STOCKS & COMMODITIES magazine. The Traders' Magazine

Article Archive For FEB1989

  • An Elliott Wave perspective: DJIA 400 or 6000? by Elliot Brenner

    ARTICLE SYNOPSIS ...An Elliott Wave perspective: DJIA 400 or 6000? by Elliot Brenner To put the stock market's present wave structure into perspective, I believe it is helpful to examine an important rule of Elliott Wave analysis--the Rule of Equality. This rule has been completely ""bent out of shape"" by analysts who have used it to confirm that a long-term bull market advance has ended and a long-term bear market correction has begun. What is the Rule of Equality? It states that two of the impulse waves (waves in the direction of the main trend) in any five-wave advance or decline will tend toward equality in...

  • Comparing wave predictions by Jack K. Hutson

    ARTICLE SYNOPSIS ...Comparing wave predictions by Jack K. Hutson The challenge in Elliott Wave analysis is identifying and counting the correct waves. ......

  • Creating prices for system testing by D. Howard Phillips

    ARTICLE SYNOPSIS ...Creating prices for system testing by D. Howard Phillips Technical trading systems are evaluated using historical, real-time or computer-generated data. All three data sources are useful, but computer-generated data can be the most powerful. In particular, using computer-generated price data that has a known trend percentage allows you to determine the performance of a trading system statistically. These ""trend price streams"" are helpful in evaluating any technical trading system, but are essential to evaluating, adaptive trading systems that learn from experience and change their trading r...

  • Individual stocks and MACD by Thomas Aspray

    ARTICLE SYNOPSIS ...Individual stocks and MACD by Thomas Aspray The Moving Average Convergence-Divergence method ? specifically MACD-Histogram (MACD-H) and MACD-Momentum (MACD-Mo) ? can be used to identify turning points in the commodity markets (See Stocks & Commodities, August and September 1988). MACD also is useful and valid for the cash indices as well as individual stocks. In this article, I will show you how these indicators work on individual stocks. Calculating MACD is a straightforward matter (Figure 1). The real work is in choosing the moving average period length. I calculate MACD-H using 10-, 20- a...

  • Letters To S&C

    ARTICLE SYNOPSIS ...Letters To S&C Copyrighting Editor, I'm teaching biology at college level. I'm also a private investor and one of your subscribers. I'm planning to offer the general public a mini-course on technical analysis of the stock market. I would appreciate your permission to quote some of the articles in S&C. Could you also let me know the regulations concerning such a use? GEORGES CHAUVETTE Laval, Quebec, Canada Write to Copyright office, Library of Congress, Washington, DC 20559 and ask for circular R21, ""Reproduction of copyrighted works by educators and librarians."" --Ed....

  • Opening range breakout Part 4 by Toby Crabel

    ARTICLE SYNOPSIS ...Opening range breakout Part 4 by Toby Crabel Opening range breakout is a trade in which entry is taken at a predetermined amount above or below the opening range. I've set this predetermined amount (the ""stretch"") through observation. (See Stocks & Commodities, September 1988.) To trade the opening range breakout, a buy stop is placed above the high of the opening range an amount equal to the stretch and a sell stop is placed the same amount below the low of the opening range. The first stop that is traded is your position. An inside day is one in which the daily range is completely within...

  • Short Interest by Arthur A. Merrill

    ARTICLE SYNOPSIS ...Short Interest by Arthur A. Merrill Short interest ? the sale of borrowed stock ? is one of the most useful tools of the technician. Short sales are made by pessimists, who expect prices to fall. If prices fall, the short seller can buy shares at a lower price and return the borrowed stock. Because short sales are made by pessimists, it would seem that a high short interest, displaying a large number of bearish investors, would be a bearish indicator. No way! A high short interest means that past sales have been made, future purchases must be made. High short interest, therefore, represents ...

  • Trading & scalping techniques by John Hill

    ARTICLE SYNOPSIS ...Trading & scalping techniques by John Hill Scalping techniques for off-floor traders abound. Here I'll present some that I've found worthy over many years of trading. I do not claim many original thoughts in this. I gratefully appreciate the work of many pioneers in technical analysis too numerous to mention. What I have done is contribute some creativity and reduce theoretical aspects to particle application. To understand these techniques, one of the first terms you'll need to know is pivot point. A pivot point is the highest/lowest point reached in a swing prior to the penetration of the l...

  • Winning parameters for customized MACD by John A. Narvarte

    ARTICLE SYNOPSIS ...Winning parameters for customized MACD by John A. Narvarte A common frustration with strategy testing is that it is not easy to find a profitable trading system, particularly if you include brokerage fees. Even with a strategy that has worked for you in practice, the test results are often not quite what you expect. One obvious reason for this is that computerized strategy testing is totally mechanical. Signals are issued and trades are executed automatically, according to a predetermined scheme without the benefit of past experience and without veto power. Another possibility is that the s...







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