STOCKS & COMMODITIES magazine. The Traders' Magazine

Article Archive For JUN1994

  • A Genetic Algorithm System For Predicting The OEX by Deniz Yuret and Michael de la Maza

    ARTICLE SYNOPSIS ...A Genetic Algorithm System For Predicting The OEX by Deniz Yuret and Michael de la Maza Since artificial intelligence made its debut within the pages of Stocks & Commodities, various and sundry methods by which neural networks can be used in designing trading systems have been proposed. Here, Yuret and Maza explain the development of a genetic algorithm system with which to forecast the OEX. Designing a successful automatic trading system, as many have discovered, is a task of daunting proportions. But powerful new artificial intelligence methods such as neural networks have the potential t...

  • Gold And The Business Cycle by Martin J. Pring

    ARTICLE SYNOPSIS ...Gold And The Business Cycle by Martin J. Pring Well-known market analyst Martin Pring takes a look at the relationship between the price of gold and the business cycle. Why do major swings in the price of gold occur? Over the years, many views have been put forward as to the causes of major swings in the price of gold. The news media consistently tries to link price movements of financial markets to news events. Indeed, it seems rational that market participants make decisions based on the latest-breaking news. In the case of gold, the assumption is often made that the fear factor is at wor...

  • It's All In The Family: Sherman, Marian And Tom McClellan by Thom Hartle

    ARTICLE SYNOPSIS ...Interview: It's All In The Family: Sherman,Marian And Tom McClellan by Thom Hartle The McClellan oscillator and the summation index are two popular technical indicators that have been around for more than 25 years, and in fact, the daily values are broadcast daily on CNBC. These tools, which can be found in most software packages, are used for identifying turning points in the stock market, but it's not often that you'll find an in-depth explanation included. So we decided to go to the source and ask the McClellans themselves Sherman and Marian, who first devised the indicators, and son Tom. ...

  • Price-Volume Rank by Anthony J. Macek

    ARTICLE SYNOPSIS ...Price-Volume Rank by Anthony J. Macek Imagine receiving a warning when the market was likely to collapse or being alerted when one of your favorite stocks was about to rally. What if these signals came from analysis that was simple enough to do without a computer and took only a few minutes a day to update, using just two pieces of information found in virtually any newspaper? Is this a dream? Maybe not. The old adage about keeping things simple applies even to the investment world. Methods of analysis such as polarized fractal efficiency and price oscillator divergences do a great job, but ...

  • SIDEBAR: P-V RANK BY HAND

    ARTICLE SYNOPSIS ...SIDEBAR: P-V RANK BY HAND As the article "Price-volume rank" describes, P-V rank can be figured by hand by using the guidelines outlined. I do so, and then I manually enter the resultant data (numbers 1 through 4) into EQUIS International's The Technician software. I am able to do this by listing P-V rank as a custom indicator and adding the daily data manually under the user-added variable capability. After the raw data is listed, the technical study or software of choice can be manipulated....

  • SIDEBAR: THE McCLELLANS' INDICATORS

    ARTICLE SYNOPSIS ...SIDEBAR: THE McCLELLANS' INDICATORS The McClellan oscillator can be used for measuring changes in momentum of price, volume, advances and declines. The most common use is for measuring the momentum of the New York Stock Exchange (NYSE) listing of the daily number of stocks that advanced and the number of stocks that declined. The calculation of the McClellan oscillator is a three-step process. First, determine the difference between the number of stocks advancing and the number of stocks declining for each day. This raw number is then smoothed with two exponential moving averages (EMA) to cr...

  • The Commitment To Trading by Adrienne Laris Toghraie

    ARTICLE SYNOPSIS ...The Commitment To Trading by Adrienne Laris Toghraie How far would you go to succeed in your trading? Commitment and achievement go hand in hand but they must be balanced. Top traders know, either instinctively or as a result of experience, that all achievement requires commitment. They also know that the higher the level of achievement, the greater the commitment that is required to reach it. These traders are, usually, not only willing but eager to apply themselves to the challenge. However, what they usually fail to factor into their road map to success is the level of tradeoff that will...

  • The Joy Of Trading with Statistics by Ben Warwick

    ARTICLE SYNOPSIS ...The Joy Of Trading with Statistics by Ben Warwick For many of you who have traded in the past, the title of this article may take you by surprise. How can trading be work of joy? Only when you are winning, obviously, but there's more to it than that. Systematic trading can be a joy if you are convinced that your decisions are based on favorable probabilities. Let me focus on the three most often used methods in my mathematical arsenal -- the Kruskal-Wallis test, the Sharpe ratio, and optimum trade size analysis. The Kruskal-Wallis (K-W) test is a statistical method dating from the 1950s. Alth...

  • The Market Facilitation Index by Gary Hoover

    ARTICLE SYNOPSIS ...The Market Facilitation Index by Gary Hoover Here's how trader Gary Hoover uses the Market Facilitation Index for day trading. Applying technical analysis to developing trading signals begins with the investigation of price movement and often incorporates volume studies to improve trading accuracy. The Market Facilitation Index (MFI) is one indicator that synthesizes both price and volume analysis. The MFI is the ratio of the current bar's range (high-low) to the bar's volume. MFI = range/volume The MFI is designed to gauge the efficiency of price movement. The efficiency is measured by c...

  • Three Myths About Trading A Small Commodity Account by K.D. Angle

    ARTICLE SYNOPSIS ...Three Myths About Trading A Small Commodity Account by K.D. Angle The New Timing Device editor Kelly Angle disputes some common notions about trading commodities if you have a small commodity account. What are they? In talking with thousands of clients and traders in nearly a decade of operating as a professional in the futures industry, small traders have told me many times that their long-term goal is to eventually leave their current occupation in exchange for a life of wealth and independence supported solely by successfully trading their own futures account. What is the probability of ...

  • Traders' Tips

    ARTICLE SYNOPSIS ...Traders' Tips The steps to create the calibrated summation index, the McClellan oscillator, the McClellan summation index and the advance-decline line are all very similar. Here is the code in MetaStock and TradeStation languages....

  • Treasury Bond Put Options As An Intermarket Gauge by Joe Duarte

    ARTICLE SYNOPSIS ...Treasury Bond Put Options As An Intermarket Gauge by Joe Duarte Here, ""Wall Street Detective"" editor Joe Duarte discusses using the Hines ratio, a sentiment indicator based on options activity, on the Treasury bond futures market as a trading tool for bonds and currencies. The compared value of one country's currency to that of another reflects the perceptions of market participants. Currency traders closely follow each country's currency relationships, interest rates, politics and economic climate. The primary focus for traders is the interest rate climate of each country, but the other ...

  • V.12:6Calculating the KST

    ARTICLE SYNOPSIS ...Sidebar: Calculating the KST The suggested parameters for short, intermediate and long term can be found in sidebar Figure 1. There are three steps to calculating the KST indicator. First, calculate the four different rates of change. Recalling the formula for rate of change (ROC) is today's closing price divided by the closing price n days ago. This result is then multiplied by 100. Then subtract 100 to obtain a rate of change index that uses zero as the center point. Second, smooth each ROC with either a simple or exponential moving av-erage (EMA). Third, multiply each smoothed ROC by its p...








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