Article Archive For
FEB2001
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Buff Up Your Moving Average by Buff Dormeier
ARTICLE SYNOPSIS ...Moving Averages On Steroids
Buff Up Your
Moving Averages
by Buff Dormeier
Want better results? Combine your moving averages with
volume and see what happens.
Why should technicians only consider
open/high/low/close numbers
and time in forming price
averages? The averages I use enhance
performance by modifying
the simple moving average with volume information.
Volume represents the number of participants willing to
wager at various points of price and time. My price averages
measure the commitment expressed through a close,
weighted by that day's volume compared to the total volume
during the...
AUTHOR: Buff DormeierDATE: FEB2001SUBJECT: Trading Techniques
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Double-Bottom Confirmation Strategy by Arthur Hill
ARTICLE SYNOPSIS ...How To Get Into The Trade Double-Bottom
Confirmation Strategy
Here's a strategy using a tried-and-true pattern to achieve
faster entry signals and improve the reward-to-risk ratio.
by Arthur Hill
The double bottom that emerged
in the Dow Jones Industrial Average
(DJIA) and many other securities
in October 1998 is a
memorable formation, a powerful
reversal. With the power behind
it in mind, I developed an
entry strategy based on the double bottom, or the second test
of a key support level. I call it the double-bottom confirmation
strategy.
DOUBLE BOTTOMS
Double bottoms are considered to be ...
AUTHOR: Arthur HillDATE: FEB2001SUBJECT: Trading Techniques
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Interview: Tom Rietz Of Iowa Electronic Markets by John Sweeney
ARTICLE SYNOPSIS ...Trade The Future(s)
Tom Rietz Of Iowa
Electronic Markets
Iowa Electronic Markets (IEM) are real-money futures markets
in which students and professionals trade contracts of
everything from US politics to Federal Reserve monetary
policy to computer returns. These markets are operated by
faculty at the University of Iowa Tippie College of Business
as part of its research and teaching mission.
Thomas Rietz, Associate Professor of Finance at the University
of Iowa, is an Iowa Electronic Markets manager.
Rietz uses a combination of theoretical, empirical, and experimental
work to research two prim...
AUTHOR: John SweeneyDATE: FEB2001SUBJECT: Interview
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Letters To S&C
ARTICLE SYNOPSIS ...PHASOR DISPLAYS
Editor,
I don't like to be negative, but I must
admit that John Ehlers's article in the
December 2000 S&C, "Phasor Displays,"
as usual, frustrates me. On a
scale of one to 10, I'd grade him, brilliance:
9, clarity of exposition: 1.
For example, a small puzzlement: In
Figure 7, in quadrant II there's a note,
"point 28." Isn't this point 23? There's
a point 28 near the top of the chart, in
quadrant I. In quadrant I, there's a note,
"counter clockwise segment." Isn't the
swing bar 21, 22, 23?41 a clockwise
swing?
It could have been helpful to include
a chart showing typical trend...
AUTHOR: Technical Analysis, Inc.DATE: FEB2001SUBJECT: Letters To S&C
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Market Breadth: Volume by Dennis D. Peterson
ARTICLE SYNOPSIS ...Determining Market Health
Market Breadth: Volume
Of all the market breadth measures to determine the overall
health of the market, volume is perhaps one of the most
difficult to use.
by Dennis D. Peterson
It only takes a few stocks to push
major indices such as the Dow
Jones Industrial Average, the
Standard & Poor's 500, and the
Nasdaq Composite up, and that's
especially true for the Nasdaq
Composite, which is weighted
by market capitalization. To gain
insight into market momentum, traders turn to market breadth
indicators. Breadth measures how much of the market is
participating in an index...
AUTHOR: Dennis D. PetersonDATE: FEB2001SUBJECT: Novice Traders' Notebook
Opening Position by John Sweeney
AUTHOR: John SweeneyDATE: FEB2001SUBJECT: Opening Position
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Position Sizing With Monte Carlo Simulation by Michael R. Bryant, Ph.D.
ARTICLE SYNOPSIS ...Need to know how much to put on your next trade?
You can figure it out with 95% reliability using this
simulation technique.
Consider this: Jane and Joe started
trading the same Standard &
Poor's 500 futures trading
system at the same time. They
each began with $100,000 and
both followed the system
exactly. But 12 months later,
Joe's account was worth $200,000, while Jane's
account was worth only $50,000. What was the
difference in their trading? Position sizing.
As his account equity increased, Joe increased the
number of contracts in a near-optimal manner,
resulting in a sharp runup in equi...
AUTHOR: Michael R. Bryant, Ph.D.DATE: FEB2001SUBJECT: Trading Techniques
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Q&A by Don Bright
ARTICLE SYNOPSIS ...NASDAQ STOPS
Are Nasdaq stops possible?My broker
tells me that you can't protect yourself
on the downside by putting in a stoploss
sell order if your stock is listed on
the Nasdaq. Is that true? -- Lana
Huddleston
Good question. Since there is no actual
marketplace with a single entity in control
of the pricing of the stock, as there is on
the New York Stock Exchange (NYSE)
and the American Stock Exchange
(AMEX) (specialist system), then who
would be holding your stop order? Since
the Nasdaq is a fragmented market (using
many market makers instead of a single
specialist), there is no practical...
AUTHOR: Don BrightDATE: FEB2001SUBJECT: Q&A
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The Chartist by Edwin Polokoff
ARTICLE SYNOPSIS ...A Cautionary Tale The Chartist
Charts don't lie, just in case you needed a reminder.
by Edwin Polokoff
I shall never forget George. When I
first met him, he was a man in his
late 50s, somewhat paunchy, of
medium height, dark hair streaked
with gray, silver-rimmed glasses
shielding tired eyes -- George
looked docile. A closer look betrayed
his seemingly easygoing
manner. His hands shook slightly
but uncontrollably, especially when he ate or wrote.
My conclusion was that he had been through too
many stock market wars, and the wear and tear on
his nerves, stress from his occupation, had created
...
AUTHOR: Edwin PolokoffDATE: FEB2001SUBJECT: War Story
Traders Tips
AUTHOR: Technical Analysis, Inc.DATE: FEB2001
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Traders' Resource: Trading Systems
ARTICLE SYNOPSIS ...Trading Systems
Trading systems can help take the subjective
interpretation out of trading decisions
by providing automated buy and
sell signals based on preprogrammed
rules. Trading systems are usually computer
programs but can also be a realtime
service, issuing signals or a set of
published rules to follow. They can rely on one or more trading disciplines, such as artificial intelligence,
Gann analysis, astrology, indicator sets, or custom
rules. This month in Traders' Resource, we present a list of
publicly available trading systems, most of which are sold as
software packages for persona...
AUTHOR: Technical Analysis, Inc.DATE: FEB2001SUBJECT: Trading Systems