Slauson's Slant: MetaStock Monitor SEPTEMBER - OCTOBER 13

  The Starving Artist - Contributed by John Slauson One of the biggest challenges in developing a trading systems is being precise when defining the rules.  Technical analysis is often criticized because many of its adherents are so ambiguous with their methodology.  So ambiguous in fact that it becomes impossible to validate their “system” using any semblance of scientific methods.  This is convenient for the trading system peddler, but frustrating for the trader. Among technicians, the well worn adage “the trend is your friend” is sadly second only to “technical analysis is an art not a science.”  The latter is a euphemism for:  “I have a system that works super awesome...except when it doesn’t.”Some examples of ambiguous trading rules I often hear:Prices should move slightly above….Volatility can increase a bit….Place the stop just above a recent high…Prices should cross above the moving average on big volume...Prices will reverse at about the same price level several times…The trend must be steeply up over the short-term…The black candlestick must be significantly larger than the preceding white candlestick…To move technical analysis out of the realm of art and into the realm of science, ambiguous words like the ones in bolded italics must be eliminated and replaced with precise, quantifiable values.  Of all the tools used by technicians, support and resistance is perhaps the most difficult to quantify.  Ask 10 traders to draw support and resistance lines on the same chart and you’ll see lines drawn at almost every price level   Years ago I developed a scoring method to help traders quantify support and resistance levels.  I presented this method at a conference sponsored by Golden Gate University.  In attendance was W.H.C. Bassetti, editor and coauthor of the classic book, Technical Analysis of Stock Trends first written by Robert D. Edwards and John Magee in 1948.  Bassetti referenced my scoring method and the MetaStock Add-on based on it (PowerStrike), in the 9th edition of his book.The methodology I presented for measuring support and resistance is based on three phenomenon in the stock market:1. Humans prefer “easily” divisible and memorable numbers (e.g.,“20” is preferred over “19”). These values are typical of optionstrike prices. Hence many traders' attention is drawn to thesenumbers providing the potential for even more "concentrated"2. Stock prices are heavily influenced by trading near option strikeprice levels. Hence, these levels greatly influence where"important" buying and selling occur. Support and resistance isbased on the concentrated buying and selling. Option StrikePrice levels attract more attention from important marketparticipants over other price levels.3. Bullish and Bearish pressures at Option Strike Price levelsresolve more quickly than pressures at other levels.With these general principles in mind, I developed a tool that scored the strength of support and resistance on optionable US stocks.  The heart of the scoring method revolves around three bar pivot highs and three bar pivot lows.  A value of 1, 3 o 5 points is assigned to a pivot high or low based on the volume associated with bars 1 and 3 of the pattern.          To be counted in the score a pivot highs or lows has to form within a specified distance (based on precise volatility bands) from an option strike price.  Totaling these values provides a specific score for the support or resistance level being measured.  The score can then easily be used independently or incorporated into a larger set of trading rules.  It can even be backtested, an important litmus test for a valid trading method.The following chart of Costco illustrates this scoring system.  Pivots highs that occurred near the 120 strike price totaled 14.  Pivot lows near the 110 strike price totaled 30.  “Near” is precisely defined as pivot highs and lows that form within the volatility bands drawn at each level.  From this we can objectively state that support at $110 is stronger than resistance at $120.My point in presenting this scoring method is not to sell you on this specific method of identifying support and resistance; it is simply to illustrate that it is possible to take the ambiguity and “art” out of technical analysis, even something as subjective and seemingly imprecise as support and resistance.  Do this and you may avoid becoming a “starving artist.”

MetaStock XIII is here. Check out the video.

a MetaStock is very excited to announce the release of MetaStock XIII featuring the new MetaStock FORECASTER. This brief video by Scott Brown, president of MetaStock, explains the new features.

TechniTrader Weekly Discussion: “Market Voids - The Invisible Sink Holes for Retail Investors and Traders”

 MetaStock® SPRS Series  Week 146 – November 22, 2013 - MetaStock Spatial Pattern Recognition Skills Series  written by Martha Stokes, CMTMarket voids were once rare events, now are occurring more often as the use of Dark Pool  ATS platforms increase.  Market voids are when the most important and influential long term market participants stop buying stocks and sit on the sidelines.When this happens suddenly there is a massive void of buyers, who typically buy giant share lots of 100,000 – 500,000 at one time via Dark Pools.  The cessation of the giant and large funds buying is a buy side phenomenon that is not mirrored in bear markets.  It occurs in Bull Markets and is uniquely tied to speculative trading activity.The problem for most retail investors and traders is that this void occurs without warning and creates whipsaw action, gap downs, and slip-slide price action. Often these sink holes appear just after retail investors or retail traders have rushed in to buy a stock due to news or other good information about a company.Voids are a primary cause of losses for retail swing traders, day traders, and at times position traders.  Therefore understanding why they occur, how long the void can and will last, and how to recognize that a void is beginning, helps traders make better decisions to circumnavigate the sink hole before they are swept into it for a big loss trade.Unfortunately all Market Indicators such as High/Lows, Market Breadth, and Advance/Decline do not reveal market voids in advance. Rather these indicators all lag due to the outdated formulas that were written prior to the Dark Pool ATS platforms.The ideal way to discover potential market voids before they occur is to use a group of Scans to reveal the momentum bias and other factors.  Scans developed to expose market condition analysis is a leading indication of when a void is about to occur. This gives retail investors and traders a heads up that buying stocks will be a much higher risk during the void.In early November a void pattern appeared on the TechniTrader Market Condition Analysis Scans.  A few days later the S&P500 had a sudden down day, please see the chart below.  Nothing in the candlesticks specifically exposed that a big down day was coming.  Many retail traders were on a buying spree. Many retail investors were rushing to buy stocks as news spurred them back into the markets. The one down day caused many whipsaw trades.   The run down was not due to High Frequency Traders, market makers, or any of the commonly blamed factors it happened because those giant and large funds that are the largest buyers stopped buying for a few days.  Many new retail investors and retail traders feel that a charting program is an expense they do not need. Instead they opt for free charting services and online broker charts, which were never designed to be used as trading charting programs.By not having the proper tools, new retail investors and retail traders actually increase their risk of losing money. They pinch pennies and throw away dollars of profits, and have more losses because they are not using proper investing and trading tools.Scans that expose when a void is about to occur help protect your capital and profits.  To build scans that can do this requires the proper charting software tools. Otherwise you will find yourself suddenly in a sink hole, losing money rapidly and wondering why that great buy signal didn’t work.Member of Market Technicians AssociationMaster Rated Technical Analyst for Decisions Unlimited, Inc.Instructor and Developer of TechniTrader® Stock Market CoursesThis Stock Discussion and Training Lesson is sponsored by TechniTrader.com©2013 Decisions Unlimited, Inc. dba TechniTrader.  All Rights Reserved.TechniTrader is the registered trademark of Decisions Unlimited, Inc.Disclaimer: All statements, whether expressed verbally or in writing are the opinions of TechniTrader and its instructors or employees, and are not to be construed as anything more than an opinion. Student/subscribers are responsible for making their own choices and decisions regarding all purchases or sales of stocks or issues.  At no time is any stock or issue on any list written or sent to a student/subscriber by TechniTrader and its employees to be construed as a recommendation to buy or sell any stock or issue. TechniTrader is not a broker or an investment advisor it is strictly an educational service

Trading a Momentum Market Using Swing Trading Techniques

aMetaStock SPRS Series - Week 131 - TechniTrader® Stock Discussion for MetaStock Users - Trading a Momentum Market Using Swing Trading Techniques - August 9, 2013 By: Martha Stokes C.M.T.  Summertime momentum markets are rare. It takes two things occurring simultaneously to create a momentum market:A rush of new monies into stocks.Advances in new technologies.We have both right now. The Bond Markets are a Trillion-dollar market but in one month alone, there was a dumping of bond funds in historical proportions. This amounted to nearly 80 billion dollars being pulled from bonds in one month. This is a huge red flag for current bond holders and bond fund managers that a major shift of sentiment has occurred.The money has to be place somewhere in one of the several Financial Markets. It is moving from Money Market Accounts directly into stocks, creating a momentum energy market not seen in many years.To swing trade a momentum market, you need to understand the dynamics of not only swing trading but also how momentum action behaves, how it is different from a velocity price action, and how it is NOT volatility as many will claim but ENERGY that continues in one direction with building volumes and rising prices followed intermittently by resting day patterns rather than retracements.Momentum price action is unique and learning to read these charts requires far more understanding of candlestick patterns than is taught in books written a decade ago. Within the past 3-5 years, the way price reacts, how candles and where candles form, for how long, and when price will suddenly move again has changed dramatically. Just learning the candlestick patterns in a book or from an article online is not sufficient for highly successful swing trading in momentum markets.Below, the TTQA indicator exposed Dark Pools buying. By itself, price doesn’t look like anything during some heavy Dark Pool buying. But the energy that is generated when Dark Pools buy incrementally without moving price causes big runs to follow, such as this chart has.On the chart below, the failed sell down that started with the engulfing black is best seen in the indicators, which accurately tell you that the sell down attempt has failed and more upside is coming. This allows you to enter the stock prior to the gap.In the chart below, shifts of sentiment, increasing volume patterns, building underlying energy in TTQA, all are vital cues that tell you the resistance level is going to be blasted right though, that this time resistance will not hold back this stock moving out of a long term bottom.The crucial analysis you need in order to find stocks BEFORE they move suddenly, running or gapping up quickly, is relational analysis: the interpretation of the relationships between price, volume, lot size, and who is trading the stock at that time.When you combine relational analysis, the new candlestick patterns that have just started to form in the past few years, and Hybrid Indicators like TTQA, your ability to choose fast-moving stocks and have strong momentum swing trades will be faster, easier, and far more reliable.Did you miss our most recent webinar for MetaStock users?For more information email: info@technitrader.comMember of Market Technicians AssociationMaster Rated Technical Analyst: Decisions Unlimited, Inc. Instructor and Developer of TechniTrader® Stock Market Courses http://technitrader.com/MetaStock Partner ©2013 Decisions Unlimited, Inc. Disclaimer: All statements, whether expressed verbally or in writing are the opinions of TechniTrader, its instructors and or employees, and are not to be construed as anything more than an opinion. Student/subscribers are responsible for making their own choices and decisions regarding all purchases or sales of stocks or issues. At no time is any stock or issue on any list written or sent to a student/subscriber by TechniTrader and its employees to be construed as a recommendation to buy or sell any stock or issue. TechniTrader is not a broker or an investment advisor it is strictly an educational service.

Are you Prepared?

a Are you Prepared? Martha Stokes CMT teaches you how to prepare for the most active trading season... September through February are the busiest and most active trading months of the year, with heaviest trading volumes and higher energy.  Even though August appears to be quiet on the surface, there is a huge amount of activity just below the slumping Index action. If retail traders only watch the indexes they miss all of the underlying activity in August, which gives vital information about what to expect for trading in September and forward.Explorations that are customized to follow the indexes, do not track what is crucial to successful trading. Without this information retail traders are utterly reliant upon less than 10% of the listed stocks, and NONE of the Exchange Traded Derivatives which at this time is 1,395 ETFs. The NASDAQ currently has 2,663 listings, the NYSE has 4,632, AMEX 438, and OTCBB 1,076.The S&P500, Dow, and NASDAQ only represent 630 companies.  The remaining 9,574 trading instruments on the exchanges represent a far larger body of stocks that do not always follow the lead of the indexes. In fact of you were to study this huge group of stocks and ETFs, you would discover that often times these lead the indexes. This is because they expose the direction and sentiment of the giant funds. They reveal the Sell Side institutions and Buy Side institutions and their interest or lack of interest, their accumulation or their distribution in and out of sectors and industries, and whether they are going to move into large cap or are vested in smaller cap stocks.All of this information is available IF you use Explorations that are defined to track the institutions both Sell Side and Buy Side, and where they are placing money and where they are rotating. This activity is not seen on the indexes. It can only be studied by using Explorations designed to expose what is going on with the vast majority of stocks and ETFs that are not listed on indexes.If you are a TechniTrader® Student using our Advanced Tools specifically designed for MetaStock, you have all the Explorations you need to study the underlying market beneath the major indexes in relation to how the indexes are performing.  In addition you also have specific Explorations for your trading styles such as Swing or Position trading, price levels, strategies, and quiet accumulation tracking bottoming or topping action.  The goal of trading should be to streamline your trading process so that you spend more time trading and less time trying to find stocks to trade.  This means understanding the market conditions so that you can select the right stocks for the current trading conditions, the correct strategies to use based on which market participants are in control of price at that time, and the overall sentiment of the underlying securities because these lead the market action most of the time.If you are still using the 3 major indexes as your guide to trading you are missing a huge chunk of critical information. This can be one of the reasons for chronic losses, whipsaw trades, and disappointing net profits.  Upgrade your trading process by incorporating not only the 3 major indexes, but also the analysis of the bulk of the market which are the underlying securities not listed on the 3 big indexes.For more information regarding Explorations that are defined to track the institutions both Sell Side and Buy Side, sign in to watch a free TechniTrader - MetaStock Webinar "Explorations: Beyond the Basics" CLICK HERE or http://goo.gl/bhE7F3Member of Market Technicians AssociationMaster Rated Technical Analyst for Decisions Unlimited, Inc.Instructor and Developer of TechniTrader® Stock Market CoursesFor additional training visit http://technitrader.comThis Stock Discussion and Training Lesson is sponsored by TechniTrader.com©2013 Decisions Unlimited, Inc. dba TechniTrader® All Rights Reserved.Disclaimer: All statements, whether expressed verbally or in writing are the opinions of TechniTrader® and its instructors or employees, and are not to be construed as anything more than an opinion. Student/subscribers are responsible for making their own choices and decisions regarding all purchases or sales of stocks or issues.  At no time is any stock or issue on any list written or sent to a student/subscriber by TechniTrader® and its employees to be construed as a recommendation to buy or sell any stock or issue. TechniTrader® is not a broker or an investment advisor it is strictly an educational service

Discussion de TechniTrader Stock hebdomadaire: « 7 choses que vous devez savoir sur le commerce de l'introduction en bourse »

MetaStock ® SPRS - semaine 144 - 8 novembre 2013 - configuration spatiale MetaStock reconnaissance compétences série écrite par Martha Stokes CMTL'IPO Facebook a laissé un vilain après goût à beaucoup de petits investisseurs et commerçants, qui ne savent pas ce qu'ils devaient connaître le commerce ou investir dans un placement initial.Maintenant avec les plus bas marché Twitter BPR côté rejette cette débuts. ce qui rend un grand Pape et lui condamne à d'autres offices de propriété intellectuelle à l'échec ?  Faire est salaire une IPO spectaculaire en 2012 que TechniTrader élèves ont appris plus haut avant même qu'ils avaient IPO ?   Voici 7 choses que vous devez connaître le commerce ou investir dans un placement initial, mais personne ne lui dit.Vente au détail et les investisseurs de détail sont les plus importants investisseurs pour un nouveau départ à sac. Particuliers fortunés sont les plus importants investisseurs, ni des traders professionnels.  Le participant du marché dont les questions sur le plan de la réussite d'une introduction en bourse sont vraiment les institutions de Institutions.To acheter géant grand côté suivent géant acheter côté pour savoir quel IPO sont intéressés et qu'ils achètent n'est pas simplement une question d'avoir les bons indicateurs qui vous achetant quand les géants. Ces indicateurs ont été rédigés pour nos marchés modernes, alors que le MACD, stochastique et autres indicateurs plus âgés ne vous dites pas cette information essentielle. Pourcentage de participation institutionnelle est important. Facebook avait moins de 2 % institutionnel dans les premiers mois après qu'il serait IPO, parce que la propriété fonds géant FB immédiatement et l'effondrement des actions a été principalement en raison de leur manque d'intérêt. Une bonne OPI aura n'importe où de 40 à 90 % propriété institutionnelle. C'est parce que la plupart des investisseurs des fonds beaucoup plus petits et plus petits ont peur d'investir dans une introduction en bourse.  C'est parce qu'ils ne savent pas quelle information est nécessaire pour effectuer une évaluation appropriée d'une jeune entreprise et d'écouter de la recommandation de gourous et de services qui tentent simplement de tirer sur un lot d'actions IPO rapidement.Revenu et question de revenu mais une entreprise peut avoir un pape fort même si ne pas réaliser un bénéfice, même si c'est de montrer qu'il peut faire un bénéfice dans une chambre ou deux ou trois trimestres. Les investisseurs à long terme des institutions géant et j'ai acheté dans une jeune entreprise en face des rapports forts gains. Ils peuvent dire quand une entreprise a tout ce dont vous avez besoin pour réussir.  Trouver les plateformes.  Accumulation tranquille est une très nette tendance dans les graphiques. Forme de lustres dans une formation de bloc avec constants hauts et des bas. C'est en raison de l'ordre spécialisée qui utilisent régulièrement les piscines sombre géante de fonds.  Ce supports spécialisés d'ordre, c'est ce qui maintient le prix à un côté du modèle de la plate-forme. Il s'agit d'une nouvelle facette qui ont commencé à apparaître dans les listes il y a moins de dix ans. C'est une pièce essentielle de l'analyse graphique pour les investisseurs particuliers et commerçants car il vous indique si c'est la production accumulation tranquille.  Côté géante acheter institutions garder leurs investissements très privé et ne divulguent leurs avoirs jusqu'à ce qu'ils sont obligés de le faire sur une base trimestrielle. Seulement dans les lettres de stock voir rapidement ce qu'ils achètent devant la reports.Company trimestriel gestion est importante pour une nouvelle société. N'importe comment grand une entreprise, mais qui est si bien géré. Facebook avait plusieurs problèmes, y compris les investisseurs privés nombreux, près de 500.  Il y avait aussi beaucoup d'investisseurs privés et les initiés désireux de vendre trop tôt avis affaiblissement de Facebook.  Le PDG et le Conseil d'administration peuvent faire ou défaire une introduction en bourse.  Il n'est pas seulement l'assureur doit être présenté à la société.Les actions offertes dans l'introduction en bourse. Un des plus grands indicateurs d'avertissement pour Facebook était leur stock énorme offrant.  C'était trop grande d'offrande à une introduction en bourse de bonne et forte. Grands offices de propriété intellectuelle plus jeter et en cours d'exécution LNKD, salaires et autres avaient des petites actions. Ce qu'il fait, c'est qu'il crée une forte source par rapport à l'équation de la demande d'actions qui tient le sac vers le haut.Il y a nombreux simple de décider des moyens est une QU'IPO fera bien ou pas, mais vous ne trouverez pas ces informations dans n'importe quel commentaire de recommandation ou de gourou.  Est de comprendre la dynamique interne du marché où les vraies informations vous avez besoin.Pour plus d'informations Comment suivre les fonds géants qui utilisent des piscines foncé montre « Indicateurs de Stock vidéo de formation en ligne » à l'analyste de marché technique nominale AssociationMaster technique de http://goo.gl/6NRQe9Member pour choix illimités, Inc.Instructor et développeur de sac TechniTrader discussion CoursesThis Stock et leçon de formation parrainé par TechniTrader.com © Décisions 2013 Unlimited, Inc.  Tous droits Reserved.TechniTrader est la marque déposée de fabrication Unlimited, Inc.AVERTISSEMENT : toutes les déclarations, si elle s'exprimer verbalement ou par écrit sont les opinions de TechniTrader et de leurs enseignants ou salariés et ne doit pas être interprété comme quelque chose de plus qu'une opinion. Étudiant / abonnés sont responsables de faire leurs propres choix et des décisions à l'égard de tous les achats ou les ventes d'actions ou de questions.  À aucun moment est toute action ou question dans aucune liste, écrit ou envoyé à un étudiant ou un abonné pour TechniTrader et ses employés d'être interprétée comme une recommandation d'acheter ou de vendre toute action ou question. TechniTrader n'est pas un courtier ou un conseiller en placements est strictement un service éducatif.

Conseils de support : moniteur MetaStock septembre - 13 octobre

FAITES CE QUE JE RECHERCHER DES VALEURS BASÉES SUR LES DONNÉES FONDAMENTALES. ?MetaStock ne peut filtrer des valeurs basées sur les prix basé sur les indicateurs et les données sur les prix. Toutefois,MetaStock Professional, programme de MetaStock XENITH pouvez rechercher et afficher de stockbasé sur un ensemble beaucoup plus diversifié des critères. Pour ce faire :1. Ouvrez XENITH MetaStock.2. Regardez en haut à gauche et trouver l'icône bleue qui montre une loupe au-dessus un (onglet AvancéRechercher).3. Cliquez sur l'icône et sélectionnez Equites-> entreprises4. La recherche d'écran entreprises s'ouvre.5. En bas à gauche, cliquez sur le bouton critères ajouter.6. Sélectionnez les données fondamentales souhaitées dans la liste7. Une nouvelle ligne est ajoutée à l'écran de recherche et vous pouvez spécifier les exigences relatives aux donnéesvaleur.8. Ajouter autant de critères que vous voulez et cliquez sur le bouton Rechercher.