Volume 7 Article List

January 1989

Technical Index Measure Market Breadth

Advance-decline, high-low and volume combine to create a new market yardstick.
By William Mason; pages 9–12.

Into the Pit

Steel those nervesrelive one trader’s first day on the floor.
By Joseph Wilson; pages 13–15.

Logarithmic Point and Figure Charts

How logarithmic charts beat their arithmetic counterparts in detecting price formations.
By Luis Ballesca Loyo; pages 16–20.

Stock Hedge Portfolios: A Strategy For All Seasons

How to balance long and short stock for a 29%–40% annual return.
By Larry Christy; pages 21–25.

The Wall Street Week Index

Dissect the innards of the most accurate of 40 stock market indicators.
By Arthur A. Merrill; pages 26–27.

Options: Let Price Come to You

Why chasing price most often takes money out of your pocket.
By Jerry Kopf; pages 28–29.

Completing the DMI Rules

Complete Wilder’s DMI rules and test the accuracy of this system.
By Jim Summers; pages 30–34.

February 1989

Short Interest

How odd lot short sales indicate stock market turning points.
By Arthur A. Merrill; page 37.

Comparing Wave Predictions

A graphic look at where the two camps of Elliotticians would send the Dow Jones Industrial Average.
By Jack K. Hutson; page 39.

Creating Prices for System Testing

Build price data streams to test your trading systems.
By D. Howard Phillips; pages 40–42.

An Elliott Wave Perspective: DJIA 400 or 6000?

Elliott’s Rule of Equality demands a recount of the Supercycle’s fifth wave.
By Elliot Brenner; pages 43–46.

Opening Range Breakout, Part 4

Test results show how well inside days predict the next day’s trading opportunities.
By Toby Crabel; pages 47–49.

Trading and Scalping Techniques

The founder of Commodity Research Institute lays out time-tested techniques for off-floor traders.
By John Hill; pages 50–55.

Winning Parameters for Customized MACD

Delve into a strategy that issues buy/sell signals for a number of common stocks.
By John A. Narvarte; pages 53–55.

Individual Stocks and MACD

A variation of Moving Average Convergence-Divergence selects daily and weekly turning points.
By Thomas Aspray; pages 56–61.

Product review: N-Squared Analytic Software

Some formula generators just don’t get the respect they deserveand this one deserves it.
By John Sweeney; pages 62–66.

March 1989

Tactical Stock Trading

A numerical series that solves random walk to beat the markets.
By Peter Eliason; pages 69–72.

Analyzing Indicators with the Cells Method

How well will your technical indicator predict the markets? Test it with the cells method.
By David Aronson; pages 73–75.

Volume-Weighted RSI: Money Flow

A new indicator charts entry/exit points on the strength of money entering and leaving the market.
By Gene Quong and Avrum Soudack; pages 76–77.

Point and Figure Charts: An Overview

Work step-by-step through a time-honored charting method that has not lost its touch.
By Charles Idol; pages 78–81.

Variable Sensitivity Stochastics

Evaluate any index or data set for turning points over a range of sensitivities.
By William Mason; pages 82–85.

Moving Averages and Smoothing Filters

Simple vs. complex formulas which gives you the most effective results?
By John Ehlers; pages 87–90.

Velocity of the S&P 500

Are popular trading strategies destabilizing the stock market?
By Robert A. Wood; pages 91–95.

Testing Breakout Systems

A core strategy to keep you on the right side of the market.
By Steve Notis; pages 96–99.

Member Trading

Easy-to-access stock market statistics show whether the “smart money” is accumulating or distributing. By Arthur A. Merrill; page 100.

April 1989

Member and Public Short Selling

Who’s moving the stock market? Short sales clue you in to where the power is stored.
By Arthur Merrill; pages 103–105.

Point and Figure : Analysis and Projection, Part 2

Fundamental P&F patterns show you how to forecast price moves and profit potential.
By Charles Idol; pages 106–108.

Master Oscillator

Create a customized oscillator from you collection of favorites.
By William Mason; pages 109–111.

A Simple Cycle Finder

No computer handy? Yes, you can forecast highs and lows with just a pen and paper.
By Curtis McKallip Jr; pages 112–114.

Hines Ratio

Use option activity to measure investor sentiment for daily or weekly stock trading.
By Ray Hines; pages 115–118.

Opening Range Breakout, Part 5

Test how profitability increases when you trade the ORB after an NR4 pattern.
By Toby Crabel; pages 119–120.

Understanding Market Profile, Part 6

Tests reveal when range extensions and profitable intraday trading are most likely.
By Thomas P. Drinka and Stephen M. Ptasienski; pages 121–123.

Alpha-Beta Trend Following System, Version II

Finetune trading filters and trend channels with this enhanced QuickBASIC program.
By Anthony W. Warren PhD; pages 124–128.

Discipline in Trading

Take inventory of your behavior and turn around habits that get in your way.
By James Covington Bryce; page 131.

Cyclic Personalities

Under careful analysis, cyclic commodities reveal their true natures.
By John Ehlers; pages 132–134.

May 1989

A New Cycle Analysis Trading Technique

Day trade commodities with cycles that predict tomorrow’s market direction.
By Russell L. Miller; pages 137–139.

Public/Member Short Selling

Three short sales ratios say bullish is in for 1989.
By Arthur Merrill; pages 140–142.

Time, Price and Pattern

Elliott, Gann and Fibonacci create a three-dimensional trading plan for less risky profits.
By Robert Miner; pages 143–146.

An Advance/Decline Line for Commodities

Apply the stock market’s traditional breadth indicator to commodities to forecast tops and bottoms.
By Thom Hartle; pages 147–149.

Traditional Chart Analysis: A Neglected Tool?

Learn how to trade two classic chart patterns as they unfold in real-time.
By Thomas Aspray; pages 150–153.

Averaging Systems

Value vs. dollar averaging which strategy wins out? By
Charles Idol; pages 154–156.

Product review: DollarLink

Step inside a real-time analysis/reviewer says is tops.
By Rich Rosen; pages 157–158.

Product review: Market Forecaster

Check out econometrics on disk for stock and mutual fund traders.
By Mark Hallinan; pages 159–160.

Opening Range Breakout, Part 6

Two chart patterns probe better than one when it comes to pinpointing trending prices.
By Toby Crabel; pages 161–163.

June 1989

Large Block Transactions

Calculate this indicator and discover how much enthusiasm the big operators have for stocks.
By Arthur Merrill; pages 165–167.

The Secret of Trading Success: Commitment

Follow a three-step process to determine if you really want to succeed in the markets.
By Van K. Tharp; pages 168–170.

Daily Stock Tendencies

Yes, there is quantifiable evidence for Monday trading blues and mid-week euphoria.
By L.R. James; pages 171–173.

U.S. Treasury Auctions and Technical Analysis

Three methods to overcome the data gap in new debit issues.
By Gerald S. Celaya. 174–176.

Speeding Up the Oscillator

Feeling bogged down, waiting for your moving averages to cross? Here’s a way to jazz up their response time.
By Grady Garrett; pages 177–179.

Windows of Opportunity

Point and figure charts for commodities? Yes! Add Gann angles and day trading software to catch the most opportune signals.
By Douglas Arend; pages 180–184.

Simple Moving Average Crossover

A new systems section tests results of the oldest trading tools.
By Peter Aan; pages 185–187.

Opening Range Breakout, Part 7

Make downside profits when the bear hook pattern growls from you commodity charts.
By Toby Crabel; pages 188–189.

Review: Epoch

Use John Ehlers’ trading system to find and exploit market cycles.
By John Sweeney; pages 190–193.

Riding the Beast

A novice speculator finds that CDs don’t have the same kick after riding a commodity roller coaster.
By Jean Dilling; pages 194–198.

July 1989

Price Projections on Point and Figure Charts

Use this complete set of equations to project prices on arithmetic and logarithmic charts.
By Luis Ballesca Loyo; pages 201–202.

Locating Value with Auction Market Data

A new definition of value alerts traders to market changes. By Donald L. Jones; pages 203–208.

Opening Range Breakout, Part 8

Be ready for an uptrend when the bull hook price pattern appears.
By Toby Crabel; pages 209–210.

Watch the Fed!

Two Federal Reserve Board statistics give ominous signals for the 1989 stock market.
By Arthur Merrill; pages 211–213.

Regressions in Hard Commodities

Uncover some of the driving forces behind precious metals’ price variances.
By L.R. James; pages 214–216.

Product Review: System Writer Plus

When it comes to testing trading system quickly, this piece of software is an indispensable tool.
By Jim Summers, PhD; pages 217–219.

Phase Shifts

The 40.68-month cycle may have shifted. Here’s how to tell.
By Gary Zin; pages 220–223.

Volatility Analysis and Simulation Used in Tactical Trading

Volatility determines what’s hot and what’s not; simulation pinpoints profitable point spreads.
By Peter Eliason; pages 224–226.

What K-Wave?

The Kondratieff wave; economic phenomenon or statistical fiction?
By Jeff Walker; pages 227–239.

Volatility System

Is Wilder’s Volatility System for you? Check out the test results. By Peter Aan; pages 230–232.

Options Shooters vs. Spreaders

Generate regular profits like the pros by combining the best of both worlds opinion and math.
By Jerry Kopf; pages 233–234.

Product Review: Technician 5.0

A top-notch charting program complete with data service.
By Steve Notis; pages 235–236.

August 1989

A More Conservative Estimate of Risk

Mean or standard deviation? Is one a better measure of risk?
By Clifford J. Sherry, PhD; pages 239–240.

Tradeable Price Patterns

Use your computer power to determine when commodities have more than a 50–50 chance of moving profitably.
By Kent Calhoun; page 241.

Relative Strength Index

Tests reveal how RSI fares as an indicator of trend vs. overbought/oversold.
By Peter Aan; pages 243–245.

Financial Volume Index

Ease your selection of financials with an index that shows divergence.
By Patrick Cifaldi; pages 246–248.

Using MMI to Trade OEX

Catch short-term bounces in options with this new futures indicator.
By Dan Downing; pages 249–250.

Most Active Stocks

Daily newspaper data tunes into the speculative tone of the market.
By Arthur Merrill; pages 251–253.

Trading Commodity Spreads Mechanically

If a mechanical rule could be developed for spread trading, it could lead to a low-risk portfolio of spreads that provides a superior alternative to a portfolio of out-right futures positions. This author tests some rules and finds that rigid rules prove unprofitable.
By Louis Lukac and B. Wade Brorsen; pages 254–258.

Daily Stock Technician

An author finds that the Investor’s Daily is all you need to be a daily technician. This article shows you step-by-step how to look at charts.
By Thomas K. Lloyd; pages 259–262.

Point and Figure Analysis and Projection

Work step-by-step through the short- and long-term charts of two stock picks.
By Charles Idol; pages 263–266.

Fibonacci Profit Objectives

Three simple equations uncover logical profit targets.
By Joe DiNapoli; pages 267–268.

Product review: Accounting Software

Review five top-of-the-line systems to manage your accounts.
By Mike Takano; pages 269–272.

A Thing of Duty

Duty or passion? In either direction there is poetry in work.
By Sara Nuss-Galles; page 273.

September 1989

Trading T-bonds with Equivolume

Quickly decipher market contraction/expansion with this clean, 2-dimensional charting method.
By Thom Hartle; pages 275–277.

Ratio Accumulators

Pinpoint and work out the biases in ratio indicators.
By William Mason; pages 278–281.

Demand Oscillator Momentum

Offset the Demand Oscillator’s lag on the sell side with two momentums.
By Thomas Aspray; pages 282-285.

Scale-down Buying and Scale-up Selling

Get tactical with options: average your buys and sells, and don’t forget the stop.
By Jerry Kopf; pages 286–287.

Price Pattern Studies

Open-to-close price patterns reveal workable beginnings for trading system research.
By Toby Crabel; pages 288–291.

Mutual Fund Point & Figure

Do funds exhibit classic P&F patterns? Take a test drive.
By Charles Idol; pages 292–294.

Channel Breakout

The channel breakout system embodies a refined version of Richard Donchian’s “weekly rule” system formulated many years ago. If intraday stops are used to reverse positions, this system has the advantage of being able to participate in every well-defined major market move.
By Peter Aan; pages 295–297.

The McClellan Oscillator

This short-to-intermediate leading indicator picks tops and bottoms and forecasts a market peak.
By Richard Mogey; pages 298–300.

Volume Indices

Smooth the ARMS Index, modify it or use just a piece of it to call the stock market bearish or bullish.
By Arthur Merrill; pages 301–303.

Computer Spread Analysis

Integrate spreadsheets, charting programs and data services to calculate spreads.
By Jim Summers; pages 304–306.

Leading Indicators with Momentum

Customize indicators by tweaking momentum and filtering noise through moving averages.
By John Ehlers; pages 307–309.

Product Review: Master Chartist

Pop-up windows and a mouse make sophisticated real-time analysis fast and convenient.
By Steve Notis; pages 310–314.

Product Review: CompuTrac Makes Technical Analysis a SNAP!

A new module puts CompuTrac head to head with the best of TA software.
By Toby Crabel; pages 315–320.

October 1989

Do Funds Distort Price Movements?

Are technically oriented managers using their clout to move markets?
By Wade Brorsen and Scott H. Irwin; pages 323–325.

A Better way to Smooth Data

Moving averages are great, but numeric filters show clearer trends and fewer false signals.
By J.S. Payne, PhD; pages 326–330.

Christmas Tree Spread

How to work both the long and short sides of options.
By Jerry Kopf; pages 331–332.

Constructing an Efficient Short-term Timing Model

Forecast change in trend with two well-known ratios.
By Marcus Robinson; pages 333–335.

The Best Trading Indicator the Media

Does the 5th estate have a 6th sense? Consider how well the financial press performs as a market barometer.
By Grant Noble; pages 336–339.

Speculative Indicators

Monitor the two most volatile stock exchanges for warning sings.
By Arthur Merrill; pages 340–342.

Finding Patterns in Random Data

An author tests for statistical significance of historical patterns and whether they are different from patterns observed in random data, and finds that, often, they are not.
By Nelson Weiderman, PhD; pages 342–345.

Key Reversal Days

An author looks at three reversal patterns that have two things in common: a high that’s higher than the previous days high and a close that’s below yesterday’s close. The conclusion? Find another method of detecting market tops and bottoms.
By Peter Aan; pages 347–349.

Product Review: Market Timing System

Unverifiable data raises questions about undisclosed system.
By Vicki Parker Lee; pages 350–354.

Are You Piloting Your Trading with Safety?

Lessons from flight training keep this commodities broker flying high.
By Ana Maria Wilson; pages 355–356.

Product Review: The DownLoader 2.0

Don’t let compatibility problems bog you down in data drudgery.
By Steve Notis; pages 357–358.

Programming for a Global Perspective

Analyze U.S. contracts in foreign currency rates and indices.
By Charles Milmoe; pages 359–361.

Developing and Using Pattern Recognition

Retracements, trading ranges and breakouts yield consistently profitable stock market patterns.
By Tom Johnson and Market Boucher; pages 362–364.

Market Facilitation Index

The Market Facilitation Index is an objective means of measuring facilitation of trade, or how well the market is working. Use this indicator to obtain a realistic profile of the market at any given time.
By Charles F. Wright; pages 365–268.

Product Review: Option Evaluator

A basic package that’s easy to use.
By Hans Hannula; pages 369–371.

Trading Close-to-Close Patterns

Closing price sequences hold a key to next day price direction.
By Toby Crabel; pages 372–374.

Bi Signal Indicator

By Joseph Barics; pages 375–377.

Product Review: Livewire

Download stock data from your TV, with no monthly charges.
By Jim Rader; pages 378–379.

November 1989

Interview: Shelly Natenberg: Trader and Teacher

Teaching technical theory isn’t complete until this floor trader’s pupils understand not only what a trading model can, but what it can’t accomplish.
By John Sweeney; pages 381–384.

Overbought and Oversold Indicator

A simple short-term oscillator identifies the market’s current potential for higher or lower prices.
By Thom Hartle; pages 385–386.

Inside Day Patterns in the S&P

Inside day chart formations give a strong clue to the market’s next-day direction.
By Toby Crabel; pages 387–390.

Chaos Theory and Market Behavior

Order masquerading as disorder a sweeping revolution in the sciences is bringing to light the patterns underlying random behavior.
By Bernd Anders; pages 391–395.

Fundamentals Behind Technical Analysis

Yes, the dynamics of supply, demand, equilibrium and elasticity taught in ECON 101 do drive market patterns.
By Curtis McKallip; pages 396–399.

Neural Networks: A Trading Perspective

A step beyond artificial intelligence, neural networks promise a new way to forecast the future by learning from the past.
By Carol H. Halquist and George F. Schmoll, II; pages 400–404.

Trading Windows for Technical Indicators

Discern the randomness of time periods to make your technical tools more productive.
By Frank Tarkany; pages 405–410.

Setting Stops A New Approach

Unfortunately, picking entry points typically gets more attention than picking exiting points, when, actually, skillfully selected exit points can make the difference between a profit and a loss.
By John Ehlers; pages 408–410.

Parabolic Stop/Reversal

Testing bears out that accolades are due this trailing stop system.
By Peter Aan; pages 411–413.

Market Letter Sentiment

Research shows it pays to listen to what the advisors are saying then do the opposite.
By Arthur Merrill; pages 414–415.

Revamping Mediocre Buy-Write Strategies

Buy-writes are fine for sideways markets but put-writes participate in trending markets.
By Jerry Kopf; pages 416–417.

Optimal Parameter Selection

A new testing method identifies system parameters that hang on to profits as the market shifts.
By Kent Calhoun; pages 418–421.

December 1989

Interview: Wizards Minds Over Markets

An interview with Jack Schwager on what makes the most successful traders tick.
By Van K. Tharp; pages 423–427.

Tactical Stock Trading

How to use tactical stock trading to save profits on a downtrend without dampening out the uptrend ride.
By Hugh Logan; pages 428–430.

Weekly High/Low Moving Average

A seldom-used average that profits from every well-defined trend.
By Peter Aan; pages 431–432.

Do Stock Prices Reflect Fibonacci Ratios?

Does the Golden Ratio really show up in stock market data or is it all wishful thinking?
By Herbert H.J. Riedel; pages 433–436.

Product Review: ELLI-VOL II

A volume-driven method for timing the market.
By James S. Gould, PhD; page 437.

Trading Options Volatility

Rather than focus on market direction, use hedging strategies that work off volatility.
By Andrew J. Sterge; pages 438–441.

Product Review: Arms Equivolume Charting System

A one-of-a-kind charting program with unique indicators.
By James S. Gould, PhD; pages 442–444.

Beat the Market with No-load Mutual Funds

Systematically build a portfolio of stock funds that beats the market with a minimum of turnover.
By Gary Zin, PhD; page 445–448.

Gann Analysis on Point and Figure Charts

Simple-to-draw Gann Lines enhance P&F’s ability to track large moves and impending reversals.
By Douglas Arend; page 449–452.

Volume Percentage Ratio

Anticipate cycle tops and bottoms with a set of volume indicators.
By Mike Burk; page 453–455.

What Volume Is It?

The creator of Equivolume charting introduces his basic concepts and a new indicator.
By Richard W. Arms, Jr; page 456–457.

How to Evaluate a Commodity Trading System

Which calculation tells you whether a system will send you into bliss or give you a nervous breakdown? PTMED. Read on!
By Kent Calhoun; pages 458–459.

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