Data Smoothing using a Kalman Filter by Vince Banes
ARTICLE SYNOPSIS ...Data Smoothing using a Kalman Filter
by Vince Banes
""The analysis of continuous pricing information works well with
this form of filtering""
The concept of optimum estimation was introduced by Dr. R.E. Kalman in 1960. The first major
application of his theories was to reduce the noise found in the data of modern navigation systems. With
these theories, system designers were able to use knowledge about the noise in a system to filter out its
effects and to improve system performance without additional hardware. This led engineers to apply his
principles to many different problems. These same...
ARTICLE SYNOPSIS ...Facelift for an Old Favorite
by Gregory L. Morris
""There are many ways in which the Relative Strength Index can
be adjusted and redefined.""
Technical analysts who have not heard of J. Welles Wilder, Jr., and more specifically, his Relative
Strength Index, probably have not delved into the art of technical analysis with much enthusiasm. The
Relative Strength Index (RSI) was first presented in his now-classic book, New Concepts in Technical
Trading Systems, published in 1978.
Those who are familiar with RSI know that it is a very useful momentum indicator because its range is
ARTICLE SYNOPSIS ...Gambler's Paradox
by Clifford J. Sherry
If you know the price of a commodity today, can you predict the price tomorrow? A week from
tomorrow? A month from tomorrow? Can you predict whether the price will increase or decrease and by
how much? The answer to that question depends on who you ask. Some people, like technical analysts,
who use such things as charts and moving averages, believe that you can. Others do not.
One reason this question is so difficult to answer is there is no general agreement about how commodity
prices are 'generated.' If the underlying 'process' is random and/or indep...
ARTICLE SYNOPSIS ...Gann Lines and Angles
by Robert Pardo
""Integrated use of Gann Lines and Angles... appreciably
enhances the accuracy of the identification and verification of
potential turning points.""
Gann Lines and Gann Angles are technical charting methods for the projection of Forward Support and
Resistance. This article will discuss these techniques, their applications, the concept of Forward Support
and Resistance, and the Principle of Coincidence.
The projection of potential future turning points is one of the more interesting and rewarding applications
of Forward Support and Resistan...
Revery: Computerized Stock Market Trading by Henry S. Patricoff
ARTICLE SYNOPSIS ...Revery: Computerized Stock Market Trading
by Henry S. Patricoff
A recent article in Barron's expressed the view that the options Index market has become so large that
possibly it is the tail that is wagging the dog.
Aside from a spectacular one or two day rise now and then, the stock market has been in a narrow trading
range for many past months. Traders who look for a fluctuating market find themselves frustrated by an
inability to eke out a profit either on the up or down side.
Could there be another reason for this grid-lock? Is it possible that portfolio managers and market trading
Riding for Profits with "Irv the Liquidator" by Richard J. Maturi
ARTICLE SYNOPSIS ...Riding for Profits with ""Irv the Liquidator""
by Richard J. Maturi
Wall Street Journal articles over the past few months have reported the financial dealings of Irwin
Jacobs, better known as ""Irv the Liquidator."" Jacobs invests in companies he considers financially sound
but in need of turning around. He has completed several such acquisitions (Bekins, Aegis) and has sold
other interests back to the pursued company for a handsome profit. Recent headlines include:
Disney Buys Out Jacobs' Stake for $158.1 Million
Group Led By Jacobs Plans Bid For Rest Of Lyon Metal Jacobs Increases Stake i...
ARTICLE SYNOPSIS ...Where to Put Your Stops
by John Sweeney
Stops protecting an initial entry position are like forward passes in football: Three things can happen to
you and only one of them is good!
1)You can be taken out of a strong adverse move early (That's good).
2)You can be taken out of a losing trade at the worst possible price (That's bad).
3)You can be taken out of a winning trade by an interim fluctuation (That's catastrophic!).
It's worth keeping in mind how these events come about, although the first is easy. Protection is what
stops are supposed to provide. You have presumably set a stop where...