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• A Weekly S&P Trading System by Adam White

  ARTICLE SYNOPSIS ...V13:06: (233-237): A Weekly S&P Trading System by Adam White Here's a trading system based on a price pattern and which uses the Standard & Poor's 500 index as a test case. Should a stock market investor buy and hold, or should he or she attempt to trade the major market trends? The answer depends on many factors, but even the most convincing arguments for buy and hold will not prevent curious technicians from designing trading systems. Let me introduce a system to trade the market trends. The system's performance goal is to add value to stock market investing over and beyond what is subt...

AUTHOR: Adam WhiteDATE: JUN1995

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• Back Testing The Daily Sentiment Index by Lee Ang

  ARTICLE SYNOPSIS ...V13:06: (255-259): Back Testing The Daily Sentiment Index by Lee Ang Market traders and advisors use sentiment surveys as a tool to identify extreme bullishness or bearishness. Here, then, is one trader's research into identifying what the best levels of a sentiment survey are for trading Treasury bond futures. The daily sentiment index (DSI) is based on nonprofessional speculators' opinions of futures markets. Its creator, market timer Jake Bernstein of MBH Commodity Advisors, surveys nonprofessional traders at the end of each trading day regarding their level of bullish sentiment for eac...

AUTHOR: Lee AngDATE: JUN1995

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• Candlesticks For Support And Resistance by John H. Forman

  ARTICLE SYNOPSIS ...V.13:06: (243-246): Candlesticks For Support And Resistance by John H. Forman Even as you read this, the candlestick charting technique, with its origins in Japan, is being absorbed into the ways of Western technical analysis. Here's how candlestick charting can be used for a typically Western technical analysis strategy. Observation is the best friend of the technical analyst. By watching the markets, I noticed something interesting about candlestick charts, which I use extensively. I realized the real bodies used in candlestick charting can be used to determine significant support and re...

AUTHOR: John FormanDATE: JUN1995

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• Letters to S&C

  ARTICLE SYNOPSIS ...V13:06: (271-273): Letters to S&C THE X FILES Editor, In the March issue of STOCKS & COMMODITIES, you published a very enlightening article by Joe DiNapoli titled ""The X'd trade."" This was quite informative and a number of my friends have found this interesting. I would like to see more articles about details of this nature. I don't think that I will have this problem, as I am a very short-term trader and do mostly market orders. However, I am aging and will not want to sit in front of the computer for the rest of my life ? at least I hope not. Understanding these ""X"" trades may become ...

AUTHOR: Technical Analysis, Inc.DATE: JUN1995

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• Optimum Predictive Filters by John F. Ehlers

  ARTICLE SYNOPSIS ...V13:06: (247-251):Optimum Predictive Filters by John F. Ehlers The optimum predictive filter is the difference between a technical indicator, such as the relative strength indicator or stochastics, and its exponential moving average. Here, we describe it, how to generate it, and how it can be used. It cannot be used in all market conditions - but carefully observing when it can be used can make it a valuable weapon in your technical arsenal. Technical analysis is reactive to market activity. The indicators we develop are largely generated to note the expected price direction. The predictiv...

AUTHOR: John F. EhlersDATE: JUN1995

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• Perry Kaufman On Market Analysis by Thom Hartle

  ARTICLE SYNOPSIS ...V13:06: (260-268): Perry Kaufman On Market Analysis by Thom Hartle Perry Kaufman began his career in the field of trading and market research in 1971. Since then, he has been a money manager, consultant and author of six books, including the popular Commodity Trading Systems and Methods. His most recent book, Smarter Trading, presents his perspective of the key issues in trading and designing systems. Today, he writes and edits the quarterly report ""Kaufman on Market Analysis,"" which he publishes from his farm in Vermont. STOCKS & COMMODITIES Editor Thom Hartle interviewed Perry Kaufman via...

AUTHOR: Thom HartleDATE: JUN1995

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• SIDEBAR: Adaptive Moving Average by Bruce Faber

  ARTICLE SYNOPSIS ...V.13:06: (267): SIDEBAR: Adaptive Moving Average by Bruce Faber Perry Kaufman points out in Smarter Trading that if you could achieve only one goal in analyzing the price of investments, it should be to identify the direction, or trend, of the market involved. Further, he writes that ""everyone wants a short-term, fast trading trend that works without large losses. That combination does not exist."" It is possible to have fast trading trends in which one must get in or out of the market quickly, but these have the distinct disadvantage of being whipsawed by market noise when the market is vol...

AUTHOR: Bruce R. FaberDATE: JUN1995

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• SIDEBAR: Averaging Lag and the EMA Constant

  ARTICLE SYNOPSIS ...AVERAGING LAG AND THE EMA CONSTANT The equation to compute an exponential moving average (EMA) is: ... Picture a function that increases by 1 for each new day. Then, on the generalized i th day the function will have a value of I . Assume the EMA lag is K . ......

AUTHOR: Technical Analysis, Inc.DATE: JUN1995SUBJECT: Sidebar

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• SIDEBAR: MetaStock syntax

  ARTICLE SYNOPSIS ...METASTOCK SYNTAX Here's the system's syntax for MetaStock 4.5: ......

AUTHOR: Technical Analysis, Inc.DATE: JUN1995SUBJECT: Sidebar

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• The Range Indicator by Jack L. Weinberg

  ARTICLE SYNOPSIS ...V.13:06: (238-242): The Range Indicator by Jack L. Weinberg Here's a new indicator based on the change in a day's trading range as evidence of the start of a new trend in a market. Markets tend to trade in relatively tight price ranges most of the time; therefore, low daily ranges indicate trading ranges. Prices move to reach toward new levels for a new trading range when a fundamental change has occurred in the supply/demand balance for that commodity. A dramatic change in the daily range relative to the interday ranges indicates that a change in the fundamentals may be present and may be...

AUTHOR: Jack L. WeinbergDATE: JUN1995

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• The Ratio Of Inflation Rates And Currency Trends by John Kean

  ARTICLE SYNOPSIS ...V.13:06: (252-254): The Ratio Of Inflation Rates And Currency Trends by John Kean Exchange rates fluctuate on a second to second basis, but the long-term trends can be understood by using an indicator based on the ratio of inflation rates. The case in point? The recent Mexican peso debacle. Picture this: A robust developing economy, a democratically maturing political system and a newly adopted treaty eliminating trade tariffs with the world's greatest consumer economy (which also happens to be its northern neighbor). A situation like this could only point to good investment times ahead, w...

AUTHOR: John KeanDATE: JUN1995SUBJECT: Real World

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• Traders' Tips

  ARTICLE SYNOPSIS ...V13:06: (269-270): Traders' Tips SMARTRADER Here are the formulas to implement the system discussed in Adam White's ""A weekly S&P trading system"" for SMARTrader. ... This is a simple system to implement. As you can see, the highest/lowest functions are integral to building the system. The highest/lowest rows each have a suffix appended to clarify their use in subsequent rows. TAI is the trend analysis index calculation. The buy rule is that the current highest five-bar high is greater than the previous five-bar highest and the current lowest five-bar low is higher than the current 13-ba...

AUTHOR: Technical Analysis, Inc.DATE: JUN1995SUBJECT: Traders' Tips