{"title":"Volume 10 (1992)","description":"\u003cp\u003eBrowse Volume articles by issue:\u003c\/p\u003e\u003cdiv style=\"display:flex;flex-wrap:wrap;gap:12px;\"\u003e\n\u003ca href=\"\/collections\/articles-volume-10\/issue-01?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 1 January\u003c\/a\u003e\u003ca href=\"\/collections\/articles-volume-10\/issue-02?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 2 February\u003c\/a\u003e\u003ca href=\"\/collections\/articles-volume-10\/issue-03?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 3 March\u003c\/a\u003e\u003ca href=\"\/collections\/articles-volume-10\/issue-04?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 4 April\u003c\/a\u003e\u003ca href=\"\/collections\/articles-volume-10\/issue-05?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 5 May\u003c\/a\u003e\u003ca href=\"\/collections\/articles-volume-10\/issue-06?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 6 June\u003c\/a\u003e\u003ca href=\"\/collections\/articles-volume-10\/issue-07?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 7 July\u003c\/a\u003e\u003ca href=\"\/collections\/articles-volume-10\/issue-08?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 8 August\u003c\/a\u003e\u003ca href=\"\/collections\/articles-volume-10\/issue-09?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 9 September\u003c\/a\u003e\u003ca href=\"\/collections\/articles-volume-10\/issue-10?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 10 October\u003c\/a\u003e\u003ca href=\"\/collections\/articles-volume-10\/issue-11?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 11 November\u003c\/a\u003e\u003ca href=\"\/collections\/articles-volume-10\/issue-12?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 12 December\u003c\/a\u003e\u003ca href=\"\/collections\/articles-volume-10\/issue-13?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 13 Quick Scans\u003c\/a\u003e\u003ca href=\"\/collections\/articles-volume-10\/issue-14?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 14 Product Reviews\u003c\/a\u003e\n\u003c\/div\u003e","products":[{"product_id":"v10-c07-thecrb-pdf","title":"V.10:7 (300-302): The CRB Index\/Bond Ratio by John J. Murphy","description":"The CRB Index\/Bond Ratio\nby John J. Murphy\u003cbr\u003e\u003cbr\u003eVeteran technician John J. Murphy, whose trailblazing work on technical analysis and intermarket\nanalysis are classics of the field, has delved into how bonds and commodities are interrelated and then\nhow bonds and stocks influence each other. Now, he introduces the C RB index\/bond ratio as another\nexample of how these three market sectors interact, allowing us to determine the relative strength\nbetween bonds and commodities.\u003cbr\u003e\u003cbr\u003eIn my last two articles, I examined first the inverse relationship between the Commodity Research\nBureau (CRB) Index and bond prices and then the tendency for bond prices to act as a leading indicator\nfor the stock market. Another way to combine these three sectors is to compare the CRB Index\/Treasury\nbond ratio to equities. The CRB Index\/bond ratio simply divides the CRB Index by Treasury bond futures\nprices:\u003cbr\u003e\u003cbr\u003e...\u003cbr\u003e\u003cbr\u003eWhen the ratio is rising, commodity prices are outperforming the bond market and inflation pressures are\nrising. When the ratio is falling, bond prices are outperforming commodity prices and inflation pressures\nare falling. From an asset allocation standpoint, a rising ratio line also suggests that commodities should\nbe emphasized over bonds. When the ratio is falling, bonds are favored over commodities.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133796872561,"sku":"\\V10\\C07\\THECRB.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_38210985-5b0a-4850-95c4-24d5f649cd3e.jpg?v=1739652746"},{"product_id":"v10-c09-fourcom-pdf","title":"V.10:9 (376-378): Four Common Errors In Testing Trading Systems by Thomas A. Meyers","description":"Four Common Errors In Testing Trading Systems by Thomas A. Meyers\u003cbr\u003e\u003cbr\u003eThe author of The Technical Analysis Course debuts as a Stocks \u0026amp; 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.\u003cbr\u003e\u003cbr\u003eA trading system is a set of rules that can be used to generate specific buy and sell signals. For\nexample, a simple trading system can be based on a moving average crossover. You buy when prices rise\nfrom below to above the moving average line and sell when prices drop from above to below the moving\naverage line. For short positions, you do just the opposite. You sell short when prices decline from above\nto below the moving average line and cover the short sale when prices move from below to above the\nmoving average line.\u003cbr\u003e\u003cbr\u003eMore complex trading systems can be developed using multiple moving averages, oscillators, stochastics,\nrelative strength index, moving average convergence\/divergence (MACD) or numerous other technical\nanalysis techniques, either by themselves or in combination. A variety of price and time filters can also be\nused to enhance the reliability of signals and stop-loss rules can be incorporated to control losses.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133796905329,"sku":"\\V10\\C09\\FOURCOM.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_c4e44dd5-767b-4995-bf18-cb08c2d83827.jpg?v=1739652748"},{"product_id":"v10-c09-summed-pdf","title":"V.10:9 (365-369): Summed Rate Of Change (KST) by Martin J. Pring","description":"Summed Rate Of Change (KST) by Martin J. Pring\u003cbr\u003e\u003cbr\u003eIn the August Stocks \u0026amp; 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.\u003cbr\u003e\u003cbr\u003ePreviously, I pointed out that price trends in financial markets are influenced by the interaction of many\ndifferent time cycles. Figure 1 shows several smoothed rates of change (ROC), each reflecting a different\ncycle. Major market turning points usually occur when all three indicators reverse direction\nsimultaneously. Similarly, trading range markets have a habit of occurring when they are in conflict.\nThese three indicators do not reflect every cycle, but they do give a more revealing picture than simply\nusing one indicator on its own.\u003cbr\u003e\u003cbr\u003eMovements of the nine-month moving average of the 24-month rate of change in the bottom panel of\nFigure 1 closely monitor the primary bull and bear swings of the market itself. Signals of trend reversals\nare often given well after the fact, however, because it is slow to reverse direction. One way around this\nis to combine four smoothed rates of change into one indicator, weighting each one in rough proportion to its time span. (See sidebar, \"The KST.\") This enables the longer-term smoothed momentum to turn\nfaster but keeps whipsaw signals to a minimum. Because such an indicator also includes several rates of\nchange covering different time spans, it also reflects the interaction of several time cycles.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133797069169,"sku":"\\V10\\C09\\SUMMED.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_ba6c650a-9f80-472b-8c56-2cf495a2554b.jpg?v=1739652750"},{"product_id":"v10-c04-reversi-pdf","title":"V.10:4 (184-186): Reversing Your Losses by John Sweeney","description":"Reversing Your Losses\nby John Sweeney\u003cbr\u003e\u003cbr\u003eLast month, Settlement closed with some incomplete work: the profit and loss charts for trades added\nonto the underlying system that was developed in the months prior. To finish the subject of evaluating\nadd-on trades, I've completed those charts by trading the add-on system for the remaining years of data \n1991, 1990 and 1988. To recap, the underlying bond trading system trades solely off the 35-day simple\nmoving average of closing bond prices in the December contract. The trend is determined by the 17-day\naverage of the day-to-day difference in the moving average. When the one-day difference is greater than\nthe trend, go long. When less, go short. Use a $700 stop.\u003cbr\u003e\u003cbr\u003eThe add-on idea was to wait three days to see whether the underlying trade went bad, since experience\nshowed that most of the bad news came quickly. The idea was to enter in the same direction as the\nunderlying trade on the opening of the fourth day and close when the underlying trade closes. The point\nof all this was to illustrate developing a system in gory detail.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133799788913,"sku":"\\V10\\C04\\REVERSI.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_9f8d0b9a-34a1-441f-8af1-411c7111d0aa.jpg?v=1739652782"},{"product_id":"v10-c08-rateofc-pdf","title":"V.10:8 (325-327): Rate of Change by Martin J. Pring","description":"Rate of Change\nby Martin J. Pring\u003cbr\u003e\u003cbr\u003eRespected and well-known technician and author Martin Pring debuts as a STOCKS \u0026amp; COMMODITIES\nauthor, writing about the rate of change oscillator, a simple method of figuring advances or declines in a\ngiven period.\u003cbr\u003e\u003cbr\u003eThe rate of change (ROC) is perhaps the simplest form of oscillator or momentum to understand and\ncalculate. It measures the speed of an advance or decline over a specific time span and is calculated by\ndividing today's level by a level n periods ago and multiplying the result by 100. For example, an\nannualized (or 12-month) ROC is calculated by dividing the price in January 1992 by that of January\n1991. Take the difference between the indicator and the 100 level and plot the result as a positive or\nnegative number, using a reference line of 0. In this case, 101 is plotted as +1, 102 as +2, 98 as -2 and so\non. The result is plotted as a positive or negative figure in a continuous oscillating series. If the price is\nidentical in both periods, the ROC is plotted at zero. The longer the time span under consideration. the\ngreater the significance of the trend being measured. Consequently, movements in a 10-day ROC are far\nless meaningful than those calculated over 12-month or 24-month time spans.\u003cbr\u003e\u003cbr\u003eWARNING IN ADVANCE\u003cbr\u003e\u003cbr\u003eUsing ROC helps explain some cyclical movements in markets, often giving advance warning of a\nreversal in the prevailing trend. This indicator comes into its own during light trading-range markets. but\nlike any other oscillator, the ROC gives misleading signals when a sustained or linear trend is under way.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133799821681,"sku":"\\V10\\C08\\RATEOFC.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_4860ef11-28d1-4f9a-929b-9c383d6c0062.jpg?v=1739652785"},{"product_id":"v10-c05-thelink-pdf","title":"V.10:5 (208-211): The Link Between Bonds And Commodities by John J. Murphy","description":"The Link Between Bonds And Commodities\nby John J. Murphy\u003cbr\u003e\u003cbr\u003eLike a set of tumbling dominoes, intermarket analysis is based on the theory that one instrument affected\nwill in turn affect another. Technical pioneer John Murphy, best known for his trailblazing work in\ntechnical analysis and intermarket analysis, explains how that interrelationship between bonds and\ncommodities works.\u003cbr\u003e\u003cbr\u003eIntermarket analysis adds another layer to the work of the technician by considering activity in related\nmarkets. Whereas traditional technical analysis treats each market separately, intermarket technical\nanalysis suggests that important directional clues can be obtained in one market by studying what is\nhappening in related markets. The stock market and the U.S. dollar, for example, are influenced by the\ndirection of interest rates. The direction of interest rates, in turn, is influenced by the direction of\ncommodity prices, and so on.\u003cbr\u003e\u003cbr\u003eCommodity prices and bond prices usually trend in opposite directions; bond yields trend in the same\ndirection as commodities. Thus, commodities and bonds should be viewed together. Analysis of either\nsector is incomplete without analysis of the other. Figure 1 shows the Commodity Research Bureau (CRB)\nFutures Price Index, a basket of 21 commodities, and bond yields generally trended in the same direction\nfrom 1988 to February 1992. At year-end 1991, the drop in bond yields to new lows was not confirmed\nby the CRB Index, which held above its mid-1991 trough; that divergence was followed by a rebound in\nboth measures.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133800804721,"sku":"\\V10\\C05\\THELINK.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_d7f5ad4b-e8fc-48ad-8cc2-e6fad41fcd5c.jpg?v=1739652809"},{"product_id":"v10-c05-thetech-pdf","title":"V.10:5 (195-200): The Technical Song of Bernadette Murphy by Thom Hartle","description":"The Technical Song of Bernadette Murphy by Thom Hartle\u003cbr\u003e\u003cbr\u003e\"The investor is in conflit, right now, because we've had the tremendous advance of consumer stocks\nthroughout the 1980s. What we have is this battle: Should you be following capital goods? Or should you\nstay with growth stocks?\" Brernadette Murphy\u003cbr\u003e\u003cbr\u003eBernadette Murphy, C.M.T., of M. Kimelman \u0026amp; Co., who, like so many others, came to Wall Street out of\ncuriosity but never intended to stay, is a longtime veteran of the markets. She has seen fads take the\nStreet by storm and then promptly fade, and she's witnessed market peaks and crashes come and go.\nIndeed, you may have benefited from her expertise from her appearances on Wall Street Week, where\nshe's been a regular panelist for the past 12 years. She also appears weekly on CNBC\/FNN and is a\nregular guest on Cable News Network. She's also no newcomer to technical analysis; in fact, she was\nthe fifth president of the Market Technicians Association in the 1970s. S TOCKS \u0026amp; COMMODITIES Editor\nThom Hartle interviewed Bernadette Murphy via telephone on February 21, 1992, inquiring about,\namong other topics, what she witnessed at the conclusions of the bull and bear markets of the 1960s and\nthe 1970s.\u003cbr\u003e\u003cbr\u003eSo tell us about the early days of your work in the market.\u003cbr\u003e\u003cbr\u003eI started out at a conservative, primarily investment banking firm called Ladenburg Thalmann \u0026amp; Co. I\nwas in the trading department. I hadn't really intended to make a career on Wall Street when I started out;\nI was curious about it, and I thought it would be an interesting learning experience.\u003cbr\u003e\u003cbr\u003eBut you stayed on, obviously.\u003cbr\u003e\u003cbr\u003eWell, as with so many others, once you get into the business you find challenges daily, and you find you\nwant to meet them. So I was clerking on the convertible bonds desk when the market crashed in May\n1962, and chaos prevailed. I happened to notice during the hysteria that one of our clients, an insurance\ncompany in Toronto, had really anticipated a change in the direction of the market and for a number of\nmonths before had had scale orders in, which was the way transactions used to be entered. I was intrigued.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133800837489,"sku":"\\V10\\C05\\THETECH.PDF","price":5.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_6d55cd93-4a55-46b8-ab20-6c049af9f397.jpg?v=1739652811"},{"product_id":"v10-c09-reallif-pdf","title":"V.10:9 (370-375): Real Life: Shearson's Jeffrey Weiss by Thom Hartle","description":"Real Life: Shearson's Jeffrey Weiss by Thom Hartle\u003cbr\u003e\u003cbr\u003eSome 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\" and CNN's \"Business Morning\" and \"Moneyline.\" He is frequently quoted in the print media as well. Stocks \u0026amp; Commodities interviews Weiss on topics ranging from trading perspectives to the philosophy behind Tarma.\u003cbr\u003e\u003cbr\u003eHow did you get started following the markets and with technical analysis?\u003cbr\u003e\u003cbr\u003eWell, it all began when my sixth-grade mathematics teacher gave me and the other pupils in the class\n50,000 hypothetical dollars each to invest in the stock market and I managed to make quite a bit of paper\nmoney so to speak. Around that time was my 13th birthday and my dad gave me $400 to do the real\nthing. I doubled my money over the next year and my fascination with the stock market was born. It all\nseemed too easy, though, and it led me down\u003cbr\u003e\u003cbr\u003eA garden path?\u003cbr\u003e\u003cbr\u003eIt led me down a false path, you might say. It was that easy to double my money in one year, in Mattel\nToy, from 1968 to 1969. I made 100% and sold the stock at the equivalent of $160 per share. But I\nlearned my real lesson in the market after I had piled up some profits, purchased a bicycle with my\nprofits from Mattel and began peddling after school every day up to the Shearson Hammill that's what\nOur firm was called back then brokerage office in the late 1960s. I kept on wheeling and dealing, and\nthings were great until 1973-74, when I experienced what was at that point the most devastating bear\nmarket in many, many decades. Out of that I was able to transform a financial loss into a real-life gain,\nthe essence of which was a discipline to help me cope with capital preservation and not just capital\nappreciation. That's called TARMA, or technical analysis risk management approach, which is what I'm\nknown for today at Shearson Lehman Brothers.\u003cbr\u003e\u003cbr\u003eWhat did you do after suffering this string of losses?\u003cbr\u003e\u003cbr\u003eI did something that I don't see done enough today. I dwelled on my losses. I forgot about the times I\nmade a profit because I didn't learn too much from those times, but I consistently analyzed my losses in\ndepth. And I realized that if we were in a bear market the way we were in 1973-74, no matter what I\npurchased, the chances were that I was going to lose money. So I began to look less at specific stocks but\ninstead incorporate these specific stock analyses into market segments and then the market as a whole.\nAnd I also learned about the uses of a stop order and that capital preservation should always precede\ncapital appreciation in any sound, comprehensive investment discipline.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133800935793,"sku":"\\V10\\C09\\REALLIF.PDF","price":4.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_0c3ded07-5032-42d4-998d-9c19b10cba29.jpg?v=1739652814"},{"product_id":"v10-c10-stocksy-pdf","title":"V.10:10 (403-406): Stocks Yield To Bonds by Tushar S. Chande","description":"Stocks Yield To Bonds by Tushar S. Chande\u003cbr\u003e\u003cbr\u003eA stock's price may be considered a mechanism to adjust its dividend yield. In the short run, the dollar amount of the dividend is fixed, and so stock prices change to accommodate changes in bond yields. Lags occur because it takes time to convince most participants that bond yields have changed meaningfully. Here's an example of quantitative intermarket analysis, analyzing the relationship of bond yields to stock dividends.\u003cbr\u003e\u003cbr\u003eThe general relationship between stocks and bonds is widely recognized. Stock dividends and interest\nrates play an important role in any fundamental analysis of stock valuations. An excellent intuitive\nexplanation of the link between stocks and bonds was provided by John J. Murphy in the June 1992 issue\nof STOCKS \u0026amp; COMMODITIES, in which he noted that stock and bond prices generally move in the same\ndirection. At important turning points, however, bond prices usually turn ahead of stock prices.\u003cbr\u003e\u003cbr\u003ePrices are inversely related to yield because the dollar amount of the interest paid on a bond is fixed. As\nprices increase, bond yields decrease. In the short run (many months or perhaps a few years), the dollar\namount of the stock dividend is fixed because corporate managements typically change their dividend\npolicy only once a year. Hence, price changes are needed to adjust a stock's dividend yield. In the long\nrun, the dividend can be changed (cautiously increased or reluctantly decreased), thereby adjusting\nrelative yield relationships without requiring large price changes.\u003cbr\u003e\u003cbr\u003eIn effect, the market is trying to maintain a ratio of stock dividends to bond yields that reflects\nexpectations of relative risk. If stocks are perceived as being riskier than bonds, then investors demand a\nrelatively higher stock dividend yield, lowering stock prices. Even if the perception of stock returns\nremains unchanged, a change in the perception of bond riskiness may increase bond yields. The adjustment of stock yields may occur quickly or slowly and proportionately or disproportionately to\nchanges in bond yields. Since stock traders mostly trade stocks and bond traders mostly trade bonds, the\ntwo markets may go their own separate ways when observed on a daily basis. A rough parity is eventually\nre-established, often with dramatic price changes.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133800968561,"sku":"\\V10\\C10\\STOCKSY.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_1c0decec-d7df-45cd-9d20-1d364e185a95.jpg?v=1739652816"},{"product_id":"v10-c12-sidecan-pdf","title":"V.10:12 (521-524): SIDEBAR: THE CANDLESTICK METHOD by Technical Analysis, Inc.","description":"THE CANDLESTICK METHOD by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eHow to make a basic candlestick chart.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133801066865,"sku":"\\V10\\C12\\SIDECAN.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_db9d099b-4fc9-4349-b6c1-d7a3e9b3d113.jpg?v=1739652818"},{"product_id":"v10-c12-sidetri-pdf","title":"V.10:12 (537-540): SIDEBAR: TRIX MOMENTUM IN METASTOCK by Technical Analysis, Inc.","description":"TRIX MOMENTUM IN METASTOCK by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eTRIX momentum in MetaStock.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133801623921,"sku":"\\V10\\C12\\SIDETRI.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_11955a9d-abc3-4ebe-bab6-595acd559158.jpg?v=1739652830"},{"product_id":"v10-c13-q571-pdf","title":"V.10:13 : Quick-Scans on Relevance III (Relevance III Inc.) by Techncial Analysis, Inc.","description":"Quick-Scans on Relevance III (Relevance III Inc.) by Techncial Analysis, Inc.\u003cbr\u003e\u003cbr\u003eTHE NEW STOCK MARKET\nA Complete Guide to the Latest Research, Analysis and Performance\nProbus Publishing\n1925 N. Clybourn St.\nChicago, IL 60614\n(800) PROBUS-1\nAuthors: Diana R. Harrington, Frank J. Fabozzi and H. Russell Fogler\nPublished 1990, 360 pages, $37.50","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133801656689,"sku":"\\V10\\C13\\Q571.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_61f18181-1418-409e-8ce4-a84fd806f4ea.jpg?v=1739652833"},{"product_id":"v10-c12-aspread-pdf","title":"V.10:12 (532-536): A Spreadsheet For Time Ratio Analysis by Robert Miner","description":"A Spreadsheet For Time Ratio Analysis by Robert Miner\u003cbr\u003e\u003cbr\u003eTraders using ratio of time cycle analysis will find this spreadsheet version of determining target dates of possible cycle highs or lows helpful. The author discusses the use of projected target dates, along with an example of a trade.\u003cbr\u003e\u003cbr\u003eAs W. D. Gann described more than 70 years ago, markets make swing highs or lows in proportion\n(relation) to past market cycles. My March 1991 STOCKS \u0026amp; COMMODITIES article, \"Time as a trading tool,\"\ndescribed the theory and methodology of projecting proportions of past cycles forward in time to deter\nnine future dates with the greatest probability of change in trend. Past cycles are proportioned by the most\nimportant geometric ratios, and these proportions of past cycles are in turn projected forward. Future\nchanges in trend should coincide with clusters of target dates from proportions of past cycles. Any\nspreadsheet program, as I will demonstrate, can project the future dates.\u003cbr\u003e\u003cbr\u003eProportioning and projecting forward dates with a spreadsheet program is as easy as dividing a price\ncycle for retracements or projections. A time projection spreadsheet will simply treat the values as dates\ninstead of prices. A time projection spreadsheet proportions various past cycles and projects the future\ndates of the proportioned past cycles.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133802279281,"sku":"\\V10\\C12\\ASPREAD.PDF","price":4.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_3cd415e0-3c79-4006-9a06-c36c415ab979.jpg?v=1739652850"},{"product_id":"v10-c02-sidecci-pdf","title":"V.10 (74): SIDEBAR: Calculating an 11-period CCI","description":"CALCULATING AN 11-PERIOD CCI\u003cbr\u003e\u003cbr\u003eThe commodity channel index (CCI) can be calculated using any lookback period chosen by the trader. The Excel\nspreadsheet shown in sidebar Figure 1 is an 11-period CCI for the Dow Jones Industrial Average. The first step is to\ncalculate the daily typical price. This is the high, low and close added together and divided by three. This step is\nperformed in column E. The formula for cell E2 is: ...","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133803164017,"sku":"\\V10\\C02\\SIDECCI.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_c57959b4-0889-497f-96c0-285c72e5a9e9.jpg?v=1739652871"},{"product_id":"v10-c12-bondyld-pdf","title":"V.10:12 (529-531): Bond Yield Diagnosis by John Kean","description":"Bond Yield Diagnosis by John Kean\u003cbr\u003e\u003cbr\u003eInflation is usually the first choice for analyzing the forces driving the direction of bond yields, but systems analyst John Kean illustrates that charting government borrowing can help determine the trend of interest rates.\u003cbr\u003e\u003cbr\u003eBond yields are one financial factor that stands out from the rest in importance. They are a critical item\nin economic growth, have a particularly strong influence on stock prices and foreign exchange rates and\nare often used as a metaphor for a country's overall economic and political health. Although bond yields\nare acknowledged to be important, they are also considered to be hard to explain and even harder to\npredict. Breaking bond yields down into component parts can help us understand them. Of the factors\noften mentioned in connection with bond yields, three of the most substantial should be examined in\ndetail: inflation, economic activity and government borrowing.\u003cbr\u003e\u003cbr\u003eINFLATION, ECONOMICS, BORROWING\u003cbr\u003e\u003cbr\u003eInflation is most often cited in connection with long-term interest rates. Superficially, this makes good\nsense. In reality, however, the last 80 years have seen prolonged and sharp departures between U.S. bond\nyields and inflation rates, and in the last few years, the U.S. has been in one of the more pronounced\ndivergences. As Figure 1 shows, inflation has offered only limited explanation, much less prediction, for\nbond rates over the last 24 years. Number-crunching reveals that highest-grade U.S. bond real yields (that\nis, yield minus inflation) averaged only 0.81% from 1914 through 1982 and 1.05% from l950 through\n1982. During the 1980s, average real Treasury bond yields expanded to 5.5% from 1983 on, a huge\nincrease. Clearly, culprits other than inflation are at work in determining bond rates.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133803196785,"sku":"\\V10\\C12\\BONDYLD.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_4508cd06-e80e-4859-9de5-c3fa602ad70b.jpg?v=1739652874"},{"product_id":"v10-c10-guideto-pdf","title":"V.10:10 (436-438): A Guide To Pyramiding by Nauzer J. Balsara","description":"A Guide To Pyramiding by Nauzer J. Balsara\u003cbr\u003e\u003cbr\u003ePyramiding, the process of adding to the number of contracts during the life of a trade, needs to be distinguished from the strategy of increasing or decreasing the trading size contingent on the outcome of a closed-out trade. Typically, pyramiding is undertaken with a view toward concentrating resources on a winning trade, but pyramids could also be used to average or dilute the entry price on a losing trade. Adding to a losing position is essentially a case of good money chasing after bad and so, in this article, Nauzer Balsara examines the concept of adding to profitable positions.\u003cbr\u003e\u003cbr\u003eCritical to successful pyramiding is an appreciation of the concept of the effective exposure on a trade,\nwhich measures the dollar amount at risk at any point during the life of a trade. It is a function of the\nentry price, the current stop price and the number of contracts traded of the commodity in question. The\neffective exposure on a trade is defined as:\u003cbr\u003e\u003cbr\u003e\n(a) for a short trade:\u003cbr\u003e\u003cbr\u003e(current stop price - entry price)(number of contracts)\u003cbr\u003e\u003cbr\u003e(b) for a long trade:\u003cbr\u003e\u003cbr\u003e(entry price - current stop price)(number of contracts)\u003cbr\u003e\u003cbr\u003e\nAs long as a trade has not registered an unrealized profit, the effective exposure on a trade is positive and\nrepresents the maximum amount of capital at risk, assuming that prices do no gap through the stop price.\nA trade protected by a breakeven stop equal to the trade entry price has no effective exposure. For\nexample, a trader who has purchased two futures contracts of June 1992 gold at $335 an ounce with a\nprotective sell-stop a $330 is risking $5 an ounce, leading to an effective exposure o $500 per 100-ounce futures contract or $1,000 for two contracts. If gold continues to rally, and the protective sell-stop is\nmoved up to $335, our trader is assured a breakeven trade, disregarding gaps through the stop price.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133804409201,"sku":"\\V10\\C10\\GUIDETO.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_5fba70c8-169c-43cd-a8ca-8d0c260af391.jpg?v=1739652905"},{"product_id":"v10-c02-usingbo-pdf","title":"V.10:2 (47-51): Using Bollinger Bands by John Bollinger","description":"Using Bollinger Bands\nby John Bollinger\u003cbr\u003e\u003cbr\u003eTrading bands, which are lines plotted in and around the price structure to form an envelope, are the\naction of prices near the edges of the envelope that we are interested in. It's not the newest of ideas, but\nas John Bollinger of Bollinger Capital Management points out, it's one of the most powerful concepts\navailable to the technically based investor, answering not whether absolute buy and sell signals are\nbeing given but whether prices are high or low on a relative basis. Trading bands can forewarn whether\nto buy or sell by using indicators to confirm price action. How do trading bands work? Bollinger, of\nBollinger Bands fame, explains how.\u003cbr\u003e\u003cbr\u003eTrading bands are one of the most powerful concepts available to the technically based investor, but\nthey do not, as is commonly believed, give absolute buy and sell signals based on price touching the\nbands. What they do is answer the perennial question of whether prices are high or low on a relative\nbasis. Armed with this information, an intelligent investor can make buy and sell decisions by using\nindicators to confirm price action.\u003cbr\u003e\u003cbr\u003eBut before we begin, we need a definition of what we are dealing with. Trading bands are lines plotted in\nand around the price structure to form an ''envelope\". It is the action of prices near the edges of the\nenvelope that we are particularly interested in. The earliest reference to trading bands I have come across\nin technical literature is in The Profit Magic of Stock Transaction Timing; author J.M. Hurst's approach\ninvolved the drawing of smoothed envelopes around price to aid in cycle identification. Figure 1 shows\nan example of this technique Note in particular the use of different envelopes for cycles of differing\nlengths.\u003cbr\u003e\u003cbr\u003eThe next major development in the idea of trading bands came in the mid- to late 1970s, as the concept of\nshifting a moving average up and down by a certain number of points or a fixed percentage to obtain an\nenvelope around price gained popularity, an approach that is still employed by many. A good example\nappears in Figure 2, where an envelope has been constructed around the Dow Jones Industrial Average\n(DJIA). The average used is a 21-day simple moving average. The bands are shifted up and down by 4%.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133805425009,"sku":"\\V10\\C02\\Usingbo.PDF","price":5.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_ac706f10-8acb-48e4-91b4-6ea9ab823a68.jpg?v=1739652932"},{"product_id":"v10-c01-sideran-pdf","title":"V.10:1 (38-42): SIDEBAR: THE RANDOM WALK INDEX","description":"THE RANDOM WALK INDEX\u003cbr\u003e\u003cbr\u003eThe channel height ratio to one day figures given show a consistent excess beyond the square root\ncolumn. This excess indicates the presence of trends and hints how to create a trend \"yardstick.\" If no\ntrends were present, the ratios would be expected to all fall exactly on the square roots, and thus an\n\"expected random walk\" over n days would be the square root of n multiplied by the average daily range\n(same as average one-day channel height).","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133809422705,"sku":"\\V10\\C01\\SIDERAN.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_b5652435-91f9-4563-970c-433b1713501a.jpg?v=1739652994"},{"product_id":"v10-c06-themass-pdf","title":"V.10:6 (265-267): The Mass Index by Donald Dorsey","description":"The Mass Index\nby Donald Dorsey\u003cbr\u003e\u003cbr\u003eRange oscillation, not often covered by students of technical analysis, delves into repetitive market\npatterns during which the daily trading range narrows and widens. Examining this pattern, Donald\nDorsey explains, allows the technician to forecast market reversals that other indicators may miss.\nDorsey proposes the use of range oscillators in his mass index.\u003cbr\u003e\u003cbr\u003eRange oscillation is one of the least explored areas of technical analysis. Typically, markets tend to\nrepeat a pattern in which the average daily range (that is, the difference between the high and low)\noscillates from narrow to wide and back again. Oftentimes, this pattern will predict critical market\nreversals, while traditional technical indicators may miss them. The mass index is designed to identify\nimportant changes in daily ranges; in fact, the mass index has proved its ability to measure range\noscillation patterns and depict market turns with precision. (See sidebar, \"The mass index and moving\naverage formulas.\")\u003cbr\u003e\u003cbr\u003eThe most important pattern in range oscillation analysis is the reversal bulge, a gradual but definite\nincrease of the average daily range that indicates the market is near a turning point. Little is known about\nrange oscillation patterns because they can be difficult or even impossible to spot on an ordinary graph,\nbut with the use of a smoothed graph, an ideal reversal bulge can be clearly seen (Figure 1). The overall\naction of the market is unimportant to the pattern. Whether the bulge occurs while the market is tracing\nout a wide trading range or while the market is rocketing forward at increasing momentum, the result is\nthe same.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133809455473,"sku":"\\V10\\C06\\THEMASS.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_6cdeb74d-fd90-47d7-b963-10e31a3c3cdb.jpg?v=1739652996"},{"product_id":"v10-c13-q572-pdf","title":"V.10:13 : Quick-Scans on Technical Traders Guide to Computer Analysis of the Futures Market by Technical Analysis, Inc.","description":"Quick-Scans on Technical Traders Guide to Computer Analysis of the Futures Market by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eTECHNICAL TRADERS GUIDE TO COMPUTER ANALYSIS OF THE FUTURES MARKET\nBusiness One Irwin\n1818 Ridge Road\nHome Road, IL 60430\n(800) 841-8000\nAuthors: Charles Le Beau and David W. Lucas\n234 pages, $65, 1992","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133809488241,"sku":"\\V10\\C13\\Q572.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_e858ff80-3c20-4fc2-8c6c-b2a8e3400704.jpg?v=1739652999"},{"product_id":"v10-c05-calcrel-pdf","title":"V.10:5 (235-237): Calculating Relative Strength Of Stocks by Robert L. Hand Jr.","description":"Calculating Relative Strength Of Stocks\nby Robert L. Hand Jr.\u003cbr\u003e\u003cbr\u003eHeavy on consumer stocks? You may want to rethink your strategy and make some adjustments to your\nportfolio. Robert Hand addresses the shift of leadership early this year from consumer stocks to\ntechnology stocks, and how relative strength can identify emerging trends.\u003cbr\u003e\u003cbr\u003eBear markets come in two forms, the more visible form when all stocks decline below previous lows\nseveral times for a total drop from the highs of more than l5%. The less visible form of bear market is\noften referred to as a sector rotation and is less visible because the changes cannot be easily quoted in\ntelevision news. Sector rotation occurs when there is a change in leadership of an industry group. The\nstocks of the old leaders, consumers, are falling in value while the stocks of the new leaders, technology,\nare rising in value. Sometimes, a function of a bear market is to effect such a change in leadership, but\nrecently this sector rotation has taken effect even though the Standard \u0026amp; Poor's 500 is reaching new highs\n(Figure 1). You'd miss this sector change completely if you didn't use relative strength analysis.\u003cbr\u003e\u003cbr\u003eRLATIVE STRENGTH MOVES\u003cbr\u003e\u003cbr\u003eRelative strength determines how much an individual stock has moved relative to the market as a whole,\nso it detects underperformance. The formula used to measure this (see sidebar, \"Calculating relative\nstrength\") is:\u003cbr\u003e\u003cbr\u003e...","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133810176369,"sku":"\\V10\\C05\\Calcrel.pdf","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_e1c2c7fc-ce24-4409-9bcf-0c412b36c3ff.jpg?v=1739653021"},{"product_id":"v10-c07-backtob-pdf","title":"V.10:7 (309-312): Back to Basics With Quantitative Analysis by Anthony J. Macek","description":"Back to Basics With Quantitative Analysis\nby Anthony J. Macek\u003cbr\u003e\u003cbr\u003eEver notice how we seem to want to do things the hard way? Anthony Macek, publisher of the \"Just the\nFacts\" newsletter, has, and he's proposed a solution to simplify our lives using quantitative analysis.\nHere, Macek uses a technique of combining momentum and trend data to rate the condition of the\nmarket. Take a look.\u003cbr\u003e\u003cbr\u003eDeveloping an infatuation with complex formulas and intricate analyses can cause us to lose sight of\nwhat we are striving to attain. If we are not careful, we can find ourselves afflicted with paralysis by\noveranalysis. Many persuasive arguments exist for examining our world in a less complex fashion. In\ndoing so, the larger picture becomes clearer, and phenomena previously overlooked, such as trend and\nmomentum, become more evident.\u003cbr\u003e\u003cbr\u003eSimply stated, trend is defined as the tendency of a phenomenon to continue in its current path or\ndirection. In essence, it measures the internal dynamics of a particular area under study. Momentum, a\nmeasure of price change over a series of prices, is directly related to the trend in that it relies on the same\ncriteria. Because momentum is an indicator that gauges the strength of the trend, however, it is slower to\nreact to new data and is therefore considered to be a longer-term indicator.\u003cbr\u003e\u003cbr\u003eExamining trend and momentum can be simple or complex. In my experience, after years of number\ncrunching using various computer models, employing countless variations of exponential and other\nweighted moving averages, using measures of relative strength, oscillators, stochastics, and so forth, I\ndiscovered that there was no great statistical advantage to using more complex means of measuring\nvarious phenomena. That is not to say that the use of more complex methods of analysis does not produce\nsuperior results; but the slight statistical advantage gained using more complicated methods would have\nto be evaluated in relation to the time spent in the process. Choosing a less elaborate method may not\nonly be more time effective, but it may also be more than adequate to achieve the ultimate goal: more\ntimely and better-informed investment decisions.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133810209137,"sku":"\\V10\\C07\\BACKTOB.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_a48d7bf5-1c45-411d-8c3b-01927af0bdb0.jpg?v=1739653024"},{"product_id":"v10-c10-sidelog-pdf","title":"V.10:10 (407-413): SIDEBAR: LOGARITHMIC POINT \u0026 FIGURE by Technical Analysis, Inc.","description":"SIDEBAR: LOGARITHMIC POINT \u0026amp; FIGURE by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eThe point and figure chart, which is built on a filtering technique, is an old favorite. In a one-point chart,\nmoves of less than one point are filtered out; in a three-point chart, all moves of less than three points are\nfiltered out. The idea is good, but this type of chart has several drawbacks. First, the chart makes the error\nof using points and not percentages. Points are a poor measure of importance in a stock chart. One point\ncan be very important in a $10 stock but be a very minor move in a $100 stock.\u003cbr\u003e\u003cbr\u003eAnother limitation of the P\u0026amp;F chart is the use of arithmetic scale, which has a built-in distortion. A 5%\nmove at the bottom of the chart may be completely hidden, while at the top of the chart it may look like a\nmajor move. On an arithmetic chart, a trend rising at a uniform l0% per week seems almost flat at the\nbottom but skyrockets at the top of the trendline. A straight trendline on an arithmetic scale actually has a\ndecreasing rate of incline as you travel up the line. Another limitation of the point and figure chart is it\nignores the aspect of time.\u003cbr\u003e\u003cbr\u003eYou can eliminate these limitations with three simple steps. First, set up your filter as a percentage, not in\npoints. Ignore any reversals of less than your specified percent. Second, use a logarithmic scale for prices,\nThird, put time on the horizontal scale of prices (see sidebar Figure 1).","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133810274673,"sku":"\\V10\\C10\\SIDELOG.PDF","price":4.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_1e857018-07bc-4e4f-b174-62e76e9830af.jpg?v=1739653026"},{"product_id":"v10-c04-oncompo-pdf","title":"V.10:4 (178-183): On Composite Sentiment by James P. Martin","description":"On Composite Sentiment\nby James P. Martin\u003cbr\u003e\u003cbr\u003eDespite all the powerful technical tools available, even the savviest technicians are susceptible to\nemotion and on occasion succumb to psychological influences that prevent them from taking appropriate\naction, thus losing out on opportunity. Nevertheless, James Martin writes, how the market reacts is a\nfascinating subject. He continues his quest for more quantifiable measures for sentiment indicators.\u003cbr\u003e\u003cbr\u003eIn my first article in the June 1990 STOCKS \u0026amp; COMMODITIES, I showed a refinement of traditional call\/put\nratios that greatly enhanced their reliability. (See \"Using option ratios,\" elsewhere.) My second in\nFebruary 1991 delved further into the qualitative interpretation of the ratios and how they should be\ncombined with sentiment surveys and the media. Numerous readers called me, hoping to find some\nmagic mechanical signal that would tell them just when the market was about to turn. I explained that in\nmy sentiment studies I have experimented with simple moving averages, exponential moving averages,\nenvelopes, Bollinger Bands, rates of change and other methods I would be embarrassed to admit that I\ntried in public. While my studies have produced some general guidelines, I have yet to discover anything\npurely mechanical when trading off sentiment indicators.\u003cbr\u003e\u003cbr\u003eThe heart of the problem lies in determining when traders have truly put their money where their mouths\nare. Is an opinion survey reading at, say, one standard deviation coupled with a call\/put ratio at plus two\nstandard deviations a significant contrary opinion signal? Or is it merely a sign that a handful of savvy\nprofessionals have made sizable bets in the options market, thereby skewing the options ratios?\nConversely, if sentiment surveys move sharply but option activity remains subdued, is it a sign that traders are already committed and are now merely \"talking their own book\"? Or will options traders be\ndrawn in further before the market turns? This dilemma has led many traders to dismiss sentiment\nindicators as being too subjective to be considered valuable timing tools.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133811257713,"sku":"\\V10\\C04\\ONCOMPO.PDF","price":4.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_fea84ae8-f288-44c0-bdb6-9fa1b0f1bb9f.jpg?v=1739653045"},{"product_id":"v10-c09-forecas-pdf","title":"V.10:9 (394-397): Forecasting Market Turns Using Static And Dynamic Cycles by Brad Swancoat and Ed Kasanjian","description":"Forecasting Market Turns Using Static And Dynamic Cycles by Brad Swancoat and Ed Kasanjian\u003cbr\u003e\u003cbr\u003eWho 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.\u003cbr\u003e\u003cbr\u003eCycles have long been used by technicians to forecast turns in the markets. However, the student of\ncycle analysis can become frustrated by the intermittent nature of regular rhythmic time cycles. The\nunderstanding and use of dynamic cycles will allow the technician to accurately forecast trend changes\nweeks, if not months, in advance.\u003cbr\u003e\u003cbr\u003eMost of us are familiar with static cycles. Static cycles are characterized by a set interval between events\n(such as birthdays, full moons, income tax due dates). Dynamic cycles are just as predictable, but they do\nnot have a fixed interval between events. Dynamic cycles are distinguished by a constant proportion. One\nsuch popular dynamic is the Fibonacci cycle. The numerical series (1, 1, 2, 3, 5, 8, 13, 21, 34, 55 ...)\nobviously is not made up of equal intervals, but the proportion (ratio) between each number is a constant\n1.618. The ratio of 1.618 is known as the \"golden ratio\" and is represented by the Greek letter phi (F).\nFigure 1 illustrates the two types of cycles.\u003cbr\u003e\u003cbr\u003eThe golden ratio can also be expressed as a logarithmic spiral. The relation between each section can be\nstated arithmetically as a ratio, because lines in continued proportion form a geometric progression.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133812076913,"sku":"\\V10\\C09\\FORECAS.PDF","price":4.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_c753a44d-a1bb-409a-8ac1-170008647a30.jpg?v=1739653067"},{"product_id":"v10-c04-cycles-pdf","title":"V.10:4 (155-159): 1991 Cycles by John F. Ehlers","description":"1991 Cycles\nby John F. Ehlers\u003cbr\u003e\u003cbr\u003eIf you've always suspected that contracts have definite personalities, you would have your suspicions\nconfirmed this way. Here's an overview of various cycles that appeared in some futures markets during\n1991, the way only John Ehlers could explain it.\u003cbr\u003e\u003cbr\u003eIn years past I have reported on the cyclic character of various commodity contracts, concluding that\ntradeable cycles were present from 15% to 30% of the time and that some contracts tend to have definite\ncyclic personalities.These conclusions were reached by making spectral estimates on a daily basis and\nthen gathering and displaying the results in a histogram over the full year. The histogram allowed\nobservation of how many times a 12-day cycle occurred, for example. This approach still makes the\nspectral estimate on a daily basis, but the display has been changed to view the continuity of the cycle\ncontent. This display shows the tradeable cycles, multiple simultaneous cycles and even failure of cyclic\nactivity. The display allows you to pick entry points even when the market is in the trend ode by knowing\nthe position of the superimposed cyclic extremes.\u003cbr\u003e\u003cbr\u003eBUT FIRST, A LITTLE THEORY\u003cbr\u003e\u003cbr\u003eImagine a white light shining at a prism. The prism separates the white light, allowing the component\ncolors or wavelengths to be seen. Sir Isaac Newton invented the word \"spectrum\" to describe the\nseparation into components. Any band of wavelengths can have a spectrum, even the cycle lengths that appear in the market. The spectral estimates in Figures 1 through 12 were made using the MESA\nalgorithm. MESA computations are the functional equivalent of applying the price data to a bank of filters,\nwhich spans cycle periods from eight to 50 days, with each filter in the bank only allowing its tuned cycle\nlength to pass. The amplitudes of the filter outputs are sensed, and these amplitudes are compared to form\nthe spectrum display. Figure 1 shows a theoretical 20-day sinewave cycle. The spectrum window in the\nupper-left-hand corner of the bar chart shows that the 20-day cycle is the only cycle present.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133814042993,"sku":"\\V10\\C04\\CYCLES.PDF","price":4.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_b090dd7b-e1ab-47cc-854a-01df21573d24.jpg?v=1739653122"},{"product_id":"v10-c08-filter-pdf","title":"V.10:8 (358-360): Filtering Trades With A Moving Average Slope by Adam White","description":"Filtering Trades With A Moving Average Slope\nby Adam White\u003cbr\u003e\u003cbr\u003eMoving averages are attractive because they simply and reliably execute the \"cut your losses and let\nyour profits run\" strategy. Moving averages also have drawbacks, however, in that they discard much of\nthe information that the market offers. A simple moving average represents simple quantified information\n either prices are above it or below it. Can additional information, in this case the slope of the moving\naverage, be put to use to improve trading performance? Adam White of the Technical Traders Bulletin\nshows you how.\u003cbr\u003e\u003cbr\u003eDespite the theories to the contrary, a simple filter device can eliminate the losing trades of a simple\nmoving average reversal system. Although other, more valuable applications of the moving average slope\nare bound to exist, keeping matters simple will, with any luck, be a more suitable introduction of the\nmain idea.\u003cbr\u003e\u003cbr\u003eSince moving averages tend to be smooth, short subsections approximate straight lines. Measuring the\nslope of a straight line is fairly straightforwardsimply calculating the line's standard deviation does the\ntrick. When the slope of a short line is low, the vertical distance between the two endpoints is small, and\nas the slope increases, the vertical difference between the endpoints increases. As a result, the standard\ndeviation of a short subsection of a moving average is low when its slope is low and in turn high when its\nslope is high.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133814468977,"sku":"\\V10\\C08\\FILTER.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_34d96410-9577-49f6-b576-25e49bf0ad2a.jpg?v=1739653124"},{"product_id":"v10-c08-thegann-pdf","title":"V.10:8 (344-346): The Gann Quarterly Revisited by David C. Reif","description":"The Gann Quarterly Revisited\nby David C. Reif\u003cbr\u003e\u003cbr\u003eThe Gann quarterly chart, a trend-following indicator like other range breakout techniques, was\npreviously described by Jerry Favors in the January STOCKS \u0026amp; COMMODITIES. Most trend-following\nindicators give less than satisfactory results in the absence of a strong trend, and Reif, whose research\non the indicator goes back a number of years, concludes that the Gann quarterly chart is no exception.\nTake a look.\u003cbr\u003e\u003cbr\u003eThe Gann quarterly chart is a long-term indicator that I began following 15 years ago. In doing so, I\nhave put together a collection of charts that provides valuable insight into the profitability of this\nindicator's signals since the sell signal on October 3,1929, when the underlying research originated. To\nrefresh your memory, the Gann quarterly chart will signal a turn up from any low when the Dow Jones\nIndustrial Average (DJIA) trades above the prior quarter's intraday high. (A quarter is traditionally counted\nas being January to March, April to June, July to September and October to December.) The signal\nremains up until the DJIA trades below the low of the prior quarter. With this technique, it is imperative to\nkeep track of the intraday highs and lows made each quarter because it is quite possible for the chart to\nmake more than one turn in any given quarter. For example, the chart turned twice in fourth-quarter 1991,\na situation I will discuss next.\u003cbr\u003e\u003cbr\u003eNow let us examine the price movements of the DJIA (Figure 1) going into fourth-quarter 1991. At the\nend of September 1991, the quarterly chart was up and had been so since January 18, 1991. The\nthird-quarter intraday high was 3068.60, while the third-quarter intraday low was 2836.30. On November 1,1991, the DJIA made a new intraday high for the fourth quarter at 3092.00. ...","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133814534513,"sku":"\\V10\\C08\\THEGANN.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_c063eba6-a70e-4496-9542-ebe54e1a66f6.jpg?v=1739653126"},{"product_id":"v10-c12-multipl-pdf","title":"V.10:12 (501-506): Multiple-Length Stochastics by Stuart Meibuhr","description":"Multiple-Length Stochastics by Stuart Meibuhr\u003cbr\u003e\u003cbr\u003ePlotting different indicators together and combining their analyses is a popular analytical method for timing trades. But how about using one indicator and varying its parameters? Stuart Meibuhr takes stochastics and varies the length of the lookback for trades of different time frames.\u003cbr\u003e\u003cbr\u003eThe popular concept \"if one is good, two are better\" has often been used by technicians in the selection\nof indicators in the belief that combining the signals of different indicators is a more reliable strategy than\nfollowing just one. But this idea has rarely been applied to the use of multiple-length indicators, with the\nexception of perhaps multiple-length moving averages. Few other indicators have been studied for their\nvalue as multiple-length trading tools. In a recent STOCKS \u0026amp; COMMODITIES article, Barbara Star showed\nthat the crossover of the seven-day and the 14-day commodity channel index (CCI, short and intermediate\nterm) could serve as an early warning system forewarning of impending price reversal for live cattle. Star\nsometimes also used the 28-day CCI (long term) and even suggested that the three CCI plots be overlaid,\nwith buying or selling then occurring when all the plots turn at the same time above or below the 100\nlevel.\u003cbr\u003e\u003cbr\u003eIn contrast, Martin Pring used multiple-length rate of change (ROC) indicators on monthly and daily price\ndata for the Standard \u0026amp; Poor's 500 index and other markets. He showed that when three ROC plots peak\nor bottom together, significant moves occur in the S\u0026amp;P 500. With monthly data, he used six-, 12- and 24-month ROC curves that were smoothed by six- and nine-month moving averages. For daily data, he\nused 10-, 15- and 30-day ROC curves.\u003cbr\u003e\u003cbr\u003eWalter Bressert, in his book The Power of Oscillator\/Cycle Combinations, calculated the relative strength\nindex (RSI) indicator for different lengths using the Fibonacci series up to 21 on daily Treasury bond data.\nWhen all the RSI curves peaked above the 70 level at the same time, the T-bond price would also tend to\nmake a significant peak. A similar situation existed for lows when the RSI curves bottomed below the 30\nline.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133814600049,"sku":"\\V10\\C12\\MULTIPL.PDF","price":4.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_230daf2c-03d2-4fe2-8085-eceda7223fe4.jpg?v=1739653130"},{"product_id":"v10-c05-comdata-pdf","title":"V.10:5 (229-234): Computer Data Conversion by Hans Hannula, Ph.D., C.T.A.","description":"Computer Data Conversion\nby Hans Hannula, Ph.D., C.T.A.\u003cbr\u003e\u003cbr\u003eComputers talk to each other all the time except when you get involved. A familiar feeling? Ever have\ndata you'd love to have on your system, except the data aren't compatible with your setup and you end up\nhaving to input everything all by hand? Well, you're not alone. Fear not, for Hans Hannula explains the\nwhys and wherefores and how to convert that data to your needs.\u003cbr\u003e\u003cbr\u003eNot long ago, one of the major problems a technical analyst had was getting data. This usually meant\nhours at the library, scrolling through microfiche of back newspapers. Thanks to the computer age, that\nproblem has disappeared. Stock and commodities data of all sorts are now readily available. The shortage\nproblem has now been replaced by another problem data in abundance that cannot be used by your\nanalysis programs. Back to square one.\u003cbr\u003e\u003cbr\u003eThe advent of the personal computer has given individuals the freedom to choose. But when it comes to\ndata formats, that freedom has resulted in a Tower of Babel. There are dozens of data vendors and\nsoftware suppliers that use different data formats. For all the hype, there is no standard data format. If you\nbuy software from CompuTrac, it uses that company's format and cannot necessarily use your CSI data,\nfor example. So your ability to profit from your own technical analysis will be restricted by your ability to\nconvert your data from one format to another. If you can convert the data effectively, you can take\nadvantage of any newly available technical analysis programs.\u003cbr\u003e\u003cbr\u003eCOMPUTER PRIMER\u003cbr\u003e\u003cbr\u003eLet's start with some computer basics. First, I'll assume that you are using an IBM-PC clone and MS-DOS\n5.0. I'll assume you know the bare minimum about using your computer. You probably know that data\nare somehow stored in files on your hard or floppy disk. And you probably know that you can locate the\nfiles with the MS-DOS directory command, DIR. I also assume that you know that there are two kinds of\nfiles, some that contain data and some that contain programs. The program files are those with a .EXE\nextension. Data files can be named anything. They are read and processed by a particular program, which\nmust assume that the data are formatted in a certain way in the data file. For example, a charting program\nmight assume that the data are in a format of YYMMDD H L C, for year_month_day, high, low, close.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133814993265,"sku":"\\V10\\C05\\COMDATA.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_3561b890-c2ac-4362-a58e-ab8b07adb15e.jpg?v=1739653144"},{"product_id":"v10-c09-sideran-pdf","title":"V.10.9 (389): SIDEBAR: Random Walk Index Spreadsheet by Technical Analysis, Inc.","description":"Random Walk Index Spreadsheet by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003eRandom Walk index spreadsheet.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133815124337,"sku":"\\V10\\C09\\SIDERAN.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_62072581-4f67-4e90-ada5-056550767e52.jpg?v=1739653147"},{"product_id":"v10-c12-smartst-pdf","title":"V.10:12 (507-510): Smart Stops by Tushar S. Chande","description":"Smart Stops by Tushar S. Chande\u003cbr\u003e\u003cbr\u003eSetting stops is a fine art, whether you trade one contract or a thousand. The challenge in setting stops is to participate in long moves without getting shaken out of the trade by market volatility. A variable-index dynamic average (Vidya) may be used to place trailing stops that adapt to market volatility, which combines enough sensitivity to price changes with flexibility to fit your trading needs. Using this combination, in fact, may well provide an extremely profitable stop for the intermediate-term trader.\u003cbr\u003e\u003cbr\u003eOnce a trade has been initiated, most traders will use the risk management technique of placing a stop\norder, which limits losses or captures profits. A stop order becomes a market order when trades occur at a\npredefined price, while a buy stop is placed above the current market price and a sell stop is placed below\nthe current price. A trailing stop order will be adjusted by a trader as prices change, following the market\nup or down, while a fixed-stop order will stay put. A stop order may be good for the day or be an open\norder, which may be good until canceled. A trailing stop is simply a safety valve to protect your profits or\nlimit your losses.\u003cbr\u003e\u003cbr\u003eIn practice, a trailing stop is a leaky safety valve. There is no assurance that your trade or fill will occur at\nor very close to the stop price. For example, the market may make a sharp move past your stop, thus\ntriggering it. The first trade after your stop (which may not be your intended fill) may be well past the\nstop you ordered in rapidly changing markets. Though imperfect, the trailing stop should give your trade\nsome protection in most markets.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133815157105,"sku":"\\V10\\C12\\SMARTST.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_b42eb8d0-0f51-47f4-9ae7-b485856d61d7.jpg?v=1739653149"},{"product_id":"v10-c04-money-pdf","title":"V.10:4 (135-141): Money Management Using Simulation And Chaos by Bob Pelletier","description":"Money Management Using Simulation And\nChaos\nby Bob Pelletier\u003cbr\u003e\u003cbr\u003eHere's how to determine your trading system's minimum capital requirements and discover how market\nexposure should be modified to maximize profits without increasing risk. Bob Pelletier explains.\u003cbr\u003e\u003cbr\u003eAny successful trading system must offer good timing signals, but timing alone does not guarantee\nprofitable results. While good timing is essential, the addition of key money management techniques\nfashioned through mathematical manipulation can mean the difference between moderate success and the\naccumulation of true wealth. To succeed in the markets, a trader must use a combination of good timing,\nknowledge of required capital and optimal investment levels before entering each trade.\u003cbr\u003e\u003cbr\u003eTechniques for timing market entry and exit points are as varied as trader personality and attitude. It\nsuffices to say that trades should be based on a timing system that has demonstrated a positive\nmathematical expectation. Often, trading systems show immense profits on paper that are not reflected\nwhen real dollars are involved. As a result, traders have found themselves asking, \"How can I be losing\nmoney with such a profitable system?\" The discrepancy between hindsight analysis and real-time trading\nresults has plagued technicians for years; the reason for it usually involves favorable actual experience\nthat cannot be sustained or excessive process control in simulated trading. Process control in a trading\nsystem is explained by the number of parameters or rules used in developing the system, and excessive\nprocess control can produce misleading results. For my purposes, a parameter is any quantifiable rule or control mechanism that is consistently applied to timing. I assume that each parameter has been\nexhaustively tested to verify optimal settings. Excessive process control is the introduction of too many\nparameters in a trading system relative to the number of simulated (or actual) trades.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133816566129,"sku":"\\V10\\C04\\MONEY.PDF","price":5.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_b710f211-f70b-4577-bee7-91f03272803e.jpg?v=1739653211"},{"product_id":"v10-c13-q583-pdf","title":"V.10:13 : Quick-Scans on 3d (John Ehlers) by Technical Analysis, Inc.","description":"Quick-Scans on 3d (John Ehlers) by Technical Analysis, Inc.\u003cbr\u003e\u003cbr\u003e3D\nJohn Ehlers\nMESA\nBox 1801\nGoleta, CA 93116\n(805) 969-6478\n(800) 633-6372\nProduct: System-testing program with three-dimensional results display.\nEquipment: IBM-PC compatibles with Dos 3.1 or better, one floppy, 640K RAM, CGA\/EGA\/VGA\ncolor graphics. Graphics printer and math coprocessors are very desirable.\nPrice: $199; demo disk available.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133817090417,"sku":"\\V10\\C13\\Q583.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_5ad39ce5-0535-4d49-944b-5145e0485bdd.jpg?v=1739653228"},{"product_id":"v10-c14-dollarl-pdf","title":"V.10:14 (611-614): DollarLink Version S4.2D by John Sweeney","description":"DollarLink Version S4.2D by John Sweeney\u003cbr\u003e\u003cbr\u003eEver since STOCKS \u0026amp; COMMODITIES signed up with Signal and vowed to review everything we had using Signal data, we've been falling behind. They're adding stuff faster than we can review. Plus, I found\nmyself jaded with the online mode. Having abandoned it personally years ago, I rediscovered some of\nmy antipathy to unending datastreams as I waded through different packages, liking some and disliking\nmany.\u003cbr\u003e\u003cbr\u003eI approached DollarLink with a little more optimism, having heard through the grapevine favorable\ncomments and enjoying talking to the real people who own and run the company. Far from being a\nmegacorporation with hundreds of overpaid programmers stepping on each others' code, DollarLink is a throwback to just a decade ago when one or two guys would hack together something exciting. Looks like it's still possible.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133817155953,"sku":"\\V10\\C14\\P611.pdf","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_cbfca1f7-5aa4-4b20-8591-30049960a685.jpg?v=1739653231"},{"product_id":"v10-c06-stockse-pdf","title":"V.10:6 (239-242): Stock Selection by Arthur A. Merrill, C.M.T.","description":"Stock Selection\nby Arthur A. Merrill, C.M.T.\u003cbr\u003e\u003cbr\u003eHow does a veteran technician like Arthur Merrill select stocks for investment? He explains that it's not\nthe simplest of methods and it does require research and work, but the results, he notes, are worth ithis\ngrowth stock index started at 874 in 1965, at the level that the DJIA was back then; when the DJIA\nreached 3169 recently, Merrill's index hit 15,149!\u003cbr\u003e\u003cbr\u003eI have been asked how I pick stocks for investment. I have a definite preference for growth stocks \nstocks that have been delivering a consistent and rapid growth in earnings per share (EPS). This\npreference limits me to specific parameters. It rules out turnaround situations, which can be profitable. It\nrules out stocks that are bargains because of temporary poor performance. However, adhering to the\npolicy appears to outperform the Dow Jones Industrial Average (DJIA) handsomely over the years. I\nstarted a price index of a group of growing companies back in 1965, when the DJIA was at 874. I started\nmy growth stock index at the same figure. When the DJIA reached 3169 recently, my growth stock index\nhad achieved a level of 15,149!\u003cbr\u003e\u003cbr\u003eI check the earnings record of each potential stock over the past five years. If there has been a decrease in\nany year, the stock is deleted from the list of potentials. I check the earnings quarterly over the last two\nyears; if the EPS in any quarter is lower than in the same quarter of the preceding year, the stock is again\ndeleted from my list. A regression line is then fitted to the earnings per share, and the most rapid are\npulled out for me to study further.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133817647473,"sku":"\\V10\\C06\\STOCKSE.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_4d158b4c-142c-4a9e-9901-32ccc5667139.jpg?v=1739653253"},{"product_id":"v10-c07-damping-pdf","title":"V.10:7 (296-299): The Damping Index by Curtis McKallip Jr.","description":"The Damping Index\nby Curtis McKallip Jr.\u003cbr\u003e\u003cbr\u003eVariety is the spice of life except when you're trying to optimize a trading system. This new indicator\nidentifies those places on the price graph where highs and lows are getting closer and closer together,\nand when used in conjunction with buy rules and sell rules, it can be used to create a computerized\ntrading system. Longtime S\u0026amp;C contributor Curtis McKallip demonstrates.\u003cbr\u003e\u003cbr\u003eWhy is it so difficult to optimize a trading system for different markets? One reason may be that most\ntechnical indicators are not easily related to classic economic theory. Designing a trading system becomes\nnot unlike designing an airplane without understanding aerodynamics. You might come up with a design\nthat flies better than another, but not knowing why it does so makes it difficult to translate that success\ninto other designs.\u003cbr\u003e\u003cbr\u003eYou can relate price patterns to supply and demand curves, even though you may not have all the\nnecessary fundamental data. Those curves are still active; they don't depend on data for their existence.\nRather, they are the stuff that markets are made of because they depict human behavior.\u003cbr\u003e\u003cbr\u003eWhen a news event is reported, particularly an unexpected one, the price reacts and then settles down in a\nzigzag pattern (Figure 1). The price versus quantity chart is known as a cobweb chart because of its\nappearance. Normally, the equilibrium price of a tradeable occurs at the point where the supply and\ndemand curves cross. When a reported news event forces the price up without shifting either curve, that\ncauses the market to supply more of the product than it needs (or less if the price is forced lower). Since\nthe demand is not sufficient to account for all these products, the price drops below equilibrium, which in\nturn causes producers to cut back on production, producing less than necessary. When the supply drops, the price goes back up.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133817680241,"sku":"\\V10\\C07\\DAMPING.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_6e61805a-208b-44c2-b98d-608a7b2c0014.jpg?v=1739653256"},{"product_id":"v10-c01-futures-pdf","title":"V.10:1 (38-42): Futures According To Trend Tendency by E. Michael Poulos","description":"Futures According To Trend Tendency\nby E. Michael Poulos\u003cbr\u003e\u003cbr\u003eNot all markets have the same tendency to trend. E. Michael Poulos uses his February 1991 STOCK \u0026amp;\nCOMMODITIES article, \"Of trends and random walks,\" on the random walk index, which separates trends\nfrom random drifts by allowing for trend, as the basis of this article. He explains that the commodity\nfutures you may for one reason or another assume trend strongly may not in fact. By using similar\nmethods as previously, he produces a table of 28 commodities futures and debunks some futures\nassumptions for instance, there is a school of thought that assumes that crude oil, gasoline and\nheating oil all show similar trending tendencies, whereas in truth crude oil and gasoline are near the top\nof the list, and heating oil, the poor country cousin, comes out only near the middle. Poulos goes into\nwhy.\u003cbr\u003e\u003cbr\u003eWhich futures trend strongest? My February 1991 article, \"Of trends and random walks,\" explained\nhow the random walk index, which separates trends from random drifts by al- lowing for the direct\nmeasurement of trend, could be used toward this end. (See sidebar, \"The random walk index.\") By using\na view of price-time history similar to the one used previously, we can determine how to rank various\nfutures according to their inclination of trend. We attempted to maintain objectivity by not requiring the\narbitrary choice of a predetermined fixed lookback interval (for example, the length of a moving\naverage). Other attempted rankings of this kind are often questionable in result because they do not\nspecially distinguish between random drifts and trends.\u003cbr\u003e\u003cbr\u003eSome results may surprise you. For example, do you believe wheat trends stronger than corn? Or cattle\ntrends stronger than hogs? Wrong. Cattle and wheat are the weakest of the 28 futures covered here. Corn,\non the other hand, ranks near the top, sixth out of 28. Do you figure crude oil, gasoline and heating oil all\nshow the same tendency to trend? Wrongo! Crude oil and gasoline are near the top of the list, while heating oil is well down toward the middle.\u003cbr\u003e\u003cbr\u003eSome explanations are in order. The average channel height for yen (Figure 1) provides some. For the\nfour-day channel length, for example, we start at Day 4 and look back for the highest high and the lowest\nlow from Day 1 through Day 4. We record that high to low difference. We then repeat the above for Day\n2 through Day 5, 3 through 6 and so on. We then average all these heights to get the average channel\nheight figure for four day channels. This process is then repeated for each of the a various channel length\n(that is, lookback intervals). The 2.29 ratio on the four-day row for yen is obtained by dividing the\naverage four-day channel height by the average one-day channel height (141.7 divided by 62.0). For the\nsake of brevity, we show the average channel height only for yen, but the same procedure was used for all\n28 futures (Figure 2).","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133818204529,"sku":"\\V10\\C01\\FUTURES.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_1189ce31-606e-440c-9327-634cba3b3a63.jpg?v=1739653274"},{"product_id":"v10-c02-lowrisk-pdf","title":"V.10:2 (79-80): A Low-Risk, High-Potential Return Option Strategy by Jean-Olivier Fraisse, C.F.A.","description":"A Low-Risk, High-Potential Return Option\nStrategy\nby Jean-Olivier Fraisse, C.F.A.\u003cbr\u003e\u003cbr\u003eCan call options be used as a substitute for purchasing stocks? Covered calls selling a call on stock\nbeing held is one low-risk strategy, but profits can be limited on an up move. Another low-risk\nstrategy, the long call plus cash equivalent, attempts to preserve capital while combining safety and\npotentially high profit. Jean-Olivier Fraisse explains how.\u003cbr\u003e\u003cbr\u003eOptions trading is not for the faint of heart. Beyond technical skills, it requires intuition and just plain\nluck. Some option strategies, however, are no riskier than stock ownership. A well-known low-risk\nstrategy is covered call writing, which consists of selling a call on stock currently held. It works well in\nstable or declining markets, but it limits profits on an up move, which can be costly in the long run. A\nsecond low-risk strategy, the long call plus cash equivalent, strives to preserve capital while combining\nthe safety of a fixed-interest income and the potentially high rewards of stock ownership. This low-risk\nstrategy is most attractive when interest rates are relatively high. It does not work as well when short-term\nrates are low, as was the case at yearend 1991. It is up to the reader to decide whether the strategy\nremains attractive for his or her own circumstances.\u003cbr\u003e\u003cbr\u003eSTRATEGY: BUY CALL, INVEST CASH\u003cbr\u003e\u003cbr\u003eThe market outlook appears bullish and you are of the opinion that stock XYZ is currently undervalued at\na price of $100 per share. In your view, XYZ should trade at a higher price with good prospects for a\nsignificant move in the near future. You are considering the purchase of one hundred shares of XYZ stock\nfor an investment of $10,000 plus commissions (commissions are ignored from here on for the sake of\nsimplicity).","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133818237297,"sku":"\\V10\\C02\\LOWRISK.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_6c7830f9-ce05-4316-872a-17e17f11816e.jpg?v=1739653277"},{"product_id":"v10-c02-sideroc-pdf","title":"V.10:2 (55-60): SIDEBAR: CALCULATING A RATE OF CHANGE OSCILLATOR","description":"CALCULATING A RATE OF CHANGE\nOSCILLATOR\u003cbr\u003e\u003cbr\u003eA rate of change oscillator (Roc) is calculated by dividing the price in the current time period by the price\nn periods ago. For example, a 10-day rate of change would be today's price divided by the price 10days\nago. Roc indicators are quite useful in wide trading range markets but can give misleading signals if a\nstrong trend is in force. In addition, a specific Roc oscillator will reflect only one cycle. Incorrect\ninterpretations will occur if another cycle length is dominant. Combining various Roc oscillators into a\nsingle indicator is one method with which to improve the reliability of this technique.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133818368369,"sku":"\\V10\\C02\\SIDEROC.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_f0199998-9f6d-40d7-b9dc-8900e5261a8b.jpg?v=1739653280"},{"product_id":"v10-c03-thepres-pdf","title":"V.10:3 (119-120): The Presidential Election Cycle by Arthur A. Merrill, C.M.T.","description":"The Presidential Election Cycle\nby Arthur A. Merrill, C.M.T.\u003cbr\u003e\u003cbr\u003eIt's an election year again. What does history say about them ? This famous technician tells you that\nwhat you've heard about Presidential election years may very well be true.\u003cbr\u003e\u003cbr\u003eAn election year is in progress. What are the prospects for the markets? We've been told that\ntraditionally, politicians try to do everything they can to make the years with Presidential elections\nscheduled good ones in the market to put voters in a positive frame of mind. Does history confirm this\ntruism?\u003cbr\u003e\u003cbr\u003eTo check this out, I asked my computer to calculate the percent changes in the Dow Jones Industrial\nAverage (DJIA) every month since 1898. Then I averaged these changes in each month of the four year\nPresidential cycle. We started on the December 1 after a Presidential election and then cumulated the\npercent changes up through the next Presidential election year. Figure 1 shows the results.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133818401137,"sku":"\\V10\\C03\\THEPRES.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_638efa11-ccf9-459b-8d9c-2d5d85f89b6b.jpg?v=1739653282"},{"product_id":"v10-c10-interes-pdf","title":"V.10:10 (414-415): Interest Rates And The U.S. Dollar by John J. Murphy","description":"Interest Rates And The U.S. Dollar by John J. Murphy\u003cbr\u003e\u003cbr\u003eVeteran technician and leading proponent of intermarket analysis John Murphy continues to delve into the interrelationships between markets, this time between interest rates and the U.S. dollar.\u003cbr\u003e\u003cbr\u003ePreviously, I have focused on intermarket linkages between commodities, bonds and stocks. The U.S\ndollar also plays an important role in the intermarket chain. The dollar, for example, is affected by\nmovements in interest rate futures. The dollar, in turn, influences the direction of other markets such as\ngold, the CRB index, bonds and ultimately the stock market. Here, I will examine the close relationship\nbetween the dollar and interest rate futures.\u003cbr\u003e\u003cbr\u003eTHE DOLLAR'S UPS AND DOWNS\u003cbr\u003e\u003cbr\u003eThe dollar is influenced by the direction of interest rates. During a period of economic strength, the\nFederal Reserve pushes interest rates higher, which in turn strengthens the dollar. In recent history, we\nhave seen an extended period of Fed easing to stimulate a weak economy . When the Federal Reserve\nlowers interest rates, the dollar weakens. Shifts in Fed policy can be seen primarily in the direction of\nshort-term rates, such as Treasury bills. Figure 1 shows the inverse relationship between Treasury bill\nfutures and the U.S. Dollar Index from late 1987 to mid-1992.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133819220337,"sku":"\\V10\\C10\\INTERES.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_a0d496b6-fa88-403b-a73d-11f0465f5197.jpg?v=1739653308"},{"product_id":"v10-c10-select-pdf","title":"V.10:10 (427-431): Selecting The Best Futures Price Series For Computer Testing by Jack Schwager","description":"Selecting The Best Futures Price Series For Computer Testing by Jack Schwager\u003cbr\u003e\u003cbr\u003eOne problem that traders studying commodity markets face is the fact that individual futures contracts have price characteristics that are not continuous with other contracts within the same market. Jack Schwager, author and director of futures research at Prudential Securities, has some suggestions on dealing with this problem.\u003cbr\u003e\u003cbr\u003eSystem traders who wish to test their ideas on futures prices face a major obstacle: the limited life span\nof futures contracts. In contrast to the equities market, where a given stock is represented by a single\nprice series spanning the entire test period, in futures, each market is represented by a string of expiring\ncontracts. Proposals for a solution to this problem have been the subject of many articles and much\ndiscussion. In the process, substantial confusion has been generated, as is evident by the use of identical\nterms to describe different types of price series. Even worse, a great deal of misinformation has circulated\non this subject. My goal here is to attempt to set the facts straight.\u003cbr\u003e\u003cbr\u003eFour basic types of price series can be used. Each has advantages and disadvantages.\u003cbr\u003e\u003cbr\u003eACTUAL CONTRACT SERIES\u003cbr\u003e\u003cbr\u003eAt a glance, the best apparent route might be to simply use the actual contract series. However, two major\nproblems arise with this approach. First, if you test a system over a meaningful length of time, each\nmarket simulation requires a large number of individual price series. For example, a 15-year test run for a\ntypical market would require using approximately 60-90 individual contract price series. Moreover, using the individual contract series requires an algorithm for determining what action to take at the rollover\npoints. As an example of a problem that may develop, it is quite possible for a given system to be long in\nthe old contract and short in the new one or vice versa. These problems are hardly insurmountable, but\nthey make the use of individual contract series somewhat unwieldy.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133824528753,"sku":"\\V10\\C10\\SELECT.PDF","price":4.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_bfc558e6-8eb5-40ea-b1c7-dd2bb823a05b.jpg?v=1739653364"},{"product_id":"v10-c10-trading-pdf","title":"V.10:10 (444-446): Trading The Equity Curve by Joe Luisi","description":"Trading The Equity Curve by Joe Luisi\u003cbr\u003e\u003cbr\u003eTechnical analysis is typically applied to prices to determine the trend and changes in the trend. Now consider applying the same concept to analyzing your equity curve to determine those times when your equity may not be trending in the preferred direction.\u003cbr\u003e\u003cbr\u003eMoney management may be the single most important aspect in trading, but few traders spend the\nnecessary time required for successful trading. Generally, it is a rule of thumb that traders should spend\n30% of their time analyzing the markets and 70% of their time split between looking for low-risk,\nhigh-profit trades and money management. With the increasing popularity and availability of the home\ncomputer, trading systems promising huge rewards have burst on the scene, but not necessarily\ndelivering. The novice trader may be led to believe that with the right system, he or she can beat the\nmarket and achieve great monetary success. The truth is quite the opposite.\u003cbr\u003e\u003cbr\u003eSECRETS OF SUCCESS?\u003cbr\u003e\u003cbr\u003eTo be successful, a trader only needs a system that is 51% accurate and sometimes not even that. Most\nsuccessful money managers use systems that are only 40-50% accurate, but they have very strict money\nmanagement standards and their risk to reward ratio is very high. A money management plan is very\nimportant, even if a trader does not use a mechanical system to trade, an accurate record of trades\nexecuted should always be kept and equity plotted on a daily basis. Such records can give the trader a\nvisual idea of how his or her trading is faringtrending up, down or flat.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133824627057,"sku":"\\V10\\C10\\TRADING.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_eccb1760-85e5-4f04-8d57-d75d752e1510.jpg?v=1739653367"},{"product_id":"v10-c14-metastk-pdf","title":"V.10:14 (615-619): MetaStock Professional 3.0 by Jack Karczewski","description":"MetaStock Professional 3.0 by Jack Karczewski\u003cbr\u003e\u003cbr\u003eMetaStock Professional is one of the originals in the industry, something you can depend on. But the\nlast time STOCKS \u0026amp; COMMODITIES reviewed it (July 1988), the reviewer mentioned how complicated the\ninstallation process was . Well, not any more. It's now a breeze! About all a user needs to do now is put\nthe disks in at appropriate intervals when prompted. Especially since I've used versions 2.0 and 2.5, the\ninstallation process for this version was straightforward.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133824725361,"sku":"\\V10\\C14\\P615.pdf","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_9644ed97-217f-4329-9655-33ef2acf1681.jpg?v=1739653370"},{"product_id":"v10-c02-sidecon-pdf","title":"V.10:2 (52-54): SIDEBAR: CONTRACT SPECS","description":"CONTRACT SPECS\u003cbr\u003e\u003cbr\u003eEurodollar time deposits and one-month LIBOR futures.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133825544561,"sku":"\\V10\\C02\\SIDECON.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_54954a0a-2245-417e-8946-ff311b0d8e77.jpg?v=1739653404"},{"product_id":"v10-c06-basicma-pdf","title":"V.10:6 (275-278): The Basics Of Moving Averages by George R. Arrington, Ph.D.","description":"The Basics Of Moving Averages\nby George R. Arrington, Ph.D.\u003cbr\u003e\u003cbr\u003eMoving averages are one of the most common technical tools that technicians, both veteran and novice,\nmay take advantage of. But for those novices, the concept may be somewhat confusing. What is a moving\naverage, anyway? And what about all those variations linear, stepweighted, exponential, even\ntriangular? George Arrington explains the basics of the moving averages. And for those veteran traders\nout there, it never hurts to brush up on those basics.\u003cbr\u003e\u003cbr\u003eThe first maxim a trader learns is to \"buy low and sell high.\" The trick, however, is to identify when\nthe lows and highs occur and to act before others in the market. Trading profits go to those who are both\ncorrect and early. Trading losses go to virtually everyone else.\u003cbr\u003e\u003cbr\u003eA moving average is probably the most common tool used by technicians to identify market trends. A\nmoving average eliminates minor fluctuations in prices and helps identify any underlying trend (Figure\n1). Moving averages may be constructed in a variety of ways. The most frequently used are, the simple,\nlinear and exponential moving averages (see \"Moving average calculations\"), but others such as\ntriangular and step-weighted moving averages are also used by traders.\u003cbr\u003e\u003cbr\u003eThe biggest difficulty in constructing a moving average is building one that is sensitive enough to signal\nwhen a new trend has begun (or when an old trend has ended), yet insensitive enough to ignore\nshort-term random price movements (or \"data noise\"). If the moving average is too sensitive, random\nnoise, can give false signals and generate unnecessary trades (whipsaws) and excessive commissions.\nThere are several basic methods of applying data filters to data to segregate short-term random price\nmovements from the underlying trend.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133825577329,"sku":"\\V10\\C06\\BASICMA.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_621f821d-17a6-4cbe-9c4b-059f1c892760.jpg?v=1739653407"},{"product_id":"v10-c01-exponen-pdf","title":"V.10:1 (15-18): Exponentially Smoothing The Daily Number of Declines","description":"Exponentially Smoothing The Daily Number of\nDeclines\u003cbr\u003e\u003cbr\u003eThis article presents an indicator that is the one-day rate of change of a triple exponential smoothing of\nthe daily number of declines, an oscillator similar to TRIX (covered by Jack Hutson in the early years of\nSTOCKS \u0026amp; COMMODITIES). Raff explains how the decline line, the number of stocks that have dropped in a\ngiven period (most often seen as a day), as the basis of this oscillator, could have warned of the\nimpending stock market tumble in 1987.\nThe method looks good but not good enough. It's deceptive: it works well enough, but in the period\nthat Raff tried the method out on, it would have made only about 50% of a buy-and-hold strategy\n(although it would have shielded the user from violent declines in the period). He concludes that the\nmethod can be improved.\u003cbr\u003e\u003cbr\u003eby Gilbert Raff\u003cbr\u003e\u003cbr\u003eI found myself reading with piqued curiosity when in the May 1991 STOCKS \u0026amp; COMMODITIES John\nMcGinley, the editor of the \"TechnicalTrends\" newsletter, was quoted as saying, \". . . the last 500 points\nof the crash of 1987 were, I think, uncallable. I held a contest in 1988 in which anyone who could\nproduce an indicator that called the crash would get a free year's subscription to 'Technical Trends.'.\"\u003cbr\u003e\u003cbr\u003eAlways one to rise to a challenge, I found such an indicator and am happy to report it here for traders.\n(Please also see my article in the October STOCKS \u0026amp; COMMODITIES for a more long-term tool that\npredicted the 1987 stock market tumble.) Daily advances and declines on the New York Stock Exchange\n(NYSE) clearly provide much data about market internals and have been analyzed in many ways over the\nyears. One particular example is in the form of the advance-decline line (Figure 1). Some analysts use\ntrendline breaks in this line as an indication of changing direction, but in my experience, this is neither objective enough nor consistent enough to help the trader very much.\u003cbr\u003e\u003cbr\u003eFurther, daily advance and decline data tend to be very noisy that is, the data have a great deal of\nrandom fluctuations (Figure 2). How, then, to use the data effectively?","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133826593137,"sku":"\\V10\\C01\\EXPONEN.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_50c0c1df-029d-4361-b170-2325b1156b1b.jpg?v=1739653437"},{"product_id":"v10-c06-identif-pdf","title":"V.10:6 (279-282): Identifying Trading Opportunities by Thom Hartle","description":"Identifying Trading Opportunities\nby Thom Hartle\u003cbr\u003e\u003cbr\u003eOne of the most important aspects of any trade is timing the entry. Perhaps surprisingly, daily and\nweekly analysis can be instrumental in planning an entry for long-term trades. Here's an overview on\nhow to use daily and weekly technical analysis to identify trading opportunities that may only come up\nonce a year. S\u0026amp;C Editor Thom Hartle outlines a complete approach to trading, incorporating basic\ncharting and trendline plotting, the stochastics oscillator and momentum studies.\u003cbr\u003e\u003cbr\u003eOver the years, my trading style has evolved out of necessity. What could possibly cause anyone to\nalter his or her trading approach? Losses, of course! It's easy to avoid losses don't trade. But that\napproach is too extreme for me, and it doesn't meet my other goals. Thus, the challenge for me is to\nidentify situations that offer the best opportunity for making money with the least amount of risk.\u003cbr\u003e\u003cbr\u003eMy early reading of the literature of technical analysis revealed that the trading concept stressed most\noften was trend following. The literature was and is full of charts showing beautiful trends with\nsimple moving averages plotted over the prices. It looked easy until I faced the problem of getting on\nboard the trend. First, there was the possibility that the trend had been in force for some time and a\nconsolidation or reversal of the trend could occur. Second, there was another possibility. The market\ncould stay in a trading range for some time. If that happened, each position taken with each false trend\nindication would result in an equity drawdown.\u003cbr\u003e\u003cbr\u003eMoreover, simply acting on trading signals didn't work for me; I needed additional filters to reduce the\nnumber of false trades. The technique that helped me the most had very little to do with trend following\n a return to basic chart analysis. I decided to outline my methodology for approaching a trade using\nbasic chart analysis and additional trading techniques applied to the bond market.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133826625905,"sku":"\\V10\\C06\\IDENTIF.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_6000f59f-a8b8-4e08-b72a-1fb9fb732f6c.jpg?v=1739653440"},{"product_id":"v10-c08-underst-pdf","title":"V.10:8 (354-357): Understanding Exponential Moving Averages by Raymond Rothschild","description":"Understanding Exponential Moving Averages\nby Raymond Rothschild\u003cbr\u003e\u003cbr\u003eDo you ever find yourself thinking that maybe you ought to try using the exponential moving average but\nfind yourself intimidated into paralysis? Don't be. Let Raymond Rothschild be your guide into a\nnot-so-alarming technique.\u003cbr\u003e\u003cbr\u003eMoving averages in general have been extensively analyzed by many investigatorsall except the\nexponential moving average. The objective in technical analysis is to use every tool available, and that\nincludes exponential moving averages. But first to review the formula for the simple moving average: in\nan n-day simple moving average, the prices of the previous n days are added and the sum is divided by n.\nFor example, if n were equal to 10, we would add the prices of the prior 10 days and then divide this\nvalue by 10 to obtain the moving average for the current day. As we continue along to successive days, it\nis not really necessary to always add n days of data. All we really have to do is drop off the first day's\nprice, add the current day's price to our sum and then divide by n.\u003cbr\u003e\u003cbr\u003eThat is the simple moving average. Other forms exist, one of which is the exponentially smoothed\nmoving average. This particular moving average has a recursive form that makes it easier to use than the\nsimple moving average. The recursive form refers to the fact that the exponential average for the current\nday is determined by the value of the previous day, defined thus:\u003cbr\u003e\u003cbr\u003e...","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133826658673,"sku":"\\V10\\C08\\UNDERST.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_219c7a0c-2c43-4630-966b-858991833f09.jpg?v=1739653443"}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/collections\/volume-10-1992-18.gif?v=1739676509","url":"https:\/\/shop.traders.com\/collections\/articles-volume-10.oembed","provider":"Stocks \u0026 Commodities","version":"1.0","type":"link"}