ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:5 (28-35): Cycles In Time And Money by Stuart Belknap, Ph.D. Wouldn't you like to be able to identify top and bottom extremes and get signals to open new positions or close current ones? This may help. When was the last time you thought about using cycles to design a trading system? Many trading systems depend on cycle indicators, and in this article I will focus on systems derived from oscillators. These days, there are literally hundreds of oscillator-based cycle indicators, each scalable by one or more parameters. In addition, most toolbox programs provide a sim...
BY: Stuart Belknap, Ph.D.SUBJECT: Cycles
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:5 (36-42): Darvas-Style Trading by Daryl Guppy The markets have changed since the 1960s, with the weekly trading volumes of those days often exceeded by a single day of trading now. With that in mind, can classic techniques such as Darvas-style trading still work? Nicholas Darvas was a Hungarian-born dancer who successfully traded the market in the early 1960s. His book, How I Made Two Million Dollars In The Stock Market, is a classic. It describes a unique approach to understanding the nature of trend behavior. The Darvas trading style uses trend analysis based en...
BY: Daryl GuppySUBJECT: Classic Technique
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:5 (16-23): Daytrading With Market Value by Donald L. Jones Markets are complex, self-regulating, and driven by feedback. The message is clear: Decipher the feedback to understand your market. How can you understand the market? With feedback. What is feedback? Feedback is market response. For instance, heavy demand leads to increased market activity; feedback is apparent as more ticks, more volume, increased volatility, and higher prices. You already know this, but how can you interpret this data? Most technical indicators are not adequately coupled to the market be...
BY: Donald L. JonesSUBJECT: Trading Technique
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:5 (48-57): Detecting Breakouts From Flags & Pennants by Markos Katsanos Here's a system to identify and trade flag and pennant formations. In my previous article, I wrote about the measuring implications, duration, and identifying characteristics of flags and their variations, and promised to present a system to identify and trade these short-term and highly profitable formations. I constructed a viable system by distilling the most useful statistics together with technical observations of 100 flag and pennant samples. I optimized the test parameters in further out...
BY: Markos KatsanosSUBJECT: Chart Patterns
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:5 (47): Explore Your Options by Tom Gentile Got a question about options? Tom Gentile is the chief options strategist at Optionetics (www.optionetics.com), an education and publishing firm dedicated to teaching investors how to minimize their risk while maximizing profits using options. To submit a question, post it to our website at http://Message-Boards.Traders.com. Answers will be posted there, and selected questions will appear in a future issue of S&C. WHAT TO DO WHEN ASSIGNED Q: If I hold a stock in my portfolio and I sell calls on the stock, what do I do if...
BY: Tom GentileSUBJECT: Explore Your Options
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:5 (68-74): Interview: Tim Wood Of Cycles News & Views by Jayanthi Gopalakrishnan Tim W. Wood is editor and publisher of Cycles News & Views, which provides technically based research and analysis on the stock market, gold, bonds, the dollar, and more. This research is primarily based around two proven disciplines. One, classic Dow theory, was a method of market analysis developed by Charles H. Dow more than 100 years ago, and Wood's application of Dow theory is based on the original writings of Charles Dow and his predecessors. The other discipline he uses is a quan...
BY: Jayanthi GopalakrishnanSUBJECT: Interview
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:5 (10-12): Letters To S&C by Technical Analysis, Inc. The editors of S&C invite readers to submit their opinions and information on subjects relating to technical analysis and this magazine. This column is our means of communication with our readers. Is there something you would like to know more (or less) about? Tell us about it. Without a source of new ideas and subjects coming from our readers, this magazine would not exist. Address your correspondence to: Editor, STOCKS & COMMODITIES, 4757 California Ave. SW, Seattle, WA 98116-4499, or email to Editor@Traders.co...
BY: Technical Analysis, Inc.SUBJECT: Letters To S&C
BY: Jayanthi GopalakrishnanSUBJECT: Opening Position
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:5 (62-63): Overcoming Bias by Gary Norden Trading biases may be affecting your decision-making abilities. Being aware of them can help you overcome them. It has always amazed me how, in a business in which we essentially have a 50% probability of making money, about 80% of private traders lose. In the futures market where technical analysis is more prominent, the failure rate is even higher-- more than 90%. Could it be that a majority of traders are doing something drastically wrong? WHAT ARE TRADERS DOING? From my experience as a local trader on LIFFE, running in...
BY: Gary NordenSUBJECT: Real World
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:5 (43): Q&A by Don Bright SINCE YOU ASKED Confused about some aspect of trading? Professional trader Don Bright of Bright Trading (www.stocktrading.com), an equity trading corporation, answers a few of your questions. To submit a question, post your question to our website at http:// Message-Boards.Traders.com. Answers will be posted there, and selected questions will appear in a future issue of S&C. BID/ASK EQUATIONS Q: Is there a mathematical equation to figure out the bid/ask price? How do computers handle that information? A: There is not really any mathema...
BY: Don BrightSUBJECT: Q&A
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 AND PENNANT PATTERN-RECOGNITION SYSTEM...
BY: Markos KatsanosSUBJECT: Sidebar
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*yom,50)/50-avyom*avyom; som:=Ref(Sqrt(varyom),-12); sigom:=Mov(som,25,S); sigom; . . ....
BY: Stuart Belknap, Ph.D.SUBJECT: Sidebar
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:5 (82-88): Traders' Resource: Advisory Services by Technical Analysis, Inc. Advisory services are all over the place, as this listing shows. You have plenty of choices and price points to consider. One key factor is whether the outfit you're checking out is a Registered Investment Advisor (RIA) or a registered Commodity Trading Advisor (CTA). Though it doesn't weed out the undependable advice, the act of registration puts the person or persons under the government's scrutiny. In this listing, filled in by the companies themselves, you'll find those who have RIA and/...
BY: Technical Analysis, Inc.SUBJECT: Traders' Resource
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:5 (75-81): Traders' Tips by Technical Analysis, Inc. Here is this month's selection of Traders' Tips, contributed by various developers of technical analysis software, all to help readers more easily implement some of the strategies presented in this issue. Stuart Belknap's article ""Cycles In Time And Money"" describes an algorithm for ploting a centered cycle oscillator. Trader's Tips supplies code for his indicator, the universal cycle index (UCI), which is intended to be ""in phase"" with the market and to operate in real time. Code is given for the following...
BY: Technical Analysis, Inc.SUBJECT: Traders' Tips
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:5 (13-15): Websites For Traders: fmcenter.org by David Penn FMCENTER.ORG For some, the Federal Reserve Board, its operations, and intentions are shrouded in mystery, if not paranoia and conspiracy theory. One regular advertisement on Internet and AM radio teases listeners darkly with the invitation to purchase a book that promises to: ?"[E]xpose the almost inconceivable stories of deceit, conspiracy, and media cover up involving the creation of the Federal Reserve System, an entity that emerges as a secret government more powerful than the duly constituted governme...
BY: David PennSUBJECT: Websites For Traders
BY: David PennSUBJECT: Working Money
BY: Stephen W. BigalowSUBJECT: Working Money