{"title":"Volume 7 (1989)","description":"\u003cp\u003eBrowse Volume 7 articles by issue:\u003c\/p\u003e\u003cdiv style=\"display:flex;flex-wrap:wrap;gap:12px;\"\u003e\n\u003ca href=\"\/collections\/articles-volume-7\/issue-01?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 1 January\u003c\/a\u003e\u003ca href=\"\/collections\/articles-volume-7\/issue-02?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 2 February\u003c\/a\u003e\u003ca href=\"\/collections\/articles-volume-7\/issue-03?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 3 March\u003c\/a\u003e\u003ca href=\"\/collections\/articles-volume-7\/issue-04?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 4 April\u003c\/a\u003e\u003ca href=\"\/collections\/articles-volume-7\/issue-05?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 5 May\u003c\/a\u003e\u003ca href=\"\/collections\/articles-volume-7\/issue-06?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 6 June\u003c\/a\u003e\u003ca href=\"\/collections\/articles-volume-7\/issue-07?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 7 July\u003c\/a\u003e\u003ca href=\"\/collections\/articles-volume-7\/issue-08?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 8 August\u003c\/a\u003e\u003ca href=\"\/collections\/articles-volume-7\/issue-09?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 9 September\u003c\/a\u003e\u003ca href=\"\/collections\/articles-volume-7\/issue-10?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 10 October\u003c\/a\u003e\u003ca href=\"\/collections\/articles-volume-7\/issue-11?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 11 November\u003c\/a\u003e\u003ca href=\"\/collections\/articles-volume-7\/issue-12?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 12 December\u003c\/a\u003e\u003ca href=\"\/collections\/articles-volume-7\/issue-13?sort_by=title-ascending#ProductGridContainer\" style=\"margin-right:16px;\"\u003eChapter 13 Quick Scans\u003c\/a\u003e\n\u003c\/div\u003e\n\n\n\n\n\n\n","products":[{"product_id":"v07-c01-breadth-pdf","title":"V.7:1 (9-12): Technical Index measures market breadth by William Mason","description":"Technical Index measures market breadth\nby William Mason\u003cbr\u003e\u003cbr\u003eThere are numerous driving forces in the stock market such as inflation, interest rates, earnings, trade\ndeficit, fear and greed. The final output from the driving forces behind the stock market are the various\nindices such as the NYSE Composite. Dow Jones Industrial Average, S\u0026amp;P 500.\u003cbr\u003e\u003cbr\u003eThese are fine indices for measuring the market results, but quite removed from the input side of the\nequation. Some technicians try to build models around these variables with varying degrees of success.\nWhat I wanted, instead, was the intermediate or transition variables between the input driving forces and\nthe output monetary indices (Figure 1).\u003cbr\u003e\u003cbr\u003eThe historical standard that fit my definition was the advance minus decline line. Some technicians keep\ntrack of advancing volume-declining volume and new highs minus new lows, but nowhere could I find an\nintegration of these variables (which all seem very important to market performance) into an overall\nmarket breadth index.\u003cbr\u003e\u003cbr\u003eTo fill the void, I created the Technical Index about a year and a half ago and have been using it as a\nmaster market breadth index. Like any index you can perform all the standard technical analysis\ntechniques on it (stochastics, momentum, oscillators, cash flow, Relative Strength Index).","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133786943857,"sku":"\\V07\\C01\\BREADTH.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_b3f79201-c2ff-4644-a821-81ab75876df3.jpg?v=1739652469"},{"product_id":"v07-c01-complet-pdf","title":"V.7:1 (30-34): Completing the DMI rules by Jim Summers","description":"Completing the DMI rules\nby Jim Summers\u003cbr\u003e\u003cbr\u003eFinally, after these many months, the Lotus Command Language code to reproduce Wilder's\nDirectional Movement Index system (DMI) reaches an end. In using Wilder's DMI to teach readers of\nStocks \u0026amp; Commodities how to program Lotus, we've come a long way. Starting with the simplest of\nmacros, we're now into programming at a fairly high level and have used a number of techniques,\nincluding debugging strategies. Recent comments by Dr. A.O.T. Fayiga (S\u0026amp;C, November 1988) show\nthat different programming methods can reach the same goals, something affirmed by everyone who uses\nLotus extensively. With a few enhancements that we'll discuss in this column, you now have a trading\nsystem that can make money and operates easily. Let's briefly review the DMI rules provided by Wilder\nin his book, New Concepts in Technical Trading Systems:\u003cbr\u003e\u003cbr\u003eEntry Rules:\u003cbr\u003e\u003cbr\u003e...\u003cbr\u003e\u003cbr\u003eExit Rules:\u003cbr\u003e\u003cbr\u003e...\u003cbr\u003e\u003cbr\u003eProgramming to follow these rules for the September 1986 S\u0026amp;P 500 contract and these rules only \nproduces the output you see in Figure 1. (The complete set of contract prices were printed in the\nDecember 1988 issue and, to additionally save space, I hid several columns in Figure 1.)","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133787009393,"sku":"\\V07\\C01\\COMPLET.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_72d6dd94-677e-4935-bc71-3b50f07df08b.jpg?v=1739652472"},{"product_id":"v07-c01-intopit-pdf","title":"V.7:1 (13-15): Into the Pit by Joseph Wilson","description":"Into the Pit\nby Joseph Wilson\u003cbr\u003e\u003cbr\u003eIn December 1985, I was approved for membership to the Chicago Mercantile Exchange. I obtained a\nmembership to the Index and Options Market, which gave me the right to trade the S\u0026amp;P 500 futures. Let\nme digress for a moment. As you may already be aware, the S\u0026amp;P 500 futures have taken the brunt of the\nheat from the regulators who are looking for a scapegoat for the October 1987 crash in the stock market. I\ndisagree with their criticisms, but that is another story.\u003cbr\u003e\u003cbr\u003eThe \"big guys\" trade the futures market in two ways: first, as a hedge for the stock portfolios and second,\nin arbitrage situations, taking advantage of short-term disparities between the cash and futures prices. The\nplayers in this pit are huge, sometimes trading 2,000 to 3,000 contracts at a time. Yes, Virginia, this pit is\nthe big time where millionaires and paupers are created daily. The difference between the first and second\ncan be based on decisions made in a few seconds.\u003cbr\u003e\u003cbr\u003eAnd now to continue: Upon receiving approval for membership I had to pick out a broker's badge to wear\non my jacket while on the floor. The badge is about 3 inches by 4 inches and contains no more than three\nletters. This is your ID for other traders. When you complete a trade it is processed with your floor badge\nID on it. I picked DOW (for Dow Jones Industrials) and, because no other member had it, I got it.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133787042161,"sku":"\\V07\\C01\\INTOPIT.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_30f140e1-ee7d-4867-81de-51c5776d8238.jpg?v=1739652474"},{"product_id":"v07-c01-logarit-pdf","title":"V.7:1 (16-20): Logarithmic point and figure charts by Luis Ballesca Loyo","description":"Logarithmic point and figure charts\nby Luis Ballesca Loyo\u003cbr\u003e\u003cbr\u003eDuring the early development of technical analysis, almost all types of graphing methods used the\narithmetic values of prices for charting. Not so long ago, it became a common practice to construct charts\nor graphs using a logarithmic scale. Experience has shown me that this proportional scale has many\nadvantages over the arithmetic method when it comes to analyzing price formations and market\ntendencies.\u003cbr\u003e\u003cbr\u003eActually, using point and figure charting clearly shows the difference between graphing on the arithmetic\nscale and graphing on logarithmic scale. When using an arithmetic scale as in Figure 1, every X and O\ncorresponds to an equal, nominal amount of change in price. That is, every X and O represents an equal\nchange in dollars.\u003cbr\u003e\u003cbr\u003eWhen using a logarithmic scale, we chart the proportional, not nominal, change in price. However, by\ncharting proportional variations in price change, we face the problem of having to change the scale often\nto maintain proportionality. This is a tedious and nearly impossible task, though some interesting\nvariable-scale strategies have been developed.\u003cbr\u003e\u003cbr\u003eTo overcome this proportionality problem, I chart the values using a proportionality criteria for the box\nsize and reversal patterns, as shown in Figure 2. This way, every X and O corresponds to an equal and\nproportional change in price. That is, every box represents an equal percentage change.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133787107697,"sku":"\\V07\\C01\\LOGARIT.PDF","price":4.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_176d3035-85b1-4be0-936b-62d52ee825a6.jpg?v=1739652477"},{"product_id":"v07-c01-options-pdf","title":"V.7:1 (28-29): Options: Let price come to you by Jerry Kopf","description":"Options: Let price come to you\nby Jerry Kopf\u003cbr\u003e\u003cbr\u003eThe average retail trader's first option transaction is often profitablebut rarely do rookie option\ntraders know the actual reason behind their profits. Call it beginner's luck. If they win at first, they think\nthey are walking on water. They annualize one week's return and start planning an early semi-retirement.\u003cbr\u003e\u003cbr\u003eOnce luck ends, a newcomer's limited experience along with the swiftness of price movement causes a\nrash of painful losses. The undeniable fact is there is no quick method to learn to trade well and\nconsistently be on the plus side. Call it tuition, if you will.\u003cbr\u003e\u003cbr\u003eOne thing to learn is: don't chase price. From Figure 1 you'll see that often it doesn't pay to chase the\nprice of an option. Traders who habitually \"take shots\" and pay up usually overpay for a call or a put\nrelative to the option's fair value. Chasing forces them to surrender the edge, so the life cycle for 85% of\noptions chasers is no longer than 18 months.\u003cbr\u003e\u003cbr\u003eFrom Figure 1, recognize that each trading day the intraday price most often ranges one to two points for\nmost at-the-money front-month options. The price of your fill often makes the difference between a profit\nand a loss.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133787140465,"sku":"\\V07\\C01\\OPTIONS.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_d61431da-5a80-4c31-9c00-b379a9ced8eb.jpg?v=1739652479"},{"product_id":"v07-c01-stockhe-pdf","title":"V.7:1 (21-25): Stock hedge portfolios: A strategy for all seasons by Larry Christy","description":"Stock hedge portfolios: A strategy for all seasons\nby Larry Christy\u003cbr\u003e\u003cbr\u003eIf you're looking for a conservative way to make substantial profits in any kind of market environment,\nyou may want to consider common stock hedge portfolios. By balancing an equal amount of your capital\nin long and short stock positions, you can reduce market risk and take advantage of the ability of some\nstocks to outperform other stocks.\u003cbr\u003e\u003cbr\u003eFor an example of the theory behind this strategy, just check The Wall Street Journal's listing of\nyesterday's biggest percentage gainers and losers among common stocks. On any given day, there are\nlikely to be some stocks that have gone up considerably in price and some stocks that have dropped\ndrastically in price. If you had previously bought the stock with the best gain and simultaneously shorted\nan equal dollar amount of the worst loser, your profit would have been the sum of the two percentage\nchanges. On most days that would be in the 20%-to-40% profit rangefar more than most investors\nusually make in an entire year.\u003cbr\u003e\u003cbr\u003eI don't know of any reliable technique for picking the best and worst stocks on a daily basis, but I can\nshow you how you can profit from the same basic strategy for conservative longer term investing. To get\nstarted you will need:\u003cbr\u003e\u003cbr\u003e A margin account with a stock brokerage firm. Although you do not need to incur any margin debt\nor interest expense for a hedge portfolio, brokers will require a margin account for handling your\nshort sales.\u003cbr\u003e\u003cbr\u003e Enough capital to make it possible to diversify your positions among 10 to 25 common stocks on\nboth the long and short side.\u003cbr\u003e\u003cbr\u003e A reliable stock selection method that identified both potential winners and losers.\u003cbr\u003e\u003cbr\u003e A few minutes a week to review your portfolio and possibly make occasional adjustments.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133787173233,"sku":"\\V07\\C01\\STOCKHE.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_ceac60d7-8e43-4eb3-ab35-094f66aed936.jpg?v=1739652481"},{"product_id":"v07-c01-wswinde-pdf","title":"V.7:1 (26-27): The Wall Street Week index by Arthur A. Merrill","description":"The Wall Street Week index\nby Arthur A. Merrill\u003cbr\u003e\u003cbr\u003eEvery six months I have been checking the accuracy of more than 40 indicators over a span of several\nyears. On the last test, the indicator that came out on top was the Wall Street Week Technical Market\nIndicator (WSW Index) reported on the Wall Street Week public television program.\u003cbr\u003e\u003cbr\u003eIn the test, the scores are in the form of a batting average. Each indicator is asked each week whether it is\nbullish or bearish, and the number of times this opinion is right or wrong is determined by the direction\nof the market in the next 13 weeks, six months or a year.\u003cbr\u003e\u003cbr\u003eIn the last 10-year test period, the WSW Index was 70.6% accurate in forecasting 13 weeks ahead, 78.5%\naccurate over 26 weeks, and 80.7% accurate forecasting one year in the future (Figure 1 ). These scores\nwere checked for significance with the chi square test and found to be highly significant. They wouldn't\nhave been obtained by chance in many thousands of repetitions of over the 10-year period.\u003cbr\u003e\u003cbr\u003eThe WSW Index is a consensus index of the diffusion type, using 10 market indicators. The index\nnumber is calculated by subtracting the number of bearish indicators from the number that are bullish.\nFor example, if in a certain week, five indicators were bullish, four neutral and one bearish, the net score\nfor the WSW index would be (5-1)=4\u003cbr\u003e\u003cbr\u003eThe WSW index was created and has been improved through the years by Robert Nurock, who has been\na regular panelist on the television program since its inception in 1970. He includes a discussion of the\nindex and its prospects in his newsletter The Astute Investor. For interpretation, he recommends this scale:\u003cbr\u003e\u003cbr\u003e...","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133787206001,"sku":"\\V07\\C01\\WSWINDE.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_264da1fb-9482-46e9-8641-6ea8bcedeb46.jpg?v=1739652484"},{"product_id":"v07-c02-compari-pdf","title":"V.7:2 (39-39): Comparing wave predictions by Jack K. Hutson","description":"Comparing wave predictions\nby Jack K. Hutson\u003cbr\u003e\u003cbr\u003eThe challenge in Elliott Wave analysis is identifying and counting the correct waves. ...","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133787238769,"sku":"\\V07\\C02\\COMPARI.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_4526c3fa-d479-4597-8287-5db0c93eaad2.jpg?v=1739652486"},{"product_id":"v07-c02-creatin-pdf","title":"V.7:2 (40-42): Creating prices for system testing by D. Howard Phillips","description":"Creating prices for system testing\nby D. Howard Phillips\u003cbr\u003e\u003cbr\u003eTechnical trading systems are evaluated using historical, real-time or computer-generated data. All\nthree data sources are useful, but computer-generated data can be the most powerful. In particular, using\ncomputer-generated price data that has a known trend percentage allows you to determine the\nperformance of a trading system statistically. These \"trend price streams\" are helpful in evaluating any\ntechnical trading system, but are essential to evaluating, adaptive trading systems that learn from\nexperience and change their trading rules according to the characteristics of the price stream. If you want\nto evaluate an adaptive system, you must know how well it adapts to a known trend\u003cbr\u003e\u003cbr\u003eRandom number generators\u003cbr\u003e\u003cbr\u003eI created the price stream in Figure 1 using a random number generator to assign either a plus or minus (+\nor -) to each number in the DELTA column, which shows the change in price.\u003cbr\u003e\u003cbr\u003eNow, a simple definition of a trend is \"something repeating.\" The interesting thing about random number\ngenerators is that they do generate trends. For each new price in the DELTA column, the probability of a\n+0.25 DELTA is equal to the probability of a -0.25 DELTA. Further, it is probable to have two, three or\nfour successive price increases (or successive price decreases). This leads to trend generation by all\nrandom number generators.\u003cbr\u003e\u003cbr\u003eIn Figure 1, the AVDELTA column gives the average of the five preceding DELTA values. The sign of\nthis average is the trend indicator, showing that the trend is either positive or negative. You can use the\nAVDELTA sign to create price streams having 10% trend, 20% trend or any other trend percentage, as\nillustrated in the equations in Figure 2. These price streams will never repeat and, therefore, are ideal for\nevaluating technical trading systems. They also do not contain sine waves or other periodic waveforms\nwhich can lead to unrealistic test results","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133787468145,"sku":"\\V07\\C02\\CREATIN.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_51a3a0d9-2925-43dd-8f3e-244ac86897ad.jpg?v=1739652488"},{"product_id":"v07-c02-elliott-pdf","title":"V.7:2 (43-46): An Elliott Wave perspective: DJIA 400 or 6000? by Elliot Brenner","description":"An Elliott Wave perspective: DJIA 400 or 6000?\nby Elliot Brenner\u003cbr\u003e\u003cbr\u003eTo put the stock market's present wave structure into perspective, I believe it is helpful to examine an\nimportant rule of Elliott Wave analysisthe Rule of Equality. This rule has been completely \"bent out of\nshape\" by analysts who have used it to confirm that a long-term bull market advance has ended and a\nlong-term bear market correction has begun.\u003cbr\u003e\u003cbr\u003eWhat is the Rule of Equality? It states that two of the impulse waves (waves in the direction of the main\ntrend) in any five-wave advance or decline will tend toward equality in terms of price and time. (In some\ncases, a Fibonacci relationship will exist.)\u003cbr\u003e\u003cbr\u003eThe largest wave observed by Elliott the Grand Supercycle entered its fifth and final wave pattern in\n1932 (see Stocks \u0026amp; Commodities, April 1988). This wave called the Supercycle 2 has within it the\nrequisite five Cycle waves. Elliott Wave analysts are pretty much in agreement on the labeling of the\nSupercycle's first three waves (Figure 1). Wave 1 lasted from 1932 to 1937 (5 years) and saw the market\nadvance 372%. Wave 2, a corrective wave (a zigzag), lasted from 1937 to 1942 and saw the market give\nback 52%. Wave 3 lasted 24 years (1942-1966) and advanced an incredible 971%. It is Waves 4 and 5\nwhere many Elliott Wave analysts part company.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133787500913,"sku":"\\V07\\C02\\ELLIOTT.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_419ac026-8b7d-4fd9-9484-b7bbd8dfda89.jpg?v=1739652491"},{"product_id":"v07-c02-individ-pdf","title":"V.7:2 (56-61): Individual stocks and MACD by Thomas Aspray","description":"Individual stocks and MACD\nby Thomas Aspray\u003cbr\u003e\u003cbr\u003eThe Moving Average Convergence-Divergence method specifically MACD-Histogram (MACD-H)\nand MACD-Momentum (MACD-Mo) can be used to identify turning points in the commodity\nmarkets (See Stocks \u0026amp; Commodities, August and September 1988). MACD also is useful and valid for\nthe cash indices as well as individual stocks. In this article, I will show you how these indicators work on\nindividual stocks.\u003cbr\u003e\u003cbr\u003eCalculating MACD is a straightforward matter (Figure 1). The real work is in choosing the moving\naverage period length. I calculate MACD-H using 10-, 20- and 10-periods (day or week). The MACD-H\nis the histogram version of the oscillator implemented in the CompuTrac system. My new MACD-Mo is\na 3-period smoothed (simple moving average) of a 10-period momentum of the MACD-H.\u003cbr\u003e\u003cbr\u003eMACD formula\u003cbr\u003e\u003cbr\u003eGerald Appel, who developed MACD, originally used periods (days) of 12 and 26 days to calculate\nMACD and a 9-day average to get a \"signal\" line. These periods may be translated into approximate\nexponential moving average (EMA) alpha's by a = 2\/(n + 1), where \"n\" is the number of days. Using\nthese values to be consistent with Appel's work,12 days = 0.15, 26 days = 0.074, and 9 days = 0.2. Thus,  ...\u003cbr\u003e\u003cbr\u003eFigure 2 - NYSE Composite\u003cbr\u003e\u003cbr\u003eIn this weekly chart, the first point to concentrate on is May 1987, where both MACD-H and the\nMACD-Mo were negative. The MACD-Mo flattened out in late May and started rising by late June. The\nMACD-H bottomed in the latter part of May and then began to rise. With both lines improving in\nmid-June, the retest of the lows provided a buying opportunity.\u003cbr\u003e\u003cbr\u003eThe MACD-H moved into the buy mode in the first week of July, point 1, and was confirmed one week\nlater when MACD-Mo crossed above the zero line, point 2.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133787533681,"sku":"\\V07\\C02\\INDIVID.PDF","price":5.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_5340ffff-dd52-477f-ab5b-e3f089dfb2bd.jpg?v=1739652493"},{"product_id":"v07-c02-nsquare-pdf","title":"V.7.2 (62-66): Product Review: N-Squared Analytic Software by John Sweeney","description":"N-Squared\nAnalytic Software\u003cbr\u003e\u003cbr\u003eN-Squared's software doesn't get the respect it deserves. Its formula generator handles any type of\nnumerical data, not just high-low-close-volume-open interest. It also comes with capabilities for getting\nall that fundamental and market data, something, only one other retail package that I know of even attemptsand they don't let you manipulate it once you've got it. Coupled with a smooth AutoRUN\nfeature, deft help in building the indicators and solid graphics, N-Squared is a strong contender for an\nanalyst ready to put his or her own ideas into practice.\u003cbr\u003e\u003cbr\u003eHowever, to save your time, read no further if you don't want to \"roll your own\" indicators. This\npackage bridges the big gap from intermediate-level packages where formula generators are not included\n(because the customers don't want or can't build them) and advanced packages where formula generation\nand systems testing are key features.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133787566449,"sku":"\\V07\\C02\\NSQUARE.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_f0d84a23-9c40-4a78-83a1-413c6fec79b7.jpg?v=1739652496"},{"product_id":"v07-c02-orb-pdf","title":"V.7:2 (47-49): Opening range breakout Part 4 by Toby Crabel","description":"Opening range breakout\nPart 4\nby Toby Crabel\u003cbr\u003e\u003cbr\u003eOpening range breakout is a trade in which entry is taken at a predetermined amount above or below\nthe opening range. I've set this predetermined amount (the \"stretch\") through observation. (See Stocks \u0026amp;\nCommodities, September 1988.) To trade the opening range breakout, a buy stop is placed above the high\nof the opening range an amount equal to the stretch and a sell stop is placed the same amount below the\nlow of the opening range. The first stop that is traded is your position.\u003cbr\u003e\u003cbr\u003eAn inside day is one in which the daily range is completely within the previous day's range. More\nspecifically, an inside day's high is less than the previous day's high and the inside day's low is greater\nthan the previous day's low.\u003cbr\u003e\u003cbr\u003eFigures 1 and 2 demonstrate the inside day and the next day's opening range breakout technique. My\nhypothesis is that inside days precede trend day activity and, consequently, successful opening range\nbreakouts. Figure 3 tabulates the results of this hypothesis in the Treasury bond, S\u0026amp;P 500, soybean and\ncattle markets.\u003cbr\u003e\u003cbr\u003eThere were four tests per market with the only difference being the points of entry above or below the\nopen. For example, bond market tests were conducted on an entry 16 ticks above the open (open plus 16\nticks), 8 ticks above the open, 8 ticks below the open (open minus 8 ticks) and 16 ticks below the open.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133787599217,"sku":"\\V07\\C02\\ORB.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_0c41fe33-a327-4618-8b02-d6d579c2b306.jpg?v=1739652498"},{"product_id":"v07-c02-scalp-pdf","title":"V.7.2 (50-52): Trading \u0026 scalping techniques by John Hill","description":"Trading \u0026amp; scalping techniques\nby John Hill\u003cbr\u003e\u003cbr\u003eScalping techniques for off-floor traders abound. Here I'll present some that I've found worthy over\nmany years of trading. I do not claim many original thoughts in this. I gratefully appreciate the work of\nmany pioneers in technical analysis too numerous to mention. What I have done is contribute some\ncreativity and reduce theoretical aspects to particle application. To understand these techniques, one of\nthe first terms you'll need to know is pivot point. A pivot point is the highest\/lowest point reached in a\nswing prior to the penetration of the low\/high of the top day (Figure 1). A swing is the movement from\none pivot point to the next.\u003cbr\u003e\u003cbr\u003eParallel movement\u003cbr\u003e\u003cbr\u003eThe first scalping technique is the parallel movement method (Figure 2). This method can be used during\na sustained advance or decline to exploit normal retracements . The basic idea is that movement CD\nshould equal AB. The most profitable trades are ones where the position is taken in the first 25% of the\nmove from point C.\u003cbr\u003e\u003cbr\u003eHere are the rules:\u003cbr\u003e\u003cbr\u003e...\u003cbr\u003e\u003cbr\u003eUse this when trading with the trend and don't attempt to catch the small counter moves. You want the\nfull swings. This technique may require several entry attempts, particularly if the correction is complex.\nAlso, be aware that a commodity often will fluctuate 25% of a projected movement during a day and still\nnot change directions.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133787828593,"sku":"\\V07\\C02\\SCALP.PDF","price":4.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_304cc53f-cf6a-4448-ba2c-19c78c16c5a7.jpg?v=1739652501"},{"product_id":"v07-c02-shortin-pdf","title":"V.7:2 (37-38): Short Interest by Arthur A. Merrill","description":"Short Interest\nby Arthur A. Merrill\u003cbr\u003e\u003cbr\u003eShort interest the sale of borrowed stock is one of the most useful tools of the technician. Short\nsales are made by pessimists, who expect prices to fall. If prices fall, the short seller can buy shares at a\nlower price and return the borrowed stock.\u003cbr\u003e\u003cbr\u003eBecause short sales are made by pessimists, it would seem that a high short interest, displaying a large\nnumber of bearish investors, would be a bearish indicator. No way! A high short interest means that past\nsales have been made, future purchases must be made. High short interest, therefore, represents high\npotential demand for stocks and has been found to be a bullish sign.\u003cbr\u003e\u003cbr\u003eHowever, when you consider the ratio of short sales made by professionals to the short sales made by the\n\"public,\" a high figure is bearish. When the professionals are pessimistic and the public is optimistic,\nbeware!","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133787861361,"sku":"\\V07\\C02\\SHORTIN.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_c5ae889f-6e32-41d6-9e92-910194fc0679.jpg?v=1739652503"},{"product_id":"v07-c02-winning-pdf","title":"V.7:2 (53-55): Winning parameters for customized MACD by John A. Narvarte","description":"Winning parameters for customized MACD\nby John A. Narvarte\u003cbr\u003e\u003cbr\u003eA common frustration with strategy testing is that it is not easy to find a profitable trading system,\nparticularly if you include brokerage fees. Even with a strategy that has worked for you in practice, the\ntest results are often not quite what you expect.\u003cbr\u003e\u003cbr\u003eOne obvious reason for this is that computerized strategy testing is totally mechanical. Signals are issued\nand trades are executed automatically, according to a predetermined scheme without the benefit of past\nexperience and without veto power.\u003cbr\u003e\u003cbr\u003eAnother possibility is that the strategy in question might be too short-term, resulting in an inordinate\nnumber of trades. Or else, the stock being tested might not respond to your strategy.\u003cbr\u003e\u003cbr\u003eThe purpose of this article is to present a long-term strategy that has tested positive for a number of\ncommon stocks over a recent time period. Its underlying indicator is a smoothed moving average\ndifference oscillator that requires four time-span parameters. Buy and sell signals are issued when it\ncrosses its \"signal\" moving average. (This construction is very similar to Gerald Appel's Moving Average\nConvergence\/Divergence Indicator (MACD). Contact Signalert Corp., 40 Middle Neck Road, Great\nNeck, NY 11021 for more information. Also, see Individual Stocks and MACD in this issue.) Before\ndefining the oscillator let me report some of my recent observations.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133787894129,"sku":"\\V07\\C02\\WINNING.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_28c25390-f853-4c49-8b69-8a42f80e8592.jpg?v=1739652506"},{"product_id":"v07-c03-cells-pdf","title":"V.7:3 (73-75): Analyzing indicators with the cells method by David R. Aronson","description":"Analyzing indicators with the cells method\nby David R. Aronson\u003cbr\u003e\u003cbr\u003eDoes a given technical indicator have predictive value or not? This fundamental question must be\nanswered before using it to forecast market trends or as input to trading decisions. An intuitively\nappealing way to answer this question is what I call the signal event method. The signal event method\nevaluates the net profit or loss that would have resulted over some period of past data had a trader acted\non the buy and sell signals generated by the indicator. Applying the signal event method, the analyst\ndefines rules (i.e., one or more conditions) that generate buy and sell signals from the indicator. For\nexample, assume the indicator is a price momentum oscillator calculated by the difference between a\n3-day and a 10-day moving average. The indicator takes on positive values when the value of the 3-day\nmoving average is greater than the 10-day moving average and negative values when the reverse is true.\nOne possible signal rule could be: buy when the oscillator becomes positive; sell when it becomes\nnegative.\u003cbr\u003e\u003cbr\u003eThe signal event method has limitations. First, it requires the analyst to define a signal ruleand there\nare literally an infinite number of rules ranging from the simple to the highly complex that can be defined\nfor any given indicator. Thus, the analysis relates to the defined rule as much as it does to the indicator.\nI'd rather evaluate the indicator apart from any rules imposed on it.\u003cbr\u003e\u003cbr\u003eSecond, in the quest for better results, the analyst is often tempted to define complex,\nmultiple-conditioned rules . Such over-fitted rules are more likely to prove profitable on past data, by\nchance alone, and are not likely to do as well in the future.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133787959665,"sku":"\\V07\\C03\\CELLS.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_e704b53c-d499-41d4-a8e8-2f1252e4ee22.jpg?v=1739652508"},{"product_id":"v07-c03-membert-pdf","title":"V.7:3 (100-101): Member Trading by Arthur A. Merrill","description":"Member Trading\nby Arthur A. Merrill\u003cbr\u003e\u003cbr\u003eOnce a week, but two weeks late, the New York and American stock exchanges report some\ninteresting figures. You will find them in Barron's or The Wall Street Journal :\u003cbr\u003e\u003cbr\u003eTotal volume and total short sales;\u003cbr\u003e\u003cbr\u003eSpecialist purchases, sales\u003cbr\u003e\u003cbr\u003eand short sales;\u003cbr\u003e\u003cbr\u003eFloor traders purchases, sales\u003cbr\u003e\u003cbr\u003eand short sales,\u003cbr\u003e\u003cbr\u003eOdd lot purchases, sales\u003cbr\u003e\u003cbr\u003eand short sales.\u003cbr\u003e\u003cbr\u003eYou can calculate the total exchange member figures by adding the specialist, floor traders and other\nmember numbers. Deduct member data from the total and you have a figure for the non-members or\npublic.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133788025201,"sku":"\\V07\\C03\\MEMBERT.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_9411edd1-051e-4de3-89e7-7a33a938179b.jpg?v=1739652511"},{"product_id":"v07-c03-movavgs-pdf","title":"V.7:3 (87-90): Moving averages and smoothing filters by John Ehlers","description":"Moving averages and smoothing filters\nby John Ehlers\u003cbr\u003e\u003cbr\u003eMoving averages are perhaps the single most widely used technical trading tool. While averages are\nimportant tools, let's face itwe don't need computers to calculate them. Traders were using moving\naverages long before simple calculators were commonly available. Traders simply computed the averages\nby hand. Since we have the awesome power of sophisticated computers now at our fingertips, it's logical\nto imagine that we can harness this power to create a better smoothing filter than the averages we now\nuse. I'll show that may not be so.\u003cbr\u003e\u003cbr\u003eThe object of a smoothing filter is to pass desired frequencies (like price cycles) and to reject the\nundesired frequencies such as \"noise\" or \"jitter\" in everyday market action. An exponential moving\naverage (EMA) is a filter in this sense because it attenuates (that is, diminishes) the high frequency\nvariations while retaining the desired lower frequency variations.\u003cbr\u003e\u003cbr\u003eExploiting the computer's power, we can increase the complexity of a filter's transfer response to create a\n\"stonewall\" filter that has a sharp cutoff response. Such a filter passes all signals below the cutoff\nfrequency almost without attenuation and rejects nearly all signals above the selected frequency. Thus,\nlow frequency waves, like cycles, are extracted from a series of prices while high frequency noise is cut\nout.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133788057969,"sku":"\\V07\\C03\\MOVAVGS.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_c179ab14-ba47-4612-8f6f-0daad5e17a22.jpg?v=1739652513"},{"product_id":"v07-c03-pointfi-pdf","title":"V.7:3 (78-81): Point and figure charts: an overview by Charles Idol","description":"Point and figure charts: an overview\nby Charles Idol\u003cbr\u003e\u003cbr\u003eThe popularity of the personal computer has given rise to a bewildering number of charting techniques.\nIn addition to a profusion of moving averages of one kind or another, we have linear regressions,\nstochastic methods, Fibonacci arcs, Gann angles and any number of applications of mathematical\ntechniques to stock data. This is progress, I suppose.\u003cbr\u003e\u003cbr\u003eThe drawback comes when this abundance shoves from the scene one of the most established and\nvenerable charting methods, one which embodies a unique philosophy as well as a very clever technique.\u003cbr\u003e\u003cbr\u003ePoint and figure (P\u0026amp;F) charting evolved over a long period and has been used by several generations of\ntraders in the stock and commodities future markets. Its application rests on the philosophy that the\nopinion of the investing community dominates the behavior of stocks and the market price epitomizes\nthat opinion.\u003cbr\u003e\u003cbr\u003eThis viewpoint is the antithesis of fundamentalism. You accept the truism that the real value of the stock\ncomes simply from what someone wants to pay for it. It follow that, with proper presentation, you can see\nthe ebb and flow of the community's opinion in the price action.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133788090737,"sku":"\\V07\\C03\\POINTFI.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_ba5e2309-c35b-459e-9484-38d49154792f.jpg?v=1739652516"},{"product_id":"v07-c03-stochas-pdf","title":"V.7:3 (86-86): Stochastic oscillator by Mike Takano","description":"Stochastic oscillator\nby Mike Takano\u003cbr\u003e\u003cbr\u003eThe stochastic oscillator is used to indicate overbought or oversold conditions on a scale of zero to 100%.\u003cbr\u003e\u003cbr\u003eThe stochastic process is based on the observation that as price decreases, the daily closes tend to\naccumulate nearer the extreme lows of the daily range.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133788189041,"sku":"\\V07\\C03\\STOCHAS.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_16f04213-2603-4550-9799-c2e9ed75e6dc.jpg?v=1739652519"},{"product_id":"v07-c03-tactica-pdf","title":"V.7:3 (69-72): Tactical stock trading by Peter Eliason","description":"Tactical stock trading\nby Peter Eliason\u003cbr\u003e\u003cbr\u003eWe have all heard that there is no solution to predicting the market because price movement is a\nrandom walk. The statement is partially right and partially wrong. Price movement may be random, but\nthere is an exact solution to a random walk that can be used to mathematically beat the markets.\u003cbr\u003e\u003cbr\u003eThe solution revolves around the use of a tempered martingale numerical series. This algorithm is not\nprobabilistic, but it is mathematically exact. (See Stocks \u0026amp; Commodities, July 1988, page 40.) It has two\ncomponents: a point spread that determines exactly when to buy and sell and a numerical series that\ndetermines how many shares to buy or sell to produce a pre-known gross profit.\u003cbr\u003e\u003cbr\u003eWe start with a beginning numerical series such as [1 2 3 4 5 6], with each number representing a\n\"factorable\" number of shares to own. The \"factor\" is multiplied times the number in the series to\ndetermine the number of shares which will be traded. For example, a factor of 100 would make the \"5\" in\nthe series represent 500 shares.\u003cbr\u003e\u003cbr\u003eOnce we have the series, we need a \"base price\" which is usually just the price of the last buy, sell or no\naction transaction. We start by buying at the base price and set two limit orders a point spread above (a\nsell) and below (a buy) the base price. If a stock's price is $10 per share, the limit orders may be set at $9\nor $11or any other spread, for that matter.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133788221809,"sku":"\\V07\\C03\\TACTICA.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_f9c60275-171c-4ed7-a6f3-e9fd9768fffe.jpg?v=1739652521"},{"product_id":"v07-c03-testing-pdf","title":"V.7:3 (96-99): Testing breakout systems by Steve Notis","description":"Testing breakout systems\nby Steve Notis\u003cbr\u003e\u003cbr\u003eBreakout or volatility systems comprise a large portion of the current glut of publicly offered trading\nsystems. Many of these systems sell for $3,000 or more. For that price you usually get a nice software\npackage which will run optimizations on several variable parameters and give you a printout of the most\nprofitable runs.\u003cbr\u003e\u003cbr\u003eWhether you can make money using those parameters is an open question. Aside from the software, you\nare buying the system designer's logic, whether fully disclosed or proprietary, which is embedded in the\nsoftware. You can adjust the input parameters to your heart's content but you cannot generally change the\nsystem's trading rules.\u003cbr\u003e\u003cbr\u003eThe core strategy of a breakout system is not new and has been previously described in books by J.\nWelles Wilder, Perry Kaufman and, most recently, by Larry Williams in his new book, The Definitive\nGuide To Futures Trading. Williams has developed a variation on the general theme which he calls his\n75% system. The logic is very clean and simpleyou determine the daily range on the S\u0026amp;P 500 futures\ncontract for each of the past five days, you add the ranges together and then divide by five to get the\naverage range of the past five days. Multiply the average range by 0.75 so that you have a number which\nrepresents 75% of the average five day range.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133788254577,"sku":"\\V07\\C03\\TESTING.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_c4e02b47-0a82-4ee1-afae-c4efa70ed8ba.jpg?v=1739652523"},{"product_id":"v07-c03-variabl-pdf","title":"V.7:3 (82-85): Variable sensitivity stochastics by William Mason","description":"Variable sensitivity stochastics\nby William Mason\u003cbr\u003e\u003cbr\u003eIn this article, I am presenting elementary Statistical Analysis of Stocks and Indices (SASI) in an index,\nthree new indicators (SASITOP, SASIBOT and sigma limits) plus variable-sensitivity stochastics based\non statistical analysis. SASITOP is very similar to stochastics but uses plus and minus variance (sigma)\nlimits in place of the high and low over the time window. The data is modified for sharper sensitivity.\nBecause SASITOP and SASIBOT are the reciprocal of each other, I will concentrate only on SASITOP\nin this article and apply it to the Technical Index which measures overall market breadth (see Stocks \u0026amp;\nCommodities, January 1989) although it may be applied to any index or set of data.\u003cbr\u003e\u003cbr\u003eTo generate SASITOP:\u003cbr\u003e\u003cbr\u003e1. Calculate the statistical sample variation s2. For a finite population, s2 is mathematically described by:\u003cbr\u003e\u003cbr\u003e...\u003cbr\u003e\u003cbr\u003ewhere X represents the values in your time series and n is number of observations\u003cbr\u003e\u003cbr\u003eDon't panic. Use a spreadsheet like Lotus 1-2-3 which has a built in variance function. The Lotus 1-2-3\nvariance function has to be modified: s2m = s2[n\/(n-1)] to account for a finite population (where n = the\ntime window). Some spreadsheets such as Excel have this modification built in to the variance (VAR)\nfunction.\u003cbr\u003e\u003cbr\u003e...","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133788287345,"sku":"\\V07\\C03\\VARIABL.PDF","price":4.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_6765d8a2-ac11-432d-a82b-f27788add22a.jpg?v=1739652526"},{"product_id":"v07-c03-velocit-pdf","title":"V.7:3 (91-95): Velocity of the S\u0026P 500 by Robert A. Wood","description":"Velocity of the S\u0026amp;P 500\nby Robert A. Wood\u003cbr\u003e\u003cbr\u003eStructural changes in security markets resulting from the introduction of derivative instruments, namely\noptions and futures, have been the focus of extensive study in recent years. More recently, the\nintroduction of portfolio insurance and arbitrage trading strategies involving market indices implemented\nwith program trading have been the subject of widespread concern, especially after the events of October\n19, 1987.\u003cbr\u003e\u003cbr\u003eDo derivative instruments, portfolio insurance trading strategies and\/or the ability to instantly trigger a\nlarge number of trades by computer destabilize markets given their current design? If so, can markets be\nsensibly re-engineered to accommodate these trading developments?\u003cbr\u003e\u003cbr\u003eRecent studies have examined the historical trend of volatility and have not found substantial increases in\nthe changing levels of market volatility. As these studies are updated to include 1987 data, the results\nmay be significantly altered, but they still do not touch the issue of speed or velocity of market\nmovements, particularly in light of current trading strategies which could influence the rapidity of market\nmovements.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133788320113,"sku":"\\V07\\C03\\VELOCIT.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_ca0aba20-e3d8-47d7-a9ff-1f61fa31944b.jpg?v=1739652528"},{"product_id":"v07-c03-volumew-pdf","title":"V.7:3 (76-77): Volume-weighted RSI: money flow by Gene Quong and Avrum Soudack","description":"Volume-weighted RSI: money flow\nby Gene Quong and Avrum Soudack\u003cbr\u003e\u003cbr\u003eThe Relative Strength Index (RSI) by J. Welles Wilder Jr. is one of the most popular technical\nindicators. RSI is included in most of the technical analysis software available today. Anyone conversant\nwith the algorithm used to calculate RSI knows that only the closing price is used. We believe RSI can be\nimproved by using volume to weight the index.\u003cbr\u003e\u003cbr\u003eClassic market tops are characterized by an increase in volume. Technical indicators which rely only on\nprice changes do not reflect the whole picture. Volume can vary by an order of magnitude in selloffs. We\nbelieve that RSI's failure to account for volume is a serious deficiency because volume can vary widely in\nmarket tops and bottoms.\u003cbr\u003e\u003cbr\u003eIn an effort to improve the RSI we have devised a unique short-term technical indicator called Money\nFlow Index (MFI). This indicator attempts to measure the strength of money entering and leaving the\nmarket.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133788549489,"sku":"\\V07\\C03\\VOLUMEW.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_4b80d4b7-9036-4927-9ac8-501e8fd5b022.jpg?v=1739652530"},{"product_id":"v07-c04-alphabe-pdf","title":"V.7:4 (124-129): Alpha-beta trend following system Version II, tuning for performance by Anthony W. Warren Ph.D.","description":"Alpha-beta trend following system\nVersion II, tuning for performance\nby Anthony W. Warren Ph.D.\u003cbr\u003e\u003cbr\u003eSeveral years ago, I published the alpha-beta trend following method in Technical Analysis of Stocks \u0026amp;\nCommodities. Although similar in concept to the classic moving average crossing systems, this method\nutilized an uncertainty band or trend channel to eliminate most of the false signals associated with\nmoving average crossings. In addition, it graphically represented the preferred times to go long, go short\nand to stay out of a particular stock, bond or commodity market.\u003cbr\u003e\u003cbr\u003eOne of the problems, however, with the original alpha-beta code published in Stocks \u0026amp; Commodities in\n1985 was that it did not easily lend itself to profitability analysis or tuning the input parameters. The\noriginal code chose the trend channel's width based on all the data in the file, rather than just the data\nprior to each trading date.\u003cbr\u003e\u003cbr\u003eThe revised computer code listed at the end of this article is more responsive to the current market\nenvironment and is more easily tuned to eliminate spurious trading signals and to exit with maximum\nprofit! Let moving averages rest in peace. Try alpha-beta!\u003cbr\u003e\u003cbr\u003eMethodology\u003cbr\u003e\u003cbr\u003eThe alpha-beta trend-following method plots four time series:\u003cbr\u003e\u003cbr\u003e the current price time history which, typically, is the daily or weekly closing price,\u003cbr\u003e\u003cbr\u003e the upper and lower trend channels which define the uncertainty band for trade decisions, and\u003cbr\u003e\u003cbr\u003e...","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133788582257,"sku":"\\V07\\C04\\ALPHABE.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_ae7e9886-ccf7-4461-80d7-7b8d8608765a.jpg?v=1739652533"},{"product_id":"v07-c04-cyclicp-pdf","title":"V.7:4 (132-134): Cyclic personalities by John Ehlers","description":"Cyclic personalities\nby John Ehlers\u003cbr\u003e\u003cbr\u003eAre there basic differences in the cyclic behavior of various commodities? Although theory predicts\nshort-term cycles will come and go, there is no theory predicting different cyclic \"personalities\" for\ndifferent commodities. My experience has been that cyclic trading is successful for some commodities\nbut not for others. My curiosity about the cyclic behavior of different commodities was aroused during\nthe development of a Maximum Entry Spectral Analysis program (MESA) that provided backtesting.\nUsing the program, I measured the cycles of 12 commodities over the past two years. I found that each\ncommodity does have its own cyclic personality. Moreover, commodities within the same category\n(meats, grains, metals) do not necessarily have similar cyclic personalities.\u003cbr\u003e\u003cbr\u003eCycle measurements\u003cbr\u003e\u003cbr\u003eI used perpetual daily contracts containing 500 records, and the average of the high and low for each day\ndetermined the price from which the cycle was measured. The program then measured the short-term\ncycles for each 50- day period, starting with record number 50. (The program needed the first 50 records\nto make the first measurement.) The dominant cycle and cyclic content were measured daily for records\n50-500, a total of 451 measurements.\u003cbr\u003e\u003cbr\u003e\"Cyclic content\" is a signal-to-noise ratio over 6 decibels. Noise is all of the non-cyclic energy with\nperiods of less than 5 days and greater than 40 days. (Noise by this definition includes trendlines as well\nas the random day-to-day fluctuations of price.) My experience is that a cyclic content of at least 6\ndecibels is useful for trading. At lower values, the noise greatly influences any predictions based on\ncycles, reducing the accuracy of the predictions. Therefore, I discarded measurements having a cyclic\ncontent of less than 6 decibels.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133788615025,"sku":"\\V07\\C04\\CYCLICP.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_46ced4f2-5073-4e8e-9345-90c9b9d2d711.jpg?v=1739652535"},{"product_id":"v07-c04-discipl-pdf","title":"V.7:4 (130-131): Discipline in trading by James Covington Bryce","description":"Discipline in trading\nby James Covington Bryce\u003cbr\u003e\u003cbr\u003eI would like you to bear with me for a moment and consider something that, at first, might appear to be\na little \"far out.\" Let's say all of a sudden you found yourself going about your daily tasks but you didn't\nhave your body! Now I know it is a crazy idea, but consider it for a moment. How would you describe\nyourself? What would you be? You only live in your body. What you are really is not tangible, i.e., it\ncannot be measured by any of the five senses.\u003cbr\u003e\u003cbr\u003eThis, my friend, is a very important exercise relative to stock and futures trading because successful\ntrading depends on knowing who and what you are. Most people simply do not know themselves very\nwell and, consequently, are unable to identify their friends and their enemies within, much less control\nthem. Anyone who actively trades the stock, option or futures markets is actually taking a major course in\npsychology and a minor course in trading. Traders find many of their \"selves\" staring them in the face\nevery day. The smart thing to do is to take advantage of this through observing and taking note of these\ncharacteristics that are brought to the fore. ...","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133788647793,"sku":"\\V07\\C04\\DISCIPL.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_d1509516-ec6f-4c1d-a0fd-c1b9e98c86b5.jpg?v=1739652538"},{"product_id":"v07-c04-hines-pdf","title":"V.7:4 (115-118): Hines ratio by Ray Hines","description":"Hines ratio\nby Ray Hines\u003cbr\u003e\u003cbr\u003eIn 1982, I found the best way to design an indicator that stays with a trend until it has run its course is to\nisolate the factors that correlate highest with the price trend and monitor their intensity.\u003cbr\u003e\u003cbr\u003eThe relative intensity of correlating factors is the primary influence on price behavior and overcomes the\nweakness of \"fixed\" trend indicators that contain the analyst's preconception of what length a trend\nshould be.\u003cbr\u003e\u003cbr\u003eThis result forced me to become an even bigger fan of investor emotion and the monetary areas because\nof their powerful influence on price behavior. What more emotional animal could there be on Wall Street\nthan the world of options?\u003cbr\u003e\u003cbr\u003eI felt that the traditional sentiment measure the put\/call ratio was a distorted method of measuring\nsentiment. Why? Because put and call option activity consistently gives more meaningful readings if it is\nmeasured in relation to the open interest associated with it. The resulting short-term strength ratios below\nalso give a trader the ability to differentiate the sentiment associated with both sides of the investment\nargument, the bulls and the bears:\u003cbr\u003e\u003cbr\u003e...","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133788811633,"sku":"\\V07\\C04\\HINES.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_e803e7d3-1d9d-4dc9-99bf-a54fc2571dbb.jpg?v=1739652540"},{"product_id":"v07-c04-mastero-pdf","title":"V.7:4 (109-111): Master oscillator by William Mason","description":"Master oscillator\nby William Mason\u003cbr\u003e\u003cbr\u003eIs it possible to produce an overall market entry or exit signal based on several indicators\/indices? In\nanswering this intriguing question, I asked myself, \"What do I look at and look for as my first quick\nestimate of the market trend and direction?\" My answer was that I go to three or four of my favorite\nindicators\/indices and find out where they are in respect to their 10% exponential smoothing average (a\n20-day moving average) which has proven, with time, to be a very good short-term support or resistance\nline.\u003cbr\u003e\u003cbr\u003eMy next thought was, instead of trying to remember where each indicator\/index is with respect to its 10%\nexponential smoothing curve, why not let the computer keep track of the relationships? Then I thought,\n\"Why not take all of the differences between my favorite indicators\/indices, algebraically combine the\nresult and take the average to produce an integrated picture of what I had been doing mentally?\" Here's\nhow I proceeded and the results:\u003cbr\u003e\u003cbr\u003e STEP 1 - First of all, I picked as indicators\/indices the Dow Jones Industrial Average (DJIA), the\nTechnical Index, Relative Strength Index (RSI) of the Technical Index and the Cash Flow Index. The\nTechnical Index is already composed of advancing minus declining issues, up volume minus declining\nvolume, and new highs minus new lows (see Stocks \u0026amp; Commodities, December 1988.) The Cash Flow\nIndex is the accumulated product of the daily net volume times the daily net Technical Index.\u003cbr\u003e\u003cbr\u003e...","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133788844401,"sku":"\\V07\\C04\\MASTERO.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_20b737ba-9b42-4152-82d4-df3fb178d8b5.jpg?v=1739652544"},{"product_id":"v07-c04-member-pdf","title":"V.7:4 (103-105): Member and public short selling by Arthur A. Merrill","description":"Member and public short selling\nby Arthur A. Merrill\u003cbr\u003e\u003cbr\u003eTotal short sales figures, published by the New York and American stock exchanges, are a useful set of\nfigures for gauging market moods. Total short sales figures are reported in The Wall Street Journal and\nBarron's. Exchange members and non-members, or the public, make up the total short sales figures.\u003cbr\u003e\u003cbr\u003eYou can calculate the total exchange member figures by adding the specialist, floor traders and other\nmember numbers. Deduct member data from the total and you have a figure for the non-members or\npublic.\u003cbr\u003e\u003cbr\u003eSome analysts report \"members total\" and \"public short sales\" figures as a percentage of the total short\ninterest. These percentages compare the relative size of the member short sales to the public short sales,\nbut conceal the absolute values. This makes it difficult to tell whether the shorting is light or heavy.\u003cbr\u003e\u003cbr\u003eFor this reason, I prefer to express the short selling as a percentage of the trading volume on a given day.\nThis is the usual method of expressing the monthly short interest. It reveals the size of the shorting,\ncorrected for the volume of trading. You can then compare the public and member shorts to find out who\nis doing the shorting. You get double duty from the data.\u003cbr\u003e\u003cbr\u003eThe separation of member and public short sales is revealing. It shows the degree of pessimism of the\nsmart money and the not-so-smart money.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133788877169,"sku":"\\V07\\C04\\MEMBER.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_9ab875f1-2ea9-49a8-a3ae-7167b2506750.jpg?v=1739652546"},{"product_id":"v07-c04-orb-pdf","title":"V.7:4 (119-120): Opening range breakout Part 5 by Toby Crabel","description":"Opening range breakout\nPart 5\nby Toby A. Crabel\u003cbr\u003e\u003cbr\u003eA trade taken at a predetermined amount above or below the opening price of a given day is called an\nopening range breakout (ORB).A narrow range four pattern (NR 4) is a day with a daily range that is\nnarrower than the previous three days' daily ranges compared individually. In my experience, trades using\nthe ORB technique on a day following an NR 4 pattern tend to coincide with trend day activityand,\nconsequently, successful ORBs.\u003cbr\u003e\u003cbr\u003eFigures 1 and 2 demonstrate an ORB on the day following the NR 4 pattern. The table in Figure 3 shows\nthe results of testing the relationship between the NR4 pattern and trending markets with this technique.\naction on the day of an ORB. There were four tests per market and the only difference between them was\nthe point of entry above or below the open. Trades were entered on a stop at the indicated level with an\nexit on the same day's close.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133788909937,"sku":"\\V07\\C04\\ORB.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_896209d5-2960-4324-b5c2-070c45d6c734.jpg?v=1739652549"},{"product_id":"v07-c04-pfanaly-pdf","title":"V.7:4 (106-108): Point and figure: Analysis and projection Part 2 by Charles Idol","description":"Point and figure: Analysis and projection\nPart 2\u003cbr\u003e\u003cbr\u003eby Charles Idol\u003cbr\u003e\u003cbr\u003eThe fundamental pattern in point and figure charting the congestion area occurs after a\nsubstantial rise or fall in the price of a stock as the investment community adjusts to the new price. This\ncongestion area looks like sideways price activity within a trading range (Figure 1). As a rule of thumb,\nthe trading ranges are about 15% of the price for a low-priced stock, 10% for a medium-priced stock and\n5% for a high-priced stock.\u003cbr\u003e\u003cbr\u003eUsually, you use the one-point box, one-box reversal charts (a 1x1 chart) to study congestion areas,\nalthough with stocks selling below $20, the half-point, one-box reversal chart may turn out better. Point\nrefers to the amount of price change necessary to generate an \"x\" or an \"o\" along the y-axis. Box is the\nnumber of price points necessary to change from \"x\" to \"o\" along the x-axis. Figure 1 is a 1x1 chart for\nthe hypothetical Universal Widget Corporation. I've numbered the columns of the chart to assist our\nanalysis. Notice the congestion pattern between columns 14 and 27 when the price ranged from $28 to\n$31. Because this pattern formed at the base of a decline, we recognize it as a support level a price at\nwhich any future declines will encounter resistance.\u003cbr\u003e\u003cbr\u003eThe strength or effectiveness of a congestion area as a support or resistance level depends, in part, on its\nwidth. The definition of how many columns make a wide area depends on the individual stock.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133789368689,"sku":"\\V07\\C04\\PFANALY.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_f88daa2f-0932-4ebd-819d-5300cc6ad3ea.jpg?v=1739652551"},{"product_id":"v07-c04-sideba-pdf","title":"V.7:4 (124-129): SIDEBAR: Alpha-beta, Version II","description":"Alpha-beta, Version II\u003cbr\u003e\u003cbr\u003eThis generic QuickBASIC routine for computing alpha-beta trend channels and trading filters assumes\nthat you already have a means of inputing historical time series data into an appropriately dimensioned\narray X(M,N), where M \u0026gt;= 4 and N is at least as large as NUM, the number of time points in the input\ndata.\u003cbr\u003e\u003cbr\u003eYou also will need some method of plotting the trend channel and trading filter on the same graph.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133789401457,"sku":"\\V07\\C04\\SIDEBA.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_3d2b28fb-10c1-4807-8f04-3f596c75ee2d.jpg?v=1739652554"},{"product_id":"v07-c04-simplec-pdf","title":"V.7:4 (112-114): A simple cycle finder by Curtis McKallip Jr.","description":"A simple cycle finder\nby Curtis McKallip Jr.\u003cbr\u003e\u003cbr\u003eCycle signatures are patterns created by cycles. If you're familiar with Fourier analysis and maximum\nentropy methods of cycle analysis you know they produce a pattern called amplitude spectra which\nrequires a computer to calculate.\u003cbr\u003e\u003cbr\u003eIn some situations where you might not wish or be able to use a computer, I have an effective method\nthat, compared to computerized mathematics, is crude. Literally, it is a back-of- the-envelope method.\nYet it is fast and gives you critical information identifying when your next trading window will arrive.\u003cbr\u003e\u003cbr\u003eThis method tells you about the variation in timing of cycles as well as their length. In the following\nprocedure, assume you are looking for cycles of lows (The steps are similar for highs):\u003cbr\u003e\u003cbr\u003e1. Get a price chart showing at least four or five cyclical lows. The longer the time period the chart\ncovers, the more information you gain about the cycles.\u003cbr\u003e\u003cbr\u003e2. Using a ruler, mark a vertical line through each low you consider to be important (Figure 1). You will\nhave to decide what magnitude of low is important.\u003cbr\u003e\u003cbr\u003e3. On the edge of an envelope or sheet of paper, mark a 1-inch vertical line which I refer to as the starting\nmark. Place this line next to the first cycle low on the price chart.\u003cbr\u003e\u003cbr\u003e...","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133789434225,"sku":"\\V07\\C04\\SIMPLEC.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_35756081-5e77-4129-991e-5c3cfb88b417.jpg?v=1739652556"},{"product_id":"v07-c04-underst-pdf","title":"V.7:4 (121-123): Understanding Market Profile Part 6 by Thomas P. Drinka and Stephen M. Ptasienski","description":"Understanding Market Profile\nPart 6\u003cbr\u003e\u003cbr\u003eby Thomas P. Drinka and Stephen M. Ptasienski\u003cbr\u003e\u003cbr\u003eRange extensions are the intraday price moves that hold good profit potential. Many current trading\nsystems use them although they are typically called opening range breakouts (See \"Opening Range\nBreakout, Part 5\" in this issue). Our research into the range extensions of the Chicago Board of Trade's\nMarket Profile report suggests there are analyses that Market Profile traders may wish to conduct on a\nday-to-day basis. We tabulated the frequency and magnitude of range extensions of 12 markets from\nFebruary 1 to July 29, 1988, using nearby contracts only.\u003cbr\u003e\u003cbr\u003eAccording to J. Peter Steidlmayer, Market Profile's author, price probes attributed primarily to\n\"day-time-frame\" traders usually converge to an initial balance during the first two half-hour periods of a\ntrading session. Once the initial balance is established, the only possible development is an imbalance, or\nrange extension, attributed to \"other-time-frame\" traders.\u003cbr\u003e\u003cbr\u003eFigure 1 is a frequency distribution of the half-hour periods during which range extension first occurs\nduring the trading session. The initial balance of CBOT corn, for example, is assumed to be established\nduring the D and E periods. Then, during the six-month period of analysis, the first instance of range\nextension occurred during the F period in 32% of the trading sessions, during G period in 19% of the\ntrading sessions, and so on. As the table shows, the first range extension of the day occurs most often\nimmediately following the first hour of trade.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133789466993,"sku":"\\V07\\C04\\UNDERST.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_7f4163f9-9995-4303-96ca-00368c81c24e.jpg?v=1739652559"},{"product_id":"v07-c05-adline-pdf","title":"V.7:5 (147-149): An advance\/decline line for commodities by Thom Hartle","description":"An advance\/decline line for commodities\nby Thom Hartle\u003cbr\u003e\u003cbr\u003eOne of the first technical lessons in stock market investing is understanding the relationship between the\nmovements of the Dow Jones Industrial Average (DJIA) and the advance\/decline (A\/D) line for the New\nYork Stock Exchange. The A\/D line is the cumulative difference between the number of issues trading up\non the day and the number of issues trading down on the day. If 235 issues are up and 356 issues are\ndown then the A\/D value for the day will be -121.\u003cbr\u003e\u003cbr\u003eYou may begin a cumulative total with any number. If you start with 1,000 and add today' s total of -121,\nthe cumulative A\/D value is 879. If the next day is up 329 issues and down 124 issues, that difference of\n+205 is added to the previous day' s cumulative value (879) for a new total of 1,084.\u003cbr\u003e\u003cbr\u003eEach day's cumulative value is plotted on a chart along with the daily closes for the DJIA. Technicians\nwatch for confirmation (both the DJIA and the A\/D line are trending higher or lower together) or\nnon-confirmation (the DJIA is trending higher while the A\/D line is moving lower or the DJIA is moving\nlower while the A\/D line is improving). Watching for this confirmation or non-confirmation is a study of\nthe breadth of stock market movements. Knowing the breadth of rallies or declines can help determine\nthe chances of a broad-based move up or a very weak downtrend developing.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133789892977,"sku":"\\V07\\C05\\ADLINE.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_2de59c34-8a82-47f6-b2fd-531e3a7cb792.jpg?v=1739652561"},{"product_id":"v07-c05-avgsyst-pdf","title":"V.7:5 (154-156): Averaging systems by Charles Idol","description":"Averaging systems\nby Charles Idol\u003cbr\u003e\u003cbr\u003eEveryone knows the secret of successful investing: buy low and sell high. Unfortunately, that rule\nrequires accurate market predictions. If clouds obscure your crystal ball, it would be to your advantage to\nconsider the merits of the averaging systems.\u003cbr\u003e\u003cbr\u003eDollar averaging has been advocated for a long time as a conservative, reasonably successful system\nwhich takes some advantage of market cycles, surpasses the \"buy it and forget it\" syndrome and requires\nalmost no thought on the part of the investor. Value averaging requires a little more work, participates\nmore deeply in the market cycle and appears to outperform dollar averaging.\u003cbr\u003e\u003cbr\u003eThe dollar averaging system requires only that you choose a security in which you wish to invest a fixed\namount of money at regular intervals, usually every month. Usually, dividends or distributions are\nre-invested. Very simple in application, the method lends itself to a budget for investment and takes\nadvantage of market cycles because you purchase more shares per unit time in the low portions of the\ncycle and fewer in the high portions. However, you need cyclical market behavior and you must\nparticipate over at least one cycle.\u003cbr\u003e\u003cbr\u003eValue averaging requires that you choose a security in which you wish to have your equity increase by a\nfixed amount at regular intervals, again usually every month. To implement this method, you begin by\ninvesting the budgeted amount. At the start of the next month, you multiply the current share value by the\nnumber of shares you hold to see how much you must invest to increase your equity by the amount of\nyour plan.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133789925745,"sku":"\\V07\\C05\\AVGSYST.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_c3606ed3-1b4d-46ad-9a39-b3ec9fa16e8c.jpg?v=1739652563"},{"product_id":"v07-c05-dollarl-pdf","title":"V.7:5 (157-158): DollarLink by Rich Rosen","description":"DollarLink\nby Rich Rosen\u003cbr\u003e\u003cbr\u003eA major new software package called DollarLink has quietly hit the market. The name isn't the\ngreatest, but traders will find this extraordinary real-time program blows away anything on the market.\nSome very strong words indeednow let's see if I can back them up.\u003cbr\u003e\u003cbr\u003eRight from the get-go, you know DollarLink was carefully written by the way the installation program\nsteps you through a list of 40 fairly involved and low or asked. In addition, prices can be displayed either\nin decimal or fractions and they change color from green to white to red depending on whether the\nincoming trade is up, unchanged or down. Price and volume alarms are easily set easily and all prices are\ncleverly error checked by percentage change.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133790024049,"sku":"\\V07\\C05\\DOLLARL.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_ba07af49-a5ef-432a-8be7-2aa11952c9bf.jpg?v=1739652566"},{"product_id":"v07-c05-mrkfore-pdf","title":"V.7:5 (159-160): The Market Forecaster by Mark Hallinan","description":"The Market Forecaster\nby Mark Hallinan\u003cbr\u003e\u003cbr\u003eThe\nMarket Forecaster is a program based on an econometric model of the U.S. stock market over the\npast 25 years, which produces a forecast of the U.S. stock market for the next 40 to 80 trading days. It\nwas recently updated with a completely new regression equation, with significantly different inputs.\u003cbr\u003e\u003cbr\u003eThe program I reviewed consisted of a single 5-1\/4 inch IBM diskette, a 37-page manual plus a few data\ncollection sheets, a startup sheet and a sheet which indicates in detail where the input information can be\nobtained from Barron' s \"Market Laboratory\" section.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133790056817,"sku":"\\V07\\C05\\MRKFORE.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_8a55dd55-da42-4ccb-9a72-0e97117ee5e8.jpg?v=1739652569"},{"product_id":"v07-c05-newcycl-pdf","title":"V.7:5 (137-139): A new cycle analysis trading technique by Russell L. Miller","description":"A new cycle analysis trading technique\nby Russell L. Miller\u003cbr\u003e\u003cbr\u003eThis article describes a novel cycle-based day trading system that, under testing, turned in nearly a\n300% annualized profit on equity. In most cases, trading with cycles involves entering a position at a\ncycle peak or valley and holding the position through a half cycle until it's time for the direction to\nchange. My system, on the other hand, uses cycle analysis to predict the direction of the next day's move\nin a commodity so that a long or a short position can be entered at the next day's open and exited at the\nclose of the market.\u003cbr\u003e\u003cbr\u003eI chose day trading to avoid the risk, insomnia and high margins involved in overnight positions. I set up\nentry and exit rules for the trader who wants to make a decision the night before and not be tied to\nwatching the board all day. The tools used in this system include spreadsheets and MESA, a cycle\nanalysis program that measures any cycles that exist in any set of 60 data points and predicts the next 15\ndata points on the assumption that the cycles will remain unchanged.\u003cbr\u003e\u003cbr\u003eTesting approach\u003cbr\u003e\u003cbr\u003eI first tested a synthetic data file made up from a pure sine wave with MESA. This was too easy, so I\nchanged the data file to a compound wave created by adding three sine waves with out of-phase\nfrequencies and varying amplitudes (Figure 1).","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133790122353,"sku":"\\V07\\C05\\Newcycl.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_a7a5cd52-5e74-4902-98da-2e72e4be90ea.jpg?v=1739652571"},{"product_id":"v07-c05-orb-pdf","title":"V.7:5 (161-163): Opening Range Breakout Part 6 by Toby Crabel","description":"Opening Range Breakout\nPart 6\nby Toby Crabel\u003cbr\u003e\u003cbr\u003eTwo price chart patterns the inside day (ID) and the four-day narrowing range (NR 4) have\nproven to be reliable predecessors of trending action that can be profitably traded with an opening range\nbreakout (ORB) system. (See Stocks \u0026amp; Commodities, February and April 1989.)\u003cbr\u003e\u003cbr\u003eWhat happens to the predictive power of these patterns when they're combined? My research assumption\nwas that, because they were both individually successful, they would produce clearer ORB buy\/sell\nindications when combined.\u003cbr\u003e\u003cbr\u003eI examined this assumption in several ways. First, I directly tested how the ID\/NR 4 pattern affected ORB\ntrades entered at various points on either side of the opening range (Figure 1). Secondly, I compared the\npercentage of winning trades taken after the ID\/NR 4, ID and NR 4 patterns and on any day regardless of\nwhether or not a pattern existed (Figure 2).","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133790220657,"sku":"\\V07\\C05\\ORB.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_ddacee7a-d9a2-4152-868f-6d0abe45dd44.jpg?v=1739652573"},{"product_id":"v07-c05-public-pdf","title":"V.7:5 (140-142): Public\/member short selling by Arthur Merrill","description":"Public\/member short selling\nby Arthur Merrill\u003cbr\u003e\u003cbr\u003eThe statistics on shorting by professionals and by the public can be combined into revealing and\nsuccessful indicators. The basic figures are published, two weeks late, in Barron's and The Wall Street\nJournal. The New York and American stock exchanges report total short sales and the portions of the\ntotal made up by specialists, floor traders and other members for their own account.\u003cbr\u003e\u003cbr\u003eThese three subcategories can be added together to yield \"total members,\" or shorting by the smart\nmoney. Total members can be subtracted from total short sales to yield \"public short sales,\" or\nnot-so-smart shorts.\u003cbr\u003e\u003cbr\u003eAnalysts John McGinley and Walter Deemer have promoted a simple comparison of the two groups\nusing a ratio of public short sales to member short sales. When this index has a high value, the public is\nmore pessimistic than the professionals. This is a bullish sign. To smooth out the fluctuations, I use a\n22% exponential moving average. (To calculate, add 22% of each new statistic to 78% of the preceding\naverage to yield a new average.)","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133790253425,"sku":"\\V07\\C05\\PUBLIC.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_3e7bf393-b089-40ad-88be-80c058f8775f.jpg?v=1739652576"},{"product_id":"v07-c05-timepri-pdf","title":"V.7:5 (143-146): Time, price and pattern by Robert Miner","description":"Time, price and pattern\nby Robert Miner\u003cbr\u003e\u003cbr\u003eThis article is taken from the notes of my trading log for a closed and open trade in the platinum\nmarket. My trading plan is three-dimensional. I look for coincidences of time, price and pattern in market\nactivity to indicate trades that promise maximum profit potential with minimum exposure and risk. Only\nwhen the market completes a reliable pattern, near a time period indicating a change in trend and at an\nimportant price level, do I enter or exit a trade. All three dimensions must coincide.\u003cbr\u003e\u003cbr\u003eThe time ratio analysis of the recent major cycles in the gold market indicated that the period near\nSeptember 16-27, 1988 would likely result in an important change in trend.\u003cbr\u003e\u003cbr\u003eTiming, as well as price activity, is often related to the important Fibonacci ratio of 61.8%. Most traders\nare well aware that price often retraces 61.8% of the prior swing. This important Fibonacci ratio is also\nvery important in my timing analysis for the precious metals markets. A change in trend often results near\na61.8% time ratio of a prior cycle extended from the completion of that cycle. Let me illustrate and\nexplain why I was looking for an important change in trend near September 16-27.\u003cbr\u003e\u003cbr\u003eThe \"death zone\"\u003cbr\u003e\u003cbr\u003eMy timing analysis for platinum (Figure 1) is primarily keyed off the gold market cycles. The December\n14, 1987 high to the June 2, 1988 high in gold equaled 171 calendar days. The Fibonacci ratio of 61.8%\ntimes 171 equals 106 and 106 calendar days from the June 2 high fell on September 16.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133790351729,"sku":"\\V07\\C05\\TIMEPRI.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_89c72992-2b86-4165-80c4-404b47e0330e.jpg?v=1739652578"},{"product_id":"v07-c05-traditi-pdf","title":"V.7:5 (150-153): Traditional chart analysis: A neglected tool? by Thomas Aspray","description":"Traditional chart analysis: A neglected tool?\nby Thomas Aspray\u003cbr\u003e\u003cbr\u003eWith the virtual explosion of computerized technical analysis over the past few years, some basic\nmethods of analysis are often forgotten or at least neglected. I confess that I have even contributed to the\noutbreak of \"oscillatoritis\" by focusing my research and writing on developing new, computerized\ntechnical indicators. Despite this, traditional chart analysis does play an important role in my own\nanalysis.\u003cbr\u003e\u003cbr\u003eTraditional chart analysis is a proven method of analysis and I feel it can be very useful, even for the\nsophisticated trader. The two primary advantages, in my view, are the additional discipline it can add to a\ntrading plan and the ability to calculate reasonable price objectives and protective stops from the chart\nformations.\u003cbr\u003e\u003cbr\u003eIn the ideal head and shoulders top (Figure 1), the left shoulder usually has the peak volume. Volume\nthen decreases during the formation of the head, indicating that demand is weakening. Volume, typically,\nwill be weakest during the development of the right shoulder. On the breakout below the neckline, the\nvolume should expand as sellers take control of the market. The objective after the breakout is the\ndistance, D, from the peak of the head to the neckline.\u003cbr\u003e\u003cbr\u003eAn ideal double top (Figure 2) has peak volume during the first drive toward resistance. On the second\nattempt to break resistance, volume is low, which indicates demand is weak. After the breakout below the\nsupport line, the minimum objective is the distance, D, from the peak in prices to the support line.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133790384497,"sku":"\\V07\\C05\\TRADITI.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_7bd62219-4a00-40e4-af1a-b5ff8c3673e7.jpg?v=1739652580"},{"product_id":"v07-c06-dailyst-pdf","title":"V.7:6 (171-173): Daily stock tendencies by L. R. James","description":"Daily stock tendencies\nby L. R. James\u003cbr\u003e\u003cbr\u003eMost of us who have done a substantial amount of stock trading would agree that the broad market\ndoes a lot of funny things. In theory, the stock market is a vast, highly efficient mechanism that takes in\ninformation, evaluates it and adjusts its pricing according to its consensus opinion of the future. Over the\nlonger term, that's basically what it does. However, over shorter periods of time, there are some\ninteresting quirks in the way the market operates.\u003cbr\u003e\u003cbr\u003eOne of the more interesting of these departures from efficiency involves changes in stock prices with\nrespect to the day of the week. Just as some people tend to favor one day over another, so does the stock\nmarket. As shown in Figure 1, from December 23, 1986 to January 11, 1989, stock price changes\noccurred according to a pattern in which Tuesdays and Wednesdays tended to give the best performance.\nPrices on those two days were up a significantly higher percentage of the time and yielded much better\nreturns on investment than the two runner-up days, Thursday and Friday.\u003cbr\u003e\u003cbr\u003eThe laggard, with an already established reputation in the financial media, was Monday. Monday was an\nup day less than 50% of the time during the two years and, largely as a result of the crash on Monday,\nOctober 19, 1987, the day had a substantial loss compared to the others.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133790482801,"sku":"\\V07\\C06\\DAILYST.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_71e554e9-3b3d-4b64-b637-9d32a7e6a4ea.jpg?v=1739652583"},{"product_id":"v07-c06-epoch-pdf","title":"V.7:6 (190-193): EPOCH by John Sweeney","description":"EPOCH\nby John Sweeney\u003cbr\u003e\u003cbr\u003eHaving recently gotten a handle on the natural order of prices (i.e., they are random, stationary and\ndependent), the next order of business has been to explore dependence. Naturally, traders are interested in\nthose forms of dependence which give us an edge in trading. Several forms come immediately to mind:\ncycles, trending, basing and congestion. Of these, MESA and EPOCH exploit the existence or\nnon-existence of short-term, cyclical components of a price series.\nMESA, an earlier product, will search through your prices trying to identify cyclical elements with\nfrequencies of 20 to 55 days. Given that result, it will then estimate and plot a two-week price forecast.\u003cbr\u003e\u003cbr\u003eMESA was well received, but needs regular usage before an analyst can become familiar with its\nstrengths and weaknesses. Its value could not really be nailed down because trading signals were always\ngiven in hindsight, and changed as future prices changed the optimal cycle and its half-cycle average. To\nboot, you could not tell MESA which cycle to use in its forecast. The result was the program's output was\nmore art than quantitative assessment.\u003cbr\u003e\u003cbr\u003eEPOCH overcomes these weaknesses. It allows you to specify any time period (or epoch) and it will\nevaluate any assumed cycle between 8 and 32 days in length. The program then creates a table showing\nthe number of trades, the profit and profit\/trade for that length. The results may also be graphed for the\nscreen or printer, large or small.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133790777713,"sku":"\\V07\\C06\\EPOCH.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_911dd2e3-dd64-432d-9df3-1f1fb83585ea.jpg?v=1739652586"},{"product_id":"v07-c06-largebl-pdf","title":"V.7:6 (165-167): Large block transactions by Arthur Merrill","description":"Large block transactions\nby Arthur Merrill\u003cbr\u003e\u003cbr\u003eHere is an indicator that reveals the direction of enthusiasm of the big operators. Are they reaching for\nstock, even at higher prices? Or, on the other hand are they eager to unload, even at lower prices? The big\noperators are usually the most informed traders; we should pay heed to their actions.\u003cbr\u003e\u003cbr\u003eThe source data for this indicator each week is a summary table in Barron's. All big trades on the New\nYork Stock exchange are noted, and the number of upticks, downticks and unchanged are counted and\nreported. The trades are separated into two categories: more than 100,000 shares and less than 100,000\nbut more than 50,000. A sale on an uptick is a sale at a price higher than the last trade; a sale on a\ndowntick is at a price lower than the previous trade.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133790810481,"sku":"\\V07\\C06\\LARGEBL.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_c9218823-39c9-4458-9ee4-792fe993de87.jpg?v=1739652588"},{"product_id":"v07-c06-orb-pdf","title":"V.7:6 (188-189): Opening Range Breakout Part 7 by Toby Crabel","description":"Opening Range Breakout\nPart 7\nby Toby Crabel\u003cbr\u003e\u003cbr\u003eBear hook is a day in which the open is below the previous day's low and the close is above the\nprevious day's close with a narrow range relative to the previous day (Figure 1). As implied by the name,\nthere is a tendency for prices following a bear hook pattern to move to the downside.\u003cbr\u003e\u003cbr\u003eFigure 2 tabulates how this downward tendency after the pattern manifests itself in different markets and\nwith a variety of opening range breakout (ORB) trades taken the day after the pattern appeared.\u003cbr\u003e\u003cbr\u003eFigure 3 charts the bear hook patterns for December T-bonds. Notice the price action on the day\nfollowing the patterns and the market's tendency to place the open on the high of the day.\u003cbr\u003e\u003cbr\u003eVery briefly, an ORB is a trade entered at a predetermined amount above or below the opening range (the\nrange of prices that occur in first 30 seconds to 5 minutes of trading). The predetermined amount, or\n\"stretch,\" is the 10-day average of the differences between the open for each day and the closest extreme\nto the open on each day.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133791039857,"sku":"\\V07\\C06\\ORB.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_4fcdff05-e09d-4261-a4d6-d13e2fdf121a.jpg?v=1739652590"}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/collections\/volume-7-1989-18.gif?v=1739676760","url":"https:\/\/shop.traders.com\/collections\/articles-volume-7.oembed","provider":"Stocks \u0026 Commodities","version":"1.0","type":"link"}