“A Bust to the Markets” (Archer), 361

“A Conversation with the Gnomes” (Archer and Treuren), 257

Account types, 107, 109Advisory services, 143–144Agent computing, 361Algorithmic trading, 363American style option, 326AnalyzerXL, 141Anti-hedging, 40Anti-hedging regulations, 116.

See also National Futures Association (NFA)

Application program interface (API), 358

Application service providers (ASPs), 359

Archer, Michael Duane, 257, 361, 363

Artificial intelligence (AI), 362Asian session, 8“A Simple Cellular Automata

Model for Predicting FX Prices” (Archer), 363

Ask price, 29, 52ATC brokers, 106AUDUSD example, 255Australian Dollar (AUD), 4Automated order entry, 130Automated trading method, 341Automated trading system, 339, 340Automatic trailing stops, 119

Axis Financial Services (money manager), 353

Baby markets, 355Baby Pips, 133Back-testing, 345–346, 359Backup computers, 112Baht, 333, 334Balance of trade, 178–179Ballooning (pip) spreads, 84, 93,

111, 190, 334Bands, 11Bank lot size, 9Bank lots, 59Banking hours, 319Bar charts, 150–152Barron’s, 95Base currency, 48–49, 67Basic market paradigm (BMP),

234–236, 257, 320Bathtub analysis, 234, 273–274, 280Bear market, 11Bear swings, 316Beginning point (BP), 239, 266Belgian dentist, 256Bernanke, Ben, 19Best FX Trader (money manager), 353Beyond Candlesticks: More Japanese

Charting Techniques Revealed (Nison), 159

Bickford, James L. “Jim,” 10, 83, 85, 88, 169, 183, 191, 225, 234, 314, 363

Index

405

bindex.indd 405 4/10/2012 4:45:45 PM

COPYRIG

HTED M

ATERIAL

http:/

/www.pb

ooks

hop.c

om

406 Index

Bid price, 29, 52Bid-ask spread, 13, 52, 117, 368Biofeedback, 211–213, 218, 293, 320Bland, John, 131, 188Bollinger, John, 167Bollinger Bands, 167–169Bollinger on Bollinger Bands

(Bollinger), 167Bounce 1 swing, 249Bounce 2 swing, 249, 250Bounce 3 swing, 250BoxOption, 329Box-top (order), 121British Pound Sterling (GBP), 4Broker-dealer checklist, 106Broker-dealer reviews, 132–133Brokers, 69Bull market, 11Bull swings, 316Butterfly option strategy, 328Buy (call), 28Buy signal, 153Buyer, 325Buying a call, 330Buying a put, 330

Calls, 325, 327Camtasia (software), 213Canadian Dollar (CAD), 4Cancellation, 243, 244Candlestick bar, 158Candlestick charts, 157–159Capital requirements for retail

FOREX broker-dealer, 41Capital Spreads, 102Carryover, 243, 244Cascino, Anthony, 143Cash market, 28Catastrophe theory, 363Cellular automata (CA), 343, 361,

362, 363Central banks, 7, 11, 19, 177

Central clearinghouse, 16Centralized exchange, 4CFTC. See Commodity Futures

Trading Commission (CFTC)Chaos theory, 363Chart library, 274Chart pattern recognition, 154Chart patterns, 315Chart time frame, 198Charting warnings, 162–163Chicago Mercantile Exchange

(CME), 22, 29Chinese Yuan, 4, 22–23Ching, Derek, 173CME Group, 33Combination orders, 121Commissions, 9Commitment of Traders (COT), 31Commodity Futures Modernization

Act of 2000, 37–38Commodity Futures Trading

Commission (CFTC)about, 36–37brokers, 92currency futures, 29daily limits set by, 15foreign equivalents, 43Reauthorization Act of 2005,

38–39, 41regulations, 35, 41–42, 103, 108,

190, 337in retail FOREX, 25role expansion, 12

Commodity pool operator (CPO), 108, 337

Commodity trading advisers (CTAs), 41, 108, 337

Compass FX (money manager), 353Compensation, 243, 244Computer trading

about, 357agents, 359

bindex.indd 406 4/10/2012 4:45:45 PM

http:/

/www.pb

ooks

hop.c

om

I ndex 407

arbitrage, 365–370arbitrage pros and cons, 370–371automated trading system, 359bots, 359cloud computing, 359–360expert advisor (EA), 358–359FOREX future, 362–363Grid programs, 364high and ultra high-frequency

trading, 360–362Pac Man programs, 364technical analysis, 357–358trend machine, 363summary, 371

Computer-assisted traders, 339Computer-assisted trading

method, 341Condor option strategy, 328Consumer price index (CPI),

181, 189Continuation charts, 216Continuation patterns, 155–157Contract, 28Contract specifications, 29–30Contraction, 314Contrary opinion reports, 355Correlation, 54–55, 312Costs and fees. See also Transaction

costsFOREX broker selection, 87–89FOREX manager fees, 351–353lot fees, 13trading costs, 13–14weekend transaction costs, 318

Counter order, 86Counterparties to trades, 86Counterparty FCM, 41Covered writer, 327Cross rate, 369Crosses, 5Crossing the bridge, 258–259Cross-platform hedge, 190

Crowd psychology, 7Currency Bulletin (Pecival), 144Currency College, 133Currency futures, 29Currency options, 28, 33Currency pairs, 3, 11, 292Currency prices, 6Currency Trader, 144Currency trading history

ancient times, 17–18Bretton Woods Agreement of

1944, 21Commodity Futures Trading

Commission (CFTC), 25Euro arrival, 23, 25Federal Reserve System (the Fed),

18–20floating exchange rate, 21–22foreign exchange timeline, 24future of, 22–23gold standard, 18international money market, 22National Futures Association

(NFA), 25Securities and Exchange

Commission (SEC), 20–21Currency trading volume, 30Currency transactions, 16Currenex (trading platform), 80Current Bulletin (Percival), 188Curve-fit data, 169–170Curve-fitting, 229Cycle analysis, 172

Dagger entryprinciple, 258technique, 256–258

Data services, 142Day traders, 14, 202, 248, 286Dealer intervention, 15, 87Declining memory effect, 354Deficit, 178

bindex.indd 407 4/10/2012 4:45:45 PM

http:/

/www.pb

ooks

hop.c

om

408 Index

Delta (option term), 328Demo account

opening, 124trading functions, 107

Denver (magazine), 257Depth of markets (DOM), 87Diagnostics process, 284, 290–293Digital reading, 363DiNapoli, Joe, 173DiNapoli Levels, 173Dines Letter, 143Directional movement (DM), 347Discretionary traders, 339Discretionary trading method, 341Disk Trading, 142Divergence, 314Divine Ratio, 172Dobson, Ed, 145, 146Dodd-Frank Wall Street Reform

and Consumer Protection Act, 25, 33

Dorsey, Thomas J., 162Dow, Charles, 159Downtrend market, 234Drummond, Charles, 173Due Diligence Form, 339Due diligence process, 338

account access, 349contract, 349money path, 349–350red flags, 350–351references, 348registration and regulation, 348transparency, 349website, 348–349summary, 356

Dukascopy, 101Durable goods, 182

ECNs. See Electronic communications networks (ECNs)

Economic indicators, 176, 184–186Edge Capital markets, 143Educational resources, 133–135Electronic communications

networks (ECNs), 9, 13, 53, 84, 334

Elliot Wave Theory (EWT), 172, 173, 236

Elliott, Ralph N., 172Elliott, T. S., 147Emerging markets or currencies, 355Emerging pairs, 332Emotions, 211Employment index, 182Ending point (EP), 239, 241, 266Entry library, 292eSignal, 106, 140, 142Euro Dollar (EUR), 4, 22, 25Euro Money, 145European Monetary Union

(EMU), 22European session, 8European style option, 326Eurozone countries, 23EURUSD Trader, 143Everything (software), 274Evolutionary changes, 290Execution of trading plan

entering the trade, 215exiting the trade, 216monitoring the trade, 216reality check, 215

Exotic option, 326Exotics

described, 4–5, 324pairs, 332–333trading, 333–334summary, 334–335

Expansion, 314Expert advisor (EA), 221Expert advisor (EA) vs. expert

system, 359

bindex.indd 408 4/10/2012 4:45:45 PM

http:/

/www.pb

ooks

hop.c

om

I ndex 409

Fear and greed, 320–321Feder, Jens, 354Federal Open Market Committee

(FOMC), 19Federal Reserve Board (FRB),

19–20, 180Federal Reserve System (Fed),

18–20Fee calculation, 349Fibonacci number series, 17250 percent rule, 237Filters, 226Financial information, 109Financial Markets Association

(FMA), 38–39Financial Services Authority

(FSA), 43FinSpreads, 102First in first out (FIFO), 39, 40, 124“Five Digit Pricing,” 52Flash crash, 362Flash executions, 360Floating, 250Ford, Henry, 20Forecasting models, 184Foreign economic indicators, 187Foreign exchange market (FOREX,

FX). See also Trading platformsabout, 3–4base currency, 48–49cross currency, 48currency pairs, 47described, 3vs. equities, 14exotic currency, 48vs. futures, 14–15major currency, 48minor currency, 48pips, 56–57terms used in, 47–55

Foreign regulation, 43Foreign regulatory agencies, 39

FOREX (FX) basicsabout, 57–58base currency, 67bid-ask spread, 62–63calculations, 67leverage, 62lot sizes, 59margin, 80–81profit and loss, 59–60profit threshold, 63–66quote currency, 67summary, 66–67

FOREX (FX) marketsFOREX futures, 27forwards FOREX, 27options trading, 27spot (cash) market, 27summary, 15–16

FOREX (FX) money managers registration, 41

FOREX accountsabout, 105–106demo account, 106–107live account, 107–111live account steps, 109–111redundancy, 111–112summary, 113

FOREX broker selectionaccount options, 92–93ATC brokers, 94Big Four broker dealers, 100–101broker-dealer checklist, 103broker-dealer due diligence,

84–85broker-dealers, 93–98complaints and resolution, 92costs, 87–89customer service, 90–91demo accounts, 85–86electronic communications

networks (ECNs), 86–87financial stability, 91–92

bindex.indd 409 4/10/2012 4:45:45 PM

http:/

/www.pb

ooks

hop.c

om

410 Index

FOREX broker selection (continued)FOREX.com, 97–98frauds and scams, 102–103games played by brokers, 93Interactive Brokers, 96issues, 83–84liquidity provider, 89market-maker brokers, 86–87MB trading, 94–96off exchange, 102–103PFG Best, 98popular choices, 98–100for professional and non-U.S.

traders, 101–102spread betting, 102trading pair palette, 91summary, 103

FOREX calendar, 135FOREX currency symbols, 5Forex Factory, 188Forex Journal, 144FOREX Magazine, 144FOREX marketplace

about, 129–130advisory services, 143–144broker-dealer reviews, 132–133data services, 142educational resources, 133–135fun stuff, 146management tools, 136–138news and calendars, 135–136portals and forums, 130–132programming services, 142–143references, periodicals and books,

144–146system development tools,

138–142summary, 147

FOREX News Calendar Indicator, 193

Forex Online Learning, 133FOREX options, 324

Forex Patterns and Probabilities (Ponsi), 169

Forex Peace Army, 84, 93, 132, 356FOREX Shockwave Analysis

(Bickford), 191FOREX spot account, 108Forex Trading Education, 134FOREX trading funds, 108FOREX trading plan, 207–218FOREX TSD (forum), 106ForexTester, 140Forwards FOREX, 4Forwards trading, 33“Four Digit Pricing,” 52Fractals (Feder), 354Fraud, 12, 44, 341, 356Fundamental analysis, 175,

193–194, 340Fundamental factors

balance of trade, 178–179consumer price index (CPI), 181durable goods, 182employment index, 182gross domestic product

(GDP), 180housing starts, 182–183industrial production (IP), 181interest rates, 177intervention, 180parity and purchasing power

(PPP), 179–180producer price index (PPI), 181purchasing managers index, 181retail sales, 182

Futures Commission Merchants (FCMs), 36, 38, 43, 84, 341, 348, 350, 351

Futures contract, 28Futures FOREX, 4Futures Magazine, 145Futures traders, 66FX AlgoTrader, 146

bindex.indd 410 4/10/2012 4:45:45 PM

http:/

/www.pb

ooks

hop.c

om

I ndex 411

FX All (trading platform), 80FX Options Trade Board, 329FX Week, 145FXPro, 101, 334

Gain Capital, 97, 334Game theory, 361Gamma (option term), 328Gann, William D., 172Getting Started in Currency Trading,

90, 293Getting Started in Currency Trading,

1st ed. (Archer and Bickford), 10, 83, 85, 88, 169, 183, 191, 314

Getting Started in Currency Trading, 2nd ed. (Archer), 35

Getting Started in Currency Trading, 3rd ed. (Archer), 33, 35, 102, 357, 360

Getting Started in Currency Trading, 4th ed. (Archer), 70, 98

Getting Started in Futures (Lofton), 31

GFT FOREX, 334Ghost trading, 279–280Global View (Bland forum), 131,

188, 194Global Viewpoint Inc. (GVI)

forums, 131Go Forex, 133Going against the crowd, 315Gold standard, 22Goodman, Charles B., 147, 162,

204, 216, 221, 226, 233–234, 256, 297, 304, 371

Goodman Method, 214, 217Goodman setups, 253Goodman swing count system

(GSCS), 241, 316Goodman vs. Elliott,

240–241

Goodman Waltzbreaking even, 264fire starter, 265–266PTS template, 261–262Samba, 265steps, 259–260stop-loss order, 263taking profits, 264–265trading the line, 266–269

Goodman wave, 240Goodman Wave Theory (GWT)

1-2-3 axiom, 236–2373C principle, 243–244about, 233–234Basic Market Paradigm, 234–236basic setup, 245vs. Elliott Wave Theory, 172Goodman vs. Elliott, 240–241ideal matrix, 237–239intersection principle, 241–243matrix in, 239under and over counts, 244propagation principle, 239–240summary, 246

Goodman Works, 134Goodman Works FX Bullish

Consensus, 314Goodmanisms, 297–301Goodman’s law of trading systems,

229–230Gordago, 140Gould, Bruce, 283Governmental regulation, 12.

See also National Futures Association (NFA)

Great Depression, 20Grid systems, 116Gronfelt, Arne, 310Gross domestic product (GDP), 180Gross price movement, 304Grubstake, 284, 285Guerilla trader, 64, 201, 248

bindex.indd 411 4/10/2012 4:45:45 PM

http:/

/www.pb

ooks

hop.c

om

412 Index

Harmonization issue, 42Harry Schultz Letter, 143Harvesting stops, 119Hawaii Forex (Ching), 134, 173Hedges, 6Hedging activity, 5, 39, 190Hicks, Abraham, 213High leverage, 10High-frequency trading (HFT), 6,

360, 361Hill, Napoleon, 213Holt Advisory, 143Homma, Munehisa, 157Homogratus, Felix, 135HotSpotFX (trading platform),

80, 101Housing starts, 182–183Hunter, Lew, 303Hypothesis testing, 273–274

IB Times, 95ICE FX, 33Ideal matrix, 237–239IFTI (money manager), 353IG Index, 102In the money, 325Indicator battery, 221Indicator warnings, 169–170Indicators

comparison of, 173–174and oscillators, 163

Individual account, 341Industrial production (IP), 181Inside swings, 316Insider trading, 12Institutional trading, 6Intel4x (money manager), 354Interbank market, 11Interbank system, 35Interest rates, 177International Money Market

(IMM), 22, 29, 33

Internet connections, 111Intersection principle, 241–243Intersections, 242Intervention, 180Intrinsic value, 325Introducing Broker (IB), 41, 84Invest2 Forex (money manager), 354Investopedia, 144Inward look, 245

Japanese Candlestick Charting Techniques (Nison), 159

Japanese Yen ( JPY), 4Jonathan’s Wave, 362Jumbo swing, 249

Keene, James R., 159Keynes, John Maynard, 175King Kong syndrome, 320

Lagging indicators, 188Latency, 371Laydowns, 272Leading indicators, 187–188Level of interdeterminacy, 243Leverage, 9, 25, 33, 44, 51Leverage regulations, 324, 333Limit on close (LOC) order, 121Limit on open (LOO) order, 121Limit orders, 116, 117Lindsay, Charles, 237Line (profit maximization

technique), 256Liquidity, 6, 10, 12, 15, 48, 333, 334Liquidity provider, 87Live accounts, 106Lofton, Todd, 31Long position, 6, 28, 48, 49Long vs. short, 292Looking inward, 275–276Looking outward, 275–276Lot fees, 88

bindex.indd 412 4/10/2012 4:45:46 PM

http:/

/www.pb

ooks

hop.c

om

I ndex 413

Lot sizes, 9, 59, 104Low margin, 10

Magnum Program, 354Major currency, 4Major pairs, 5, 42–43, 48, 332Managed FOREX, 337–356

about, 337–338costs and fees, 351–353managed account types, 341manager spotlights, 353–355manager types, 339–340Panholzer, Peter, 354–355performance analysis, 344–346pros and cons, 338–339reasons for, 338research and resources, 356trading methods, 341–344summary, 356

Managed Forex (money manager), 354

Management fees, 352–353Management pools, 350Management tools, 136–138Manager checklist, 340Margin account, 50–51Margin requirements, 20, 42–43,

335, 370Marginal products, 176Margins, 6, 44Market environments (ME), 221,

291–292Market flows, 355Market hours, 10Market makers, 9Market orders, 115, 116, 117, 334Market price cornering, 11Market Traders, 133Market-maker brokers (dealers), 13,

53, 84Matrix, 237, 239Maximum leverage, 36, 40

Meditation, 320Meisler, Jay, 131Mercury charts, 31–32MetaTrader, 106, 111, 123, 124,

146, 163, 188, 193, 208, 209, 210, 213, 217, 224, 264, 314, 358, 360

Method stop-loss, 226Mexican Peso, 333Micro lot size, 9Micro-accounts, 13, 93, 124Micro-lots, 59Middlemen, 9Mini-accounts, 93Mini-lots, 9, 59Minor currency, 4Minors, 5Mixed fees, 353Molanis Strategy Builder, 146Momentum analysis, 165–166Money management, 174,

255–269, 358Money managers, 108Money supply, 20Months, 30Moore’s Law, 358Moving average, 225Moving average convergence

divergence (MACD), 166Moving averages, 166–167Moxham, Steve, 131, 133MQL4 Code Base, 146, 358MQL5, 358Multiple 3-C counts, 278Myer’s Energy and Finance, 143

Naked writer, 327National bankruptcy, 23National Futures Association (NFA)

about, 37broker registration, 36, 92, 102currency futures, 29

bindex.indd 413 4/10/2012 4:45:46 PM

http:/

/www.pb

ooks

hop.c

om

414 Index

National Futures Association (NFA) (continued)

currency manager, 337foreign equivalents, 35“Know-Thy-Customer” Rules, 38,

42, 110leverage regulated, 24margins, 51in retail FOREX, 25role expansion, 12Rule 2–43, 25, 39, 40–43, 86, 93,

116, 190, 333, 342summary, 44

Navigation, 113NeoTicker, 80Nest, 276Net price change, 304Neural networks, 343NEVER rules, 120New Concepts in Technical Trading

Systems (Wilder), 343New Impact, 191New York Board of Trade, 30, 33New Zealand Dollar (NZD), 4News and calendars, 135–136News Squawk, 136News traders, 7, 98News trading, 175–195

about, 175–176FOREX news, 188fundamental analysis, 176fundamental discussion, 183–188fundamental factors, 177–183fundamental problems, 176–177key news releases, 188reality vs. expectations, 189shockwave analysis, 191strategy, 191, 193tactics, 191, 192–193traders response to, 189–190summary, 193–194

NextChart, 146

NFA (National Futures Association). See National Futures Association (NFA)

Nibbling, 260Ninja Trader, 106, 138, 139–140,

163, 209, 358Nison, Steven, 157, 159Nixon, Richard M., 22No dealing desk (NDD), 53, 86Nofri, Eugene, 311Nonfarm payroll report (NFP), 182,

186, 188, 189Nonlinear methods, 363, 371Norlin, George, 17North American Session, 8

Oanda (web site), 313One cancels the other order

(OCO), 1211-2-3 axiom, 236–237Online trading, 12Open orders, 123–124OpenQuant, 80Options, 28

about, 323–324advanced option strategies, 328basic options strategies, 327described, 324Greeks, 328hedging with, 323options primer, 324–325options pros and cons, 326options terms, 325–326options vs. spot FOREX, 330purchase vs. writing, 327–328retail FOREX options, 329risk management with, 330–331summary, 334–335

Options pricing, 325, 326Options trading, 4Order confirmation, 123Order execution, 122

bindex.indd 414 4/10/2012 4:45:46 PM

http:/

/www.pb

ooks

hop.c

om

I ndex 415

Order placement, 39, 121–122Orders, 115–117. See also TradingOut of the money, 325Outside swings, 316Outward look, 245Overlap, 55Overlays, 245, 275Overnight charges, 89Over-the-counter (OTC) FOREX

options, 329Over-the-counter (OTC)

market, 11

Pac Man programs, 342, 344, 347–348

Pain thresholds, 203–204Pairs, 5PAMM account, 341Paragon FX, 101Parity and purchasing power (PPP),

179–180Parlane, Graham, 143Patriot Act, 38Pending execution, 115Percentage of retracement, 172Percival, John, 144, 188Performance analysis

assets under management (AUM), 345

equity cycle and drawdowns, 344–345

equity exposure, 345reward and risk, 344track record, 345–346weaknesses, 346

Performance analysis methodsmarket environments (ME),

347–348Sharpe ratio, 346

Performance fees, 352Performance-only fees, 353Perry Wysong’s Insider, 143

Personal information, 109Pip currency, 49Pip spreads, 10, 48, 87Pips, 10, 49, 352Pips values, 13–14Platform checklists, 106Point & Line Method

(Drummond), 173Point and Figure Charting

(Dorsey), 162Point and figure charts,

159–162, 316Points, 49Ponsi, Ed, 169Pooled accounts, 341Portability, 360Portals and forums, 130–132Position sizing, 13Position traders, 202, 248Positioning changes, 355Premium, 325Price adjustments, 40–41Price fields, 150Price memory, 149, 173, 354Primary brokers, 111Pro Trader Plus (trading

platform), 80Proactive trading

about, 271bathtub analysis, 273–274chart library, 274ghost trading, 279–280laydowns, 272looking inward, 275–276looking outward, 275–276multiple 3-C counts, 278propagation, 274–275sitting on your hands

(SOYH), 280stations, 278summary, 281

Producer price index (PPI), 181, 186

bindex.indd 415 4/10/2012 4:45:46 PM

http:/

/www.pb

ooks

hop.c

om

416 Index

Profiles, 209Profit-loss ratio, 64, 287–288, 291Programming services, 142–143Prolific Investments (money

manager), 354Propagation, 274–275Propagation 2 Swing, 250Propagation 3 swing, 253Propagation principle, 239–240Propagation trade setup (PTS), 245

about, 247AUDUSD example, 249–253time frames, 248–249summary, 253

Psychology of traders, 174Pugh, Burton, 151–152, 234Purchasing managers index, 181Purchasing power parity (PPP), 180Pure Logik Trading, 143Puts, 325, 327

Quote conversion, 52Quote currency, 49, 67

Range, 364Recordkeeping, 84, 109, 111Red Paladin, 360Rednor, Peter, 320References, periodicals and books,

144–146Registration of FOREX

manager, 348Regulation. See also National Futures

Association (NFA)in FOREX market, 35–45future of, 43–44history of, 36–39present, 39–43

Relative strength indicators (RSI), 163–164, 169, 220, 343

Repropagation, 251Requoting, 15, 84, 87, 93, 111, 334

Reserve currency, 21Retail FOREX, 5, 6Retail FOREX brokers, 323Retail FOREX options

Oanda, 329PFG Best, 329SaxoBank, 329

Retail sales, 182Return point, 241Return setups, 245, 247, 253Return zone, 241, 251Reversal patterns, 154Review Pips, 133Rho (option term), 328Risk-avoidance, 256Risk-avoidance approach, 286Rockefeller, John D., 256Rollover charges, 89Rollovers, 14, 54Round-turn, 53

SaxoBank, 334Scalpers, 64, 201–202, 286The Science and Secrets of Wheat

Trading (Pugh), 234, 237Scripting languages, 358Secondary brokers, 111Securities Act of 1933, 20Securities and Exchange

Commission (SEC), 29, 360Securities Exchange Act of 1934, 20Sell (put), 28Sell signal, 153Sell the bid and buy the ask, 52Sentiment analysis, 355Session carryover charges, 89Session Lines, 213Sessions, 292Sharpe, William F., 346Sharpe ratio, 345, 346Short position, 49Sideways market, 234

bindex.indd 416 4/10/2012 4:45:46 PM

http:/

/www.pb

ooks

hop.c

om

I ndex 417

Signal services, 130, 314Simple system

about, 219–220general principles, 220–221KIS toolbox, 221–222momentum index, 226–227moving average crossover,

223–226not so simple, 229–230pairs to trade, 229–230stop-loss and take-profit

rules, 228trading rules, 227–228summary, 230

Sitting on your hands (SOYH), 211, 216, 280

Smithsonian Agreement, 22SMW principle, 272Snagit (software), 84, 217SnapDragon, 142Sortino Ratio, 346Specialty orders, 121Speculative hedges, 324Speculators, 5, 6Speed, 364Spice Cap (money manager), 354Spike Charts, 146Spot (cash) markets, 4, 14Spot currency trading, 14Spot FOREX, 28Spot FOREX futures, 33Spot FOREX open interest, 32Spot gold trading, 33, 36Spot silver trading, 33, 36Spot trading in gold and silver,

25, 40Spread betting, 4, 28, 33Spreads, 88Standard accounts, 93Standard lot size, 9Standard lots, 59Standard setups, 245

Stations, 278Stock markets, 10–11Stop harvesting, 84, 93, 111Stop orders, 116, 118–121Stop-loss orders, 63, 119, 120, 122,

153, 215, 216, 293Strike price, 325Success to Commodities: The Congestion

Phase System (Nofri), 311Suitability/know-your-customer

requirement, 42Support and resistance levels, 153Swing, 238Swing analysis, 171Swing charts, 152, 316Swing traders, 171Swiss Franc (CHF), 4System development tools, 138–142

Take-point order, 63Take-profit order, 122, 153, 215,

216, 244, 293Technical analysis

about, 149bar charts, 150–152Bollinger Bands, 167–169candlestick charts, 157–159chart pattern recognition, 154charting warnings, 162–163continuation patterns, 155–157curve-fit data, 169–170cycle analysis, 172indicator warnings, 169–170indicators and oscillators, 163momentum analysis, 165–166moving averages, 166–167point and figure charts, 159–162references on, 230relative strength indicators (RSI),

163–164reversal patterns, 154support and resistance levels, 153

bindex.indd 417 4/10/2012 4:45:46 PM

http:/

/www.pb

ooks

hop.c

om

418 Index

Technical analysis (continued)technician’s beliefs, 173technician’s warning, 173–174trading strategy, 175, 194, 340trading systems, 173trendlines, 153wave and swing analysis, 171–172summary, 174

Technical factors, 7Technician’s beliefs, 173Technician’s warning, 173–174Techniques tools for trading

bullish consensus, 314–315contrary opinions, 314–315correlation and transitivity,

312–314directional movement (DM),

304–305market environments (ME), 304market environments (ME)

applications, 308–309market environments (ME)

temperatures, 308Nofri congestion phases, 311–312price rhythm, 305–308Pugh charts, 315–316range finder, 310–311three chart system, 309–310time rhythm, 305–308volatility (V), 304–305

TechSmith, 217Templates, 209, 242Theta (option term), 328Think and Grow Rich (Hill), 213Third party products and services, 1330-trade campaign program

about, 283capital allocation, 284–288characteristics of successful

traders, 293–294diagnostics process, 290–293formula, 287

golden FOREX ratios, 287–288pre-trade checklist, 288tracking trades, 288trade lot sizing, 286two-day trader worksheet,

285–286worksheet, 284summary, 295

3-C principle, 243–244, 2643-D setup, 247, 253Tick symbols, 30Ticks, 49–50Time frames, 12Time hash, 266Time series analysis, 173Time studies

day of week, 319flyers, 319–320Goodman price-time swing

chart, 317market closing, 319market opening, 318–319time filters, 316, 318time of day, 319

Time zones, 319Tipping point (TP), 239Tools for trading, 13

about, 303–304fear and greed, 320–321techniques, 304–316time studies, 316–320summary, 321

Traders, characteristics of successful, 293–294

Traders Press, 145Trading, 115–124

combination orders, 121costs, 13–14limit orders, 117market orders, 117open orders, 123–124opening demo account, 124

bindex.indd 418 4/10/2012 4:45:46 PM

http:/

/www.pb

ooks

hop.c

om

I ndex 419

order confirmation, 123order execution, 122order placement, 121–122orders, 115–117specialty orders, 121stop orders, 118–121summary, 124

Trading against the box, 342Trading against yourself, 55Trading day, 8Trading indicators, 169Trading market hours, 8Trading markets, 225Trading methods for managed

FOREXartificial intelligence (AI), 343breakout, 343divergence, 343due diligence process,

348–351grids and Pac Man systems, 342hedges, 342nonlinear algorithms, 343–344quality of market, 342trend following, 342

Trading plan, 207–218about, 207–208components of, 208–209elements of, 209–211execution of, 215–216post-trade plan, 216–218pre-trade plans, 211–214summary, 218

Trading platformsabout, 69–70checklist for, 80–82eSignal, 76–78features of, 71–74MetaTrader, 74–75MultiCharts, 78–79Ninja Trader, 75–76other selections, 79–80

professional, 80proprietary, 69

Trading profiles, 205day traders, 202guerilla trader, 201position traders, 202scalpers, 201–202selection of, 203–204

Trading psychology, 174Trading questions, 289The Trading Rule That Can

Make You Rich (Dobson), 146, 237–238

Trading spaceabout, 197charts and bars, 198–200market as a process, 204–205trading profiles, 201–202summary, 205

Trading styles, 339Trading systems, 173, 354, 358Trading Tables, 56Trading transactions, 8–9Trading vs. trending markets, 220Trailing stops, 119Transaction costs, 10, 53–54, 318,

368, 370Transaction speed, 10Transitivity, 313, 314Transitivity arbitrage, 370Transitivity pair, 55“The trend is your friend”

(axiom), 236Trend Machine, 362Trend reversal, 343Trending indicators, 169Trending markets, 225Trendlines, 153Treuren, R. David, 257Triangular arbitrage, 366, 370Trident (Lindsay), 23724 hour market, 10

bindex.indd 419 4/10/2012 4:45:46 PM

http:/

/www.pb

ooks

hop.c

om

420 Index

Ultra-high-frequency trading (UHFT), 6, 360, 361

Under and over counts, 244Under-over propagation, 264Uptrend market, 234U.S. dollar index,

30–31U.S. dollar (USD), 4U.S. Treasury, 19

Vanilla option, 326Vega (option term), 328Very short term trading, 340Virtual private server

(VPS), 360Volatility (V), 347

described, 304vs. liquidity, 12

Volume and open interest, 31–32

Volume of trading, 27

Waltz (trade-in-progress technique), 256

Watch list, 214Watch profile, 210Wave analysis, 171Wave and swing analysis, 171–172Wealth Lab, 141Weekend transaction costs, 318Whipsawing, 171, 342Wilder, Welles, 343Winners-to-losers ratio, 63–64, 65,

286, 287, 291Writer, 325Writing a call, 327Writing a put, 327

Young, Joseph, 144YouTube, 106Yuan, 4, 22–23

Zloty, 333

bindex.indd 420 4/10/2012 4:45:46 PM

http:/

/www.pb

ooks

hop.c

om