MAY 1989 STOCKS & COMMODITIES Magazine

Article Archive For MAY1989

A new cycle analysis trading technique by Russell L. Miller

ARTICLE SYNOPSIS ...A new cycle analysis trading technique by Russell L. Miller This article describes a novel cycle-based day trading system that, under testing, turned in nearly a 300% annualized profit on equity. In most cases, trading with cycles involves entering a position at a cycle peak or valley and holding the position through a half cycle until it's time for the direction to change. My system, on the other hand, uses cycle analysis to predict the direction of the next day's move in a commodity so that a long or a short position can be entered at the next day's open and exited at the close of the marke...

AUTHOR: Russell L. MillerDATE: MAY1989

An advance/decline line for commodities by Thom Hartle

ARTICLE SYNOPSIS ...An advance/decline line for commodities by Thom Hartle One of the first technical lessons in stock market investing is understanding the relationship between the movements of the Dow Jones Industrial Average (DJIA) and the advance/decline (A/D) line for the New York Stock Exchange. The A/D line is the cumulative difference between the number of issues trading up on the day and the number of issues trading down on the day. If 235 issues are up and 356 issues are down then the A/D value for the day will be -121. You may begin a cumulative total with any number. If you start with 1,000 and add ...

AUTHOR: Thom HartleDATE: MAY1989

Averaging systems by Charles Idol

ARTICLE SYNOPSIS ...Averaging systems by Charles Idol Everyone knows the secret of successful investing: buy low and sell high. Unfortunately, that rule requires accurate market predictions. If clouds obscure your crystal ball, it would be to your advantage to consider the merits of the averaging systems. Dollar averaging has been advocated for a long time as a conservative, reasonably successful system which takes some advantage of market cycles, surpasses the ""buy it and forget it"" syndrome and requires almost no thought on the part of the investor. Value averaging requires a little more work, participates ...

AUTHOR: Charles IdolDATE: MAY1989

Opening Range Breakout Part 6 by Toby Crabel

ARTICLE SYNOPSIS ...Opening Range Breakout Part 6 by Toby Crabel Two price chart patterns -- the inside day (ID) and the four-day narrowing range (NR 4) -- have proven to be reliable predecessors of trending action that can be profitably traded with an opening range breakout (ORB) system. (See Stocks & Commodities, February and April 1989.) What happens to the predictive power of these patterns when they're combined? My research assumption was that, because they were both individually successful, they would produce clearer ORB buy/sell indications when combined. I examined this assumption in several ways. First,...

AUTHOR: Toby CrabelDATE: MAY1989

Public/member short selling by Arthur Merrill

ARTICLE SYNOPSIS ...Public/member short selling by Arthur Merrill The statistics on shorting by professionals and by the public can be combined into revealing and successful indicators. The basic figures are published, two weeks late, in Barron's and The Wall Street Journal. The New York and American stock exchanges report total short sales and the portions of the total made up by specialists, floor traders and other members for their own account. These three subcategories can be added together to yield ""total members,"" or shorting by the smart money. Total members can be subtracted from total short sales to ...

AUTHOR: Arthur A. Merrill, C.M.T.DATE: MAY1989

Time, price and pattern by Robert Miner

ARTICLE SYNOPSIS ...Time, price and pattern by Robert Miner This article is taken from the notes of my trading log for a closed and open trade in the platinum market. My trading plan is three-dimensional. I look for coincidences of time, price and pattern in market activity to indicate trades that promise maximum profit potential with minimum exposure and risk. Only when the market completes a reliable pattern, near a time period indicating a change in trend and at an important price level, do I enter or exit a trade. All three dimensions must coincide. The time ratio analysis of the recent major cycles in the ...

AUTHOR: Robert MinerDATE: MAY1989

Traditional chart analysis: A neglected tool? by Thomas Aspray

ARTICLE SYNOPSIS ...Traditional chart analysis: A neglected tool? by Thomas Aspray With the virtual explosion of computerized technical analysis over the past few years, some basic methods of analysis are often forgotten or at least neglected. I confess that I have even contributed to the outbreak of ""oscillatoritis"" by focusing my research and writing on developing new, computerized technical indicators. Despite this, traditional chart analysis does play an important role in my own analysis. Traditional chart analysis is a proven method of analysis and I feel it can be very useful, even for the sophisticated...

AUTHOR: Thomas AsprayDATE: MAY1989