ARTICLE SYNOPSIS ...Cyclical analysis of stock prices with astrology by Robert S. Kimball Over the past four years I have participated in a research project that has sought to test the validity of a rather controversial and unorthodox approach to cyclical analysis. The primary objective of this project was to test some of the more obscure elements of W.D. Gann's effort to establish correlations between individual stock prices and planetary cycles. Of course, a semantic roadblock immediately presents itself: to even suggest that planetary cycles could have a relationship to stock prices causes an audible shudder...
BY: Robert S. Kimball
ARTICLE SYNOPSIS ...Developing a personal trading style The Wyckoff method of trading Part 14 by Jack K. Hutson Trading the stock market with the Wyckoff Method is as much a test of personality and personal perseverance as it is a test of analytic education. Wyckoff was strictly a loner when it came to studying and trading the stock market. He believed the best way, the only way, his students would become profitable technical analysts was to rely on their own intelligence and to develop an inner fortitude against inevitable mistakes. To his way of thinking, mastering the technical aspects of his method was only...
BY: Jack K. Hutson
ARTICLE SYNOPSIS ...How to use Maximum Entropy by John F. Ehlers MESA is an acronym for Maximum Entropy Spectrum Analysis, a forecasting method that filters the ""noise"" from time series data and can uncover useful cycles. The advantages of the maximum entropy method over Fourier analysis is that high-resolution identification of cycles is possible using an extremely short database. This is important for short-term trading because cycles can fade or change before they are recognized by more conventional approaches. Maximum entropy also is not subject to the windowing or end-effect distortions that Fourier trans...
BY: John F. Ehlers
ARTICLE SYNOPSIS ...Letters to S&C by Technical Analysis, Inc. FRASER OUT Editor, We talked today regarding the citation of Fraser Financial Publications in the August issue of Stocks & Commodities. This firm was stated as a source of books or pamphlets on the Wykcoff Method. However, no address or telephone number was given for Fraser Financial Publications. I would appreciate your sending me a card with this information when you locate it. CHARLES MARCELLUS -New York, NY...
BY: Technical Analysis, Inc.
ARTICLE SYNOPSIS ...SIDEBAR: Prices and Cycles by Technical Analysis, Inc. There appears to be a correlation between the magnitude of a stock price move and the strength of the planetary cycle. Article Figure 3 is a scatter plot on which the vertical scale denotes the number of positive points for a given corporation at the crest of a wave. The horizontal scale indicates the percentage the stock price increased between the predicted buy date and the predicted sell date. Each dot represents one successful transaction and each x represents a losing transaction....
BY: Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Spread investing - Advanced concepts Part 3 by Frank Taucher In the previous installment of this series, I discussed the two tools I use in my seasonal spread investment program to locate trades that are profitable, reliable and consistent. The objective of the program is to develop a diversified portfolio of many energized spread trades that can be used throughout the year for investment purposes. Now we will discuss some more advanced concepts. We will review money management concepts, the purpose and use of trading filters, ""legging"" techniques and stop payment. Again, it will help if w...
BY: Frank Taucher
ARTICLE SYNOPSIS ...The loss trap by Van K. Tharp, Ph.D. Do you remember playing with a toy called the Chinese Finger Trap when you were a child? This toy is a woven straw cylinder with an opening at each end just large enough for a finger. Once you insert a finger in each end, you are in the trap. You pull to get out and the trap closes around your fingers. The harder you pull to get out, the tighter the cylinder compresses around your fingers. The more you struggle with the trap, the more ensnared you become. Only when you let go and relax does the trap let go of you. Investment losses form a similar trap for...
BY: Van K. Tharp, Ph.D.
ARTICLE SYNOPSIS ...Understanding Randomness Exercises For Statisticians by Clifford J. Sherry, Ph.D. Author: David Salsburg Publisher: Marcel Dekker, NY, 1983 If you are an investor, whether you believe in the efficient market hypothesis or not, it important for you to understand how a random process works. This book consists of a series of exercises that are designed to help the reader distinguish between patterns that occur in a series of numbers (stock prices, etc.) as a result of random noise and those that occur because of some underlying structure. Some understanding of elementary statistics (chi-squar...
BY: Clifford J. Sherry, Ph.D.