687
Index
Comfortable choices, trading principles  
and, 584
Comfort zone, trading within, 577
Commissions, 19
Commodities:
bearing little or no relationship to general rule, 
444–445
conforming to inverse of general rule, 444
demand curves and, 361
general spread trade rule and, 443–444
intercommodity spread and, 441–442
nonstorable, 351, 360, 444
perishable, 360, 364
Commodities, 357
Commodity T raders Consumers Report, 434
Commodity trading advisors (CTAs), 23, 578
Comparing indicators, 157–165
difference indicators, 158, 159
indicator correlations, 161–162, 163
popular comparisons, 164
Comparisons:
nominal price levels, 355
one-year, 350
two managers, 320–322
Compounded return, 323
Computer testing of trading systems. See T esting/
optimizing trading systems
Confidence, 579–580
Confidence interval(s), 612–614
for an individual forecast, 627–629
multiple regression model and, 642
Confirmation conditions, 247–250
bull or bear trap, 208
pattern, 249, 250
penetration as, 248
time delay and, 248–249
Confirmation myth, 170
Congestion phases. See Continuation patterns
Consistency, 582
Constant-forward (“perpetual”) series, 281–282
Consumer price index (CPI), 383
Consumption:
definition of, 363
demand and, 357, 363–366
price and, 364
as proxy for inelastic demand, 370
Contingent order, 18
Chart(s):
BLASH approach, 27–28
equity, 566
linked-contract (see Linked-contract charts)
Random Walkers and, 29–34
types of (see Chart types)
Chart analysis, 149–154
confirmation conditions and, 150
false breakout signals, 151, 153
long-term chart, 152, 154
most important rules in, 205–231
spread trades and, 449
trading range and, 150
winning breakout signals, 152, 153
Chart-based objectives, 189
Chart patterns, 109–147
continuation patterns, 123–134
flags and pennants (see Flags and pennants)
head and shoulders, 138–141
one-day patterns (see One-day patterns)
reversal days, 113–116, 147
rounding tops and bottoms, 141–143
run days, 116, 118–119
spikes (see Spikes)
thrust days, 116, 117
T op and bottom formations (see T op and bottom 
formations)
Triangles (see Triangles)
wedge, 146–147
wide-ranging days (see Wide-ranging days)
Chart types, 35–44
bar charts, 35–39
candlestick charts, 43–44
close-only (“line”) charts, 40–42
linked contract series: nearest futures versus 
continuous futures, 39–40
point-and-figure charts, 42–43
CIC (cancel if close) order, 188
Close-only (“line”) charts, 40–42
CME/COMEX contract, 459
Cochrane-Orcutt procedure, 671
Code parameter, 293
Coefficient of determination (r
2), 630–633
Coffee:
intercommodity spreads and, 453–454, 456
seasonal index and, 400
spread trade example, 445–446