|
PureBytes Links
Trading Reference Links
|
Dear Index Trader,
The initial problem in finding what you seek, is to use search terms that
are common to authors of books, training videos and software.
Markets always trend -> up, down, sideways. "Reversals" are changes in trend
direction.
Markets always channel -> up, down, sideways. Support and resistance are the
boundaries of channels. "Support and resistance" are the boundaries of
channels. Look for "channel" and "cycle" based systems.
If you search for trend reversals, you'll find enough to read for several
years. Trend reversals are a short term form of contrarian investing.
If you search for channels, you'll find enough to read for several more
years. And channels are as subset to a larger entity, cycles or waves.
Cycles or waves usually last a longer term of many days, weeks, months or
years, although there can be tick by tick waves and cycles if you believe in
the religion of Elliott (I don't) or the charlatanism of Gann.
For studies and strategies relating to short term trading with channel
methods, look for Keltner Channels and Bollinger Bands. Latter is easy to
find. Info about Keltner channels is more difficult to find. Lee Gettess
probably is the best current author of Keltner channel info (try INO.com).
Keltner channels have a sounder conceptual trading basis than Bollinger
Bands.
Contrarian approaches are another counter-trend alternative. Usually these
are longer term approaches based on crowd psychology rather than upon
technical indicators and technical analysis.
However, one excellent, specific set of methods is to trade on failed chart
patterns, or failed indicator/oscillator patterns - - - where the market
moves opposite to what classical chart patterns or candlestick patterns or
indicator/oscillator interpretations say should normally occur. A
confirmed, failed pattern trades very well and usually rapidly in the
counter direction, as traders sucked in by the pattern discover they have
been faked out by either randomness, specialists, funds, institutions, other
traders or market makers.
Theresa Lo likes these, but I don't know if she has written any books about
same. She might have some TS strategies for sale for this, at
www.trendvue.com.
Here are some more channeling oscillators and cycle indicators: Bressert
Line or Bline (try Walter Bressert at www.walterbressesrt.com); Cycle Lines;
Detrended EMA; Detrended Price Oscillator; Distended Price Oscillator;
Elliott Waves; Envelope (Trading) Bands; various Fibonnaci tools - arcs,
fans, projections, retracements; Fourier Transform - hard to apply though;
Mesa sign wave - Mesa offers TS add-ons at www.mesasoftware.com; New
Highs-Lows Indicator; New Highs-Lows Ratio; Price Rate of Change; RSI
cycles, of course; Stochastic Double Oscillator; Stochastics Oscillator
cycles of course; Volume Rate of Change.
All of the foregoing can be used to detect trend reversals. So can these:
Absolute Breadth Index; ASE Short Interest Ratio; Bollinger Bands; Keltner
Channels; Bolton-Tremblay Indicator; Global Futures' Bottom Indicator;
Bressert Line; Investor's Intelligence Bull:Bear ratio; AAII's Bull:Bear
Ratio; Market Vane's Bull:Bear Ratio; Buy/Sell ratio of NYSE's program
trading; Chaikin Accumulation/Distribution Oscillator (Marc Chaikin); Center
of Gravity Oscillator; Climax Indicator; Demand Index; Global Futures' Fear
Index; High-Low Differential INdex; Global Futures' High-Low Ratio; High-Low
Logic Index; MACD; and many many more.
Here are some support and resistance indicators/osciallators: Accumulation
Swing Index; Andrews Pitchfork; Dynamic Balance Point; Bressert Line;
Fibonnaci of course; Gann (Barf! - he was a complete charlatan, IMHO!);
Ichimoku Equilibrium; Keltner Channels; Bollinger Bands; moving averages, of
course; Pivot Point channel; Projection Bands; Projection Oscillator;
Quadrant Lies; Range Action Verification Index; RSI of course;
Speed-Resistance Lines; Swing Index; Tirone Levels; Trade Volume Index;
Trend lines of course; Variable Index's Dynamic Average.
So you see, the problem isn't in the finding, rather its trying to figure
out which things fit your personality and trading styles. and the
instruments that you trade, in the time frames that you trade, in the kind
of markets that exist at the time, etc.
There are many ways to interpret each indicator or oscillator. Way to learn
those is seminars, video tapes, books and practice. Plus understanding,
above all, the crowd psychology underlying most of these.
Hope the above helps. At least the above provides you a lot of places to
start.
Vince Heiker
Flower Mound, TX
---
|