John Murphy: Reading Market Relationships With Care

A stock index rises 4% while an industry group gains 2%. Both charts point upward, but the group is losing ground relative to the index. John Murphy's work encourages precisely…

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John Boik: Studying Winners Without Rewriting History

A chart stops at 50.00 resistance. The next page shows it at 90.00 six months later, and the earlier base suddenly looks obvious. John Boik's historical studies make large stock…

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Jack Schwager: Read Market Wizards with Better Questions

Two hypothetical traders describe the same 50.00 breakout. One requires a close above it and holds for weeks. The other reacts intraday and is flat by the session's end. Both…

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Howard Marks: Compare Expectations, Price and Risk

A hypothetical company reports earnings of 5.00 per share, up from 4.00. The stock still falls. If the price had reflected expectations of 6.00, stronger reported earnings can coexist with…

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George Soros: Trace Market Feedback Before Taking Risk

A hypothetical company needs 100 million to expand. At a share price of 10.00, raising that amount requires issuing 10 million new shares before expenses. At 20.00, it requires 5…

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David Ryan: Judge the Breakout by What Happens Next

A hypothetical stock closes above a six-week base at 50.40, then returns below its 50.00 ceiling two sessions later. The company still has an appealing growth story. The trade, however,…

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David Harding: Test Trading Ideas Without Hindsight

A hypothetical researcher tests 50 variations of a breakout rule and keeps the best result. The selected chart looks convincing, but it contains a hidden advantage: it won a contest…

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Dan Zanger: Examine Breakout Quality Before the Entry

A hypothetical stock spends six weeks below 80.00, then closes at 80.60 on twice its usual volume. By the time another trader notices, it is at 84.00. The chart still…

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Bruce Kovner: Turn Market Views into Defined Exposure

Three hypothetical positions each carry 500 of planned risk. One depends on a stronger currency, another on lower commodity prices and a third on a related interest-rate move. The account…

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Brian Shannon: Put Timeframes and Anchored VWAP to Work

A hypothetical stock breaks above 42.00 on a fifteen-minute chart while its daily chart sits beneath repeated highs at 42.50. The short-term move is real, but so is the nearby…

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