ARTICLE SYNOPSIS ...Chart Congestion Analysis
by Holliston Hill
Congestion areas appear in all markets whether it be gold, soybeans, IBM, or the Dow Jones Industrial
Average. Being able to recognize the different types of congestion areas and knowing what they will lead
to, can help the investor reap great profits.
A congestion area is a price level in which neither the bulls or bears are in complete control.
Accumulation and distribution are other names for congestion areas. The market cannot make up its mind
in which direction it wants to go. Congestion areas are pauses in the market action; many traders step...
ARTICLE SYNOPSIS ...Day Trading With Stochastics
by John F. Kepka
I have been using the Stochastics oscillator ""K"" and ""%D"" for well over a year (RE: May and Sep 1984
issues of Technical Analysis of Stocks & Commodities magazine). I use Stochastics, (in conjunction with
other indicators), with futures intraday data from half-hourly down to 1 minute bar charts. Initially, I tried
to use the Stochastics indicator as outlined in Technical Analysis of Stocks & Commodities, but I quickly
learned that the ""clearly illustrated"" patterns were largely non-existent in real time intraday trading. By
following the gen...
ARTICLE SYNOPSIS ...Letters to Technical Analysis
This column is our means of communicating with our subscribers and serves as an outlet for questions
and answers. Please feel free to write about anything that you would like to know more (or less) about or
pass along to the rest of us. We all run across trading techniques, services and products that have proven
to be useful to some degree under different market conditions. Without a constant source of new ideas
and subject matter coming from our readers this magazine would not exist. Each issue is designed to hold
at least one idea or clarify one subject that sh...
ARTICLE SYNOPSIS ...Probability of Investment Ruin
by Sherwin Kalt
When a client opens a managed account with as commodity trading advisor, the general practice is to
specify a percentage loss at which the account will be closed. The natural question then arises as to what
are the chances that this will happen within a given time period, for example, six months or a year. Given
certain empirically determined characteristics of the trading system, this paper provides a method for
solving this problem directly. The method can also be used in analyzing investments other than
commodity managed accounts. It can be us...
Selling Stock With Investor Relations by Carolyn Kott Washburne
ARTICLE SYNOPSIS ...Selling Stock With Investor Relations
by Carolyn Kott Washburne
A veteran stock broker took aside a new trainee to give him some advice. ""There is an old saying in
this business,"" said the veteran. ""When the president of a company wants to buy you lunch, the stock is
overpriced. If he refuses to pick up the tab, buy the stock immediately.""
He paused and smiled at the puzzled trainee. ""What that means is that by the time a company goes on the
road to pitch its stock, there isn't much of a story there for investors. Wait until things get better.""
The veteran's advice gives a clue to the...
ARTICLE SYNOPSIS ...Stock Market Double-Header?
by Bill Dunbar
On the long side it's easy to make money in stocks at the beginning of a well-defined bull market. If
you pick your issues by throwing darts or consulting your astrologer, or even listening to your investment
advisor, you can hardly go wrong. The chances are on your side. But it's possible to improve your
performance if you're in the right industry group. Usually all groups rise during the first few months of
the bull market, but then some go on to higher ground, some start pitching about and some keel over and
slide down the river. If you pick your ...
ARTICLE SYNOPSIS ...Theft? Commodity Floor Brokers
by Allen D. Hanson
Questionable trading practices in the Securities business became very evident to me during my years as
product manager for a major corporation and later as a licensed floor broker.
In those days, I owned individual seats on two of the nation's registered stock and commodity exchanges.
I routinely carried commodity positions so large that they required daily reporting to the CEA
(Commodities Exchange Authority), the governing body at that time. I also acted as an independent floor
broker for a major brokerage house and other firms, always doin...