MAY 1984 STOCKS & COMMODITIES Magazine

Article Archive For MAY1984

FILTER PRICE DATA: Moving Averages vs. Exponential Moving Averages by Jack K. Hutson

ARTICLE SYNOPSIS ...FILTER PRICE DATA: Moving Averages vs. Exponential Moving Averages by Jack K. Hutson In the process of collecting stock or commodity time series data, such as daily closes, we lose a significant quantity of information. We are examining a single point (sampling) of price history and endeavoring to glean some market understanding based only on a single daily price sample. This price sampling of a trading market frequently distorts the actual price signal. Among the diverse sources of distortion may be simple record-keeping errors, emotional overflow from other stock issues or commodities, rumo...

AUTHOR: Jack K. HutsonDATE: MAY1984

AUTHOR: Technical Analysis, Inc.DATE: MAY1984

June, 1984 Gold: Studies in Price Action by Jesse H. Thompson

ARTICLE SYNOPSIS ...June, 1984 Gold: Studies in Price Action by Jesse H. Thompson The recent March trend reversal, as represented by the activity of the June 1984 Gold contract, is an excellent study of the interaction of price with natural resistance levels, as well as illustrative of the process of ""distribution to the side"". The most important natural resistance areas for the June 1984 Gold contract relative to the recent rallying activity are the natural divisions of the range formed by the last major monthly peak and the last major monthly bottom. For the June 1984 contract this was the 473.50 top of Jul...

AUTHOR: Jesse H. ThompsonDATE: MAY1984

LANE'S STOCHASTICS by George C. Lane, M.D.

ARTICLE SYNOPSIS ...LANE'S STOCHASTICS by George C. Lane, M.D. In 1954, I was fortunate to join Investment Educators as a ""gopher"". I carried luggage, ran the projector, made charts and took attendance for the owner, Ralph Dystant, and for the technical ""guru"", Roy Larson. When Mr. Larson (who was getting on in years) retired, Mr. Dystant became the guru for the stock market and I took the No. 2 spot teaching commodities. Mr. Dystant had a heart attack and, for a time, I taught both stocks and commodities. Some 43 members of the Chicago Board of Trade, Chicago Mercantile Exchange and MidAmerica Commodity E...

AUTHOR: George C. Lane, M.D.DATE: MAY1984

NOVICE SPECULATOR: My First System by John Sweeney

ARTICLE SYNOPSIS ...NOVICE SPECULATOR: My First System by John Sweeney As a novice trader, newly equipped with a price monitor, personal computer, and a fresh reading of Kaufman's Commodity Trading Systems and Methods, I was looking for some steady money in day-trading. In May of 1983 I was focused on T-Bills. I was afraid of what I called ""overnight risk"" in the financials especially given market antics over the money supply. I wanted a way to generate a small amount of money from the market on a regular basis. I could always, if successful, increase the number of contracts to get into more serious money. Tr...

AUTHOR: John SweeneyDATE: MAY1984

SIDEBAR: FORMULAS

ARTICLE SYNOPSIS ...FORMULAS ""K regular ""= ... To produce the slow version of the stochastic the formula for the ""%D"" is modified as follows:...

AUTHOR: Technical Analysis, Inc.DATE: MAY1984

SIDEBAR: Programming Conventions for BASIC Technical Analysis subroutines

ARTICLE SYNOPSIS ...Programming Conventions for BASIC Technical Analysis subroutines: NO Input/Output routine is provided, only a generic BASIC computational subroutine containing the fundamental technical analysis is provided. This subroutine should, with only minor changes, work on any computer using the BASIC language. INPUT data {daily, weekly, monthly, etc.) must be provided by the user (i.e. YOU} in the following matrix format: X(7,NUM) where NUM= Number of days in the Matrix...

AUTHOR: Technical Analysis, Inc.DATE: MAY1984

STOCHASTIC OSCILLATOR by Harry Schirding

ARTICLE SYNOPSIS ...STOCHASTIC OSCILLATOR by Harry Schirding Stochastic is an oscillator, that like the Relative Strength Indicator (RSI) or Contary Opinion, can be used to indicate an overbought or oversold condition. The process has at its root an observation that in rising markets, prices tend to accumulate near the upper end of the day's trading range. The observation also follows for falling markets that the close will tend to accumulate near the lower end of the day's trading range. The result of computations described below will net two indicators, the ""%D"" and ""K"", which are plotted together to give ...

AUTHOR: Harry SchirdingDATE: MAY1984

THE INSIDE MAN by Bill Dunbar

ARTICLE SYNOPSIS ...THE INSIDE MAN by Bill Dunbar Inside Broker: Listen now, Charley, that stock moved up 5/8 yesterday and 1/2 the day before! You better grab it before it gets outa reach. Charley: Do ya really think I should? I haven't even plotted the price ranges over the past couple of months. Inside Broker: Hell, by the time you get all that done, it'll be gone, man, and you'll be left dancing around at the starting gate. That company is sure to earn four dollars a share this year and seven the next. Charley: What kind of business are they in, anyway? Inside Broker: Who cares? Didn't you hear what your...

AUTHOR: Bill DunbarDATE: MAY1984

TRIX: Triple Exponential Smoothing Oscillator by Jack K. Hutson

ARTICLE SYNOPSIS ...TRIX: Triple Exponential Smoothing Oscillator by Jack K. Hutson Relating the use of Fourier spectrum analysis to stock or commodity data filter selection has been the subject of a number of articles in Technical Analysis. In particular, Warren uses Fourier, in ""Optimizing TRIX: Further Analysis of Triple Exponential Smoothing"" (September 1983 Technical Analysis), to select TRIX's filter coefficients. The problem with any exponential moving average type filter is to properly choose ""alpha"", the filtering constant. Warren's article was important because he was able to mathematically manipul...

AUTHOR: Jack K. HutsonDATE: MAY1984