ARTICLE SYNOPSIS ...Letters To S&C by Technical Analysis, Inc. Editor, I'm so glad I subscribe to STOCKS & COMMODITIES. What great reading from great minds! I would like to encourage Tushar Chande to write more articles describing his ideas. I enjoyed his past articles in S&C and I would like to read more. I also enjoy any article that deals with trading longer-term positions, such as weekly charts. EUGENE T. McENERY III via E-mail TESTING AND HARD WORK: KEYS TO SUCCESS Editor, Technical analysis and trading systems are often considered pseudo-sciences. One reason for this reputation is the widespread use o...
BY: Technical Analysis, Inc.SUBJECT: Letters To S&C
ARTICLE SYNOPSIS ...Managing The Future With Managed Futures by Victor Sperandeo The stock market has been trending higher for a record period, and a correction is long overdue. What can you do to stay in the game, besides reduce your risk? Consider diversifying your assets beyond just a basket of stocks. Here's the rationale. When the equity market tops, what should you expect to happen? We can't know for certain, but we do have a model on which to base our expectations. The Japanese market is on record as having had the longest bubble in history, a span of 288 months between 1965 and 1990 - a total of 24 year...
BY: Victor SperandeoSUBJECT: Money Management
ARTICLE SYNOPSIS ...INTERVIEW - Modeling the Markets with Nelson Freeburg by Thom Hartle I never could claim that I was a very good technical trader using conventional chart patterns. This absence of positive results in my own trading, combined with my academic background in quantitative modeling, led me, finally, in the direction of system development.? Nelson Freeburg Nelson Freeburg, editor and publisher of market research newsletter Formula Research, has focused his energies on the development of systematic approaches to participating in the stock, bond and futures markets. What are the key issues and steps...
BY: Thom HartleSUBJECT: Interview
ARTICLE SYNOPSIS ...On Symmetrical Triangles by Thomas Bulkowski You might have seen triangle formations and wondered what they were all about. You might have been caught on the losing side of a descending triangle and wondered what happened. For those of you who've wondered what was going on, here's the first part of a two-part refresher course on the three basic types of triangle formations and how to use them in your investment decisions. Before I buy a stock, I search the price chart for familiar patterns. The last thing I want to do is to purchase a stock, only to see it drop down beyond my stop, resulting...
BY: Thomas BulkowskiSUBJECT: Novice Traders' Notebook
ARTICLE SYNOPSIS ...Pork Bellies And The COT Index by Scott W. Barrie When presented with sentiment data, you'll need to know when to follow the crowd or be a contrarian. In our continuing look at using the COT index to predict market direction for commodities, here's a study on the COT report as an indicator for trading pork bellies. Previously, we showed some common misconceptions about the Commitments of Traders data and reevaluated some of the conventional interpretations surrounding it. Using the July corn contract on Chicago Board of Trade as the basis for our study, we determined how accurate the various...
BY: Scott W. BarrieSUBJECT: Indicators
BY: Technical Analysis, Inc.SUBJECT: Quick-Scans
BY: Technical Analysis, Inc.
BY: Technical Analysis, Inc.SUBJECT: Quick-Scans
BY: Technical Analysis, Inc.SUBJECT: Quick-Scans
ARTICLE SYNOPSIS ...In the July 1996 STOCKS & COMMODITIES, Jay Kaeppel described a technique for evaluating gold stocks using the Barron's Gold Mining Index (GMI) relative to gold bullion. He showed that analysis of the ratio between the GMI and the price of gold bullion could establish favorable and unfavorable outlooks for the direction of gold stocks and gold bullion. Nelson Freeburg modified Kaeppel's method, which he referred to as the K-ratio, and developed a trading system for the gold stock's group. The following discussion details Freeburg's precious metals switch fund system. The first step in the trad...
BY: Technical Analysis, Inc.
ARTICLE SYNOPSIS ...The Pathfinder currency trading system uses the same model for trading each of four currency futures contracts - the yen, the Deutschemark, the Swiss franc and the British pound. The trading rules are based on a set of conditions, which in turn are based on the closing values of a set of indicators. The first set of indicators is the six-day, nine-day and an 18-day simple moving average of the currency's daily closing price. A buy alert occurs when today's nine-day moving average crosses above today's 18-day moving average. This is just a buy alert; two more conditions must be satisfied before...
BY: Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Seasonality And The Presidential Election Cycle by Mark Vakkur, M.D. Can you combine politics with seasonality? With the Presidential election coming up, here's a review of some trading strategies for the stock market built around this event. The quadrennial Presidential election-year cycle has a profound influence on the stock market. Stocks tend to advance most strongly during the year immediately preceding and the year of the election, but only tread water during the other two years of the four-year cycle. How, then, might a trader incorporate this phenomenon into a trading system and com...
BY: Mark Vakkur, M.D.SUBJECT: Trading Techniques
ARTICLE SYNOPSIS ...The Andrews Line by Ron Jaenisch Here's a charting method to determine market trend and identify reversal points to set up trading opportunities. When Alan Hall Andrews taught investors how to use what is now referred to as the Andrews pitchfork charting technique , he probably never envisioned that this aspect of his method would be found today in many technical analysis computer programs. His goal, through his original 60-page course on the action-reaction method, of which the pitchfork charting technique is part, was to teach how to make money by forecasting markets. His course was a summ...
BY: Ron JaenischSUBJECT: Classic Technique
ARTICLE SYNOPSIS ...The Siren Call Of Optimized Trading Systems by Dennis Meyers, Ph.D. Today's software for trading systems can take you down some dangerous paths. Here's how to avoid one mistake. With the advent of today's high-performance desktop computers and software as well as the availability and cheapness of historical data, trading systems are more prevalent than ever. These systems usually hold out the promise, either implicitly or explicitly, of assured trading rewards. The majority of the trading systems being offered to the trader today are presented with hypothetical track records showing the exce...
BY: Dennis Meyers, Ph.D.SUBJECT: System Design
ARTICLE SYNOPSIS ...Those Losses That The Trader Creates by Adrienne Laris Toghraie Traders may move from periods of success to periods of loss, but the losses may be created by the trader and not the markets. Here are some guidelines to identifying this problem and how to overcome it. It still never fails to amaze me how an incident in a trader's childhood can determine whether he can succeed. These incidents, too painful to remember or acknowledge, are often swept under the carpet by sensitive and vulnerable people. While these experiences may be concealed within the trader's consciousness, the damaging psych...
BY: Adrienne Laris ToghraieSUBJECT: Trading Psychology
ARTICLE SYNOPSIS ...TRADERS' TIPS METASTOCK FOR WINDOWS The K-ratio model, which is discussed in Editor Thom Hartle's interview with Nelson Freeburg, is a technique used by Freeburg to generate signals in the precious metals market. The K-ratio model is based on the ratio of Barron's Gold Mining Index (GMI) to gold bullion, over which Bollinger bands are plotted to generate adaptive signals that conform to patterns of price behavior in the precious metals market. To recreate Freeburg's precious metals switch fund system in MetaStock for Windows, you must first create the K-ratio as a composite security. To do ...
BY: Technical Analysis, Inc.SUBJECT: Traders' Tips