ARTICLE SYNOPSIS ...Dynamic Multiple Time Frames by Robert Krausz, MH, BCHE This private trader, who was profiled in The New Market Wizards, discusses one of his techniques to trade the market based on an early signal for trend direction. Over the years I have studied many unique trading methods, and I have developed my own personal approach to trading the markets. I discussed some of my analytical and trading methods in the September 1995 STOCKS & COMMODITIES interview. Here's a follow-up, introducing how I combine two methods: the first I call multiple time frames, and the second I refer to as the Fibonacci T...
BY: Robert Krausz, MH, BCHESUBJECT: New Techniques
ARTICLE SYNOPSIS ...On Developing Trading Systems by Jeffrey Owen Katz, Ph.D.,with Donna L. McCormick This neural network developer details steps in developing a trading system using advanced technology. STOCKS & COMMODITIES readers have one thing in common: We have all taken on the challenge of attempting to forecast and trade the financial markets. For me, I first considered this challenge as the result of a chance remark. Since I had also become curious about trading at the time, I decided to take on the challenge of modeling the markets. That was more than a decade ago. Initially, I developed several model...
BY: Jeffrey Owen Katz, Ph.D.SUBJECT: Real World
ARTICLE SYNOPSIS ...On the Principle of Parsimony James O'Shaughnessy by Thom Hartle I wanted to understand why certain stocks went up and why others went down. I went looking for literature that would explain what I could see happening in the marketplace. I found that a lot of the available material was anecdotal. Where was the scientific methodology to support the claims? I was surprised that there wasn't much of that type of research available. ? James O'Shaughnessy Money manager and author James O'Shaughnessy, founder and president of O'Shaughnessy Capital Management, has been called a ""statistical guru"" ...
BY: Thom HartleSUBJECT: Interview
ARTICLE SYNOPSIS ...BASIC CODE FOR PHASE CALCULATION by John F. Ehlers This BASIC code finds the real part of the phasor (the horizontal component) and the imaginary part of the phasor (the vertical component) by summing the product of the price and the two sinusoids over one full cycle of the dominant cycle. The arctangent function locates the phase to be in the first or fourth quadrant. The quadrant ambiguity is removed by adding p to the phase angle is the real part is negative. A value of p/2 is arbitrarily added to the computed phase so the start of the cycle is referenced to a sinewave. The computed phase ...
BY: Technical Analysis, Inc.SUBJECT: Sidebar
ARTICLE SYNOPSIS ...NORMALIZE TO COMPARE You can't compare apples and oranges - but if you need to try, normalizing the data is a way to make unlikely comparisons possible. A traditional method is to map values from the raw data onto a standard normal or bell curve. This lets you state, for example, that the apple has a ""normal"" weight - that is, average compared with other apples - whereas the orange is perhaps heavy, weighing several standard units (called standard deviations) above the average weight for oranges....
BY: Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Statistically Analyzing Volume by William M. Goodman, Ph.D. Is an increase in the activity of a stock a meaningful indication of the direction of price? To answer this question, you can use statistical methods and most any spreadsheet to analyze the relationship between price and volume. Technical analysis is an ongoing creative process of determining order in a complex pattern. In general, the pattern is reduced to a graphical or mathematical model, but a model is simply not enough. You need confirmation, and by rigorously testing your methods, you gain confidence that your findings have va...
BY: William M. Goodman, Ph.D.SUBJECT: Trading Techniques
ARTICLE SYNOPSIS ...Stay In Phase by John F. Ehlers This cycles software specialist discusses an indicator based on cyclical analysis. A cycle is one market characteristic that can be scientifically measured. Although they can be measured, they are still maddening because they are in essence ephemeral; they come and they go. Our recent research, however, indicates there is a fundamental cycle parameter that leads us to the correct trading strategy for any current market mode. To find out more, we must start by defining two possible market modes, the trend mode and the cycle mode. In the trend mode, the correct ...
BY: John F. EhlersSUBJECT: Trading Techniques
BY: Technical Analysis, Inc.SUBJECT: Letters To S&C
ARTICLE SYNOPSIS ...TRADERS' TIPS Here is this month's selection of Traders' Tips, contributed by various developers of technical analysis software to help readers more easily implement some of the strategies presented. Internet users will also find these and past Traders' Tips on our home page at http://www.traders.com. METASTOCK FOR WINDOWS To recreate the Pathfinder currency trading system (described in the October 1996 interview with Nelson Freeburg) in MetaStock for Windows, open two charts, one of the desired currency and the other of Treasury bonds. For this example, I used the Swiss franc. Choose Tile ...
BY: Technical Analysis, Inc.SUBJECT: Traders' Tips
ARTICLE SYNOPSIS ...Transforming Trader Self-Talk by Adrienne Laris Toghraie Traders can talk themselves into disastrous losing scenarios. Here are the steps to avoid the problem. Self-talk controls your trading destiny. Self-talk is that inner voice that interprets what is happening and how you feel about it. Your self-talk can be positive, optimistic and encouraging so that it gives you the energy and confidence to stay the course in the face of the most overwhelming odds. Unfortunately, however, most of the traders with whom I have worked, regardless of their level of success, engage in negative self-talk, w...
BY: Adrienne Laris ToghraieSUBJECT: Trading Psychology
ARTICLE SYNOPSIS ...Ascending And Descending Triangles by Thomas Bulkowski Last issue, symmetrical triangles and the ways to trade with this particular chart formation were the topic at hand. This month, we present two more variations of the triangle, the ascending and descending triangles, their attributes and how to use them in your investment decisions. Triangles are a class of chart formations that serve as a pictorial description of a market that is marking time. Often, a triangle represents a consolidation after a trend, allowing for the news driving the trend to be fully discounted by the market particip...
BY: Thomas BulkowskiSUBJECT: Novice Traders' Notebook