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• Advance Breakdowns And Breakouts In Oscillators by Martin J. Pring

  ARTICLE SYNOPSIS ...Advance Breakdowns And Breakouts In Oscillators by Martin J. Pring Oscillators have always been a popular tool for traders. Here are some guidelines from a leading market analyst on various ways to apply this widely used technique. I think of momentum as a generic term that embraces all kinds of oscillator-type indicators. Stochastics, the relative strength index (RSI), the moving average convergence/divergence (MACD) and my own KST system are all statistical variations of price data, which appear as oscillators when plotted on a graph. Some are relatively smooth, such as the stochastic ind...

AUTHOR: Martin J. PringDATE: OCT1994

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• Developing A Trading Strategy by Frank McGuff

  ARTICLE SYNOPSIS ...Developing A Trading Strategy by Frank McGuff Trading strategies have several required characteristics, ranging from the ability to provide clear, unambiguous signals to the ability to validate each trade against the strategy. Developing and validating trading strategies is an absolute necessity in becoming a successful trader. Here, then, are some suggestions for designing a trading strategy. An effective trading strategy will, first, be automatic; second, it will incorporate risk management; third, it will define what actions are to be taken in the near future; and finally, it will provid...

AUTHOR: Frank McGuffDATE: OCT1994

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• Expiration Month And Strike Price For Options by Robert M. Peevey

  ARTICLE SYNOPSIS ...Expiration Month And Strike Price For Options by Robert M. Peevey It never hurts to brush up on the basics, we always say, and so here are the basics of options as well as an analysis of the correct option expiration month and strike price to achieve maximum profit from each trade. Stock and index options provide a leveraged investment alternative to the direct purchase of the underlying assets. They provide more bang for the buck and place a premium on being correct in predicting price moves -- the ideal circumstance for the technician. This article is designed to help technicians in their q...

AUTHOR: Robert M. PeeveyDATE: OCT1994

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• Interview: Speaking of Seasonals with Steve Moore of Moore Research Center by Thom Hartle

  ARTICLE SYNOPSIS ...Interview: Speaking of Seasonals with Steve Moore of Moore Research Center by Thom Hartle The concept of seasonality is certainly not new. ""To every thing there is a season,"" Ecclesiastes and, more recently, the 1960s rock group The Birds said. And of course, for commodity traders the commodity markets have always offered seasonal trading opportunities. This month, Stocks & Commodities interviews Steve Moore, a trader and market research analyst who focuses on seasonal and statistical studies of the futures markets. Topics covered include seasonal trades, correlation in markets, options tra...

AUTHOR: Thom HartleDATE: OCT1994SUBJECT: Interview

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• Money Supply And The Leading Economic Indicators by Clifford J. Sherry, Ph.D.

  ARTICLE SYNOPSIS ...Money Supply And The Leading Economic Indicators by Clifford J. Sherry, Ph.D. This longtime Stocks & Commodities contributor and author discusses the relationship between the money supply and the composite index of leading economic indicators. The National Bureau of Economic Research developed a system of leading, coincident and lagging indicators covering a wide variety of economic processes in the 1930s. The monthly figures for these indicators and their components, as well as a variety of other economically important time series, are published by the US Department of Commerce in Business ...

AUTHOR: Clifford J. Sherry, Ph.D.DATE: OCT1994

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• The DJIA And The Stock Index Futures Cycle by Christopher Cadbury

  ARTICLE SYNOPSIS ...The DJIA And The Stock Index Futures Cycle by Christopher Cadbury Do phases of the three-month futures cycle usually coincide with periods of greatest weakness or periods of substantial strength in the stock market? This American Stock Exchange trader details DJIA performance in relation to the beginning trading periods for the lead stock index futures contracts. Stock index futures expire on the third Friday of March, June, September and December. The three-month period between expiration dates is known as the three-month futures cycle. Declines in the Dow Jones Industrial Average (DJIA) o...

AUTHOR: Christopher CadburyDATE: OCT1994

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• The Rate Of Change Indicator by Bruce R. Faber

  ARTICLE SYNOPSIS ...The Rate Of Change Indicator by Bruce R. Faber The rate of change is an indicator that measures the pace at which price is changing. Tracking the rate of the change of price can confirm trends and forewarn of market reversals. Here, then, are some guidelines for using this popular indicator. One of the simplest of all indicators to understand and use is the rate of change indicator (ROC). That the idea is simple in no way negates its effectiveness; it is a basic tool, which when used with other tools helps to determine the most opportune buy and sell points for a given security. There has b...

AUTHOR: Bruce R. FaberDATE: OCT1994

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• Traders' Tips

  ARTICLE SYNOPSIS ...Traders' Tips This month's Traders' Tips all focus on the rate of change (ROC) indicator discussed in Bruce Faber's article. The rate of change is a function already available in both SuperCharts and TradeStation. From within the Quickeditors of either program, you can create a new indicator. The performance of ROC can often be improved by smoothing. An example is given in CompuTrac SNAP. Also, Behold! and MetaStock's System Tester can be used to measure the performance of the ROC indicator....

AUTHOR: Technical Analysis, Inc.DATE: OCT1994

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• Trading The S&P With A Neural Network by Jeremy G. Konstenius

  ARTICLE SYNOPSIS ...Trading The S&P With A Neural Network by Jeremy G. Konstenius Here's an example of the steps that one trader took to use a neural network to trade the stock market index futures. Today's technical traders have the opportunity to use sophisticated methods for analyzing and developing trading strategies. More and more traders are looking at artificial intelligence, specifically at the use of neural networks to develop new trading strategies such as forecasting market movements. Artificial neural networks are mathematical simulations of biological neural networks, in which a neural net is sho...

AUTHOR: Jeremy G. KonsteniusDATE: OCT1994

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• Turning Trading Weaknesses into Strengths by Adrienne Laris Toghraie

  ARTICLE SYNOPSIS ...Turning Trading Weaknesses Into Strengths by Adrienne Laris Toghraie The founder of Trading on Target explains how to identify your trading weaknesses and turn them into strengths. What is your greatest weakness? What if you were to transform your greatest weakness into your greatest strength? Our greatest strengths provide us with the skills, talents and resources to reach our goals. So when weaknesses are acknowledged, overcome and transformed, they can have the power to lead us to our greatest achievements. Hundreds of traders have told me that the need for excitement is their most com...

AUTHOR: Adrienne Laris ToghraieDATE: OCT1994

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• Using A Moving Average System by Lars N. Kestner

  ARTICLE SYNOPSIS ...Using A Moving Average System by Lars N. Kestner Moving averages was one of the first trading methods used by technicians. Here are the basics to using a moving average system. The process of developing a trading system consists of three steps. First, the developer must have an idea or a theory of how the proposed system will make profits. This could be breakout trading, range trading or anything in between. Then, once the developer has decided on an idea, the next step is to implement it - that is, quantify it - into a specific set of rules that can be evaluated. A concept such as ""Prices...

AUTHOR: Lars N. KestnerDATE: OCT1994