689
Index
Dummy variables, 659–663
Durbin-Watson statistic, as measure of 
autocorrelation, 652–654
Eckardt, Bill, 578, 584
Edge, having an, 576
Efficient market hypothesis, 428, 431
Elasticity of demand, 361–362
Elementary statistics, 597–618
central limit theorem, 609–612
confidence intervals, 612–614
measures of dispersion, 597–599
normal curve (Z) table, reading, 604–606
population mean, 607
populations and samples, 606
probability distributions, 599–604
sampling distribution, 608–609
standard deviation, 599, 607
t-test, 614–618
E-Mini Dow:
descending triangle, 127
futures, uptrend line, 60
intermarket stock index spreads, 461–470
E-Mini Nasdaq 100:
double bottom, 135, 137
downtrend lines and, 67
flags and pennants, 130
intermarket stock index spreads, 461–470
uptrend lines and, 59, 61
wide-ranging down bar, 123
E-Mini S&P 500:
intermarket stock index spreads, 461–470
market response analysis and, 408, 409
options on futures and, 482, 484
price envelope bands and, 107, 108
seasonal index and, 399
trend lines and, 74
upthrust/downthrust days and, 117
Employment report:
stock index futures response to, 408–409
T -Note futures response to monthly, 404–407
ENPPT . See Expected net profit per trade (ENPPT)
Equal-dollar-spread ratio, 472
Equal-dollar-value spread, 455–460
Equally weighted term, 453
Equilibrium, 363, 365
Equity change, intercurrency spreads and, 472–473
Equity chart, 566
Demand curve, 359, 361
Demand-influencing variables, 368–370
DeMark, Thomas, 66, 69, 199
DeMark sequential, 199–203
Dependent variable, determining, 675–676
Detrended seasonal index, 394
Deviation:
definition of, 623
total, 630–631
Diagonal spread, 542
Diary, maintaining trader’s, 565
Difference indicators:
Close – Close vs. Close – MA, 158
ratio versions, 159
Discipline, 578
Discrete parameter, 293
Discrete variable, 600
Discretionary traders, losing period adjustments, 
562–563
Disloyalty/loyalty, 583–584
Dispersion, measures of, 597–599
Disturbance, definition of, 623
Diversification:
planned trading approach and, 560, 561–562
trend-following systems and,  
256–258
Dividends, 462
Dollar:
equal-dollar-value spread, 455–460
intercurrency spreads and, 471
price, 383
Dollar value, option premiums and,  
477–478
Double top, penetration of, 227–229
curvature, breaking of, 229
Double tops and bottoms:
double bottom, 137–138
double top, 136
triple top, 129
Down run day, 118, 268
Downthrust day, 116
Downtrend channels, 62, 63
Downtrend lines:
definition of, 57
examples of, 59, 61, 65
false breakout signals, 211, 213
Driehaus, Richard, 578, 585
Druckenmiller, Stanley, 581, 584