Chart Nexus Addons Manual

ChartNexus Add-ons
User Manual
Version3.0.6
Prepared by
FiNEX Solutions
•••
January 14, 2010
Visit website: http://www.chartnexus.com

i
Copyright © 2004-2010 FiNEX Solutions

All rights reserved. No part of this document may be reproduced in any form or by any
electronic or mechanical mean, including information storage and retrieval systems,
without permission in writing from FiNEX Solutions Pte. Ltd (“FiNEX Solutions”).
Limitations of Liability /Disclaimer of Warranty

FiNEX Solutions makes no representation or warranty including, but not limited to the
accuracy or completeness of the contents of this document and specifically disclaim
all warranties, including without limitation warranty of fitness for a particular purpose.
No warranty may be created or extended by sales or promotional materials.
This document is provided with the understanding that it is for personal educational
reference, to assist you in better understanding of the ChartNexus software system. If
you require professional assistance or investment advice, you are strongly advised to
engage the services of a competent financial adviser.
FiNEX Solutions shall not be held liable for damages arising here from. The fact that
an organization or a website is referred to in this document as a citation and/or a poten-
tial source for further information does not mean that FiNEX Solutions endorses the
information or recommendations made by the organization or the website. Further, you
should be aware that the Internet websites listed in this document may have changed or
disappeared between when this document was written and when you read it.
For general information and updates on our products and services, please visit our web
site at http://www.chartnexus.com .
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.
About FiNEX Solutions

FiNEX Solutions is the developer of ChartNexus financial charting software. Estab-
lished since 2004 and based in Singapore, FiNEX Solutions has been pushing the fron-
tier of financial charting including the introduction of on-demand add-on modules. The
add-ons extend the capability of ChartNexus to include historical data, backtesting,
screening, pattern recognition and more. Besides specializing in application develop-
ment, FiNEX Solutions provides a complete range of products and services including
data services, web-based charting solutions, consultancy on integration of financial
charting systems, education and training and other solutions.
For more information, please contact support@chartnexus.com .
www.chartnexus.com
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
www.chartnexus.com
TABLE OF CONTENTS iii
2.5.3 Saving results . . . . . . . . . . . . . . . . . . . . . . . . . . 17

2.6 Backtester . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
2.6.1 Changing Backtester settings . . . . . . . . . . . . . . . . . . 19
2.6.2 Viewing results . . . . . . . . . . . . . . . . . . . . . . . . . 25
2.6.3 Saving results . . . . . . . . . . . . . . . . . . . . . . . . . . 28
3 ChartNexus XPertTrader Parameters Explained 30

3.1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
3.2 General Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
3.2.1 Fibonacci Retracement . . . . . . . . . . . . . . . . . . . . . 30
3.2.2 Price Increase . . . . . . . . . . . . . . . . . . . . . . . . . . 32
3.2.3 Price Decrease . . . . . . . . . . . . . . . . . . . . . . . . . 33
3.2.4 Prices at/near Historical High . . . . . . . . . . . . . . . . . 34
3.2.5 Prices at/near Historical Low . . . . . . . . . . . . . . . . . . 35
3.2.6 Price Breakout Bullish . . . . . . . . . . . . . . . . . . . . . 36
3.2.7 Price Breakout Bearish . . . . . . . . . . . . . . . . . . . . . 37
3.2.8 Price In Range Bound . . . . . . . . . . . . . . . . . . . . . 38
3.2.9 Volume Increase . . . . . . . . . . . . . . . . . . . . . . . . 39
3.2.10 Volume Decrease . . . . . . . . . . . . . . . . . . . . . . . . 40
3.3 Accumulation/Distribution Line . . . . . . . . . . . . . . . . . . . . 41
3.3.1 Acc/Dis Divergence With Price . . . . . . . . . . . . . . . . 41
3.3.2 Acc/Dis Convergence With Price . . . . . . . . . . . . . . . . 42
3.3.3 Acc/Dis Trend . . . . . . . . . . . . . . . . . . . . . . . . . 43
3.4 Average Directional index (ADX) . . . . . . . . . . . . . . . . . . . 44
3.4.1 ADX Below 20-Level . . . . . . . . . . . . . . . . . . . . . 44
3.4.2 ADX Above 40-Level . . . . . . . . . . . . . . . . . . . . . 45
3.4.3 ADX In Specified Range . . . . . . . . . . . . . . . . . . . . 46
3.4.4 ADX Crosses Up 20-Level . . . . . . . . . . . . . . . . . . . 47
3.4.5 ADX Crosses Down 20-Level . . . . . . . . . . . . . . . . . 48
3.4.6 ADX Crosses Up 40-Level . . . . . . . . . . . . . . . . . . . 49
3.4.7 ADX Crosses Down 40-Level . . . . . . . . . . . . . . . . . 50
3.4.8 ADX (+DI/-DI) Crossover . . . . . . . . . . . . . . . . . . . 51
www.chartnexus.com
TABLE OF CONTENTS iv
3.4.9 + DI Cross Up ADX . . . . . . . . . . . . . . . . . . . . . . 52

3.4.10 + DI Cross Down ADX . . . . . . . . . . . . . . . . . . . . 53
3.4.11 - DI Cross Up ADX . . . . . . . . . . . . . . . . . . . . . . 54
3.4.12 - DI Cross Down ADX . . . . . . . . . . . . . . . . . . . . . 55
3.5 Bollinger Bands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
3.5.1 Bollinger Bands - Price Below/Above The Lower/Upper Band 56
3.5.2 Bollinger Bands - Price Just Touching/Crossing Band . . . . . 57
3.5.3 Bollinger Bands - Price Touched Band And Rebounded/Retreated
From Band . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
3.5.4 Bollinger Bands Squeeze . . . . . . . . . . . . . . . . . . . . 59
3.6 Chaikin Money Flow (CMF) . . . . . . . . . . . . . . . . . . . . . . 60
3.6.1 CMF Crossing Zero . . . . . . . . . . . . . . . . . . . . . . 60
3.6.2 CMF Sustained Pressure . . . . . . . . . . . . . . . . . . . . 61
3.6.3 CMF Divergence With Price . . . . . . . . . . . . . . . . . . 62
3.6.4 CMF Convergence With Price . . . . . . . . . . . . . . . . . 63
3.6.5 CMF Trend . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
3.7 Commodity Channel Index (CCI) . . . . . . . . . . . . . . . . . . . 65
3.7.1 CCI lies above/below +100/-100 . . . . . . . . . . . . . . . . 65
3.7.2 CCI Centerline Crossover . . . . . . . . . . . . . . . . . . . 66
3.7.3 CCI rebounding/retreating in the regions below/above -100/+100 67
3.7.4 CCI Rebounded/Retreated Regions below/above -100/+100 And
Touching/Crossing -100/+100 . . . . . . . . . . . . . . . . . 68
3.8 Force Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
3.8.1 Force Index Crossup Centerline . . . . . . . . . . . . . . . . 69
3.8.2 Force Index Crossdown Centerline . . . . . . . . . . . . . . . 70
3.8.3 Force Index Divergence with Price . . . . . . . . . . . . . . . 71
3.8.4 Force Index Convergence with Price . . . . . . . . . . . . . . 72
3.9 Guppy Multiple Moving Average (GMMA) . . . . . . . . . . . . . . 73
3.9.1 GMMA Crossover . . . . . . . . . . . . . . . . . . . . . . . 73
3.9.2 GMMA Trend Outlook . . . . . . . . . . . . . . . . . . . . . 74
3.10 IchiMokuKonkuHyo . . . . . . . . . . . . . . . . . . . . . . . . . . 75
3.10.1 Conversion Crossing Base . . . . . . . . . . . . . . . . . . . 75
www.chartnexus.com
TABLE OF CONTENTS v
3.10.2 Position Of Line And Cloud . . . . . . . . . . . . . . . . . . 76

3.11 MA Envelope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
3.11.1 Price Below/Above The Lower/Upper Band . . . . . . . . . . 77
3.11.2 Price Just Touching/Crossing Bands . . . . . . . . . . . . . . 78
3.11.3 Price Touched Band And Rebounded/Retreated From Band . . 79
3.12 MACD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
3.12.1 MACD Centerline Crossover . . . . . . . . . . . . . . . . . . 80
3.12.2 MACD Crossing Signal Line . . . . . . . . . . . . . . . . . . 81
3.12.3 MACD Divergence With Price . . . . . . . . . . . . . . . . . 82
3.12.4 MACD Convergence With Price . . . . . . . . . . . . . . . . 83
3.12.5 MACD Trend . . . . . . . . . . . . . . . . . . . . . . . . . . 84
3.12.6 MACD Histogram Cycle . . . . . . . . . . . . . . . . . . . . 85
3.12.7 MACD In Specified Range . . . . . . . . . . . . . . . . . . . 86
3.12.8 MACD Trend With Signal . . . . . . . . . . . . . . . . . . . 87
3.13 Money Flow Index (MFI) . . . . . . . . . . . . . . . . . . . . . . . . 88
3.13.1 MFI Touched And Rebounded/Retreated From Limit . . . . . 88
3.13.2 MFI Crossing Limit . . . . . . . . . . . . . . . . . . . . . . 89
3.13.3 MFI Limit Exceeded . . . . . . . . . . . . . . . . . . . . . . 90
3.13.4 MFI Rebounding/Retreating In Oversold/Overbought Region . 91
3.13.5 MFI Rebounded/Retreated In Oversold/Overbought Region And
Touching/Crossing Limit . . . . . . . . . . . . . . . . . . . . 92
3.13.6 MFI In Specified Range . . . . . . . . . . . . . . . . . . . . 93
3.13.7 MFI Crossed 50% level . . . . . . . . . . . . . . . . . . . . . 94
3.13.8 MFI Failure Swing . . . . . . . . . . . . . . . . . . . . . . . 95
3.13.9 MFI Divergence With Price . . . . . . . . . . . . . . . . . . 96
3.13.10 MFI Convergence With Price . . . . . . . . . . . . . . . . . . 97
3.13.11 MFI Trend . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
3.14 Moving Average (MA) . . . . . . . . . . . . . . . . . . . . . . . . . 99
3.14.1 MA Dual Crossover . . . . . . . . . . . . . . . . . . . . . . 99
3.14.2 MA Triple Crossover . . . . . . . . . . . . . . . . . . . . . . 100
3.14.3 MA Price Crossover . . . . . . . . . . . . . . . . . . . . . . 102
3.14.4 MA as Support/Resistance . . . . . . . . . . . . . . . . . . . 103
www.chartnexus.com
TABLE OF CONTENTS vi
3.14.5 Price Close Between 2-MAs . . . . . . . . . . . . . . . . . . 104

3.14.6 MA Trend . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
3.14.7 Price Touching MA . . . . . . . . . . . . . . . . . . . . . . . 106
3.15 On Balance Volume (OBV) . . . . . . . . . . . . . . . . . . . . . . . 107
3.15.1 OBV Divergence With Price . . . . . . . . . . . . . . . . . . 107
3.15.2 OBV Convergence With Price . . . . . . . . . . . . . . . . . 108
3.15.3 OBV Trend . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
3.16 Parabolic Stop And Reversal . . . . . . . . . . . . . . . . . . . . . . 110
3.16.1 Parabolic Turns Green . . . . . . . . . . . . . . . . . . . . . 110
3.16.2 Parabolic Turns Red . . . . . . . . . . . . . . . . . . . . . . 111
3.17 Price Channel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
3.17.1 Price Touches Upper Band . . . . . . . . . . . . . . . . . . . 112
3.17.2 Price Touches Lower Band . . . . . . . . . . . . . . . . . . . 113
3.18 Relative Strength Index (RSI) . . . . . . . . . . . . . . . . . . . . . . 114
3.18.1 RSI Touched And Rebounded/Retreated From Limit . . . . . 114
3.18.2 RSI Crossing Limit . . . . . . . . . . . . . . . . . . . . . . . 115
3.18.3 RSI Limit Exceeded . . . . . . . . . . . . . . . . . . . . . . 116
3.18.4 RSI Rebounding/Retreating In Oversold/Overbought Region . 117
3.18.5 RSI Rebounded/Retreated In Oversold/Overbought Region And
Touching/Crossing Limit . . . . . . . . . . . . . . . . . . . . 118
3.18.6 RSI In Specified Range . . . . . . . . . . . . . . . . . . . . . 119
3.18.7 RSI Cross 50% Level . . . . . . . . . . . . . . . . . . . . . . 120
3.18.8 RSI Failure Swing . . . . . . . . . . . . . . . . . . . . . . . 121
3.18.9 RSI Divergence With Price . . . . . . . . . . . . . . . . . . . 122
3.18.10 RSI Convergence With Price . . . . . . . . . . . . . . . . . . 123
3.18.11 RSI Trend . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
3.19 Smoothed Relative Strength Index (Smoothed RSI) . . . . . . . . . . 125
3.19.1 Smoothed RSI Touched And Rebounded/Retreated From Limit 125
3.19.2 Smoothed RSI Crossing Limit . . . . . . . . . . . . . . . . . 126
3.19.3 Smoothed RSI Limit Exceeded . . . . . . . . . . . . . . . . . 127
3.19.4 Smoothed RSI Rebounding/Retreating In Oversold/Overbought
Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
www.chartnexus.com
TABLE OF CONTENTS vii
3.19.5 Smoothed RSI Rebounded/Retreated In Oversold/Overbought

Region And Touching/Crossing Limit . . . . . . . . . . . . . 129
3.19.6 Smoothed RSI In Specified Range . . . . . . . . . . . . . . . 130
3.19.7 Smoothed RSI Cross 50% Level . . . . . . . . . . . . . . . . 131
3.19.8 Smoothed RSI Failure Swing . . . . . . . . . . . . . . . . . . 132
3.19.9 Smoothed RSI Divergence With Price . . . . . . . . . . . . . 133
3.19.10 Smoothed RSI Convergence With Price . . . . . . . . . . . . 134
3.19.11 Smoothed RSI Trend . . . . . . . . . . . . . . . . . . . . . . 135
3.20 Stochastic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136
3.20.1 Stochastic Crossover . . . . . . . . . . . . . . . . . . . . . . 136
3.20.2 Stochastic Touched And Rebounded/Retreated From Limit . . 137
3.20.3 Stochastic Crossing Limit . . . . . . . . . . . . . . . . . . . 138
3.20.4 Stochastic Limit Exceeded . . . . . . . . . . . . . . . . . . . 139
3.20.5 Stochastic Rebounding/Retreating In Oversold/Overbought Re-
gion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
3.20.6 Stochastic Rebounded/Retreated In Oversold/Overbought Re-
gion And Touching Crossing Limit . . . . . . . . . . . . . . 141
3.20.7 Stochastic In Specified Range . . . . . . . . . . . . . . . . . 142
3.20.8 Stochastic Cross 50% Level . . . . . . . . . . . . . . . . . . 143
3.20.9 Stochastic Failure Swing . . . . . . . . . . . . . . . . . . . . 144
3.20.10 Stochastic Divergence With Price . . . . . . . . . . . . . . . 145
3.20.11 Stochastic Convergence With Price . . . . . . . . . . . . . . 146
3.20.12 Stochastic Trend . . . . . . . . . . . . . . . . . . . . . . . . 147
3.21 Williams %R . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148
3.21.1 Williams %R Touched And Rebounded/Retreated From Limit 148
3.21.2 Williams %R Crossing Limit . . . . . . . . . . . . . . . . . . 149
3.21.3 Williams %R Limit Exceeded . . . . . . . . . . . . . . . . . 150
3.21.4 Williams %R Rebounding/Retreating In Oversold/Overbought
Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
3.21.5 Williams %R Rebounded/Retreated In Oversold/Overbought
Region And Touching/Crossing Limit . . . . . . . . . . . . . 152
3.21.6 Williams %R In Specified Range . . . . . . . . . . . . . . . . 153
3.21.7 Williams %R Cross 50% Level . . . . . . . . . . . . . . . . . 154
www.chartnexus.com
TABLE OF CONTENTS viii
3.21.8 Williams %R Failure Swing . . . . . . . . . . . . . . . . . . 154

3.21.9 Williams %R Divergence With Price . . . . . . . . . . . . . . 155
3.21.10 Williams %R Convergence With Price . . . . . . . . . . . . . 156
3.21.11 Williams %R Trend . . . . . . . . . . . . . . . . . . . . . . . 157
3.21.12 Williams %R Cross Up MA Line . . . . . . . . . . . . . . . 158
3.21.13 Williams %R Cross Down MA Line . . . . . . . . . . . . . . 159
4 XPertTrader Library (XPL) 161

4.1 What Is XPertTrader Library (XPL) ? . . . . . . . . . . . . . . . . . 161
4.2 Getting Rule From XPL . . . . . . . . . . . . . . . . . . . . . . . . . 161
5 Candlestick Patterns Detection 163

5.1 Editing Candlestick Patterns . . . . . . . . . . . . . . . . . . . . . . 164
5.2 Capturing Candlestick Patterns . . . . . . . . . . . . . . . . . . . . . 166
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
7 Frequently Asked Questions (FAQs) 174

7.1 Subscription Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . 174
7.2 Reporting Error . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174
A Glossary 177
B Graphical User Interface (GUI) Glossary 193
www.chartnexus.com
Chapter 1
Introduction
1.1 What Are Add-ons ?
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
NOTE: Historical data will be one-time fee instead of subscription-based.
1.2 Add-ons Available
These are the Add-ons that are available for subscription:
• XPertTrader Indicators : This module contains the commonly used technical

indicators which you can mix and match to create more sophisticated rules.
• XPertTrader Candlesticks : This module includes the commonly used Japanese
candlestick patterns. It also comes with an editor to let you create your own pat-
terns easily.
• INDIA (BSE, NSE) 10 years adjusted historical data (one-time fee).
• HKSE 10 years adjusted historical data (one-time fee).
• JSX 10 years adjusted historical data (one-time fee).
www.chartnexus.com
1.3. Benefits of Using Add-ons 2
• KLSE or Bursa 10 years adjusted historical data (one-time fee).

• SGX 10 years adjusted historical data (one-time fee).
• US (AMEX, NASDAQ, NYSE) 10 years adjusted historical data (one-time

fee).
• ChartMaker : Let you create professional-looking charts easily with superb
customization.
1.3 Benefits of Using Add-ons
We adopted this modular, subscription-based approach as we think it will benefit both

you (the user) and us (the user and developer).
1. Changing times require evolving capabilities. As the Market evolves, traders

and investors are increasingly employing sophisticated software to assist them in
their investments. Compared to one-off-one-time-fee charting software, having
a subscription-based software guarantees that you are always at the forefront to
explore new capabilities and enhancements.
2. New versions and features upgrades are free. Since you are on a subscription
plan, we will keep on adding new features, introducing enhancements or releas-
ing fixes related to the module for free to you for the entire duration of your
subscrption period.
3. Pay for what you need. Why pay for software with 80% of the functions that
you will hardly ever used ? With our add-on modules, you can mix and match
the modules and subscribe to those that you truly need.
4. Money back guarantee. We believe in giving you only the best. If within the
period of refund (see our subscription policy http://www.chartnexus.com/
legal/software.php) you’re not satisfied or happy with the Add-ons, we will
refund you.
1.4 How To Subscribe ?
To subscribe to any of the Add-ons (see Section 1.2), please visit

http://www.chartnexus.com/products/addons.php.
1.5 Subscription Information
To check your subscription information, you can access it through the Menu Bar
www.chartnexus.com
1.5. Subscription Information 3
1.5.1 Checking subscription information
The subscription information window will contains about the details of your active
subscription.
Figure 1.1: Subscription information window.
1.5.2 Updating subscription information
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.
1.5.3 Renewing subscription
ChartNexus will automatically prompt you when any of your modules are nearing ex-
piry. To renew your subscription, click on the Renew button.
www.chartnexus.com
1.5. Subscription Information 4
To renew your subscription,

http://www.chartnexus.com/products/subscribe.php.
www.chartnexus.com
Chapter 2
ChartNexus XPertTrader
2.1 What Is 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.
2.1.1 Components of ChartNexus XPertTrader
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.
2.1.2 Key features of ChartNexus XPertTrader
Key features of ChartNexus XPertTrader include:
• No complicated programming or scripting required. All you need is click to add,

remove and shuffle to construct rules.
• Logical operators such as AND, OR to let you construct sophisticated rules
• Power to detect candlestick patterns, indicators or price/volume breakouts and
more with superb ease
• Flexibility to customize parameters of the indicators/rules
www.chartnexus.com
2.2. Why Use ChartNexus XPertTrader ? 6
• Easy-to-use user interface

• Illustration diagrams of buy/sell signals to provide easy understanding
NOTE: ChartNexus XPertTrader is an add-on module of ChartNexus available for

monthly subscription. See
http://www.chartnexus.com/products/addons.php
NOTE #2: You can now try out with ChartNexus XPertTrader TestDrive to see how
ChartNexus XPertTrader looks like and how it works to give you better overall under-
standing of its functions and capabilities.
2.2 Why Use ChartNexus XPertTrader ?

• Eliminate emotion & achieving consistency
Emotion is often the culprit in irrational decision making when it’s time to buy
or sell stock. Consequently, investors/traders either end up taking profit too early
or end up losing a lot of money.
By following a well-developed, tested and customized trading system that you
create, the system will automate the decision-making process thereby eliminat-
ing emotional, irrational decision, more importantly having consistent results.
• Uncover potential trade candidates
By defining a set of rules and coupled with our screener, it is now possible to
screen for large number of potential hidden gem stocks for investing/trading pur-
pose across various markets with otherwise be either impractical or infeasible.
• Free up your precious time
Time is money. Once you have established your own customized trading system
using your own set of rules, the process of tracking and spotting stocks can be
fully automated. You are then free to channel your energy and time on analysis
and uncovering hidden stocks which would otherwise be overly time-consuming
to spot them manually.
• Trading system made easy
Building up a trading system can be a complex and challenging process. Why
bother with scripting or learning another programming language just to build
your own trading system ? Let us worry about the gory details of the software
code, and you focus on building up your trading system.
• Easily test our your idea and refine your strategy
Got a trading idea and want to test it out to see how it works ? With our Back-
tester, you can convert your ideas into rules and test it out and then continuously
refine and tweak the rules until you hit the right spot.
2.3 Starting ChartNexus XPertTrader
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
www.chartnexus.com
2.4. Rules Composer 7
Figure 2.2.:
Figure 2.1: Starting ChartNexus XPertTrader.
2.4 Rules Composer
Figure 2.2: ChartNexus XPertTrader main window - Rules Composer.
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:
www.chartnexus.com
1. List of available rules from General, Indicators and Candlesticks.

2. Graphical illustrations of rules and the triggering signals are shown here.
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.
5. The rules that you have composed.

6. The drop-down list will contain all the rules that you saved. On the right side
of the list, there are buttons where you can save, remove, import and export the
rules.
7. Text representation of the rules that you created/selected.
2.4.1 Types of rules
There are three basic sets of rules that you can use to form your own trading strategy:
1. General - rules based on price, volume and so on.

2. Indicators - technical indicators.
3. Candlesticks - Japanese candlesticks or your self-created patterns.
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
www.chartnexus.com
2.4.2 Changing rules parameters
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.
Figure 2.3: Rules Composer - changing 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.
www.chartnexus.com
2.4.3 Importing rules
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).
1) Go to the webpage http://www.chartnexus.com/xpl. Right click with your

mouse on the rule that you are interested to import into ChartNexus XPertTrader.
A pop up menu will appear as follow. Click on Save Target As ... to save the
rule.
Figure 2.4: Saving selected 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).
www.chartnexus.com
Figure 2.5: Saving rules on to your Desktop.
Figure 2.6: Select the file type.
www.chartnexus.com
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.
Figure 2.8: Double click on the saved rule to import.
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.
www.chartnexus.com
Figure 2.9: Successfully imported the saved rule.
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 !
Figure 2.10: Saved rule loaded into Rules Composer.
www.chartnexus.com
2.5. Stock Screener 14
2.5 Stock Screener
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.
Figure 2.11: Stock Screener window.
Listed below are descriptions on Stock Screener functions:
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.
4. Additional screening configurations.

5. Screen for stocks exhibiting buy or sell signal. Using a buy rule to screen for sell
signal won’t work and vice versa.
6. Button to start the screening process.
www.chartnexus.com
7. Display the screening results.

8. Click this to minimize the XPertTrader window to view XP-triggered signals on
charts.
9. Click to save the screening result (either the rules or rules + results).
2.5.1 Changing Stock Screener settings
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.
Figure 2.12: XPertTrader - Stock Screener’s general settings.
www.chartnexus.com
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.
Figure 2.13: XPertTrader - market trend.
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.
www.chartnexus.com
2.6. Backtester 17
c) Range-bound.
In addition the user can specify (or customize) the trend:
a) Short term (10 days by default).

b) Mid-term (21 days by default).
c) Long-term (50 days by default).
2.5.2 Viewing results
When the screening process is completed, the results will be displayed in the table
shown in Figure 2.11(7).
Viewing results on chart
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).
2.5.3 Saving results
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
b) Save rules and results
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:
www.chartnexus.com
2.6. Backtester 18
Figure 2.14: Backtester
1. Buy/sell rules selection.

2. Scope of rules to be applied to: by market, market sector, user’s defined watch-
lists.
3. Define backtesting period.
4. Portfolio strategy.
5. Initial capital allocated for the backtesting.
6. Brokerage fee.
7. Button to start the backtesting process.
8. Display results from backtesting.
9. Click to show the performance statistic table of backtesting result.
10. Click to minimize the XPertTrader window to view XP-triggered signals on
charts.
11. Click to save the backtesting result.
www.chartnexus.com
2.6. Backtester 19
2.6.1 Changing Backtester settings
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
The General Settings window is shown in Figure 2.15.
www.chartnexus.com
2.6. Backtester 20
Figure 2.15: XPertTrader - Backtester’s general settings.
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
www.chartnexus.com
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
The Market Trend window is shown in Figure 2.16.
Figure 2.16: XPertTrader - market trend.
By clicking on the relevant checkbox, you can specify to backtest stocks using any of
the following conditions:
a) Uptrend.
www.chartnexus.com
2.6. Backtester 22
b) Downtrend.
c) Range-bound.
In addition, you can specify (or customize) the trend:
a) Short term (10 days by default).

b) Mid-term (21 days by default).
c) Long-term (50 days by default).
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
The Capital Allocation window is shown in Figure 2.17.
www.chartnexus.com
2.6. Backtester 23
Figure 2.17: XPertTrader - capital allocation.
The Allocation Method can be set to:
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.
www.chartnexus.com
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.
Figure 2.18: XPertTrader - portfolio strategy.
www.chartnexus.com
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.
Figure 2.19: XPertTrader - Stops
2.6.2 Viewing results
When the backtesting process is completed, the results will be displayed in the table
shown in Figure 2.14(8).
www.chartnexus.com
2.6. Backtester 26
Viewing triggered rules
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.
Viewing results on chart
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).
Viewing Performance statistics table
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.
Here are the definition for each statistical terms:
www.chartnexus.com
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)).
d) Capital available (assume profit not-reinvest)

The amount of cash on hand assuming that you do not want to reinvest your
profits.
NOTE: Cash on hand and Capital available (assume profit not-reinvest) will be
similar if users do not uncheck the checkbox of Profits Allocation in Configure
Capital Allocation then Profits Allocation or there is no profitable trade.
e) Return on trades (%)

Percentage gain/loss of all the trades done.
f) Return on capital (%)
Percentage gain/loss after closing off all the positions.
g) Total number of trades
The amount of trades that have been done.
h) Total net profit/loss
The amount of profit/loss of all the trades done.
i) Percentage profits (%)
Percentage of profitable trades of all the trades done.
j) Highest portfolio value
The highest transaction fee among all trades done.
k) Open positions
Number of long/short positions that are still not closed.
l) Open positions profit/loss
Profit/loss of the open positions.
m) Total commission paid
The amount of commission paid for the trades made.
n) Profit of profitable trades
The amount of money gained for all profitable trades.
o) Average profit
Average amount of money gained for all profitable trades.
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.
www.chartnexus.com
2.6. Backtester 28
r) Largest profitable trade commission

The commission paid for the most profitable trade.
s) Commission paid for profitable trades

Total commission paid for all profitable trades.
t) Average commission paid for profitable trades
Average commission paid for all profitable trades.
u) Loss of unprofitable trades
The amount of money lost for all unprofitable trades.
v) Average loss
Average amount of money lost for all unprofitable trades.
w) Largest loss
The amount of money lost in the most unprofitable trade.
x) Smallest loss
The amount of money lost in the least unprofitable trade.
y) Largest loser commission
The commission paid for the most unprofitable trade.
z) Commission paid for unprofitable trades
Total commission paid for all unprofitable trades.
a2) Average commission paid for unprofitable trades
Average commission paid for all unprofitable trades.
b2) Total profitable trades
Total profitable trades within the Backtester period.
c2) Profitable long trades
Total profitable long trades (i.e. buy, then sell) within the Backtester period.
d2) Profitable short trades
Total profitable short trades (i.e. sell, then buy) within the Backtester period.
e2) Total unprofitable trades
Unprofitable trades within the Backtester period.
f2) Unprofitable long trades
Total unprofitable long trades (i.e. buy, then sell) within the Backtester period.
g2) Unprofitable short trades
Total unprofitable short trades (i.e. sell, then buy) within the Backtester period.
2.6.3 Saving results
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:
www.chartnexus.com
2.6. Backtester 29
a) Save rules
b) Save rules and results
www.chartnexus.com
Chapter 3
ChartNexus XPertTrader
Parameters Explained
3.1 Overview
We have pre-defined a set of common rules in ChartNexus XPertTrader which can be

used by you to build your own trading system. Based on these set of rules, you can
easily mix and match and customize the parameters of each of the rule without the
need to worry about programming any of the rule yourself.
There are altogether three categories of rules that are found in ChartNexus XPertTrader
namely (a) General (b) Indicators (c) Candlesticks. For each of the rule, they are a buy
and sell rule for it. Depending on what you want to do, you can easily compose the
buy/sell rule with just few click of the mouse buttons.
Here in this chapter, we will attempt to explain as detailed as possible all the rules that
are present in ChartNexus. Should you find that it’s unclear, feel free to write to us.
Also, if you have any request for any rules that seem to be missing from the set, drop
us a mail through our website.
3.2 General Rules
3.2.1 Fibonacci Retracement

• Buy - Fibonacci retracement around X%
30
www.chartnexus.com
3.2. General Rules 31
Figure 3.1: Fibonacci Retracement.
• Sell - Fibonacci retracement around X%
Parameters available:
• t - the duration/window used for calculation

• t1 - the minimum duration preceding the peak/trough to attain x1% higher/lower
from the previous price
• t2 - the minimum duration succeeding the peak/trough to attain x2% lower/higher
from the previous price
• x1 - the minimum percentage preceding the peak/trough for a given t1 duration
• x2 - the minimum percentage suceeding the peak/trough for a given t2 duration
• ph - the maximum percentage before price is triggered above Fibonacci level
• pl - the maximum percentage before price is triggered below Fibonacci level
• Fib level 1(%) - 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
www.chartnexus.com
• 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
• if we set the data type to:

(1) Progressive Data The system will consider 25th, 26th, 27th up till 28th June
ie the latest trading date where the data is available to the system. Essentially,
the system treats as if the week has ended on 28th June or up to the point where
the trading data is available.
(2) Completed Data Contrast this with (1), the system will not consider the data
from 25th to 28th June under this setting since there is still tomorrow, 29th June
which is a trading day, before the week ends/completes. The system will con-
sider only the prior week 18th to 22nd June, where it is the last/latest week with
full/completed data.
3.2.2 Price Increase
Figure 3.2: Price Increase.
• Buy - Price has increased by at least t% in the past p days/weeks/months

• Sell - Price has increased by at least t% in the past p days/weeks/months
• t - the duration leading to the p% price increase
www.chartnexus.com
• p - the minimum percentage of the increase in price

• Rule type - please refer to 3.2.1 for details
• Data type - please refer to 3.2.1 for details
3.2.3 Price Decrease
Figure 3.3: Price Decrease.
• Buy - Price has decreased by at least t% in the past p days/weeks/months

• Sell - Price has decreased by at least t% in the past p days/weeks/months
• t - the duration leading to the p% price decrease

• p - the minimum percentage of the decrease in price
www.chartnexus.com
3.2.4 Prices at/near Historical High
Figure 3.4: Prices at/near Historical High.
• Buy - Price at/near historical high X

• Sell - Price at/near historical high X
• 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
• Intraday/Close - if Intraday is selected, the day-high price will be used other-

wise close price will be used
www.chartnexus.com
3.2.5 Prices at/near Historical Low
Figure 3.5: Prices at/near Historical Low.
• Buy - Price at/near historical low X

• Sell - Price at/near historical low X
• 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
www.chartnexus.com
3.2.6 Price Breakout Bullish
Figure 3.6: Price Breakout Bullish.
• Buy - Price breaks out from the high of preceding t days/weeks/months

• Sell - Price breaks out from the high of preceding t days/weeks/months
• t - the period to be used for finding new high

• Intraday/Close - if Intraday, high price will be used. if Close, close price will
be used
www.chartnexus.com
3.2.7 Price Breakout Bearish
Figure 3.7: Price Breakout Bearish.
• Buy - Price breaks down from the low of preceding t days/weeks/months

• Sell - Price breaks down from the low of preceding t days/weeks/months
• t - the period used for finding new low

• Intraday/Close - if Intraday, high price will be used. if Close, close price will
be used
www.chartnexus.com
3.2.8 Price In Range Bound
Figure 3.8: Price In Range Bound.
• Buy - Price range bound between p% and p%

• Sell - Price range bound between p% and p%
• t - the period where the price move within the range

• p% - sets the minimum and maximum percentage where the price can occur
• Intraday/Close - if Intraday, high and low price will be used for calculation of
the highest price and lowest price otherwise close price will be used
www.chartnexus.com
3.2.9 Volume Increase
Figure 3.9: Volume Increase.
• Buy - Average volume has increased by at least v%

• Sell - Average volume has increased by at least v%
• t1 - the period used for calculation of volume v1

• v - the minimum percentage of volume increment
www.chartnexus.com
3.2.10 Volume Decrease
Figure 3.10: Volume Decrease.
• Buy - Average volume has fallen by at least v%

• Sell - Average volume has fallen by at least v%

• v - the minimum percentage of volume decrement
www.chartnexus.com
3.3. Accumulation/Distribution Line 41
3.3 Accumulation/Distribution Line
3.3.1 Acc/Dis Divergence With Price
Figure 3.11: Acc/Dis Divergence With Price.
• Buy - Acc/Dis is increasing while price is decreasing

• Sell - Acc/Dis is decreasing while price is increasing
• 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.
www.chartnexus.com
3.3.2 Acc/Dis Convergence With Price
Figure 3.12: Acc/Dis Convergence With Price.
• Buy - Acc/Dis is increasing while price is increasing

• Sell - Acc/Dis is decreasing while price is decreasing
• Max Convergence Period - the maximum duration where the convergence oc-
curs
• Min Convergence Period - the minimum duration where the convergence oc-
curs
which price and Acc/Dis converge
• Acc/Dis Slope - the minimum slope of the moving average of Acc/Dis
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.
www.chartnexus.com
3.3.3 Acc/Dis Trend
Figure 3.13: Acc/Dis Trend.
• Buy - Acc/Dis is trending upwards

• Sell - Acc/Dis is trending downwards
• t - the period where the Acc/Dis has been trending

• Slope - the minimum slope of the moving average of Acc/Dis when it is trending
• MA period - the period used for the moving average calculation of Acc/Dis
www.chartnexus.com
3.4. Average Directional index (ADX) 44
3.4 Average Directional index (ADX)
3.4.1 ADX Below 20-Level
Figure 3.14: ADX Below 20-Level.
• Buy - ADX line is below 20-level

• Sell - ADX line is below 20-level
• Period - the period used for calculating ADX

www.chartnexus.com
3.4.2 ADX Above 40-Level
Figure 3.15: ADX Above 40-Level.
• Buy - ADX line is above 40-level

• Sell - ADX line is above 40-level

www.chartnexus.com
3.4.3 ADX In Specified Range
Figure 3.16: ADX In Specified Range.
• Buy - ADX at X is in range (min,max)

• Sell - ADX at X is in range (min,max)

• Min - minimum value of the range
• Max - maximum value of the range
www.chartnexus.com
3.4.4 ADX Crosses Up 20-Level
Figure 3.17: ADX crosses above the 20-Level.
• Buy - ADX crosses above 20-level

• Sell - ADX crosses above 20-level

www.chartnexus.com
3.4.5 ADX Crosses Down 20-Level
Figure 3.18: ADX crosses below the 20-Level.
• Buy - ADX crosses below 20-level

• Sell - ADX crosses below 20-level

www.chartnexus.com
3.4.6 ADX Crosses Up 40-Level
Figure 3.19: ADX Crosses Up 40-Level.
• Buy - ADX crosses above the 40-level

• Sell - ADX crosses above the 40-level

www.chartnexus.com
3.4.7 ADX Crosses Down 40-Level
Figure 3.20: ADX Crosses Down 40-Level.
• Buy - ADX crosses below the 40-level

• Sell - ADX crosses below the 40-level

www.chartnexus.com
3.4.8 ADX (+DI/-DI) Crossover
Figure 3.21: ADX (+DI/-DI) Crossover.
• Buy - +DI crosses over -DI

• Sell - -DI crosses over +DI

• x - the minimum difference between +DI and ADX after the crossover
• t - the maximum duration within which x is reached
www.chartnexus.com
3.4.9 + DI Cross Up ADX
Figure 3.22: +DI Cross Up ADX.
• Buy - +DI crosses up ADX

• Sell - +DI crosses up ADX

• x - the minimum difference between +DI and ADX after the crossover
• t1 - the periods that ADX is above +DI
• t2 - the maximum duration within which x is reached
www.chartnexus.com
3.4.10 + DI Cross Down ADX
Figure 3.23: +DI Cross Down ADX.
• Buy - +DI crosses down ADX

• Sell - +DI crosses down ADX

• x - the minimum difference between ADX and +DI after the crossover
• t1 - the periods that +DI is above ADX
www.chartnexus.com
3.4.11 - DI Cross Up ADX
Figure 3.24: -DI Cross Up ADX.
• Buy - -DI crosses Up ADX

• Sell - -DI crosses Up ADX

• x - the minimum difference between -DI and ADX after the crossover
• t1 - the periods that ADX is above -DI
www.chartnexus.com
3.4.12 - DI Cross Down ADX
Figure 3.25: -DI Cross Down ADX.
• Buy - -DI crosses Down ADX

• Sell - -DI crosses Down ADX

• x - the minimum difference between ADX and -DI after the crossover
• t1 - the periods that -DI is above ADX
www.chartnexus.com
3.5. Bollinger Bands 56
3.5 Bollinger Bands
3.5.1 Bollinger Bands - Price Below/Above The Lower/Upper Band
Figure 3.26: Bollinger Bands - Price Below/Above The Lower/Upper Band.
• Buy - Price is below lower band

• Sell - Price is above upper band
• 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
www.chartnexus.com
3.5.2 Bollinger Bands - Price Just Touching/Crossing Band
Figure 3.27: Bollinger Bands - Price Just Touching/Crossing Band.
• Buy - Price touches or crosses lower band

• Sell - Price touches or crosses upper band
line
www.chartnexus.com
3.5.3 Bollinger Bands - Price Touched Band And Rebounded/Retreated

From Band
Figure 3.28: Bollinger Bands - Price Touched Band And Rebounded/Retreated From
Band.
• Buy - Price rebounds from lower band

• Sell - Price retreats from upper band
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%
• t - the maximum number of periods that price rebounded(buy)/retreated(sell)

www.chartnexus.com
3.5.4 Bollinger Bands Squeeze
Figure 3.29: Bollinger Bands Squeeze.
• Buy - Bollinger Bands Squeeze

• Sell - Bollinger Bands Squeeze
line
• p(%) - the maximum percentage difference between upper and lower bands

www.chartnexus.com
3.6. Chaikin Money Flow (CMF) 60
3.6 Chaikin Money Flow (CMF)
3.6.1 CMF Crossing Zero
Figure 3.30: CMF Crossing Zero.
• Buy - CMF crosses above centerline

• Sell - CMF crosses below centerline
• Period - the time period used for the calculation of CMF

• x - the minimum distance that price traveled above(buy)/below(sell) zero

www.chartnexus.com
3.6.2 CMF Sustained Pressure
Figure 3.31: CMF Sustained Pressure.
• Buy - CMF above centerline for a long time

• Sell - CMF below centerline for a long time
• Period - the time period used for the calculation of CMF

• x - the minimum distance that price traveled above(buy)/below(sell) zero
• t - the minimum number of periods for CMF to stay above(buy)/below(sell) zero
www.chartnexus.com
3.6.3 CMF Divergence With Price
Figure 3.32: CMF Divergence With Price.
• Buy - CMF is increasing while the price is decreasing

• Sell - CMF is decreasing while the price is increasing
which price and CMF diverge
• CMF Slope - the minimum slope of the moving average of CMF
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
www.chartnexus.com
3.6.4 CMF Convergence With Price
Figure 3.33: CMF Convergence With Price.
• Buy - CMF is increasing while the price is increasing

• Sell - CMF is decreasing while the price is decreasing
curs
curs
which price and CMF converge
• CMF Slope - the minimum slope of the moving average of CMF
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
• CMF Period - period used for the calculation of CMF
www.chartnexus.com
3.6.5 CMF Trend
Figure 3.34: CMF Trend.
• Buy - CMF is trending upward

• Sell - CMF is trending downward
• Period - period used for the calculation of CMF

• t - the number of periods that CMF has been trending
• Slope - the minimum slope of the moving average when it is trending
• MA Period - period used for the calculation of moving average
www.chartnexus.com
3.7. Commodity Channel Index (CCI) 65
3.7 Commodity Channel Index (CCI)
3.7.1 CCI lies above/below +100/-100
Figure 3.35: CCI lies above/below +100/-100.
• Buy - CCI lies below -100

• Sell - CCI lies above +100
• Period - the number of time periods used in the calculation of CCI

• x - the minimum amount where CCI has to lie above +100(sell) or below -
100(buy)
• 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
www.chartnexus.com
3.7.2 CCI Centerline Crossover
Figure 3.36: CCI Centerline Crossover.
• Buy - CCI crosses over centerline

• Sell - CCI crosses below centerline
• Period - the number of periods used in the calculation of CCI

• x - the minimum amount where CCI has to move above(buy) or below(sell) the
centerline after a bullish or bearish crossover respectively
• t - the maximum number of periods for CCI to rise by x above(buy) or be-
low(sell) the centerline after the bullish or bearish crossover respectively
www.chartnexus.com
3.7.3 CCI rebounding/retreating in the regions below/above -100/+100
Figure 3.37: CCI rebounding/retreating in the regions below/above -100/+100.
• Buy - CCI rebounds from low in region below -100

• Sell - CCI retreats from high in region above +100

• x - the minimum amount that CCI has to rebound(buy)/retreat(sell) from its
low/high in the regions below/above -100/+100
• t - the maximum number of periods for CCI for x to develop
www.chartnexus.com
3.7.4 CCI Rebounded/Retreated Regions below/above -100/+100

And Touching/Crossing -100/+100
Figure 3.38: CCI Rebounded/Retreated Regions below/above -100/+100 And Touch-

ing/Crossing -100/+100.
• Buy - CCI crosses back -100 from low in the region below -100
• Sell - CCI crosses back +100 from high in the region above +100

• x - the minimum amount between the low and the -100 level(buy) or between the
high and the +100 level(sell)
• x Margin - if value is set to 3 means x changes within +/- 3
• t - the maximum number of periods for x to develop
www.chartnexus.com
3.8. Force Index 69
3.8 Force Index
3.8.1 Force Index Crossup Centerline
Figure 3.39: Force Index Crossup Centerline.
• Buy - force index crosses up centerline

• Sell - force index crosses up centerline
• 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
• 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
www.chartnexus.com
3.8. Force Index 70
3.8.2 Force Index Crossdown Centerline
Figure 3.40: Force Index Crossdown Centerline.
• Buy - force index crosses down centerline

• Sell - force index crosses down centerline
• MA Period - the period used for the moving average calculation of the Force
Index
ple moving average
• t1 - the periods that moving average of Force Index is above Center Line

• x - the minimum distance between Center Line and moving average of Force
Index after the crossover
www.chartnexus.com
3.8. Force Index 71
3.8.3 Force Index Divergence with Price
Figure 3.41: Force Index Crossdown Centerline.
• Buy - Force Index is increasing with price still moving down

• Sell - MACD is decreasing with price still moving up
• Min Overlap Length - minimum number of overlapping periods during which
price and Force Index converge
• Force Index Slope - the minimum slope of the moving average of Force Index
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
www.chartnexus.com
3.8. Force Index 72
3.8.4 Force Index Convergence with Price
Figure 3.42: Force Index Convergence with Price.
• Buy - Force Index is increasing with price still moving down

curs
curs
• Min Overlap Length - minimum number of overlapping periods during which

price and Force Index converge
• Force Index Slope - the minimum slope of the moving average of Force Index
price
• Force Index MA Period - the period used for the moving average calculation of
the price
• Force Index On Right -
www.chartnexus.com
3.9. Guppy Multiple Moving Average (GMMA) 73
3.9 Guppy Multiple Moving Average (GMMA)
3.9.1 GMMA Crossover
Figure 3.43: GMMA Crossover.
• Buy - Bullish crossover of the EMA lines

• Sell - Bearish crossover of the EMA lines
• 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
www.chartnexus.com
3.9. Guppy Multiple Moving Average (GMMA) 74
3.9.2 GMMA Trend Outlook
Figure 3.44: GMMA Trend Outlook.
• Buy - GMMA shows trend is bullish with short- over long-term EMAs
• Sell - GMMA shows trend is bearish with long- over short-term EMAs
• d - the number of periods where the EMA lines must not cross each other
www.chartnexus.com
3.10. IchiMokuKonkuHyo 75
3.10 IchiMokuKonkuHyo
3.10.1 Conversion Crossing Base
Figure 3.45: Conversion Crossing Base.
• Buy - Conversion Line crosses Base Line

• Sell - Base Line crosses Conversion Line
• Conversion Period - the number of conversion periods used in the calculation

of Conversion Line
• Base Period - the number of base periods used in the calculation of Base Line
• Span Leading Period - the number of span leading periods used in the calcula-
tion of Cloud
• 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
www.chartnexus.com
3.10. IchiMokuKonkuHyo 76
3.10.2 Position Of Line And Cloud
Figure 3.46: Position Of Line And Cloud.
• Buy - Conversion/Base line below/inside/above cloud

• Sell - Conversion/Base line below/inside/above cloud
• Conversion Period - the number of conversion periods used in the calculation

of Conversion Line
• Base Period - the number of base periods used in the calculation of Base Line
• Span Leading Period - the number of span leading periods used in the calcula-
tion of Cloud
• Span B Period - the number of span B periods used in the calculation of Cloud
• Line - conversion/base line
• Position - below/inside/above cloud
www.chartnexus.com
3.11. MA Envelope 77
3.11 MA Envelope
3.11.1 Price Below/Above The Lower/Upper Band
Figure 3.47: Price Below/Above The Lower/Upper Band.
• Buy - Price is below lower band

• Sell - Price is above upper band
• Period - the number of periods used in the calculation of moving average

• Exponential - Select ’yes’ to use exponential moving average otherwise use
simple moving average
• Envelope - the percentage used to calculate upper band and lower band
www.chartnexus.com
3.11.2 Price Just Touching/Crossing Bands
Figure 3.48: Price Just Touching/Crossing Bands.
• Buy - Price touches or crosses lower band

• Sell - Price touches or crosses upper band

www.chartnexus.com
3.11.3 Price Touched Band And Rebounded/Retreated From Band
• Buy - Price rebounds from lower band

• Sell - Price retreats from upper band

• x(%) - the minimum percentage of amount that price rebounded(buy)/retreated(sell)
from limit
• x Margin(%) - if value is set to 1 means price rebounded(buy)/retreated(sell)
within x +/- 1%
• t - the maximum number of periods for the rebound/retreat to happen
www.chartnexus.com
3.12. MACD 80
3.12 MACD
3.12.1 MACD Centerline Crossover
Figure 3.49: MACD Centerline Crossover.
• Buy - MACD crosses over centerline

• Sell - MACD crosses below centerline
• 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
Setting Both EMA Periods

What does MACD crossing centerline or MACD=0 means? It means that the difference
between both Moving Averages are zero or you can interpret it as crossing of moving
averages. This will be the same as applying MA Dual Crossover rule. Hence, your
choice of MA periods largely depends on your investment horizon. The typical settings
for short term trading are 12-day and 26-day MA. In this case, when MACD crosses
over centerline, we have EMA(12) crossing over EMA(26) which indicates a bullish
signal. Re: Exponential Moving Average (EMA) is used for MA calculation in MACD.
www.chartnexus.com
3.12. MACD 81
Setting “Signal Period”

The setting for “Signal Period” is insignificant in this rule as we concern only on
MACD line crossing the centerline.
3.12.2 MACD Crossing Signal Line
Figure 3.50: MACD Crossing Signal Line.
• Buy - MACD crosses over signal line

• Sell - MACD crosses below signal line
• 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
Setting for Short,Long and Signal Periods

Your choice of MA periods largely depends on your investment horizon. The typical
settings for MACD are 12-day, 26-day and 9-day for Signal Period. You can interpret
www.chartnexus.com
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.
3.12.3 MACD Divergence With Price
Figure 3.51: MACD Divergence With Price.
• Buy - MACD is increasing with price still moving down
which price and MACD converge
www.chartnexus.com
3.12. MACD 83
• MACD Slope - the minimum slope of the moving average of MACD
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
3.12.4 MACD Convergence With Price
Figure 3.52: MACD Convergence With Price.
• Buy - MACD is increasing with price moving up

• Sell - MACD is decreasing with price moving down
www.chartnexus.com
3.12. MACD 84
curs
curs
which price and MACD converge
• MACD Slope - the minimum slope of the moving average of MACD
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
• 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
3.12.5 MACD Trend
Figure 3.53: MACD Trend.
www.chartnexus.com
3.12. MACD 85
• Buy - MACD is trending upwards

• Sell - MACD is trending downwards
• t - the number of periods that MACD has been trending

• Slope - the minimum slope of the moving average of MACD when it is trending
• MA Period - the number of periods used for the period of the moving average
of MACD
3.12.6 MACD Histogram Cycle
Figure 3.54: MACD Histogram Cycle.
• 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
www.chartnexus.com
3.12. MACD 86
• 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
3.12.7 MACD In Specified Range
Figure 3.55: MACD In Specified Range.
• Buy - MACD in positive region/MACD in negative region

• Sell - MACD in positive region/MACD in negative region
www.chartnexus.com
3.12. MACD 87
• m - MACD is in positive region if m=1, negative region if m=0
3.12.8 MACD Trend With Signal
Figure 3.56: MACD Trend With Signal.
• Buy - Signal line is below(uptrend)/above(downtrend) MACD

• Sell - Signal line is below(uptrend)/above(downtrend) MACD
• Signal Line - signal line is below/above MACD
www.chartnexus.com
3.13. Money Flow Index (MFI) 88
3.13 Money Flow Index (MFI)
3.13.1 MFI Touched And Rebounded/Retreated From Limit
Figure 3.57: MFI Touched And Rebounded/Retreated From Limit.
• Buy - MFI rebounding from lower limit to X

• Sell - MFI retreating from upper limit to X
• Period - period of MFI

• Lower Limit - lower limit of MFI
• Upper Limit - upper limit of MFI
• Limit Margin - if value sets to ‘1’ means MFI touched and rebounded(buy)/retreated(sell)
from lower(buy)/upper(sell) limit +/- 1
• x - the amount that MFI rebounded(buy)/retreated(sell) from lower(buy)/upper(sell)
limit
• x Margin - if value sets to ‘3’ means MFI rebounded(buy)/retreated(sell) within
x +/- 3
• t - the maximum number of periods for the rebound(buy)/retreat(sell) to happen
www.chartnexus.com
3.13.2 MFI Crossing Limit
Figure 3.58: MFI Crossing Limit.
• Buy - MFI just enters oversold region

• Sell - MFI just enters overbought region

• t - the minimum number of periods MFI to be above(buy)/below(sell) lower(buy)/upper(sell)

limit before crossing over
www.chartnexus.com
3.13.3 MFI Limit Exceeded
Figure 3.59: MFI Limit Exceeded.
• Buy - MFI at X is in oversold region

• Sell - MFI at X is in overbought region

www.chartnexus.com
3.13.4 MFI Rebounding/Retreating In Oversold/Overbought Re-

gion
Figure 3.60: MFI Rebounding/Retreating In Oversold/Overbought Region.
• Buy - MFI rebounds from low in oversold region

• Sell - MFI retreats from high in overbought region

• x - the minimum amount that MFI rebounded(buy)/retreated(sell) from lower(buy)/upper(sell)
limit
www.chartnexus.com
3.13.5 MFI Rebounded/Retreated In Oversold/Overbought Region

And Touching/Crossing Limit
Figure 3.61: MFI Rebounded/Retreated In Oversold/Overbought Region And Touch-

ing/Crossing Limit.
• Buy - MFI crosses back lower limit from oversold region

• Sell - MFI crosses back upper limit from overbought region

• x - the minimum amount that MFI rebounded/retreated from lower(buy)/upper(sell)
limit
• x Margin - if value sets to ‘3’ means MFI rebounded/retreated within x +/- 3
www.chartnexus.com
3.13.6 MFI In Specified Range
Figure 3.62: MFI In Specified Range.
• Buy - MFI at X is in range (min, max)

• Sell - MFI at X is in range (min, max)

www.chartnexus.com
3.13.7 MFI Crossed 50% level
Figure 3.63: MFI Crossed 50% level.
• Buy - MFI crossed up 50% level

• Sell - MFI crossed down 50% level
Parameters availabel:

www.chartnexus.com
3.13.8 MFI Failure Swing
Figure 3.64: MFI Failure Swing.
• Buy - MFI bottom failure swing to X

• Sell - MFI top failure swing to X

• x1 - the minimum amount below(buy)/above(sell) the lower(buy)/upper(sell) limit
• x2 - the minimum amount MFI has moved below(buy)/above(sell) the recent
peak(buy)/trough(sell)
• x3 - the minimum amount MFI had moved above(buy)/below(sell) the recent
peak/trough (buy/sell)

www.chartnexus.com
3.13.9 MFI Divergence With Price
Figure 3.65: MFI Divergence With Price.
• Buy - MFI is increasing while the price is decreasing

• Sell - MFI is decreasing with the price is increasing
which price and MFI diverge
• MFI Slope - the minimum slope of the moving average
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
www.chartnexus.com
3.13.10 MFI Convergence With Price
Figure 3.66: MFI Convergence With Price.
• Buy - MFI is increasing with price moving up

• Sell - MFI is decreasing with price moving down
curs
curs
which price and MFI converge
• MFI Slope - the minimum slope of the moving average of MFI
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
• MFI Period - period of MFI
www.chartnexus.com
3.13.11 MFI Trend
Figure 3.67: MFI Trend.
• Buy - MFI is trending upward

• Sell - MFI is trending downward

• t - the minimum slope of the moving average of MFI when it is trending
• Slope - the slope of the MFI when it is trending
• MA Period - the number of periods used for moving average calculation
www.chartnexus.com
3.14. Moving Average (MA) 99
3.14 Moving Average (MA)
3.14.1 MA Dual Crossover
Figure 3.68: MA Dual Crossover.
• Buy - Shorter MA crosses over longer MA

• Sell - Longer MA crosses over shorter MA
• Shorter Period - the period of the shorter-duration moving average line

• Longer Period - the period of the longer-duration moving average line
• Exponential - Select ‘yes’ to use exponential moving average otherwise use
• Black Window - the duration where the MA lines may cross many times without
affecting the triggering of the stock
• t1 - the number of periods that the two MA lines must not cross before the Black
Window
• t2 - the number of periods that the two MA lines must not cross after the Black
Window
Setting MA Period
MA are lagging indicators. The longer the MA the more insensitive it is to recent price
www.chartnexus.com
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.
3.14.2 MA Triple Crossover
Figure 3.69: MA Triple Crossover.
• Buy - Shortest MA crossing over mid MA, the latter crossing longest MA
• Sell - Longest MA crossing over mid MA, the latter crossing shortest MA
• Shortest Period - the period of the shortest-duration moving average line
www.chartnexus.com
• Middle Period - the period of the medium-duration moving average line

• Longest Period - the period of the longest-duration moving average line

• Black Window - the duration where the MA lines may cross many times without
affecting the triggering of the stock
• 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
Setting MA Period
we need to set the MA-period according to out investment horizon. For example, in
Setting t1
momentum.
Setting t2
whipsaws.
www.chartnexus.com
3.14.3 MA Price Crossover
Figure 3.70: MA Price Crossover.
• Buy - Price crossed over MA

• Sell - MA crossed over price
• Period - the period of the moving average

• Black Window - the duration where the price and MA may cross many times
without affecting the triggering of the stock
• t1 - the number of periods that the price and MA must not cross before the Black
Window
• t2 - the number of periods that the price and MA must not cross after the Black
Window

Setting MA Period
we need to set the MA-period according to our investment horizon. For example, in
www.chartnexus.com
Setting t1
momentum.
Setting t2
whipsaws.
3.14.4 MA as Support/Resistance
Figure 3.71: MA as Support/Resistance.
• Buy - MA as Support
• Sell - MA as Resistance
• MA1 Period - the period of the moving average MA1

• MA2 Period - the period of the moving average MA2

www.chartnexus.com
• 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

3.14.5 Price Close Between 2-MAs
Figure 3.72: Price Close Between 2-MAs.
• Buy - Price closes between 2-MAs
• Sell - Price closes between 2-MAs
• Upper MA Period - the period of the moving average Upper MA

• Lower MA Period - the period of the moving average Lower MA
• Upper Exponential - Select ‘yes’ to use exponential moving average otherwise
use simple moving average
• Lower Exponential - Select ‘yes’ to use exponential moving average otherwise
use simple moving average
www.chartnexus.com

3.14.6 MA Trend
Figure 3.73: MA Trend.
• Buy - MA is trending upward

• Sell - MA is trending downward

• t - the number of periods that moving average has been trending
• Slope - the minimum slope of the moving average when it is trending

www.chartnexus.com
3.14.7 Price Touching MA
Figure 3.74: Price Touching MA.
• Buy - Price is touching MA

• Sell - Price is touching MA

• Upper Limit - Choose 1 from Open, High, Low, Close as Upper Limit
• Lower Limit - Choose 1 from Open, High, Low, Close as Lower Limit
www.chartnexus.com
3.15. On Balance Volume (OBV) 107
3.15 On Balance Volume (OBV)
3.15.1 OBV Divergence With Price
Figure 3.75: OBV Divergence With Price.
• Buy - OBV is increasing while the price is decreasing

• Sell - OBV is decreasing while the price is increasing
which price and OBV diverge
• OBV Slope - the minimum slope of the moving average of OBV
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
www.chartnexus.com
3.15.2 OBV Convergence With Price
Figure 3.76: OBV Convergence With Price.
• Buy - OBV is increasing while the price is increasing

• Sell - OBV is decreasing while the price is decreasing
curs
curs
which price and OBV converge
• OBV Slope - the minimum slope of the moving average of OBV
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
www.chartnexus.com
3.15.3 OBV Trend
Figure 3.77: OBV Trend.
• Buy - OBV is trending upward

• Sell - OBV is trending downward
• t - the number of periods that OBV has been trending

• Slope - the minimum slope of the moving average of OBV when it is trending
• MA period - the number of periods used for the period of the moving average
of the OBV

www.chartnexus.com
3.16. Parabolic Stop And Reversal 110
3.16 Parabolic Stop And Reversal
3.16.1 Parabolic Turns Green
Figure 3.78: Parabolic Turns Green.
• Buy - Parabolic turns green

• Sell - Parabolic turns green
• Acceleration - step of Parabolic SAR

• Max Acceleration - maximum step of Parabolic SAR
• r - number of consecutive red circles before number of consecutive green circles
• g - number of consecutive green circles after number of consecutive red circles
www.chartnexus.com
3.16. Parabolic Stop And Reversal 111
3.16.2 Parabolic Turns Red
Figure 3.79: Parabolic Turns Red.
• Buy - Parabolic turns red

• Sell - Parabolic turns red
• Acceleration - step of Parabolic SAR

• Max Acceleration - maximum step of Parabolic SAR
• r - number of consecutive red circles after number of consecutive green circles
• g - number of consecutive green circles before number of consecutive red circles
www.chartnexus.com
3.17. Price Channel 112
3.17 Price Channel
3.17.1 Price Touches Upper Band
Figure 3.80: Price Touches Upper Band.
• Buy - Price touches Upper band

• Sell - Price touches Upper band
• Period - period of Price Channel

• m(%) - the maximum distance between price and upper band after the crossover
• Intraday/Close - if Intraday is selected, the day-high price will be used other-
wise close price will be used
www.chartnexus.com
3.17. Price Channel 113
3.17.2 Price Touches Lower Band
Figure 3.81: Price Touches Lower Band.
• Buy - Price touches lower band

• Sell - Price touches lower band
• Period - period of Price Channel

• m(%) - the maximum distance between price and lower band after the crossover
• Intraday/Close - if Intraday is selected, the day-low price will be used otherwise
close price will be used

www.chartnexus.com
3.18. Relative Strength Index (RSI) 114
3.18 Relative Strength Index (RSI)
3.18.1 RSI Touched And Rebounded/Retreated From Limit
Figure 3.82: RSI Touched And Rebounded/Retreated From Limit.
• Buy - RSI rebounding from lower limit to X

• Sell - RSI retreating from upper limit to X
• Period - period of RSI

• Lower Limit - lower limit of RSI
• Upper Limit - upper limit of RSI
• Limit Margin - if value sets to ‘1’ means RSI touched and rebounded(buy)/retreated(sell)
• x - the amount that RSI rebounded(buy)/retreated(sell) from lower(buy)/upper(sell)
limit
• x Margin - if value sets to ‘3’ means RSI rebounded(buy)/retreated(sell) within
x +/- 3
www.chartnexus.com
3.18.2 RSI Crossing Limit
Figure 3.83: RSI Crossing Limit.
• Buy - RSI enters oversold region

• Sell - RSI enters overbought region

• t - the minimum number of periods RSI to be above(buy)/below(sell) limit before
crossing over

www.chartnexus.com
3.18.3 RSI Limit Exceeded
Figure 3.84: RSI Limit Exceeded.
• Buy - RSI at X is in oversold region

• Sell - RSI at X is in overbought region

www.chartnexus.com
3.18.4 RSI Rebounding/Retreating In Oversold/Overbought Region
Figure 3.85: RSI Rebounding/Retreating In Oversold/Overbought Region.
• Buy - RSI rebounds from low in oversold region

• Sell - RSI retreats from high in overbought region

• x - the minimum amount that RSI rebounded(buy)/retreated(sell) from lower(buy)/upper(sell)
limit

www.chartnexus.com
3.18.5 RSI Rebounded/Retreated In Oversold/Overbought Region

And Touching/Crossing Limit
Figure 3.86: RSI Rebounded/Retreated In Oversold/Overbought Region And

Tocuhing/Crossing Limit.
• Buy - RSI crosses back lower limit from oversold region

• Sell - RSI crosses back upper limit from overbought region

• x - the minimum amount that RSI rebounded/retreated from lower(buy)/upper(sell)
limit
• x Margin - if value is set to 3 means RSI rebounded/retreated within x +/- 3
www.chartnexus.com
3.18.6 RSI In Specified Range
Figure 3.87: RSI In Specified Range.
• Buy - RSI at X is in range (min, max)

• Sell - RSI at X is in range (min, max)

Setting RSI Period

Usually 14 days are used in the RSI calculation for daily chart and 14 weeks for weekly
chart. The shorter the RSI period, the more sensitive the oscillator becomes and wider
its amplitude. Therefore, if your trading horizon is very short, you might opt for RSI
with shorter time period, ie. 9 days. If you want to decrease the volatility of the RSI
signal, you can lengthen the RSI period, ie. 26 days.
Setting RSI Min and Max values
With this specific rule, you can setup rules to detect RSI at any level of choice and
would not be limited by the Buy and Sell definition.
www.chartnexus.com
3.18.7 RSI Cross 50% Level
Figure 3.88: RSI Cross 50% Level.
• Buy - RSI crossed up 50% level

• Sell - RSI crossed down 50% level

www.chartnexus.com
3.18.8 RSI Failure Swing
Figure 3.89: RSI Failure Swing.
• Buy - RSI bottom failure swing to X

• Sell - RSI top failure swing to X

• x2 - the minimum amount RSI has moved below/above the recent peak/trough
(buy/sell)
• x3 - the minimum amount RSI had moved above/below the recent peak/trough
(buy/sell)

www.chartnexus.com
3.18.9 RSI Divergence With Price
Figure 3.90: RSI Divergence With Price.
• Buy - RSI is increasing while the price is decreasing

• Sell - RSI is decreasing while the price is increasing
which price and RSI diverge
• RSI Slope - the minimum slope of the moving average of RSI
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
• RSI Period - period of RSI

www.chartnexus.com
3.18.10 RSI Convergence With Price
Figure 3.91: RSI Convergence With Price.
• Buy - RSI is increasing while the price is increasing

• Sell - RSI is decreasing while the price is decreasing
curs
curs
which price and RSI converge
• RSI Slope - the minimum slope of the moving average of RSI
price
• RSI On Right - if value is set to ‘yes’, only convergence with RSI slope on the
• RSI Period - period of RSI
www.chartnexus.com
3.18.11 RSI Trend
Figure 3.92: RSI Trend.
• Buy - RSI is trending upward

• Sell - RSI is trending downward

• t - the number of periods that RSI has been trending
• Slope - the minimum slope of the moving average of RSI when it is trending
of RSI
www.chartnexus.com
3.19. Smoothed Relative Strength Index (Smoothed RSI) 125
3.19 Smoothed Relative Strength Index (Smoothed RSI)
3.19.1 Smoothed RSI Touched And Rebounded/Retreated From

Limit
Figure 3.93: Smoothed RSI Touched And Rebounded/Retreated From Limit.
• Buy - Smoothed RSI rebounding from lower limit to XX

• Sell - Smoothed RSI retreating from upper limit to XX
• Period - period of Smoothed RSI

• Lower Limit - lower limit of Smoothed RSI
• Upper Limit - upper limit of Smoothed RSI
• Limit Margin - if value sets to ‘1’ means Smoothed RSI touched and rebounded(buy)/retreated(sell)
• x - the amount that Smoothed RSI rebounded(buy)/retreated(sell) from lower(buy)/upper(sell)
limit
• x Margin - if value sets to ‘3’ means Smoothed RSI rebounded(buy)/retreated(sell)

within x +/- 3
www.chartnexus.com
3.19.2 Smoothed RSI Crossing Limit
Figure 3.94: Smoothed RSI Crossing Limit.
• Buy - Smoothed RSI just enters oversold region

• Sell - Smoothed RSI just enters overbought region

• t - the minimum number of periods Smoothed RSI to be above(buy)/below(sell)
limit before crossing over

www.chartnexus.com
3.19.3 Smoothed RSI Limit Exceeded
Figure 3.95: Smoothed RSI Limit Exceeded.
• Buy - Smoothed RSI at XX is in oversold region

• Sell - Smoothed RSI at XX is in overbought region

www.chartnexus.com
3.19.4 Smoothed RSI Rebounding/Retreating In Oversold/Overbought

Region
Figure 3.96: Smoothed RSI Rebounding/Retreating In Oversold/Overbought Region.
• Buy - Smoothed RSI rebounds from low in oversold region

• Sell - Smoothed RSI retreats from high in overbought region

• x - the minimum amount that Smoothed RSI rebounded(buy)/retreated(sell) from

lower(buy)/upper(sell) limit
www.chartnexus.com
3.19.5 Smoothed RSI Rebounded/Retreated In Oversold/Overbought

Region And Touching/Crossing Limit
Figure 3.97: Smoothed RSI Rebounded/Retreated In Oversold/Overbought Region

And Touching/Crossing Limit.
• Buy - Smoothed RSI crosses back lower limit from oversold region
• Sell - Smoothed RSI crosses back upper limit from overbought region

• x - the minimum amount that Smoothed RSI rebounded/retreated from lower(buy)/upper(sell)
limit
• x Margin - if value is set to 3 means Smoothed RSI rebounded/retreated within
x +/- 3
3.19.6 Smoothed RSI In Specified Range
Figure 3.98: Smoothed RSI In Specified Range.
• Buy - Smoothed RSI at X is in range (min, max)

• Sell - Smoothed RSI at X is in range (min, max)

3.19.7 Smoothed RSI Cross 50% Level
Figure 3.99: Smoothed RSI Cross 50% Level.
• Buy - Smoothed RSI crossed up 50% level

• Sell - Smoothed RSI crossed down 50% level

3.19.8 Smoothed RSI Failure Swing
Figure 3.100: Smoothed RSI Failure Swing.
• Buy - Smoothed RSI bottom failure swing to X

• Sell - Smoothed RSI top failure swing to X

• x2 - the minimum amount Smoothed RSI has moved below/above the recent
• x3 - the minimum amount Smoothed RSI had moved above/below the recent
3.19.9 Smoothed RSI Divergence With Price
Figure 3.101: Smoothed RSI Divergence With Price.
• Buy - Smoothed RSI is increasing while the price is decreasing

• Sell - Smoothed RSI is decreasing while the price is increasing
which price and Smoothed RSI diverge
• RSI Slope - the minimum slope of the moving average of Smoothed RSI
price
• RSI On Right - if value is set to ‘yes’, only divergences with Smoothed RSI
• RSI Period - period of Smoothed RSI

3.19.10 Smoothed RSI Convergence With Price
Figure 3.102: Smoothed RSI Convergence With Price.
• Buy - Smoothed RSI is increasing while the price is increasing

• Sell - Smoothed RSI is decreasing while the price is decreasing
curs
curs
which price and Smoothed RSI converge
• RSI Slope - the minimum slope of the moving average of Smoothed RSI
price
• RSI On Right - if value is set to ‘yes’, only convergence with Smoothed RSI
• RSI Period - period of Smoothed RSI
3.19.11 Smoothed RSI Trend
Figure 3.103: Smoothed RSI Trend.
• Buy - Smoothed RSI is trending upward

• Sell - Smoothed RSI is trending downward

• t - the number of periods that Smoothed RSI has been trending
• Slope - the minimum slope of the moving average of Smoothed RSI when it is
trending
of Smoothed RSI
3.20. Stochastic 136
3.20 Stochastic
3.20.1 Stochastic Crossover
Figure 3.104: Stochastic Crossover.
• Buy - %D crosses over smoothed %D

• Sell - Smoothed %D crosses over %D
• Lower Limit - lower limit of stochastic

• Upper Limit - upper limit of stochastic
• %K Period - the period of %K
• %D Period - the period of %D

• Smoothed %D Period - the period of smoothed %D period
• x - the minimum distance between the %D line and smoothed %D line
• t - the maximum number of periods that x occurs after crossing
3.20.2 Stochastic Touched And Rebounded/Retreated From Limit
Figure 3.105: Stochastic Touched And Rebounded/Retreated From Limit.
• Buy - Stochastic rebounding from lower limit to X

• Sell - Stochastic retreating from upper limit to X

• Lower Limit - lower limit of Stochastic
• Upper Limit - upper limit of Stochastic
• Limit Margin - if value sets to ‘1’ means Stochastic touched and rebounded(buy)/retreated(sell)
• x - the amount that Stochastic rebounded(buy)/retreated(sell) from lower(buy)/upper(sell)
limit
• x Margin - if value sets to ‘3’ means Stochastic rebounded(buy)/retreated(sell)
within x +/- 3
• %D/Smoothed %D/%K - Stochastic line to be used
3.20.3 Stochastic Crossing Limit
Figure 3.106: Stochastic Crossing Limit.
• Buy - Stochastic just enters oversold region

• Sell - Stochastic just enters overbought region

• t - the minimum number of periods Stochastic to be above(buy)/below(sell) limit

before crossing over

3.20.4 Stochastic Limit Exceeded
Figure 3.107: Stochastic Limit Exceeded.
• Buy - Stochastic at X is in oversold region

• Sell - Stochastic at X is in overbought region


3.20.5 Stochastic Rebounding/Retreating In Oversold/Overbought

Region
Figure 3.108: Stochastic Rebounding/Retreating In Oversold/Overbought Region.
• Buy - Stochastic rebounds from low in oversold region

• Sell - Stochastic retreats from high in overbought region

• x - the minimum amount that Stochastic rebounded(buy)/retreated(sell) from
3.20.6 Stochastic Rebounded/Retreated In Oversold/Overbought

Region And Touching Crossing Limit
Figure 3.109: Stochastic Rebounded/Retreated In Oversold/Overbought Region And

Touching Crossing Limit.
• Buy - Stochastic crosses back lower limit from oversold region

• Sell - Stochastic crosses back upper limit from overbought region

• x - the minimum amount that Stochastic rebounded/retreated from lower(buy)/upper(sell)
limit
• x Margin - if value is set to 3 means Stochastic rebounded/retreated within x +/-
3

3.20.7 Stochastic In Specified Range
Figure 3.110: Stochastic In Specified Range.
• Buy - Stochastic at X is in range (min, max)

• Sell - Stochastic at X is in range (min, max)

3.20.8 Stochastic Cross 50% Level
Figure 3.111: Stochastic Cross 50% Level.
• Buy - Stochastic crossed up 50% level

• Sell - Stochastic crossed down 50% level

3.20.9 Stochastic Failure Swing
Figure 3.112: Stochastic Failure Swing.
• Buy - Stochastic bottom failure swing to X

• Sell - Stochastic top failure swing to X

• 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)
3.20.10 Stochastic Divergence With Price
Figure 3.113: Stochastic Divergence With Price.
• Buy - Stochastic is increasing while the price is decreasing

• Sell - Stochastic is decreasing while the price is increasing
which price and Stochastic diverge
• Stochastic Slope - the minimum slope of the moving average of Stochastic
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
• Smoothed %D Period - the period of Smoothed %D
3.20.11 Stochastic Convergence With Price
Figure 3.114: Stochastic Convergence With Price.
• Buy - Stochastic is increasing with price moving up

• Sell - Stochastic is decreasing with price moving down
curs
curs
which price and Stochastic converge
• Stochastic Slope - the minimum slope of the moving average of Stochastic
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
• Smoothed %D Period - the period of Smoothed %D

3.20.12 Stochastic Trend
Figure 3.115: Stochastic Trend.
• Buy - Stochastic is trending upward

• Sell - Stochastic is trending downward

• t - the number of periods that Stochastic has been trending
• Slope - the minimum slope of the moving average of Stochastic when it is trend-
ing

of Stochastic

3.21. Williams %R 148
3.21 Williams %R
3.21.1 Williams %R Touched And Rebounded/Retreated From Limit
Figure 3.116: Williams %R Touched And Rebounded/Retreated From Limit.
• Buy - Williams %R rebounding from lower limit to X

• Sell - Williams %R retreating from upper limit to X
• Period - period of Williams %R

• Lower Limit - lower limit of Williams %R
• Upper Limit - upper limit of Williams %R
• Limit Margin - if value sets to ‘1’ means Williams %R touched and rebounded(buy)/retreated(sell)
• x - the amount that Williams %R rebounded(buy)/retreated(sell) from lower(buy)/upper(sell)
limit
• x Margin - if value sets to ‘3’ means Williams %R rebounded(buy)/retreated(sell)
within x +/- 3
3.21.2 Williams %R Crossing Limit
Figure 3.117: Williams %R Crossing Limit.
• Buy - Williams %R just enters oversold region

• Sell - Williams %R just enters overbought region

• t - the minimum number of periods Williams %R to be above(buy)/below(sell)
lower(buy)/upper(sell) limit before crossing over
3.21.3 Williams %R Limit Exceeded
Figure 3.118: Williams %R Limit Exceeded.
• Buy - Williams %R at X is in oversold region

• Sell - Williams %R at X is in overbought region

3.21.4 Williams %R Rebounding/Retreating In Oversold/Overbought

Region
Figure 3.119: Williams %R Rebounding/Retreating In Oversold/Overbought Region.
• Buy - Williams %R rebounds from low in oversold region

• Sell - Williams %R retreats from high in overbought region

• x - the minimum amount that Williams %R rebounded(buy)/retreated(sell) from
3.21.5 Williams %R Rebounded/Retreated In Oversold/Overbought

Region And Touching/Crossing Limit
Figure 3.120: Williams %R Rebounded/Retreated In Oversold/Overbought Region

And Touching/Crossing Limit.
• Buy - Williams %R crosses back lower limit from oversold region

• Sell - Williams %R crosses back upper limit from overbought region


• x - the minimum amount that Williams %R rebounded/retreated from lower(buy)/upper(sell)
limit
• x Margin - if value is set to 3 means Williams %R rebounded/retreated within x
+/- 3
3.21.6 Williams %R In Specified Range
Figure 3.121: Williams %R In Specified Range.
• Buy - Williams %R at X is in range (min, max)

• Sell - Williams %R at X is in range (min, max)

3.21.7 Williams %R Cross 50% Level
Figure 3.122: Williams %R Cross 50% Level.
• Buy - Williams %R crossed up -50% level

• Sell - Williams %R crossed down -50% level

3.21.8 Williams %R Failure Swing
Figure 3.123: Williams %R Failure Swing.

• Buy - Williams %R bottom failure swing to X

• Sell - Williams %R top failure swing to X


• x2 - the minimum amount Williams %R has moved below/above the recent
• x3 - the minimum amount Williams %R had moved above/below the recent
3.21.9 Williams %R Divergence With Price
Figure 3.124: Williams %R Divergence With Price.
• Buy - Williams %R is increasing with price still moving down

• Sell - Williams %R is decreasing with price still moving up

which price and Williams %R diverge
• Stochastic Slope - the minimum slope of the moving average of Williams %R
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
• WR Period - period of Williams %R
3.21.10 Williams %R Convergence With Price
Figure 3.125: Williams %R Convergence With Price.
• Buy - Williams %R is increasing with price moving up
• Sell - Williams %R is decreasing with price moving down
curs
curs
which price and Williams %R converge
• WR Slope - the minimum slope of the moving average of Williams %R
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
• WR Period - period of Williams %R
3.21.11 Williams %R Trend
Figure 3.126: Williams %R Trend.
• Buy - Williams %R is trending upwards

• Sell - Williams %R is trending downwards

• t - the number of periods that Williams %R has been trending
• Slope - the minimum slope of the moving average of Williams %R when it is
trending
of Williams %R
3.21.12 Williams %R Cross Up MA Line
Figure 3.127: Williams %R Cross Up MALine.
• Buy - Williams %R crossed over MA line

• Sell - Williams %R crossed over MA line

of Williams %R
ple moving average
• Black Window - the duration where the Wm%R line and Wm%R MA line may
cross many times without affecting the triggering of the stock
• t1 - the number of periods that the Wm%R line and Wm%R MA line must not
cross before the Black Window
cross after the Black Window
3.21.13 Williams %R Cross Down MA Line
Figure 3.128: Williams %R Cross Down MALine.
• Buy - MA line crossed over William %R

• Sell - MA line crossed over William %R

of Williams %R
ple moving average
• Black Window - the duration where the Wm%R line and Wm%R MA line may
cross many times without affecting the triggering of the stock
cross before the Black Window
cross after the Black Window

Chapter 4
XPertTrader Library (XPL)
4.1 What Is XPertTrader Library (XPL) ?
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
4.2 Getting Rule From XPL
To retrieve the rule from XPL and view its contents,
a) Click on the XPertTrader Library tab (see Figure 4.1.

b) Click on the link Click to display all available rules in XPertTrader Library to
access XPL. The list of shared rules will be retrieved from our website at http:
//www.chartnexus.com/xpl.php.
c) Click on the rule that you are interested. A dialog window will pop up to prompt
you to enter a name for the rule.
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
Figure 4.1: Accessing XPertTrader library.

Chapter 5
Candlestick Patterns Detection
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.
Figure 5.1: Candlesticks module main window.
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.
5. Description of the candlestick pattern.

6. Text representation of the rules that you have composed.
5.1 Editing Candlestick Patterns
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.)
Below are descriptions on how to use Candlestick Configurations:
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.
5.2 Capturing Candlestick Patterns
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).
Figure 5.3: Accessing the candlesticks capturing feature.
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
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.
Figure 5.6: Candlestick pattern captured.

Chapter 6
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.
Figure 6.1: ChartMaker main window.
169
6.1. Features Of ChartMaker 170
6.1 Features Of ChartMaker

• Few clicks to generate highly customized charts easily
• Generate charts in various sizes
• Generate daily, weekly or even both types of charts
• Generate charts within a specified duration
• 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
6.2 Customising Color Scheme
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).
Figure 6.2: Default color scheme for the charts.

6.3. Adding Indicators to Charts 171
Figure 6.3: Changing the color scheme.
6.3 Adding Indicators to Charts
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
Figure 6.4: Adding indicators to charts.

6.4. Watermark 173
6.4 Watermark
Figure 6.5: Adding watermark to charts.

Chapter 7
Frequently Asked Questions

(FAQs)
7.1 Subscription Issues

1. What happens when my add-on subscription expires ?
How about considering renewing your subscription if you find it useful (http://
www.chartnexus.com/products/subscribe.php)? Except for the fact that
you can’t use the add-on features, pretty much everything else stay the same.
Your settings and rules shall not be removed. Your rules shall be restored upon
re-subscription to the add-on again.
7.2 Reporting Error

1. How do I report possible error or bug discovered ?
If you do not know the error but you suspect there might be one, then please
follow the procedures :
• Click on the Help menu

• Click on View Log menu item. See Figure 7.1
• Click on Send Log. See Figure 7.2
If you just want to report an error/bug, please follow this instead:

• Click on the Help menu
• Click on the Report Program Bug(s) menu item (see Figure 7.1), which
will bring you to our website with a web form
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.
• Above the Market

A limit order to buy or sell a security for a specified price that is higher than the
current market price. If the market does not reach the specified price, the order
will go unfilled.
• Absolute Breadth Index
Developed by Norman Fosback, the ABI is equal to the absolute value of the
difference between the advancing issues and the declining issues. It shows how
much activity and volatility is taking place on the New York Stock Exchange
while totally ignoring the price direction.
• Absolute Price Oscillator (APO)
Also known as MACD indicator, APO is calculated by subtracting a longer-term
Exponential MA from a shorter-term Exponential MA.
• Accumulation
Occurs when the supply of a security is less than the demand. After a decline
in price, a stock may start to base and trade sideways for an extended period.
In the mean time, well-informed traders and investors may seek to establish or
increase existing long positions. In that case, the stock is said to have come under
accumulation.
• Accumulation/Distribution Line (A/D Line)
A momentum indicator that relates price changes with volume. It relates the
closing price to the range of prices (intraday high-intraday low). The closer the
close is to the high, the more volume is added to the cumulative total.
• 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
• Average Directional Index (ADX)

Part of the Directional Movement Indicator system developed by J. Welles Wilder,
the ADX line is based on the spread between the +DI and -DI lines from that
same system.
• Average True Range (ATR)
An indicator that measures volatility of a security. High ATR values indicate
high volatility and may be an indication of panic selling or panic buying. Low
ATR readings indicate sideways movement by the stock.
• Bar Chart
A chart of price versus time. The horizontal axis represents the passage of time
with the most recent time periods on the right side; while the vertical axis repre-
sents the stock’s price. For each time period, a vertical line denotes the high and
low price of the security; a short horizontal protrusion to the right of the vertical
line shows the closing price.
• Basing
A period where the stock or market is “catching its breath” after a decline, char-
acterized by a flat trading range without any noticeable trend. It is common to
see a basing period after a lengthy decline of the stock price. Basing may be a
sign of accumulation.
• Basis
The difference between cash prices and the futures contract prices.
• Bear
A person who believes prices will decline and might be described as having a
“bearish” outlook. Bear markets
• Bear Market
A market when prices are declining. Occur when roughly 80% of all stocks
decline for an extended period of time.
• Bear Trap
A signal which suggests that the rising trend of an index or stock has reversed
but which proved to be false. Thus trap the bears that acted on the signal with
losses. A bear trap is a form of whipsaw and relates to the spring.
• Bearish
The belief that market prices will decline.
• Below the Market
A limit order to buy or sell a security for a specific price that is lower than the
current market price. If the market does not reach these prices, the order will go
unfilled.
• Bid
The price at which the market maker guarantees to fill a sell order. A sell order
placed at the market will usually be filled at the current bid price. The bid price
is usually less than the ask price.
• Block
A purchase or sale of a large number of shares. This term is relative.
180
• 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.
182
• 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.
183
• 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.
• Directional Movement Indicator (DMI)

An indicator that plots a positive +DI line measuring buying pressure and a neg-
ative -DI line measuring selling pressure. The DMI pattern is bullish as long as
the +DI line is above the -DI line. The Average Directional Index line (ADX)
is derived from this system and is based on the spread between the +DI and -DI
lines.
• 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.
• Head and Shoulders Bottom

A well-known reversal pattern marked by three (or more) prominent troughs with
a middle trough (the head) that is lower than the other troughs (the shoulders).
When the trendline (neckline) connecting the peaks at the top of the pattern is
broken, the pattern is complete.
• Head and Shoulders Top

A well-known reversal pattern marked by three (or more) prominent peaks with a
middle peak (the head) that is higher than the other peaks (the shoulders). When
the trendline (neckline) connecting the troughs at the bottom of the pattern is
broken, the pattern is complete.
• Indicator
A value, usually derived from a stock’s price or volume, that an investor can
use to try to anticipate future price movements. Indicators are divided into two
groups: trend following or lagging and momentum or leading. Lagging indica-
tors tell you what prices are doing now, or in the recent past, so they are useful
when stocks are trending. A moving average is an example of a lagging indica-
tor. Leading indicators are designed to anticipate future price action and many
come in the form of oscillators, e.g. RSI and MACD.
• Industry
A grouping of companies in the same line of business. Industry groupings are
more specific to the business than sector groupings.
• Initial Public Offering (IPO)
The first offering of common stock to the public.
• Insider
Any person who directly or indirectly owns more than 10
• 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
• On Balance Volume (OBV)

Introduced by Joe Granville, OBV measures positive and negative volume flow.
The concept behind the indicator is that volume precedes price. OBV is a sim-
ple indicator that adds a period’s volume when the close is up and subtracts the
period’s volume when the close is down. A cumulative total of the volume addi-
tions and subtractions forms the OBV line. OBV line can then be compared with
the price chart of the underlying security to look for divergence or confirmation.
• Oscillator
An indicator that determines when a market is in an overbought or oversold con-
dition. When the oscillator moves above the 80 level, the market is overbought.
When the oscillator line moves down to the 20 level, the market is oversold. Os-
cillator can also be compared with a security’s price to look for divergence or
confirmation.
• Over The Counter (OTC)
A securities that are traded through a telephone and computer network.
• Overbought
A technical term which means that prices are considered too high and susceptible
to a decline. Overbought conditions can be classified by analyzing the chart
pattern or with indicators such as Stochastic Oscillator and RSI. It is important
to keep in mind that overbought is not necessarily the same as being bearish.
It merely infers that the stock has risen too far too fast and might be due for a
pullback.
• Oversold
A technical term which means that prices are considered too low and may rally in
an upward direction. Oversold conditions can be classified by analyzing the chart
pattern or with indicators such as Stochastic Oscillator and RSI. It is important to
keep in mind that oversold is not necessarily the same as being bullish. It merely
infers that the security has fallen too far too fast and may be due for a reaction
rally.
• Parabolic SAR
An indicator that sets trailing price stops for long or short positions. Also referred
to as the “stop-and-reversal indicator”. If the trend is up, buy when the indicator
moves below the price. If the trend is down, sell when the indicator moves above
the price.
• Pennant
A continuation chart pattern that is similar to flag, except that it is more horizon-
tal and resembles a small symmetrical triangle.
188
• 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.
• Rate of Change (ROC)

A momentum oscillator that measures the percent change in price from one pe-
riod to the next. The oscillator can be used as any other momentum oscillator
by looking for higher lows, lower highs, positive and negative divergences, and
crosses above and below zero for signals.
• Rally
A brisk advance following a decline in prices.
• Reaction
A temporary decline following an advance in prices.
• Rectangle
A continuation chart pattern where prices move sideways between two differ-
ent levels for a period of time and then continue moving in the direction of the
previous trend.
189
• Relative Strength Index (RSI)

A popular oscillator developed by Wilder. RSI is plotted on a vertical scale
from 0 to 100. Values above 70 are considered overbought and values below 30,
oversold. When prices are over 70 or below 30 and diverge from price action, a
warning is given of a possible trend reversal.
• Resistance
A price level at which there is a large enough supply of a stock available to cause
a halt in an upward trend and turn the trend down. Resistance levels indicate the
price at which most investors feel that prices will move lower.
• Retracement
A decline that retraces a portion of a previous advance, or an advance that re-
traces a portion of a previous decline. Retracements typically cover 1/3 to 2/3 of
the previous move, and a retracement of more than 2/3 typically signals a trend
reversal.
• Reversal Pattern
A chart pattern that occurs before an existing trend reverses direction, e.g. a Head
and Shoulder’s reversal pattern. A break below neckline support indicates that
the Head and Shoulder’s pattern is complete and the prior uptrend has reversed.
• Reversal Spike
Market turns that happen very quickly with little or no transition period.
• Sector
A group of companies that generate revenue in similar ways, and tend to rise and
fall with the economic cycle. Sectors are commonly broken down into smaller
groups called industries. Examples of sectors are financials sector and technol-
ogy sector.
• Security
A security is a tradeable financial instrument with a financial value such as
stocks, bonds, options and derivatives.
• Sell Signal
A condition that indicates a good time to sell a stock.
• Selling Climax
A sharp price decline accompanied by extremely high volume created by panic
stricken investors dumping securities. This often happens at the end of a bear
market and typically represents a good time to buy.
• Short Covering
The process of buying back stock that has already been sold short.
• Short Position (Interest)
The total amount of short sales outstanding on a specific exchange at a particular
time.
• Short Selling
Selling stock not owned in anticipation of buying it back later at a lower price
for a profit. It involves borrowing stock (usually from the broker) to sell short
and using margin to finance the borrowing.
190
• 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.
• Weighted Moving Average

A moving average that uses a selected time span, but gives greater weight to the
more recent price data.
• Whipsaw
Occurs when a buy or sell signal is reversed in a short time. Volatile markets and
sensitive indicators can cause whipsaws.
• Williams %R
Developed by Larry Williams, Williams %R is a momentum indicator similar to
Stochastics Oscillator and is especially popular for measuring overbought and
oversold levels.
Appendix B
Graphical User Interface (GUI)

Glossary
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.
• Close window or popup window

Found at the top right corner of any pop up window
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
• Menubar and menu
• 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.
• Textbox or input box
• 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

Chart Nexus Addons Manual

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chart Nexus Addons Manual

Uploaded by

Copyright:

Available Formats

ChartNexus Add-ons

Visit website: http://www.chartnexus.com

Copyright © 2004-2010 FiNEX Solutions

Limitations of Liability /Disclaimer of Warranty

About FiNEX Solutions

2.5.3 Saving results . . . . . . . . . . . . . . . . . . . . . . . . . . 17

3 ChartNexus XPertTrader Parameters Explained 30

3.4.9 + DI Cross Up ADX . . . . . . . . . . . . . . . . . . . . . . 52

3.10.2 Position Of Line And Cloud . . . . . . . . . . . . . . . . . . 76

3.14.5 Price Close Between 2-MAs . . . . . . . . . . . . . . . . . . 104

3.19.5 Smoothed RSI Rebounded/Retreated In Oversold/Overbought

3.21.8 Williams %R Failure Swing . . . . . . . . . . . . . . . . . . 154

4 XPertTrader Library (XPL) 161

5 Candlestick Patterns Detection 163

7 Frequently Asked Questions (FAQs) 174

B Graphical User Interface (GUI) Glossary 193

1.1 What Are Add-ons ?

NOTE: Historical data will be one-time fee instead of subscription-based.

1.2 Add-ons Available

These are the Add-ons that are available for subscription:

• XPertTrader Indicators : This module contains the commonly used technical

• KLSE or Bursa 10 years adjusted historical data (one-time fee).

• US (AMEX, NASDAQ, NYSE) 10 years adjusted historical data (one-time

1.3 Benefits of Using Add-ons

We adopted this modular, subscription-based approach as we think it will benefit both

1. Changing times require evolving capabilities. As the Market evolves, traders

1.4 How To Subscribe ?

To subscribe to any of the Add-ons (see Section 1.2), please visit

1.5 Subscription Information

1.5.1 Checking subscription information

Figure 1.1: Subscription information window.

1.5.2 Updating subscription information

1.5.3 Renewing subscription

To renew your subscription,

2.1 What Is ChartNexus XPertTrader ?

2.1.1 Components of ChartNexus XPertTrader

2.1.2 Key features of ChartNexus XPertTrader

Key features of ChartNexus XPertTrader include:

• No complicated programming or scripting required. All you need is click to add,

• Flexibility to customize parameters of the indicators/rules

• Easy-to-use user interface

NOTE: ChartNexus XPertTrader is an add-on module of ChartNexus available for

2.2 Why Use ChartNexus XPertTrader ?

2.3 Starting ChartNexus XPertTrader

Figure 2.1: Starting ChartNexus XPertTrader.

2.4 Rules Composer

Figure 2.2: ChartNexus XPertTrader main window - Rules Composer.

1. List of available rules from General, Indicators and Candlesticks.

5. The rules that you have composed.

2.4.1 Types of rules

1. General - rules based on price, volume and so on.

2.4.2 Changing rules parameters

Figure 2.3: Rules Composer - changing parameters.

2.4.3 Importing rules

1) Go to the webpage http://www.chartnexus.com/xpl. Right click with your

Figure 2.4: Saving selected rules from XPertTrader Library (XPL).

Figure 2.5: Saving rules on to your Desktop.

Figure 2.6: Select the file type.

Figure 2.8: Double click on the saved rule to import.

Figure 2.9: Successfully imported the saved rule.

Figure 2.10: Saved rule loaded into Rules Composer.

2.5 Stock Screener

Figure 2.11: Stock Screener window.