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DownloadSIDEBAR Performance Summary by Technical Analysis, Inc.
ARTICLE SYNOPSIS...Performance Summary by Technical Analysis, Inc. Building on a February 1990 article by Jay Kaeppel, ""Formula Research"" report editor Nelson Freeburg and engineer/investor Charles Skelley introduce a stock market timing model using the Fed discount rat
SIDEBAR: 2/20-Day EMA Breakout System by Jeremy G. Konstenius
ARTICLE SYNOPSIS...Sidebar: 2/20-Day EMA Breakout System Defined Most trading systems fall into two categories. One, the most popular, is the trend-following method, where the signals are oriented toward putting the trader on board long-term trends. The profits acquired d
SIDEBAR: 20 QUESTIONS ABOUT GAMBLING (TRADING) BEHAVIOR by Technical Analysis, Inc.
ARTICLE SYNOPSIS...20 QUESTIONS ABOUT GAMBLING (TRADING) BEHAVIOR by Technical Analysis, Inc. In 1980, Gamblers Anonymous in Los Angeles published a list of 20 questions about gambling behavior. I took the liberty of inserting the word trading to help you translate your a
SIDEBAR: A COMPOSITE INDICATOR by Technical Analysis, Inc.
ARTICLE SYNOPSIS...A COMPOSITE INDICATOR by Technical Analysis, Inc. Interview subject Tim Hayes suggests a modified version of the composite indicator using just three indicators. You refer to your composite indicator that is made up of subgroups. Can you tell our reade
SIDEBAR: A five-day step-weighted moving average
ARTICLE SYNOPSIS...Examples of calculations for five-day weighted moving average.
SIDEBAR: A tale of two frequencies
ARTICLE SYNOPSIS...SIDEBAR: A tale of two frequencies Using the prices in Article Figure 2 as examples of this technique, we'd place the first price, 233.76, in the first histogram; the second price, 234.91, in the second histogram; and the third price, 232.56, in the fir
SIDEBAR: ADD-ONS VS. PYRAMIDING
ARTICLE SYNOPSIS...ADD-ONS VS. PYRAMIDING A paragraph explaining the difference between add-ons and pyramiding.
SIDEBAR: AN MACD VARIATION by Technical Analysis, Inc.
ARTICLE SYNOPSIS...AN MACD VARIATION by Technical Analysis, Inc. The method used is a variation of the original moving average convergence/divergence (MACD) indicator. Longer-term exponentially smoothed moving averages (EMA) have been used in the calculation of the MACD.
SIDEBAR: ASSESSING A SINGLE EQUITY INVESTMENT
ARTICLE SYNOPSIS...ASSESSING A SINGLE EQUITY INVESTMENT The total return on an equity investment reflects both capital gains and periodic income such as dividend payments. Specifically:
SIDEBAR: Adaptive Moving Average by Bruce Faber
ARTICLE SYNOPSIS...V.13:06: (267): SIDEBAR: Adaptive Moving Average by Bruce Faber Perry Kaufman points out in Smarter Trading that if you could achieve only one goal in analyzing the price of investments, it should be to identify the direction, or trend, of the market in
SIDEBAR: Alpha-beta, Version II
ARTICLE SYNOPSIS...Alpha-beta, Version II This generic QuickBASIC routine for computing alpha-beta trend channels and trading filters assumes that you already have a means of inputing historical time series data into an appropriately dimensioned array X(M,N), where M >
SIDEBAR: Analysis and moving averages
ARTICLE SYNOPSIS...Analysis and moving averages Definition of terms used by the author when discussing indicators in the article ""Volume percentage ratio"". In interpreting any charted indicator, it is only the relative position of the plotted line that is important. ..
SIDEBAR: Assessing volatility's predictive value
ARTICLE SYNOPSIS...SIDEBAR: Assessing volatility's predictive value To assess the predictive value of volatility, I reviewed 1,443 days of price action on the Standard & Poor's 100 stock index, starting on May 15, 1984. Volatility was measured by the standard deviation of
SIDEBAR: Author's Biographies
ARTICLE SYNOPSIS...Authors' Biographies Tucker J. Emmett, Vice President Trading and Research Anspacher & Associates, Inc. Tucker Emmett is a cum laude graduate from Harvard University where he studied mathematics and economics. In 1970 he was awarded the Juris Doctor de
SIDEBAR: Averaging Lag and the EMA Constant
ARTICLE SYNOPSIS...AVERAGING LAG AND THE EMA CONSTANT The equation to compute an exponential moving average (EMA) is: ... Picture a function that increases by 1 for each new day. Then, on the generalized i th day the function will have a value of I . Assume the EMA lag
SIDEBAR: BASIC and TradeStation Code for Phase Calculation
ARTICLE SYNOPSIS...BASIC CODE FOR PHASE CALCULATION by John F. Ehlers This BASIC code finds the real part of the phasor (the horizontal component) and the imaginary part of the phasor (the vertical component) by summing the product of the price and the two sinusoids over
SIDEBAR: BIOGRAPHICAL SKETCH
ARTICLE SYNOPSIS...BIOGRAPHICAL SKETCH Curtis Arnold holds a Bachelor's Degree in Computer Science and for the past two years has been directing the technical research efforts at Weiss Research, an economic research firm and publisher of two newsletters, MONEY FORECASTS a
SIDEBAR: BREAKOUT RELIABILITY
ARTICLE SYNOPSIS...BREAKOUT RELIABILITY The reliability of a breakout from a trading range as a signal for an impending trend is significantly improved if prices are still beyond the range after a number of days (e.g., 5) . ... --Jack D. Schwager
SIDEBAR: BUILDING A RANDOM WALK INDEX by Technical Analysis, Inc.
ARTICLE SYNOPSIS...SIDEBAR: BUILDING A RANDOM WALK INDEX by Technical Analysis, Inc. Instructions on creating a random walk index.
SIDEBAR: BUILDING THE VARIABLE-LENGTH MOVING AVERAGE
ARTICLE SYNOPSIS...BUILDING THE VARIABLE-LENGTH MOVING AVERAGE Seven steps to constructing a variable-length moving average, page 223.
SIDEBAR: BUYS AND SELLS
ARTICLE SYNOPSIS...BUYS AND SELLS In Figure 3a, the greatest buying opportunity occurs when price action becomes strong at a time that many are doubters. Depicted are indicators of both price strength and investor sentiment. Relative and absolute strength are indicators o
SIDEBAR: Behold! Functions
SIDEBAR: Bezier equations
ARTICLE SYNOPSIS...SIDEBAR: Bezier equations The Bezier method is based on three equations which are provided in this sidebar.
SIDEBAR: Building swing charts by Technical Analysis, Inc.
ARTICLE SYNOPSIS...SIDEBAR: Building swing charts by Technical Analysis, Inc. How to build a swing chart, with example.
SIDEBAR: Bull or bear market?
SIDEBAR: CALCULATING A RATE OF CHANGE OSCILLATOR
ARTICLE SYNOPSIS...CALCULATING A RATE OF CHANGE OSCILLATOR A rate of change oscillator (Roc) is calculated by dividing the price in the current time period by the price n periods ago. For example, a 10-day rate of change would be today's price divided by the price 10days
SIDEBAR: CALCULATING AN 11-PERIOD CCI by Thom Hartle, Editor
ARTICLE SYNOPSIS...CALCULATING AN 11-PERIOD CCI by Thom Hartle, Editor The commodity channel index (CCI) can be calculated using any lookback period chosen by the trader. The Excel spreadsheet shown in sidebar Figure 1 is an 1 l-period CCI for the Dow Jones Industrial Ave
SIDEBAR: CALCULATING BOLLINGER BANDS
ARTICLE SYNOPSIS...CALCULATING BOLLINGER BANDS An Excel spreadsheet is used to calculate Bollinger Bands for the DJIA. The actual formula for each cell is shown at the bottom of the column; the formula presented is specific for the location of that cell.
SIDEBAR: CALCULATING MVI
ARTICLE SYNOPSIS...CALCULATING MVI The market volume impact (MVI) uses the daily net change of the Dow Jones Industrial Average and the total volume for the New York Stock Exchange. These two values are multiplied together to calculate MVI. The next step is to smooth MVI
SIDEBAR: CALCULATING PERR
ARTICLE SYNOPSIS...CALCULATING PERR Price/earnings ratio reliability (PERR) is simply 100 ´ the R-square that measures the correlation between the logarithms of price and earnings. PERR is most easily visualized through scatter charts: Article Figure 2 shows Merck's high
SIDEBAR: CALCULATING PREMIUM FAIR VALUE
ARTICLE SYNOPSIS...SIDEBAR: CALCULATING PREMIUM FAIR VALUE A risk-averse investor wants to invest in the stock market. How does he do it without risking loss? He can borrow funds, buy a portfolio of stocks equivalent to the S&P 500 index at the price of S and simultaneous
SIDEBAR: CALCULATING RELATIVE STRENGTH
ARTICLE SYNOPSIS...CALCULATING RELATIVE STRENGTH Calculating relative strength performance in a spreadsheet is easy. Ours example, sidebar Figure 1, uses the closing price of Pepsico (column A) versus the closing price for the S&P 500 (column B). Any two items can be comp
SIDEBAR: CALCULATING RSI
ARTICLE SYNOPSIS...CALCULATING RSI Calculate RSI by summing the up closes during the first 14 days and dividing by 14. This is the up average (Column E). Then sum the down closes during the first 14 days and divide by 14. This is the down average (Column F). All values ar
SIDEBAR: CALCULATING STOCHASTICS by Technical Analysis, Inc.
ARTICLE SYNOPSIS...CALCULATING STOCHASTICS by Technical Analysis, Inc. Calculating %K and %D, with formulas for a spreadsheet.
SIDEBAR: CALCULATING TEMA1 AND DEMA1 by Technical Analysis, Inc.
ARTICLE SYNOPSIS...CALCULATING TEMA1 AND DEMA1 by Technical Analysis, Inc. These Excel spreadsheets (sidebar Figures 1 and 2) present the calculation of TEMA1 (column H) and DEMA1 (column N). TEMA1 uses a multiple linear regression over a 52-week period of closing prices
SIDEBAR: CALCULATING THE DEV- STOP by Technical Analysis, Inc.
ARTICLE SYNOPSIS...CALCULATING THE DEV- STOP by Technical Analysis, Inc. Calculating the DEV-stop.
SIDEBAR: CALCULATING THE RSI by Technical Analysis, Inc.
ARTICLE SYNOPSIS...CALCULATING THE RSI by Technical Anlaysis, Inc. The RSI classic The first step in calculating a 14-period relative strength index (RSI) in a Microsoft Excel spreadsheet is determining the up momentum and the down momentum. This is performed in columns
SIDEBAR: CALCULATING THE THRUST OSCILLATOR WITH THE TECHNICIAN
ARTICLE SYNOPSIS...CALCULATING THE THRUST OSCILLATOR WITH THE TECHNICIAN Plotting the thrust oscillator (TO) requires two user formulas. The first one calculates the daily value; this formula in The Technician's language is: ...
SIDEBAR: CALCULATING TSI
ARTICLE SYNOPSIS...CALCULATING TSI Calculating the true strength index requires an introduction to exponentially smoothed moving averages (EMA): Exponential Moving Average- The EMA for day D is calculated as: EMAD = aPRD + (1-a)EMAD-1 where PR is the price on day D and a
SIDEBAR: CALCULATING VIDYA by Technical Analysis, Inc.
ARTICLE SYNOPSIS...CALCULATING VIDYA by Technical Analysis, Inc. The variable index dynamic moving average (VIDYA) builds on the concept of the exponential moving average (EMA). While the EMA uses a constant (alpha) to smooth today's data, the VIDYA adjusts the alpha acco
SIDEBAR: CALCULATING WEIGHTED MOVING AVERAGES
ARTICLE SYNOPSIS...CALCULATING WEIGHTED MOVING AVERAGES The first step for calculating a weighted moving average (WMA) is to decide the lookback period (n) and the alpha (a). For our example in sidebar Figure 1, we are using n = 8 and a = 0.6 to calculate the optimized we
SIDEBAR: CANSLIM.
ARTICLE SYNOPSIS...CANSLIM CANSLIM is the acronym for the seven criteria that William O'Neil determined were the most important in identifying winning stocks. These are the key characteristics that were present just prior to many of history's best-performing stocks: C Cu
SIDEBAR: COIN FLIPPING MATH
ARTICLE SYNOPSIS...COIN FLIPPING MATH To find the optimal bet size for a coin that heads wins two times the fraction bet, and tails loses the fraction bet of the running total stake on tails: ...
SIDEBAR: COLE'S METHOD
ARTICLE SYNOPSIS...SIDEBAR: COLE'S METHOD Roger Cole developed a technique to determine when insiders are alerting each other about which stock will move and to what price. The technique involves categorizing trading days by price patterns and matching these patterns with
SIDEBAR: COMPLEX NUMBERS
SIDEBAR: COMPUTER TRIVIA
ARTICLE SYNOPSIS...COMPUTER TRIVIA *The Analytical Engine (1835-1869) Because of lack of government support, English mathematician Charles Babbage (1792-1871) never got to build his invention, the design of which presaged the modern computer. Had it seen the light of day
SIDEBAR: CONTRACT SPECS
ARTICLE SYNOPSIS...CONTRACT SPECS Eurodollar time deposits and one-month LIBOR futures.
SIDEBAR: CONVERTING ASCII TO APEX NDX FILE FORMATS
ARTICLE SYNOPSIS...CONVERTING ASCII TO APEX NDX FILE FORMATS Steps to convert ASCII to APEX NDX file formats, pages 56-57.
SIDEBAR: CUSTOM METASTOCK FORMULAS Thom Hartle, Editor
ARTICLE SYNOPSIS...CUSTOM METASTOCK FORMULAS Three MetaStock formulas for volume indicator, line variation, and momentum.
SIDEBAR: CYCLES, POWER AND PHASE by Technical Analysis, Inc.
ARTICLE SYNOPSIS...CYCLES, POWER AND PHASE by Technical Analysis, Inc. Cycle length is the term most traders use when they refer to cycles. For example, two cycles are plotted, each with two different cycle lengths in sidebar Figure 1. The first cycle has a length of 64 p
SIDEBAR: Calculating Bollinger Bands by Technical Analysis, Inc.
ARTICLE SYNOPSIS...Calculating Bollinger Bands by Technical Analysis, Inc. Bollinger band formulas for an Excel spreadsheet.
SIDEBAR: Calculating DEMA2 AND THE MACD by Technical Analysis, Inc.
ARTICLE SYNOPSIS...Calculating DEMA2 AND THE MACD by Technical Analysis, Inc. This Excel spreadsheet (sidebar Figure 3) presents the DEMA2 along with the MACD using DEMA2 as the smoothing filters. Column B (labeled X value) is the time t. This column could be elsewhere, a
SIDEBAR: Calculating Historical Volatility - Technical Analysis, Inc.
ARTICLE SYNOPSIS...CALCULATING HISTORICAL VOLATILITY - Technical Analysis, Inc. Historical volatility is the annualized standard deviation of the one-day price changes of the security or futures contract. To perform this calculation in a Microsoft Excel spreadsheet (as ca
SIDEBAR: Calculating Momentum
ARTICLE SYNOPSIS...CALCULATING MOMENTUM Momentum is traditionally calculated as the difference between the price today and the price n days ago. The method presented here substitutes for the price n days ago an average of the previous three period's high, low and closing
SIDEBAR: Calculating The Relative Strength-MACD Crossover
ARTICLE SYNOPSIS...SIDEBAR: Calculating The Relative Strength-MACD Crossover The relative strength ratio-MACD crossover indicator in this example uses the daily closing price of Boeing (BA) compared with the daily closing price of the S&P 500 index. The first day's period
SIDEBAR: Calculating TrSI
ARTICLE SYNOPSIS...CALCULATING TrSI Calculating the true strength index requires an introduction to exponentially smoothed moving averages (EMA): Exponential Moving Average--The EMA for day D is calculated as: EMAD = aPRD + (1-a)EMAD-1 where PR is the price on day D and a
SIDEBAR: Calculating an 11-period CCI
ARTICLE SYNOPSIS...CALCULATING AN 11-PERIOD CCI The commodity channel index (CCI) can be calculated using any lookback period chosen by the trader. The Excel spreadsheet shown in sidebar Figure 1 is an 11-period CCI for the Dow Jones Industrial Average. The first step is
SIDEBAR: Calculating an 11-period CCI
ARTICLE SYNOPSIS...CALCULATING AN 11-PERIOD CCI The commodity channel index (CCI) can be calculated using any lookback period chosen by the trader. The Excel spreadsheet shown in sidebar Figure 1 is an 11-period CCI for the Dow Jones Industrial Average. The first step is
SIDEBAR: Calculating an 11-period CCI by Thom Hartle
ARTICLE SYNOPSIS...Calculating an 11-period CCI by Thom Hartle Combining two classic indicators, the commodity channel index (CCI) and Bollinger bands, can be a potent timing tool for options trading. This author was inspired by John Bollinger's article ""Bollinger Bands"
SIDEBAR: Calculating an 11-period CCI by Thom Hartle
ARTICLE SYNOPSIS...Calculating an 11-period CCI by Thom Hartle The commodity channel index (CCI) can be calculated using any lookback period chosen by the trader. The Excel spreadsheet shown in sidebar Figure 1 is an 1 l-period CCI for the Dow Jones Industrial Average. Th
SIDEBAR: Calculating leverage and simulated trading
ARTICLE SYNOPSIS...Sidebar: Calculating leverage and simulated trading The following explanation uses a Microsoft Excel 4.0 spreadsheet calculating final equity versus leverage and simulated trading. Referring to Figure 1 from the article, the values placed in the spreads
SIDEBAR: Calculating noise level
ARTICLE SYNOPSIS...CALCULATING NOISE LEVEL Some of the other methods I use to calculate noise level (NL) are: ... where P is the averaging period for the daily range; the article's Figure 3 is a plot of ADR j . Another method uses the average daily range and three stand
SIDEBAR: Calculating probability
ARTICLE SYNOPSIS...Sidebar: Calculating probability Using the data from the example, we have r = 0.00093553 and sr = 0.011258649. Suppose we wish to see the probability of being at a loss for L = 4 after 36 trades?
SIDEBAR: Calculating the Bandpass Indicator
ARTICLE SYNOPSIS...SIDEBAR: Calculating the Bandpass Indicator The bandpass indicator is an oscillator-type indicator using two filters. This sidebar give the formulas for using this indicator as described in John Ehler's article, in Excel. In calculating the bandpass i
SIDEBAR: Calculating the Coppock Curve in SuperCharts
ARTICLE SYNOPSIS...SIDEBAR: Calculating the Coppock Curve in SuperCharts The Coppock curve in Figure 1 of the article ""The Coppock Curve"" by Elliot Middleton, labeled ""CoppockAnnual"" takes the essence of Coppock's original formulation and puts it in modern mathematics
SIDEBAR: Calculating the KST by Technical Analysis, Inc.
ARTICLE SYNOPSIS...Calculating the KST by Techncial Analysis, Inc. KST formulas for short, intermediate, and long term daily or weekly data.
SIDEBAR: Calculating the McClellan Indicators - Technical Analysis, Inc.
ARTICLE SYNOPSIS...CALCULATING THE McCLELLAN INDICATORS - Technical Anlaysis, Inc. The McClellan oscillator can be used for measuring changes in momentum of price, volume, advances and declines. The most common use is for measuring the momentum of the New York Stock Excha
SIDEBAR: Calculating the RSI
ARTICLE SYNOPSIS...SIDEBAR: CALCULATING THE RSI The relative strength index (RSI) is a momentum indicator that uses the net difference of closing prices for up days and down days. The following are steps by which to build a 14-period RSI, using as an example the price dat
SIDEBAR: Calculating the mean, standard deviation and cumulative
ARTICLE SYNOPSIS...Sidebar: Calculating the mean, standard deviation and cumulative probability density functions. Calculating the mean of a series of numbers is the same as calculating the average of a series of numbers. First, sum the numbers together and divide by the
SIDEBAR: Calculating the standard deviation of closing prices
SIDEBAR: Calculating the standard deviation of the percentage change in closing prices
ARTICLE SYNOPSIS...SIDEBAR: Calculating the standard deviation of the percentage change in closing prices Calculating the ratio of two sequential prices in Lotus is straightforward. The natural log function is preprogrammed as @In(). The standard deviation of the logs can
SIDEBAR: Capturing the Edge - Technical Analysis, Inc.
ARTICLE SYNOPSIS...Koppel and Abell's critical factors in capturing an edge in trading. - Technical Analysis, Inc.
SIDEBAR: Chaikin's Money Flow Indicator
ARTICLE SYNOPSIS...SIDEBAR: Chaikin's Money Flow Indicator This sidebar providesChaikin's basic money flow formula and sample code for MetaStock and TradeStation languages. The first step to calculating the 21-day money flow indicator is to calculate the raw one-day accum
SIDEBAR: Chaos on CompuTrac
ARTICLE SYNOPSIS...Chaos on CompuTrac A version of the chaos equation systems, programmed as a user study in CompuTrac is below.
SIDEBAR: Coefficient of Correlation
ARTICLE SYNOPSIS...Coefficient of Correlation Correlation is a measure of the degree of relationship between two series. When odd lot shorts are rising, is the Dow usually rising? When odd lot shorts are declining, is the Dow usually declining? Or is the reverse usually t
SIDEBAR: Commitment of Traders by Thom Hartle, Editor
ARTICLE SYNOPSIS...An explanation of Figure 2 from the article ""Analysis of a Winning Trade.""
SIDEBAR: Comparison between actual price changes and normal distribution.
ARTICLE SYNOPSIS...COMPARISON BETWEEN ACTUAL PRICE CHANGES AND NORMAL DISTRIBUTION The average weekly natural log changes in the Standard & Poor's 500 index from April 1986 through December 1995 was measured and the standard deviation of these changes calculated. The resu
SIDEBAR: Complete computer trading program
ARTICLE SYNOPSIS...SIDEBAR: Complete computer trading program 10 REM COMPLETE TECHNICAL ANALYSIS BY JOHN F. EHLERS MODIFIED BY JACK K. HUTSON
SIDEBAR: Complete computer trading program by Technical Analysis, Inc.
ARTICLE SYNOPSIS...SIDEBAR: Complete computer trading program by Technical Analysis, Inc. 10 REM COMPLETE TECHNICAL ANALYSIS BY JOHN F. EHLERS MODIFIED BY JACK K. HUTSON
SIDEBAR: Contraction/Expansion
SIDEBAR: Contraction/Expansion & ORB/Trend Day
ARTICLE SYNOPSIS...SIDEBAR: Contraction/Expansion & ORB/Trend Day Definitions along with illustrations of Contraction/Expansion, opening range breakout and trend day concepts.
SIDEBAR: Converting Absolute Data to Change in Log of Price
ARTICLE SYNOPSIS...CONVERTING ABSOLUTE DATA TO CHANGE IN LOG OF PRICE Sidebar Figure 1 is a sample of weekly interest rate and S&P 500 index data and the formula used to convert absolute interest rate data to changes in logs. Formulas first calculate the log of price and
SIDEBAR: Correlating made easy
ARTICLE SYNOPSIS...SIDEBAR: Correlating made easy To find the correlation between two technical indicators, first calculate the positive or negative change of the indicator. If you were testing with no ""lagging,"" you'd then compare the first indicator's first change wit
SIDEBAR: Creating Linked Histograms
ARTICLE SYNOPSIS...Creating Linked Histograms Alphabetic characters were used to build the histograms in this article because it is a familiar scheme to users of CBOT'S Market Profile. However, you may wish to use arbitrary characters, with each character defining a time
SIDEBAR: Cups and caps by Thom Hartle
ARTICLE SYNOPSIS...V.13:07 (311): SIDEBAR: Cups and caps by Thom Hartle Cup and cap patterns are technical formations used to signal short-term trades. The cup pattern is the basis for a sell signal when the instrument being traded is in an uptrend, while if the instrumen
SIDEBAR: Cycle plot program listing
ARTICLE SYNOPSIS...Cycle plot program listing 1 REM ""Cycle Plot Program"" 2 REM FOR APPLE ] [ COMPUTER. 3 REM BY JOHN F. EHLERS 4 REM COPYRIGHT (C) 1985 BY TECHNICAL ANALYSIS, INC. 10 TEXT : HOME
SIDEBAR: DEMA1 EXCEL SPREADSHEET by Technical Analysis, Inc.
ARTICLE SYNOPSIS...DEMA1 EXCEL SPREADSHEET by Technical Analysis This Excel spreadsheet (Figure 4) presents the calculation of the DEMA1 (column G) of the weekly closing price of the NASDAQ (column D). We will be using the regression coefficients for the initialization of
SIDEBAR: DERIVATION OF EQUATIONS FOR WAMI SPECTRUM by Technical Analysis, Inc.
ARTICLE SYNOPSIS...DERIVATION OF EQUATIONS FOR WAMI SPECTRUM by Technical Analysis, Inc. The equations here have been included for researchers who may want to study and modify WAMI. Simply, the WAMI power and phase spectrum is obtained by using Z transform theory to obtai
SIDEBAR: DERIVATION OF THE RULE OF 72
ARTICLE SYNOPSIS...DERIVATION OF THE RULE OF 72 The mathematics behind the rule of 72, stating that if an amount is invested at a compound interest rate until it doubles in value, then the product of the number of years (or periods) and the interest rate is approximately
SIDEBAR: DESCRIBING A SPREADSHEET PROGRAM
ARTICLE SYNOPSIS...DESCRIBING A SPREADSHEET PROGRAM
SIDEBAR: DETERMINING GROWTH RATE
ARTICLE SYNOPSIS...DETERMINING GROWTH RATE One method for determining a growth rate is to fit a regression line using the least-squares method to the data. Figure 1 is a graph of the annual dividends for Merck & Company with a regression line drawn. This straight line is c
SIDEBAR: DONCHIAN'S TRADING GUIDES
ARTICLE SYNOPSIS...DONCHIAN'S TRADING GUIDES Richard D. Donchian revised his 1934 guidelines for securities trading in 1974. His two sets of basic rules for general and technical trading have stood the test of time.
SIDEBAR: DRAWING CANDLESTICKS
ARTICLE SYNOPSIS...DRAWING CANDLESTICKS If drawn by hand, Japanese candlestick charting is time consuming but simple. First, collect the high, low, open and close price for the period under consideration (five minutes, hourly, daily, weekly or whatever you may choose). Se
SIDEBAR: Defensive Moneymaker
ARTICLE SYNOPSIS...DEFENSIVE MONEYMAKER Quote from William J. O'Neil, author of How to Make Money in Stocks
SIDEBAR: Defining parameters
ARTICLE SYNOPSIS...DEFINING PARAMETERS TradeStation's EasyLanguage has a number of restrictions on the use of variable names. Variable names cannot exceed 20 characters in length, cannot use spaces and cannot use special characters (such as the characters above the number
SIDEBAR: Dema1 Derivation by Technical Analysis, Inc.
ARTICLE SYNOPSIS...Dema1 Derivation by Technical Analysis, Inc. Here is a nonrigorous derivation of the one-parameter double exponential moving average (DEMA1), which assumes there is no noise and that the MAs have reached a steady-state value (i > w). The observed dat
SIDEBAR: Details of the Study.
ARTICLE SYNOPSIS...SIDEBAR: Details of the Study. The trade timing, transaction costs and statistical tests used in the study.
SIDEBAR: Discipline and Flexibility
ARTICLE SYNOPSIS...DISCIPLINE AND FLEXIBILITY The novice trader will ignore a failed signal, riding his position into a large loss while hoping for the best. The more experienced trader, having learned the importance of money management, will exit quickly once it is appar
SIDEBAR: EASE OF MOVEMENT
ARTICLE SYNOPSIS...EASE OF MOVEMENT This indicator is an oscillator designed to reveal the direction that a stock or commodity is moving with the least amount of resistance. First, calculate the midpoint movement (MPM):
SIDEBAR: ELLIOTT WAVE PROPORTIONS
ARTICLE SYNOPSIS...SIDEBAR: ELLIOTT WAVE PROPORTIONS According to Elliott wave theory, the first, third and fifth waves are proportional by the 1 to 1.618 to 1 ratio, known as the Fibonacci ratio. Figure 1 illustrates the basic five-wave sequence of the Elliott wave, and
SIDEBAR: EQUIVOLUME CHARTING
ARTICLE SYNOPSIS...EQUIVOLUME CHARTING Equivolume charting is a method of charting developed by Richard Arms based on the principle that the market is a function of volume, not time, and so gives more emphasis to volume than traditional bar charts. Equivolume charts put v
SIDEBAR: EXCEL FAST FOURIER TRANSFORMS, DECEMBER COPPER DATA by Technical Analysis, Inc.
ARTICLE SYNOPSIS...EXCEL FAST FOURIER TRANSFORMS, DECEMBER COPPER DATA by Technical Analysis, Inc. Here is the layout for preprocessing data and running a fast Fourier transform (FFT) in Excel. Column A of the spreadsheet (sidebar Figure 8) is the date column. Our first d
SIDEBAR: EXCEL FUNCTIONS
SIDEBAR: EXCEL SPREADSHEET Thom Hartle, Editor
ARTICLE SYNOPSIS...EXCEL SPREADSHEET --Thom Hartle, Editor The Excel 3.0 spreadsheet presented here in sidebar Figure 1 shows the indicators described in ""Volume variations."" The daily high, low and close of the Standard & Poor's 500 index along with the daily total NYSE
SIDEBAR: EXPANDING THE AVERAGE
ARTICLE SYNOPSIS...EXPANDING THE AVERAGE How to modify the start of an exponential moving average.
SIDEBAR: EXPERT SYSTEMS, FUZZY OR CRISP
ARTICLE SYNOPSIS...EXPERT SYSTEMS, FUZZY OR CRISP Expert systems in the form of if?then rules, page 165.
SIDEBAR: EXPERTS AND EGOS
SIDEBAR: EXPLAINING r
ARTICLE SYNOPSIS...EXPLAINING r Correlation analysis to measure the degree of relationship between two variables. Gives a spreadsheet example and formulas.
SIDEBAR: EXPONENTIAL MOVING AVERAGES
ARTICLE SYNOPSIS...EXPONENTIAL MOVING AVERAGES Defining exponentially smoothed moving averages -- which, for most traders, would be a series of closing prices -- is simply another form of a moving average. An exponentially smoothed moving average utilizes a smoothing consta
SIDEBAR: EXPONENTIAL MOVING AVERAGES
ARTICLE SYNOPSIS...EXPONENTIAL MOVING AVERAGES Defining exponentially smoothed moving averages -- which, for most traders, would be a series of closing prices -- is simply another form of a moving average. ...
SIDEBAR: EXPONENTIAL MOVING AVERAGES
ARTICLE SYNOPSIS...EXPONENTIAL MOVING AVERAGES Defining exponentially smoothed moving averages -- which, for most traders, would be a series of closing prices -- is simply another form of a moving average.
SIDEBAR: Evaluating Your Computerİs Data Capacity
SIDEBAR: Expectations and Spread Positions
ARTICLE SYNOPSIS...EXPECTATIONS AND SPREAD POSITIONS For bull market forecasts, graphs in the top half of the article's Figure 3 portray two spread positions. In these positions, the leftmost line on each graph depicts maximum loss as the premium paid for the call debit s
SIDEBAR: FIGURING THE NUMBER OF PERIODS IN AN ANNUITY
ARTICLE SYNOPSIS...FIGURING THE NUMBER OF PERIODS IN AN ANNUITY Often, investors anticipate a need for a given amount of funds at some future date. One way to guarantee that such funds will be available is to put aside a series of payments at predetermined intervals, know
SIDEBAR: FLDJ: ANALYSIS OF DAILY WSJ STATISTICS
ARTICLE SYNOPSIS...FLDJ: ANALYSIS OF DAILY WSJ STATISTICS Data available from the Wall St. Journal that can be used in a fuzzy logic system, page 164.
SIDEBAR: FORMULAS
ARTICLE SYNOPSIS...FORMULAS ""K regular ""= ... To produce the slow version of the stochastic the formula for the ""%D"" is modified as follows:
SIDEBAR: FORMULAS by Technical Analysis, Inc.
ARTICLE SYNOPSIS...FORMULAS by Technical Analysis, Inc. COMPUTRAC TRADE PLAN Thomas Aspray supplied the following trade plan for the MACD histogram and MACD momentum oscillator. His current trade plan no longer includes the three-unit smoothing of the MACD momentum oscil
SIDEBAR: Filtering in Excel by Scott Barrie
ARTICLE SYNOPSIS...V.13:07 (286): SIDEBAR: Filtering in Excel by Scott Barrie Here are the Excel 4.0 formulas to perform individual market filters. For our example, we'll use the December 1994 Treasury bond futures market (sidebar Figures 1 and 2) with a 1% filter. The sp
SIDEBAR: Formulas
ARTICLE SYNOPSIS...Put/call ratio, Hines ratio, Bollinger, put/volume indicator, and technician's oscillator.
SIDEBAR: Four steps to calculate CCI
ARTICLE SYNOPSIS...The Channel Index can help both stock and commodity traders detect when ""real world conditions,"" such as climate, are affecting seasonal price patterns. The author explains how to calculate as well as use the CCI. By Donald R. Lambert Four steps to ca
SIDEBAR: Four-year cycles on a mathematical basis
ARTICLE SYNOPSIS...SIDEBAR: Four-year cycles on a mathematical basis The mathematical basis for the four-year cycle is found in many types of analysis. A good demonstration is the standard deviation of a market average as a risk parameter.
SIDEBAR: Fourier Analysis
ARTICLE SYNOPSIS...SIDEBAR: Fourier Analysis Market data is considered to be a complex wave form composed of cycles with different lengths or frequencies. When you look at a price chart, you can see that there are upward trends with countertrend declines or downward trend
SIDEBAR: GANN'S 28 TRADING RULES
ARTICLE SYNOPSIS...GANN'S 28 TRADING RULES 1. Never risk more than 10% of your trading capital in a single trade. 2. Always use stop-loss orders. 3. Never overtrade.
SIDEBAR: GLOSSARY
ARTICLE SYNOPSIS...GLOSSARY ROUNDING ERROR -- When numbers are rounded many times. errors creep into the result. For example, 2.4+8.4=5.8 which rounds to 6, but if we round 2.4 and 3.4 we get 2+3=5. TREND--A straight line pattern to prices. This may be clouded by price var
SIDEBAR: HLC INDEX
ARTICLE SYNOPSIS...HLC INDEX A version of the double smoothed stochastic index factoring in the e high, low and close.
SIDEBAR: Hannula Scale
SIDEBAR: Historical Market Turning Points
ARTICLE SYNOPSIS...HISTORICAL MARKET TURNING POINTS The Kinsman smoothed A-D has caught major trend changes in the market well over the past two decades. The most recent of these: 1987 1 Selecting norms for 1987 was one of the more complicated exercises in using this os
SIDEBAR: Holt-Winter Channel Calculation
ARTICLE SYNOPSIS...Holt-Winter Channel Calculation The Holt-Winter formula estimates the three quadratic coefficients recursively as follows: Ft+1 = (l - a) (Ft + Vt + 0.5 At) + aCt+1 Vt+1 = (l - b) (Vt + At) + b(Ft+1 - Ft) At+1 = (l - c) At + c (Vt+1 - Vt) where Ct =
SIDEBAR: Hot list
ARTICLE SYNOPSIS...Sidebar: Hot list A list of 20-odd investor sites on the internet.
SIDEBAR: How digital filters work by Technical Analysis, Inc.
ARTICLE SYNOPSIS...SIDEBAR: How digital filters work by Technical Analysis, Inc. Filters are tools for ""tuning into"" parts of the total energy contained in an information stream. For example, all of the information transmitted on the AM radio stations near you arrives a
SIDEBAR: How moving averages are computed
ARTICLE SYNOPSIS...SIDEBAR: How moving averages are computed Moving average are usually specified by two parameters. The first is the length of the moving average and is generally expressed in the same periodicity as the data. For example, if we have the daily price of th
SIDEBAR: IMPLEMENTING THE SYSTEM
ARTICLE SYNOPSIS...SIDEBAR: IMPLEMENTING THE SYSTEM The system described is complex, and therefore we are implementing it gradually, starting with a small prototype that automates only a small fraction of the total system. The expert system described here programs only so
SIDEBAR: IMPLIED RISK
ARTICLE SYNOPSIS...IMPLIED RISK This version of the implied risk formula differs slightly from the original DYR version given in the June 1993 interview with Jim Yates, because this version uses average implied volatility of all of the options multiplied by the total opti
SIDEBAR: INDICATOR PHASE by Technical Analysis, Inc.
ARTICLE SYNOPSIS...INDICATOR PHASE by Technical Analysis, Inc. The phase of an indicator is defined as the distance of an indicator above or below a median value. For indicators that are plotted together with the price such as moving averages and on-balance volume, the ph
SIDEBAR: INDICATOR TRIX
ARTICLE SYNOPSIS...INDICATOR TRIX The indicator TRIX is an oscillator designed to indicate changes in momentum and a filter of random market noise. The process is the triple exponential smoothing of the log of price. The indicator is the one-day difference of the smoothed
SIDEBAR: INDICATORS GALORE
ARTICLE SYNOPSIS...INDICATORS GALORE --Thom Hartle, Editor Listing of indicators used in a neural network, page 138.
SIDEBAR: IS IT TIME TO GO MAC?
ARTICLE SYNOPSIS...IS IT TIME TO GO MAC? Time was when virtually no software existed for traders whose machines were Apple Macintosh personal computers. Even Commodore had more software than Apple's machines, though retail technical analysis really got started with a lowl
SIDEBAR: Indicators
SIDEBAR: Indicators - Technical Analysis, Inc.
ARTICLE SYNOPSIS...INDICATORS The following steps can be used to implement the on-balance volume disparity indicator and the negative volume disparity indicator in Microsoft Excel. The example uses daily data for the stock J.P. Morgan [JPM]. Because Holt's article "Enhanc
SIDEBAR: Indicators and Formulas
ARTICLE SYNOPSIS...INDICATORS AND FORMULAS Bollinger bands are channel lines plotted two standard deviations above and below a 20-day simple moving average. A 20-day lookback period is also used for the standard deviation measurement. The formula for standard deviations i
SIDEBAR: Indicators by Technical Analysis, Inc.
ARTICLE SYNOPSIS...Indicators by Technical Analysis, Inc. Below are descriptions and formulas for the indicators mentioned. These are usually included in most technical analysis packages. For a more detailed discussion, refer to the references cited.
SIDEBAR: Integer data types
ARTICLE SYNOPSIS...SIDEBAR: Integer data types Integer math gives the program a tremendous speed advantage over floating-point math on most computer systems, but it is not as easy to work with. Problems can arise with overflow, where a calculation yields a value too large
SIDEBAR: JSA MOVING AVERAGE CALCULATIONS by Technical Analysis, Inc.
ARTICLE SYNOPSIS...JSA MOVING AVERAGE CALCULATIONS by Technical Analysis, Inc. Calculations for the simple, linear, and exponential moving average, plus the authors new interpretation.
SIDEBAR: Kinsman Smoothed A-D Calculation
ARTICLE SYNOPSIS...KINSMAN SMOOTHED A-D CALCULATION A clear advantage of this oscillator is its simplicity of calculation. Two Lotus or Quattro spreadsheet columns are all that are required, although I'll show them in four for the sake of clarity. The first two, the daily
SIDEBAR: LEAST-SQUARES CYCLE AND THE TIME SERIES MOVING AVERAGE
ARTICLE SYNOPSIS...LEAST-SQUARES CYCLE AND THE TIME SERIES MOVING AVERAGE The least-squares cycle oscillator calculates a regression line that is a best fit of the data for the selected time period, and then the difference between the current closing price and the current
SIDEBAR: LETTERS TO AUTHOR MERRILL
ARTICLE SYNOPSIS...Letters in response to Arthur Merrill's article, ""The 28% Rule"", page 54.
SIDEBAR: LOGARITHMIC POINT & FIGURE by Technical Analysis, Inc.
ARTICLE SYNOPSIS...SIDEBAR: LOGARITHMIC POINT & FIGURE by Technical Analysis, Inc. The point and figure chart, which is built on a filtering technique, is an old favorite. In a one-point chart, moves of less than one point are filtered out; in a three-point chart, all mov
SIDEBAR: MARKET THRUST
ARTICLE SYNOPSIS...MARKET THRUST In a spreadsheet, the cumulative market thrust line and the thrust oscillator (TO) use the daily number of advancing issues, declining issues, upside volume and downside volume. In Figure 1, the NYSE Composite is column B, the number of ad
SIDEBAR: MATH MODEL FORMULAS
ARTICLE SYNOPSIS...MATH MODEL FORMULAS My mathematical model of the stock market is based on fundamental economic parameters and has been modified slightly from the model described in the article ""Determining stock value from price and earnings."" The Standard & Poor's 5
SIDEBAR: MATHEMATICA
ARTICLE SYNOPSIS...MATHEMATICA One measure of price volatility is to compute s, averaging the square difference between current closing prices and a smoothing filter, yi, and taking the square root -- that is, ... with ci denoting the current closing price and yi denoti
SIDEBAR: MATRIX MULTIPLICATION
ARTICLE SYNOPSIS...MATRIX MULTIPLICATION If matrix A is size (m × n) and matrix B is size (n × k), then the product of matrix A times matrix B is another matrix, AB, of size (m × k). To find the element of the ith row and jth column of the product matrix, multiply each el
SIDEBAR: MEASURING ASSOCIATION BETWEEN RETURNS ON TWO ASSETS
ARTICLE SYNOPSIS...MEASURING ASSOCIATION BETWEEN RETURNS ON TWO ASSETS The covariance between the total returns on two assets X and Y is defined as the average over the entire period of the products consisting of asset X's return in a given subperiod less its average retu
SIDEBAR: MERRIMAN'S TIMERS
ARTICLE SYNOPSIS...MERRIMAN'S TIMERS According to Paul Merriman, the most productive of the four systems that Merriman & Associates uses has been Stan Lipstadt of PSM Investors, Inc. Carlisle, MA-based Lipstadt has been timing on a real-time basis since 1974. The most imp
SIDEBAR: METASTOCK
ARTICLE SYNOPSIS...METASTOCK The lead/lag filter can be implemented in MetaStock version 3.0 using custom formulas: Formula 1 mov(C,N,E) Formula 2 mov((N*fml(#1))-((N-1)*ref(fml(#1), -1)), N, E ) where mov(C,N,E) implements an N-point EMA on the closing price, fml(#1)
SIDEBAR: METASTOCK CUSTOM FORMULAS
ARTICLE SYNOPSIS...MetaStock custom formulas for price offset and momentum oscillators.
SIDEBAR: METASTOCK CUSTOM RSI FORMULAS by Technical Analysis, Inc.
ARTICLE SYNOPSIS...METASTOCK CUSTOM RSI FORMULAS by Technical Analysis, Inc.
SIDEBAR: METASTOCK FORMULAS
ARTICLE SYNOPSIS...Sidebar: MetaStock Formulas This sidebar provides the formulas for investigating the overlap of daily trading ranges as described in the article ""Studying Price Behavior"" by Mike Daley.
SIDEBAR: METASTOCK IMPLEMENTATION OF DEMA1 AND MACO-DEMA1 by Technical Analysis, Inc.
ARTICLE SYNOPSIS...METASTOCK IMPLEMENTATION OF DEMA1 AND MACD-DEMA1 by Technical Analysis, Inc.
SIDEBAR: METASTOCK IMPLEMENTATION OF TEMA1 AND MACD-TEMA1 by Technical Analysis, Inc.
ARTICLE SYNOPSIS...METASTOCK IMPLEMENTATION OF TEMA1 AND MACD-TEMA1 by Technical Analysis, Inc. The TEMA1 moving average and the MACD-TEMA1 can be implemented in MetaStock version 3.x using the custom formulas. The period for the example TEMA1 below was chosen as 26; howe
SIDEBAR: MFI Indicators - Technical Analysis, Inc.
ARTICLE SYNOPSIS...MFI INDICATORS - Techncial Analysis, Inc. TradeStation and SuperCharts users can use the following formulas in the PaintBar Study to color bars for each of the MFI indicators. Simply type the formula in the IF box of the PaintBar formula dialog box and
SIDEBAR: MODIFYING RISK AND RETURN WITH S&P 500 FUTURES
ARTICLE SYNOPSIS...MODIFYING RISK AND RETURN WITH S&P 500 FUTURES Stock index futures modify risk by altering the portfolio beta and portfolio return by affecting cash balances. Take an example. A $10 million portfolio currently has a beta of 1.2. The manager wants to inc
SIDEBAR: MONEY FLOW INDICATOR
ARTICLE SYNOPSIS...MONEY FLOW INDICATOR The money flow indicator is based on the concept that the large-volume single trades are much more important than smaller-share trades. For example, if a stock trades down one tick on 200 shares and then the next trade is an uptick
SIDEBAR: MOVING AVERAGE CALCULATIONS
ARTICLE SYNOPSIS...MOVING AVERAGE CALCULATIONS
SIDEBAR: MUGEN: COMPUTATION OF MEMBERSHIP FUNCTION
ARTICLE SYNOPSIS...MUGEN: COMPUTATION OF MEMBERSHIP FUNCTION Membership functions can probably be computed with any plausible mathematical function suitable to the occasion. In practice, however, many situations are well served by simple first- or second-order functions.
SIDEBAR: Mark 1 (1944)
ARTICLE SYNOPSIS...Mark 1 (1944) Conceived by Howard H. Aiken of Harvard University in 1937, the first automatic digital computer was built by International Business Machines in 1944. An automatic sequence controlled calculator, it was first used for computing ballistic d
SIDEBAR: Markov analysis by Technical Analysis, Inc.
ARTICLE SYNOPSIS...SIDEBAR: Markov analysis by Technical Analysis, Inc. A natural process which has a random element but also shows the effects of previous events influencing subsequent events is a Markov process. Markov models lie in the spectrum between fully determinis
SIDEBAR: Maximizing your Zen meditation experience
ARTICLE SYNOPSIS...MAXIMIZING YOUR ZEN MEDITATION EXPERIENCE Here are eight pointers to help you make the most of your meditation exercise.
SIDEBAR: MetaStock and Indicators - Technical Analysis, Inc.
ARTICLE SYNOPSIS...MetaStock 4.5 formulas - Technical Analysis, Inc.
SIDEBAR: MetaStock syntax
ARTICLE SYNOPSIS...METASTOCK SYNTAX Here's the system's syntax for MetaStock 4.5: ...
SIDEBAR: MetaStock syntax - Technical Analysis, Inc.
ARTICLE SYNOPSIS...METASTOCK SYNTAX - Technical Analysis, Inc.
SIDEBAR: Model identification
ARTICLE SYNOPSIS...SIDEBAR: Model identification ARIMA models are specified by defining three parameters q represented by the variables p, d and q. Mathematically, this is expressed with the notation ARIMA (p,d,q), where. . .
SIDEBAR: Money supply and the S&P 500
ARTICLE SYNOPSIS...Money supply and the S&P 500 I suspect most economists would say that M2 money supply and the S&P 500 are independent of each other. Here is evidence that there are significant serial dependencies between these two important time series. For illustrati
SIDEBAR: Monte Carlo Simulation
ARTICLE SYNOPSIS...MONTE CARLO SIMULATION Let us assume we have a specified string of profits and losses -- for example, the 1985-89 string of profits and losses for the 25-market portfolio used in the article. The Monte Carlo simulation is the technique we use to determin
SIDEBAR: More on optimization
ARTICLE SYNOPSIS...More on optimization It may seem a daunting prospect to find the optimal combination of 10 trading parameters over an eight-year quote file on a personal computer, but it's not as bad as it sounds. What Strategist does is to start with an initial strat
SIDEBAR: Normalization
ARTICLE SYNOPSIS...Normalization When comparing indicators, it helps to ""normalize"" the data first. This adjusts the values in both series to values between zero and 100 and shows the relative movement between the two. As an example, I've used advance/decline statistics
SIDEBAR: Normalize to Compare
ARTICLE SYNOPSIS...NORMALIZE TO COMPARE You can't compare apples and oranges - but if you need to try, normalizing the data is a way to make unlikely comparisons possible. A traditional method is to map values from the raw data onto a standard normal or bell curve. This l
SIDEBAR: Numeric weighting
ARTICLE SYNOPSIS...Numeric weighting Mathematical formula for calculating numeric weighting data.
SIDEBAR: OBSERVATIONS AND FORMULAS
ARTICLE SYNOPSIS...OBSERVATIONS AND FORMULAS To devise a technical indicator out of all this, consider first Article Figure 3. Today's low (Day 1 low) is 250 points below the high of Day 4 and 300 points below the high of Day 9. To which high is today's low most overexten
SIDEBAR: ODD-LOT SHORTS by Technical Analysis, Inc.
ARTICLE SYNOPSIS...ODD-LOT SHORTS by Technical Analysis, Inc. Short interest--the sale of a borrowed stock--is one of the most useful tools of the technician.
SIDEBAR: OH BOTHER
SIDEBAR: OPTIMUM DETRENDING SPREADSHEET EXAMPLE
ARTICLE SYNOPSIS...OPTIMUM DETRENDING SPREADSHEET EXAMPLE The following is a spreadsheet example (sidebar Figure 1) and a QuickBasic source code (sidebar Figure 2) of optimum detrending. Our spreadsheet example is for detrending the price data of the bond market example u
SIDEBAR: OSCILLATOR TRADING SYSTEMS DEFINED by Technical Analysis, Inc.
ARTICLE SYNOPSIS...OSCILLATOR TRADING SYSTEMS DEFINED by Technical Analysis, Inc. An oscillator is an indicator that moves back and forth between two limits. Most oscillators, such as stochastics, relative strength index and commodity channel index, are defined so that th
SIDEBAR: Ode to the Sow or Bellies Up by Wilbur Corella
ARTICLE SYNOPSIS...SIDEBAR: Ode to the Sow or Bellies Up by Wilbur Corella
SIDEBAR: Old RVI, new RVI and inertia
ARTICLE SYNOPSIS...OLD RVI, NEW RVI AND INERTIA The relative volatility index (RVI) is a modified form of the relative strength index (RSI). The original RSI calculation separates one-day net changes into positive closes and negative closes, then smoothes the data and nor
SIDEBAR: Option price sensitivity and the Greek alphabet
ARTICLE SYNOPSIS...SIDEBAR: Option price sensitivity and the Greek alphabet To analyze the risk/reward profiles of option strategies, traders measure the sensitivity of option strategies to unit changes in independent variables such as the price of the underlying security
SIDEBAR: Other Research
ARTICLE SYNOPSIS...Other Research There are at least two reasons why other researchers have not found the significant dependencies described here and in the October 1987 S&C article on money supply. First, most of the other workers in this area have used either serial or
SIDEBAR: P-V RANK BY HAND
ARTICLE SYNOPSIS...SIDEBAR: P-V RANK BY HAND As the article "Price-volume rank" describes, P-V rank can be figured by hand by using the guidelines outlined. I do so, and then I manually enter the resultant data (numbers 1 through 4) into EQUIS International's The Technici
SIDEBAR: PATIENCE IS A VIRTUE
SIDEBAR: PATTERN EXPLICATIONS by Technical Analysis, Inc.
ARTICLE SYNOPSIS...PATTERN EXPLICATIONS by Technical Analysis, Inc. In Figure 1, the first pattern shown (A), called ""meeting lines,"" is a gap opening and an unchanged close. This pattern indicates that the market direction is unclear or it is the conclusion of a trend.
SIDEBAR: POINT & FIGURE TECHNIQUE
ARTICLE SYNOPSIS...POINT & FIGURE TECHNIQUE Point and figure charting is a technical trading approach that has been credited to Charles Dow, originator of the Dow theory. This technique differs from bar charting in that price reversals below a minimum size are eliminated
SIDEBAR: POINT & FIGURE TECHNIQUE by Technical Analysis, Inc.
ARTICLE SYNOPSIS...POINT & FIGURE TECHNIQUE by Technical Analysis, Inc. Explanation of point and figure charting, which is similar to bar charting except that price reversals below a minimum size are eliminated, and time is not a factor. This is one of the simplest metho
SIDEBAR: PROBABILITY CONSIDERATIONS
ARTICLE SYNOPSIS...PROBABILITY CONSIDERATIONS Statistics using a binomial formula to calculate failure and success probabilities of stocks, page 215.
SIDEBAR: PROFITABILITY OF BREAKOUT AND OSCILLATOR METHODS WITH S&P 500
ARTICLE SYNOPSIS...PROFITABILITY OF BREAKOUT AND OSCILLATOR METHODS WITH S&P 500 Profitability of breakout and oscillator methods with S&P 500.
SIDEBAR: PROTECTIVE STOPS by Technical Analysis, Inc.
ARTICLE SYNOPSIS...PROTECTIVE STOPS by Technical Analysis, Inc. Definitions of initial and trailing protective stops.
SIDEBAR: Patters Perfection, part I
ARTICLE SYNOPSIS...PATTERS PERFECTION, part I Quote by H.M.Gartley, author of Profits in the Stock Market
SIDEBAR: Personal Factors
SIDEBAR: Pertinent formulas
ARTICLE SYNOPSIS...SIDEBAR: Pertinent formulas This sidebar provides the three formulas used in the article, ""Correlation of common stock indicators.""
SIDEBAR: Polarized Fractal Efficiency Spreadsheet by Technical Analysis, Inc.
ARTICLE SYNOPSIS...POLARIZED FRACTAL EFFICIENCY SPREADSHEET by Technical Analysis, Inc. The first step to calculate the 10-period polarized fractal efficiency (PFE) on a percentage basis is to calculate the first-to-last close spacing.
SIDEBAR: Portrait of a cycle
ARTICLE SYNOPSIS...SIDEBAR: Portrait of a cycle Combining volume indicators, my new high and new low indicators and the advance/decline line (ADL) helps me to define cycles in the Dow Jones Industrial Average (DJIA) or other broad indices such as the New York Stock Exchan
SIDEBAR: Prices and Cycles by Technical Analysis, Inc.
ARTICLE SYNOPSIS...SIDEBAR: Prices and Cycles by Technical Analysis, Inc. There appears to be a correlation between the magnitude of a stock price move and the strength of the planetary cycle. Article Figure 3 is a scatter plot on which the vertical scale denotes the num
SIDEBAR: Profit Objectives and Sequential System
ARTICLE SYNOPSIS...Sidebar: Profit Objectives and Sequential System The classic form of chart analysis incorporates a method to project profit objectives after a trendline is penetrated. Along those lines, Tom DeMark developed three methods to identify profit objectives a
SIDEBAR: Programming Conventions for BASIC Technical Analysis subroutines
ARTICLE SYNOPSIS...Programming Conventions for BASIC Technical Analysis subroutines: NO Input/Output routine is provided, only a generic BASIC computational subroutine containing the fundamental technical analysis is provided. This subroutine should, with only minor chang
SIDEBAR: Programming Conventions for BASIC Technical Analysis subroutines:
ARTICLE SYNOPSIS...Programming Conventions for BASIC Technical Analysis subroutines: NO Input/Output routine is provided, only a generic BASIC computational subroutine containing the fundamental technical analysis is provided. This subroutine should, with only minor chang
SIDEBAR: Programming Conventions for BASIC Technical Analysis subroutines:
ARTICLE SYNOPSIS...Programming Conventions for BASIC Technical Analysis subroutines: NO Input/Output routine is provided, only a generic BASIC computational subroutine containing the fundamental technical analysis is provided. This subroutine should, with only minor chang
SIDEBAR: Programming conventions for BASIC Technical Analysis subroutines:
SIDEBAR: Programming conventions for BASIC Technical Analysis subroutines:
ARTICLE SYNOPSIS...Programming conventions for BASIC Technical Analysis subroutines: NO Input/Output routine is provided, only a generic BASIC computational subroutine containing the fundamental technical analysis is provided. this subroutine should, with only minor chang
SIDEBAR: Projection bands and oscillators by Mel Widner
ARTICLE SYNOPSIS...V.13:07 (281): SIDEBAR: Projection bands and oscillators by Mel Widner Sidebar Figure 4 shows a Microsoft Excel 4.0 spreadsheet that is used for calculations; column A = trading day number that is used in the calculation of slopes and trends. For a look
SIDEBAR: Psychological Barriers to Trading - Technical Analysis, Inc.
ARTICLE SYNOPSIS...Characterizations of certain psychological barriers to trading. - Technical Analysis, Inc.
SIDEBAR: QUESTIONS CONCERNING THE SPECIALIST
ARTICLE SYNOPSIS...QUESTIONS CONCERNING THE SPECIALIST Computer parameters of the pseudo stock specialist used in the main article, page 120.
SIDEBAR: RANDOM WALK INDEX SPREADSHEET by Thom Hartle, Editor
ARTICLE SYNOPSIS...SIDEBAR: RANDOM WALK INDEX SPREADSHEET by Thom Hartle, Editor Sidebar Figure 1 is a bar chart with 10 days of simulated data; today's current high and low are plotted as if the market is still trading. The random walk index of the lows can measure if to
SIDEBAR: REFLECTION OF CHANGES
SIDEBAR: REGRESSION CHANNEL ANALYSIS
ARTICLE SYNOPSIS...REGRESSION CHANNEL ANALYSIS To construct a regression channel (Article Figure 16) from the last key high or low on a weekly chart, we built a least-squarest best-fit regression line Z to the next key low or the last trading day, whichever is lower. To d
SIDEBAR: RELATIVE VOLATILITY INDEX by Technical Analysis, Inc.
ARTICLE SYNOPSIS...RELATIVE VOLATILITY INDEX by Technical Analysis, Inc. The relative volatility index (RVI) is a modified form of the relative strength index (RSI). The original RSI calculation separates one-day net changes into positive closes and negative closes, then
SIDEBAR: RELEVANT FORMULAS AND CALCULATIONS
ARTICLE SYNOPSIS...SIDEBAR: RELEVANT FORMULAS AND CALCULATIONS To calculate and adjust a mutual fund's annualized five-year return to maintain a top 30 ranking: First, convert the annualized five-year return (A) from NLFI to the full compounded return, as shown in column
SIDEBAR: RELEVANT FORMULAS AND OBSERVATIONS
ARTICLE SYNOPSIS...RELEVANT FORMULAS AND OBSERVATIONS Focusing on the profit and loss profiles, we have established that: Rstock + Rput - Rcall = 0 Where Rstock, Rput and Rcall are the risk--profit or loss --of holding the stock, the put and the call, respectively. ...
SIDEBAR: RELEVANT TERMS by Technical Analysis, Inc.
ARTICLE SYNOPSIS...SIDEBAR: RELEVANT TERMS by Technical Analysis, Inc. Short paragraph-length descriptions are given for: dependent variable, independent variable(s), coeffeient of determination (R2), alpha, and beta.
SIDEBAR: RESEARCH in Progress:
ARTICLE SYNOPSIS...RESEARCH in Progress: To make this research periodical a viable and useful tool to the investor, we plan to offer a broad spectrum of information. The centerpiece of each issue will be feature articles on specific numerical or graphical technical analys
SIDEBAR: RSI: TWO VERSIONS
ARTICLE SYNOPSIS...RSI: TWO VERSIONS It may not be obvious that (1) RSI14 = 100?(100 / 1+RS) is the same as
SIDEBAR: RULE PROCESS GENERATION by Technical Analysis, Inc.
ARTICLE SYNOPSIS...RULE PROCESS GENERATION by Technical Analysis, Inc. To illustrate how this process of rule generation works, suppose that the exponential moving average, taken together with the computed direction of the market and today's Standard & Poor's, represents
SIDEBAR: Random Walk Index Spreadsheet by Technical Analysis, Inc.
ARTICLE SYNOPSIS...Random Walk Index Spreadsheet by Technical Analysis, Inc. Random Walk index spreadsheet.
SIDEBAR: Relevant formulas
ARTICLE SYNOPSIS...SIDEBAR: Relevant formulas This sidebar gives the formulas and an example showing how to detrend wheat contracts, page 401.
SIDEBAR: Relevant formulas
ARTICLE SYNOPSIS...SIDEBAR: Relevant formulas Formulas are given for nominal price, earnings average, effective interest rate, and divergence as used in the article ""Determining stock value from price and earnings"" by Paul T. Holliday
SIDEBAR: Retracement corrections by Technical Analysis, Inc.
ARTICLE SYNOPSIS...SIDEBAR: Retracement corrections by Technical Analysis, Inc. In the ""real"" world, markets seldom trace out patterns exactly as our technical forecasting approaches would have them behave. I find it's true in calculating ideal retracements, as well. Bu
SIDEBAR: SAMPLES OF USE
ARTICLE SYNOPSIS...SAMPLES OF USE Three samples of data in different programs manipulated to be used in other software trading programs.
SIDEBAR: SELF-EVALUATION by Technical Analysis, Inc.
ARTICLE SYNOPSIS...SELF-EVALUATION by Technical Analysis, Inc. Testing your level of perfectionism.
SIDEBAR: SETTING UP AN EXCEL SPREADSHEET
ARTICLE SYNOPSIS...SETTING UP AN EXCEL SPREADSHEET Following is an example of setting up an Excel spreadsheet for creating a forecast using a five-day linear regression for tomorrow's close. Sidebar Figure 1, Column A, lists the dates and Column D lists the closing prices
SIDEBAR: SHORT INTEREST AND LEVEL OF PAIN
ARTICLE SYNOPSIS...SHORT INTEREST AND LEVEL OF PAIN Generally, short interest is a monthly statistic presented on a current-month versus previous-month basis. Viewing one or two months of short interest data is, unfortunately, a tantalizing but less than satisfying experi
SIDEBAR: SIDEBAR
SIDEBAR: SIDEBAR
SIDEBAR: SIDEBAR 1
ARTICLE SYNOPSIS...SIDEBAR 1 The period of maximum sensitivity cycle is half the window length, L. Attenuation of a Simple Moving Average (SMA) for this period is 2/pi. For an equivalent Exponential Moving Average (EMA) attenuation this is expressed as:
SIDEBAR: SIDEBAR 1
SIDEBAR: SIDEBAR 1
SIDEBAR: SIDEBAR 1
SIDEBAR: SIDEBAR 1
ARTICLE SYNOPSIS...SIDEBAR 1 RUN DECISION MAKER DECISION MAKER I CAN HELP YOU MAKE DECISIONS BY CHOOSING THE BEST POSSIBILITY FOR YOU OUT OF SEVERAL ALTERNATIVES. ALL I NEED TO DO IS ORGANIZE INFORMATION YOU ALREADY HAVE. WHICH OF THESE BEST DESCRIBES THE DECISION YOU
SIDEBAR: SIDEBAR 1
ARTICLE SYNOPSIS...SIDEBAR 1 The period of maximum sensitivity cycle is half the window length, L. Attenuation of a Simple Moving Average (SMA) for this period is 2/pi. For an equivalent Exponential Moving Average (EMA) attenuation this is expressed as:
SIDEBAR: SIDEBAR 1
SIDEBAR: SIDEBAR 1
ARTICLE SYNOPSIS...SIDEBAR 1 As an aside, note that volatility must be adjusted for the price action around dividends in mutual funds. I calculate a ""price factor"" (PR) if a dividend (D) paid between quotes Qi-1, and Qi:
SIDEBAR: SIDEBAR 1
SIDEBAR: SIDEBAR 1
ARTICLE SYNOPSIS...SIDEBAR 1 RUN DECISION MAKER DECISION MAKER I CAN HELP YOU MAKE DECISIONS BY CHOOSING THE BEST POSSIBILITY FOR YOU OUT OF SEVERAL ALTERNATIVES. ALL I NEED TO DO IS ORGANIZE INFORMATION YOU ALREADY HAVE. WHICH OF THESE BEST DESCRIBES THE DECISION YOU
SIDEBAR: SIDEBAR 1
ARTICLE SYNOPSIS...SIDEBAR 1 As an aside, note that volatility must be adjusted for the price action around dividends in mutual funds. I calculate a ""price factor"" (PR) if a dividend (D) paid between quotes Qi-1, and Qi:
SIDEBAR: SIDEBAR 1
SIDEBAR: SIDEBAR 1
SIDEBAR: SIDEBAR 1
SIDEBAR: SIMPLE RISK CONTROL by Technical Analysis, Inc.
ARTICLE SYNOPSIS...SIDEBAR: SIMPLE RISK CONTROL by Technical Analysis, Inc. Evaluating your tolerance for risk and determining the size of a purchase. Assume you have $200,000 for your trading portfolio and a trading strategy that generates buy and sell signals. You have
SIDEBAR: SIT TIGHT
SIDEBAR: SMALL TALK
SIDEBAR: SOME ARGUMENTS ARE USELESS
SIDEBAR: SOME TEAM STRUCTURE TYPES
ARTICLE SYNOPSIS...SIDEBAR: SOME TEAM STRUCTURE TYPES Each team shown in this diagram is a two-person alliance unless specified otherwise. Note that we are dealing with changeable combinations. An information team can develop into a working team or even a trading team, or
SIDEBAR: SOURCES OF RISK IN A SECURITY
ARTICLE SYNOPSIS...SOURCES OF RISK IN A SECURITY Sources such as: Business risk: The degree of uncertainty associated with an investment's earnings and the investment's ability to pay investors the returns owed them.
SIDEBAR: SPREADSHEET ANALYSIS by Technical Analysis, Inc.
ARTICLE SYNOPSIS...SPREADSHEET ANALYSIS by Technical Analysis, Inc. Here's a simple way of setting up a return versus leverage analysis in a spreadsheet (sidebar Figure 1). Specifically, this is for Lotus 1-2-3, but you should be able to follow the example and apply it to
SIDEBAR: STOCHASTIC OSCILLATOR
ARTICLE SYNOPSIS...SIDEBAR: STOCHASTIC OSCILLATOR The stochastic oscillator is used to indicate overbought or oversold conditions on a scale of zero to 100%. The stochastic process is based on the observation that as price decreases, the daily closes tend to accumulate n
SIDEBAR: STOCHASTICS MOMENTUM INDEX
ARTICLE SYNOPSIS...STOCHASTICS MOMENTUM INDEX The spreadsheet features in sidebar Figure 1 an example of calculating the stochastics momentum index (SMI) for a lookback period of two days (q = 2) and a double smoothing of 20 days (r = 20, s = 20) using an exponential smoo
SIDEBAR: SYSTEM TEST
ARTICLE SYNOPSIS...Heat test to show profitability over a range of set sizes.
SIDEBAR: Sample Selection Method
ARTICLE SYNOPSIS...SIDEBAR: Sample Selection Method This sidebar gives a selection of decliners and nondecliners that were used in the article, ""Can Stock Fundamentals Protect You?""
SIDEBAR: Series 40 Handheld Computer
SIDEBAR: Simple moving average
ARTICLE SYNOPSIS...A quick definition of the Iterative and noninteractive forms of the simple moving average.
SIDEBAR: Slope of Activation Function - Technical Analysis, Inc.
ARTICLE SYNOPSIS...SLOPE OF ACTIVATION FUNCTION - Technical Analysis, Inc. A new slope of activation functions to improve the neural net's fit. In an effort to improve the model's fit of the data, we updated the slope of the activation function. This approach, however, i
SIDEBAR: Solution Providers
SIDEBAR: Spreadsheet Calculations by Thom Hartle
ARTICLE SYNOPSIS...SPREADSHEET CALCULATIONS This set of oscillators is easily calculated in a spreadsheet (sidebar Figure 1). The first four column are the date, high, low and closing price of Boeing (BA). Column E is the calculation of the 24-period moving average, the b
SIDEBAR: Standard Error Bands - Technical Analysis, Inc.
ARTICLE SYNOPSIS...Sidebar: Standard error bands by Thom Hartle Microsoft's Excel comes with statistical formulas that can be used to create the standard error bands and the related indicators (sidebar Figure 1). The following example uses Microsoft stock price series; co
SIDEBAR: Statistical Primer
ARTICLE SYNOPSIS...STATISTICAL PRIMER Two samples are used in the analysis of event-driven breakouts: Sample 1: Market returns with event-driven breakouts removed Sample 2: All event-driven breakouts. To determine if sample 2 yields consistently higher returns than sam
SIDEBAR: Statistical vs. practical significance by Technical Analysis, Inc.
ARTICLE SYNOPSIS...SIDEBAR: Statistical vs. practical significance by Technical Analysis, Inc. Let's look more closely at practical significance when using chi-square methodology. First, you need to specify two different hypotheses. They are frequently called the null and
SIDEBAR: Steps to overcoming resistance
ARTICLE SYNOPSIS...Sidebar: Steps to overcoming resistance Self-help questions on your resistance to change.
SIDEBAR: Stochastic oscillator by Mike Takano
ARTICLE SYNOPSIS...Stochastic oscillator by Mike Takano The stochastic oscillator is used to indicate overbought or oversold conditions on a scale of zero to 100%. The stochastic process is based on the observation that as price decreases, the daily closes tend to accumu
SIDEBAR: Summary statistics
ARTICLE SYNOPSIS...SIDEBAR: Summary statistics Summary statistics can provide most of the relevant statistical information for a stock option or commodity contract. In particular, the mean ut is the expected value of the closing price on day t and represents an average me
SIDEBAR: System Writer Plus programming
ARTICLE SYNOPSIS...System Writer Plus programming The System Writer can be copied and modified to use with other currencies or to graph cross-currency rates.
SIDEBAR: T-TEST RETURNS
ARTICLE SYNOPSIS...T-TEST RETURNS For each of the 10 trading strategies, Article Figure 2 presents the mean quarterly net returns, the standard deviation of these returns, the results of the t-test, the autocorrelation coefficient (the column titled Auto contains the esti
SIDEBAR: TELESCAN PROSEARCH INDICATORS
SIDEBAR: TEN RECOMMENDED FUNDS
ARTICLE SYNOPSIS...TEN RECOMMENDED FUNDS According to the relative strength analysis of Paul Merriman & Associates since July 1, these are the funds that Merriman would choose at present:
SIDEBAR: TERMS AND PROGRAMMING HOW -TOS
ARTICLE SYNOPSIS...TERMS AND PROGRAMMING HOW -TOS Here are the definitions of the terms used in Article Figures 2 and 3, and the names of storage variables you see at the top of the macro: CURR--Currency for which the database holds exchange rates SERIES--Ex. 12345, a num
SIDEBAR: TESTING INDICATORS FOR PROFITABILITY
ARTICLE SYNOPSIS...TESTING INDICATORS FOR PROFITABILITY In our first study of 34 indicators, MicroVest's BackTrak was used to simulate optimization using three strategies: speculation, hedging for a commercial holding a long position in the cash yen market and hedging for
SIDEBAR: THE ARMS INDEX
ARTICLE SYNOPSIS...THE ARMS INDEX The Arms index, also known as TRIN or Trader's Index, was developed by Richard Arms in 1967 to indicate when abnormally high volume is accompanying either advancing or declining stocks. The index is based on the assumption that volume ten
SIDEBAR: THE CANDLESTICK METHOD
ARTICLE SYNOPSIS...THE CANDLESTICK METHOD Illustration of a basic candlestick body.
SIDEBAR: THE CANDLESTICK METHOD
ARTICLE SYNOPSIS...THE CANDLESTICK METHOD The candlestick chart can be used to interpret the movement of markets from intraday out to a monthly chart format. The basic candlestick chart depicts the market open, high, low and close.
SIDEBAR: THE CANDLESTICK METHOD
ARTICLE SYNOPSIS...Quick descriptions and definitions of candlestick charting patterns and terms, page 108.
SIDEBAR: THE CANDLESTICK METHOD by Technical Analysis, Inc.
ARTICLE SYNOPSIS...THE CANDLESTICK METHOD by Technical Analysis, Inc.
SIDEBAR: THE CANDLESTICK METHOD by Technical Analysis, Inc.
ARTICLE SYNOPSIS...THE CANDLESTICK METHOD by Technical Analysis, Inc. How to make a basic candlestick chart.
SIDEBAR: THE CHL/LLF METHOD SPREADSHEET by Technical Analysis, Inc.
ARTICLE SYNOPSIS...THE CHL/LLF METHOD SPREADSHEET by Technical Analysis, Inc. Recall that the ""concurrent highest low"" filter (CHL) is a condition set up for the ""largest low to low fall"" trigger (LLF) and that the two are true/false situations. Therefore, the CHL fil
SIDEBAR: THE ELLIOTT WAVE ZIGZAG FORMATION
ARTICLE SYNOPSIS...THE ELLIOTT WAVE ZIGZAG FORMATION --Thom Hartle, Editor An explanation of subdivisions of the Elliott Wave pattern, page 173.
SIDEBAR: THE ELLIOTT WAVE by Technical Analysis, Inc.
ARTICLE SYNOPSIS...THE ELLIOTT WAVE by Technical Analysis, Inc. The Elliott wave principle is a method for classifying and forecasting market movement. The basic tenet is that markets move in a five-wave pattern in the direction of the trend. Once the five waves have been
SIDEBAR: THE GREEKS
ARTICLE SYNOPSIS...THE GREEKS Delta: The rate of change of option price with regard to its underlying asset. An option with a delta of 25 will move 25% as much as the underlying asset. The delta of options changes with the distance of the strike price from the underlying.
SIDEBAR: THE MASS INDEX AND MOVING AVERAGE FORMULAS
ARTICLE SYNOPSIS...THE MASS INDEX AND MOVING AVERAGE FORMULAS The mass index is a 25-day moving sum of a ratio of two moving averages. The numerator of the ratio is the exponentially smoothed moving average of the daily ranges. The denominator is the numerator smoothed a
SIDEBAR: THE McCLELLANS' INDICATORS
ARTICLE SYNOPSIS...SIDEBAR: THE McCLELLANS' INDICATORS The McClellan oscillator can be used for measuring changes in momentum of price, volume, advances and declines. The most common use is for measuring the momentum of the New York Stock Exchange (NYSE) listing of the da
SIDEBAR: THE OPTIMISM/PESSIMISM INDEX
ARTICLE SYNOPSIS...THE OPTIMISM/PESSIMISM INDEX The Wyckoff method divides each trading session into intraday buying and selling waves.
SIDEBAR: THE OPTION DELTA by Technical Analysis, Inc.
ARTICLE SYNOPSIS...THE OPTION DELTA by Technical Analysis, Inc. Simply stated, the delta of an option is the amount by which the option will increase or decrease in price if the underlying instrument moves by 1 point. The deltas of call options have positive values, while
SIDEBAR: THE RANDOM WALK INDEX
ARTICLE SYNOPSIS...THE RANDOM WALK INDEX The channel height ratio to one day figures given show a consistent excess beyond the square root column. This excess indicates the presence of trends and hints how to create a trend ""yardstick."" If no trends were present, the ra
SIDEBAR: THE RPI by Technical Analysis, Inc.
ARTICLE SYNOPSIS...THE RPI by Technical Analysis, Inc. Applying the RPI, restoring pull indicator, which uses current cycle length and volume in its calculations.
SIDEBAR: THE RULE OF ALTERNATION
SIDEBAR: THE VERTICAL HORIZONTAL FILTER by Technical Analysis, Inc.
ARTICLE SYNOPSIS...THE VERTICAL HORIZONTAL FILTER by Technical Analysis, Inc. Formula for the 28-day VHF (vertical horizontal filter).
SIDEBAR: THE VOLUME INDEX AND ON-BALANCE VOLUME
ARTICLE SYNOPSIS...THE VOLUME INDEX AND ON-BALANCE VOLUME --Thom Hartle A leading and confirming indicator, page 170.
SIDEBAR: THE VOLUME INDEX AND ON-BALANCE VOLUME
ARTICLE SYNOPSIS...THE VOLUME INDEX AND ON-BALANCE VOLUME The volume index is a sum of each financial index's current on-balance volume (OBV) reading. On-balance volume is an indicator based on each day's change and the accompanying volume. ...
SIDEBAR: THE WYCKOFF WAVE
ARTICLE SYNOPSIS...THE WYCKOFF WAVE To determine the current trend, the present position and probable future trend of the market, a means of charting the market's action to reveal the general direction of the trend is necessary. ...
SIDEBAR: THE WYCKOFF WAVE
ARTICLE SYNOPSIS...THE WYCKOFF WAVE The Wyckoff wave used as a common stock price index, page 71.
SIDEBAR: THE WYCKOFF WAVE
ARTICLE SYNOPSIS...THE WYCKOFF WAVE The Wyckoff wave used as a common stock price index, page 227.
SIDEBAR: THIRTEEN INVESTMENT TENETS by Technical Analysis, Inc.
ARTICLE SYNOPSIS...THIRTEEN INVESTMENT TENETS by Technical Analysis, Inc. To improve your investment performance... THIRTEEN INVESTMENT TENETS THAT COULD IMPROVE YOUR INVESTMENT PERFORMANCE
SIDEBAR: TICK LINE MOMENTUM by Technical Analysis, Inc.
ARTICLE SYNOPSIS...TICK LINE MOMENTUM by Technical Analysis, Inc. The daily closing tick is collected in column C in sidebar Figure 1. The first step is to smooth the daily closing values using a 10-period exponentially weighted moving average. To start this process, we n
SIDEBAR: TIME DELAY OF LINEAR EXPONENTIAL AVERAGES
ARTICLE SYNOPSIS...TIME DELAY OF LINEAR EXPONENTIAL AVERAGES Article Figure 2 indicates that if the price goes up linearly, after a while the exponential moving average will also be a straight line that is parallel to the original. For this to occur, there must be a const
SIDEBAR: TRADING TACTICS IN DETAIL by Technical Analysis, Inc.
ARTICLE SYNOPSIS...TRADING TACTICS IN DETAIL by Technical Analysis, Inc. Application of the Martingale system.
SIDEBAR: TRAFFIC CONGESTION
SIDEBAR: TREND CHANNEL SPREADSHEET
ARTICLE SYNOPSIS...TREND CHANNEL SPREADSHEET The trend-following method uses exponential smoothed moving averages (EMA) of price data. The equation for an EMA requires the previous day's EMA for the calculation of today's EMA. Consequently, the first period's closing pric
SIDEBAR: TREND REVERSAL
ARTICLE SYNOPSIS...TREND REVERSAL Before discussing the concept of a trend reversal, the proper way to draw a trendline must be discussed. If a market is in a downtrend, the trendline is drawn from the highest high to the lowest minor high before the lowest low on the cha
SIDEBAR: TRIPLE EXPONENTIALLY SMOOTHING A DATA SERIES
ARTICLE SYNOPSIS...TRIPLE EXPONENTIALLY SMOOTHING A DATA SERIES One purpose of triple exponentially smoothing a data series is to remove meaningless fluctuations from the data while maintaining the correct appraisal of the direction of the trend. This is accomplished by s
SIDEBAR: TRIX MOMENTUM IN METASTOCK by Technical Analysis, Inc.
ARTICLE SYNOPSIS...TRIX MOMENTUM IN METASTOCK by Technical Analysis, Inc. TRIX momentum in MetaStock.
SIDEBAR: TRUE STRENGTH INDEX
ARTICLE SYNOPSIS...TRUE STRENGTH INDEX The formula for the true strength index is ... where: Mtm= one-day change in closing price Mtm| = absolute value of Mtm Er = exponential smoothed moving average of r days Es = exponential smoothed moving average of s days ....
SIDEBAR: TWO VERSIONS OF THE RSI FORMULA
ARTICLE SYNOPSIS...TWO VERSIONS OF THE RSI FORMULA Derivation of the RSI formula containing an exponential moving average, from the basic RSI formula, page 205.
SIDEBAR: Technicals
ARTICLE SYNOPSIS...TECHNICALS Z test for significance of difference between two proportions Assume first CTA has 8 winning trades out of 15 Assume second CTA has 41 winning trades out of 113 Test for statistical significance in difference of ratios ...
SIDEBAR: Test parameters
ARTICLE SYNOPSIS...SIDEBAR: Test parameters Parameters needed to use a Bezier program or to test curves by hand.
SIDEBAR: Testing your macros
ARTICLE SYNOPSIS...Testing your macros The lines between the {Down} macros separate the processing. Each macro is a separate line and you rename each macro as '\x in order to test it separately. You can use other letters if you choose. I always use '\x for test macros in
SIDEBAR: The Alpha Indicator - Technical Analysis, Inc.
ARTICLE SYNOPSIS...THE ALPHA INDICATOR - Technical Analysis, Inc. To build your own alpha indicator in Microsoft Excel, use the following steps. Column A should be the date, column B the Treasury bond futures data and column C is the Fidelity Select Chemical Fund data.
SIDEBAR: The Commitments of Traders report
ARTICLE SYNOPSIS...SIDEBAR: The Commitments of Traders This sidebar simply gives the address for the Commodity Futures Trading Commission (CFTC) where the ""Commitments of Traders in Commodity Futures"" monthly report can be obtained.
SIDEBAR: The Exchanges and Indices - Technical Analysis, Inc.
ARTICLE SYNOPSIS...Listing of Exchanges and indicators. - Technical Analysis, Inc. THE EXCHANGES AND INDICES New York Futures Exchange (NYFE) The New York Futures Exchange, a wholly owned subsidiary of the New York Cotton Exchange (NYCE), has approximately 359 members
SIDEBAR: The K-Ratio Precious Metals Switch Fund
ARTICLE SYNOPSIS...In the July 1996 STOCKS & COMMODITIES, Jay Kaeppel described a technique for evaluating gold stocks using the Barron's Gold Mining Index (GMI) relative to gold bullion. He showed that analysis of the ratio between the GMI and the price of gold bullion co
SIDEBAR: The K-ratio TradeStation Code
ARTICLE SYNOPSIS...THE K-RATIO TRADESTATION CODE The K-ratio system includes no buy or sell signals. When run simultaneously with other trade-generating systems, it prints the K-ratio of the trade-generating system to the print log window. System Name : K-ratio VAR: Obs
SIDEBAR: The Money Flow Index
ARTICLE SYNOPSIS...How to calculate the money flow index, a volume-weighted form of the RSI. The money flow index (MFI) is a volume-weighted form of the relative strength index (RSI). Instead of using up closes versus down closes, the MFI compares today's average price to
SIDEBAR: The Pathfinder Trading System
ARTICLE SYNOPSIS...The Pathfinder currency trading system uses the same model for trading each of four currency futures contracts - the yen, the Deutschemark, the Swiss franc and the British pound. The trading rules are based on a set of conditions, which in turn are based
SIDEBAR: The RSI and the RMI
ARTICLE SYNOPSIS...THE RSI AND THE RMI The formula for the relative strength index (RSI) is: RSI = 100((RS/(1+RS)) where: RS = AU/AD during the last X days AU = Yesterday's AU - (AU/X) + today's up close or zero AD = Yesterday's AD - (AD/X) + the absolute value of t
SIDEBAR: The RSI and the RMI
ARTICLE SYNOPSIS...THE RSI AND THE RMI The formula for the relative strength index (RSI) is: RSI = 100((RS/(1+RS)) where: RS = AU/AD during the last X days AU = Yesterday's AU - (AU/X) + today's up close or zero AD = Yesterday's AD - (AD/X) + the absolute value of t
SIDEBAR: The RSI and the RMI by Technical Analysis, Inc.
ARTICLE SYNOPSIS...The RSI and the RMI by Technical Analysis, Inc. Formulas and sample spreadsheets for the RSI and RMI.
SIDEBAR: The basics by Technical Analysis, Inc.
ARTICLE SYNOPSIS...SIDEBAR: The basics by Technical Analysis, Inc. There is a special vocabulary of options trading that must be mastered in order to understand the uses of options and communicate with brokers and other option traders. An option is a legal contract that
SIDEBAR: The candlestick method
ARTICLE SYNOPSIS...Sidebar: The candlestick method The candlestick chart can be used to interpret the movement of markets from intraday out to a monthly chart format. This sidebar provides an illustration of the candlestick body.
SIDEBAR: The length of runs
SIDEBAR: The long wave
ARTICLE SYNOPSIS...Sidebar: The long wave According to Charles Kirkpatrick's award-winning ""Charles Dow looks at the long wave,"" there is a fourth wave or a cycle of a longer-term nature beyond the ""three well-defined movements,"" as Charles H. Dow himself referred to
SIDEBAR: The short-range oscillator
ARTICLE SYNOPSIS...THE SHORT-RANGE OSCILLATOR The short-range oscillator combines daily New York Stock Exchange (NYSE) market statistics with the daily closing price of the Dow Jones Industrial Average (DJIA) to provide indications of overbought and oversold market condit
SIDEBAR: TradeStation code
ARTICLE SYNOPSIS...Sidebar: TradeStation code Here's the code for flying the titantic for tradestation 3.01. Anyhting between the curly brackets {.....} is a comment statement and doesn't have to be typed in.
SIDEBAR: Trader's Comment by Tom Sewell
SIDEBAR: Trading bands by Bruce Faber
ARTICLE SYNOPSIS...V.13:07 (280): SIDEBAR: Trading bands by Bruce Faber Trading bands, or envelopes, are used as visible boundaries that contain the price movement of a security. A sell signal may be generated when the price hits the upper band and a buy signal may be gen
SIDEBAR: Trend again? by Jesse H. Thompson
ARTICLE SYNOPSIS...Trend again? by Jesse H. Thompson If you look closely at the method and approach ascribed to such market masters as Dow, Wyckoff, Livermore, Gann, Dunnigan and Jackson, you find trend stated as a primary consideration in all of their market operations.
SIDEBAR: Trendscore
SIDEBAR: Triangular moving averages
ARTICLE SYNOPSIS...SIDEBAR: Triangular moving averages Article Figure 1 represents a 20-period triangular moving average (P=20). By convention, the maximum weight for all values of P is 2.0. If P=20, the maximum weight 2.0 must be at the midpoint, time period 10. Incremen
SIDEBAR: True range
ARTICLE SYNOPSIS...True range Formula for calculating true range, page 231.
SIDEBAR: UNDERSTANDING STANDARD MATHEMATICAL SYMBOLS
ARTICLE SYNOPSIS...UNDERSTANDING STANDARD MATHEMATICAL SYMBOLS It is inevitable that today's technician will encounter steps to calculating an indicator that uses standard mathematical symbols that appear to be beyond simple arithmetic. In reality, these symbols are simpl
SIDEBAR: UNDERSTANDING STANDARD MATHEMATICAL SYMBOLS
ARTICLE SYNOPSIS...UNDERSTANDING STANDARD MATHEMATICAL SYMBOLS It is inevitable that today's technician will encounter steps to calculating an indicator that uses standard mathematical symbols that appear to be beyond simple arithmetic. In reality, these symbols are simpl
SIDEBAR: USING OPTION RATIOS
ARTICLE SYNOPSIS...USING OPTION RATIOS AnCall/put TRIN as a market sentiment indicator, page 64. To many traders and investors, the limited-risk aspect of the purchase of both call and put options is appealing. Many market followers believe that when the major activity
SIDEBAR: USING OPTION RATIOS
ARTICLE SYNOPSIS...USING OPTION RATIOS To many traders and investors, the limited-risk aspect of the purchase of both call and put ratios is appealing. Many market followers believe that when the major activity is concentrated in either calls (bullish expectations) or put
SIDEBAR: Univac 1 (1951)
ARTICLE SYNOPSIS...Univac 1 (1951) Delivered to the government in 1951 to help with the census, it cut human work hours from 200,000 to 28,000. On October 3, 1963, the computer was retired after 73,000 hours of operation and is now on display at the Smithsonian Institutio
SIDEBAR: Using BASIC Programs to Massage Data
ARTICLE SYNOPSIS...Using BASIC Programs to Massage Data Microsoft BASIC has become the standard programming language on today's PC's and clones. It comes in a couple of slightly different flavors: BASIC, BASICA and GWBASIC, for example, are the most common IBM and clone v
SIDEBAR: Variable-length moving average
ARTICLE SYNOPSIS...VARIABLE-LENGTH MOVING AVERAGE by Thom Hartle Tushar Chande's variable-length moving average (VIDYA) uses a measure of volatility to modify the smoothing constant used in an exponential moving average (EMA). In the article, Chande uses the Chande moment
SIDEBAR: WAMI SPREADSHEET by Technical Analysis, Inc.
ARTICLE SYNOPSIS...WAMI SPREADSHEET by Technical Analysis, Inc. The spreadsheet (seen in sidebar Figure 5) provides a way to evaluate the WAMI power and phase spectrum as a function of the WAMI parameters L, M and N. The first column starting with A5 contains the frequenc
SIDEBAR: WEIGHTED AVERAGE TRIN10 by Technical Analysis, Inc.
ARTICLE SYNOPSIS...WEIGHTED AVERAGE TRIN10 by Technical Analysis, Inc. The steps for calculating WTRIN10 begin with the calculation of the open TRIN10 (column G). The 10-day moving average of the individual day's value of the number of advancing shares (column C), number
SIDEBAR: WHAT IS A FAST FOURIER TRANSFORM? by Technical Analysis, Inc.
ARTICLE SYNOPSIS...WHAT IS A FAST FOURIER TRANSFORM? by Technical Analysis, Inc. There is an intuitive appeal in the concept that cycles are apparent in price data. The cycles do not appear to be consistent, but more of a combination that are longer- and shorter-term cycl
SIDEBAR: WRITING AND EXECUTING A SPREADSHEET MACRO
ARTICLE SYNOPSIS...WRITING AND EXECUTING A SPREADSHEET MACRO A macro is a series of commands or keystrokes that can be stored for use for repeated operations. For all popular spreadsheets, macros can take on two different forms. One is a series of keystrokes that can be r
SIDEBAR: WSJ FUTURES
ARTICLE SYNOPSIS...SIDEBAR: WSJ FUTURES In The Wall Street Journal , you will find the closing prices of both the S&P 500 index and S&P futures in the futures table of the Index Trading Section. This sidebar gives a sample of the August 21, 1990, futures prices.
SIDEBAR: Weighting schemes to computes implied volatility
ARTICLE SYNOPSIS...SIDEBAR: Weighting schemes to computes implied volatility This sidebar lists the types of weights based on volume, distance in- or out-of-the-money, and volatility.
SIDEBAR: What about lags?
ARTICLE SYNOPSIS...SIDEBAR: What about lags? What about the lags introduced by triangular moving averages? An example is the best way to study them. The index in Article Figure 2 is a sine curve with a period of 40 observations and an amplitude of 10.
SIDEBAR: What is Chi Square?
ARTICLE SYNOPSIS...What is Chi Square? If, in the past, records show that the market exhibited more rises than declines at a certain time, could it have been by chance? Yes. If a medication produced cures more often than average, could it have been luck? Yes. If so, how m
SIDEBAR: Your Trading Performance - Technical Analysis, Inc.
ARTICLE SYNOPSIS...YOUR TRADING PERFORMANCE - Technical Analysis, Inc. Koppel explains in The Intuitive Trader that trading performance is a direct reflection of how you, the trader, feel. When you feel good, therefore, you perform at high levels. Further, Koppel explains
SIDEBAR: Zweig's Super Model by Technical Analysis, Inc.
ARTICLE SYNOPSIS...Zweig's Super Model by Technical Analysis, Inc. Zweig's Super Model combines the monetary model and the momentum model to create the Super Model for identifying favorable stock market conditions. The monetary model is a collection of three indicators,
Sidebar: About Renko charts and box sizes by Robert Busby, Ph.D.
ARTICLE SYNOPSIS...Stocks & Commodities V. 23:1 (30-35): Sidebar: About Renko charts and box sizes by Robert Busby, Ph.D. Here's an amusing technical phenomenon. The P&F data is computed using a box reversal of one and is then manipulated into four columns in the followin
Sidebar: Calculating the KST by Technical Analysis, Inc.
ARTICLE SYNOPSIS...Sidebar: Calculating the KST by Technical Analysis, Inc. The suggested parameters for short, intermediate and long term can be found in sidebar Figure 1. There are three steps to calculating the KST indicator. First, calculate the four different rates o
Sidebar: Constructing MW patterns
ARTICLE SYNOPSIS...V.13:08 (357): Sidebar: Constructing MW patterns Here are the formulas for identifying MW patterns using a Microsoft Excel spreadsheet. Columns A through E contain the date, open, high, low and close of the data you wish to analyze. In sidebar Figures 1
Sidebar: Constructing a PAC chart by François Bertrand
ARTICLE SYNOPSIS...Stocks & Commodities V. 23:6 (46-50): Sidebar: Constructing a PAC chart by François Bertrand CONSTRUCTING A PAC CHART Here are the steps: 1. Create a "price grid" where each row in the grid represents a range of prices. Then identify the range of boxe
Sidebar: Correlation Coefficient.
ARTICLE SYNOPSIS...Sidebar: Correlation Coefficient by Thom Hartle The correlation coefficient, denoted as r , is an index that measures the degree and direction of a linear association between two variables. The values of the correlation coefficient can range from 1 to -
Sidebar: Defining The Commodity Channel Index by D.W. Davies
ARTICLE SYNOPSIS...Sidebar: Defining The Commodity Channel Index by D.W. Davies Presented here are the ins and outs of the commodity channel index, as defined by creator Donald Lambert and modified by the author. The commodity channel index (CCI) can be calculated using
Sidebar: Divergence LRS indicator in MetaStock by Markos Katsanos
ARTICLE SYNOPSIS...Sidebar: Divergence LRS indicator in MetaStock by Markos Katsanos DIVERGENCE LRS INDICATOR IN METASTOCK This indicator is plotted in the article's Figure 3 for FMXI.
Sidebar: Durbin Watson statistic by Ron McEwan
ARTICLE SYNOPSIS...Stocks & Commodities V. 22:4 (60): Sidebar: Durbin Watson statistic by Ron McEwan The Durbin Watson statistic is a test that looks for first-order autocorrelation in the residuals of a time-series regression. The residual for time period t is compared w
Sidebar: EDS code for MAS system by Steve Palmquist
ARTICLE SYNOPSIS...Stocks & Commodities V. 23:9 (42-47): Sidebar: EDS code for MAS system by Steve Palmquist EDS CODE FOR MAS SYSTEM (for use in AIQ Systems' TradingExpert Pro program) ! Look for stocks in a downtrend LowerCloses if HiVal([close],5) < LoVal([close],20
Sidebar: EasyLanguage Code for ProSuite 2001 by Massimiliano Scorpio
ARTICLE SYNOPSIS...Stocks & Commodities V. 23:7 (58-63): Sidebar: EasyLanguage Code for ProSuite 2001 by Massimiliano Scorpio FUNCTION msPattPos (Numeric Output) Input:Element(NumericSimple); value1=High[1]; value2=Low[1]; value3=(value1+value2)/2; value4=value1+AvgT
Sidebar: EasyLanguage for Vetrivel systems by Gomu Vetrivel
ARTICLE SYNOPSIS...Stocks & Commodities V. 23:11 (28): Sidebar: EasyLanguage for Vetrivel systems by Gomu Vetrivel Base System var:x(0); x=absvalue(c-c[1]); if c>average(c,10) and c[1]<average(c,10)[1] then buy at c; if c<average(c,10) and c[1]>average(c,10)[
Sidebar: Emerging market study by Robert Pelletier
Sidebar: Excel codes for trend trigger factor by M.H. Pee
ARTICLE SYNOPSIS...Stocks & Commodities V. 22:12 (28-36): Sidebar: Excel codes for trend trigger factor by M.H. Pee EXCEL CODES FOR TREND TRIGGER FACTOR The Excel spreadsheet in sidebar Figure 1 shows all the required calculations for the 15-day trend trigger factor (TTF
Sidebar: FRAMA EasyLanguage code by John F. Ehlers
ARTICLE SYNOPSIS...Stocks & Commodities V. 23:10 (81-82): Sidebar: FRAMA EasyLanguage code by John F. Ehlers FRAMA EASYLANGUAGE CODE Inputs: Price((H+L)/2); N(16); {N must be an even number} Vars: count(0); N1(0), N2(0), N3(0), HH(0), LL(0), Dimen(0), alpha(0), Filt(0);
Sidebar: Fitting a trendline by least squares by Arthur A. Merrill
ARTICLE SYNOPSIS...Stocks & Commodities V. 22:10 (86): Sidebar: Fitting a trendline by least squares by Arthur A. Merrill Trendlines usually are drawn through tops or bottoms. They also are drawn through the center of prices by a lagged moving average or by eye. A straigh
Sidebar: Four steps to calculate Lambert's commodity channel index
ARTICLE SYNOPSIS...Stocks & Commodities V. 22:10 (61): Sidebar: Four steps to calculate Lambert's commodity channel index Formulas are provided for the following four steps that calculate Lambert's commodity channel index. 1. Compute today's "typical" price, using high,
Sidebar: Leverage And Commodities by J.M. Malley
ARTICLE SYNOPSIS...Sidebar: Leverage And Commodities by J.M. Malley Calculating leverage and simulated trading spreadsheets using a Microsoft Excel 4.0 spreadsheet for calculating L and simulating trading.
Sidebar: MOMA and Excel by Stephan Bisse
ARTICLE SYNOPSIS...Stocks & Commodities V. 23:2 (22-27): Sidebar: MOMA and Excel by Stephan Bisse Simple moving averages are great tools for filtering out noise from time series, but all they can do is show where a time series has been. The only way that a moving average
Sidebar: MetaStock Code For TPR Explorations by Giorgos Siligardos, Ph.D.
ARTICLE SYNOPSIS...V. 22:3 (24-38): Sidebar: MetaStock Code For TPR Explorations by Giorgos Siligardos, Ph.D. METASTOCK CODE FOR TPR EXPLORATIONS Use the code below as a filter to identify TFs that last up to 60 trading days and produce retracements of no more than 50%.
Sidebar: MetaStock Code and Penny Stock Breakout System by Markos Katsanos
ARTICLE SYNOPSIS...Stocks & Commodities V. 23:1 (18-29): Sidebar: MetaStock Code and Penny Stock Breakout System by Markos Katsanos This sidebar contains the MetaStock Code and Penney Stock code for Markos Katsanos' penny stock breakout system. The majority of the stocks
Sidebar: MetaStock Codes: System Test, Flags & Pennants by Markos Katsanos
ARTICLE SYNOPSIS...Stocks & Commodities V. 23:5 (48-57): Sidebar: MetaStock Codes: System Test, Flags & Pennants by Markos Katsanos This sidebar contains: METASTOCK CODE: SYSTEM TEST, FLAGS & PENNANTS METASTOCK CODE FOR VFI FORMULA, and METASTOCK EXPLORATION FOR FLAG
Sidebar: MetaStock code for VFI by Markos Katsanos
Sidebar: MetaStock formulas for Darvas technique by Daryl Guppy
ARTICLE SYNOPSIS...Stocks & Commodities V. 23:6 (16-22): Sidebar: MetaStock formulas for Darvas technique by Daryl Guppy METASTOCK FORMULAS FOR DARVAS TECHNIQUE A MetaStock expert advisor developed by technician Matthew Ford implementing the modified Darvas technique was
Sidebar: MetaStock user formulas for UCI by Stuart Belknap, Ph.D.
ARTICLE SYNOPSIS...Stocks & Commodities V. 23:5 (28-35): Sidebar: MetaStock user formulas for UCI by Stuart Belknap, Ph.D. METASTOCK USER FORMULAS FOR UCI Volatility (Sigom%) yom:=100*(C-Ref(Mov(C,25,S),12))/ Ref(Mov(C,25,S),12); avyom:=Sum(yom,50)/50; varyom:=Sum(yom*yo
Sidebar: Money Management
ARTICLE SYNOPSIS...MONEY MANAGEMENT There are two common ways of trading an account. The way an account will be traded in real-time should be the same as the way the system was historically tested. Otherwise, the analysis will be incorrect.
Sidebar: Neoticker code and trading system to calculate AIM by L. Chan & L. Lin
ARTICLE SYNOPSIS...Sidebar: Neoticker code and trading system to calculate AIM by L. Chan & L. Lin - NEOTICKER CODE TO CALCULATE AIM - NEOTICKER TRADING SYSTEM WITH ADVANCE ISSUES MOMENTUM
Sidebar: Phase Change Index by M.H. Pee
ARTICLE SYNOPSIS...Stocks & Commodities V. 22:5 (34-35): Sidebar: Excel codes for PCI by M.H. Pee EXCEL CODES FOR PCI In this section, I will provide the Excel codes for the 35-day PCI. Sidebar Figure 1 (following page) shows all the required calculations for the 35-day P
Sidebar: Predicting turning points with cobweb theory by Chris Satchwell, Ph.D.
ARTICLE SYNOPSIS...Sidebar: Predicting turning points with cobweb theory by Chris Satchwell, Ph.D. - PREDICTING TURNING POINTS WITH COBWEB THEORY
Sidebar: RAJ rules with TradeStation by Xavier Maria Raj
ARTICLE SYNOPSIS...Stocks & Commodities V. 23:12 (50-52): Sidebar: RAJ rules with TradeStation by Xavier Maria Raj D1 = Current Day D2 = Next Day H1 = High of Current Day. . .
Sidebar: Risk of Ruin
ARTICLE SYNOPSIS...Sidebar: Risk of Ruin This brief sidebar discusses the risk of ruin- an estimate that indicates the probability that a trader will eventually lose all his trading capital- and the probability from zero to 100% that a trader will eventually lose all of h
Sidebar: Runs tests, Z score by Norman J. Brown
Sidebar: Select your own comfort zone by Rene Koch, Ph.D.
ARTICLE SYNOPSIS...Sidebar: Select your own comfort zone by Rene Koch, Ph.D. SELECT YOUR COMFORT ZONE
Sidebar: Setups by Ashwani Gujral
Sidebar: Swiss Army Knife EasyLangague Code by John F. Ehlers
Sidebar: TechniFilter Plus formula by Jacob Singer
Sidebar: The Elliott Wave by Thom Hartle
ARTICLE SYNOPSIS...V.14:1 (43): Sidebar: The Elliott Wave by Thom Hartle The Elliott wave principle is a method for classifying and forecasting market movement. The basic tenet is that markets move in a five-wave pattern in the direction of the trend. Once the five waves
Sidebar: The Parabolic Trading System
ARTICLE SYNOPSIS...Sidebar: The Parabolic Trading System by Dennis Meyers The parabolic time/price system was introduced by J. Welles Wilder in New Concepts in Technical Trading Systems. The trading concept itself is an automatic reversal system, in which the system alway
Sidebar: The T-Test
ARTICLE SYNOPSIS...Sidebar: The T-test by James Stakelum There were 24 trades produced in the simulation run using the September 1994 Deutschemark futures contract. This sidebar gives sample calculations of the T-test using these figures.
Sidebar: The geometry of chart patterns by Teresa Lo
ARTICLE SYNOPSIS...V. 22:9 (50-52): Sidebar: The geometry of chart patterns by Teresa Lo Pattern recognition is made simple using the swing lines of the classic swing indicator. Together with PowerSwing bars (not shown), the indicators act as visual aids, and basic geomet
Sidebar: Trading And The Emotional Boomerang by Adrienne Laris Toghraie
ARTICLE SYNOPSIS...Sidebar: Trading And The Emotional Boomerang by Adrienne Laris Toghraie Negative boomerang and Mr. Hyde evaluation.
Sidebar: VOMOMA by Stephen Bisse
ARTICLE SYNOPSIS...Stocks & Commodities V. 23:3 (38-41): Sidebar: VOMOMA by Stephen Bisse Simple moving averages (SMA) are great tools for filtering out noise from time series, but all they can do is show where a time series has been. The only way in which a moving averag
Sidebar: Volatility entry advisor for MetaStock by Jim Berg
ARTICLE SYNOPSIS...Stocks & Commodities V. 23:2 (14-20): Sidebar: Volatility entry advisor for MetaStock by Jim Berg MetaStock code for Jim Berg's Volatility entry advisor.
Sidebar: eSignal code for Breakout Colored Price Bars by Barbara Star, PhD
ARTICLE SYNOPSIS...Stocks & Commodities V. 23:2 (44-51): Sidebar: eSignal code for Breakout Colored Price Bars by Barbara Star, PhD
Sidebar: eSignal code for Directional Breakout Indicator by Barbara Star, PhD
ARTICLE SYNOPSIS...Stocks & Commodities V. 23:2 (44-51): Sidebar: eSignal code for Directional Breakout Indicator by Barbara Star, PhD
Stocks & Commodities V.8:14: SIDEBAR: OTHER CONTENDERS
ARTICLE SYNOPSIS...After Dow's Market Analyzer Plus and MetaStock Pro 2.0, two contenders remain: N2 and CompuTrac. The all-time price leader at over $3,000 is CompuTrac-- the originator of this entire genus of software. After a developmental slowdown several years ago,
V.10:9 SIDEBAR: Calculating the KST by Technical Analysis, Inc.
ARTICLE SYNOPSIS...Calculating the KST by Technical Analysis, Inc. KST formulas for short, intermediate, and long term daily or weekly data.
V.9:12 (482-485) SIDEBAR: Explaining r by Jim Bianco, C.M.T.
ARTICLE SYNOPSIS...EXPLAINING r Correlation analysis measures the degree of relationship between two variables. The correlation coefficient r is one popular statistical index for this purpose. The values for r range between +1 to -1; a +1 reading indicates that the two va
V.9:4 (160-162) SIDEBAR: RSI
ARTICLE SYNOPSIS...RSI --Thom Hartle, Editor Formula and explanation of the RSI, relative strength index, page 160.
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