An Elliott Wave perspective: DJIA 400 or 6000? by Elliot Brenner
ARTICLE SYNOPSIS ...An Elliott Wave perspective: DJIA 400 or 6000?
by Elliot Brenner
To put the stock market's present wave structure into perspective, I believe it is helpful to examine an
important rule of Elliott Wave analysis--the Rule of Equality. This rule has been completely ""bent out of
shape"" by analysts who have used it to confirm that a long-term bull market advance has ended and a
long-term bear market correction has begun.
What is the Rule of Equality? It states that two of the impulse waves (waves in the direction of the main
trend) in any five-wave advance or decline will tend toward equality in...
Creating prices for system testing by D. Howard Phillips
ARTICLE SYNOPSIS ...Creating prices for system testing
by D. Howard Phillips
Technical trading systems are evaluated using historical, real-time or computer-generated data. All
three data sources are useful, but computer-generated data can be the most powerful. In particular, using
computer-generated price data that has a known trend percentage allows you to determine the
performance of a trading system statistically. These ""trend price streams"" are helpful in evaluating any
technical trading system, but are essential to evaluating, adaptive trading systems that learn from
experience and change their trading r...
ARTICLE SYNOPSIS ...Individual stocks and MACD
by Thomas Aspray
The Moving Average Convergence-Divergence method ? specifically MACD-Histogram (MACD-H)
and MACD-Momentum (MACD-Mo) ? can be used to identify turning points in the commodity
markets (See Stocks & Commodities, August and September 1988). MACD also is useful and valid for
the cash indices as well as individual stocks. In this article, I will show you how these indicators work on
Calculating MACD is a straightforward matter (Figure 1). The real work is in choosing the moving
average period length. I calculate MACD-H using 10-, 20- a...
ARTICLE SYNOPSIS ...Letters To S&C
I'm teaching biology at college level. I'm also a private investor and one of your subscribers. I'm planning
to offer the general public a mini-course on technical analysis of the stock market. I would appreciate
your permission to quote some of the articles in S&C. Could you also let me know the regulations
concerning such a use?
Laval, Quebec, Canada
Write to Copyright office, Library of Congress, Washington, DC 20559 and ask for circular R21,
""Reproduction of copyrighted works by educators and librarians.""
ARTICLE SYNOPSIS ...Opening range breakout
by Toby Crabel
Opening range breakout is a trade in which entry is taken at a predetermined amount above or below
the opening range. I've set this predetermined amount (the ""stretch"") through observation. (See Stocks &
Commodities, September 1988.) To trade the opening range breakout, a buy stop is placed above the high
of the opening range an amount equal to the stretch and a sell stop is placed the same amount below the
low of the opening range. The first stop that is traded is your position.
An inside day is one in which the daily range is completely within...
ARTICLE SYNOPSIS ...Short Interest
by Arthur A. Merrill
Short interest ? the sale of borrowed stock ? is one of the most useful tools of the technician. Short
sales are made by pessimists, who expect prices to fall. If prices fall, the short seller can buy shares at a
lower price and return the borrowed stock.
Because short sales are made by pessimists, it would seem that a high short interest, displaying a large
number of bearish investors, would be a bearish indicator. No way! A high short interest means that past
sales have been made, future purchases must be made. High short interest, therefore, represents ...
ARTICLE SYNOPSIS ...Trading & scalping techniques
by John Hill
Scalping techniques for off-floor traders abound. Here I'll present some that I've found worthy over
many years of trading. I do not claim many original thoughts in this. I gratefully appreciate the work of
many pioneers in technical analysis too numerous to mention. What I have done is contribute some
creativity and reduce theoretical aspects to particle application. To understand these techniques, one of
the first terms you'll need to know is pivot point. A pivot point is the highest/lowest point reached in a
swing prior to the penetration of the l...
Winning parameters for customized MACD by John A. Narvarte
ARTICLE SYNOPSIS ...Winning parameters for customized MACD
by John A. Narvarte
A common frustration with strategy testing is that it is not easy to find a profitable trading system,
particularly if you include brokerage fees. Even with a strategy that has worked for you in practice, the
test results are often not quite what you expect.
One obvious reason for this is that computerized strategy testing is totally mechanical. Signals are issued
and trades are executed automatically, according to a predetermined scheme without the benefit of past
experience and without veto power.
Another possibility is that the s...