Article Archive For
JAN1999
-
In Shock by Adrienne Laris Toghraie
ARTICLE SYNOPSIS ...In Shock
by Adrienne Laris Toghraie
Trading is unique in that the uncertainty of the markets
brings to bear an unusual stress level. What should you do if
your trading suddenly turns south, or worse, a tragic event
occurs?
Recently, I was in an automobile
accident when a cab driver sped
through a four-way stop sign as
I was entering the intersection.
For a spell, I felt lost in time. In
that moment of unreality, I even
thought that it was all a dream.
I was in shock.
What is shock? According to
the dictionary, it can be a sudden,
jarring impact or the result of a disturbance in your
equilib...
AUTHOR: Adrienne Laris ToghraieDATE: JAN1999SUBJECT: Trading Psychology
-
Interview: The Nature Of The Market Is Change: Bruce Kamich by Thom Hartle
ARTICLE SYNOPSIS ...The Nature Of The Market Is Change:
Bruce Kamich
Technicians follow numerous markets, and some specialize in specific areas,
such as equities or fixed income. With the Treasury bond yields recently hitting
lows that were unthinkable by most only a few years ago, we thought that
talking to a specialist in this area would be apropos. Meet Bruce Kamich, who
is senior vice president for research, development and management of the
electronic financial information service MoneyWatch for McCarthy, Crisanti
& Maffei, and currently, he's on the board for the Market Technicians
Educational Foundation. ...
AUTHOR: Thom HartleDATE: JAN1999SUBJECT: Interview
-
Life Cycle Model Of Crowd Behavior by Henry O. Pruden, Ph.D.
ARTICLE SYNOPSIS ...Life Cycle Model Of Crowd Behavior
by Henry O. Pruden, Ph.D.
For a large part of the past 30
years, the discipline of finance
has been under the aegis of the
efficient market hypothesis.
But in recent years, enough
anomalies have piled up, cracking
its dominance of the field.
As a consequence, the arrival
of new thinking to explain
market behavior has warranted
attention, and its name is behavioral
finance.
Behavioral finance proponents believe that markets reflect
the thoughts, emotions, and actions of normal people as
opposed to the idealized economic investor underlying the
efficient mar...
AUTHOR: Henry O. Pruden, Ph.D.DATE: JAN1999SUBJECT: Behavioral Finance
-
Multiple Time Frame Trading Using Swing Channels by Robert Krausz, MH, BCHE
ARTICLE SYNOPSIS ...Multiple Time Frame Using Swing Robert Krausz, who was featured in Jack Schwager's
New Market Wizards, follows up his previous article
on the new Gann swing chartist with a detailed
presentation on using channels for setting up trading
opportunities.
In my previous article on dy-namic
multiple time frames, I
introduced one of my own ap-proaches
to trading: The con-cept
of multiple time frame trad-ing.
The essence of the strategy
is easy: Use the higher time frame
price activity to define the trad-able
trend as well as potential
support and resistance levels. For example, if you are
trading th...
AUTHOR: Robert Krausz, MH, BCHEDATE: JAN1999SUBJECT: New Techniques
-
Seasonal Adjustment Of Time Series Data by George R. Arrington, Ph.D.
ARTICLE SYNOPSIS ...Seasonal Adjustment
Of Time Series Data
by George R. Arrington, Ph.D.
While time series data is the heart of most technical trading
systems, some have a tendency to reflect seasonal patterns;
for example, agricultural commodities tend to follow harvest
cycles. Here's how to adjust data to see nonseasonal patterns
more clearly.
Time series data, which is data
such as most price and volume
data collected sequentially over
time and usually at fixed inter-vals,
is the basic fuel for most
technical trading systems. As
new data becomes available, it
is used to recalculate the value
of technical ...
AUTHOR: George R. Arrington, Ph.D.DATE: JAN1999SUBJECT: Statistics
-
Support And Resistance by Stuart Evens
ARTICLE SYNOPSIS ...Support And
Resistance
by Stuart Evens
Support and resistance are basic tools used by traders to
identify key reversal areas. Here's a look at the basics of
support and resistance levels and how to determine which
levels might be important in the future.
One premise of technical analysis
is that stock prices are affected
by support and resistance.
As those terms imply,
support acts to keep a stock's
price above a certain level,
while resistance acts to keep a
stock's price below a certain
level. In fact, once it has been
determined that a price has acted
as important support or resistance
i...
AUTHOR: Stuart EvensDATE: JAN1999SUBJECT: Novice Traders' Notebook
-
The Tactical Trader by Walter T. Downs
ARTICLE SYNOPSIS ...The Tactical
Trader
by Walter T. Downs
Trading can be compared to the game of chess -- a good
player wins by implementing a tactical strategy that entails
sacrifices when the sacrifice is justified. Here, a professional
trader presents some tactical trading concepts.
In chess, a good player is able to
accurately assess his position
on the board and gauge the psychological
mettle of his opponent.
Victory is gained by
implementing a positional and/
or tactical strategy. Positional
strategy is the accumulation of
small advantages in terrain and
the positioning of available
forces in advantageou...
AUTHOR: Walter T. Downs, Ph.D.DATE: JAN1999SUBJECT: System Design
-
Traders' Tips
ARTICLE SYNOPSIS ...TRADERS' TIPS
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.
TRADESTATION / SUPERCHARTS
Our focus this month in Traders' Tips is on the cup-with-handle
chart pattern that Rick Martinelli and Barry Hyman
explored in the October 1998 STOCKS & COMMODITIES in
"Cup-with-handle and the computerized approach." When
all the criteria fall ...
AUTHOR: Technical Analysis, Inc.DATE: JAN1999SUBJECT: Traders' Tips
-
Triangles: Reversal Or Continuation by Stuart Evens
ARTICLE SYNOPSIS ...Triangles: Reversal
Or Continuation
by Stuart Evens
Look at most any book on the subject of technical analysis,
and you'll come across triangles. These formations are usually
one of the first chart patterns that novice technicians study,
and it deserves some examination.
Triangles are classified as reversal
patterns in some reference
works, while they are described
as continuation patterns in others.
Robert Edwards and John
Magee, in their Technical
Analysis Of Stock Trends, have
a chapter titled "Important Reversal
Patterns -- The Triangles."
John Murphy, on the
other hand, in his Technical...
AUTHOR: Stuart EvensDATE: JAN1999SUBJECT: Novice Traders' Notebook
-
V.17:1: Letters
ARTICLE SYNOPSIS ...LETTERS TO S&C
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? Have you
run across trading techniques, services or products that have proved useful? 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-mai...
AUTHOR: Technical Analysis, Inc.DATE: JAN1999SUBJECT: Letters To S&C