycle
to see whether this is telling us
something. Let us also look at the
Elliott wave theory and find out if
it could provide further clues as to
future market movements.
You can’t help but wonder if
the US presidency is influencing
the K-wave and causing the Dow
Jones Industrial Average (DJIA)
to reach new highs, contrary
to the cyclical prediction. As a
businessman, President Donald
Trump tends to govern in the
same way he managed his busi-
nesses. He can change his mind
at a moment’s notice when he
sees an opportunity to succeed.
He could also accept money from
anyone or any country throughout
the world that will loan him the
Chart Bonanza

What To Expect
money at a low interest rate. As
king of his business empire, he can
fire and discharge any employee

In 2018
at the blink of eye should they
disagree with him or his policies.
So with all this in mind, let us
have a look at the K-wave with the
Presidential cycle superimposed
When a market has been strongly bullish, it’s easy to get complacent and focus on con- and see whether this is telling us
tinuing to grow your net returns. The reality is that markets don’t always go up, which anything. Let us also look at an
is why, as a precaution, it’s worth your time to map out the bigger picture. That’s not to Elliott wave analysis of the DJIA
say that you can accurately predict when the market might turn around but it gives you and S&P 500 indexes and see
RED WAVE: PRACTICUUM/GOLD LETTERS: RACKSUZ/
SHUTTERSTOCK/COLLAGE: CHRISTINE MORRISON

a path to follow. Here’s one approach to use. whether the answer to the future
lies somewhere there.
by Koos van der Merwe The chart in Figure 1 is a chart

In
of the K-wave showing how the
my article “Gann Fans & Kondratieff Waves” that appeared in the Technical three US presidents prior to the
Analysis of Stocks & Commodities Bonus Issue of 2016, I concluded that election of President Trump per-
Gann fans were not the key to cyclical analysis and that the Kondratieff wave formed relative to the K-wave. All
failed in its prediction of a major correction in March 2016. If you look at three of them were professional
16 • Bonus Issue 2018 • Technical Analysis of Stocks & Commodities
 cycles

Kondratieff Wave 2500

3
Years in which panics have occurred and will occur again
18 1999 20 2019 2000
2008 2017 2018
4
May 2007

1
1500

2
9 1989 10 1999 8 2007 9 2016 10 1000

Years of good times and high value. Time to sell values of all kinds
500

S&P 500 Index

0
11 9 7 11

1985 1996 2000 2001 2002 2003 2004

2005 2007 2008 2009 2010 2011
2012 2015 2016 2017
2023
Years to buy stocks and hold -500
President President President President
Clinton Bush Obama Trump
1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

FIGURE 1: THE KONDRATIEFF WAVE WITH PRESIDENTIAL CYCLE AND ELLIOTT WAVES. The S&P 500 rose strongly during Barack Obama’s presidency, and
after an Elliott wave 4 correction called for by the K-wave, the index continued rising during the Trump presidency in an extended Wave 5. The K-wave is calling for
a major correction in 2019.

politicians before assuming the presidency. economic outcome following the tax cuts he implemented. The
President Bill Clinton, the first president who appears on stock market reflects how fast an economy is growing when
the chart, served as governor in Arkansas in 1978 at the age of tax cuts are applied. The market also depends on the type of
32, becoming the youngest governor in the country. Working tax cuts and how high they were before the cut. The Laffer
closely with his wife Hillary, he set out on an ambitious agenda curve, a theory developed by the economist Arthur Laffer to
to reform the education and healthcare systems of Arkansas. show the relationship between tax rates and the amount of tax
After losing reelection in 1980, he once again sought out the revenue collected by governments, shows that cutting taxes
governorship in 1982 and was swept back into office. Note- only increases government revenue up to a point. In addition,
worthy was his tactic of constantly consulting public opinion cutting taxes for businesses doesn’t always necessarily mean
polls and pitching policies through carefully orchestrated that businesses will automatically increase staff or increase
advertising campaigns. His wife Hillary was always by his salaries. Businesses are carefully managed and tend to look
side and headed a committee on education reform. Clinton for an end-of-year profit increase to improve their share price
was elected president in 1992, with the first of his two terms and thus benefit shareholders.
in the office of the president starting in 1993. Black Monday, a fully fledged stock market crash in October
President George W. Bush became president in 2001 follow- 1987, as shown on the chart in Figure 2, occurred during the
ing President Clinton. He had previously served as governor Reagan era. This crash, the first-ever global stock market crash,
of Texas from 1995 to 2000. ended up being the second biggest single-day percentage drop
President Barack Obama won the election of 2008 and in the history of the American stock market. The DJIA lost
assumed office in January 2009. Once again in this case, an 22.61% of its value, the largest one-day decline. Program trad-
American politician became president. He was previously a ing, where computers perform rapid stock executions based on
junior US senator from 2005 to 2008, and served in the Il- external inputs, overvaluation, and market psychology, were
linois state senate from 1997 to 2004. He was also the first believed to be contributing factors in the decline.
African American to serve as president. Looking at the K-wave, we can see that a correction was
Donald John Trump won the presidency in 2016. He is the only called for in 1989, when George H.W. Bush became
first president of this list who was not a politician before he president. However, Alan Greenspan became chairman of the
was elected, but instead was a successful businessman, in board of governors of the Federal Reserve System on August
spite of suffering four bankruptcies. 11, 1987, taking over from Paul Volcker. This was in the two
A look, however, at Reaganomics, the economic policies months before the October 1987 market crash. Greenspan acted
of president Ronald Reagan who served 1981–1989 (a period quickly to ensure liquidity in the markets and the stock market
not covered in Figure 1 but shown in Figure 2), shows the recovered under his administration. He was also successful
Bonus Issue 2018 • Technical Analysis of Stocks & Commodities • 17
 4
850
iii
800
1981 1984 1989 1993
750
iv
700
650
600
Jan 1994
550
i 500
June 1990
450
1980 1989 ii
400
1 Dec 1994
i
Oct 1987 350
300
2
250
ii 200
150
100

Gerald Ford Jimmy Carter Ronald Reagan George HW Bush Bill Clinton 5
Republican Democrat Republican Republican Democrat
08/09/74– 01/20/77–01/20/81 01/20/81–01/20/89 01/20/89–01/20/93 01/20/93–01/20/01 0
01/20/77
1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 -150

FIGURE 2: TAX CUT EFFECTS. The K-wave suggests a correction was called for in 1989 but the market crashed in October 1987.

in handling two US recessions as well as the September 11, after an Elliott wave 4 correction called for by the K-wave, the
2001 terrorist attacks. Greenspan’s last term ended on January index has continued rising during the Trump presidency in an
31, 2006. He was succeeded by Ben Bernanke. extended Wave 5. The K-wave is calling for a major correction
in 2019. Midterm elections are being held on November 6,
A look at the Kondratieff wave 2018, in the middle of Republican President Donald Trump’s
The chart in Figure 1 is a chart of the Kondratieff wave from term. Could you assume the election results could be the cause
1985 to the present, showing the years each president served. for the major market correction suggested by the K-wave at
The chart also shows a monthly chart of the S&P 500 index the start of 2019?
with an Elliott wave count suggesting the index could be
tracing a Wave 5. Elliott wave analysis
Looking at the chart in Figure 1, you can see how the S&P Let’s turn to Elliott wave theory, which was developed by
500 rose strongly during Barack Obama’s presidency, and Ralph Nelson Elliott. After working in Mexico, he gradu-
ated to a rocking chair because of a physical malady that he
5 B developed. His rocking chair was on a front porch in Cali-
fornia. With time on his hands as he struggled to get well, he
c
b 2
5 a

3 Wave 5 3
a
c b
1 4
started studying the stock market, especially the movement
of the Dow Jones averages. He discovered that the movement
Wave A Wave B 3
4 A

of the DJIA would repeat itself. He wrote a book called The

5 Wave 4
b 1 Wave C 5
C
Wave Principle that explained in detail his observations.
a 2

c 4

Wave 3
3
In his second book, a larger work called Nature’s Law that
4 incorporated the wave principle, he introduced the magic of
1 Fibonacci and certain esoteric propositions that he believed
5
Wave 2
1 confirmed his views.
Wave 1
3 b
2 In their book Elliott Wave Principle, A.J. Frost and Robert
Prechter sought to explain the basic theory of the Elliott wave
a
4
1 c 2

2
concept as put forth by R.N. Elliott, in simple terms and to
avoid, for the most part, areas of dispute.
FIGURE 3: BASIC ELLIOTT WAVE PATTERN. The stock market rises in five The chart in Figure 3 is a chart of the basic pattern of El-
waves up and three waves down to form a complete cycle of eight waves. Waves
one, three and five are known as “impulse waves,” and waves two and four as
liott waves. In his writings, Elliott pointed out that the stock
“corrective waves.” Each major wave can in turn be subdivided into impulse and market would rise in five waves up and three waves down to
corrective waves. form a complete cycle of eight waves. Waves 1, 3 and 5 are
18 • Bonus Issue 2018 • Technical Analysis of Stocks & Commodities
known as “impulse waves,” and waves 2 and 4 as “correc-
tive waves.” Each major wave can in turn be subdivided into
impulse and corrective waves as shown on the chart. Elliott The year 2018 will be an
also suggested that the ABC corrective wave is 38.3% of the
impulse wave in time. The basic chart has a wave 3 greater interesting year—a year to be
than a wave 1 and a wave 5 equal to a wave 1. Elliott wrote cautious and a year to watch
that extensions do, however, occur quite often. carefully.
Extensions are exaggerated or elongated movements that
generally occur in one of the three impulse waves. Look-
ing at a present Elliott wave count of the S&P 500 index
in Figure 4, it’s clear that the fifth wave is currently in an chief Janet Yellen in February 2018, you may be inclined to
extension. Elliott wrote that when an extension occurs in the remember what happened when Alan Greenspan succeeded
fifth upwave, an irregular top will carry the market into new Paul Volcker after Reaganomics brought in its tax-reduction
high ground, “thereby extending the movement beyond the policies. The year 2018 will be an interesting year—a year to
orthodox top of the fifth wave.” How high Wave 5 can rise be cautious and a year to watch carefully. With the K-wave
under the Trump presidency is anyone’s guess and with his calling for a correction at the end of the year give or take a
recent tax bill becoming law, a law that benefits businesses, few months, and with the Elliott wave tracing an extended
who knows how high the indexes could go before correcting. Wave 5, there is no doubt a market correction is in the cards.
But what is disturbing is that the Reaganomics tax cut that Exactly when it will occur is the question.
benefited businesses led to the October 1987 crash. Elliott wave analysis suggests there will be an ABC cor-
rection. The question is whether the Wave A correction will
What can we expect in 2018? occur during 2018, with a Wave B recovery also in 2018
With the Elliott wave count currently in a Wave 5 extension before the major crash in a Wave C, or whether the Wave A
and the RSI 14 indicator at overbought levels, technical analysis correction will occur sometime in 2018 toward the beginning
suggests that a correction could occur at any time. With Jeremy of 2019, with the Wave C collapse only occurring at the end
Powell, President Trump’s nominee to succeed Federal Reserve of President Trump’s four-year term in January 2021. The

SINCE

THESE RESULTS ARE BASED ON SIMULATED OR HYPOTHETICAL PERFORMANCE RESULTS THAT HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE THE RESULTS SHOWN IN AN ACTUAL PERFORMANCE RECORD, THESE RE-
SULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, BECAUSE THESE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THESE RESULTS MAY HAVE UNDER-OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN
MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED OR HYPOTHETICAL TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REP-
RESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THESE BEING SHOWN. THE TESTIMONIAL MAY NOT BE REPRESENTATIVE OF THE EXPERIENCE OF OTHER
CLIENTS AND THE TESTIMONIAL IS NO GUARANTEE OF FUTURE PERFORMANCE OR SUCCESS. TECHNICAL ANALYSIS OF STOCKS & COMMODITIES LOGO AND AWARD ARE TRADEMARKS OF TECHNICAL ANALYSIS, INC.

Bonus Issue 2018 • Technical Analysis of Stocks & Commodities • 19

 V 3000
v

13 period MA
iii 2500
40 period MA
III i iv
80 period MA v b

iii
ii 2000
Oct 2007
a c
July 2000 B iv IV
V c 1574.22
a
c 2 1370.60
I
v
i 1500
III b a xb iii
5 ii a c b 1 ii
I x
a i b 4i iv II 1000
3 IV
v ii
iii
4 iii c v 814.41 3
Oct 2002 c5
i iv 500
i 1 A C
ii Mar 2009
I
2
ii
0

RSI 14, 7, 3 100

SELL
50
BUY
0
MACD 13, 26, 9 100
0
-100
1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

FIGURE 4: A FIFTH WAVE EXTENSION. With the Elliott wave count presently in a Wave 5 extension and the RSI 14 indicator at overbought levels, technical
analysis suggests that a correction could occur at any time. It’s a matter of watching and waiting.

Kondratieff wave, however, is suggesting a correction in 2019, [2012]. The Wave Principle (The Original 12 Fi-
bottoming in 2023 (see “Years to buy stocks and hold” on the nancial World Articles), Alanpuri Trading. Originally
chart). A look at previous bottoms of the index shows that the published in 1939.
recovery of the S&P 500 index happened two to three years Kondratieff, Nikolai [1925]. The Major Economic Cycles.
before what the K-wave suggested, which points to anytime [1984]. Long Wave Cycle, Richardson & Snyder.
between 2020 and 2023. This tends to lend more weight to a Originally published in 1925.
correction sometime in 2018 or early 2019, although a look van der Merwe, Koos [2016]. “Gann Fans & Kondratieff
at the chart shows that tops took place one to two years after Waves,” Technical Analysis of StockS & commoditieS,
the date the K-wave suggested, with the year 2016 being an Volume 34: Bonus Issue.
exception. [2015]. “Where Is The Market Heading?” Techni-
Then of course, there is the cryptocurrency play, which cal Analysis of StockS & commoditieS, Volume 33:
looks more like the Tulip mania of the early 17th century. No September.
doubt about it—2018 will be an interesting year. [2014]. “Looking At Cycles,” Technical Analysis of
StockS & commoditieS, Volume 32: September.
Koos van der Merwe has been a technical analyst since [2011] “Today’s K-Wave And Beyond,” Technical
1969, having worked as a futures and option trader at a stock Analysis of StockS & commoditieS, Volume 29: April.
brokerage firm in Johannesburg, South Africa. He may be [2010]. “Gann And The Time Factor,” Technical Analy-
contacted at petroosp@gmail.com. sis of StockS & commoditieS, Volume 28: August.
[2010]. “Kondratieff Wave Comeback,” Technical
furTher reading Analysis of StockS & commoditieS, Volume 28: April.
Frost, A.J., and Robert Prechter [1985]. Elliott Wave Principle: [2008]. “My Kondratieff Wave,” Technical Analysis of
Key To Market Behavior, New Classics Library. StockS & commoditieS, Volume 26: November.
Gann, W.D. [1927]. Tunnel Thru The Air, Or Looking Back ‡Advanced GET, ‡eSignal
From 1940, Lambert-Gann Publishing. ‡See Editorial Resource Index
Gann, W.D. [1942]. How To Make Profits In Commodities,
Lambert-Gann Publishing Co.
Elliott, Ralph Nelson [1946]. Nature’s Law: The Secret Of
The Universe.
[2013]. The Wave Principle, Alanpuri Trading.
Originally published in 1938.
20 • Bonus Issue 2018 • Technical Analysis of StockS & commoditieS
Make Futures a part of your present.
Trade over 50 futures products on your desktop or mobile device with thinkorswim®.
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 Bull, Bear, or Neutral

Building A Custom
Sentiment Indicator

T
Traders always welcome trading signals generated by their he goal of this article is to demonstrate
indicators. Often, these indicators are based on price and how you can capture sizable returns from
EURO PLANT: MICHIRU/SHUTTERSTOCK

volume, but with the surge in social media, it may be worth discounting sentiment on euro futures. I will
your while to pay attention to what the general sentiment is present backtest results from the Ninja­Trader
to an equity, future, or option. Read on to find out why. 7 trading platform and also define some of the
groundwork required to build the strategy.
by Philipe Saroyan Think of it as a value-added article!

22 • Bonus Issue 2018 • Technical Analysis of Stocks & Commodities

 TRADING SYSTEMS

3 Year High Low

2 15-Year pattern
5-Year pattern 2017 1.20325 1.05530
1 2016 1.17580 1.05395
0 2015 1.24410 1.08750
-1 2014 1.42990 1.25340
Seasonal Sector Trades

-2 2013 1.41270 1.35490

-3 FIGURE 2: HIGHS & LOWS OF EURO
FUTURES. Here you see the results of
-4
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec the closed-end-fund-discount indicator
FIGURE 1: SEASONAL PATTERNS IN THE EURO (1989–2013). Here you see the one-year from 2013–2017.
seasonal pattern of the euro for a five- and 15-year period.

Euro ETF
valuable sentiment indicator, to the underlying euro
0.015
ETF (FXE), it was evident the euro was trading at a
discount. This generally is a positive tone for the medium
0.010 to long term for stock and futures prices. The CEFD
doesn’t indicate direction or momentum. It follows no
0.005 order or logic other than to discount the sentiment of
FXE based on the previous day’s net asset value and
0 midpoint price.
The formula for the closed-end fund discount is as
1
50
99
148
197
246
295
344
393
442
491
540
589
638
687
736
785
834
883
932
981
1030
1079
1128
1177
1226
1275
1324
1373
1422
1471
1520
1569
1618
1667
1716
1765
1814
1863
1912
1961

-0.005 follows:

-0.010
CEFD Indicator

FIGURE 3: DAILY SENTIMENT READINGS. Here you see seven years of daily sentiment
data for the euro ETF (FXE).
CEFD(%) = LN
( Midpoint pricet–1
NAVt–1 )
In Figure 2 you see the most recent results of the
CEFD Indicator (Daily vs. Weekly)
0.015 closed-end fund discount indicator for FXE. When the
underlying is trading at a discount to the NAV price,
0.010 it’s a buy signal, and when it’s trading at a premium to
the NAV price, it’s a sell signal. Overall, the tone has
0.005 been a buy signal.

0 Daily sentiment readings

From the daily sentiment readings in Figure 3, you
1
52
103
154
205
256
307
358
409
460
511
562
613
664
715
766
817
868
919
970
1021
1072
1123
1174
1225
1276
1327
1378
1429
1480
1531
1582
1633
1684
1735
1786
1837
1888
1939
1990
2041
2092
2143
2194
2245
2296
2347
2398
2440
2500
2551
2601
2653
2704
2755
2806
2857

-0.005
may see a pattern that resembles the ebb and flow of a
tide or seismic readings during an earthquake. But the
-0.010
sentiment readings from the CEFD indicator on FXE
CEFD Indicator CEFD Indicator (weekly)
have less to do with any crowding-in or crowding-out
FIGURE 4: WEEKLY SENTIMENT READINGS. A glance at this chart indicates that senti- effect, and more to do with discounting the overall
ment is volatile. sentiment itself.

Seasonal patterns of the euro Weekly sentiment readings

According to the Stock Trader’s Almanac, seasonally, the euro Figure 4 is a chart displaying weekly sentiment readings based
will continue a steady climb higher until the end of the year on the same CEFD indicator for FXE. It’s difficult to know
in December. In Figure 1 you see a snapshot of the one-year how to base a decision on such a reading, but as you’ll find
seasonal pattern for each month on euro futures from 1989 out from the backtest results, this strategy can be profitable
to 2013 for five and 15 years. The five-year seasonal pattern with a batting average above 0.500, so to speak. The results
suggests that price will bottom in mid-July and peak by the will be shown a little later.
end of October. The 15-year seasonal pattern shows that price You’ll notice there is a tendency to stay around the zero
will continue rising till the end of the year. line—there’s no upward or downward trend. The sentiment
readings are more or less volatile.
Sentiment indicator How could anyone profit from this seeming amount of noise?
When I applied the closed-end fund discount (CEFD), a You’ll have to know how to program and trade algorithmi-
Bonus Issue 2018 • Technical Analysis of Stocks & Commodities • 23
 14
Bull-Bear Msg Ratio - Single Day Bull-Bear Message Ratio for SPY

When any news or

30-Day Rolling Average

12

tradable event occurs,

10
this can provide profitable
situations for would-be
Bull-Bear Msg Ratio

6
traders and investors.
4

cally, but that’s not the focus of this study. This study
focuses on sentiment, and because sentiment could only
2

0
be one fragment of the entire picture for markets in
2010 2011 2012 2013 2014
As Of Date (asof_date)
2015 2016 2017
general, the real question is, when do you trade based
FIGURE 5: WHAT ARE PEOPLE SAYING? Here you see sentiment readings from StockTwits on sentiment?
messages on the SPY. There’s a slight upward trend to the bull–bear ratio. The seven-year backtest results show consistent-
enough results to presume we could simply put it on,
and not have to worry about the ebbs and flows, assum-
ing proper money management. And with only a few
drawdowns and down years, that could be true. But
nobody survives for long in down years.

Social media factor

Think of sentiment trading as an aside, just like any
trading technique. It is particularly good for implement-
ing as a trade tactic for a smart beta portfolio since you
can diversify with a noncorrelated portfolio or trading
strategy.
The graph in Figure 5 shows sentiment readings from
ninjatrader

StockTwits messages on SPDR ETF (SPY), a market

proxy. This was compiled on Quantopian. Once again,
FIGURE 6: BACKTEST RESULTS FOR THE CEFD INDICATOR ON EURO FUTURES the theme is similar. There seems to be a drift that climbs
(2010–2017) away from the zero line with only a slight upward trend
of the bull–bear ratio.

Why sentiment?
If you’re not already trading based on sentiment, you’ll
want to start soon. Sentiment indicators can provide
great winning percentages, as you’ll see in Figure 6,
which shows the results on a backtest performed in
NinjaTrader. The weekly CEFD indicator managed to
produce a winning percentage of 55.97% on all trades
since 2010 (Figure 7).
In addition to the high winning percentage, some other
reasons to start trading based on sentiment are:

• Complements other indicators

• A turnkey solution for technical traders
• Provides context for serious traders and investors.

When any news or tradable event occurs, this can

provide profitable situations for would-be traders and
investors. Statistically, having a winning percentage
greater than 50% opens the possibility of greater, ad-
FIGURE 7: PERFORMANCE SUMMARY OF WEEKLY CEFD INDICATOR FOR EURO FU- vanced money management.
TURES. The CEFD produced a winning percentage of 55.97% on all trades since 2010. However, rarely do would-be traders identify the
24 • Bonus Issue 2018 • Technical Analysis of Stocks & Commodities
context of this trading situation as a market maker would. Philipe Saroyan is a financial writer with current works in
The point of sentiment trading is to be able to differentiate specialized research, digital content, and web development.
between purely sentiment activity and that which offers per- He can be reached at philipe@liaisons.press.
manent returns. You’ll be able to do this by combining multiple
sentiment indicators. The logic behind this is to differentiate Further reading
between signals and noise. Saroyan, Philipe [2016]. “A Sentiment Indicator For Trading
From Figure 7 you’ll notice the win rate is comfortably above The Euro,” Technical Analysis of Stocks & Commodi-
50%. Unless you have a proven indicator or trading strategy ties, Volume 34: November.
that produces similar results with a winning percentage above [2017]. “Discounting Sentiment In The Euro,”Technical
50%, you might want to jump straight to the sidebar “The Analysis of Stocks & Commodities, Volume 35: April.
Code” to learn how to build and trade the CEFD indicator Hirsch, Jeffrey A. [2018]. Stock Trader’s Almanac, https://
in NinjaTrader. With the compiled code, you would need to www.stocktradersalmanac.com.
import NAV prices for the ETF in question. Hirsch, Jeffrey A., and John L. Person [2014]. Seasonal Sec-
tor Trades, Wiley.

THE CODE
}
Here is code for NinjaTrader for building and trading the
CEFD indicator. With the compiled code, you will need to /// <summary>
/// Called on each bar update event (incoming tick)
import NAV prices for the ETF of interest. /// </summary>
protected override void OnBarUpdate()
#region Using declarations {
using System;
using System.ComponentModel; if( CurrentBar < 5 )return;
using System.Diagnostics; // Use this method for calculating your indicator values.
using System.Drawing; Assign a value to each
using System.Drawing.Drawing2D; // plot below by replacing 'Close[0]' with your own formula.
using System.Xml.Serialization;
using NinjaTrader.Cbi; Plot0.Set((Medians[1][0] - Closes[2][0])/Closes[2][0]);
using NinjaTrader.Data; }
using NinjaTrader.Gui.Chart;
#endregion #region Properties
[Browsable(false)] // this line prevents the data series from
// This namespace holds all indicators and is required. Do not being displayed in the indicator properties dialog, do not remove
change it. [XmlIgnore()] // this line ensures that the indicator can be
namespace NinjaTrader.Indicator saved/recovered as part of a chart template, do not remove
{ public DataSeries Plot0
/// <summary> {
/// Closed-End-Fund Indicator get { return Values[0]; }
/// </summary> }
[Description("Closed-End-Fund Indicator")]
public class CEFDIndicator : Indicator [Description("")]
{ [GridCategory("Parameters")]
#region Variables public string FirstInstrument
// Wizard generated variables {
private string firstInstrument = @"FXE"; // Default setting get { return firstInstrument; }
for FirstInstrument set { firstInstrument = value; }
private string secondInstrument = @"FXE.NV"; // Default }
setting for SecondInstrument
// User defined variables (add any user defined variables [Description("")]
below) [GridCategory("Parameters")]
#endregion public string SecondInstrument
{
/// <summary> get { return secondInstrument; }
/// This method is used to configure the indicator and is called set { secondInstrument = value; }
once before any bar data is loaded. }
/// </summary> #endregion
protected override void Initialize() }
{ }
Add(new Plot(Color.FromKnownColor(KnownColor.Or-
ange), PlotStyle.Line, "Plot0")); #region NinjaScript generated code. Neither change nor remove.
Overlay = false; // This namespace holds all indicators and is required. Do not
CalculateOnBarClose = true; change it.
Add(FirstInstrument,PeriodType.Day,1); namespace NinjaTrader.Indicator
Add(SecondInstrument,PeriodType.Day,1);

Bonus Issue 2018 • Technical Analysis of Stocks & Commodities • 25

 { }
public partial class Indicator : IndicatorBase }
{ }
private CEFDIndicator[] cacheCEFDIndicator = null;
// This namespace holds all market analyzer column definitions
private static CEFDIndicator checkCEFDIndicator = new and is required. Do not change it.
CEFDIndicator(); namespace NinjaTrader.MarketAnalyzer
{
/// <summary> public partial class Column : ColumnBase
/// Closed-End-Fund Indicator {
/// </summary> /// <summary>
/// <returns></returns> /// Closed-End-Fund Indicator
public CEFDIndicator CEFDIndicator(string firstInstrument, /// </summary>
string secondInstrument) /// <returns></returns>
{ [Gui.Design.WizardCondition("Indicator")]
return CEFDIndicator(Input, firstInstrument, secondInstru- public Indicator.CEFDIndicator CEFDIndicator(string firstIn-
ment); strument, string secondInstrument)
} {
return _indicator.CEFDIndicator(Input, firstInstrument,
/// <summary> secondInstrument);
/// Closed-End-Fund Indicator }
/// </summary>
/// <returns></returns> /// <summary>
public CEFDIndicator CEFDIndicator(Data.IDataSeries input, /// Closed-End-Fund Indicator
string firstInstrument, string secondInstrument) /// </summary>
{ /// <returns></returns>
if (cacheCEFDIndicator != null) public Indicator.CEFDIndicator CEFDIndicator(Data.IData-
for (int idx = 0; idx < cacheCEFDIndicator.Length; idx++) Series input, string firstInstrument, string secondInstrument)
if (cacheCEFDIndicator[idx].FirstInstrument == firstIn- {
strument && cacheCEFDIndicator[idx].SecondInstrument == sec- return _indicator.CEFDIndicator(input, firstInstrument,
ondInstrument && cacheCEFDIndicator[idx].EqualsInput(input)) secondInstrument);
return cacheCEFDIndicator[idx]; }
}
lock (checkCEFDIndicator) }
{
checkCEFDIndicator.FirstInstrument = firstInstrument; // This namespace holds all strategies and is required. Do not
firstInstrument = checkCEFDIndicator.FirstInstrument; change it.
checkCEFDIndicator.SecondInstrument = secondInstru- namespace NinjaTrader.Strategy
ment; {
secondInstrument = checkCEFDIndicator.SecondInstru- public partial class Strategy : StrategyBase
ment; {
/// <summary>
if (cacheCEFDIndicator != null) /// Closed-End-Fund Indicator
for (int idx = 0; idx < cacheCEFDIndicator.Length; /// </summary>
idx++) /// <returns></returns>
if (cacheCEFDIndicator[idx].FirstInstrument == [Gui.Design.WizardCondition("Indicator")]
firstInstrument && cacheCEFDIndicator[idx].SecondInstru- public Indicator.CEFDIndicator CEFDIndicator(string firstIn-
ment == secondInstrument && cacheCEFDIndicator[idx]. strument, string secondInstrument)
EqualsInput(input)) {
return cacheCEFDIndicator[idx]; return _indicator.CEFDIndicator(Input, firstInstrument,
secondInstrument);
CEFDIndicator indicator = new CEFDIndicator(); }
indicator.BarsRequired = BarsRequired;
indicator.CalculateOnBarClose = CalculateOnBarClose; /// <summary>
#if NT7 /// Closed-End-Fund Indicator
indicator.ForceMaximumBarsLookBack256 = Force- /// </summary>
MaximumBarsLookBack256; /// <returns></returns>
indicator.MaximumBarsLookBack = Maximum- public Indicator.CEFDIndicator CEFDIndicator(Data.IData-
BarsLookBack; Series input, string firstInstrument, string secondInstrument)
#endif {
indicator.Input = input; if (InInitialize && input == null)
indicator.FirstInstrument = firstInstrument; throw new ArgumentException("You only can access an
indicator.SecondInstrument = secondInstrument; indicator with the default input/bar series from within the 'Initial-
Indicators.Add(indicator); ize()' method");
indicator.SetUp();
return _indicator.CEFDIndicator(input, firstInstrument,
CEFDIndicator[] tmp = new CEFDIndicator[cacheCEFDI secondInstrument);
ndicator == null ? 1 : cacheCEFDIndicator.Length + 1]; }
if (cacheCEFDIndicator != null) }
cacheCEFDIndicator.CopyTo(tmp, 0); }
tmp[tmp.Length - 1] = indicator; #endregion
cacheCEFDIndicator = tmp;
return indicator; —Philipe Saroyan
}

26 • Bonus Issue 2018 • Technical Analysis of Stocks & Commodities

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 INTERVIEW

In With The Old

Get The Gann Skinny

From Hima Reddy
Trader, educator, author, and mentor Hima Reddy, CMT, was introduced to
trading by her late father and has continued on that path since the day she
laid eyes on her first price chart. She applies Gann’s price and time analysis
to the markets with a more modern approach. In her 2013 book The Trading
Methodologies Of W.D. Gann: A Guide To Building Your Technical Analysis
Toolbox, Reddy shares some of the Gann analysis tools she uses. She has been
an active member of the CMT Association (formerly known as the Market
Technicians Association) for over 15 years and is the CMT Content Director
for the Wiley publishing company.
Stocks & Commodities Editor Jayanthi Gopalakrishnan spoke with Hima
Reddy on January 18, 2018 about her trading journey and what attracted her
to Gann analysis.

Tell us about how you what I needed to do to learn that. Well,

got interested in the he wanted me to finish high school,
markets? go to college, and get a degree. Even
I was 16 years old and though he could teach me, he still
needed help with chemistry homework. wanted me to get a college degree. He
So I asked my dad to help me. He was a suggested I study finance and focus
doctor and still had his medical school on getting a finance education and
I’ve been using Gann’s
textbooks on his shelf and knew what he would continue to teach me about techniques for 16 years
was in them. When I initially went to the markets on the side. So I had a now and they’ve not
ask for homework help, he was on his clear path. I thought it was fascinating changed. His techniques
computer at the time. This was in the and wanted to learn more. I suppose
mid-1990s, and he was looking at this I’ve never really stopped wanting to
still work the way he
strange chart. While he was helping learn more. described them back then.
me with my homework, I asked him
what that was. He told me it was a stock Interesting. And why from math and
chart. I asked him what that meant and probability to Gann? me on. He gave me one particular book
he said it’s for plotting the price of a My dad probably used the terms “math of Gann’s: How To Make Profits Trading
particular company’s stock. He said he and probability” because he didn’t want In Commodities. He said, “I want you
used the charts to trade stocks, to buy to overwhelm me with the fancy terms, to read this book and I will get you set
low and sell high and make money. My but I followed his instructions. I went up with software and all that too. But
curiosity led to asking more questions to college, studied finance at Indiana the elements of trading and the rules
such as, “But you’re just staring at the University, which had a solid under- described in this book, even though they
screen. You don’t have a newspaper and graduate business program at the time. were written in the early 1900s, still
you don’t have a TV station on.” He But I didn’t see any price chart analysis apply today.” So that’s where the Gann
said, “I’m using math and probability while I studied there. That didn’t surprise influence came from.
to make money in the stock market.” my dad. So after I graduated, he and I
Those are the words he used. He didn’t came to a deal. He said, “Look, I’ll let And which markets is Gann analysis
specifically say “technical analysis” or you move back home without a job if you suited well for?
any complicated terms. allow me to teach you and you follow my Gann, given that he lived in the pre-
To me, that sounded awesome because education on investing and trading.” And computer age, trading from the 1920s to
I love math. I asked my dad if there are he started me with Gann. the 1940s, stocks were what most of his
people who do this for a living and he I didn’t know who Gann was from the public-facing work explored, as well as
said there were. I told him that was what outside world. I learned Gann’s methods commodities. So stocks and commodity
I wanted to do. And I wanted to know because that’s the path my dad started futures, you could say. But even though
28 • Bonus Issue 2018 • Technical Analysis of Stocks & Commodities
that was the focus of his work, his con- Come visit one of the most popular trading
cepts can be applied to any market and chat rooms for Breakout Trading.
I’ve used them for forex analysis, which
is something I had to do in my first
research job. I’ve used them for bond
market analysis, everything from yields
to futures to spreads and all variations.
Breakout Trading Bull Flags
Any active, liquid, moving market can
benefit from applying Gann analysis.
Momentum Stocks Pivot Points
Very briefly, what does Gann analysis
involve?
William Delbert Gann is the person
who presented this type of analysis. Swing Trading Key Reversals
Gann’s main focus was in narrowing
down not only where there was price sup-
port and resistance, but figuring out when
any particular market was primed for a Home of Dan Zanger, world record holder for
turn or a reversal in price trend or for an
acceleration of the price trend. His claim parlaying $10,775 into $18 million in 18 months!
to fame is in being so specific using a vast
wealth of knowledge in calling market Home of The Zanger reporT.
tops and bottoms, to the cent or tick at
times, and calling them for particular
dates and even times of day.
The meeting of price and time and us-
ing that for forecasting was Gann’s major
strength and his underlying premise. But project key price and time points into the analysis concurrently since the age of
he also had many trading signals and future. So yes, a little bit of looking at 22, it’s natural for me to take the best of
rules around trading that he used once the nuances of a particular market, but both and combine them. And that makes
the forecast came to fruition. How you the forecasting power of Gann analysis my analysis and therefore my trading
actually trade it is the other side of it. is amplified when you use the square of and market calls even more precise and
That’s as simply as I can put it. nine calculator. accurate. The advantage of using more
than one type of technical analysis in my
That is simple but isn’t it difficult to In addition to using Gann analysis approach is that I can take the best of
figure out a top and bottom when there and charts, you use a few other multiple angles and refine the analysis to
are so many of them within a larger indicators. You use chart patterns, something more usable and specific.
move? How do you determine these support & resistance levels, RSI.
tops and bottoms? What’re the advantages of using these You use something called RSI Power
The Gann approach has two sides. One additional indicators together with Zones. Could you tell us what the zones
is to study the history of a particular secu- Gann analysis? are and how you use them?
rity you’re studying because he believed Education is my greatest asset and I The inspiration for the RSI Power
that each type of market, each stock has got that from my father in the form of a Zones came from my CMT studies. I
its own rhythm, you could say. But on self-made graduate school in technical learned about the original RSI from those
top of that, Gann is also well known for analysis when none existed. So I ended textbooks. Most traders know that it’s
using the square of nine. But he didn’t up being on a dual-track system of sorts a 14-day timespan with 70 as an over-
invent it. For the square of nine, you in my education because he taught me all bought threshold and 30 as oversold.
literally draw the number one, you go up the Gann stuff. My end goal was to be an But what I learned in my CMT studies
and draw a two, and as you circle your analyst on Wall Street. For that I had to was that there were a group of technicians
way around clockwise, you end up with get the CMT [Chartered Market Techni- who, at the same time the RSI came out
squares, like a tic-tac-toe board. cian] designation. Of course, the CMT in the late 1970s, studied the RSI even
And if you expand out from there, and has its own educational requirements, more closely. They looked beyond the 30
then you relate those numbers to past key which are more focused on modern-day and 70 areas, and divided the entire zero-
price highs and lows or past key dates technical analysis. to-100 range into different ranges based
for the price highs and lows, that’s where Since I’ve been learning both Gann’s on certain price behaviors depending on
you start to uncover relationships that can approach and traditional technical whether it was a bull or bear market. That
Bonus Issue 2018 • Technical Analysis of Stocks & Commodities • 29
 daily, and then the 60-minute. I apply Gann to the markets. That was in
And from the 60-minute chart, 2012. They wanted to learn what I had
Analysis is a mastery of I will narrow it down depend- learned. One of my passions, which is
observation. But trading is ing on the type of security. now my business, is to provide research
a mastery of self. For my specialty, which is the and I do that every day for the equity
equity index futures, after the index futures. I also provide research on
60-minute chart, I like to look other popularly followed markets like
at a three-minute chart for trad- the FAANG stocks, gold, oil, etc, on a
analysis was never on the front lines like ing purposes. special report basis.
the traditional approach to the RSI was. There are two sides to any trader’s I also provide educational workshops
I only found out about these ranges in a life—short-term, which is daytrading, and ebooks that now take all of the
few specific textbooks. and longer-term, which is swing trading. knowledge that I’ve been cultivating and
The most useful thing I learned in the It’s up to each trader to decide whether using for over 16 years and puts it in a
CMT program was these ranges. I took they want to engage in both sides. For framework so that others can learn from
that knowledge and graphically recreated swing trading, stocks are where my focus me. That usually involves on-demand
them in a way that made it easy for me to is, but for daytrading, it’s the emini S&P video tutorials, a live bonus webinar
read my charts. I use a football analogy 500 and emini Nasdaq that I engage in to review examples, and such. I would
when I teach it, which is why I refer to most. like to continue providing research and
them as zones (as in end zones). workshops that take these complex or
Basically, you’re using the RSI from And how do you manage risk? seemingly distant topics that are out there
zero to 100 and dividing it up. If you The main thing I do differently than and make them more relatable, such as
limit yourself to 30 and 70 for oversold most when it comes to risk management using the game of football as an analogy,
and overbought levels, you most likely is I’m adamant that people let the market so that people can learn them and apply
will only be able to use the RSI when take them out of the trade. I teach people them to their trading with more ease.
there’s sideways price action. You may how to figure out where the market will
not be able to capitalize on most of the go by using price targets. In other words, How much one-on-one teaching do
market turns or even make trend trades I always use protective stop orders and you do?
off the RSI. With the RSI Power Zones I’m always trailing or moving those stop Those who take on a bigger com-
approach, identifying the levels is just orders in the direction of the trade if it’s mitment with my service, like annual
one element. profiting. memberships, can get one-on-one men-
I have come up with signals within the And when that protective stop order toring. And for those who subscribe to
RSI Power Zones that can be used to catch hits, that will be evidence that the trend my research or purchase certain types of
market turns and trade them. I’ve also is turning around. Early on, I got burned educational products from me, we have
come up with signals to use momentum many times trying to pick that top or a group conference call every month
indicators to trade with the trend. That’s bottom just to give my ego satisfaction, where I show them my latest market
more of a novelty. Most people don’t think even though the market wasn’t finished analysis, I answer their questions, and
of momentum indicators to help them with its current directional move yet. So we go through their tickers. There’s a
trade with the trend. Most traders think I started using Gann’s trade management lot of back-and-forth interaction in those
of using momentum indicators only to rules, which are spread among all of his types of sessions.
catch the high or low of a move. writings but are definitely focused on in
his commodities book. They overlap in Gann goes as far back as the 1920s but
When you look at charts, do you look part with traditional technical analysis his techniques can still be applied in
at various timeframes? And if so, what and trade management, but some are a today’s market. Do you apply them just
timeframes do you look at? little different. The main thing is to use as he did or do you modify them?
Like most technicians, I use multi- protective stop orders all the time and I don’t modify them because human
timeframe analysis. But if somebody to let the stop be your exit. nature has not modified itself since the
throws a symbol at me and asks for 1920s! And one of the earliest things
my analysis, whether it’s a market I Earlier you said you teach people. my late father taught me is that all the
know or a new market, I will look to What type of education do you provide markets are a reflection of human nature
the monthly chart first, if I can. If it’s a to traders? in the form of supply and demand. So
stock that only recently started trading After many years on and off Wall until human nature changes, we’re good.
publicly, and therefore monthly price Street, where I was working as an analyst, All the analysis and approaches we use
chart doesn’t give me much, then I’ll I didn’t have the opportunity to educate. will stand in today’s markets. I have
look at the weekly. But I always start But when my book was published, it put modernized some of what he does. I don’t
with the biggest timeframe to see the me in front of people and that’s when they
most history. Then I narrow down to the started approaching me and asking how Continued on page 42
30 • Bonus Issue 2018 • Technical Analysis of Stocks & Commodities
Closed-end fund (CEF)—In this type of fund, 0.618, 1.0 and 1.618. engineer al-Khwarizmi, whose name was
a fixed number of shares are issued during Fibonacci sequence—The sequence of latinized as Algoritmi. The system later
an initial public offering (IPO) that are numbers (0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, spread to medieval Europe.
not redeemable from the fund. Shares in 89, 144, 233...) discovered by the Italian Kondratieff, Nikolai—Developer of a wave
the fund are then bought and sold in the mathematician Leonardo de Pisa in the theory. The Kondratieff wave (K-wave)
market. Since they are exchange-traded, 13th century and the mathematical basis is a 54-year rhythm of wholesale prices,
the price of CEFs will be different from of the Elliott wave theory, where the first politics, and culture.
their NAV. two terms of the sequence are zero and Laffer curve—Named for supply-side
Elliott wave theory—A pattern-recognition 1, and each successive number in the economist Arthur Laffer, a theoretical
technique published by Ralph Nelson sequence is the sum of the previous two relationship between rates of taxation
Elliott in 1939, which holds that the stock numbers. Technically, it is a sequence and and the resulting levels of government
market follows a rhythm or pattern of not a series. Prices sometimes tend to find revenue, represented by a curve. Under
five waves up and three waves down to support or resistance at points indicated the assumption that revenue is a continu-
form a complete cycle of eight waves. by this series. ous function of the rate of taxation, the
The three waves down are referred to Gann’s square of 9—A trading tool that maximum illustrated by the Laffer curve
as a “correction” of the preceding five relates numbers, such as a stock price, is due to Rolle’s theorem, from calculus.
waves up. Fibonacci ratios are applied to degrees on a circle. A hypothetical Laffer curve for any given
to the price spans and price targets may Gann theory—Various analytical techniques economy can only be estimated and such
be projected. based on price, time, and pattern to project estimates are controversial.
Euro—European unit of currency, of the changes in the direction of the markets, Pip (price interest point)—The smallest price
European Union. developed by W.D. Gann. increment of change in a currency. The
Fibonacci ratio—The ratio between any Hindu-Arabic numeral system—The familiar value of a pip is based on the type of ac-
two successive numbers in the Fibonacci set of 10 symbols (1, 2, 3, 4, 5, 6, 7, 8, 9, count and the exchange rate of the cross
sequence, known as phi (f). The ratio of 0) that make up our positional decimal currency. Often referred to as “ticks” or
any number to the next higher number numeral system, which is most common “points” in the futures markets, pips are
is approximately 0.618 (known as the system for the symbolic representation of used to measure gain/loss. The last digit
golden mean or golden ratio), and to the numbers in the world. It was an ancient after the decimal point of the exchange
lower number approximately 1.618 (the Indian numeral system (dating to the 6th rate is a pip: for example, in EUR/USD, a
inverse of the golden mean), after the or 7th century) that was reintroduced move from 0.9015 to 0.9016 is one pip.
first four numbers of the series. The three with Hindu numerals by the medieval-
important ratios the series provides are era Middle Eastern mathematician and

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may not have been aware of that could make a by Vitali Apirine
difference to your backtesting results. The biggest challenge for any trader is iden-
Are you knowledgeable about technical
tifying turning points in price movements. You indicators, charting, trading systems, and
The V-Trade, Part 2 never know if you’ll end up getting whipsawed money management? Or do you have a solid
by Sylvain Vervoort out of a trade. We’ll explain one way to avoid background with intraday trading, trading
In the second part of this series, which focuses those whipsaws. psychology, options and cycles? If so, we’d
on technical analysis, the author will explain like to hear from you!
the techniques he applies to make manual
Volatility: What’s The Best Measure? To write for any of our publications or
and automatic buy and sell decisions, or a by Mike B. Siroky
combination of both. obtain more information, please click on
The most commonly used volatility estimate Contact Us at www.Traders.com.
is the standard deviation of returns, but
An Interview with Gareth Burgess newer measures may offer some significant
by Jayanthi Gopalakrishnan advantages. So, what is volatility and how is it
We speak with the author of Trading And best measured?

…Coming soon!

Bonus Issue 2018 • Technical Analysis of Stocks & Commodities • 31

 2018 Readers’ Choice Awards
Readers’ Choice Index
Real-time/delayed data 32

We
End-of-day data 32
are pleased to present Products are categorized by their pri- Stock brokerages 33
the Technical Analysis of mary purpose. Just because a service or Futures brokerages 33
Stocks & Commodities product is not listed does not necessarily
magazine 2018 Readers’ Choice Awards mean that the product does not have fea- Forex brokerages 33
(RCA). Each year, we put before our tures germane to the category. In addition, Institutional trading platforms 34
readers a ballot of products and services some categories are divided by cost so Professional trading platforms 34
related to technical analysis and trading. that the comparisons can be made on a Online analytical platforms 35
The following pages present the products more level playing field.
and services you and your peers chose The winners in the Readers’ Choice Standalone analytical software, $1,000+ 35
this year as your favorites. Awards are almost always the dominant Standalone analytical software, $500–$1,000 35
The Readers’ Choice Awards begins players in their niche, and rightfully so. Standalone analytical software, $500 and less 36
each year with a list of products gathered You may have special needs for your Software plug-ins 36
by the editors of Stocks & Commodi- trading, however, so you should keep in
ties, with space for write-in votes (given mind those products that are not the big A.I. software (expert, neural) 36
that our list doesn’t claim to be complete). names in the category of your interest Portfolio management software 37
Then, to find out what our readers find to before you make your final decision. Options analysis software 37
be the most useful for their trading, we ask The RCA is designed to be an aid for Futures trading systems 37
them to choose their favorite products or you when you are deciding on which
Options trading systems 37
the ones they find most useful from vari- of the numerous products and services
ous categories by going to our website, currently available to use for your trad- Stock trading systems 38
Traders.com, and filling out the survey ing and investing. With that in mind, we Trading centers / schools / training 38
there. After that, we compile the results, think you’ll find the Readers’ Choice a Technical analysis websites 38
just in time for the Bonus Issue you hold terrific guide to products and services
Favorite S&C article 39
in your hands. that you’ll be interested in.

CATEGORY AWARD PRODUCT COMPANY WEBSITE

Real-Time / Delayed Data Winner TradeStation TradeStation www.TradeStation.com

(Continuous Feed)
First Runner-Up TC2000 Worden Brothers, Inc. www.TC2000.com

eSignal, an Interactive
Finalist eSignal www.esignal.com
Data company
This category included data
services that provide a con- Bloomberg Professional
tinuous stream of information, Semi-Finalist Bloomberg www.bloomberg.com
Service
whether the transmission is
instantaneous or delayed for Semi-Finalist MetaStock XENITH MetaStock www.metastock.com
15 to 30 minutes.

Honorable Mention Kinetick NinjaTrader Group, LLC www.ninjatrader.com

End-of-Day Data Winner TC2000 Worden Brothers, Inc. www.TC2000.com

(Download On Demand)
eSignal, an Interactive
First Runner-Up eSignal www.esignal.com
® Data company

32 • Bonus Issue 2018 • Technical Analysis of Stocks & Commodities

 2018 Readers’ Choice Awards

CATEGORY AWARD PRODUCT COMPANY WEBSITE

In this category, we included
data services for which the user Finalist DataLink MetaStock www.metastock.com
initiates the download of data to
the user’s computer, even if the Semi-Finalist My Barchart Barchart www.barchart.com
data is 15–30 minutes old.

Honorable Mention EODData EODData www.eoddata.com

Winner Interactive Brokers Interactive Brokers www.interactivebrokers.com

Stock Brokerages
First Runner-Up thinkorswim thinkorswim, Inc. www.thinkorswim.com

Finalist TradeStation TradeStation www.TradeStation.com

Some stock brokerages have
been around since the turn
of the last century and have
Semi-Finalist TD AMERITRADE TD AMERITRADE, Inc. www.tdameritrade.com
names entrenched in Wall
Street; others are products Honorable Mention Charles Schwab Charles Schwab www.schwab.com
of the modern era or even of
various mergers that have
taken place over the years.
Honorable Mention Fidelity Brokerage Fidelity Investments www.fidelity.com
This category includes both
full-service and discount stock Honorable Mention E*Trade E*TRADE Group, Inc. www.etrade.com
brokerages.
Scottrade Financial
Honorable Mention Scottrade www.scottrade.com
Services, Inc.

Honorable Mention TC2000 Brokerage TC2000 Brokerage, Inc. TC2000Brokerage.com

Winner Interactive Brokers Interactive Brokers www.interactivebrokers.com

Futures Brokerages
First Runner-Up TradeStation TradeStation www.TradeStation.com

Finalist TD AMERITRADE TD AMERITRADE, Inc. www.tdameritrade.com

The choice of futures broker
can sometimes make the dif-
Semi-Finalist NinjaTrader Brokerage NinjaTrader Group, LLC www.ninjatrader.com
ference between a good and
bad fill. Here are some of the
futures brokerages you told us Honorable Mention optionsXpress optionsXpress www.optionsxpress.com
you are using and like.
Honorable Mention RJO Futures RJO Futures rjofutures.rjobrien.com

Honorable Mention AMP Global Clearing AMP Global Clearing LLC www.ampclearing.com

Honorable Mention Dorman Trading Dorman Trading www.dormantrading.com

Winner Interactive Brokers Interactive Brokers www.interactivebrokers.com

FOREX Brokerages
First Runner-Up TD AMERITRADE TD AMERITRADE, Inc. www.tdameritrade.com

Finalist TradeStation TradeStation www.TradeStation.com

Bonus Issue 2018 • Technical Analysis of Stocks & Commodities • 33

 2018 Readers’ Choice Awards

CATEGORY AWARD PRODUCT COMPANY WEBSITE

When selecting a forex broker-
age, it is important to know Finalist OANDA OANDA www.oanda.com
what their spreads are, the
research tools they offer, the Forex Capital Markets
Finalist FXCM www.fxcm.com
types of accounts available, LLC
leverage options, and that
they are backed by a reliable Semi-Finalist FOREX.com FOREX.com www.FOREX.com
institution.

Honorable Mention NinjaTrader Brokerage NinjaTrader Group, LLC www.ninjatrader.com

Institutional Winner Interactive Brokers Interactive Brokers www.interactivebrokers.com

Platforms
First Runner-Up TradeStation TradeStation www.TradeStation.com

Bloomberg Professional
Finalist Bloomberg www.bloomberg.com
Institutional money managers
Service
require the best that current
technology has to offer. The Semi-Finalist NinjaTrader NinjaTrader Group, LLC www.ninjatrader.com
trading platform offers real-
time access to domestic and Honorable Mention MetaStock Pro MetaStock www.metastock.com
foreign markets, multiple news
sources, and fundamental financial.thomsonreuters.
data resources. Sophisticated Honorable Mention Thomson Reuters Eikon Thomson Reuters
analytics are often available for
com
more esoteric instruments. eSignal, an Interactive
Honorable Mention eSignal www.esignal.com
Data company
VectorVest 7 RealTime/
Honorable Mention VectorVest, Inc. www.vectorvest.com
IntraDay

Professional Winner thinkorswim thinkorswim, Inc. www.thinkorswim.com

Platforms
First Runner-Up TradeStation TradeStation www.TradeStation.com

First Runner-Up Interactive Brokers Interactive Brokers www.interactivebrokers.com

Finalist NinjaTrader NinjaTrader Group, LLC www.ninjatrader.com

Not as all-encompassing as
the institutional platform but
Semi-Finalist TC2000 Worden Brothers, Inc. www.TC2000.com
still top level for the professional
trader, these may include many
of the same features: hardware, Honorable Mention AmiBroker Standard AmiBroker.com www.amibroker.com
software for charting and analy-
sis, and real-time data. News eSignal, an Interactive
access and options analysis Honorable Mention eSignal www.esignal.com
Data company
are often available.
MetaQuotes Software
Honorable Mention MetaTrader www.metaquotes.net
Corp.
financial.thomsonreuters.
Honorable Mention Thomson Reuters Eikon Thomson Reuters
com
VectorVest 7 RealTime/
Honorable Mention VectorVest, Inc. www.vectorvest.com
IntraDay

34 • Bonus Issue 2018 • Technical Analysis of Stocks & Commodities

 2018 Readers’ Choice Awards

CATEGORY AWARD PRODUCT COMPANY WEBSITE

Online Analytical Winner thinkorswim thinkorswim, Inc. www.thinkorswim.com

Platforms
First Runner-Up TradeStation TradeStation www.TradeStation.com

Finalist StockCharts.com StockCharts.com, Inc. www.stockcharts.com

Semi-Finalist Interactive Brokers Interactive Brokers www.interactivebrokers.com

This category includes prod-
ucts that retrieve and present
Semi-Finalist NinjaTrader NinjaTrader Group, LLC www.ninjatrader.com
data from remote servers (as
well as the Internet) and offer
many of the analytical tools Honorable Mention AmiBroker Standard AmiBroker.com www.amibroker.com
found in standalone software.
Data is supplied as part of the
Honorable Mention FreeStockCharts.com Worden Brothers, Inc. www.TC2000.com
service.
eSignal, an Interactive
Honorable Mention eSignal.com www.esignal.com
Data company

Standalone Winner NinjaTrader NinjaTrader Group, LLC www.ninjatrader.com

Analytical Software,
$1000 and more First Runner-Up MetaStock Pro MetaStock www.metastock.com

eSignal, Advanced GET eSignal, an Interactive

Finalist www.esignal.com
These packages provide the Edition Data company
tools for charting markets
and indicators, performing Semi-Finalist MultiCharts MultiCharts, LLC www.multicharts.com
technical and sometimes fun-
damental analysis, and some VectorVest 7 RealTime/
include advanced system Semi-Finalist VectorVest, Inc. www.vectorvest.com
IntraDay
development capabilities.
Some packages may focus on NeuroShell Trader
a particular area of technical Semi-Finalist Ward Systems Group, Inc. www.neuroshell.com
Professional
analysis, such as cycles.
Honorable Mention VisualTrader Nirvana Systems, Inc. omnitrader.com

TradeNavigator Genesis Financial

Honorable Mention www.GenesisFT.com
Platinum Technologies

Honorable Mention AbleTrend AbleSys Corporation www.ablesys.com

Fibonacci Trader 4 Fibonacci Trader

Honorable Mention www.fibonaccitrader.com
Real Time Corporation

Standalone Winner MetaStock MetaStock www.metastock.com

Analytical Software,
$500–$1000 First Runner-Up NinjaTrader NinjaTrader Group, LLC www.ninjatrader.com

Finalist VectorVest 7 EOD VectorVest, Inc. www.vectorvest.com

These products will provide
charting and technical analy- Semi-Finalist OmniTrader Nirvana Systems, Inc. omnitrader.com
sis. Some will include system
development, ready-to-go
trading systems, or may focus
Honorable Mention Wealth-Lab Wealth Lab www.wealth-lab.com

Bonus Issue 2018 • Technical Analysis of Stocks & Commodities • 35

 2018 Readers’ Choice Awards

CATEGORY AWARD PRODUCT COMPANY WEBSITE

on a particular style of technical Genesis Financial
analysis. Honorable Mention TradeNavigator Gold www.GenesisFT.com
Technologies

Standalone Winner TC2000 Worden Brothers, Inc. www.TC2000.com

Analytical Software,
$500 and less First Runner-Up NinjaTrader NinjaTrader Group, LLC www.ninjatrader.com
®

Finalist AmiBroker Standard AmiBroker.com www.amibroker.com

Here, technically based soft-
ware may be part of a data
subscription service aimed at
eSignal, an Interactive
Semi-Finalist eSignal www.esignal.com
the introductory level partici- Data company
pant, or offer a special product
at a good price. Some of these Honorable Mention OmniTrader Nirvana Systems, Inc. omnitrader.com
products have rich feature
sets that technical analysts
can utilize.

Winner VectorVest ProTrader 7 VectorVest, Inc. www.vectorvest.com

Software Plug-Ins
Dr. Elder Trading Room
First Runner-Up MetaStock www.metastock.com
for MetaStock
Bollinger Band System
Finalist MetaStock www.metastock.com
If you need a specific function for MetaStock
that your technical analysis John Murphy’s Chart
software doesn’t already in- Finalist MetaStock www.metastock.com
Pattern Recognition
clude, a third-party software
developer may fit the bill with Jurik Research
Semi-Finalist Jurik Research Software www.jurikres.com
a software plug-in. Listed here Software
is just a sampling of third-party
software that complements
MESA for NeuroShell
Semi-Finalist MESA Software www.mesasoftware.com
some of the major technical Trader
analysis packages.
Semi-Finalist MESA for TradeStation MESA Software www.mesasoftware.com

Honorable Mention VectorVest AutoTester VectorVest, Inc. www.vectorvest.com

Artificial Intelligence NeuroShell Trader Ward Systems Group,

Winner www.neuroshell.com
Software Professional Inc.
(Expert, Neural)
First Runner-Up OmniTrader Nirvana Systems, Inc. omnitrader.com
NeuroShell Trader
®

AIQ TradingExpert Pro www.aiqsystems.com

®
Trading Software for Stocks, Finalist AIQ Systems
Commodities, Futures and Forex!

Artificial intelligence is a sys- VantagePoint Trading www.vantagepointsoftware.

tematic approach to trading.
Finalist Market Technologies, LLC
Software com
An expert system is generally
designed by the vendor and Semi-Finalist NeuralWorks Predict NeuralWare www.neuralware.com
provides the trader with sig-
nals. A neural network trains TradingSolutions End
itself on the data and creates Honorable Mention NeuroDimension, Inc. www.tradingsolutions.com
its own rules. These packages of Day
are best suited for traders with
an analytical bent.

36 • Bonus Issue 2018 • Technical Analysis of Stocks & Commodities

 2018 Readers’ Choice Awards

CATEGORY AWARD PRODUCT COMPANY WEBSITE

VectorVest 7 RealTime/
Portfolio Winner VectorVest, Inc. www.vectorvest.com
IntraDay
Management
Wolters Kluwer Financial
First Runner-Up GainsKeeper.com www.gainskeeper.com
Services

Portfolio management soft- Finalist TradeLog TradeLog Software www.tradelogsoftware.com

ware is available that auto-
mates the analysis of returns, Semi-Finalist Market System Analyzer Adaptrade Software www.Adaptrade.com
cash flow, tax impacts, and
profit & loss. THE TRADER’S
Semi-Finalist TradersCoach.com www.TradersCoach.com
ASSISTANT

Honorable Mention JBL Risk Manager Park Avenue Consulting www.jblriskmanager.com

Options Analysis Winner thinkorswim thinkorswim, Inc. www.thinkorswim.com

Software
First Runner-Up Interactive Brokers Interactive Brokers www.interactivebrokers.com

Finalist OptionStation TradeStation www.TradeStation.com

Semi-Finalist TC2000 Worden Brothers, Inc. www.TC2000.com

Software packages have been
developed to handle option OptionVue Systems
analysis. Many packages offer Honorable Mention OptionVue 7 www.optionvue.com
both analytics as well as an
International Inc.
education in option trading.

Futures Trading Winner TradeStation TradeStation www.TradeStation.com

Systems
eSignal, Advanced GET eSignal, an Interactive
First Runner-Up www.esignal.com
Edition Data company

Finalist OmniTrader Nirvana Systems, Inc. omnitrader.com

Software in this category is
aimed at providing you with
a more systematic approach Semi-Finalist AbleTrend AbleSys Corporation www.ablesys.com
to the futures markets. Some
packages are a trading system, Honorable Mention MESA9 MESA Software www.mesasoftware.com
while others include analytical
capabilities.

Options Trading Winner thinkorswim thinkorswim, Inc. www.thinkorswim.com

Systems
First Runner-Up TradeStation TradeStation www.TradeStation.com

eSignal, Advanced GET eSignal, an Interactive

Finalist www.esignal.com
Edition Data company

Semi-Finalist OPTIONETICS OPTIONETICS, Inc. www.optionetics.com

While many traders may track
the underlying security to
generate signals for the op- Semi-Finalist OptionsPro VectorVest, Inc. www.vectorvest.com
tions, there are packages that
generate signals based on the Honorable Mention AbleTrend AbleSys Corporation www.ablesys.com
options activity itself.

Bonus Issue 2018 • Technical Analysis of Stocks & Commodities • 37

 2018 Readers’ Choice Awards

CATEGORY AWARD PRODUCT COMPANY WEBSITE

Stock Trading Winner TradeStation TradeStation www.TradeStation.com

Systems
VectorVest 7 RealTime/
First Runner-Up VectorVest, Inc. www.vectorvest.com
IntraDay
eSignal, Advanced GET eSignal, an Interactive
Finalist www.esignal.com
A disciplined technical ap- Edition Data company
proach is also applicable to
your stock portfolio. Make Finalist OmniTrader Nirvana Systems, Inc. omnitrader.com
sure the package employs a
method that you are comfort- Chaikin Stock Research, www.chaikinpowertools.
able with. In addition, check Finalist Chaikin Power Tools
LLC com
the data format requirements to
ensure that your own database
Semi-Finalist AbleTrend AbleSys Corporation www.ablesys.com
is compatible.

Honorable Mention GorillaTrades GorillaTrades, Inc. www.GorillaTrades.com

Trading Centers, Winner TradeStation Training TradeStation www.TradeStation.com

Schools, Training
First Runner-Up FREE Worden Training Worden Brothers, Inc. www.TC2000.com

Finalist TopDogTrading.com Top Dog Trading www.topdogtrading.com

When you’re just starting out in
eSignal, an Interactive
trading or taking your trading Finalist eSignal Learning www.esignal.com
to the next level, some profes- Data company
sional training helps, whether
VectorVest Educational
it’s the support provided by a Semi-Finalist VectorVest, Inc. www.vectorvest.com
daytrading center, courses, Services
or tutoring. The Cboe
Semi-Finalist Cboe Exchange, Inc. www.cboe.com
Options Exchange

Honorable Mention INVESTools INVESTools, Inc. www.investools.com

CMT Association
Honorable Mention CMT Association https://cmtassociation.org
(formerly MTA.org)

Honorable Mention TradingAcademy.com Online Trading Academy www.tradingacademy.com

Honorable Mention OPTIONETICS OPTIONETICS, Inc. www.optionetics.com

Peak Performance
Honorable Mention Van Tharp Institute www.iitm.com
Trading Course

Honorable Mention Bright Trading Bright Trading, LLC www.stocktrading.com

Breakaway Training
Honorable Mention LearnMetastock.com www.learnmetastock.com
Solutions, Inc.

Technical Analysis Winner StockCharts.com StockCharts.com, Inc. www.stockcharts.com

Websites
First Runner-Up topdogtrading.com Top Dog Trading www.topdogtrading.com

First Runner-Up Tradingview.com TradingView www.tradingview.com

38 • Bonus Issue 2018 • Technical Analysis of Stocks & Commodities

 2018 Readers’ Choice Awards

CATEGORY AWARD PRODUCT COMPANY WEBSITE

Some websites provide a finviz
wealth of technical information, First Runner-Up Finviz.com www.finviz.com
indicators, charts, sentiment, financial visualizations
and opinion. Of those with a
technical focus, our readers First Runner-Up Barchart.com Barchart www.barchart.com
pick their favorites.
Finalist thinkorswim thinkorswim, Inc. www.thinkorswim.com

Semi-Finalist Traders.com Technical Analysis, Inc. www.Traders.com

Honorable Mention Investors.com Investor’s Business Daily www.investors.com

Honorable Mention MarketWatch.com MarketWatch, Inc. www.marketwatch.com

CATEGORY AWARD ARTIClE TITlE AUTHOR ISSUE

FAVORITE S&C ARTIClE Winner Ichimoku Charts Rudy Teseo January 2017
FROM 2017
CHARTING First Runner-Up Be Your Own Hedge Fund John F. Ehlers & Ric Way January 2017
One-stOp chart components of
g the various
Separatin of
to thwart the purpose
the ichi seems in Japanese, means
the ichimoku, which, indicator, we get
In one
“at a glance.” s,
buy/sell crossover
insight into trend,
e, stop-loss points,
support & resistanc of a stock under

Finalist Mean-Reversion Daytrading Ken Calhoun January 2017

and the future potential the five plots
studying
analysis. Still, e the part
emphasiz
individually will
analysis.
each plays in the these Japa-
Here’s a tip. Learning an
easy, so I assigned
nese terms is not the five
C, D, and E to
arbitrary A, B, of the cloud and
plots on a printout regard
rules without
then studied the
to the names.
the ichimoku cloud—a
Figure 1 shows the five
one gulp—with
lot to swallow in in a nutshell, are:
plots,
plots. The five

Semi-Finalist Finally! A Buy & Hold Sell Signal Thomas Bulkowski December 2017
on line: blue
Tenkan-sen (conversi
line)
(H + L)/2
=9
default period
: red line)
Kijun-sen (baseline
(H + L)/2
= 26
default period
span: dark
Chikou span (lagging

Volume-Weighted Moving Average

green line)
shifted back 26
The closing price
bars

Semi-Finalist Ken Calhoun February 2017

span A: green
Senkou A (leading
s line)

s
Above The Cloud Kijun-sen)/2

Ichimoku Chart
(Tenkan-sen +

ted than they really

to be more complica of them.
are. Here,
Senkou B (leading
(52-period H +

Note that leading

shifted forward
span B: red line)
52-period L)/2

spans A&B are

26 bars.
Breakouts
s may appear the mystery out
Some indicator charts and take (blue)
we dissect ichimoku the tenkan-sen
Figure 2 shows are
by Rudy Teseo (red). When these
and kijun-sen distrac-
word “cloud.” You in
have the surrounding

t
when you use the viewed without
old friend, the moving

VIX Or Historical Volatility? March 2017

server

Semi-Finalist Perry J. Kaufman

have to be careful referring to some tions, we see our
hese days, you whether you’re , reveal itself.
You
listener knows (technical analysts). took average crossover
to be sure your used by stock chartists I the blue and red
lines in
many traders,
the sky or an indicator it comes to the ichi. Like could analyze
other and also
in rela-
r when there are a lot simpler relation to each
I’m a latecome “No, not for me; Here’s where it
indicator and said, find it in Steve Achelis’ tion to the cloud
itself.
one look at the .” And when I couldn’t average crossover
s.
I still haven’t mastered was the death knell. is similar to moving is
indicator s that
which I download
ed. period line (blue)
From A To Z, that a free ichi ebook, When the shorter the
Technical Analysis an email offering differently about this indicator.
I then period plot (red),
But then I received above the longer
to think
I was starting and was hooked.
Within 15 minutes at TC2000.com
videos on the topic
watched a couple commoditieS
of StockS &
• Technical Analysis
20 • January 2017

Semi-Finalist The Reverse EMA Indicator John F. Ehlers September 2017

We asked readers to vote for
their favorite StockS & com-
moditieS article from the past Honorable Mention ETF Sector Investing Leslie N. Masonson January 2017
year. Find them all at our web-
site at www.Traders.com!

Subscribers can revisit past articles online in the archives at our website, www.traders.com. If you are not a subscriber,
you can purchase individual articles from the StockS & commoditieS online store at store.traders.com.

SUBSCRIPTION GIVEAWAY RECIPIENTS

Congratulations to the following 10 subscribers of
Technical Analysis of StockS & commoditieS magazine
who voted in this year’s Readers’ Choice Awards poll
and won our drawing for a complimentary subscription.
Thanks to everyone who took the time to vote!

1. Dimitrios Kontoulas 6. Raimo Leppanen

2. Dick Schouten 7. Holger Galuschke
3. Sudharshan Gomadam 8. Christopher Thomas
4. Jerry Pond 9. Richard Feit
5. David Wolfe 10. Ken Bivens

Bonus Issue 2018 • Technical Analysis of StockS & commoditieS • 39

 Projecting Reversal Levels

How Far Down Can It Go?

Not many people worry about how high a market can go. It most traders would probably not do anything except watch to
can go on indefinitely. And while technically, a market could see if it’s going to go down even further. But how would you
FIBONACCI ART: LEON ART/ARROWS: PHIPATBIG/SHUTTERSTOCK/

potentially fall to zero, the chance of that happening is slim. know if it’s going to go down further?
Fibonacci retracement levels are a handy reference guide to
have when you try to figure out how low a market could go. Fibonacci retracement levels
Find out here how to apply them. One of the easiest ways to come up with some figures is to
use the well-known Fibonacci retracemant ratios. Who was

T
by Rudy Teseo Fibonacci and what do his numbers mean for the financial
COLLAGE: CHRISTINE MORRISON

markets? Fibonacci (c. 1175 – c. 1250) was an Italian math-

he next market correction is coming. Are you ematician from the Republic of Pisa, and was considered to
ready for it? To answer that question, it might help be “the most talented Western mathematician of the Middle
to know how far down the market would or could Ages.” Fibonacci popularized the Hindu–Arabic numeral
go. If the market goes down one or two percent, system in the Western World and also introduced Europe to
40 • Bonus Issue 2018 • Technical Analysis of Stocks & Commodities
 INDICATORS

the sequence of Fibonacci numbers.

In the Fibonacci number sequence, each The Dow Jones Industrial Average
number is the sum of the previous two could retrace to any of its Fibonacci
numbers. Fibonacci began the sequence
not with 0, 1, 1, 2, as modern mathemati-
retracement levels. Only time will tell
cians do, but with 1, 1, 2, so the sequence which level the index will descend to.
becomes 1, 1, 2, 3, 5, 8, 13, 21, 34, etc.
A Fibonacci retracement is a term used
in technical analysis that refers to areas of
support (price stops going lower) or resis-
tance (price stops going higher). Fibonacci
retracement levels use horizontal lines to
indicate areas of support or resistance. The
Fibonacci retracement tool is useful for
estimating pullbacks with accuracy.
Fibonacci retracements are ratios used
to identify potential reversal levels. These
ratios are found in the Fibonacci sequence.

TC2000 (Worden Brothers, Inc)

The most popular Fibonacci retracements
are 61.8% and 38.2% levels. Note that
38.2% is often rounded to 38% and 61.8
is rounded to 62%.

Applying them FIGURE 1: FIBONACCI RETRACEMENTS FOR DJIA, ONE YEAR

Here’s how you use
them. Pull up a long-
term price chart and
identify two extreme
points, usually a major
peak or trough, and di-
vide the vertical distance by key Fibonacci
ratios of 23.6%, 38.2%, 50%, 61.8%, and
100%. While the calculations can be done
with a calculator, most charting programs
include Fibonacci retracements in their
toolbox. Thus, all you have to do is find those
extreme points and drag your cursor from
one to the other. The retracement levels
will automatically show up on the chart.
There’s no need to find a calculator. FIGURE 2: Fibonacci retracements for Djia, six months
There’s some subjectivity involved
when using retracements to forecast cor-
rections. Obviously, there are literally an
infinite number of models that can be set
up to derive pullback levels. I’ve selected
one-year (Figure 1), six-month (Figure 2),
and three-month (Figure 3) models for
the Dow Jones Industrial Average (DJIA).
The exact number you come up with for
the intersection of a Fib level and a stock
price will vary from user to user. I’ve put
my results in a table (Figure 4). As the DJIA
moves higher than the levels presented in
the table, these models become obsolete.
However, you can extend the Fib line and
continue to add new numbers. FIGURE 3: Fibonacci retracements for DJIA, three months

Bonus Issue 2018 • Technical Analysis of Stocks & Commodities • 41

 What do the numbers mean? Dow Retrace Grid
If I list all those levels where retracements intersect with prices 1 year 6 months 3 months
and sort them in descending order, I come up with 18 numbers 1/4/17–1/2/18 7/3/17–1/2/18 10/2/14–1/3/18
between a peak of 25045 and trough of 20400. Any of these PEAK 25045 25006 24926
could be the magic number where the DJIA corrects to. More 23.5 23713 24097 24327
important, are these numbers viable? Only time will tell. 38.2 22970 23594 24004
50.0 22470 23208 23747
Rudy Teseo is a private investor and options trader. He can 61.8 21890 22745 23462
be reached at rftess@optonline.net. LOW 20400 21450 22609
FIGURE 4: PEAKS, TROUGHS, AND EVERYTHING IN BETWEEN
Further reading
Hartle, Thom [1997]. “Using Fibonacci Ratios And Momen- ‡See Editorial Resource Index
tum,” Technical Analysis of Stocks & Commodities, †See Traders’ Glossary for definition
Volume 15: November.
‡TC2000 (Worden Brothers, Inc)

MUSTAPhA/STRONG BULLISh & BEARISh movements take. Strong and fast movements would be followed
CANDLES by sideways and slow movements, no matter how long the fast
Continued from page 14 movements take. When the markets are moving sideways and
slowly, trend-following strategies do not provide great results.
But scalpers and short-term traders thrive in such an environ-
the price is going north, institutional traders could be doing ment. When the markets are moving fast and directionally,
the same, resulting in price moving higher. This logic can be trend-following strategies produce great results.
reversed for a weak market. The strategy discussed here can be used to take advantage
Here are the details of the trade. of trend continuations, reversals, and breakouts. The key is to
take every signal faithfully and manage your risk as suggested
Instrument: GBPJPY Take profit: 195.35 in the strategy details. Traders, like entrepreneurs, take risks
Order: Buy Exit date: June 17, 2015 and thrive under pressure.
Entry date: June 15, 2015 Exit price: 195.35
Entry price: 192.35 Status: Closed Azeez Mustapha is an analyst at Instaforex Companies
Stop loss: 191.35 Profit/loss: 300 pips Group and a blogger at Advfn.com, and as well as a free-
Trailing stop: 193.85 lance author for trading magazines. He is a trading signals
provider at some websites. Other articles of his are available
revieW on websites including www.ituglobalforex.blogspot.com.
When the markets experience low volatility, markets will move He can be reached via email at azeez.mustapha@analytics.
sideways and slowly. But at some point this will be followed instaforex.com.
by strong and fast movements, no matter how long the slow

INTERVIEW/REDDY is a mastery of observation. But trading is Thank you for chatting, Hima.
Continued from page 30 a mastery of self. This means that study-
ing the markets and gaining knowledge of Further reading
plot charts on paper, for example. I’m methods and indicators should always be Gann, W.D. [1942]. How To Make Prof-
able to apply his work to graphs using a running in tandem with increasing your its In Commodities, Lambert-Gann
computer. But I still apply the basic rules knowledge and awareness of yourself— Publishing Co.
and tenets in the same way, because I’ve your mindset, your emotions, your goals, CMT (Chartered Market Technician)
been using them for 16 years now and and priorities. It’s when mastery of ob- program, CMT Association, http://
they’ve not changed. Gann’s techniques servation and mastery of self are both cmtassociation.org.
still work the way he described them catered to that you can finally get and Reddy, Hima [2013]. The Trading Meth-
back then. keep what you want from trading and odologies Of W.D. Gann, FT Press.
The biggest lesson I’ve learned that I’d investing—the financial freedom to live • www.himareddy.com/traders
like to share with traders is this: Analysis the life of your dreams.
42 • Bonus Issue 2018 • Technical Analysis of Stocks & Commodities
If you weren’t subscribing to Technical Analysis of Stocks BONUS ISSUE 2017
& Commodities, The Traders’ Magazine, throughout 2017, • Trading The Open
you missed out on a lot of information. Here is some of what • Harmony And PATH
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• An FX Strategy For Catching Falling Knives
JANUARY 2017 • interview : Mastering Chart Analysis With
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Strategies • 2017 Readers’ Choice Awards
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• Earnings—Will Performance ‘Trump’
Fundamentals?
• ETF Sector Investing
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• q & a : Futures For You • Discounting Sentiment In The Euro
• q & a : Explore Your Options • The Edge In Chart Patterns, Part 1
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FEBRUARY 2017 • Building Self-Confidence
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• tips Exponential Standard Deviation Bands MAY 2017
• Using Correlation To Trade The S&P 500
• Reflecting On Price Mirrors
• Seasonal Play In Crude Brings Cheer
• Moving Average Stochastic
• A Road Trip With Options Supertraders
• The Edge In Chart Patterns, Part 2
• Beyond The Hull With Leavitt Projections
• q & a : Explore Your Options
• interview : Ed Dobson On Transitioning To
• tips Detecting Swings
Independent Trader
• ETF Momentum Investing
• q & a : Futures For You
• The Alter Ego Of Swing Trading
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• q & a : Since You Asked
• q & a : Since You Asked
• traders’ resource : Online Trading Services
• interview : Deron Wagner and Rick Pedicelli
• Gold–Is it All Glitter?
On Swing Trading
Review • Consolidation Channel Breakouts
• NinjaTrader 8 (Part 1) • q & a : Futures For You
• traders’ resource : Advisory Services
MARCH 2017 • The Pernicious Effect Of The Loss Of Opportunity
• The Reality Of REITs quick-scan
• VIX Or Historical Volatility? • TC2000 Version 17
• S&P Fuel Gauge: An Introduction
• This Butterfly Wears Kevlar JUNE 2017
• The Grand Illusion
• tips Daytrading With Night Volume
• Buy & Sell Pressure And A Faster RSI
• Gain Probability Index
• q & a : Futures For You
• q & a : Futures For You
• About Those Binary Options
• That Dodd-Frank Act
• q & a : Since You Asked
• Be Aware Of Pin Risk
• interview : Gavin McMaster: Living Life As
• Friday Market Tamer
An Options Trader
• Daytrading Gaps & Cups
• q & a : Explore Your Options
• interview : Trade Like A Warrior With
• tips Golden Cross Breakouts
Ross Cameron
• traders’ resource : Exchanges
• q & a : Explore Your Options
• Successful Trader Must-Haves
• q & a : Since You Asked
Review • traders’ resource : Data Services
• NinjaTrader 8 (Part 2) • Gail Dudack: The Technicians’ Technician
QUICK-SCAN
tips This article is the basis for Traders’ Tips this month. • ETFScreen.com

Bonus Issue 2018 • Technical Analysis of Stocks & Commodities • 43

 JULY 2017 OCTOBER 2017
• tips Trading The Nikkei • Swing Trading Four-Day Breakouts
• q & a : Since You Asked • tips A Candlestick Strategy With Soldiers
• q & a : Explore Your Options And Crows
• Swing Trading Bull Flags & Pennants • q & a : Since You Asked
• Puppies Of The Dow • Googling Tomorrow’s Close
• The Return Of High Momentum • q & a : Futures For You
• q & a : Futures For You • Fear, Not Greed, Is Your Friend
• Trendline Algorithm • Wrapping Your Brain Around Weekly Options
• interview : Bart DiLiddo Of VectorVest • An Early Warning System (Part 3)
• Straddles In FX • interview : A Unique Perspective From
• Build Your Own Technical Rating Jonathan Rose Of ActiveDayTrader.com
• traders’ resource : Publications For Traders • Price Action Analysis Using Candlesticks
• Theme-Based Investing • q & a : Explore Your Options
• traders’ resource : Courses & Seminars
• Price Squares & Time-Price Charts
AUGUST 2017
• Avoiding False Breakouts: “No 9s”
• Volatility Oscillator NOVEMBER 2017
• tips System Development Using Artificial • Trading The Tech Emini With The Leavitt
Intelligence Convolution
• Seasonality Pivot Points • Estimating The Fractal Dimension Of
• q & a : Futures For You Stock Prices
• An Early Warning System (Part 1) • Life Cycle Model Of Crowd Behavior
• Riding The Waves With The Leavitt • q & a : Since You Asked
Convolution • Elliott Waves: How High Is High? (Part 1)
• interview : Risk Management With • q & a : Futures For You
David Stendahl • interview : All About Trading Commodities
• q & a : Since You Asked With Carley Garner
• q & a : Explore Your Options • Comparing ETF Sector Families
• All About The Float • q & a : Explore Your Options
• traders’ resource : Consultants For Traders • Swing Trading 100SMA Pivots
• Unrealistic Expectations • traders’ resource : Brokerages
• 10 Reasons Traders Lose And What To Do About It
SEPTEMBER 2017
• Daytrading Within Whole Numbers DECEMBER 2017
• tips The Reverse EMA Indicator • Finally! A Buy & Hold Sell Signal
• q & a : Futures For You • tips Weekly & Daily MACD
• Profiting From Monthly Trading Cycles • Supply & Demand Trading
• Optimization—Getting It Right • q & a : Futures For You
• An Early Warning System (Part 2) • Elliott Waves: How High Is High? (Part 2)
• Focal Points • Hanging Out With The Junkies
• Gann And Gann Analysis • interview : Jeremy du Plessis
• q & a : Explore Your Options • Price Projection Swing Trades
• interview : An Insight Into Cycles With • q & a : Explore Your Options
Ed Easterling • q & a : Since You Asked
• All-Inclusive ETF Websites • traders’ resource : Books For Traders
• q & a : Since You Asked • The Trading Resolution
• traders’ resource : Mutual Funds quick-scan
• Why Most Traders Fail (And Why You Won’t) • Ichimoku Master

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1. NinjaTrader NinjaTrader Group, LLC
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Bonus Issue 2018 • Technical Analysis of Stocks & Commodities • 45

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