Dancing with the Trend

Zahorchak Measure

by Greg Morris

I'm quite certain the title of this article caused curiosity.  I often use the word Measure instead of Indicator when referring to indicators that are used to measure something, such as a trend, a level of volatility, etc.  I have mentioned Michael Zahorchak before.  His book, “The Art of Low Risk Investing,” was THE book that hooked me on technical analysis in the 1970s, recommended by good friend Tom Zellner.  While I had read the early classics, it was this book that made it all credible.  It has been out of print for decades but I see it offered occasionally Read More 

Dancing with the Trend

Advance Decline Difference Indicators (Chapter 4, Part 2 - CGMBI)

by Greg Morris

If you recall from the earlier article on Chapter 4, it is being presented in two parts because there are almost 50 charts in that chapter.  Chapter 4, Part 1 is here.  I selected the following indicators for this article, you can see by the Chart numbers below each chart that there are many more that will be in the book. Advance Decline Index – Eakle Author/Creator: Eakle Data components required: Advances (A), Declines (D). Description: This is a smoothed rate of change of the Advance Decline Read More 

Dancing with the Trend

Driving vs. Investing

by Greg Morris

Avoiding Potholes on the Investment Highway While driving on a busy highway the other day it occurred to me that there are many similarities between driving an automobile and making investment decisions.  I am a very careful driver and believe it or not have had only 2-3 flat tires since 1963.  I think that is because I pay great attention to the road and avoid potholes, debris, etc. and rarely drive on the shoulder as that is where all the bad stuff accumulates.  And don’t forget the huge amount of luck involved.  Avoiding potholes (in this case, anything that can Read More 

Dancing with the Trend

Questions from Readers

by Greg Morris

Over the past 6-7 months that I have been writing for StockCharts.com many truly great questions have been posed in the Comments area.  I have questioned my policy of not participating in the Comments area a number of times because these questions and answers would benefit everyone or at least many.  Therefore, I have decided that following each calendar quarter, I will review all the comments that have appropriate questions and pick approximately the best 10 to respond to in an article artfully entitled Questions from Readers.  An “appropriate” question is a polite way of Read More