Trader's Corner, Saturday, 04/01/2006
by OI Staff
HAVING TROUBLE PRINTING?
Option Investor subscribers understand the site's emphasis on
education. For many years, the "feed a man a fish" analogy was often quoted on
the site. Our pages are filled with helpful advice on trading techniques,
indicator usage, historical tendencies and the emotional aspect of trading, but
it's not always easy to locate that information. No central listing of the
Trader's Corners articles exists in the current format.
It's about time to go fishing
through my listing of Trader's Corner articles
produced for weekend editions of the newsletter. I thought I'd provide this
reference for those who might want to investigate some aspect of technical
trading and not know where to find the article. Unless otherwise indicated, I
(Linda Piazza) was the writer of each of these articles, but I've included
descriptions of articles written by other writers substituting for me on the
weekend Trader's Corners.
To access any of the
articles listed here, sign in on the website, click "Option
Investor Daily" on the left-hand sidebar, and then scroll back until you find
the date of the article. When you've clicked on that date, just click "Trader's
Corner," and you'll be taken right to the article you seek.
"What's Your Favorite Indicator": January 30, 2005
This article advises traders to vary the technical indicators according to
market conditions and gives tips on finding
the right indicator for those
"Free Website: What's to See at the CBOE": February 6, 2005
The CBOE website offers a wealth of educational material for the beginning
through advanced options trader. The article provides an overview of some useful
information to be found at the CBOE's site.
"Repairing Losing Positions": February 13, 2005
This article discusses the pros and cons of some tactics for repairing an
position gone bad, based on techniques found in Lawrence McMillan's
OPTIONS AS A STRATEGIC INVESTMENT.
"Technical Analysis Is for the Birds": February 20, 2005
Technical analysis doesn't always work as well as traders hope, but this article
suggests that even the technical analysis failures reveal much about market
"Waiting for the Retest": February 27, 2005
This article discusses a conservative technique for entering plays:
a retest of broken support or resistance.
"Got the Right Time?": March 6, 2005
Choosing the right time interval on your charts can help pinpoint successful
"Building Better Trendlines with Logs": March 13, 2005
Some successful traders prefer to view semi-log versus arithmetic charts to
study long-term movements. This article tackles that subject.
"Using Keltner Channels to Set Targets":
March 19, 2005
Nested Keltner channels assist traders in setting price targets. This article
shows examples and pinpoints possible settings to use for the channels.
"Maintaining Control": March 26, 2005
This article discussing controlling emotions and trades.
"Trust Yourself and Nobody Else": April 2, 2005
This article uses several examples to prove that traders should test formulas
and chart techniques before following another
trader's advice or assuming
information is correct.
"Turning the Abstract into the Concrete": April 9, 2005
As a continuation of the April 2 article, this one illustrates how traders might
perform a few formula calculations or delve beyond the odd names of candlestick
formations to better understand how they work and the reasoning behind them.
"Sweeping Up": April 16, 2005
Many traders are unaware of what happens to the excess cash
in their brokerage
accounts. How is it handled and why should it matter?
"PDQ (Pretty Darn Quick Customer Support)": April 23, 2005
Many brokers now employ instant messaging capabilities to provide quick support
for their customers. The article discusses how this capability is employed and
how it would not be used.
"If/Then Statements with Keltner Channels": April 30, 2005
Is a trade still viable? Nested Keltner Channels allow traders
to ask and answer
"if this happens, then this might be more likely" type of questions to determine
whether a trade is still viable and what target might be set.
"Keltner-Style Divergence": May 7, 2005
Bullish and bearish divergences can be discovered using nested Keltner channels,
and they're just as useful as other types of divergences. Through the use of
charts, this article shows several examples.
"Just for Newbies: What on
Earth Are We Talking About?": May 14, 2005
This article discusses many commonly used but perhaps confusing terms on the
"Going Keltnering": May 21, 2005
This article pulls together information from previous articles on nested Keltner
channels to show how they can be used to initiate and exit a specific trade.
"When It's Good to Feel Bad:" May 28, 2005
We often chastise ourselves when our trades go bad. Those negative
natural and perhaps, behavioral scientists believe, even serve a useful purpose.
This article discusses what they mean to traders.
"Range Bound or Trending?": June 4, 2005
This article discusses several ways in which a range bound or trending market
might be identified.
"Basics of Candlestick Charting, Part 1": June 11, 2005
This article provides an introduction to candlestick charting.
Gravestones and Shooting Stars: the Doji as a Reversal Signal in
Candlestick Charting": June 18, 2005
Through the use of multiple charts, this article introduces the doji, a
specialized single candlestick, and shows its importance in potential reversals.
"Other Candlestick Reversal Signals": June 25, 2005
Following the previous two articles on candlesticks, this one introduces
potential reversal signals produced by two-candlestick formations.
Reversal Signals: Multiple Candlestick Formations: July 2, 2005
In a continuation of previous articles, this week's installment discusses
potential reversal signals created by multiple-candlestick formations.
"The Buck Stops Here": July 9, 2005
Candlestick reversal signals gain more significance when produced at support or
resistance. This article illustrates this principle through the use of several
Up": July 16, 2005
Summing up the information from the previous articles on candlestick formations,
this article provides examples that reiterate some hints and cautions about
"Fair Is Fair, or Is It?": July 23, 2005
This article discusses fair value and premium: how they're calculated and used.
"Curbing the Markets": July 30, 2005
Exchanges have rules for when trading curbs or collars might be instituted. This
article discusses those rules.
"Put/Call Ratio: August 6, 2005
Jane Fox wrote this article describing the put/call ratio's construction and
"Easy, Breezy Identification of Historical Support and Resistance Using Donchian
Channels": August 14, 2005
Donchian channels were invented as a means of identifying breakout plays, but
they're great at providing an easy reference for historical support or
Analysis of Breadth and Volatility Measures": August 20, 2005
Did you ever wonder whether the VIX or advdec line could be studied using
standard technical analysis tools such as trendlines or stochastics? This
article provides several chart examples that argue that they can.
"Think Again": August 28, 2005
Building on the August 20 article, this one shows that Keltner channels can be
used to help determine when the advdec line's move might
be overdone to the
upside or downside and when a reversal might be due, likely carrying equities in
the direction of the reversal.
"That Hidden Average": September 4, 2005
Few watch the 72-ema, but this average turns up again and again as support or
resistance on the charts of some indices and equities.
"A Primer on Elliott Wave Theory": September 10, 2005
Keene Little offers information on EW theory.
"What Day of
the Week Is It?": September 17, 2005
Historical and personal trading patterns can impact trading results for the days
of the week. This article discusses some of those patterns.
"Where's My Stop?": September 24, 2005
Determining where to place as stop is as important--and some would argue more
important--than deciding when to enter a play. This article proposes some ideas
for setting stops.
"Try to Top This--the Tale of Two Tails":
October 1, 2005
Jane Fox contributes an article on the tailing pattern.
"The Best Fit": October 8, 2005
Fitting retracement brackets to market moves can help determine targets. Several
charts illustrate this technique.
"Ozzy Osbourne's Option Advice": October 15, 2005
This article discusses the choice of the right option for an anticipated
"Not-So-Secret Diaries": October 22, 2005
importance of trading diaries should not be underestimated, especially when
testing a new trading methodology. This article discusses data that might be
included in such a diary.
"New Kid on the Block": October 29, 2005
This article discusses the new BuyWrite indices that have been introduced on
some exchanges, allowing traders to assess the profitability of a buy-write
"Early Birds Get the Worms": November 5, 2005
article discusses a setup for trades that are entered the first hour of
"Opex Action Every Week of the Month": November 12, 2005
Weekly OEX and SPX options have been introduced, offering all the risks and the
advantages of trading during opex week, all month long.
"Continuing Education": November 19, 2005
Opportunities for advancing your knowledge of options and futures trading
abound. This article discusses information
disseminated via a CBOT webinar. Its
topic was volume/price-spread analysis, and it illustrates the amount of free
information available to watchful traders.
"Thankfulness": November 26, 2005
Options trading as we know it began on April 26, 1973. This article discusses
the history of exchange-traded options.
"Old School, New School": December 3, 2005
Two market gurus have approaches that are poles apart but do share some
Gap in Logic": December 10, 2005
Gaps can signal the beginning of a strong move or warn of the ending of one.
This article discusses the different types of gaps.
"Divergence": December 17, 2005
This article discusses bullish and bearish divergences.
"The Transformers": December 25, 2005
When chart formations morph or transform into something different, traders are
alerted that markets have an underlying
bid or sell bias. Several charts
illustrate this principle.
"Yielding Up the Answers": December 31, 2005
This article discusses the yield curve.
"On Balance, It's a Good Indicator": January 7, 2006
Volume is an independent factor that can corroborate or diverge from a movement.
This article discusses the venerable on-balance volume indicator.
"It's All About Commitment": January 14, 2006
of Traders Report, discussed in this article, proves to be an
important tool for some traders.
"Double-Crossed": January 21, 2006
The double crossover method uses crossovers of two averages to produce buy and
sell signals. The article discusses the methodology.
"It's a Record": January 28, 2006
Candlestick record sessions are sessions in which a lower low or higher high is
made. Counting the number of record sessions can suggest
when a reversal is due,
and this article expounds on that technique.
"Step Away from the Computer": February 4, 2006
External or personal situations can create conditions under which it's best not
to trade. This article discusses some of those situations.
"Your Cup of Tea": February 11, 2006
This article introduces some old and new ideas about the cup-and-handle
"Shivers": February 18, 2006
what to investigate before you consider trading your system or anyone
"A Primer on Elliott Wave Theory--Part 1": February 25, 2006
At readers' request, Keene Little discusses Elliott Wave Theory.
"A Primer on Elliott Wave Theory--Part 2": March 4, 2006
Keene Little continues his discussion of Elliott Wave Theory
"Relatively Speaking, It's a Simple Indicator": March 11, 2006
Many traders use the
RSI indicator. This article discusses some strengths and
cautions about this indicator.
"Overdone Moves": March 18, 2006
We all hesitate to buy when indicators show overbought conditions or sell when
they indicator oversold ones, but sometimes we need to do just that. This
article pinpoints some times when it's dangerous to assume a rollover or bounce
"'Tis the Season": March 25, 2006
Some believe that a seasonal pattern
of selling exists into April 15-17. This
article explores patterns on the SPX for the last five years.