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Technically Speaking, January 2011

Letter from the Editor

As we start a new year, many people take the time to reflect on where they are, and where they have been. Considering the state of our discipline at this time, we can note that technical analysis is widely accepted and well covered in the investment community. Bloomberg terminals dominate the professional landscape and offer news and analysis, but also charts and thousands of variations of charting. For those without access to these terminals, some type of charting software is the dominant application on their desktop. It is very likely that most MTA members and affiliates can’t even remember a time when technical analysis wasn’t widely accepted. More than a decade ago, day trading became popular, and these strategies more often than not involved technical tools. But only a decade before that, in the mid-1980s, technical analysis was limited to a small part of the investment community and FNN, the predecessor to CNBC, devoted only a small part of their programming to the subject. In many ways, we are experiencing the

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What's Inside...

Correction: Los Angeles MTA Chapter Meeting November 15, 2010

In last month’s issue of Technically Speaking, we incorrectly spelled the name of legendary market technician Joe Granville. We regret the...

Q&A: Technically Speaking Interviews Jeffrey Weiss, CMT

by JEFFREY S. WEISS, CMT & Amber Hestla-Barnhart

Editor’s Note: Jeff has enjoyed a long and successful career. Readers can benefit as much from reading his biography, which is below the interview, as they can from reading Jeff’s thoughtful...

Volume Price Confirmation Indicator

by Buff Dormeier, CMT & Michael Carr, CMT

On August 31, 2005, Buff Dormeier, CMT, made a presentation to the Chicago Chapter of the MTA. It is available in the on demand video archives section of the MTA web site. Buff has written about...

Q&A: Technically Speaking Interviews Alex Spiroglou, CFTe, MSTA

by Alex Spiroglou, CFTe, MSTA & Amber Hestla-Barnhart

Editor’s Note: Investing is obviously a consuming focus of Alex Spioglou’s life. He has excelled and readers can gain a sense of how he developed a simple concept, intermarket analysis, into a...

Head and Shoulders through the Ages

by Michael Carr, CMT & Amber Hestla-Barnhart

The Head and Shoulders (H&S) pattern is a mainstay of technical analysis. Chart patterns, from candlesticks to those catalogued by Edwards and Magee in Technical Analysis of Stock Trends were the...

Announcements

MTA Launches Members-Only Social Network The MTA is pleased to announce the launch of our members-only social network. As a member of the MTA, you automatically receive access to this community...

Correction: Los Angeles MTA Chapter Meeting November 15, 2010

Correction: Los Angeles MTA Chapter Meeting November 15, 2010

In last month’s issue of Technically Speaking, we incorrectly spelled the name of legendary market technician Joe Granville.

We regret the error.

To view this content you must be an active member of the CMT Association.
Not a member? Join the CMT Association and unlock access to hundreds of hours of written and video technical analysis content, including the Journal of Technical Analysis and the Video Archives. Learn more about Membership here.

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Q&A: Technically Speaking Interviews Jeffrey Weiss, CMT

Q&A: Technically Speaking Interviews Jeffrey Weiss, CMT

Editor’s Note: Jeff has enjoyed a long and successful career. Readers can benefit as much from reading his biography, which is below the interview, as they can from reading Jeff’s thoughtful answers. He demonstrates that success requires a passion for the markets, a disciplined approach to strategy, and the willingness to endure the ever-shifting face of Wall Street. Jeff has worked with some of the largest firms in the industry, and has also helped smaller firms with his brand of motivational technical analysis.

How would you describe your job?

I’m a technical analyst, a discipline I was motivated to pursue after having been introduced to a broker from Herzfeld & Stern in 1974 while I was living through the big bad bear market of 1973-74. I’ve been analyzing charts and drawing lines day and night, six days a week ever since. I still post my numbers by hand, one sheet for my

To view this content you must be an active member of the CMT Association.
Not a member? Join the CMT Association and unlock access to hundreds of hours of written and video technical analysis content, including the Journal of Technical Analysis and the Video Archives. Learn more about Membership here.

Contributor(s)

JEFFREY S. WEISS, CMT

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Volume Price Confirmation Indicator

Volume Price Confirmation Indicator

On August 31, 2005, Buff Dormeier, CMT, made a presentation to the Chicago Chapter of the MTA. It is available in the on demand video archives section of the MTA web site.

Buff has written about extensively about this idea, and his work on Price & Volume, Digging Deeper was recognized with the Dow Award in 2007, http://www.mta.org/eweb/docs/2007DowAward.pdf. In that paper, he wrote, “When securities change hands on a securities auction market, the volume of shares bought always matches the volume sold on executed orders. When the price rises, the upward movement reflects demand exceeds supply or that buyers are in control. Likewise, when the price falls it implies supply exceeds demand or that sellers are in control. Over time, these trends of supply and demand form accumulation and distribution patterns. What if there was a way to look deep inside price and volume trends to determine if current prices were

To view this content you must be an active member of the CMT Association.
Not a member? Join the CMT Association and unlock access to hundreds of hours of written and video technical analysis content, including the Journal of Technical Analysis and the Video Archives. Learn more about Membership here.

Contributor(s)

Buff Dormeier, CMT

Michael Carr, CMT

Michael Carr, CMT

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Q&A: Technically Speaking Interviews Alex Spiroglou, CFTe, MSTA

Q&A: Technically Speaking Interviews Alex Spiroglou, CFTe, MSTA

Editor’s Note: Investing is obviously a consuming focus of Alex Spioglou’s life. He has excelled and readers can gain a sense of how he developed a simple concept, intermarket analysis, into a complete methodology. That is a common theme among investment professionals – specialization and expertise. At the end of the interview, he provides excellent advice for the aspiring analyst.

How would you describe your job?

I am an investment manager for Odin Capital Management, a UK based, FSA regulated global macro-investment management firm. I trade across futures across all asset classes trading on a semi-systematic trading model. The strategies focus on exploiting short term intraday price dislocations, and also some medium-term strategic positions (2-4 weeks), based on fundamental/ macro themes. Additionally to my trading book, I also designed the “Hedge Fund Trader Incubation Program” (the firm’s “turtle trader” project that trains aspiring junior traders), including the Training Course.

What led you to

To view this content you must be an active member of the CMT Association.
Not a member? Join the CMT Association and unlock access to hundreds of hours of written and video technical analysis content, including the Journal of Technical Analysis and the Video Archives. Learn more about Membership here.

Contributor(s)

Alex Spiroglou, CFTe, MSTA

Head and Shoulders through the Ages

Head and Shoulders through the Ages

The Head and Shoulders (H&S) pattern is a mainstay of technical analysis. Chart patterns, from candlesticks to those catalogued by Edwards and Magee in Technical Analysis of Stock Trends were the first tools developed in the discipline. Technical analysis is built upon the idea that supply and demand determine price, and the chart action reflects the changes in these two factors over time. Edwards and Magee explained how the pattern forms on the chart, and described the market psychology that caused the price movements.

StockCharts.com offers a comprehensive guide to the basics by clicking here. While this is well-known material to all CMTs, and probably all those who recently passed the first level of the CMT exam, it is often well worth the time to consider the basics occasionally. Baseball players go to spring training to brush up on skills they learned in Little League games decades earlier. Technicians can do

To view this content you must be an active member of the CMT Association.
Not a member? Join the CMT Association and unlock access to hundreds of hours of written and video technical analysis content, including the Journal of Technical Analysis and the Video Archives. Learn more about Membership here.

Contributor(s)

Michael Carr, CMT

Michael Carr, CMT

Announcements

Announcements

MTA Launches Members-Only Social Network

The MTA is pleased to announce the launch of our members-only social network. As a member of the MTA, you automatically receive access to this community portal at no additional cost. We encourage you to use this new member benefit as an additional networking tool to link you with other technicians who share similar interest and may be in your area. To get started, visit the MTA website, login, and select ‘Access MyMTA’ at the top of the screen. If you have any questions or comments, please direct them to Shane Skwarek at shane@mta.org

CMT Registration – Now Open!

Registration for the Spring 2011 CMT Administration is now open for all three levels! Sign up today to ensure your preferred time, date, and location. Contact Marie Penza, 646-652-3300, for information on the CMT Program and/or if you are having trouble scheduling your exam with

To view this content you must be an active member of the CMT Association.
Not a member? Join the CMT Association and unlock access to hundreds of hours of written and video technical analysis content, including the Journal of Technical Analysis and the Video Archives. Learn more about Membership here.

New Educational Content This Month

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