JUN 1993 STOCKS & COMMODITIES Magazine

Article Archive For JUN1993

A Neural Network System For Reliable Trading Signals by Marlowe D. Cassetti

ARTICLE SYNOPSIS ...A Neural Network System For Reliable Trading Signals by Marlowe D. Cassetti For those of you who have complained that you have to be a rocket scientist to understand what we run in Stocks & Commodities, here's a rocket scientist to explain it to you. Artificial intelligence (AI) technology can be applied successfully to the art of trading, and to this end, cutting-edge AI technology has produced a high-performance trading system. Central to this system is a unique neural network that differs from the conventional, fully connected network. The genesis of this network is the neural network tu...

AUTHOR: Marlowe D. CassettiDATE: JUN1993

A Spreadsheet For Price Ratio Projection Analysis by Robert Miner

ARTICLE SYNOPSIS ...A Spreadsheet For Price Ratio Projection Analysis by Robert Miner Traders who follow Gann and Elliott wave analysis use ratios of past price movement as guidelines for possible turning points in the future. Here, Robert Miner of Gann/Elliott Educators gives you the spreadsheet custom formulas for you to calculate price objectives based on ratios of previous price moves. My previous article, ""A spreadsheet for time ratio analysis,"" described how to construct a spreadsheet to project time periods when a market is most likely to change trend. This time, I will instruct traders how to constru...

AUTHOR: Robert MinerDATE: JUN1993

Changing Your Negative Trading Beliefs by Ruth Roosevelt

ARTICLE SYNOPSIS ...Changing Your Negative Trading Beliefs by Ruth Roosevelt Negative thinking gives you negative results and that holds true for your trading beliefs. Ruth Roosevelt, director of the Wall Street Hypnosis Center, explains how to take your negative and limiting trading beliefs and convert them to positive and profitable ones. If you find yourself repeatedly doing something that is negatively affecting your trading results, ask yourself: ""What is it that I believe that is causing me to limit my trading profits like this?"" Behind limiting behavior is limiting belief. Your beliefs affect your beh...

AUTHOR: Ruth Barrons RooseveltDATE: JUN1993

Cyclical Channel Analysis And The Commodity Channel Index by D.W. Davies

ARTICLE SYNOPSIS ...Cyclical Channel Analysis And The Commodity Channel Index by D.W. Davies Trading bands and the commodity channel index, two popular indicators, are used together here by D.W. Davies, who publishes the ""Chameleon"" financial newsletter. Davies analyzes price direction using trading bands built around moving averages with different time periods as a form of cyclical analysis and uses the commodity channel index as a timing tool with the cyclical analysis to assist in generating trading opportunities. Cycles exist in financial markets. That is accepted. Unfortunately, I found it difficult to ...

AUTHOR: D.W. DaviesDATE: JUN1993

SIDEBAR: Calculating an 11-period CCI by Thom Hartle

ARTICLE SYNOPSIS ...Calculating an 11-period CCI by Thom Hartle The commodity channel index (CCI) can be calculated using any lookback period chosen by the trader. The Excel spreadsheet shown in sidebar Figure 1 is an 1 l-period CCI for the Dow Jones Industrial Average. The first step is to calculate the daily typical price. This is the high, low and close added together and divided by three....

AUTHOR: Thom HartleDATE: JUN1993

SIDEBAR: RELATIVE VOLATILITY INDEX by Technical Analysis, Inc.

ARTICLE SYNOPSIS ...RELATIVE VOLATILITY INDEX by Technical Analysis, Inc. The relative volatility index (RVI) is a modified form of the relative strength index (RSI). The original RSI calculation separates one-day net changes into positive closes and negative closes, then smoothes the data and normalizes the ratio on a scale of zero to 100 as the basis for the formula. The RVI uses the same basic formula but substitutes the 10-day standard deviation of the last 10 days' closing prices for either the up close or the down close. The goal is to create an indicator that measures and reports the general direction of ...

AUTHOR: Technical Analysis, Inc.DATE: JUN1993

The Relative Volatility Index by Donald Dorsey

ARTICLE SYNOPSIS ...The Relative Volatility Index by Donald Dorsey This author modifies the basic relative strength index to measure volatility instead of daily net price change to generate trading signals. Technicians are often tempted to use one set of indicators to confirm another. We may decide to use the moving average convergence/divergence (Macd) to confirm a signal in stochastics or use momentum readings to confirm moving average models. Logic tells us that this form of diversification of indicators will enhance results, but too often the confirming indicator is just the original trading indicator repac...

AUTHOR: Donald DorseyDATE: JUN1993

Through the Years: Jim Yates Of Dyr Associates by Thom Hartle

ARTICLE SYNOPSIS ...Through the Years: Jim Yates Of Dyr Associates by Thom Hartle As an options market analyst with a quarter century in the securities business, Jim Yates takes us back to when the listed options markets first began. Yates is president of DYR Associates, an investment research firm that publishes daily and weekly reports analyzing the option market and its stock market implications. The reports are read by more than 10,000 brokers at more than 30 firms. Not only that, DYR's market and sector analysis is presented on CNBC every week. Yates, author of The Option Strategy Spectrum, helped develop a...

AUTHOR: Thom HartleDATE: JUN1993SUBJECT: Interview

Trade With Moving Averages by Colin Alexander

ARTICLE SYNOPSIS ...Trade With Moving Averages by Colin Alexander Behold the moving average. Everyone takes it for granted without really thinking about it. But Colin Alexander, publisher of the Wellspring newsletter and hotline, thinks we should take a closer look. Moving averages are perhaps the single most widely used indicator in trading the futures markets. In hindsight, trading a market in the direction of price crossing a moving average can look very profitable. After all, every good trade will have crossed a moving average at some point and a few actually become big money-makers. OF DAFFODILS AND CROSS...

AUTHOR: Colin AlexanderDATE: JUN1993

Traders' Tips by Technical Analysis, Inc.

ARTICLE SYNOPSIS ...Traders' Tips by Technical Analysis, Inc. r ON-BALANCE VOLUME Many indicators try to divine from daily data what went on in intraday trading. For example, the simple on-balance volume indicator (OBV) assigns the full impact of a day's full volume by the behavior of the closes. For steady-volume blue chips, this is not much of a problem, but it is for thinly traded stocks such as the penny stocks. The close could be affected by a small last-minute trade in a very thin market. Traders of penny stocks will have noticed an adverse sensitivity of the classic unmodified on-balance volume indicator...

AUTHOR: Technical Analysis, Inc.DATE: JUN1993