Article Archive For
SEP1992
AUTHOR: E. Michael PoulosDATE: SEP1992
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Breaking Out Of The Trading Range by John Sweeney
ARTICLE SYNOPSIS ...Breaking Out Of The Trading Range by John Sweeney
Some blessed day, after being mired in a trading range for two years, your market is going to finally go
into a trend. You must be there when it does, not trading something else or, worse, ignoring it from the
golf course. Ideally, you've been trading the range back and forth trying to avoid losing money and
possibly even making a little. You've been selling the tops and buying the bottoms as best you can,
waiting for a breakout. How can you tell if it's happened?
Graphically, as in Figure 1, you are waiting for a trade that hits your maximum...
AUTHOR: John SweeneyDATE: SEP1992
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Forecasting Market Turns Using Static And Dynamic Cycles by Brad Swancoat and Ed Kasanjian
ARTICLE SYNOPSIS ...Forecasting Market Turns Using Static And Dynamic Cycles by Brad Swancoat and Ed Kasanjian
Who hasn't heard of Fibonacci ratios by now, but to actually use them in predicting market turns? Here, two software developers give novice and veteran technicians alike a few things to ponder over.
Cycles have long been used by technicians to forecast turns in the markets. However, the student of
cycle analysis can become frustrated by the intermittent nature of regular rhythmic time cycles. The
understanding and use of dynamic cycles will allow the technician to accurately forecast trend changes
week...
AUTHOR: Brad Swancoat and Ed KasanjianDATE: SEP1992
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Four Common Errors In Testing Trading Systems by Thomas A. Meyers
ARTICLE SYNOPSIS ...Four Common Errors In Testing Trading Systems by Thomas A. Meyers
The author of The Technical Analysis Course debuts as a Stocks & Commodities writer with this article. Here, Thomas Meyers explains that mistakes made in systems testing can make the difference between the accurate assessment of a system's profitability and a distorted picture that failed to take into account certain inevitable factors. Meyers shows you how to fine tune your testing techniques so that these problems can't cost you all your trading capital when you go to trade in real time.
A trading system is a set of rules t...
AUTHOR: Thomas A. MeyersDATE: SEP1992
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Gann Weekly Swing Chart by Jerry Favors
ARTICLE SYNOPSIS ...Gann Weekly Swing Chart by Jerry Favors
Newsletter publisher Jerry Favors presents another Gann method, this time the weekly swing chart, as a timing tool with which to track individual stocks.
One of the methods that W.D. Gann used to determine and trade the main trend of stocks and
commodities was what are commonly referred to as swing charts. These swing charts cover varying
degrees of time spans ranging from hourly charts to yearly charts. Each of the Gann swing charts turns up
or down based on specific rules. The longer the time span covered by any swing chart, the stronger and
more im...
AUTHOR: Jerry FavorsDATE: SEP1992
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Is Dow Theory Sending Us A Warning? by Michael D. Sheimo
ARTICLE SYNOPSIS ...Is Dow Theory Sending Us A Warning? by Michael D. Sheimo
Michael Sheimo, best known for books such as Dow Theory Redux and Stock Market Rules, tackles the age-old question of whether the Dow theory is still valid and if it is, is it really sending us a warning?
After more than a hundred years, are the concepts of the Dow theory still useful in determining stock
market strength? The Dow theory was arrived at by an evolutionary process over a period of several
years. At the turn of the century, Charles Henry Dow discussed stock trading ideas in the newspaper he
was both editor and publisher of...
AUTHOR: Michael D. SheimoDATE: SEP1992
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Real Life: Shearson's Jeffrey Weiss by Thom Hartle
ARTICLE SYNOPSIS ...Real Life: Shearson's Jeffrey Weiss by Thom Hartle
Some people get a start on their careers early, but Jeffrey Weiss, a Chartered Market Technician and a first vice president with Shearson Lehman, began earlier than most, at age 13. The technical analysis risk management approach (Tarma) he pioneered was developed from his own trading experiences, including the disastrous 1973-74 bear market. His opinions have been widely solicited outside Shearson and he has been a guest on such well-known financial and investment shows as ""Wall $treet Week,"" CNBC's ""Inside Opinion"" and ""Business View""...
AUTHOR: Thom HartleDATE: SEP1992SUBJECT: Interview
AUTHOR: Technical Analysis, Inc.DATE: SEP1992
SIDEBAR: SIDEBAR 1
AUTHOR: Technical Analysis, Inc.DATE: SEP1992
AUTHOR: Technical Analysis, Inc.DATE: SEP1992
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Summed Rate Of Change (KST) by Martin J. Pring
ARTICLE SYNOPSIS ...Summed Rate Of Change (KST) by Martin J. Pring
In the August Stocks & Commodities, noted technician Martin Pring presented smoothed rate of change indicators as a method to identify both the trend and reversals of trend in the markets. He pointed out that different rate of change measurements could lag important market turns due to the presence of different time cycles. Here, Pring presents his method of combining various rate of change indicators for enhanced trend and reversal of trend identification.
Previously, I pointed out that price trends in financial markets are influenced by the in...
AUTHOR: Martin J. PringDATE: SEP1992
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Traders' Tips by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Traders' Tips by Technical Analysis, Inc.
METASTOCK PROFESSIONAL 3.0
Mass Index
The June 1992 issue of S&C presented an indicator called the mass index developed by Donald Dorsey.
The indicator is a 25 day moving sum of a ratio of two moving averages. The numerator of the ratio is the
exponentially smoothed moving average of the daily ranges. The denominator of the ratio is the
numerator smoothed a second time using the same exponential moving average. The exponential moving
averages use a smoothing factor (alpha) equivalent to a nine-day simple moving average....
AUTHOR: Technical Analysis, Inc.DATE: SEP1992
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Utilities And Stocks by John J. Murphy
ARTICLE SYNOPSIS ...Utilities And Stocks by John J. Murphy
Last month, this technical trailblazer examined how utilities and bonds were interconnected. This month, John J. Murphy analyzes how utilities in turn affect stocks.
My article on utilities and bonds examined the close link between utility stocks and Treasury bond
prices. Because bonds usually act as a leading indicator for stocks and because utilities are sensitive to
interest rates, it should be no surprise that utilities also provide advance warning about the future
direction of the stock market as a whole.
Figure 1 provides a five-year comparison o...
AUTHOR: John J. MurphyDATE: SEP1992
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V.10:9 SIDEBAR: Calculating the KST by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Calculating the KST by Technical Analysis, Inc.
KST formulas for short, intermediate, and long term daily or weekly data....
AUTHOR: Technical Analysis, Inc.DATE: SEP1992