ARTICLE SYNOPSIS ...A modification of Wilder's directional movement system by Thomas P. Drinka and Steven L. Kille In his New Concepts in Technical Trading Systems (Copyright 1978) J. Welles Wilder Jr. introduced his directional movement system with the following: ""Directional movement is the most fascinating concept I have studied . . . I have probably spent more time studying directional movement than any other concept. Certainly one of my most satisfying achievements was the day I was actually able to reduce this concept to an absolute mathematical equation."" The Directional Movement System The Direction...
ARTICLE SYNOPSIS ...Day Trading With Stochastics by John F. Kepka I have been using the Stochastics oscillator ""K"" and ""%D"" for well over a year (RE: May and Sep 1984 issues of Technical Analysis of Stocks & Commodities magazine). I use Stochastics, (in conjunction with other indicators), with futures intraday data from half-hourly down to 1 minute bar charts. Initially, I tried to use the Stochastics indicator as outlined in Technical Analysis of Stocks & Commodities, but I quickly learned that the ""clearly illustrated"" patterns were largely non-existent in real time intraday trading. By following the gen...
ARTICLE SYNOPSIS ...Commodity Trading Risks by Allen D. Hanson Few traders fully realize the risks that they are taking when they make a commitment in the futures market. They have learned all about charts, cycles, fundamentals, and basic trading theory, but when it comes to understanding the real risk, they simply don't comprehend the hazards involved. This is particularly true regarding the short side of the futures market. While this is often called the most profitable way to be in the market, the upside risk is still unlimited in theory at least, and the downside potential is limited to the full price of the...
ARTICLE SYNOPSIS ...Day Trading The Averages by JOHN F. KEPKA When Stock Index Futures trading with the Value Line contract was initiated at the Kansas City Board of Trade, futures traders suddenly gained the opportunity to trade the entire stock market. Large profitable moves became available, but along with them came the associated high risk, due to the increased daily price swings of the Dow Jones Industrials, S&P 500, NY Composite, Value Line, and the new S&P 100 Index. Trading by using daily High, Low and Closing prices can be very risky in a market where futures contracts can move $2500 or more in one day ...