JUL 2000 STOCKS & COMMODITIES Magazine

Article Archive For JUL2000

Bollinger Band Targets by Benjamin L.Cotton

ARTICLE SYNOPSIS ...Bollinger Band Targets by Benjamin L.Cotton You can calculate the future price movement necessary to cross a moving standard deviation band condition such as a Bollinger Band, emoving the guess-work from systems trading on such elationships. Here's the logic behind such an indicator as well as the TradeStation programming that makes it work. My November 1999 article for STOCKS & COMMODITIES introduced the BogieMA, an indicator that solves for the future price that would trigger a moving average crossover. This type of indicator saves traders from plugging in a best-guess price in a database ...

AUTHOR: Benjamin L. CottonDATE: JUL2000SUBJECT: New Techniques

Commodities And The Inflation Rate by Alex Saitta

ARTICLE SYNOPSIS ...Commodities And The Inflation Rate by Alex Saitta Which individual commodities have the strongest coincidental relationship with the inflation rate? Successful traders need to keep an eye on commodity price changes to gain insight into the latest changes in the inflation rate and anticipate the next bond market move. You cannot rely on the monthly Consumer Price Index (CPI) report, since there is a considerable lag between the period when the data is collected and the date the report is released to the public. By the time you get it, it's too late. Here's a technique to identify the commodi...

AUTHOR: Alex SaittaDATE: JUL2000

Interview:Richard McCabe Of Merrill Lynch by John Sweeney

ARTICLE SYNOPSIS ...Richard McCabe Of Merrill Lynch The Technical Tradition Continues Continuing the technical tradition begun by Bob Farrell, Merrill Lynch chief market analyst Richard McCabe has been Mr.Technical Analysis at the world's largest brokerage since 1993, following in Farrell's footsteps. McCabe heads a staff scattered around the world that brings to the company's stock evaluation process the insights into the market's condition that technical analysis offers. A Merrill Lynch loyalist his entire career, McCabe joined Farrell's shop in 1964 and has practiced technical analysis since then. What appro...

AUTHOR: John SweeneyDATE: JUL2000SUBJECT: Interview

Letters to S&C

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: JUL2000SUBJECT: Letters To S&C

Optimal Detrending by John F.Ehlers

ARTICLE SYNOPSIS ...Optimal Detrending Did you know that a detrended signal, combined with an optimum smoothing filter, can produce an extremely responsive oscillator-type indicator that catches every cyclic turn as it happens? It's true! Here are the details. All pulse echos here must be a jillion ways to detrend price data, and a good chunk of them have already been explored in print. Given that, I had to have a new and significant approach to the subject - and here it is. I discovered that a detrended signal, combined with an optimum smoothing filter, can produce an extremely responsive oscillator-type indica...

AUTHOR: John F. EhlersDATE: JUL2000SUBJECT: Trading Techniques

The Strength Of Support And Resistance by Christopher Narcouzi

ARTICLE SYNOPSIS ...The Strength Of Support And Resistance by Christopher Narcouzi Measuring Overhead Supply Here's how to quantify support and resistance so you can get a good idea ahead of time whether they will hold up when tested. Stocks run up and down between support and resistance lines. Sometimes they break through support and resistance, and sometimes they back off. Usually, they back off if the support or resistance is very significant. You can quantify support and resistance using volume around previous tops and bottoms. Here's how to measure the significance of support and resistance so you can get...

AUTHOR: Christopher NarcouziDATE: JUL2000SUBJECT: Classic Techniques

Traders' Resource: Brokerages

ARTICLE SYNOPSIS ...Brokerages Hardly anything has changed as much in the last year as the world of brokerages has. No longer is the best choice necessarily your buddy downtown, especially if you make your own decisions about where to put your money. Self-directed traders, as STOCKS & COMMODITIES readers usually are, have more choices than ever in their ongoing search for speed, pricing efficiency, and good accounting. First, you have to find a brokerage that handles your tradable; full-service brokerages dealing with equities, options, futures, bonds, mutual funds, foreign exchange, and cash goods are usually ...

AUTHOR: Technical Analysis, Inc.DATE: JUL2000SUBJECT: Traders' Resource

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 Website at http://www.Traders.com. BIOCOMP In ""Bollinger Band Targets"" by Benjamin Cotton in this issue, the future price that is required to cross a Bollinger Band is calculated. A similar indicator available within Biocomp Profit, WinPctB, calculates price relative to a Bollinger Band. WinPctB is the percentage distance from +/-2 s...

AUTHOR: Technical Analysis, Inc.DATE: JUL2000SUBJECT: Traders' Tips

Vertical Horizontal Filter by Jayanthi Gopalakrishnan

ARTICLE SYNOPSIS ...Vertical Horizontal Filter by Jayanthi Gopalakrishnan This filter can tell you whether a market is going through a trending or congestion phase, and whether you should use trend-following indicators if the markets are trending or congestion-phase indicators if markets are in a trading range. It's always a challenge to determine which indicator you should use to help you make your trading decisions. Markets go through various stages such as trending or congestion phases, and you cannot use the same indicators for all the different phases. As a result, you must identify the different phases of...

AUTHOR: Jayanthi GopalakrishnanDATE: JUL2000SUBJECT: Indicators

Volume Basics by Martin J.Pring

ARTICLE SYNOPSIS ...Volume Basics by Martin J.Pring How is volume used in technical analysis and what can it tell us? Most of the indicators used in technical analysis are based on pricing data. We either use the prices themselves, a statistical manipulation of the prices with moving averages, or oscillators of some kind. Volume, though, is an independent variable and can therefore be extremely useful in confirming price action. There are many ways of using volume, such as the construction of oscillators, on-balance volume lines, and the designing of indicators using both volume and price. I will discuss some o...

AUTHOR: Martin J. PringDATE: JUL2000SUBJECT: Basic Techniques