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Chart Nexus Addons Manual
Chart Nexus Addons Manual
User Manual
Version3.0.6
Prepared by
FiNEX Solutions
•••
January 14, 2010
Trademarks
ChartNexus is a registered trademark; XPertTrader, XPertTrader TestDrive, XPert-
Trader Indicators, XPertTrader Candlesticks, ChartMaker, IndexCreator are trademarks
of FiNEX Solutions and may not be used without written permission. All other trade-
marks are the property of their respective owners.
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Table of Contents
1 Introduction 1
1.1 What Are Add-ons ? . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.2 Add-ons Available . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.3 Benefits of Using Add-ons . . . . . . . . . . . . . . . . . . . . . . . 2
1.4 How To Subscribe ? . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.5 Subscription Information . . . . . . . . . . . . . . . . . . . . . . . . 2
1.5.1 Checking subscription information . . . . . . . . . . . . . . . 3
1.5.2 Updating subscription information . . . . . . . . . . . . . . . 3
1.5.3 Renewing subscription . . . . . . . . . . . . . . . . . . . . . 3
2 ChartNexus XPertTrader 5
2.1 What Is ChartNexus XPertTrader ? . . . . . . . . . . . . . . . . . . . 5
2.1.1 Components of ChartNexus XPertTrader . . . . . . . . . . . 5
2.1.2 Key features of ChartNexus XPertTrader . . . . . . . . . . . 5
2.2 Why Use ChartNexus XPertTrader ? . . . . . . . . . . . . . . . . . . 6
2.3 Starting ChartNexus XPertTrader . . . . . . . . . . . . . . . . . . . . 6
2.4 Rules Composer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.4.1 Types of rules . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2.4.2 Changing rules parameters . . . . . . . . . . . . . . . . . . . 9
2.4.3 Importing rules . . . . . . . . . . . . . . . . . . . . . . . . . 10
2.5 Stock Screener . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
2.5.1 Changing Stock Screener settings . . . . . . . . . . . . . . . 15
2.5.2 Viewing results . . . . . . . . . . . . . . . . . . . . . . . . . 17
ii
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TABLE OF CONTENTS iii
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TABLE OF CONTENTS iv
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TABLE OF CONTENTS v
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TABLE OF CONTENTS vi
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TABLE OF CONTENTS vii
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TABLE OF CONTENTS viii
6 ChartMaker 169
6.1 Features Of ChartMaker . . . . . . . . . . . . . . . . . . . . . . . . 170
6.2 Customising Color Scheme . . . . . . . . . . . . . . . . . . . . . . . 170
6.3 Adding Indicators to Charts . . . . . . . . . . . . . . . . . . . . . . . 171
6.4 Watermark . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
A Glossary 177
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Chapter 1
Introduction
Add-ons are extra features or functions which are made available to extend the power
of ChartNexus.
These Add-ons can be subscribed through our website http://www.chartnexus.
com/products/subscribe.php and they are available for subscription on 2 types of
plan :
• 6 months plan
• 12 months plan
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1.3. Benefits of Using Add-ons 2
To check your subscription information, you can access it through the Menu Bar
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1.5. Subscription Information 3
The subscription information window will contains about the details of your active
subscription.
In some cases, e.g. you may have just paid for subscription to any of the add on
modules. So the subscription information may not be reflected on the subscription
window immediately. To update your subscription manually (which usually you don’t
have to), click on the Update button and the latest subscription information will be
retrieved from our server.
ChartNexus will automatically prompt you when any of your modules are nearing ex-
piry. To renew your subscription, click on the Renew button.
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1.5. Subscription Information 4
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Chapter 2
ChartNexus XPertTrader
ChartNexus XPertTrader allows you to create rules and then use it to perform back-
testing and screening to find winning stocks or uncover hidden gem stocks easily and
efficiently.
It consists of :
a) Rules Composer (RC) : Allows you to create single or multiple rules and save/share
them.
b) Stock Screener (SS) : Screen using created rules to find hidden gem stocks.
c) Backtester (BT) : Use created rules to validate your trading strategy to create
your ultimate trading system by using historical or past data.
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2.2. Why Use ChartNexus XPertTrader ? 6
To start ChartNexus XPertTrader, click on the XP icon located at the Menu Bar (see
Figure 2.1). You will be presented with the ChartNexus XPertTrader main window in
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2.4. Rules Composer 7
Figure 2.2.:
Referring to Figure 2.2, Rules Composer (RC) is the default window/tab you will see
when you start ChartNexus XPertTrader.
Correspondingly, the numbered regions represent:
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2.4. Rules Composer 8
3. Parameter window. It shows the default value of the rules’ parameters. User can
change the rules’ parameters here.
4. Buttons to add/remove rules and mix and match them with logical operators
AND/OR.
There are three basic sets of rules that you can use to form your own trading strategy:
After using any (either individually or in combination) of the rules listed above, you can
use it for backtesting to test out your trading ideas and to use it to screen for potential
hidden gem stocks.
NOTE: Indicators and Candlesticks rules are available for subscription separately or
as a bundle. General rules are made available with any of the two subscription. See
http://www.chartnexus.com/products/addons.php for more information.
We have set up a platform called XPertTrader Library XPL to facilitate the sharing and
exchanging of rules created by users or us. Besides that, you can find out more tips and
information on the various rules or aspects pertaining to XPertTrader at
http://www.chartnexus.com/support/docswiki/index.php/XPL
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2.4. Rules Composer 9
Each rule in Rules Composer has its own set of parameters. All rules in ChartNexus
come with a set of default parameters but you can edit and change them to your own
value. Figure 2.3 illustrates simple steps to change a rule’s parameters.
1. Click on the rule that you want to change to activate the Parameter window as
shown in Figure 2.3 (2).
2. Double click on the specific parameter to edit it and change to the value that you
want.
3. Save the changed rule to any name that you want. The saved rule will contain
the changed value.
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2.4. Rules Composer 10
Often, we want to try out rules that others have created or rules that you exchanged
with others. With ChartNexus XPertTrader, you can easily try out the rules created by
others by downloading the rules from XPertTrader Library (XPL).
2) Click on the Desktop icon if you want to save the rule on to the Desktop (See
Figure 2.5).
3) Before saving, under the save as type, click on All Files and then click on the
Save button to save the rule to your Desktop (See Figure 2.6).
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2.4. Rules Composer 11
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2.4. Rules Composer 12
4) Next, start ChartNexus (if you have not). In XPertTrader, click on the Import
Rule button (See Figure 2.7).
Figure 2.7: Click on Import Rule button to import the saved rule.
5) You will be presented with the following dialog box. Click on the Desktop icon
(assuming that you save the rule on to the Desktop in Step 2. Next, double click
on the rule that we have saved earlier.
6) Once successfully imported the rule, a pop up will indicate that the rule has been
saved successfully. Click on the OK button to hide the message.
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2.4. Rules Composer 13
7) You will notice that the newly imported rule is now loaded into the Rules Com-
poser of XPertTrader and you can see the rule as shown. You have successfully
imported a rule !
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2.5. Stock Screener 14
Stock Screener (SS) lets you scan the stock market thoroughly with ease using the rules
composed in Rules Composer. Figure 2.11 shows a screenshot of the Stock Screener.
1. Rules to use for screening. The rules are to be created using the Rules Composer.
2. Screening period where the rules selected in (1) will be applied to.
3. Screening scope by market, market sector or user’s defined watchlist.
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2.5. Stock Screener 15
You can fine-tune your screening rules by changing some of these parameters.
Click on the Configure button in Stock Screener and you will be able to configure the
following settings:
General settings
The General Settings window is shown in Figure 2.12.
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2.5. Stock Screener 16
a) Price constraints
Screen for stocks which have prices within the specified minimum and maximum
price range.
b) Volume Constraints
Screen for stocks which average the specified volume over a particular period.
Market trend
The Market Trend window is shown in Figure 2.13.
By clicking on the relevant checkbox, the user may specify to screen or backtest only
stocks using any of the following conditions:
a) Uptrend.
b) Downtrend.
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2.6. Backtester 17
c) Range-bound.
When the screening process is completed, the results will be displayed in the table
shown in Figure 2.11(7).
Double click on the stock name (highlighted in blue) to view the chart with the rules
indicated on the chart.
To minimize XPertTrader so that you can view the results on the chart without hin-
drance, click on the Minimize button, refer to Figure 2.14(8).
The screened results can be saved to your computer as text file. Click on the Save
button (see Figure 2.11(9)).
The output options include:
a) Save rules
2.6 Backtester
Backtester(BT) allows you to simulate the set of rules created in Rules Composer based
on historical market data to test out your trading ideas before actually applying them
for future real trades.
After backtesting, if the return on capital is not satisfactory, you can refine the set of
rules by going back to the Rules Composer to change the rules parameters before using
the BT again to test. You can reiterate through this multiple times until you are satisfied
with your trading strategies.
Let’s examine the functions available in Backtester in Figure 2.14:
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2.6. Backtester 18
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2.6. Backtester 19
With ChartNexus XPertTrader, you can build and fine-tune trading strategies that mir-
ror your own investment behavior and risk profile. You can do this fine-tuning and
tweaking by changing some of these parameters.
Click on the Configure button in Backtester to configure the following five classes of
settings:
General settings
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2.6. Backtester 20
a) Price constraints
Test on stocks with prices falling within the specified minimum and maximum
price range.
b) Volume constraints
Test on stocks which average the specified volume over a particular period.
c) Bid/Lot size
This specifies the minimum allowable bid/lot size of shares.
d) Buy/Sell price trigger
If set to Close price of triggering day, Backtester will take the trade price at the
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2.6. Backtester 21
close price. If set to Open price of next day, Backtester will take the trade price
on the next day’s open price.
Market trend
By clicking on the relevant checkbox, you can specify to backtest stocks using any of
the following conditions:
a) Uptrend.
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2.6. Backtester 22
b) Downtrend.
c) Range-bound.
NOTE: Stock Screener and Backtester each has its own Market Trend settings. So
changing the settings values in Stock Screener will not affect the values in Backtester
and vice versa.
Capital allocation
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2.6. Backtester 23
a) Equal weightage
The amount of available capital is divided equally among all the stocks triggered.
b) Order of appearance
The amount of available capital is used to buy the stocks that are first triggered
and returned.
NOTE: If the checkbox next to Profits Allocation is checked, the profit obtained from
earlier trades will be used as part of the capital for future trades.
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2.6. Backtester 24
You can also configure your capital allocation by changing the settings in Capital Allo-
cated Per Stock and Maximum Numbers Of Shares Purchase Per Stock under Capital
Allocation tab.
Portfolio strategy
The Portfolio Strategy window is shown in Figure 2.18. You can set your portfolio
preferences (long/short) and maximum number of opened positions in this window.
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2.6. Backtester 25
Stops
The Stops window is shown in Figure 2.19. Some investors have their own profit
taking and stop loss strategies independent to technical indicators. ChartNexus has
incorporated these settings in Backtester to allow you to decide when to exit from
winning positions or losing positions.
When the backtesting process is completed, the results will be displayed in the table
shown in Figure 2.14(8).
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2.6. Backtester 26
Double click on the item in Triggered Rules column, and you can see the details of the
triggered rules including the dates and the rules triggered.
Double click on the stock name (highlighted in blue) to view the chart with the rules
indicated on the chart.
To minimize XPertTrader so that you can view the results on the chart without hin-
drance, click on the Minimize button, refer to Figure 2.14(10).
To view the performance statistics of the backtesting (based on the rules that you have
selected), click on the Statistics button (see Figure 2.14(9)) to view the performance
statistics of your backtested rules (see Figure 2.20).
Figure 2.20: Performance statistics table to show how the tested rule(s) have fared.
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2.6. Backtester 27
a) Initial capital
The initial capital investment for the portfolio.
b) Cash on hand
The amount of money currently not invested.
c) Final capital (all positions closed)
The amount of money that you have now after closing all the positions (i.e. sell
all the stocks that are long (bought) and/or buy all the stocks that are short (sold)).
p) Largest profit
The largest amount of money gained in a profitable trade.
q) Smallest profit
The smallest amount of money gained in a profitable trade.
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2.6. Backtester 28
The backtested results can be saved to your computer as text file. Click on the Save
button (see Figure 2.14(11)).
The output options include:
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2.6. Backtester 29
a) Save rules
b) Save rules and results
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Chapter 3
ChartNexus XPertTrader
Parameters Explained
3.1 Overview
30
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3.2. General Rules 31
Parameters available:
• Fib level 1(%) - One of the three Fibonacci levels for price trigger
• Fib level 2(%) - One of the three Fibonacci levels for price trigger
• Fib level 3(%) - One of the three Fibonacci levels for price trigger
• Intraday/Close - if Intraday is selected, high and low price will be used for
calculation of high peak and low peak. Otherwise if Close is chosen, only the
close price will be used
• Rule type - This parameter controls the different intervals: daily (default), weekly
or monthly. This is similar to the concept as viewing your chart in daily, weekly
or monthly view. E.g. by setting a rule type to daily, the system will screen for
patterns that match on a daily basis
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3.2. General Rules 32
• Data type - This parameter is ONLY applicable when you set the rule type to
WEEKLY or MONTHLY There are two data settings available:
(1) Completed
(2) Progressive
• To illustrate, assume the following
a) today is 28th June 2007, Thursday, 8pm after market closed
b) first trading of the week is Monday
Parameters available:
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3.2. General Rules 33
Parameters available:
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3.2. General Rules 34
Parameters available:
• t - the period to be used for locating the ’historical high’. If t is larger than the
available data, the available data will be used
• x - the maximum percentage above the ’historical high’ before price trigger. If
both x and y are set to 0, then new historical high is to be found
• y - the maximum percentage below the ’historical high’ before price trigger. If
both x and y are set to 0, then new historical high is to be found
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3.2. General Rules 35
Parameters available:
• t - the number of periods used for finding historical low. If t is bigger than total
available periods, total available period will be used
• x - the maximum percentage above the ’historical low’ before price trigger. If
both x and y are set to 0, then new historical low is to be found
• y - the maximum percentage below the ’historical low’ before price trigger. If
both x and y are set to 0, then new historical low is to be found
• Intraday/Close - if Intraday, low price will be used. if Close, close price will be
used
• Rule type - please refer to 3.2.1 for details
• Data type - please refer to 3.2.1 for details
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3.2. General Rules 36
Parameters available:
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3.2. General Rules 37
Parameters available:
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3.2. General Rules 38
Parameters available:
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3.2. General Rules 39
Parameters available:
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3.2. General Rules 40
Parameters available:
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3.3. Accumulation/Distribution Line 41
Parameters available:
• Max Divergence Period - the maximum duration where the divergence occurs
• Min Divergence Period - the minimum duration where the divergence occurs
• Min Overlap Length - the minimum number of overlapping periods during
which price and Acc/Dis diverge
• Price Slope - the minimum slope of the moving average of the price
• Acc/Dis Slope - the minimum slope of the moving average of Acc/Dis
• Price MA Period - the period used for the moving average calculation of the
price
• Acc/Dis MA Period - the period used for the moving average calculation of the
Acc/Dis
• Acc/Dis On Right - if value is set to ’yes’, only divergences with Acc/Dis slope
on the right side of price slope are triggered.
• Rule type - please refer to 3.2.1 for details
• Data type - please refer to 3.2.1 for details
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3.3. Accumulation/Distribution Line 42
Parameters available:
• Max Convergence Period - the maximum duration where the convergence oc-
curs
• Min Convergence Period - the minimum duration where the convergence oc-
curs
• Min Overlap Length - the minimum number of overlapping periods during
which price and Acc/Dis converge
• Price Slope - the minimum slope of the moving average of the price
• Acc/Dis Slope - the minimum slope of the moving average of Acc/Dis
• Price MA Period - the period used for the moving average calculation of the
price
• Acc/Dis MA Period - the period used for the moving average calculation of the
Acc/Dis
• Acc/Dis On Right - if value is set to ’yes’, only convergence with Acc/Dis slope
on the right side of price slope are triggered.
• Rule type - please refer to 3.2.1 for details
• Data type - please refer to 3.2.1 for details
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3.3. Accumulation/Distribution Line 43
Parameters available:
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3.4. Average Directional index (ADX) 44
Parameters available:
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3.4. Average Directional index (ADX) 45
Parameters available:
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3.4. Average Directional index (ADX) 46
Parameters available:
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3.4. Average Directional index (ADX) 47
Parameters available:
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3.4. Average Directional index (ADX) 48
Parameters available:
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3.4. Average Directional index (ADX) 49
Parameters available:
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3.4. Average Directional index (ADX) 50
Parameters available:
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3.4. Average Directional index (ADX) 51
Parameters available:
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3.4. Average Directional index (ADX) 52
Parameters available:
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3.4. Average Directional index (ADX) 53
Parameters available:
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3.4. Average Directional index (ADX) 54
Parameters available:
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3.4. Average Directional index (ADX) 55
Parameters available:
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3.5. Bollinger Bands 56
Parameters available:
• Period - the number of time periods for calculation of the moving average
• Std Deviation - Distance of the lower and upper bands from the moving average
line
• Rule type - please refer to 3.2.1 for details
• Data type - please refer to 3.2.1 for details
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3.5. Bollinger Bands 57
Parameters available:
• Period - the number of time periods for calculation of the moving average
• Std Deviation - Distance of the lower and upper bands from the moving average
line
• Rule type - please refer to 3.2.1 for details
• Data type - please refer to 3.2.1 for details
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3.5. Bollinger Bands 58
Figure 3.28: Bollinger Bands - Price Touched Band And Rebounded/Retreated From
Band.
Parameters available:
• Period - the number of time periods for calculation of the moving average
• Std Deviation - Distance of the lower and upper bands from the moving average
line
• x(%) - the amount(%) that price rebounds(buy)/retreats(sell) from band
• x Margin(%) - If value set to ’1’ means price rebounded(buy)/retreated(sell)
from band within x +/- 1%
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3.5. Bollinger Bands 59
Parameters available:
• Period - the number of time periods for calculation of the moving average
• Std Deviation - Distance of the lower and upper bands from the moving average
line
• p(%) - the maximum percentage difference between upper and lower bands
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3.6. Chaikin Money Flow (CMF) 60
Parameters available:
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3.6. Chaikin Money Flow (CMF) 61
Parameters available:
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3.6. Chaikin Money Flow (CMF) 62
Parameters available:
• Max Divergence Period - the maximum duration where the divergence occurs
• Min Divergence Period - the minimum duration where the divergence occurs
• Min Overlap Length - the minimum number of overlapping periods during
which price and CMF diverge
• Price Slope - the minimum slope of the moving average of the price
• CMF Slope - the minimum slope of the moving average of CMF
• Price MA Period - the period used for the moving average calculation of the
price
• CMF MA Period - the period used for the moving average calculation of the
CMF
• CMF On Right - if value is set to ’yes’, only divergences with CMF slope on
the right side of price slope are triggered
• CMF Period - period used for the calculation of CMF
• Rule type - please refer to 3.2.1 for details
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3.6. Chaikin Money Flow (CMF) 63
Parameters available:
• Max Convergence Period - the maximum duration where the convergence oc-
curs
• Min Convergence Period - the minimum duration where the convergence oc-
curs
• Min Overlap Length - the minimum number of overlapping periods during
which price and CMF converge
• Price Slope - the minimum slope of the moving average of the price
• CMF Slope - the minimum slope of the moving average of CMF
• Price MA Period - the period used for the moving average calculation of the
price
• CMF MA Period - the period used for the moving average calculation of the
CMF
• CMF On Right - if value is set to ’yes’, only convergence with CMF slope on
the right side of price slope are triggered
• CMF Period - period used for the calculation of CMF
• Rule type - please refer to 3.2.1 for details
• Data type - please refer to 3.2.1 for details
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3.6. Chaikin Money Flow (CMF) 64
Parameters available:
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3.7. Commodity Channel Index (CCI) 65
Parameters available:
• t - the maximum number of periods for CCI to rise by x above +100(sell) or fall
by x below -100(buy)
• Constant - the value used in the calculation of CCI
• Rule type - please refer to 3.2.1 for details
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3.7. Commodity Channel Index (CCI) 66
Parameters available:
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3.7. Commodity Channel Index (CCI) 67
Parameters available:
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3.7. Commodity Channel Index (CCI) 68
• Buy - CCI crosses back -100 from low in the region below -100
• Sell - CCI crosses back +100 from high in the region above +100
Parameters available:
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3.8. Force Index 69
Parameters available:
• MA Period - the period used for the moving average calculation of the Force
Index
• Exponential - Select yes to use exponential moving average otherwise use sim-
ple moving average
• t1 - the periods that moving average of Force Index is below Center Line
• t2 - the maximum duration within which x is reached
• x - the minimum distance between Center Line and moving average of Force
Index after the crossover
• Rule Type - please refer to 3.2.1 for details
• Data Type - please refer to 3.2.1 for details
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3.8. Force Index 70
Parameters available:
• MA Period - the period used for the moving average calculation of the Force
Index
• Exponential - Select yes to use exponential moving average otherwise use sim-
ple moving average
• t1 - the periods that moving average of Force Index is above Center Line
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3.8. Force Index 71
Parameters available:
• Max Divergence Period - the maximum duration where the divergence occurs
• Min Divergence Period - the minimum duration where the divergence occurs
• Min Overlap Length - minimum number of overlapping periods during which
price and Force Index converge
• Price Slope - the minimum slope of the moving average of the price
• Force Index Slope - the minimum slope of the moving average of Force Index
• Price MA Period - the period used for the moving average calculation of the
price
• Force Index MA Period - the period used for the moving average calculation of
the Force Index
• Force Index On Right - if value is set to yes, only convergence with Force Index
slope on the right side of price slope are triggered
• Rule Type - please refer to 3.2.1 for details
• Data Type - please refer to 3.2.1 for details
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3.8. Force Index 72
Parameters available:
• Max Convergence Period - the maximum duration where the convergence oc-
curs
• Min Convergence Period - the minimum duration where the convergence oc-
curs
• Price MA Period - the period used for the moving average calculation of the
price
• Force Index MA Period - the period used for the moving average calculation of
the price
• Force Index On Right -
• Rule Type - please refer to 3.2.1 for details
• Data Type - please refer to 3.2.1 for details
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3.9. Guppy Multiple Moving Average (GMMA) 73
Parameters available:
• Black Window - the duration where the EMA lines may cross many times with-
out affecting the triggering of the stock
• t1 - the number of periods that the EMA lines must not cross before the Black
Window
• t2 - the number of periods that the EMA lines must not cross after the Black
Window
• Rule type - please refer to 3.2.1 for details
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3.9. Guppy Multiple Moving Average (GMMA) 74
• Buy - GMMA shows trend is bullish with short- over long-term EMAs
• Sell - GMMA shows trend is bearish with long- over short-term EMAs
Parameters available:
• d - the number of periods where the EMA lines must not cross each other
• Rule type - please refer to 3.2.1 for details
• Data type - please refer to 3.2.1 for details
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3.10. IchiMokuKonkuHyo 75
3.10 IchiMokuKonkuHyo
Parameters available:
• Span B Period - the number of span B periods used in the calculation of Cloud
• Black Window - the duration where the base line and conversion line may cross
many times without affecting the triggering of the stock
• t1 - the minimum number of periods that the base line and conversion line did
not cross before the Black Window
• t2 - the minimum number of periods that the base line and conversion line did
not cross after the Black Window
• Rule type - please refer to 3.2.1 for details
• Data type - please refer to 3.2.1 for details
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3.10. IchiMokuKonkuHyo 76
Parameters available:
• Span B Period - the number of span B periods used in the calculation of Cloud
• Line - conversion/base line
• Position - below/inside/above cloud
• Rule type - please refer to 3.2.1 for details
• Data type - please refer to 3.2.1 for details
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3.11. MA Envelope 77
3.11 MA Envelope
Parameters available:
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3.11. MA Envelope 78
Parameters available:
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3.11. MA Envelope 79
Parameters available:
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3.12. MACD 80
3.12 MACD
Parameters available:
• Short Period - the number of periods used for the period of the short-term mov-
ing average in the MACD calculation
• Long Period - the number of periods used for the period of the long-term moving
average in the MACD calculation
• Signal Period - the number of periods used for the period of the signal line
• Rule type - please refer to 3.2.1 for details
• Data type - please refer to 3.2.1 for details
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3.12. MACD 81
Parameters available:
• Short Period - the number of periods used for the period of the short-term mov-
ing average in the MACD calculation
• Long Period - the number of periods used for the period of the long-term moving
average in the MACD calculation
• Signal Period - the number of periods used for EMA calculation of MACD
which constitutes the signal line
• x(%) - the minimum distance between the MACD line and the signal line item
t- the maximum number of periods that x occurs
• Rule type - please refer to 3.2.1 for details
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3.12. MACD 82
the crossing of the faster MACD line to its slower MACD line as strength in momentum
(rate of change) of recent price action. The concept is similar to that of Dual MA
crossover but the focus is on rate of change in price rather than the movement of price
itself.
Setting for x
Since x is the minimum distance between MACD and the signal line, a small x would
therefore returns you “weak” triggers or triggers with high possibility of whipsaws
(refer to figure below). You want to set a larger value of x which can be interpret as
stronger crossover signal. Also, settings for x and t work closely together. For example,
you can set a higher x with shorter t to screen for signal with stronger momentum.
Setting for t
t can also act as a confirmation of the MACD crossover to avoid screening noisy
crossovers especially when you set a low x.
Parameters available:
• Max Divergence Period - the maximum duration where the divergence occurs
• Min Divergence Period - the minimum duration where the divergence occurs
• Min Overlap Length - the minimum number of overlapping periods during
which price and MACD converge
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3.12. MACD 83
• Price Slope - the minimum slope of the moving average of the price
• MACD Slope - the minimum slope of the moving average of MACD
• Price MA Period - the period used for the moving average calculation of the
price
• MACD MA Period - the period used for the moving average calculation of the
MACD
• MACD On Right - if value is set to ’yes’, only divergences with MACD slope
on the right side of price slope are triggered
• MACD Short Period - the number of periods used for the period of the short-
term moving average in the MACD calculation
• MACD Long Period - the number of periods used for the period of the long-term
moving average in the MACD calculation
• MACD Signal Period - the number of periods used for EMA calculation of
MACD which constitutes the signal line
• Rule type - please refer to 3.2.1 for details
• Data type - please refer to 3.2.1 for details
Parameters available:
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3.12. MACD 84
• Max Convergence Period - the maximum duration where the convergence oc-
curs
• Min Convergence Period - the minimum duration where the convergence oc-
curs
• Min Overlap Length - the minimum number of overlapping periods during
which price and MACD converge
• Price Slope - the minimum slope of the moving average of the price
• MACD Slope - the minimum slope of the moving average of MACD
• Price MA Period - the period used for the moving average calculation of the
price
• MACD MA Period - the period used for the moving average calculation of the
MACD
• MACD On Right - if value is set to ’yes’, only convergence with MACD slope
on the right side of price slope are triggered
• MACD Short Period - the number of periods used for the period of the short-
term moving average in the MACD calculation
• MACD Long Period - the number of periods used for the period of the long-term
moving average in the MACD calculation
• MACD Signal Period - the number of periods used for EMA calculation of
MACD which constitutes the signal line
• Rule type - please refer to 3.2.1 for details
• Data type - please refer to 3.2.1 for details
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3.12. MACD 85
Parameters available:
• Buy - The current bar in MACD histogram is higher after successive lower bars
• Sell - The current bar in MACD histogram is lower after successive higher bars
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3.12. MACD 86
Parameters available:
• Short Period - the number of periods used for the period of the short-term mov-
ing average in the MACD calculation
• Long Period - the number of periods used for the period of the long-term moving
average in the MACD calculation
• Signal Period - the number of periods used for EMA calculation of MACD
which constitutes the signal line
• r - number of consecutive red bars before(buy)/after(sell) number of consecutive
green bars
• g - number of consecutive green bars after(buy)/before(sell) number of consecu-
tive red bars
• Rule type - please refer to 3.2.1 for details
• Data type - please refer to 3.2.1 for details
Parameters available:
• Short Period - the number of periods used for the period of the short-term mov-
ing average in the MACD calculation
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3.12. MACD 87
• Long Period - the number of periods used for the period of the long-term moving
average in the MACD calculation
• Signal Period - the number of periods used for EMA calculation of MACD
which constitutes the signal line
• m - MACD is in positive region if m=1, negative region if m=0
• Rule type - please refer to 3.2.1 for details
• Data type - please refer to 3.2.1 for details
Parameters available:
• Short Period - the number of periods used for the period of the short-term mov-
ing average in the MACD calculation
• Long Period - the number of periods used for the period of the long-term moving
average in the MACD calculation
• Signal Period - the number of periods used for EMA calculation of MACD
which constitutes the signal line
• Signal Line - signal line is below/above MACD
• Rule Type - please refer to 3.2.1 for details
• Data Type - please refer to 3.2.1 for details
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3.13. Money Flow Index (MFI) 88
Parameters available:
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3.13. Money Flow Index (MFI) 89
Parameters available:
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3.13. Money Flow Index (MFI) 90
Parameters available:
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3.13. Money Flow Index (MFI) 91
Parameters available:
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3.13. Money Flow Index (MFI) 92
Parameters available:
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3.13. Money Flow Index (MFI) 93
Parameters available:
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3.13. Money Flow Index (MFI) 94
Parameters availabel:
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3.13. Money Flow Index (MFI) 95
Parameters available:
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3.13. Money Flow Index (MFI) 96
Parameters available:
• Max Divergence Period - the maximum duration where the divergence occurs
• Min Divergence Period - the minimum duration where the divergence occurs
• Min Overlap Length - the minimum number of overlapping periods during
which price and MFI diverge
• Price Slope - the minimum slope of the moving average of the price
• MFI Slope - the minimum slope of the moving average
• Price MA Period - the period used for the moving average calculation of the
price
• MFI MA Period - the period used for the moving average calculation of the MFI
• MFI On Right - if value is set to ’yes’, only divergences with MFI slope on the
right side of price slope are triggered
• MFI Period - period used for the calculation of MFI
• Rule type - please refer to 3.2.1 for details
• Data type - please refer to 3.2.1 for details
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3.13. Money Flow Index (MFI) 97
Parameters available:
• Max Convergence Period - the maximum duration where the convergence oc-
curs
• Min Convergence Period - the minimum duration where the convergence oc-
curs
• Min Overlap Length - the minimum number of overlapping periods during
which price and MFI converge
• Price Slope - the minimum slope of the moving average of the price
• MFI Slope - the minimum slope of the moving average of MFI
• Price MA Period - the period used for the moving average calculation of the
price
• MFI MA Period - the period used for the moving average calculation
• MFI On Right - if value is set to ‘yes’, only convergence with MFI slope on the
right side of price slope are triggered
• MFI Period - period of MFI
• Rule type - please refer to 3.2.1 for details
• Data type - please refer to 3.2.1 for details
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3.13. Money Flow Index (MFI) 98
Parameters available:
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3.14. Moving Average (MA) 99
Parameters available:
Setting MA Period
MA are lagging indicators. The longer the MA the more insensitive it is to recent price
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3.14. Moving Average (MA) 100
action but it indicates a clearer trend and momentum of the price movement. Hence
we need to set the MA-period according to our investment horizon. For example, in
medium-term trading, we tend to use MA(25) and MA(50) as guidelines. Also, EMA
is relatively better than MA in tracking recent price action.
Setting t1
t1 enables us to screen for stronger crossover signals. The longer t1 is, the clearer we
are that prior trend was strong and thus it is more likely that the crossover implies more
momentum.
Setting t2
t2 determines how soon you want the signal to be triggered after the crossover which
happens in Black Window. If you are eager to catch the trend as soon as the crossover
happens, set t2 to 0. Less aggressive traders can set t2 to 3-5 days, avoiding possible
whipsaws.
Setting Black Window
Black Window determines the period where crossover(s) can happen. The minimum
value you can set is 1. If you set a long Black Window, you can set shorter t2 and vice
versa so you do not get in too late after the trend has formed.
• Buy - Shortest MA crossing over mid MA, the latter crossing longest MA
• Sell - Longest MA crossing over mid MA, the latter crossing shortest MA
Parameters available:
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3.14. Moving Average (MA) 101
• t1 - the number of periods that the three MA lines must not cross before the
Black Window
• t2 - the number of periods that the three MA lines must not cross after the Black
Window
• Rule type - please refer to 3.2.1 for details
Setting MA Period
MA are lagging indicators. The longer the MA the more insensitive it is to recent price
action but it indicates a clearer trend and momentum of the price movement. Hence
we need to set the MA-period according to out investment horizon. For example, in
medium-term trading, we tend to use MA(25) and MA(50) as guidelines. Also, EMA
is relatively better than MA in tracking recent price action.
Setting t1
t1 enables us to screen for stronger crossover signals. The longer t1 is, the clearer we
are that prior trend was strong and thus it is more likely that the crossover implies more
momentum.
Setting t2
t2 determines how soon you want the signal to be triggered after the crossover which
happens in Black Window. If you are eager to catch the trend as soon as the crossover
happens, set t2 to 0. Less aggressive traders can set t2 to 3-5 days, avoiding possible
whipsaws.
Setting Black Window
Black Window determines the period where crossover(s) can happen. The minimum
value you can set is 1. If you set a long Black Window, you can set shorter t2 and vice
versa so you do not get in too late after the trend has formed.
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3.14. Moving Average (MA) 102
Parameters available:
Setting MA Period
MA are lagging indicators. The longer the MA the more insensitive it is to recent price
action but it indicates a clearer trend and momentum of the price movement. Hence
we need to set the MA-period according to our investment horizon. For example, in
medium-term trading, we tend to use MA(25) and MA(50) as guidelines. Also, EMA
is relatively better than MA in tracking recent price action.
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3.14. Moving Average (MA) 103
Setting t1
t1 enables us to screen for stronger crossover signals. The longer t1 is, the clearer we
are that prior trend was strong and thus it is more likely that the crossover implies more
momentum.
Setting t2
t2 determines how soon you want the signal to be triggered after the crossover which
happens in Black Window. If you are eager to catch the trend as soon as the crossover
happens, set t2 to 0. Less aggressive traders can set t2 to 3-5 days, avoiding possible
whipsaws.
Setting Black Window
Black Window determines the period where crossover(s) can happen. The minimum
value you can set is 1. If you set a long Black Window, you can set shorter t2 and vice
versa so you do not get in too late after the trend has formed.
3.14.4 MA as Support/Resistance
• Buy - MA as Support
• Sell - MA as Resistance
Parameters available:
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3.14. Moving Average (MA) 104
• Margin(bid size) - if value sets to ‘1’ means distance of MA1 line and MA2 line
is +/- 1 size
• x(bid size) - the minimum number of bid sizes among the difference of MA1
line and MA2 line
• t1 - the periods that MA2 is above(buy)/below(sell) MA1
• t2 - the maximum of periods that MA1 line touches MA2 line from the triggered
time
Parameters available:
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3.14. Moving Average (MA) 105
3.14.6 MA Trend
Parameters available:
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3.14. Moving Average (MA) 106
Parameters available:
• Upper Limit - Choose 1 from Open, High, Low, Close as Upper Limit
• Lower Limit - Choose 1 from Open, High, Low, Close as Lower Limit
• Rule type - please refer to 3.2.1 for details
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3.15. On Balance Volume (OBV) 107
Parameters available:
• Max Divergence Period - the maximum duration where the divergence occurs
• Min Divergence Period - the minimum duration where the divergence occurs
• Min Overlap Length - the minimum number of overlapping periods during
which price and OBV diverge
• Price Slope - the minimum slope of the moving average of the price
• OBV Slope - the minimum slope of the moving average of OBV
• Price MA Period - the period used for the moving average calculation of the
price
• OBV MA Period - the period used for the moving average calculation
• OBV On Right - if value is set to ‘yes’, only divergences with OBV slope on
the right side of price slope are triggered
• Rule type - please refer to 3.2.1 for details
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3.15. On Balance Volume (OBV) 108
Parameters available:
• Max Convergence Period - the maximum duration where the convergence oc-
curs
• Min Convergence Period - the minimum duration where the convergence oc-
curs
• Min Overlap Length - the minimum number of overlapping periods during
which price and OBV converge
• Price Slope - the minimum slope of the moving average of the price
• OBV Slope - the minimum slope of the moving average of OBV
• Price MA Period - the period used for the moving average calculation of the
price
• OBV MA Period - the period used for the moving average calculation
• OBV On Right - if value is set to ‘yes’, only convergence with OBV slope on
the right side of price slope are triggered
• Rule type - please refer to 3.2.1 for details
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3.15. On Balance Volume (OBV) 109
Parameters available:
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3.16. Parabolic Stop And Reversal 110
Parameters available:
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3.16. Parabolic Stop And Reversal 111
Parameters available:
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3.17. Price Channel 112
Parameters available:
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3.17. Price Channel 113
Parameters available:
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3.18. Relative Strength Index (RSI) 114
Parameters available:
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3.18. Relative Strength Index (RSI) 115
Parameters available:
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3.18. Relative Strength Index (RSI) 116
Parameters available:
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3.18. Relative Strength Index (RSI) 117
Parameters available:
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3.18. Relative Strength Index (RSI) 118
Parameters available:
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3.18. Relative Strength Index (RSI) 119
Parameters available:
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3.18. Relative Strength Index (RSI) 120
Parameters available:
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3.18. Relative Strength Index (RSI) 121
Parameters available:
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3.18. Relative Strength Index (RSI) 122
Parameters available:
• Max Divergence Period - the maximum duration where the divergence occurs
• Min Divergence Period - the minimum duration where the divergence occurs
• Min Overlap Length - the minimum number of overlapping periods during
which price and RSI diverge
• Price Slope - the minimum slope of the moving average of the price
• RSI Slope - the minimum slope of the moving average of RSI
• Price MA Period - the period used for the moving average calculation of the
price
• RSI MA Period - the period used for the moving average calculation
• RSI On Right - if value is set to ‘yes’, only divergences with RSI slope on the
right side of price slope are triggered
• RSI Period - period of RSI
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3.18. Relative Strength Index (RSI) 123
Parameters available:
• Max Convergence Period - the maximum duration where the convergence oc-
curs
• Min Convergence Period - the minimum duration where the convergence oc-
curs
• Min Overlap Length - the minimum number of overlapping periods during
which price and RSI converge
• Price Slope - the minimum slope of the moving average of the price
• RSI Slope - the minimum slope of the moving average of RSI
• Price MA Period - the period used for the moving average calculation of the
price
• RSI MA Period - the period used for the moving average calculation
• RSI On Right - if value is set to ‘yes’, only convergence with RSI slope on the
right side of price slope are triggered
• RSI Period - period of RSI
• Rule type - please refer to 3.2.1 for details
• Data type - please refer to 3.2.1 for details
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3.18. Relative Strength Index (RSI) 124
Parameters available:
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3.19. Smoothed Relative Strength Index (Smoothed RSI) 125
Parameters available:
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3.19. Smoothed Relative Strength Index (Smoothed RSI) 126
Parameters available:
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3.19. Smoothed Relative Strength Index (Smoothed RSI) 127
Parameters available:
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3.19. Smoothed Relative Strength Index (Smoothed RSI) 128
Parameters available:
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3.19. Smoothed Relative Strength Index (Smoothed RSI) 129
• Buy - Smoothed RSI crosses back lower limit from oversold region
• Sell - Smoothed RSI crosses back upper limit from overbought region
Parameters available:
Parameters available:
Parameters available:
Parameters available:
Parameters available:
• Max Divergence Period - the maximum duration where the divergence occurs
• Min Divergence Period - the minimum duration where the divergence occurs
• Min Overlap Length - the minimum number of overlapping periods during
which price and Smoothed RSI diverge
• Price Slope - the minimum slope of the moving average of the price
• RSI Slope - the minimum slope of the moving average of Smoothed RSI
• Price MA Period - the period used for the moving average calculation of the
price
• RSI MA Period - the period used for the moving average calculation
• RSI On Right - if value is set to ‘yes’, only divergences with Smoothed RSI
slope on the right side of price slope are triggered
• RSI Period - period of Smoothed RSI
Parameters available:
• Max Convergence Period - the maximum duration where the convergence oc-
curs
• Min Convergence Period - the minimum duration where the convergence oc-
curs
• Min Overlap Length - the minimum number of overlapping periods during
which price and Smoothed RSI converge
• Price Slope - the minimum slope of the moving average of the price
• RSI Slope - the minimum slope of the moving average of Smoothed RSI
• Price MA Period - the period used for the moving average calculation of the
price
• RSI MA Period - the period used for the moving average calculation
• RSI On Right - if value is set to ‘yes’, only convergence with Smoothed RSI
slope on the right side of price slope are triggered
• RSI Period - period of Smoothed RSI
• Rule type - please refer to 3.2.1 for details
• Data type - please refer to 3.2.1 for details
3.19. Smoothed Relative Strength Index (Smoothed RSI) 135
Parameters available:
• MA period - the number of periods used for the period of the moving average
of Smoothed RSI
• Rule type - please refer to 3.2.1 for details
• Data type - please refer to 3.2.1 for details
3.20. Stochastic 136
3.20 Stochastic
Parameters available:
Parameters available:
Parameters available:
Parameters available:
Parameters available:
Parameters available:
Parameters available:
Parameters available:
Parameters available:
• x2 - the minimum amount Stochastic has moved below/above the recent peak/trough
(buy/sell)
• x3 - the minimum amount Stochastic had moved above/below the recent peak/trough
(buy/sell)
• %D/Smoothed %D/%K - Stochastic line to be used
• Rule type - please refer to 3.2.1 for details
• Data type - please refer to 3.2.1 for details
3.20. Stochastic 145
Parameters available:
• Max Divergence Period - the maximum duration where the divergence occurs
• Min Divergence Period - the minimum duration where the divergence occurs
• Min Overlap Length - the minimum number of overlapping periods during
which price and Stochastic diverge
• Price Slope - the minimum slope of the moving average of the price
• Stochastic Slope - the minimum slope of the moving average of Stochastic
• Price MA Period - the period used for the moving average calculation of the
price
• Stochastic MA Period - the period used for the moving average calculation
• Stochastic On Right - if value is set to ‘yes’, only divergences with Stochastic
slope on the right side of price slope are triggered
• %K Period - the period of %K
• %D Period - the period of %D
• Smoothed %D Period - the period of Smoothed %D
• Rule type - please refer to 3.2.1 for details
• Data type - please refer to 3.2.1 for details
3.20. Stochastic 146
Parameters available:
• Max Convergence Period - the maximum duration where the convergence oc-
curs
• Min Convergence Period - the minimum duration where the convergence oc-
curs
• Min Overlap Length - the minimum number of overlapping periods during
which price and Stochastic converge
• Price Slope - the minimum slope of the moving average of the price
• Stochastic Slope - the minimum slope of the moving average of Stochastic
• Price MA Period - the period used for the moving average calculation of the
price
• Stochastic MA Period - the period used for the moving average calculation
• Stochastic On Right - if value is set to ‘yes’, only convergence with Stochastic
slope on the right side of price slope are triggered
• %K Period - the period of %K
• %D Period - the period of %D
• Smoothed %D Period - the period of Smoothed %D
3.20. Stochastic 147
Parameters available:
3.21 Williams %R
Parameters available:
Parameters available:
Parameters available:
Parameters available:
Parameters available:
Parameters available:
Parameters available:
Parameters available:
Parameters available:
3.21. Williams %R 156
• Max Divergence Period - the maximum duration where the divergence occurs
• Min Divergence Period - the minimum duration where the divergence occurs
• Price MA Period - the period used for the moving average calculation of the
price
• WR MA Period - the period used for the moving average calculation
• WR On Right - if value is set to ‘yes’, only divergences with Williams %R slope
on the right side of price slope are triggered
• WR Period - period of Williams %R
• Rule type - please refer to 3.2.1 for details
• Data type - please refer to 3.2.1 for details
Parameters available:
3.21. Williams %R 157
• Max Convergence Period - the maximum duration where the convergence oc-
curs
• Min Convergence Period - the minimum duration where the convergence oc-
curs
• Min Overlap Length - the minimum number of overlapping periods during
which price and Williams %R converge
• Price Slope - the minimum slope of the moving average of the price
• WR Slope - the minimum slope of the moving average of Williams %R
• Price MA Period - the period used for the moving average calculation of the
price
• WR MA Period - the period used for the moving average calculation
• WR On Right - if value is set to ‘yes’, only convergence with Williams %R
slope on the right side of price slope are triggered
• WR Period - period of Williams %R
• Rule type - please refer to 3.2.1 for details
• Data type - please refer to 3.2.1 for details
Parameters available:
3.21. Williams %R 158
Parameters available:
• t1 - the number of periods that the Wm%R line and Wm%R MA line must not
cross before the Black Window
• t2 - the number of periods that the Wm%R line and Wm%R MA line must not
cross after the Black Window
• Rule type - please refer to 3.2.1 for details
• Data type - please refer to 3.2.1 for details
Parameters available:
• t1 - the number of periods that the Wm%R line and Wm%R MA line must not
cross before the Black Window
3.21. Williams %R 160
• t2 - the number of periods that the Wm%R line and Wm%R MA line must not
cross after the Black Window
XPertTrader allows you to create rules and then use it to perform backtesting and
screening to find winning stocks or uncover hidden gem stocks easily and efficiently.
Once you have created the rules, you can share it with your friends where they can sub-
sequently import into their own XPertTrader to try out the rules (see Sub-section 2.4.3
on how to import rules).
An easier and more convenient way to retrieve the rules will be to use XPertTrader
Library (XPL). XPL serves as a platform for users to share their rules and making it
possible to let users easily try out the shared rules with just one click of the mouse.
In XPertTrader, the XPL is the last tab. See Figure 4.1
d) Once you have entered the name, you can view the content of the rule in Rules
Composer.
161
4.2. Getting Rule From XPL 162
As part of the XPertTrader add-on module (see Figure 5.1), this module incorporates
some of the most frequently-used Japanese candlesticks pattern into XPertTrader. With
that you can compose rules using candlesticks independently or in conjunction with
other technical indicators or rules to perform screening and backtesting.
163
5.1. Editing Candlestick Patterns 164
NOTE: This candlesticks module is available for subscription either as a separate mod-
ule or you can subscribe together with the Indicators module.
Here are some descriptions on how to access the functions in Candlesticks:
1. Click on the Candlesticks tab in XPertTrader to show the main window of this
module.
2. Click on the Editor button to show the Candlesticks Editor which enables you
create your own candlestick patterns.
3. Classification of candlesticks rules. User Buy Pattern and User Sell Pattern are
contain the candlestick patterns that you have created and saved.
4. Diagram to illustrate the candlestick pattern.
You can now create your own candlestick patterns with our Candlestick Patterns Editor
shown in Figure 5.2.
5.1. Editing Candlestick Patterns 165
Figure 5.2: Candlesticks patterns editor to manipulate and manage your candlesticks
patterns.
Here are some descriptions on how to use the functions in Candlestick Patterns Editor:
1. List of predefined patterns available for you to edit or access your previously
created candlestick patterns.
2. Fill in your description of candlestick patterns here.
3. Display of your candlestick patterns. Each line in this diagram represents one
bid size.
4. Edit or create candlestick patterns here with the GUIs. You can add/delete dif-
ferent type of candles, resize, move and save the patterns.
5. Candlestick configurations. (Please read further for more information on this
section.)
Trend Setup - Setup the stock price trend (we use Moving Average for trend defini-
tion) where you want your candlestick patterns to be located. You can choose
None if it does not matter in which trend your candlestick patterns will occur.
5.2. Capturing Candlestick Patterns 166
MA Period for Trend - Enter the period (number of days) for Moving Average trend
if you choose either Up or Down trend in Trend Setup.
Relative Position Tolerance - This option defines the bid size tolerance between each
candlesticks. For example a Relative Position Tolerance of 2 means that patterns
with Candle1 and Candle2 that are off by two bids compare to what is shown on
the candlestick diagram can still be detected.
Bid Tolerance Table - Define the bid size tolerance of each individual candlestick.
You can define the tolerance for both shadows and body of the candle. You can
choose ignore shadow if it the shadows’ sizes does not matter for your candle-
stick patterns recognition.
With this feature, you can easily record or capture potential candlestick patterns directly
from the chart without having to reproduce or compose them with the Candlestick
Patterns Editor.
Click on the Capture button located in Candlestick Patterns Editor (see Figure 5.3).
After you click on the Capture button, a minimized Capture Pattern window will appear
in the main ChartNexus window, see Figure 5.4.
Next, click on the Capture button. Click on a point in the chart that you wish to capture
5.2. Capturing Candlestick Patterns 167
Figure 5.4: Capture candlesticks window appears in the ChartNexus main window.
or record the candlestick pattern by dragging and holding your mouse click over the
region (see Figure 5.5).
Figure 5.5: Drag and hold your mouse click to capture the candlestick patterns that you
are interested.
After captured successfully, the recorded candlestick pattern will appear in the Candle-
stick Patterns Editor, refer to Figure 5.6.
5.2. Capturing Candlestick Patterns 168
ChartMaker
ChartMaker is an add-on (for info on Add-ons, see 1.1) useful module for generating
large number of charts easily but with the flexibility to customize the settings for the
charts.
169
6.1. Features Of ChartMaker 170
• Generate charts of certain markets or from Stock Screener (see 2.5) or from
Backtester (see 2.6)results
• Customize various parameters for the indicators to be included in your charts
• Customize colors and save it as your favorite color schemes
Figure 6.2 shows the default color scheme that comes with ChartNexus. You can
change the color scheme by customising the various aspects of the charts and then
have the color scheme to be applied to all the charts that you generate (see Figure 6.4
for an instance of the color scheme that you can customize).
You can also easily add indicators to all the charts. Select your template to add in your
preffered indicators.
You can also change the parameters of the indicators to use your preferred values.
6.3. Adding Indicators to Charts 172
6.4 Watermark
174
7.2. Reporting Error 175
Figure 7.1: Reporting error to us. Make sure you have an Internet connection.
7.2. Reporting Error 176
Figure 7.2: Clicking Send Log will send us any information or error listed in the panel
to us.
Appendix A
Glossary
We have prepared a list of some of the jargons or words that you may come across
in the investment world, particular in Technical Analysis. This list is by no means
comprehensive, but it should be sufficient for most common purpose.
• After Hours
Any trade posting, adjusting, or changes made by specialists or member firm
after the official close of the market.
177
178
• Amortization
The paying off of debt in regular installments over a period of time.
• Analysis of Variance
A technique used to improve the analysis over regression techniques. It can
be used for identifying relationships between predictor and criterion variables,
whether the predictor variables are quantitative or qualitative in nature.
• Analyst
A person with expertise in evaluating financial instruments. He or she performs
investment research and makes recommendations to institutional and retail in-
vestors to buy, sell, or hold. Most analysts specialize in a single industry or
business sector.
• Announcement Date
The date on which a company first publicly announces an impending stock split.
• Annual Report
Yearly report made by a company to its stockholders. They usually contain a
balance sheet, an income statement, a list of changes in retained earnings, and
how income of the corporation was used.
• Annualized
The translation of periods of less than a year into an annual rate for comparative
purposes. To annualize quarterly figures, you multiply them by four.
• Arbitrage
The simultaneous buying and selling of securities to take advantage of price
discrepancies. Arbitrage opportunities usually surface after a takeover offer.
• Area Pattern
A pattern of sideways price movement that follows a stalled uptrend or down-
trend of a stock or commodity. Some of these patterns (triangles, flags, wedges
etc.) have good predictive value.
• Ascending Trend Channel
An ascending line that connects the bottoms of the down waves and is parallel
to a trendline The ascending channel line and the trendline form borders on an
uptrend.
• Ascending Triangle
A sideways price pattern between two converging trendlines in which the lower
line is rising while the upper line is flat. This is generally a bullish pattern.
• Ask
Also known as the “offer”, the price that the market maker guarantees to fill a
buy order. A buy order placed at the market will usually be filled at the current
asking (offer) price. The ask price is usually greater than the bid price.
• Assets
Any possessions that have value in an exchange.
179
• Blowoff
See Reversal Spike-High
• Blue Chip
A well known, public company that is thought to be in good financial shape and
have sound fundamentals (profitability, earnings). An investment in a blue chip
is regarded as a safe investment. Examples include DBS, UOB and OCBC.
• Bollinger Bands
An indicator that allows users to compare volatility and relative price levels over
a period of time. It consists of three bands designed to encompass the majority
of a security’s price action. Prices will often meet resistance at the upper band
and support at the lower band.
• Market Breadth
A comparison of the number of issues traded with the number of issues listed
for trading. A rally is considered a suspect if the number of advancing issues is
diminishing as the rally develops. Conversely, a decline which is associated with
fewer and fewer stocks falling is considered to be a bullish sign.
• Breakaway Gap
A price gap that forms on the completion of an important price pattern. A break-
away gap usually signals the beginning of an important price move.
• Breakout
A substantial rise in price above a resistance level or a substantial decline in
price below the support level. When a breakout occurs, a price pattern is likely
to continue.
• Bull
A person who believes prices will advance and might be described as having a
“bullish” outlook. Bull markets occur when roughly 80% of all stocks advance
over an extended period of time. 1982-87 and 1995-99 have been referred to as
bull markets.
• Bull Market
A market when prices are rising. Occur when roughly 80% of all stocks advance
over an extended period of time.
• Bull Trap
A signal which suggests that the falling trend of an index or stock has reversed
but which proved to be false. Thus trap the bulls that acted on the signal with
losses. A bull trap is a form of whipsaw and relates to the spring.
• Bump and Run Reversal
A reversal chart pattern that forms after excessive speculation drives prices up too
far, too fast. It is designed to identify speculative advances that are unsustainable
for a long period.
• Buy Signal
A condition that indicates a good time to buy a stock. The exact circumstances
of the signal will be determined by the indicator that an analyst is using. For ex-
ample, it’s considered a buy signal when the price declines while OBV increases.
181
• Buy Stop
A buy order usually placed above the current price, ensuring that a security would
have to trade at the set level before the buy order would be activated. By placing
a buy stop order just above resistance, a trader can ensure that the security will
break resistance before going long. On the other hand, traders looking to catch a
bottom or intraday low might place a buy stop below the current price, but near
support.
• Buyback
A company’s repurchase of it’s own shares of stock.
• Buying Climax
A sudden upward movement of a security’s price accompanied by extremely high
volume created by investors rushing in to buy the security. This often indicates
that a security has been overbought and the price will fall. As it often happens at
the end of an up price movement, it typically represents a good time to sell.
• Buying on Margin
A risky short-term strategy where a buyer borrows money from a broker to make
an investment. The buyer believes the stock price will rise and is trying to maxi-
mize profits by investing more money in the stock.
• Call Option
The right to buy a stock or commodity future at a given price before a given date.
The owner of the call option is speculating that the price of the stock will go up
and is therefore bullish.
• Candlestick Chart
A form of Japanese charting that has become popular in the West. A narrow line
(shadow) shows the day’s price range. A wider body marks the area between the
open and the close. If the close is above the open, the body is white (not filled);
if the close is below the open, the body is black (filled).
• Capital Gain
Profit derived from the selling price exceeding its initial purchase price. A real-
ized capital gain is an investment that has been sold at a profit. An unrealized
capital gain is an investment that has not been sold yet but would result in a profit
if sold. Capital gain is often used to mean realized capital gain.
• Chaikin Money Flow (CMF)
An oscillator that helps signal if a stock is undergoing accumulation or distribu-
tion. It is calculated from the daily readings of the Accumulation/Distribution
line (A/D line). CMF is not influenced by the daily price change, but focuses on
the location of the close relative to the range for the period (daily or weekly).
• Channel
A trading range between two parallel trendlines in which prices move. They can
be two parallel upward trendlines (upward channel); or two parallel downward
trendlines (downward channel).
• Commodity Channel Index (CCI)
Developed by Donald Lambert, the CCI is an indicator designed to identify cycli-
cal turns in commodities. It may also be applied to stocks or bonds.
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• Confirmation
A subsequent signal that validates a position stance. Traders and investors some-
times compare the prices with two or more technical indicators to ensure they
are pointing in the same direction and confirming one another. For example,
confirmation of a bullish trend is when the increasing prices are accompanied by
a rising OBV.
• Congestion Area
A sideways trading range where supply and demand balance out.
• Consolidation Area
A trading range in which prices move until continuing in the same direction as
the trend prior to the consolidation area.
• Continuation Pattern
Occurs in the Consolidation Area. It is a type of chart pattern that occurs in
the middle of an existing trend. The previous trend resumes when the pattern is
complete. Examples include the Pennant continuation patterns.
• Contra-Trend Signals
Bullish patterns in bear markets and vice versa.
• Correction
After an advance, price declines, but they do not penetrate the low from which the
advance began. Also referred to as a retracement, a correction usually retraces
1/3 to 2/3 of the previous advance.
• Crossover
A point on a graph where two lines intersect. Depending on which lines they
are, a crossover may indicate a buy or sell signal. For example, the price line
crossing above a moving average line may generate a buy signal. Oscillators
such as MACD and CMF experience centerline crossovers.
• Customer Free Balances
The total amount of unused money on deposit in brokerage accounts. These are
free funds representing cash which may be employed in the purchase of securi-
ties.
• Cycle
A price pattern of movement that regularly occurs in a given time interval.
• Cyclical Investing
The process of buying and selling stocks based on a longer-term or primary mar-
ket move. The cycle approximates the 4-year business cycle, to which such
primary movements in stock prices are normally related.
• Cyclical Stocks
Shares of companies that are highly sensitive to economic performance. Cyclical
stocks tend to perform well when the economy is growing and suffer when the
economy contracts.
• Day Trading
A trading style where all positions are cleared before the end of the trading day.
Contrast this with position trading, where stocks or securities may be held for
longer periods.
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• Declining
A market stage of a stock that is characterized by a downtrend with subsequently
lower highs and lower lows.
• Descending Triangle
A sideways price pattern between two converging trendlines in which the upper
trendline is descending while the lower line is flat. This is generally a bearish
pattern.
• Distribution
Occurs when the demand of a security is less than the supply. After an advance
in price, a stock may start forming a top and trade sideways for an extended
period. In the mean time, well-informed traders and investors may seek to unload
positions. In that case, the stock is said to have come under distribution. A quiet
distribution period is usually subtle and not enough to put downward pressure on
the price. However, an aggressive distribution will likely put downward pressure
on prices.
• Divergence
It is the opposite of confirmation. It occurs when two or more indicators move
in opposite directions. Traders and investors often look for divergences by com-
paring a stock’s direction to the direction of its indicators. There are two kinds
of divergences: positive and negative. A positive divergence occurs when the in-
dicator moves higher while the stock is declining. A negative divergence occurs
when the indicator moves lower while the stock is rising. For example, a bearish
divergence is when increasing prices are accompanied by falling OBV. Another
example of bearish divergence is when price makes a high, pullback then makes
a higher high; but RSI makes a high, pullback then makes a lower high.
• Double Top
A reversal chart pattern displaying two prominent peaks. The reversal is com-
plete when the support trough is broken. The double bottom is a mirror image of
the top.
• Downtrend
A straight line drawn down and to the right above successive rally peaks. The
longer the down trendline has been in effect and the more times it has been tested,
the more significant it becomes. A violation of the down trendline usually signals
a reversal of the downtrend.
• Envelopes
Also known as trading band. Envelopes are lines that are placed at fixed percent-
ages above and below a moving average line. Envelopes help determine when a
market has traveled too far from its moving average and is overextended.
184
• Equity
In financial market terminology, it refers to stock or any other security represent-
ing an ownership interest. The process by which a company issues stock to raise
money is termed equity financing.
• Exchange
An exchange is a physical location where securities are bought and sold. It
consists of a primary and a secondary market. The primary market is the financial
market where securities are issued and placed whereby the secondary market
trades the issued securities.
• Ex-Dividend Date
The first day of the ex-dividend period. If an investor does not own the stock
before the ex-dividend date, they will be ineligible for the dividend payout. The
exchanges automatically reduced the price of the stock by the amount of the
dividend for all pending transactions that have not been completed by the ex-
dividend date.
• Exhaustion
When buying power is no longer enough to move prices up or when selling power
is no longer enough to move prices lower.
• Exhaustion Gap
A price gap that occurs at the end of an important trend. It signals that the trend
is concluding.
• Exponential Moving Average (EMA)
A moving average that gives greater weight to more recent data in an attempt to
smoothen the moving average.
• Extended (in price)
A term describing a stock that has risen past its pivot point. Such a stock is
considered a risky investment because it has already begun its advance and is
more likely to reverse.
• False Breakout
A breakout of a chart pattern that aborts. To ensure that a breakout is genuine,
look for confirmation by several indicators.
• Fibonacci Numbers
A number sequence (i.e. 1,2,3,5,8,...) that is constructed by adding the first two
numbers to arrive at the third. The ratio of any number to the next number is
61.8 percent, which is a popular Fibonacci retracement number. It is the ratio of
the Fibonacci sequence that is important and valuable, not the actual numbers in
the sequence.
• Flag
A continuation chart pattern that generally lasts less than three weeks and resem-
bles a parallelogram that slopes against the prevailing trend. The flag represents
a minor pause in a dynamic price trend.
• Fundamental Analysis
A market analysis that relies on economic supply and demand information based
185
on the underlying value of a company in terms of its cash, current assets and
earnings; as opposed to focusing to an analysis based on charts and market indi-
cators (technical analysis).
• Gap
Represents a price range on a chart at which no trading takes place. Also occurs
when the high of the day is below the low of the previous day or when the low
of the day is above the high of the previous day. Gaps are especially significant
when accompanied by an increase in volume.
• Investor
An investor is someone who tends to take a long-term view when buying a secu-
rity, holding the security for at least several months.
• Key Reversal Day
A one day chart pattern where prices sharply reverse during an uptrend or down-
trend. In an uptrend, prices open in new highs and then close below the previous
day’s closing price. In a downtrend, prices open lower and then close higher.
The wider the price range on the key reversal day and the heavier the volume,
the greater the odds that a reversal is taking place.
186
• Limit Order
An order to buy or sell a security at a specific price. As opposed to a market
order, limit orders might not be filled immediately if the market moves away
from the specified price.
• Line Chart
Price charts that connect the closing prices of a given market over a span of time
that form a curving line on the chart.
• Liquidity
The ease with which a stock may be bought or sold in volume on the marketplace
without causing dramatic price fluctuations. A highly liquid stock is character-
ized by a large volume of trading and a large pool of interested buyers and sellers.
• Moving Average Convergence/Divergence (MACD)
An indicator developed by Gerald Appel. By comparing moving averages, MACD
displays trend following characteristics, and by plotting the difference of the
moving averages as an oscillator, MACD displays momentum characteristics.
• MACD Histogram
A visual representation of the difference between the MACD line and signal line.
The plot of this difference is presented as a histogram, making the centerline
crossovers and divergences easily identifiable.
• Market Capitalization
Also known as market cap, it is the total market value of a company (number of
shares outstanding multiplied by the price of the stock).
• Market Order
An order to buy or sell a security at the prevailing market price. A sell order will
most likely be filled at the bid price and a buy order will be filled at the ask price.
• Momentum
A leading indicator measuring a security’s price or volume’s rate of expansion.
It forms an oscillator that moves above and below 100. Bullish and bearish
interpretations are found by looking for divergences, centerline crossovers and
extreme readings.
• Money Flow Index (MFI)
A volume-weighted momentum indicator that measures the strength of money
flowing in and out of a security. It compares “positive money flow” to “negative
money flow” to create an indicator that can be compared to price in order to
identify the strength or weakness of a trend.
• Moving Average (MA)
An average of data for a certain number of time periods. It moves because for
each calculation, we use the latest x number of time periods’ data. By definition,
a moving average lags the market. An exponentially smoothed moving average
(EMA) gives greater weight to the more recent data, in an attempt to reduce the
lag.
• New Highs and New Lows
New highs refers to the number of stocks recording their highest price level in
52-weeks.
187
New lows are the number of stocks recording their lowest price level in 52-
weeks. As an indicator, new highs and new lows are usually shown as moving
averages to smooth the results and are often plotted together for easy comparison.
• Odd Lots
Stock purchased in units less than 100 shares
• Offer
See Ask
• Pivot Point
The point at which resistance disintegrates and the stock price begins to rise past
the prior resistance level. This point can be considered the optimal time to buy
as the bulls are gaining strength.
• Position Trading
A style of trading characterized by holding open positions for an extended period
of time. Contrast this with day trading, where a trader buys, then sells out of a
position before the market closes that day.
• Price Channels
See Channel
• Price Objective
Technical appraisal of a security’s future value.
• Price Patterns
Patterns that appear on price charts possessing predictive values. They are either
reversal and continuation patterns.
• Primary Trend
The predominant movement of a security. When it is up, it is known as a bull
market; when it is down, it is known as a bear market.
• Proxy
A security or index whose correlation with another security or index is so strong
that it is used as a substitute for the other.
• Pullback
When a security or the overall market falls back from a previous advance.
• Range
The distance between the high price and the low price for a given time period. A
daily range is equal to intraday high minus intraday low.
• Signal Line
Also known as a “trigger line”, it is a moving average of another indicator that is
used to generate simple buy and sell signals. The popular signal line is the one
that is built into the MACD display. A buy signal is generated when the MACD
line crosses above the signal line and a sell signal is generated when the MACD
line crosses below the signal line.
• Spread
The difference between the bid and the ask. Generally speaking, more liquid
(heavy volume) stocks usually have smaller bid/ask spreads. Less liquid stocks
(light volume) usually have larger spreads.
• Spring
A situation that occurs when prices break below the support line, but soon reverse
course and move back above support. Prices are said to “spring” back from their
support break and indicate that the bulls are still alive. A spring can also be
referred to as a failed (bearish) signal and is considered bullish. Generally, the
reversal should occur within 1-3 days of the support break for the failed signal
to be considered valid. This is the opposite of an upthrust.
• Stochastic Oscillator
A momentum indicator developed by George Lane that measures the price of a
security relative to the high/low range over a set period of time. The Stochastic
Oscillator can be used like any other oscillator by looking for overbought/oversold
readings, positive/negative divergences and centerline crossovers.
• Stop Loss Order
An instruction to the broker to buy or sell stock when it trades beyond a specified
price. They serve to either protect the profits or limit the losses.
• Stop-And-Reversal Indicator
See Parabolic SAR.
• Support
A price level at which there is sufficient demand for a stock to cause a halt in an
downward trend and turn the trend up. Support levels indicate the price at which
most investors feel that prices will move higher.
• Symmetrical Triangle
A sideways chart pattern between two converging trendlines in which the upper
trendline is declining and the lower trendline is rising. The breakout through
either trendline signals the direction of the price trend.
• Technical Analysis
The study of market action, usually with price charts, which includes volume
and open interest patterns. Compare this to Fundamental Analysis.
• Topping
A period where the stock or market is “catching its breath” after an advance,
characterized by a flat trading range without any noticeable trend. It is common
to see a topping period after a lengthy increase of the stock price. Topping may
be a sign of distribution.
191
• Trader
A trader is someone who tends to take a short to medium-term view when buying
a security. A trader usually relies on market volatility and swings to make profits.
• Trailing Stop
A stop-loss level set above or below the current price that adjusts as the price
fluctuates. For a long position, a trailing stop would be set below the current
price and would rise as the price advances. Should the price decline and reach
the trailing stop, then a stop-loss would be triggered and the position closed. As
long as the price remains above the trailing stop, the position is held. Indicators
such as the Parabolic SAR can be used to set trailing stops.
• Trend
Refers to the direction of prices. It can be an uptrend or a downtrend.
• Trendlines
Straight lines drawn on a chart below reaction lows (in an uptrend) or above rally
peaks (in a downtrend) that determine the steepness of the current trend.
• Triangles
Sideways price patterns in which prices fluctuate with converging trendlines. The
three types of triangles are symmetrical, ascending and descending triangles.
• Triple Top
A price pattern with three prominent peaks at about the same level. The triple
bottom is the mirror image of the top.
• Typical Price
The average of intraday high, low and close.
• Uptrend
A straight line drawn upward and to the right below the reaction lows. The
longer the uptrend has been in effect and the more times it has been tested, the
more significant it becomes. Violation of the trendline usually signals that the
uptrend may be changing direction.
• Upthrust
A situation that occurs when prices break above resistance, but soon reverse
course and break back below resistance. Also referred to as a failed (bullish)
signal and is considered bearish. Generally, the reversal should occur within 1-3
days of the resistance breakout for the failed signal to be considered valid. This
is the opposite of a spring.
• Volatility
A measurement of change in price over a given period. It is usually expressed as a
percentage and computed as the annualized standard deviation of the percentage
change in daily price. The more volatile a stock or market, the more money an
investor can gain or lose in a short period of time.
• Volume
The number of trades in a security over a period of time.
192
• Wedge
A reversal chart pattern characterized by two converging trendlines that connect
at an apex. The wedge is slanted either downwards or upwards demonstrating
bullish or bearish behavior respectively.
• Weekly Reversal
An upside weekly reversal is present when prices open lower on Monday and
then on Friday close above the previous week’s close. A downside weekly rever-
sal opens the week higher but closes down by Friday.
To familiarize yourself with ChartNexus and derive the maximum benefit, this is a list
of the GUI jargons that you will come across throughout this document.
NOTE: You can use shortcut key ESC found on your keyboard to close the
window as well. See Appendix ??.
• Drop-down list or pull-down list
193
194
• Tooltip
• Toolbar
• Pushpin
195
• Menu item
The items found in the menubar
• Scrollbar
• Button
196
• Radio button
• Checkbox
To select/switch on the option, click on the checkbox once. To de-select/switch
off the option, click again on the checkbox.
• Toggle button
To select/switch on the option, click on the toggle button once. To de-select/switch
off the option, click again on the toggle button.
197
• Table
You can change the order of the columns by left-clicking your mouse and drag-
ging it to the desired order as shown below.
• Tree