APR 2000 STOCKS & COMMODITIES Magazine

Article Archive For APR2000

Are Your Profits Robust? by Steve Notis

ARTICLE SYNOPSIS ...Are Your Profits Robust? by Steve Notis Your trading system probably has a set of parameters you think are the most profitable. But is it the most consistent? Here's a technique to find the most robust set that will give you regular profits. For those who use trading systems, the most important concern should not be to find parameters that yield the greatest profit; rather, it should be to find the most robust parameters. Anyone can tweak a system until it shows startling results, but unless those parameters are robust, they will not hold up in real-world trading. Several testing methods ca...

AUTHOR: Steve NotisDATE: APR2000SUBJECT: Trading Techniques

How To Use Tick, Tiki, TRIN For Day Trading by Terry O'Brian

ARTICLE SYNOPSIS ...How To Use Tick, Tiki, TRIN For Daytrading by Terry O 'Brian These three indicators can be important guides in implementing trading strategies. Could they help you? The tick, the tiki, and the trading index (TRIN) -- indicators that are for the most part unknown outside trading circles -- can be important guides in implementing trading strategies. All other indicators are derived from these three; more important, they're easy to use and interpret. Critical to the use and understanding of any indicator, but especially in regard to these three, is the context in which we use them and the questio...

AUTHOR: Terry O'BrianDATE: APR2000SUBJECT: Indicators

Interview: Technician Walter Deemer by John Sweeney

ARTICLE SYNOPSIS ...The Grand Old Man Technician Walter Deemer Walt Deemer began his Wall Street career in 1963 as a Merrill Lynch research trainee. Since then, he has seen the ebb and flow of Wall Street through booms and busts, spending time with the Manhattan Fund in the mid-1960s -- arguably the best known of the Go-Go funds of the period -- and with Putnam Management along the way, managing to be one of the founding members of the Market Technicians Association (MTA)in the early 1970s before forming Deemer Technical Research in 1980, offering market strategies and insights to institutional clients on a consul...

AUTHOR: John SweeneyDATE: APR2000SUBJECT: Interview

Kagi Charts by Jayanthi Gopalakrishnan

ARTICLE SYNOPSIS ...Kagi Charts by Jayanthi Gopalakrishnan If you've ever seen a reference to this particular form of candlestick charting and wondered what they were, you can find out here. The financial markets exist because of the complementary relationship between bulls and bears -- one cannot exist without the other. The key is to recognize which has control of the markets and identify when that control changes. One way to do this is through kagi charts. Kagi charts, which have also been known as key charts,price range charts, hook charts, delta charts, and string charts, originated in Japan in the 1870s ...

AUTHOR: Jayanthi GopalakrishnanDATE: APR2000SUBJECT: Trading Techniques

Letters

ARTICLE SYNOPSIS ...The editors of S&C invite readers to submit their opinions and information on subjects relating to technical analysis and this magazine. This column is our means of communication with our readers. Is there something you would like to know more (or less) about? Tell us about it. Without a source of new ideas and subjects coming from our readers, this magazine would not exist. Address your correspondence to: Editor, STOCKS & COMMODITIES, 4757 California Ave. SW, Seattle, WA 98116-4499, or E-mail to editor@traders.com. Letter-writers must include their full name and address for verification. Let...

AUTHOR: Technical Analysis, Inc.DATE: APR2000SUBJECT: Letters To S&C

Picking Out Your Trading Trend by Martin J.Pring

ARTICLE SYNOPSIS ...Pick Out Your Trading Trend by Martin J.Pring There are three kinds of trends: short, intermediate, and long term. This veteran trader and analyst explains how you can spot them and use them. Technical analysis assumes that all the knowledge, hopes, and fears of both active and inactive market participants are reflected in one thing: the price. Even if I am in a cash position, I am still influencing the price because it would be higher if my cash were invested. Thus, prices are determined by psychology. This would just be an interesting observation, except that psychology moves in trends,and...

AUTHOR: Martin J. PringDATE: APR2000SUBJECT: Classic Techniques

Ram Trading by Lorne W. Rae

ARTICLE SYNOPSIS ...Ram Trading by Lorne W. Rae With this simple daytrading method using candlestick formations and the opening action, this author demonstrates a high-probability, low-risk trading strategy that gets you in and out in a single day. Just as the battering ram had a single purpose in the earliest wars -- namely, punching a hole in a barred city gate -- what I refer to as the Ram trading method is focused on a singular goal: to identify and implement low-risk trades that make money. To a trader, time is all-important. For stock traders, the shorter the time interval between buys and sells, the less ...

AUTHOR: Lorne W. RaeDATE: APR2000SUBJECT: New Techniques

Replicharts by Zack Hill

ARTICLE SYNOPSIS ...Chart Patterns That Repeat Replicharts by Zack Hill Certain chart formations can forecast major trading activity. Take a look. Answer me this. If we can accept that established patterns occur in cloud formations, crowd psychology, and criminal behavior, why can't we also accept that stock charts have patterns that repeat with similar reliability? Since stock charts display the buying and selling of a crowd, why not assume that reactions to certain events would be quite predictable, just as they are in our everyday lives? Here's an example. My wife and her mother went shopping one morning r...

AUTHOR: Zack HillDATE: APR2000SUBJECT: Visual Instruction

Traders' Tips

ARTICLE SYNOPSIS ...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 some previous Traders' Tips on our home page at http://www.Traders.com. METASTOCK MetaStock's Expert Advisor, in version 6.5 or higher, is a collection of powerful tools that keep you informed of the current technical state of a chart. When attached to a chart, an Expert keeps you informed of the state of these conditions by various methods:...

AUTHOR: Technical Analysis, Inc.DATE: APR2000SUBJECT: Traders' Tips

Traders' Resource: Courses and Seminars

ARTICLE SYNOPSIS ...Courses And Seminars They say that the more you learn, the more you know you need to learn. This is true in trading. If you're not fully prepared when you go to trade, you'll be the one that the smart money profits from. Education is crucial in trading. If you're not fully prepared to trade the markets, you might as well be gambling -- with the odds on the house's side. But help is available. Readers often ask us how they can further their knowledge and skills in trading (that is, in addition to reading STOCKS & COMMODITIES!). Some readers write us asking for certification programs, some wan...

AUTHOR: Technical Analysis, Inc.DATE: APR2000SUBJECT: Traders' Resource