Article Archive For
APR1993
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Candlesticks And Intraday Market Analysis by Gary S. Wagner and Bradley L. Matheny
ARTICLE SYNOPSIS ...Candlesticks And Intraday Market Analysis
by Gary S. Wagner and Bradley L. Matheny
Can the much-ballyhooed candlestick method be helpful in intraday trading? To find out, Gary Wagner
and Brad Matheny went through one day's trading via candlesticks for one contract and came up with
some intriguing results.
Traders who understand the candlestick technique are now placing greater emphasis on these patterns
when making trading decisions. Many of these traders have discovered the useful factor present in
candlesticks not generally found in other oscillators or indicators: candlesticks actually de...
AUTHOR: Gary S. Wagner and Bradley L. MathenyDATE: APR1993
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Combining Volume And Market Change by Anthony J. Macek
ARTICLE SYNOPSIS ...Combining Volume And Market Change
by Anthony J. Macek
Price and volume is a never-ending fount of ideas for judging the market's current technical condition.
Here, S&C author and newsletter publisher Anthony Macek combines the magnitude and direction of
price change with volume to produce a technical indicator.
Numerous studies have been conducted regarding the importance of monitoring market volume to
determine its effect on market performance and direction. Market analyst Richard Arms developed a
technique, now known as the Arms index, that indicates whether the advancing or declining sto...
AUTHOR: Anthony J. MacekDATE: APR1993
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Filtering Breakouts by Adam White
ARTICLE SYNOPSIS ...Filtering Breakouts
by Adam White
Which is more effective as a signal filter, the average directional movement index (A DX), the indicator
developed by J. Welles Wilder to measure market trend intensity, or the unsmoothed version, the
directional index (DX)? Adam White of the Technical Traders Bulletin measures the performance of a
breakout trading system using the ADX or the DX as signal filters.
In hindsight, few things look better on a chart than a successful breakout -- a profitable move to a
better price signaled by the crossing of an established support or resistance level. But for ever...
AUTHOR: Adam WhiteDATE: APR1993
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Leo Fasciocco: Investor's Business Daily by Thom Hartle
ARTICLE SYNOPSIS ...Leo Fasciocco: Investor's Business, Daily by Thom Hartle
Investor' s Business Daily columnist Leo Fasciocco came by his expertise in the market the way STOCK &
COMMODITIES has always emphasized -- research, research, research. As a financial journalist first for
the Philadelphia Evening Bulletin and then U.K. wire service Reuters in New York, Chicago and in Los
Angeles, Fasciocco joined Investor's Daily (as it was called then) at the very beginning, where he has
been writing the regular stock market column since. Fasciocco has also written a series of articles
designed to educate ,the average ...
AUTHOR: Thom HartleDATE: APR1993SUBJECT: Interview
AUTHOR: Joe LuisiDATE: APR1993
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Oscillator Variations by Barbara Star
ARTICLE SYNOPSIS ...Oscillator Variations
by Barbara Star
Here, Barbara Star takes a 1985 STOCKS & COMMODITIES article by John Navarte called ""Reading
between the lines"" and uses it as the basis for a tutorial on oscillators for trading.
Oscillators are handy tools for traders. An oscillator plots the difference between two sets of data.
Popular methods include the difference between the current closing price and a moving average, the
current closing price and a closing price n periods ago or the difference between two moving averages.
Traders use oscillators to identify changes in market momentum, temporary ...
AUTHOR: Barbara Star, Ph.D.DATE: APR1993
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Placing Stop-Loss Orders by Curtis Arnold
ARTICLE SYNOPSIS ...Placing Stop-Loss Orders
by Curtis Arnold
Unsuccessful small speculators tend to waste time and money trying to reinvent the wheel rather than
using what has proved to work in the past: Trade with the trend, cut losses short and let profits run.
Here, STOCKS & COMMODITIES contributor Curtis Arnold assumes that you accept those investment tenets
and aspire to adhere to them. If you do, you will greatly benefit from this lesson on the correct placement
of stop-loss orders.
When you talk about stops, you're talking about an exit system. An exit system is the most difficult
part of any trading p...
AUTHOR: Curtis ArnoldDATE: APR1993
AUTHOR: Technical Analysis, Inc.DATE: APR1993
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SIDEBAR: LEAST-SQUARES CYCLE AND THE TIME SERIES MOVING AVERAGE
ARTICLE SYNOPSIS ...LEAST-SQUARES CYCLE AND THE TIME
SERIES MOVING AVERAGE
The least-squares cycle oscillator calculates a regression line that is a best fit of the data for the selected
time period, and then the difference between the current closing price and the current value of the
least-squares regression line is determined. This value is smoothed with an n period moving average. To
understand the calculation of the least-squares regression line, we begin with the formula for a straight
line:
......
AUTHOR: Technical Analysis, Inc.DATE: APR1993
AUTHOR: Technical Analysis, Inc.DATE: APR1993
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SIDEBAR: Spreadsheet Calculations by Thom Hartle
ARTICLE SYNOPSIS ...SPREADSHEET CALCULATIONS
This set of oscillators is easily calculated in
a spreadsheet (sidebar Figure 1). The first
four column are the date, high, low and
closing price of Boeing (BA). Column E is
the calculation of the 24-period moving average,
the basis for the price excess oscillator.
The formula for cell E25 is:
......
AUTHOR: Thom HartleDATE: APR1993
AUTHOR: Technical Analysis, Inc.DATE: APR1993
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The ADX by Thom Hartle
ARTICLE SYNOPSIS ...THE ADX
The calculation of the average directional movement (ADX)
indicator is built on the intuitive notion that a trend is a series
of price ranges extending in a consistent direction. In sidebar
Figure 1, example A, the second day's trading range is higher
than the first day's trading range, indicating positive directional
movement. ......
AUTHOR: Thom HartleDATE: APR1993
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Traders' Tips
ARTICLE SYNOPSIS ...TRADERS' TIPS
r ADVANCE-DECLINE LINE AND MCCLELLAN STUDIES I am frequently asked by new MetaStock users how
to create the advance-decline line and McClellan studies in MetaStock. The procedure for doing this has
changed for users who have upgraded to MetaStock 3.0, so I will explain how to create these market
timing studies in MetaStock Professional 3.0.
The first step is to collect data for advancing issues and declining issues using two separate files. Next,
create a composite security for these files. This is accomplished from the File Maintenance menu. To
access the File Maintenance men...
AUTHOR: Technical Analysis, Inc.DATE: APR1993
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Treasury Bond Yields: A Neural Net Analysis Approach by John Kean
ARTICLE SYNOPSIS ...Treasury Bond Yields: A Neural Net Analysis
Approach
by John Kean
In this article, STOCKS & COMMODITIES contributor John Kean uses a neural network to look for
predictable patterns between Treasury bond yields and two of the driving forces behind the bond market,
inflation and government deficits.
Treasury bond yields are one of the most closely watched financial statistics. Aside from bond traders,
those in the stock, commodities and foreign exchange markets know that moves in the Treasury bonds
often set off intermarket waves that spread out like a stone thrown into a pond. Besides the fin...
AUTHOR: John KeanDATE: APR1993