Article Archive For
JUN1988
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Contrary opinion by Henry Van Kessel
ARTICLE SYNOPSIS ...Contrary opinion
by Henry Van Kessel
A contrarian is a person ahead of the times. He sees things others don't. Like a master chess player, he
observes more pieces of the situation, looks further on the horizon. When the situation is right, he plays a
big hand because he has done his homework and is not relying on anyone's opinions.
The few lead, the many follow. But the followers don't know who the real leaders are. Rather than trying
to find the leaders (who appear too elusive) one popular idea is that, since the followers are statistically
losers, perhaps it would be best to follow the fol...
AUTHOR: Henry Van KesselDATE: JUN1988
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Creating charts with Lotus by John O'Donahue
ARTICLE SYNOPSIS ...Creating charts with Lotus
by John O'Donahue
Those who have used a personal computer for technical analysis of the markets probably are familiar
with Lotus 1-2-3, and recognize what a powerful tool it can be. It is particularly good for evaluating new
indicators or working out how to apply an idea to a given problem.
One of the most useful functions of Lotus is its graphics package. I frequently use it as a general purpose
utility to graph the results of other programs written in languages which are more efficient at processing
data, but poor at plotting the results. After all, where else ca...
AUTHOR: John O'DonahueDATE: JUN1988
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Debugging and the virtues of experimentation Part 6 by Jim Summers, Ph.D.
ARTICLE SYNOPSIS ...Debugging and the virtues of experimentation
Part 6
by Jim Summers, Ph.D.
In last month's column we discussed the use of {Put} and @Index(...) menu commands in Lotus 1-2-3.
These can increase significantly program speed by avoiding cursor movement and redundant range names
during processing. We used these to update the formula which calculates the trading range (TR1) shown
in Figure 1.
The TR1 portion of J. Welles Wilder's DMI is a complex formula and very susceptible to typing errors.
This month I'll show you how to debug complex formulas before we go on to develop the TR1 loop.
Are you ch...
AUTHOR: Jim Summers, Ph.D.DATE: JUN1988
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If the boss only knew technical analysis by Vincent Cosentino
ARTICLE SYNOPSIS ...If the boss only knew technical analysis
by Vincent Cosentino
When a company official, director or a large stockholder buys stock in the company, this has to be a
sign that green grass and blue skies are ahead. After all, who knows the company better than the people in
charge of running it?
Virtually every company has incentive plans to motivate the top officials. Included in these packages are
such perks as stock options and rights that allow the official to buy company stock below market and
realize an instant profit. Sometimes, the company even provides a low-cost loan to help the officer...
AUTHOR: Vincent CosentinoDATE: JUN1988
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Letters to S&C
ARTICLE SYNOPSIS ...Letters to S&C
Getting to know you
Editor,
I recently purchased the set of tapes from the TAG IX CompuTrac seminar held last September. I would
like to know more about your ""Technical Analysis Magazine"" and some of the articles from past issues,
in whatever form they may be available, that you mentioned.
Listening to the tapes, I must say that your presentation was one of the better organized and clearly laid
out. I believe I almost understand what you were saying--from a two-hour tape, that is frightening. I'd
better learn more.
STEVE PAINTER
Aurora, CO
On with the show
Editor,
I ve...
AUTHOR: Technical Analysis, Inc.DATE: JUN1988
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More trend detection by Arthur A. Merrill
ARTICLE SYNOPSIS ...More trend detection
by Arthur A. Merill
Last month I described four methods of trend detection: eyeball, filtered waves, zigzags and
support/resistance levels. Here are seven more:
Moving average
This indicator is rather limited when you consider the construction of a moving average. For a new point
on a ten-week average, for example, you add the current data unit to the total of the past ten weeks, then
subtract the data unit that was added eleven weeks in the past, and divide by 10. You can see that the
trend is entirely dependent on the difference between the current data and the data e...
AUTHOR: Arthur A. Merrill, C.M.T.DATE: JUN1988
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Moving averages Part 1 by John Ehlers
ARTICLE SYNOPSIS ...Moving averages
Part 1
by John Ehlers
Averages have long been recognized as the best estimator of a random variable. Traders use moving
averages as trading signals or as components of trading systems, but the moving average characteristics
are seldom described for them. This is the first of a two-part article on moving averages to help promote
a wider understanding. I'll explore some interesting characteristics of several kinds of moving averages
and compare them in this article. In part 2, these characteristics will be applied to create a new kind of
leading indicator entry system. I modestl...
AUTHOR: John F. EhlersDATE: JUN1988
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NYSE technical indicators: diagnosing market bottoms by Thomas Aspray
ARTICLE SYNOPSIS ...NYSE technical indicators: diagnosing market
bottoms
by Thomas Aspray
By definition, significant market bottoms or tops seem to catch the majority by surprise, especially the
fundamentalists. When an important low is formed, I try to review the many technical studies that I use to
determine which ones worked well and which ones didn't.
On a daily basis, I run more than 250 studies on the stock market, including cash indices,
advance/decline, high/lows and futures. I weight my indicators using past experience, pattern recognition,
etc. In this article, we'll take a close look at how some of t...
AUTHOR: Thomas AsprayDATE: JUN1988
Opening Position by John Sweeney, Editor
AUTHOR: John SweeneyDATE: JUN1988
AUTHOR: Technical Analysis, Inc.DATE: JUN1988
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SIDEBAR: Using BASIC Programs to Massage Data
ARTICLE SYNOPSIS ...Using BASIC Programs to Massage Data
Microsoft BASIC has become the standard programming language on today's PC's and clones. It comes
in a couple of slightly different flavors: BASIC, BASICA and GWBASIC, for example, are the most
common IBM and clone versions. There are plenty of rather esoteric versions popular among
programmers. The following steps will help you to install and use the BASIC programs provided in this
issue.
1. Getting started
Whichever version of BASIC you have, start it up exactly as you would start your spreadsheet. That is,
when the DOS prompt appears, type the name of...
AUTHOR: Technical Analysis, Inc.DATE: JUN1988
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Trading with Steidlmayer by Ellen C. Williams
ARTICLE SYNOPSIS ...Trading with Steidlmayer
by Ellen C. Williams
Talking with J. Peter Steidlmayer about the commodities markets is different than talking with any
other trader in the game.
Bonds, soybeans, grains and currencies are metaphors that define Steidlmayer's way of looking at life. A
success on the floor at the Chicago Board of Trade while still in his 20s, Steidlmayer wrote a trader's
manual for the Chicago Board of Trade known as the Market Profile in 1984. In this work, he details how
time, price and sales reflect what goes on while the markets are trading. At the end of each day, the
Liquidity Da...
AUTHOR: Ellen C. WilliamsDATE: JUN1988