STOCKS & COMMODITIES magazine. The Traders' Magazine

Article Archive For JUN1992

  • Chaos Theory And Neural Network Analysis by John Kean

    ARTICLE SYNOPSIS ...Chaos Theory And Neural Network Analysis by John Kean Do markets have memory? In this new theory by Edgar Peters, an offshoot of chaos theory, John Kean explains, markets can be regarded as nonlinear dynamic systems, and neural networks can be used to analyze and gauge behavioral patterns in price change data useful in prediction. It's convenient that, at a time when the T behavioral natures of commodity and financial markets are being rethought, a new technique for examining the data has appeared. Chaos theory, in its in fancy, challenges the statistically based conventional view of markets...

  • Global Analyst Mitzi Wilson Carletti by Thom Hartle

    ARTICLE SYNOPSIS ...Global Analyst Mitzi Wilson Carletti by Thom Hartle Senior research analyst Mitzi Wilson Carletti joined Frank Russell Company as a research analyst in 1988 from Merrill Lynch. Carletti researches, monitors and evaluates international money managers as well as assisting client executives and other research staff to develop client strategy recommendations. In addition, she oversees and is responsible for non-U.S. derivative and global tactical asset allocation research. STOCKS & COMMODITIES Editor Thom Hartle spoke with Carletti on March 27, 1992, via telephone interview, on topics ranging fro...

  • Identifying Trading Opportunities by Thom Hartle

    ARTICLE SYNOPSIS ...Identifying Trading Opportunities by Thom Hartle One of the most important aspects of any trade is timing the entry. Perhaps surprisingly, daily and weekly analysis can be instrumental in planning an entry for long-term trades. Here's an overview on how to use daily and weekly technical analysis to identify trading opportunities that may only come up once a year. S&C Editor Thom Hartle outlines a complete approach to trading, incorporating basic charting and trendline plotting, the stochastics oscillator and momentum studies. Over the years, my trading style has evolved out of necessity. Wha...

  • Price: The Ultimate Indicator? by Roger Altman

    ARTICLE SYNOPSIS ...Price: The Ultimate Indicator? by Roger Altman What does it take to make consistent profits trading commodities? Roger Altman theorizes that like support and resistance levels in stock charts, historical floor and ceiling prices in commodities can be used to gauge relative cheapness and richness of prices and whether a price decline or increase is likely. Despite the use of an array of sophisticated and esoteric indicators, most commodity newsletter trade recommendations lose money. According to Commodity Trader's Consumer Report, which tracks the performance of 26 commodity newsletter write...

Quick Scans: MarketBase by John Sweeney

  • Reversing For Dollars by John Sweeney

    ARTICLE SYNOPSIS ...Reversing For Dollars by John Sweeney Harebra ined ideas bein g a plentiful ite m in my daydreams, the idea tha t I mentione d in April's Settlement tha t I implement a n automa tic reversin g tra de at my maximum a dverse excursion ( MAE) stop point had less than a 2% chance of survival after analysis. I tested it anyway. (To spare your digging out old issues, this idea is ex plained in Figure 1.) BUT FIRST, A SYNOPSYS Anyone who dropped in on this Settlement without having read the last five must be wondering what in the world I'm talking about. Briefly, I defined a basic, underlying trad...

Review Freebies! by John Sweeney

SIDEBAR: EXCEL FUNCTIONS

  • SIDEBAR: GANN'S 28 TRADING RULES

    ARTICLE SYNOPSIS ...GANN'S 28 TRADING RULES 1. Never risk more than 10% of your trading capital in a single trade. 2. Always use stop-loss orders. 3. Never overtrade....

  • SIDEBAR: INDICATOR TRIX

    ARTICLE SYNOPSIS ...INDICATOR TRIX The indicator TRIX is an oscillator designed to indicate changes in momentum and a filter of random market noise. The process is the triple exponential smoothing of the log of price. The indicator is the one-day difference of the smoothed data. ......

  • SIDEBAR: MOVING AVERAGE CALCULATIONS

    ARTICLE SYNOPSIS ...MOVING AVERAGE CALCULATIONS...

SIDEBAR: PATIENCE IS A VIRTUE

SIDEBAR: REFLECTION OF CHANGES

SIDEBAR: SIT TIGHT

SIDEBAR: TELESCAN PROSEARCH INDICATORS

  • SIDEBAR: THE MASS INDEX AND MOVING AVERAGE FORMULAS

    ARTICLE SYNOPSIS ...THE MASS INDEX AND MOVING AVERAGE FORMULAS The mass index is a 25-day moving sum of a ratio of two moving averages. The numerator of the ratio is the exponentially smoothed moving average of the daily ranges. The denominator is the numerator smoothed a second time. ......

  • SIDEBAR: THE VOLUME INDEX AND ON-BALANCE VOLUME

    ARTICLE SYNOPSIS ...THE VOLUME INDEX AND ON-BALANCE VOLUME The volume index is a sum of each financial index's current on-balance volume (OBV) reading. On-balance volume is an indicator based on each day's change and the accompanying volume. ......

SIDEBAR: TRAFFIC CONGESTION

  • Stock Selection by Arthur A. Merrill, C.M.T.

    ARTICLE SYNOPSIS ...Stock Selection by Arthur A. Merrill, C.M.T. How does a veteran technician like Arthur Merrill select stocks for investment? He explains that it's not the simplest of methods and it does require research and work, but the results, he notes, are worth it--his growth stock index started at 874 in 1965, at the level that the DJIA was back then; when the DJIA reached 3169 recently, Merrill's index hit 15,149! I have been asked how I pick stocks for investment. I have a definite preference for growth stocks -- stocks that have been delivering a consistent and rapid growth in earnings per share (EPS...

Stocks & Commodities V.10:13 : Quick-Scans

Stocks & Commodities V.10:13 : Quick-Scans

Stocks & Commodities V.10:13 : Quick-Scans

Stocks & Commodities V.10:13 : Quick-Scans

Stocks & Commodities V.10:13 : Quick-Scans

Stocks & Commodities V.10:13 : Quick-Scans

Stocks & Commodities V.10:13 : Quick-Scans

Stocks & Commodities V.10:13 : Quick-Scans

Stocks & Commodities V.10:13 : Quick-Scans

Stocks & Commodities V.10:13 : Quick-Scans

Stocks & Commodities V.10:13 : Quick-Scans

Stocks & Commodities V.10:13 : Quick-Scans

Stocks & Commodities V.10:13 : Quick-Scans

Stocks & Commodities V.10:13 : Quick-Scans

Stocks & Commodities V.10:13 : Quick-Scans

Stocks & Commodities V.10:13 : Quick-Scans

Stocks & Commodities V.10:13 : Quick-Scans

Stocks & Commodities V.10:13 : Quick-Scans

Stocks & Commodities V.10:13 : Quick-Scans

Stocks & Commodities V.10:13 : Quick-Scans

Stocks & Commodities V.10:13 : Quick-Scans

Stocks & Commodities V.10:13 : Quick-Scans

Stocks & Commodities V.10:13 : Quick-Scans

Stocks & Commodities V.10:13 : Quick-Scans

Stocks & Commodities V.10:13 : Quick-Scans

Stocks & Commodities V.10:13 : Quick-Scans

Stocks & Commodities V.10:13 : Quick-Scans

  • The Basics Of Managing Money by Robert P. Rotella

    ARTICLE SYNOPSIS ...The Basics Of Managing Money by Robert P. Rotella A trader can score that one big win, but it's all for naught if he can't hold onto his profits. Money management is the step both before and after trading, the study of risk and reward and how best to utilize investment capital--and keep it. Here's an excerpt from The Elements of Successful Trading, scheduled for release in June 1992 from New York Institute of Finance. Money management is the evaluation of risk and reward in trade or portfolio and determining the most efficient use of investment capital. Money management is the study of risk a...

  • The Basics Of Moving Averages by George R. Arrington, Ph.D.

    ARTICLE SYNOPSIS ...The Basics Of Moving Averages by George R. Arrington, Ph.D. Moving averages are one of the most common technical tools that technicians, both veteran and novice, may take advantage of. But for those novices, the concept may be somewhat confusing. What is a moving average, anyway? And what about all those variations -- linear, stepweighted, exponential, even triangular? George Arrington explains the basics of the moving averages. And for those veteran traders out there, it never hurts to brush up on those basics. The first maxim a trader learns is to ""buy low and sell high."" The trick, howev...

  • The Financial Volume Index Expanded For The l990s by Patrick Cifaldi, C.M.T.

    ARTICLE SYNOPSIS ...The Financial Volume Index Expanded For The l990s by Patrick Cifaldi, C.M.T. The financial volume index, which was first introduced by Patrick Cifaldi in the pages of STOCKS & COMMODITIES in 1989, takes on and uses the study of volume, surprisingly underutilized in technical analysis. The index combines futures contracts, the Dow Jones Utility Index and the Dow 20 Bond Index, and here, Cifaldi examines its uses for the current decade. In the study of technical analysis, price data are the information most often used in research. Often underplayed is the study of volume, either by itself or i...

  • The Gann Method by John J. Blasic

    ARTICLE SYNOPSIS ...The Gann Method by John J. Blasic W.D. Gann's trading methodologies are not always easy to define or to analyze, which is a pity, since they can be applied to everyday trading principles across many different markets when interpreted correctly . John Blasic simplifies Gann's techniques in this article into terms more easily understood, sketching a brief background of the essential elements and how the applications can be applied within your trading strategy. W. D. Gann firmly believed that knowledge is the foundation of all successful analysis. He constantly stressed that a novice should lea...

  • The Link Between Bonds And Stocks by John J. Murphy

    ARTICLE SYNOPSIS ...The Link Between Bonds And Stocks by John J. Murphy Intermarket analysis is based on the premise that all markets are linked. Last month, technical trailblazer John J. Murphy explored the inverse interrelationship between commodity and bond prices; this month, he examines the relationship between bonds and stocks and how bond prices can be used as a leading indicator for stocks. Take a look. Bonds and stocks usually trend in the same direction. However, it's not as simple as that. At important turning points, bond prices usually turn ahead of stocks. At bottoms, bond prices usually turn up b...

  • The Mass Index by Donald Dorsey

    ARTICLE SYNOPSIS ...The Mass Index by Donald Dorsey Range oscillation, not often covered by students of technical analysis, delves into repetitive market patterns during which the daily trading range narrows and widens. Examining this pattern, Donald Dorsey explains, allows the technician to forecast market reversals that other indicators may miss. Dorsey proposes the use of range oscillators in his mass index. Range oscillation is one of the least explored areas of technical analysis. Typically, markets tend to repeat a pattern in which the average daily range (that is, the difference between the high and low)...

  • Trading Bond Funds by Joe Duarte

    ARTICLE SYNOPSIS ...Trading Bond Funds by Joe Duarte Bond funds have become popular investment vehicles for income-oriented investors. The bond market, however, is often much more responsive to news events, especially in times of high government deficits and international markets, than the stock market is. Therefore volatility is often present and can be extreme. As a result, technical intermarket analysis can be a useful tool in trading the bond market. Joe Duarte explains. Traders and investors must have an excellent knowledge of the underlying conditions that affect this market. It is virtually impossible to...







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