Article Archive For
APR1987
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A complete computer trading program part 2 by John F. Ehlers
ARTICLE SYNOPSIS ...A complete computer trading program part 2 by John F. Ehlers
This program works with the standard CompuTrac or CSI (Commodity Systems, Inc.) disk data
reading format (Table 1). The fundamental idea of this program is to take a 40-character string record for
each day's data and break it down into eight columns. You can consider each day's entry as a column. The
end result is a matrix that measures eight rows high by ""N"" columns long. The first row is the day of the
week and date as NYYMMDD for the year, month, and day. Thereafter, the rows are: Open, High, Low,
Close, Open Interest, Volume, ...
AUTHOR: John F. EhlersDATE: APR1987
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A helping hand from the Arms Index by James Alphier and Bill Kuhn
ARTICLE SYNOPSIS ...A helping hand from the Arms Index by James Alphier and Bill Kuhn
It was just about 20 years ago when Richard W. Arms, Jr. published in the pages of Barron's his new
index number which combined upside and downside volume with the traditionally watched statistics on
the number of advancing and declining issues. Arms' method of combining the ""raw head count"" of the
advances and declines with the total number of shares these stocks were trading was simple....
AUTHOR: James Alphier and Bill KuhnDATE: APR1987
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An after-Christmas story by Ron Jaenisch
ARTICLE SYNOPSIS ...An after-Christmas story by Ron Jaenisch
Santa completed his rounds at Christmas and went on a one-month vacation in Mexico. When he got
back to the North Pole he realized that it was once again time to raise funds for the Christmas toys. Since
it was only February he knew he had lots of time.
""I've got more than $40,000 left over from last Christmas and I'll be needing $4 million this year,"" he said
to Mrs. Claus.
She answered, ""Dear, this year instead of doing fund-raisers what about raising it by trading the futures
market?""
""You may have a point there,"" he said. ""After all, thes...
AUTHOR: Ron JaenischDATE: APR1987
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Calculating retracements by Hal Swanson
ARTICLE SYNOPSIS ...Calculating retracements by Hal Swanson
The following forecasting method is an approach to charting price retracement in stocks, commodities,
indices or any free market. It is a study of momentum, an evolution somewhere between Gann and Elliott
Wave, that allows traders to project an ideal price correction in both price and time.
In my approach, a price move of any proportion will attempt to retrace itself by 50% to 61.8% of the
initial price move. This retracement first occurs at twice the original momentum, or even greater, and
then completes the price correction with the same momentum as ...
AUTHOR: Hal SwansonDATE: APR1987
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Floor Talk by William Eng
ARTICLE SYNOPSIS ...Floor Talk by William Eng
I started my trading career at the MidAmerica Commodity Exchange more years ago than I care to
remember, or at this time, more years than I can remember. I learned a lot of lessons while trading there.
One lesson I learned, and one which I am extremely fond of repeating to new traders, is the one
concerning secrecy. No one can be told about your trading position, not even your wife. And if you are a
wife, no one can know, not even the kids!
There was a legendary trader at the MidAmerica Commodity Exchange by the name of Harold Goodman.
Most people don't know who thi...
AUTHOR: William F. EngDATE: APR1987
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Hardcard offspring by Howard Falk
ARTICLE SYNOPSIS ...Hardcard offspring by Howard Falk
About a year and a half ago the Hardcard appeared on the personal computer marketplace and quickly
became a very popular item. Hardcard is a 10 million byte hard disk that plugs into one of the expansion
slots (normally used to hold adapters for printers and displays) at the back of the IBM Personal
Computer. This product sold so well that it stimulated development of many similar disks-on-a-card. In
fact, there are now so many different card-mounted units available that they constitute a new category of
hard disks for personal computers.
From the start, the...
AUTHOR: Howard FalkDATE: APR1987
In This Issue John Sweeney, Associate Editor
AUTHOR: John SweeneyDATE: APR1987
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Letters To S&C by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Letters To S&C by Technical Analysis, Inc.
Where are we?
Editor,
I enjoy S&C and look forward to each new issue, including articles by guys getting off on esoteric
concepts that hardly anyone will ever bother with. Although I enjoy the theory, I do find it difficult to
understand the prevailing nuts and bolts philosophy of the S&C editorial staff concerning: can an
informed, ""off-the-floor"" speculator make any money in commodities? The February 1987 issue has a
glowing critique of some Gann software. It also contains Schwager's skepticism regarding most things.
John Sweeney is a part-time...
AUTHOR: Technical Analysis, Inc.DATE: APR1987
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Profitability of selected technical indicators by Steven L. Kille and Thomas P. Drinka, Ph.D
ARTICLE SYNOPSIS ...Profitability of selected technical indicators by Steven L. Kille and Thomas P. Drinka, Ph.D
In previous issues of this magazine, we have reported the results of applying moving averages,
momentum, Williams' %R, and Wilder's Relative Strength Index to Chicago Board of Trade corn and
long-term U.S. Treasury bond futures, as well as to silver on the Commodity Exchange of New York
(COMEX). In this issue, we report similar information for Eurodollar futures traded at the International
Monetary Market of the Chicago Mercantile Exchange. In addition, we will report results of applying
Wilder's Dire...
AUTHOR: Steven L. Kille and Thomas P. Drinka, Ph.DDATE: APR1987
AUTHOR: Technical Analysis, Inc.DATE: APR1987
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SIDEBAR: Retracement corrections by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...SIDEBAR: Retracement corrections by Technical Analysis, Inc.
In the ""real"" world, markets seldom trace out patterns exactly as our technical forecasting approaches
would have them behave. I find it's true in calculating ideal retracements, as well. But another advantage
of this method is recognizing when price action is deviating or moving away from the projected
correction pattern....
AUTHOR: Technical Analysis, Inc.DATE: APR1987
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Selecting the best individual stocks Wyckoff method of trading stocks part 9 by Jack K. Hutson
ARTICLE SYNOPSIS ...Selecting the best individual stocks Wyckoff method of trading stocks part 9 by Jack K. Hutson
Our discussion of Wyckoff's analytical methods have so far concentrated on deductive reasoning to
reach investment or trading conclusions. We first determined the position and trend of the general
market, then the positions and trend of group averages, and finally selected individual stocks based on
their ability to move in harmony with those larger trends.
The opposite approach-inductive reasoning-offers the experienced Wyckoff analyst a valuable way to
double check those conclusions. I emphasize ...
AUTHOR: Jack K. HutsonDATE: APR1987
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Using Maximum Adverse Excursions for stops by John Sweeney
ARTICLE SYNOPSIS ...Using Maximum Adverse Excursions for stops by John Sweeney
So often the key to success is the reverse of what we initially perceive. Young basketball players are
fascinated with the shot, never suspecting the game is won with fast feet. Traders focus on winning
signals when they should worry about when to admit they were wrong.
Here it is: It's more important to know when your trade is bad than it is to know how to get into it. Said
theoretically, ""minimize your maximum loss"" to win in the long run.
In Stocks & Commodities October 1985 issue, I described how to determine stop placement qu...
AUTHOR: John SweeneyDATE: APR1987
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Van K. Tharp, Ph.D.: Trader's Psychologist by John Sweeney
ARTICLE SYNOPSIS ...Van K. Tharp, Ph.D.: Trader's Psychologist by John Sweeney
In purely technical terms, Van K. Tharp is a psychological researcher and counselor specializing in
neurolinguistic programming. In the lay language of his clients, he's the specialist who helps them
unearth and change their unprofitable states of mind.
""Why I got into psychology, I have no idea. It just interested me,"" says Dr. Tharp, recalling the first
decisions that led him to a bachelor's degree in psychology from Beloit College and a doctorate in
biological psychology from the University of Oklahoma. He found, however, that h...
AUTHOR: John SweeneyDATE: APR1987
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Weekly price cycles: evidence of auto-correlation by Frank Tarkany
ARTICLE SYNOPSIS ...Weekly price cycles: evidence of auto-correlation by Frank Tarkany
This article is a continuation of my article last month which examined Dow Jones Industrial Average
weekly closing price data for price auto-correlation and cross-correlation with total weekly
NYSE volume. This work found cycles which compare favorably with previous cycle studies. In
your trading, you may reasonably use these cycles with more confidence than is typical. Also, there
may exist a 22-week fundamental price cycle, with harmonics, in the DJIA weekly close data....
AUTHOR: Frank TarkanyDATE: APR1987