Traders' Tips | OCT 1996
Traders' Tips
TRADERS' TIPS METASTOCK FOR WINDOWS The K-ratio model, which is discussed in Editor Thom Hartle's interview with Nelson Freeburg, is a technique used by Freeburg to generate signals in the precious metals market. The K-ratio model is based on the ratio of Barron's Gold Mining Index (GMI) to gold bullion, over which Bollinger bands are plotted to generate adaptive signals that conform to patterns of price behavior in the precious metals market. To recreate Freeburg's precious metals switch fund system in MetaStock for Windows, you must first create the K-ratio as a composite security. To do this, launch The DownLoader from Meta-Stock and choose New and then Composite from The DownLoader's File menu. Make sure the directory specified is the directory where your weekly GMI and Handy & Harman data are located. Name the composite ""K-ratio,"" then choose the Barron's GMI as the primary symbol and Handy & Harman prices as the secondary symbol. Next, choose Divide as the operator and then click the OK button to add the composite. Open the K-ratio chart in MetaStock, plot the Bollinger bands indicator and enter 46 for the number of periods and 2.3 for the standard deviations. Plot Bollinger bands again and enter 4 for the periods and 1.6 for the standard deviations. Your chart should look similar to the one in Figure 1.
by Technical Analysis, Inc.
Technical Analysis of STOCKS & COMMODITIES
The Traders’ Magazine since 1982
has had over 1,226,237 subscribers from 174 different countries.
37,000 Page Traders’ Archive for $89.99
To continue reading, sign-up for trial access to Traders.com and the S&C Archive — 37,000 pages of trading ideas!
After verifying your email address, you will have limited access to the S&C Archive, as well as access to a Digital Edition of S&C, and access to Traders.com Advantage and Working Money for 30 days.
Not a subscriber to Technical Analysis of
STOCKS & COMMODITIES magazine?
Click
here to subscribe, or request
a trial subscription.
Log-in now to view articles from the S&C Archive.
Your Subscriber ID is located at the top of your magazine label, highlighted here in red.
Your last name can be found on the second line, highlighted here in blue.
*If you have a company name on the label, that can also be used. It will appear below your name on the label.
If you do not have a Subscriber ID on your label, you can find it on your statement or renewal form.
For help locating your Subscriber ID number, please call us at 1-800-832-4642 or send an email to Survey@Traders.com. If sending an email, please include your name and mailing address.