Article Archive For
MAR1987
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A complete computer trading program (part 1) by John F. Ehlers
ARTICLE SYNOPSIS ...A complete computer trading program (part 1) by John F. Ehlers
This is the first of four articles that give a description and computer listing, enabling you to perform
technical analysis with your computer. In the second article I will cover the basics of reading data from a
standard format and plotting price history on a graph. The third article will allow you to selectively plot
moving averages and J. Welles Wilder's Parabolic System over the price history. The fourth and
concluding article will give the computer listings to calculate Commodity Channel Index (CCI),
Directional Trend Indicat...
AUTHOR: John F. EhlersDATE: MAR1987
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Assessing Risk On Wall Street by Robert W. Hull
ARTICLE SYNOPSIS ...Book Review: Thomas A. Rorro's Assessing Risk on Wall Street. By Robert W. Hull
Thomas A. Rorro
Sobaro Publishing Company, 1984
Price: $17.95 (202 pages)
Thomas A. Rorro's book, Assessing Risk on Wall Street , is indeed a bridge between the investment
communities' personalized approach to the market on the one hand, and the theory of investments as
presented in the academic literature on the other. He combines his own particularly well-thought-out
approach to risk and return, using methodology found in the academic literature, to finally arrive at a
practical method of assessing the financia...
AUTHOR: Robert W. Hull, Jr.DATE: MAR1987
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Changing tides in the investment software market by Thomas A. Rorro
ARTICLE SYNOPSIS ...Changing tides in the investment software market by Thomas A. Rorro
Remarkably, the investment software industry is on the threshold of a major transition. In the near
future, it will no longer be economical to buy investment software. Instead you will be dialing up and
renting the capability from one of the national timesharing services. Even today, we see the genesis of
these changes. They are beginning slowly at first but the economics are such that the tide must sweep the
marketplace.
To explore the issues which surround the investment software industry, let us consider the techniques
de...
AUTHOR: Thomas A. RorroDATE: MAR1987
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DJIA/NYSE Auto/Cross-Correlations by Frank Tarkany
ARTICLE SYNOPSIS ...DJIA/NYSE Auto/Cross-Correlations by Frank Tarkany
This article investigates auto/cross-correlations for the weekly Dow Jones Industrial Average (DJIA)
price close and the New York Stock Exchange (NYSE) total volume from January 9, 1897 to December
27, 1985. Using the correlation coefficient and chi-square statistic, I discovered an almost random
relationship between price and volume. This confirms my previous research (Technical Analysis of
Stocks & Commodities, October/November 1986)...
AUTHOR: Frank TarkanyDATE: MAR1987
In This Issue John Sweeney, Associate Editor
AUTHOR: John SweeneyDATE: MAR1987
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In search of the cause of cycles by Hans Hannula, Ph.D.
ARTICLE SYNOPSIS ...In search of the cause of cycles by Hans Hannula, Ph.D.
People have, for centuries, noticed cycles in many things, including the stock market. My own interest
in cycles and their application to the market began in the early 1970s, when I read Dewey and Mandino's
Cycles, The Mysterious Forces That Trigger Events and Hurst's The Profit Magic of Stock Transaction
Timing. Since then, I have studied cycles and used them regularly in my trading. My greatest successes
have been in using them to call the 1982 and 1984 market bottoms. While cycles have been a practical
tool for me, I have always been ...
AUTHOR: Hans Hannula, Ph.D., RSA, CTADATE: MAR1987
Letters To S & C
AUTHOR: Technical Analysis, Inc.DATE: MAR1987
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Profitability of selected technical indicators: Silver by Thomas P. Drinka and Steven L. Kille
ARTICLE SYNOPSIS ...Profitability of selected technical indicators: Silver by Thomas P. Drinka and Steven L. Kille
In previous issues of this magazine, we reported the results of applying moving averages, momentum,
%R, and Relative Strength Index (RSI) to Chicago Board of Trade corn and long-term U.S. Treasury
bond futures. The formulas and use of these popular technical indicators were reviewed.
In this issue, we report similar information for Commodity Exchange of New York (COMEX) silver.
Trading was simulated on the 1981-1985 March, May, July, September, and December contracts. The
simulations were conducted...
AUTHOR: Thomas P. Drinka and Steven L. KilleDATE: MAR1987
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SIDEBAR: How digital filters work by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...SIDEBAR: How digital filters work by Technical Analysis, Inc.
Filters are tools for ""tuning into"" parts of the total energy contained in an information stream. For
example, all of the information transmitted on the AM radio stations near you arrives at your car radio. If
you tried to listen to it all, you would hear a terrible, useless din. But with your radio's dial, you can
adjust the ""center frequency"" of the radio's filter, and select the one station you want to hear. In essence,
the filter operates as an electronic door, which can be slid along the dial, letting some of the energy
th...
AUTHOR: Technical Analysis, Inc.DATE: MAR1987
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SWEENEY AGONISTES by John Sweeney
ARTICLE SYNOPSIS ...SWEENEY AGONISTES by John Sweeney
I must start off this issue with an apology. In the November 1986 issue, Frank Tarkany published
evidence of non-randomness and serial dependence in Dow Jones prices. The Figure 7 we published,
which estimated the trading windows at confidence levels from 95% to 99.5% was just a repeat of Figure
6. Below is the correct Figure 7. Frank's article, which defines the time horizon within which we may
reasonably expect to define effective trading strategies, clearly deserved far better treatment. Once again,
my apologies for this error.
Recently revived is the Fou...
AUTHOR: John SweeneyDATE: MAR1987
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Wyckoff in action (part 2) by David Weis
ARTICLE SYNOPSIS ...Wyckoff in action (part 2) by David Weis
In Part 1 of this article (S&C, June 1986), we recognized at point #12 (Figure 1) that large operators
were accumulating bonds prior to an upswing. The conservative point-and-figure count AB (Figure 2)
indicated potential for a move to 63-28. Long positions were recommended for the opening on April 8
with protective sell stops placed beneath the low at #10. The following discussion dissects the
volume/price behavior during the subsequent mark-up and distribution phase that evolved over a 13-day
period.
April 8. June bonds open at 61-11 before moving t...
AUTHOR: David WeisDATE: MAR1987