Contents For
FEB1992

"Technician's Technician" Martin Pring by Thom Hartle
ARTICLE SYNOPSIS ...""Technician's Technician"" Martin Pring by Thom Hartle
Technicianwritermoney manager: Martin Pring was described as the ""technician's technician"" by
Barron's, and his diverse background can certainly confirm that. Pring received his initial training with a
Canadian investment dealer. His interest in technical analysis led him to join Storey, Boeckh in 1975,
publisher of The Bank Credit Analyst. ""The Pring Market Review"" was introduced in 1984 as an
extension of his interest in technical analysis. Along the way, he has lectured on and published a number
of works on investing and technic...
BY: Thom HartleSUBJECT: Interview

A LowRisk, HighPotential Return Option Strategy by JeanOlivier Fraisse, C.F.A.
ARTICLE SYNOPSIS ...A LowRisk, HighPotential Return Option
Strategy
by JeanOlivier Fraisse, C.F.A.
Can call options be used as a substitute for purchasing stocks? Covered calls  selling a call on stock
being held  is one lowrisk strategy, but profits can be limited on an up move. Another lowrisk
strategy, the long call plus cash equivalent, attempts to preserve capital while combining safety and
potentially high profit. JeanOlivier Fraisse explains how.
Options trading is not for the faint of heart. Beyond technical skills, it requires intuition and just plain
luck. Some option strategies, however, are ...
BY: JeanOlivier Fraisse, C.F.A.

A Wyckoff Approach To Future by Craig F. Schroeder
ARTICLE SYNOPSIS ...A Wyckoff Approach To Future
by Craig F. Schroeder
The Wyckoff approach, which has been a standard for decades, is as valid for futures as it is for stocks,
but even students of the technique appear to be unaware of its extended uses. Most technicians know that
Wyckoff analysis stresses volume and price, and as there is always uncertainty about the level of volume
on current and previous days for futures, it seems logical to conclude that Wyckoff and futures are not
compatible. This may seem logical, but it's wrong. According to Schroeder, Wyckoff is not simply about
price and volume; it is c...
BY: Craig F. Schroeder

Closing Tick by Arthur A. Merrill, C.M.T.
ARTICLE SYNOPSIS ...Closing Tick
by Arthur A. Merrill, C.M.T.
Buyers' market or sellers' market? Counting the upticks and downticks can give you a clue, Merrill says.
Are buyers reaching for stock? Do they have to bid a price higher than the last price given (an uptick)?
Or do sellers have to accept a lower price to get rid of their stock (a downtick)? A count of the upticks
and downticks should indicate whether it's a buyers' or sellers' market.
The closing tick is reported each day in the financial press. It shows, for various markets, the number of
stocks whose last change in price was an increase less the n...
BY: Arthur A. Merrill, C.M.T.

Developing An Edge by John Sweeney
ARTICLE SYNOPSIS ...Developing An Edge
by John Sweeney
Once you've developed something with an edge on the market, it's only natural to want to exploit it
mercilessly, making hay while the sun shineth, so to speak. The simplest way I know to do this is to add
more positions to your basic direction, buying dips when long, selling rallies when short. In my last three
Settlements, I've battered one harebrained idea into reasonably profitable shape so that it gives us good
trend selections and gets me out in a timely manner. However, there's more.
Once we're in a good trade (which we know via the maximum adverse ex...
BY: John Sweeney

Intermarket Analysis And The Deutschemark by Richard Forest
ARTICLE SYNOPSIS ...Intermarket Analysis And The Deutschemark
by Richard Forest
Richard Forest, a twotime Traders' Challenge winner, becomes a S TOCKS & COMMODITIES author with
this monograph on how intermarket analysis  that is, analyzing elements across more than one market
and across countries to predict the outcome of seemingly disparate elements  can be used to trade the
Deutschemark or other currencies. Forest points out that the U.S. dollar and the Deutschemark are
interrelated and the dollar and interest rates are interrelated, and thus, by watching interest rates the
behavior of the Deutschemark and ...
BY: Richard ForestSUBJECT: Intermarket Analysis

Profiting From Convergence by Ira G. Kawaller
ARTICLE SYNOPSIS ...Profiting From Convergence
by Ira G. Kawaller
Here are three ways to capitalize on the property of convergence  the fact that futures prices and spot
prices will necessarily come together at the futures expiration. The same concept can be applied to many
markets, including various other financial futures contracts, as well as assorted hard commodities.
LIBOR (London interbank offered rate) futures contracts are recognized as Chicago Mercantile
Exchange (CME) contracts that pertain to a $3 million onemonth Eurodollar time deposit, and the
Eurodollar futures contract refers to the contract w...
BY: Ira G. Kawaller
BY: Technical Analysis, Inc.

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 10day rate of change would be today's price divided by the price 10days
ago. Roc indicators are quite useful in wide trading range markets but can give misleading signals if a
strong trend is in force. In addition, a specific Roc oscillator will reflect only one cycle. Incorrect
interpretations will occur if another cycle length is dominant. Combining various Roc oscillators into a
single indicator is one method wi...
BY: Technical Analysis, Inc.
BY: Technical Analysis, Inc.
BY: Technical Analysis, Inc.

SIDEBAR: Calculating an 11period CCI
ARTICLE SYNOPSIS ...CALCULATING AN 11PERIOD 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 11period CCI for the Dow Jones Industrial Average. The first step is to
calculate the daily typical price. This is the high, low and close added together and divided by three. This step is
performed in column E. The formula for cell E2 is: ......
BY: Technical Analysis, Inc.
BY: Technical Analysis, Inc.

The Commodity Channel Index by Barbara Star, Ph.D.
ARTICLE SYNOPSIS ...The Commodity Channel Index
by Barbara Star, PhD.
A technical analytical standard that's often misunderstood, the Commodity Channel Index, which was
developed by technician/programmer Donald Lambert more than a decade ago, offers a broad range of
trading options to use alone or with other indicators.
Lambert, during the course of his research, noticed that many commodities displayed cyclic patterns that
reminded him of sine waves and formulated the theory based on that observation. The index, which
author Barbara Star explains does not calculate cycle lengths, instead helps to determine when...
BY: Barbara Star, Ph.D.

The Lindsay AD Indicator by Jerry Favors
ARTICLE SYNOPSIS ...The Lindsay AD Indicator
by Jerry Favors
The advancedecline line is handy for picking market tops, but lead time is a recurring problem, you say?
Favors suggests this variation as an alternative to overcome that bothersome predicament.
Most stude nts of te chnical analysis are familiar with the advancedecl ine line.To construct one, y ou
simply begin with some base num ber and i f today's advances ex ceed decl ines for t he day, you add t he
number of net advances (advances m inus decl ines) to that base num ber. If declines exceed advances for
the day, you subtract the number of net decli...
BY: Jerry Favors

Using Bollinger Bands by John Bollinger
ARTICLE SYNOPSIS ...Using Bollinger Bands
by John Bollinger
Trading bands, which are lines plotted in and around the price structure to form an envelope, are the
action of prices near the edges of the envelope that we are interested in. It's not the newest of ideas, but
as John Bollinger of Bollinger Capital Management points out, it's one of the most powerful concepts
available to the technically based investor, answering not whether absolute buy and sell signals are
being given but whether prices are high or low on a relative basis. Trading bands can forewarn whether
to buy or sell by using indicators to confi...
BY: John Bollinger