ARTICLE SYNOPSIS ...Candlesticks And Intraday Market Analysis by Gary S. Wagner and Bradley L. Matheny Can the much-ballyhooed candlestick method be helpful in intraday trading? To find out, Gary Wagner and Brad Matheny went through one day's trading via candlesticks for one contract and came up with some intriguing results. Traders who understand the candlestick technique are now placing greater emphasis on these patterns when making trading decisions. Many of these traders have discovered the useful factor present in candlesticks not generally found in other oscillators or indicators: candlesticks actually de...
BY: Gary S. Wagner and Bradley L. Matheny
ARTICLE SYNOPSIS ...Combining Volume And Market Change by Anthony J. Macek Price and volume is a never-ending fount of ideas for judging the market's current technical condition. Here, S&C author and newsletter publisher Anthony Macek combines the magnitude and direction of price change with volume to produce a technical indicator. Numerous studies have been conducted regarding the importance of monitoring market volume to determine its effect on market performance and direction. Market analyst Richard Arms developed a technique, now known as the Arms index, that indicates whether the advancing or declining sto...
BY: Anthony J. Macek
ARTICLE SYNOPSIS ...Filtering Breakouts by Adam White Which is more effective as a signal filter, the average directional movement index (A DX), the indicator developed by J. Welles Wilder to measure market trend intensity, or the unsmoothed version, the directional index (DX)? Adam White of the Technical Traders Bulletin measures the performance of a breakout trading system using the ADX or the DX as signal filters. In hindsight, few things look better on a chart than a successful breakout -- a profitable move to a better price signaled by the crossing of an established support or resistance level. But for ever...
BY: Adam White
ARTICLE SYNOPSIS ...Leo Fasciocco: Investor's Business, Daily by Thom Hartle Investor' s Business Daily columnist Leo Fasciocco came by his expertise in the market the way STOCK & COMMODITIES has always emphasized -- research, research, research. As a financial journalist first for the Philadelphia Evening Bulletin and then U.K. wire service Reuters in New York, Chicago and in Los Angeles, Fasciocco joined Investor's Daily (as it was called then) at the very beginning, where he has been writing the regular stock market column since. Fasciocco has also written a series of articles designed to educate ,the average ...
BY: Thom HartleSUBJECT: Interview
ARTICLE SYNOPSIS ...Monitoring Equity For Market Analysis by Joe Luisi STOCKS & COMMODITIES contributor Joe Luisi presents a strategy for using a graph of your profits and losses to pick either trend-following or a trading range trading system. It is well known -- or it should be -- that every trader should plot equity to see graphically how their trading results are faring. But what may not be as well known is that traders can actually use equity as an analytical tool. Equity analysis can indicate whether the markets are trending or trading sideways and what approach a trader should use. The basic approach to u...
BY: Joe Luisi
ARTICLE SYNOPSIS ...Oscillator Variations by Barbara Star Here, Barbara Star takes a 1985 STOCKS & COMMODITIES article by John Navarte called ""Reading between the lines"" and uses it as the basis for a tutorial on oscillators for trading. Oscillators are handy tools for traders. An oscillator plots the difference between two sets of data. Popular methods include the difference between the current closing price and a moving average, the current closing price and a closing price n periods ago or the difference between two moving averages. Traders use oscillators to identify changes in market momentum, temporary ...
BY: Barbara Star, Ph.D.
ARTICLE SYNOPSIS ...Placing Stop-Loss Orders by Curtis Arnold Unsuccessful small speculators tend to waste time and money trying to reinvent the wheel rather than using what has proved to work in the past: Trade with the trend, cut losses short and let profits run. Here, STOCKS & COMMODITIES contributor Curtis Arnold assumes that you accept those investment tenets and aspire to adhere to them. If you do, you will greatly benefit from this lesson on the correct placement of stop-loss orders. When you talk about stops, you're talking about an exit system. An exit system is the most difficult part of any trading p...
BY: Curtis Arnold
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 with a 10-day moving average (S). Then smooth this value with a five-day moving average for the short-term (ST) trend. ......
BY: Technical Analysis, Inc.
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 value of the least-squares regression line is determined. This value is smoothed with an n period moving average. To understand the calculation of the least-squares regression line, we begin with the formula for a straight line: ......
BY: Technical Analysis, Inc.
ARTICLE SYNOPSIS ...MetaStock custom formulas for price offset and momentum oscillators....
BY: Technical Analysis, Inc.
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 basis for the price excess oscillator. The formula for cell E25 is: ......
BY: Thom Hartle
ARTICLE SYNOPSIS ...THE CANDLESTICK METHOD Illustration of a basic candlestick body....
BY: Technical Analysis, Inc.
ARTICLE SYNOPSIS ...THE ADX The calculation of the average directional movement (ADX) indicator is built on the intuitive notion that a trend is a series of price ranges extending in a consistent direction. In sidebar Figure 1, example A, the second day's trading range is higher than the first day's trading range, indicating positive directional movement. ......
BY: Thom Hartle
ARTICLE SYNOPSIS ...TRADERS' TIPS r ADVANCE-DECLINE LINE AND MCCLELLAN STUDIES I am frequently asked by new MetaStock users how to create the advance-decline line and McClellan studies in MetaStock. The procedure for doing this has changed for users who have upgraded to MetaStock 3.0, so I will explain how to create these market timing studies in MetaStock Professional 3.0. The first step is to collect data for advancing issues and declining issues using two separate files. Next, create a composite security for these files. This is accomplished from the File Maintenance menu. To access the File Maintenance men...
BY: Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Treasury Bond Yields: A Neural Net Analysis Approach by John Kean In this article, STOCKS & COMMODITIES contributor John Kean uses a neural network to look for predictable patterns between Treasury bond yields and two of the driving forces behind the bond market, inflation and government deficits. Treasury bond yields are one of the most closely watched financial statistics. Aside from bond traders, those in the stock, commodities and foreign exchange markets know that moves in the Treasury bonds often set off intermarket waves that spread out like a stone thrown into a pond. Besides the fin...
BY: John Kean