chart nexus addons manual

User ManualVersion3.0.6

Prepared byFiNEX Solutions

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

January 14, 2010

ChartNexus Add-ons

•••

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 anyelectronic 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 theaccuracy or completeness of the contents of this document and specifically disclaimall 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 educationalreference, to assist you in better understanding of the ChartNexus software system. Ifyou require professional assistance or investment advice, you are strongly advised toengage the services of a competent financial adviser.

FiNEX Solutions shall not be held liable for damages arising here from. The fact thatan 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 theinformation or recommendations made by the organization or the website. Further, youshould be aware that the Internet websites listed in this document may have changed ordisappeared between when this document was written and when you read it.

For general information and updates on our products and services, please visit our website at http://www.chartnexus.com .

Trademarks

ChartNexus is a registered trademark; XPertTrader, XPertTrader TestDrive, XPert-Trader Indicators, XPertTrader Candlesticks, ChartMaker, IndexCreator are trademarksof 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. Theadd-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 includingdata services, web-based charting solutions, consultancy on integration of financialcharting systems, education and training and other solutions.

For more information, please contact [email protected] .

www.chartnexus.com

http://www.chartnexus.com

[email protected]

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/RetreatedFrom 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 AndTouching/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 AndTouching/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 AndTouching/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/OverboughtRegion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128

www.chartnexus.com

TABLE OF CONTENTS vii

3.19.5 Smoothed RSI Rebounded/Retreated In Oversold/OverboughtRegion 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/OverboughtRegion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151

3.21.5 Williams %R Rebounded/Retreated In Oversold/OverboughtRegion 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 powerof 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 ofplan :

• 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 technicalindicators which you can mix and match to create more sophisticated rules.

• XPertTrader Candlesticks : This module includes the commonly used Japanesecandlestick 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).

1

www.chartnexus.com

http://www.chartnexus.com/products/subscribe.php


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-timefee).

• ChartMaker : Let you create professional-looking charts easily with superbcustomization.

1.3 Benefits of Using Add-ons

We adopted this modular, subscription-based approach as we think it will benefit bothyou (the user) and us (the user and developer).

1. Changing times require evolving capabilities. As the Market evolves, tradersand investors are increasingly employing sophisticated software to assist them intheir investments. Compared to one-off-one-time-fee charting software, havinga subscription-based software guarantees that you are always at the forefront toexplore new capabilities and enhancements.

2. New versions and features upgrades are free. Since you are on a subscriptionplan, 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 yoursubscrption period.

3. Pay for what you need. Why pay for software with 80% of the functions thatyou will hardly ever used ? With our add-on modules, you can mix and matchthe modules and subscribe to those that you truly need.

4. Money back guarantee. We believe in giving you only the best. If within theperiod of refund (see our subscription policy http://www.chartnexus.com/legal/software.php) you’re not satisfied or happy with the Add-ons, we willrefund you.

1.4 How To Subscribe ?

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

http://www.chartnexus.com/legal/software.php

http://www.chartnexus.com/legal/software.php

http://www.chartnexus.com/products/addons.php

1.5. Subscription Information 3

1.5.1 Checking subscription information

The subscription information window will contains about the details of your activesubscription.

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 onmodules. So the subscription information may not be reflected on the subscriptionwindow immediately. To update your subscription manually (which usually you don’thave to), click on the Update button and the latest subscription information will beretrieved 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 andefficiently.

2.1.1 Components of ChartNexus XPertTrader

It consists of :

a) Rules Composer (RC) : Allows you to create single or multiple rules and save/sharethem.

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 createyour 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 andmore with superb ease

• Flexibility to customize parameters of the indicators/rules

5

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 formonthly subscription. Seehttp://www.chartnexus.com/products/addons.php

NOTE #2: You can now try out with ChartNexus XPertTrader TestDrive to see howChartNexus 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 consistencyEmotion is often the culprit in irrational decision making when it’s time to buyor sell stock. Consequently, investors/traders either end up taking profit too earlyor end up losing a lot of money.

By following a well-developed, tested and customized trading system that youcreate, the system will automate the decision-making process thereby eliminat-ing emotional, irrational decision, more importantly having consistent results.

• Uncover potential trade candidatesBy defining a set of rules and coupled with our screener, it is now possible toscreen 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 timeTime is money. Once you have established your own customized trading systemusing your own set of rules, the process of tracking and spotting stocks can befully automated. You are then free to channel your energy and time on analysisand uncovering hidden stocks which would otherwise be overly time-consumingto spot them manually.

• Trading system made easyBuilding up a trading system can be a complex and challenging process. Whybother with scripting or learning another programming language just to buildyour own trading system ? Let us worry about the gory details of the softwarecode, and you focus on building up your trading system.

• Easily test our your idea and refine your strategyGot 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 continuouslyrefine 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 (seeFigure 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 seewhen 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 canchange the rules’ parameters here.

4. Buttons to add/remove rules and mix and match them with logical operatorsAND/OR.

5. The rules that you have composed.

6. The drop-down list will contain all the rules that you saved. On the right sideof the list, there are buttons where you can save, remove, import and export therules.

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 canuse it for backtesting to test out your trading ideas and to use it to screen for potentialhidden gem stocks.

NOTE: Indicators and Candlesticks rules are available for subscription separately oras a bundle. General rules are made available with any of the two subscription. Seehttp://www.chartnexus.com/products/addons.php for more information.

We have set up a platform called XPertTrader Library XPL to facilitate the sharing andexchanging of rules created by users or us. Besides that, you can find out more tips andinformation on the various rules or aspects pertaining to XPertTrader athttp://www.chartnexus.com/support/docswiki/index.php/XPL

www.chartnexus.com


http://www.chartnexus.com/support/docswiki/index.php/XPL


2.4.2 Changing rules parameters

Each rule in Rules Composer has its own set of parameters. All rules in ChartNexuscome with a set of default parameters but you can edit and change them to your ownvalue. 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 asshown in Figure 2.3 (2).

2. Double click on the specific parameter to edit it and change to the value that youwant.

3. Save the changed rule to any name that you want. The saved rule will containthe 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 exchangedwith others. With ChartNexus XPertTrader, you can easily try out the rules created byothers by downloading the rules from XPertTrader Library (XPL).

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

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 (SeeFigure 2.5).

3) Before saving, under the save as type, click on All Files and then click on theSave button to save the rule to your Desktop (See Figure 2.6).

www.chartnexus.com

http://www.chartnexus.com/xpl


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 ImportRule 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 clickon 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 beensaved 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 successfullyimported 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 rulescomposed 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 sellsignal 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 oncharts.

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 thefollowing settings:

General settingsThe General Settings window is shown in Figure 2.12.

Figure 2.12: XPertTrader - Stock Screener’s general settings.

www.chartnexus.com


a) Price constraintsScreen for stocks which have prices within the specified minimum and maximumprice range.

b) Volume ConstraintsScreen for stocks which average the specified volume over a particular period.

Market trendThe 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 onlystocks 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 tableshown in Figure 2.11(7).

Viewing results on chart

Double click on the stock name (highlighted in blue) to view the chart with the rulesindicated 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 Savebutton (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 basedon historical market data to test out your trading ideas before actually applying themfor future real trades.

After backtesting, if the return on capital is not satisfactory, you can refine the set ofrules by going back to the Rules Composer to change the rules parameters before usingthe BT again to test. You can reiterate through this multiple times until you are satisfiedwith 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 oncharts.

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 andtweaking by changing some of these parameters.

Click on the Configure button in Backtester to configure the following five classes ofsettings:

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 constraintsTest on stocks with prices falling within the specified minimum and maximumprice range.

b) Volume constraintsTest on stocks which average the specified volume over a particular period.

c) Bid/Lot sizeThis specifies the minimum allowable bid/lot size of shares.

d) Buy/Sell price triggerIf 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 priceon 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 ofthe 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. Sochanging the settings values in Stock Screener will not affect the values in Backtesterand 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 weightageThe amount of available capital is divided equally among all the stocks triggered.

b) Order of appearanceThe amount of available capital is used to buy the stocks that are first triggeredand returned.

NOTE: If the checkbox next to Profits Allocation is checked, the profit obtained fromearlier 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 CapitalAllocation tab.

Portfolio strategy

The Portfolio Strategy window is shown in Figure 2.18. You can set your portfoliopreferences (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 profittaking and stop loss strategies independent to technical indicators. ChartNexus hasincorporated these settings in Backtester to allow you to decide when to exit fromwinning 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 tableshown 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 thetriggered 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 rulesindicated 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 haveselected), click on the Statistics button (see Figure 2.14(9)) to view the performancestatistics 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 capitalThe initial capital investment for the portfolio.

b) Cash on handThe 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. sellall 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 yourprofits.NOTE: Cash on hand and Capital available (assume profit not-reinvest) will besimilar if users do not uncheck the checkbox of Profits Allocation in ConfigureCapital 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 tradesThe amount of trades that have been done.

h) Total net profit/lossThe amount of profit/loss of all the trades done.

i) Percentage profits (%)Percentage of profitable trades of all the trades done.

j) Highest portfolio valueThe highest transaction fee among all trades done.

k) Open positionsNumber of long/short positions that are still not closed.

l) Open positions profit/lossProfit/loss of the open positions.

m) Total commission paidThe amount of commission paid for the trades made.

n) Profit of profitable tradesThe amount of money gained for all profitable trades.

o) Average profitAverage amount of money gained for all profitable trades.

p) Largest profitThe largest amount of money gained in a profitable trade.

q) Smallest profitThe smallest amount of money gained in a profitable trade.

www.chartnexus.com

2.6. Backtester 28

r) Largest profitable trade commissionThe commission paid for the most profitable trade.

s) Commission paid for profitable tradesTotal commission paid for all profitable trades.

t) Average commission paid for profitable tradesAverage commission paid for all profitable trades.

u) Loss of unprofitable tradesThe amount of money lost for all unprofitable trades.

v) Average lossAverage amount of money lost for all unprofitable trades.

w) Largest lossThe amount of money lost in the most unprofitable trade.

x) Smallest lossThe amount of money lost in the least unprofitable trade.

y) Largest loser commissionThe commission paid for the most unprofitable trade.

z) Commission paid for unprofitable tradesTotal commission paid for all unprofitable trades.

a2) Average commission paid for unprofitable tradesAverage commission paid for all unprofitable trades.

b2) Total profitable tradesTotal profitable trades within the Backtester period.

c2) Profitable long tradesTotal profitable long trades (i.e. buy, then sell) within the Backtester period.

d2) Profitable short tradesTotal profitable short trades (i.e. sell, then buy) within the Backtester period.

e2) Total unprofitable tradesUnprofitable trades within the Backtester period.

f2) Unprofitable long tradesTotal unprofitable long trades (i.e. buy, then sell) within the Backtester period.

g2) Unprofitable short tradesTotal 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 Savebutton (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 XPertTraderParameters Explained

3.1 Overview

We have pre-defined a set of common rules in ChartNexus XPertTrader which can beused by you to build your own trading system. Based on these set of rules, you caneasily mix and match and customize the parameters of each of the rule without theneed to worry about programming any of the rule yourself.

There are altogether three categories of rules that are found in ChartNexus XPertTradernamely (a) General (b) Indicators (c) Candlesticks. For each of the rule, they are a buyand sell rule for it. Depending on what you want to do, you can easily compose thebuy/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 thatare 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, dropus 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/lowerfrom the previous price

• t2 - the minimum duration succeeding the peak/trough to attain x2% lower/higherfrom 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 forcalculation of high peak and low peak. Otherwise if Close is chosen, only theclose price will be used

• Rule type - This parameter controls the different intervals: daily (default), weeklyor monthly. This is similar to the concept as viewing your chart in daily, weeklyor monthly view. E.g. by setting a rule type to daily, the system will screen forpatterns that match on a daily basis

www.chartnexus.com


• Data type - This parameter is ONLY applicable when you set the rule type toWEEKLY or MONTHLY There are two data settings available:(1) Completed(2) Progressive

• To illustrate, assume the followinga) today is 28th June 2007, Thursday, 8pm after market closedb) 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 Juneie 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 wherethe trading data is available.

(2) Completed Data Contrast this with (1), the system will not consider the datafrom 25th to 28th June under this setting since there is still tomorrow, 29th Junewhich 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 withfull/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 theavailable data, the available data will be used

• x - the maximum percentage above the ’historical high’ before price trigger. Ifboth 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. Ifboth 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 totalavailable periods, total available period will be used

• x - the maximum percentage above the ’historical low’ before price trigger. Ifboth 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. Ifboth 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 beused



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 willbe 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 willbe 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 ofthe 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 duringwhich 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 theprice

• Acc/Dis MA Period - the period used for the moving average calculation of theAcc/Dis

• Acc/Dis On Right - if value is set to ’yes’, only divergences with Acc/Dis slopeon 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

• Min Overlap Length - the minimum number of overlapping periods duringwhich price and Acc/Dis converge


• Acc/Dis Slope - the minimum slope of the moving average of Acc/Dis


• Acc/Dis MA Period - the period used for the moving average calculation of theAcc/Dis

• Acc/Dis On Right - if value is set to ’yes’, only convergence with Acc/Dis slopeon 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 averageline



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






www.chartnexus.com


3.5.3 Bollinger Bands - Price Touched Band And Rebounded/RetreatedFrom Band

Figure 3.28: Bollinger Bands - Price Touched Band And Rebounded/Retreated FromBand.

• Buy - Price rebounds from lower band

• Sell - Price retreats from upper band




• 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




• 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




• Min Overlap Length - the minimum number of overlapping periods duringwhich price and CMF diverge


• CMF Slope - the minimum slope of the moving average of CMF


• CMF MA Period - the period used for the moving average calculation of theCMF

• CMF On Right - if value is set to ’yes’, only divergences with CMF slope onthe 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




• Min Overlap Length - the minimum number of overlapping periods duringwhich price and CMF converge


• CMF Slope - the minimum slope of the moving average of CMF


• CMF MA Period - the period used for the moving average calculation of theCMF

• CMF On Right - if value is set to ’yes’, only convergence with CMF slope onthe right side of price slope are triggered

• 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 fallby 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) thecenterline 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 itslow/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/+100And 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 thehigh 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 ForceIndex

• 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 ForceIndex 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 ForceIndex


• t1 - the periods that moving average of Force Index is above Center Line


• x - the minimum distance between Center Line and moving average of ForceIndex 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 whichprice and Force Index converge


• Force Index Slope - the minimum slope of the moving average of Force Index


• Force Index MA Period - the period used for the moving average calculation ofthe Force Index

• Force Index On Right - if value is set to yes, only convergence with Force Indexslope 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





• Min Overlap Length - minimum number of overlapping periods during whichprice and Force Index converge


• Force Index Slope - the minimum slope of the moving average of Force Index


• Force Index MA Period - the period used for the moving average calculation ofthe 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 BlackWindow

• t2 - the number of periods that the EMA lines must not cross after the BlackWindow



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 calculationof 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 crossmany times without affecting the triggering of the stock

• t1 - the minimum number of periods that the base line and conversion line didnot cross before the Black Window

• t2 - the minimum number of periods that the base line and conversion line didnot 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 calculationof 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 usesimple 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 movingaverage in the MACD calculation

• Signal Period - the number of periods used for the period of the signal line



Setting Both EMA PeriodsWhat does MACD crossing centerline or MACD=0 means? It means that the differencebetween both Moving Averages are zero or you can interpret it as crossing of movingaverages. This will be the same as applying MA Dual Crossover rule. Hence, yourchoice of MA periods largely depends on your investment horizon. The typical settingsfor short term trading are 12-day and 26-day MA. In this case, when MACD crossesover centerline, we have EMA(12) crossing over EMA(26) which indicates a bullishsignal. 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 onMACD 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 MACDwhich constitutes the signal line

• x(%) - the minimum distance between the MACD line and the signal line itemt- the maximum number of periods that x occurs



Setting for Short,Long and Signal PeriodsYour choice of MA periods largely depends on your investment horizon. The typicalsettings 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 MAcrossover but the focus is on rate of change in price rather than the movement of priceitself.

Setting for xSince x is the minimum distance between MACD and the signal line, a small x wouldtherefore 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 asstronger 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 tt can also act as a confirmation of the MACD crossover to avoid screening noisycrossovers 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





• Min Overlap Length - the minimum number of overlapping periods duringwhich price and MACD converge

www.chartnexus.com

3.12. MACD 83


• MACD Slope - the minimum slope of the moving average of MACD


• MACD MA Period - the period used for the moving average calculation of theMACD

• MACD On Right - if value is set to ’yes’, only divergences with MACD slopeon 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-termmoving average in the MACD calculation

• MACD Signal Period - the number of periods used for EMA calculation ofMACD 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



• Min Overlap Length - the minimum number of overlapping periods duringwhich price and MACD converge


• MACD Slope - the minimum slope of the moving average of MACD


• MACD MA Period - the period used for the moving average calculation of theMACD

• MACD On Right - if value is set to ’yes’, only convergence with MACD slopeon 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-termmoving average in the MACD calculation

• MACD Signal Period - the number of periods used for EMA calculation ofMACD 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 averageof 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 consecutivegreen 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) withinx +/- 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 RegionAnd 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 recentpeak(buy)/trough(sell)

• x3 - the minimum amount MFI had moved above(buy)/below(sell) the recentpeak/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




• Min Overlap Length - the minimum number of overlapping periods duringwhich price and MFI diverge


• MFI Slope - the minimum slope of the moving average


• 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 theright 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




• Min Overlap Length - the minimum number of overlapping periods duringwhich price and MFI converge


• MFI Slope - the minimum slope of the moving average of MFI


• 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 theright side of price slope are triggered

• 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 usesimple moving average

• Black Window - the duration where the MA lines may cross many times withoutaffecting the triggering of the stock

• t1 - the number of periods that the two MA lines must not cross before the BlackWindow

• t2 - the number of periods that the two MA lines must not cross after the BlackWindow



Setting MA PeriodMA 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. Hencewe need to set the MA-period according to our investment horizon. For example, inmedium-term trading, we tend to use MA(25) and MA(50) as guidelines. Also, EMAis relatively better than MA in tracking recent price action.

Setting t1t1 enables us to screen for stronger crossover signals. The longer t1 is, the clearer weare that prior trend was strong and thus it is more likely that the crossover implies moremomentum.

Setting t2t2 determines how soon you want the signal to be triggered after the crossover whichhappens in Black Window. If you are eager to catch the trend as soon as the crossoverhappens, set t2 to 0. Less aggressive traders can set t2 to 3-5 days, avoiding possiblewhipsaws.

Setting Black WindowBlack Window determines the period where crossover(s) can happen. The minimumvalue you can set is 1. If you set a long Black Window, you can set shorter t2 and viceversa 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 withoutaffecting the triggering of the stock

• t1 - the number of periods that the three MA lines must not cross before theBlack Window

• t2 - the number of periods that the three MA lines must not cross after the BlackWindow



Setting MA PeriodMA are lagging indicators. The longer the MA the more insensitive it is to recent priceaction but it indicates a clearer trend and momentum of the price movement. Hencewe need to set the MA-period according to out investment horizon. For example, inmedium-term trading, we tend to use MA(25) and MA(50) as guidelines. Also, EMAis relatively better than MA in tracking recent price action.




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 timeswithout affecting the triggering of the stock

• t1 - the number of periods that the price and MA must not cross before the BlackWindow

• t2 - the number of periods that the price and MA must not cross after the BlackWindow



Setting MA PeriodMA are lagging indicators. The longer the MA the more insensitive it is to recent priceaction but it indicates a clearer trend and momentum of the price movement. Hencewe need to set the MA-period according to our investment horizon. For example, inmedium-term trading, we tend to use MA(25) and MA(50) as guidelines. Also, EMAis relatively better than MA in tracking recent price action.

www.chartnexus.com





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 lineis +/- 1 size

• x(bid size) - the minimum number of bid sizes among the difference of MA1line 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 triggeredtime



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 otherwiseuse simple moving average

• Lower Exponential - Select ‘yes’ to use exponential moving average otherwiseuse 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




• Min Overlap Length - the minimum number of overlapping periods duringwhich price and OBV diverge


• OBV Slope - the minimum slope of the moving average of OBV


• 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 onthe right side of price slope are triggered



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




• Min Overlap Length - the minimum number of overlapping periods duringwhich price and OBV converge


• OBV Slope - the minimum slope of the moving average of OBV


• 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 onthe right side of price slope are triggered



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 averageof 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 otherwiseclose 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)from lower(buy)/upper(sell) limit +/- 1

• 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) withinx +/- 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 beforecrossing 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 RegionAnd Touching/Crossing Limit

Figure 3.86: RSI Rebounded/Retreated In Oversold/Overbought Region AndTocuhing/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 PeriodUsually 14 days are used in the RSI calculation for daily chart and 14 weeks for weeklychart. The shorter the RSI period, the more sensitive the oscillator becomes and widerits amplitude. Therefore, if your trading horizon is very short, you might opt for RSIwith shorter time period, ie. 9 days. If you want to decrease the volatility of the RSIsignal, you can lengthen the RSI period, ie. 26 days.

Setting RSI Min and Max valuesWith this specific rule, you can setup rules to detect RSI at any level of choice andwould 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




• Min Overlap Length - the minimum number of overlapping periods duringwhich price and RSI diverge


• RSI Slope - the minimum slope of the moving average of RSI


• 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 theright side of price slope are triggered

• 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




• Min Overlap Length - the minimum number of overlapping periods duringwhich price and RSI converge


• RSI Slope - the minimum slope of the moving average of RSI



• RSI On Right - if value is set to ‘yes’, only convergence with RSI slope on theright side of price slope are triggered

• 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

• MA period - the number of periods used for the period of the moving averageof 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 FromLimit

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)from lower(buy)/upper(sell) limit +/- 1

• 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/OverboughtRegion

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) fromlower(buy)/upper(sell) limit




www.chartnexus.com


3.19.5 Smoothed RSI Rebounded/Retreated In Oversold/OverboughtRegion And Touching/Crossing Limit

Figure 3.97: Smoothed RSI Rebounded/Retreated In Oversold/Overbought RegionAnd 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 withinx +/- 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 recentpeak/trough (buy/sell)

• x3 - the minimum amount Smoothed RSI had moved above/below the recentpeak/trough (buy/sell)




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




• Min Overlap Length - the minimum number of overlapping periods duringwhich price and Smoothed RSI diverge


• RSI Slope - the minimum slope of the moving average of Smoothed RSI



• RSI On Right - if value is set to ‘yes’, only divergences with Smoothed RSIslope on the right side of price slope are triggered

• 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




• Min Overlap Length - the minimum number of overlapping periods duringwhich price and Smoothed RSI converge


• RSI Slope - the minimum slope of the moving average of Smoothed RSI



• RSI On Right - if value is set to ‘yes’, only convergence with Smoothed RSIslope on the right side of price slope are triggered

• 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 istrending

• MA period - the number of periods used for the period of the moving averageof 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)from lower(buy)/upper(sell) limit +/- 1

• 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) limitbefore 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/OverboughtRegion

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) fromlower(buy)/upper(sell) limit






3.20.6 Stochastic Rebounded/Retreated In Oversold/OverboughtRegion And Touching Crossing Limit

Figure 3.109: Stochastic Rebounded/Retreated In Oversold/Overbought Region AndTouching 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




• Min Overlap Length - the minimum number of overlapping periods duringwhich price and Stochastic diverge


• Stochastic Slope - the minimum slope of the moving average of Stochastic


• Stochastic MA Period - the period used for the moving average calculation

• Stochastic On Right - if value is set to ‘yes’, only divergences with Stochasticslope on the right side of price slope are triggered



• 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




• Min Overlap Length - the minimum number of overlapping periods duringwhich price and Stochastic converge


• Stochastic Slope - the minimum slope of the moving average of Stochastic


• Stochastic MA Period - the period used for the moving average calculation

• Stochastic On Right - if value is set to ‘yes’, only convergence with Stochasticslope on the right side of price slope are triggered



• 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


• MA Period - the number of periods used for the period of the moving averageof 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)from lower(buy)/upper(sell) limit +/- 1

• 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/OverboughtRegion

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) fromlower(buy)/upper(sell) limit





3.21.5 Williams %R Rebounded/Retreated In Oversold/OverboughtRegion And Touching/Crossing Limit

Figure 3.120: Williams %R Rebounded/Retreated In Oversold/Overbought RegionAnd 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 recentpeak/trough (buy/sell)

• x3 - the minimum amount Williams %R had moved above/below the recentpeak/trough (buy/sell)



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





• Min Overlap Length - the minimum number of overlapping periods duringwhich price and Williams %R diverge


• Stochastic Slope - the minimum slope of the moving average of Williams %R


• 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 slopeon the right side of price slope are triggered

• 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





• Min Overlap Length - the minimum number of overlapping periods duringwhich price and Williams %R converge


• WR Slope - the minimum slope of the moving average of Williams %R


• WR MA Period - the period used for the moving average calculation

• WR On Right - if value is set to ‘yes’, only convergence with Williams %Rslope on the right side of price slope are triggered

• 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 istrending

• MA period - the number of periods used for the period of the moving averageof 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



• MA Period - the number of periods used for the period of the moving averageof Williams %R


• Black Window - the duration where the Wm%R line and Wm%R MA line maycross 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 notcross before the Black Window

• t2 - the number of periods that the Wm%R line and Wm%R MA line must notcross 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



• MA Period - the number of periods used for the period of the moving averageof Williams %R


• Black Window - the duration where the Wm%R line and Wm%R MA line maycross 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 notcross before the Black Window


• t2 - the number of periods that the Wm%R line and Wm%R MA line must notcross 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 andscreening 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 2.4.3on how to import rules).

An easier and more convenient way to retrieve the rules will be to use XPertTraderLibrary (XPL). XPL serves as a platform for users to share their rules and making itpossible 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 toaccess 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 promptyou to enter a name for the rule.

d) Once you have entered the name, you can view the content of the rule in RulesComposer.

161

http://www.chartnexus.com/xpl.php

http://www.chartnexus.com/xpl.php

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 incorporatessome of the most frequently-used Japanese candlesticks pattern into XPertTrader. Withthat you can compose rules using candlesticks independently or in conjunction withother 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 thismodule.

2. Click on the Editor button to show the Candlesticks Editor which enables youcreate your own candlestick patterns.

3. Classification of candlesticks rules. User Buy Pattern and User Sell Pattern arecontain 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 Editorshown in Figure 5.2.

5.1. Editing Candlestick Patterns 165

Figure 5.2: Candlesticks patterns editor to manipulate and manage your candlestickspatterns.

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 previouslycreated candlestick patterns.

2. Fill in your description of candlestick patterns here.

3. Display of your candlestick patterns. Each line in this diagram represents onebid 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 thissection.)

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 chooseNone 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 trendif you choose either Up or Down trend in Trend Setup.

Relative Position Tolerance - This option defines the bid size tolerance between eachcandlesticks. For example a Relative Position Tolerance of 2 means that patternswith Candle1 and Candle2 that are off by two bids compare to what is shown onthe 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 canchoose 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 directlyfrom the chart without having to reproduce or compose them with the CandlestickPatterns 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 appearin 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 theregion (see Figure 5.5).

Figure 5.5: Drag and hold your mouse click to capture the candlestick patterns that youare 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 generatinglarge number of charts easily but with the flexibility to customize the settings for thecharts.

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 fromBacktester (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 canchange the color scheme by customising the various aspects of the charts and thenhave the color scheme to be applied to all the charts that you generate (see Figure 6.4for 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 yourpreffered 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 thatyou 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 uponre-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 pleasefollow 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), whichwill 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 panelto us.

Appendix A

Glossary

We have prepared a list of some of the jargons or words that you may come acrossin the investment world, particular in Technical Analysis. This list is by no meanscomprehensive, but it should be sufficient for most common purpose.

• Above the MarketA limit order to buy or sell a security for a specified price that is higher than thecurrent market price. If the market does not reach the specified price, the orderwill go unfilled.

• Absolute Breadth IndexDeveloped by Norman Fosback, the ABI is equal to the absolute value of thedifference between the advancing issues and the declining issues. It shows howmuch activity and volatility is taking place on the New York Stock Exchangewhile totally ignoring the price direction.

• Absolute Price Oscillator (APO)Also known as MACD indicator, APO is calculated by subtracting a longer-termExponential MA from a shorter-term Exponential MA.

• AccumulationOccurs when the supply of a security is less than the demand. After a declinein 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 orincrease existing long positions. In that case, the stock is said to have come underaccumulation.

• Accumulation/Distribution Line (A/D Line)A momentum indicator that relates price changes with volume. It relates theclosing price to the range of prices (intraday high-intraday low). The closer theclose is to the high, the more volume is added to the cumulative total.

• After HoursAny trade posting, adjusting, or changes made by specialists or member firmafter the official close of the market.

177

178

• AmortizationThe paying off of debt in regular installments over a period of time.

• Analysis of VarianceA technique used to improve the analysis over regression techniques. It canbe used for identifying relationships between predictor and criterion variables,whether the predictor variables are quantitative or qualitative in nature.

• AnalystA person with expertise in evaluating financial instruments. He or she performsinvestment research and makes recommendations to institutional and retail in-vestors to buy, sell, or hold. Most analysts specialize in a single industry orbusiness sector.

• Announcement DateThe date on which a company first publicly announces an impending stock split.

• Annual ReportYearly report made by a company to its stockholders. They usually contain abalance sheet, an income statement, a list of changes in retained earnings, andhow income of the corporation was used.

• AnnualizedThe translation of periods of less than a year into an annual rate for comparativepurposes. To annualize quarterly figures, you multiply them by four.

• ArbitrageThe simultaneous buying and selling of securities to take advantage of pricediscrepancies. Arbitrage opportunities usually surface after a takeover offer.

• Area PatternA pattern of sideways price movement that follows a stalled uptrend or down-trend of a stock or commodity. Some of these patterns (triangles, flags, wedgesetc.) have good predictive value.

• Ascending Trend ChannelAn ascending line that connects the bottoms of the down waves and is parallelto a trendline The ascending channel line and the trendline form borders on anuptrend.

• Ascending TriangleA sideways price pattern between two converging trendlines in which the lowerline is rising while the upper line is flat. This is generally a bullish pattern.

• AskAlso known as the “offer”, the price that the market maker guarantees to fill abuy order. A buy order placed at the market will usually be filled at the currentasking (offer) price. The ask price is usually greater than the bid price.

• AssetsAny 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 thatsame system.

• Average True Range (ATR)An indicator that measures volatility of a security. High ATR values indicatehigh volatility and may be an indication of panic selling or panic buying. LowATR readings indicate sideways movement by the stock.

• Bar ChartA chart of price versus time. The horizontal axis represents the passage of timewith 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 andlow price of the security; a short horizontal protrusion to the right of the verticalline shows the closing price.

• BasingA 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 tosee a basing period after a lengthy decline of the stock price. Basing may be asign of accumulation.

• BasisThe difference between cash prices and the futures contract prices.

• BearA person who believes prices will decline and might be described as having a“bearish” outlook. Bear markets

• Bear MarketA market when prices are declining. Occur when roughly 80% of all stocksdecline for an extended period of time.

• Bear TrapA signal which suggests that the rising trend of an index or stock has reversedbut which proved to be false. Thus trap the bears that acted on the signal withlosses. A bear trap is a form of whipsaw and relates to the spring.

• BearishThe belief that market prices will decline.

• Below the MarketA limit order to buy or sell a security for a specific price that is lower than thecurrent market price. If the market does not reach these prices, the order will gounfilled.

• BidThe price at which the market maker guarantees to fill a sell order. A sell orderplaced at the market will usually be filled at the current bid price. The bid priceis usually less than the ask price.

• BlockA purchase or sale of a large number of shares. This term is relative.

180

• Blowoff

See Reversal Spike-High

• Blue ChipA well known, public company that is thought to be in good financial shape andhave sound fundamentals (profitability, earnings). An investment in a blue chipis regarded as a safe investment. Examples include DBS, UOB and OCBC.

• Bollinger BandsAn indicator that allows users to compare volatility and relative price levels overa period of time. It consists of three bands designed to encompass the majorityof a security’s price action. Prices will often meet resistance at the upper bandand support at the lower band.

• Market BreadthA comparison of the number of issues traded with the number of issues listedfor trading. A rally is considered a suspect if the number of advancing issues isdiminishing as the rally develops. Conversely, a decline which is associated withfewer and fewer stocks falling is considered to be a bullish sign.

• Breakaway GapA 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.

• BreakoutA substantial rise in price above a resistance level or a substantial decline inprice below the support level. When a breakout occurs, a price pattern is likelyto continue.

• BullA person who believes prices will advance and might be described as having a“bullish” outlook. Bull markets occur when roughly 80% of all stocks advanceover an extended period of time. 1982-87 and 1995-99 have been referred to asbull markets.

• Bull MarketA market when prices are rising. Occur when roughly 80% of all stocks advanceover an extended period of time.

• Bull TrapA signal which suggests that the falling trend of an index or stock has reversedbut which proved to be false. Thus trap the bulls that acted on the signal withlosses. A bull trap is a form of whipsaw and relates to the spring.

• Bump and Run ReversalA reversal chart pattern that forms after excessive speculation drives prices up toofar, too fast. It is designed to identify speculative advances that are unsustainablefor a long period.

• Buy SignalA condition that indicates a good time to buy a stock. The exact circumstancesof 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 StopA buy order usually placed above the current price, ensuring that a security wouldhave to trade at the set level before the buy order would be activated. By placinga buy stop order just above resistance, a trader can ensure that the security willbreak resistance before going long. On the other hand, traders looking to catch abottom or intraday low might place a buy stop below the current price, but nearsupport.

• BuybackA company’s repurchase of it’s own shares of stock.

• Buying ClimaxA sudden upward movement of a security’s price accompanied by extremely highvolume created by investors rushing in to buy the security. This often indicatesthat a security has been overbought and the price will fall. As it often happens atthe end of an up price movement, it typically represents a good time to sell.

• Buying on MarginA risky short-term strategy where a buyer borrows money from a broker to makean investment. The buyer believes the stock price will rise and is trying to maxi-mize profits by investing more money in the stock.

• Call OptionThe 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 upand is therefore bullish.

• Candlestick ChartA 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 theopen 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 GainProfit 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 unrealizedcapital gain is an investment that has not been sold yet but would result in a profitif 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/Distributionline (A/D line). CMF is not influenced by the daily price change, but focuses onthe location of the close relative to the range for the period (daily or weekly).

• ChannelA trading range between two parallel trendlines in which prices move. They canbe two parallel upward trendlines (upward channel); or two parallel downwardtrendlines (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

• ConfirmationA subsequent signal that validates a position stance. Traders and investors some-times compare the prices with two or more technical indicators to ensure theyare pointing in the same direction and confirming one another. For example,confirmation of a bullish trend is when the increasing prices are accompanied bya rising OBV.

• Congestion AreaA sideways trading range where supply and demand balance out.

• Consolidation AreaA trading range in which prices move until continuing in the same direction asthe trend prior to the consolidation area.

• Continuation PatternOccurs in the Consolidation Area. It is a type of chart pattern that occurs inthe middle of an existing trend. The previous trend resumes when the pattern iscomplete. Examples include the Pennant continuation patterns.

• Contra-Trend SignalsBullish patterns in bear markets and vice versa.

• CorrectionAfter an advance, price declines, but they do not penetrate the low from which theadvance began. Also referred to as a retracement, a correction usually retraces1/3 to 2/3 of the previous advance.

• CrossoverA point on a graph where two lines intersect. Depending on which lines theyare, a crossover may indicate a buy or sell signal. For example, the price linecrossing above a moving average line may generate a buy signal. Oscillatorssuch as MACD and CMF experience centerline crossovers.

• Customer Free BalancesThe total amount of unused money on deposit in brokerage accounts. These arefree funds representing cash which may be employed in the purchase of securi-ties.

• CycleA price pattern of movement that regularly occurs in a given time interval.

• Cyclical InvestingThe 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 suchprimary movements in stock prices are normally related.

• Cyclical StocksShares of companies that are highly sensitive to economic performance. Cyclicalstocks tend to perform well when the economy is growing and suffer when theeconomy contracts.

• Day TradingA 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 forlonger periods.

183

• DecliningA market stage of a stock that is characterized by a downtrend with subsequentlylower highs and lower lows.

• Descending TriangleA sideways price pattern between two converging trendlines in which the uppertrendline is descending while the lower line is flat. This is generally a bearishpattern.

• 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 asthe +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 -DIlines.

• DistributionOccurs when the demand of a security is less than the supply. After an advancein price, a stock may start forming a top and trade sideways for an extendedperiod. In the mean time, well-informed traders and investors may seek to unloadpositions. In that case, the stock is said to have come under distribution. A quietdistribution period is usually subtle and not enough to put downward pressure onthe price. However, an aggressive distribution will likely put downward pressureon prices.

• DivergenceIt is the opposite of confirmation. It occurs when two or more indicators movein 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 kindsof divergences: positive and negative. A positive divergence occurs when the in-dicator moves higher while the stock is declining. A negative divergence occurswhen the indicator moves lower while the stock is rising. For example, a bearishdivergence is when increasing prices are accompanied by falling OBV. Anotherexample of bearish divergence is when price makes a high, pullback then makesa higher high; but RSI makes a high, pullback then makes a lower high.

• Double TopA 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 ofthe top.

• DowntrendA straight line drawn down and to the right above successive rally peaks. Thelonger 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 signalsa reversal of the downtrend.

• EnvelopesAlso 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 amarket has traveled too far from its moving average and is overextended.

184

• EquityIn 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 raisemoney is termed equity financing.

• ExchangeAn exchange is a physical location where securities are bought and sold. Itconsists of a primary and a secondary market. The primary market is the financialmarket where securities are issued and placed whereby the secondary markettrades the issued securities.

• Ex-Dividend DateThe first day of the ex-dividend period. If an investor does not own the stockbefore the ex-dividend date, they will be ineligible for the dividend payout. Theexchanges automatically reduced the price of the stock by the amount of thedividend for all pending transactions that have not been completed by the ex-dividend date.

• ExhaustionWhen buying power is no longer enough to move prices up or when selling poweris no longer enough to move prices lower.

• Exhaustion GapA price gap that occurs at the end of an important trend. It signals that the trendis concluding.

• Exponential Moving Average (EMA)A moving average that gives greater weight to more recent data in an attempt tosmoothen the moving average.

• Extended (in price)A term describing a stock that has risen past its pivot point. Such a stock isconsidered a risky investment because it has already begun its advance and ismore likely to reverse.

• False BreakoutA breakout of a chart pattern that aborts. To ensure that a breakout is genuine,look for confirmation by several indicators.

• Fibonacci NumbersA number sequence (i.e. 1,2,3,5,8,...) that is constructed by adding the first twonumbers to arrive at the third. The ratio of any number to the next number is61.8 percent, which is a popular Fibonacci retracement number. It is the ratio ofthe Fibonacci sequence that is important and valuable, not the actual numbers inthe sequence.

• FlagA continuation chart pattern that generally lasts less than three weeks and resem-bles a parallelogram that slopes against the prevailing trend. The flag representsa minor pause in a dynamic price trend.

• Fundamental AnalysisA 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 andearnings; as opposed to focusing to an analysis based on charts and market indi-cators (technical analysis).

• GapRepresents a price range on a chart at which no trading takes place. Also occurswhen the high of the day is below the low of the previous day or when the lowof the day is above the high of the previous day. Gaps are especially significantwhen accompanied by an increase in volume.

• Head and Shoulders BottomA well-known reversal pattern marked by three (or more) prominent troughs witha 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 isbroken, the pattern is complete.

• Head and Shoulders TopA well-known reversal pattern marked by three (or more) prominent peaks with amiddle peak (the head) that is higher than the other peaks (the shoulders). Whenthe trendline (neckline) connecting the troughs at the bottom of the pattern isbroken, the pattern is complete.

• IndicatorA value, usually derived from a stock’s price or volume, that an investor canuse to try to anticipate future price movements. Indicators are divided into twogroups: 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 usefulwhen stocks are trending. A moving average is an example of a lagging indica-tor. Leading indicators are designed to anticipate future price action and manycome in the form of oscillators, e.g. RSI and MACD.

• IndustryA grouping of companies in the same line of business. Industry groupings aremore specific to the business than sector groupings.

• Initial Public Offering (IPO)The first offering of common stock to the public.

• InsiderAny person who directly or indirectly owns more than 10

• InvestorAn 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 DayA 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 previousday’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 OrderAn order to buy or sell a security at a specific price. As opposed to a marketorder, limit orders might not be filled immediately if the market moves awayfrom the specified price.

• Line ChartPrice charts that connect the closing prices of a given market over a span of timethat form a curving line on the chart.

• LiquidityThe ease with which a stock may be bought or sold in volume on the marketplacewithout 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, MACDdisplays trend following characteristics, and by plotting the difference of themoving averages as an oscillator, MACD displays momentum characteristics.

• MACD HistogramA visual representation of the difference between the MACD line and signal line.The plot of this difference is presented as a histogram, making the centerlinecrossovers and divergences easily identifiable.

• Market CapitalizationAlso known as market cap, it is the total market value of a company (number ofshares outstanding multiplied by the price of the stock).

• Market OrderAn order to buy or sell a security at the prevailing market price. A sell order willmost likely be filled at the bid price and a buy order will be filled at the ask price.

• MomentumA 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 bearishinterpretations are found by looking for divergences, centerline crossovers andextreme readings.

• Money Flow Index (MFI)A volume-weighted momentum indicator that measures the strength of moneyflowing in and out of a security. It compares “positive money flow” to “negativemoney flow” to create an indicator that can be compared to price in order toidentify the strength or weakness of a trend.

• Moving Average (MA)An average of data for a certain number of time periods. It moves because foreach 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 thelag.

• New Highs and New LowsNew highs refers to the number of stocks recording their highest price level in52-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 movingaverages to smooth the results and are often plotted together for easy comparison.

• Odd LotsStock purchased in units less than 100 shares

• OfferSee 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 theperiod’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 withthe price chart of the underlying security to look for divergence or confirmation.

• OscillatorAn 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 orconfirmation.

• Over The Counter (OTC)A securities that are traded through a telephone and computer network.

• OverboughtA technical term which means that prices are considered too high and susceptibleto a decline. Overbought conditions can be classified by analyzing the chartpattern or with indicators such as Stochastic Oscillator and RSI. It is importantto 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 apullback.

• OversoldA technical term which means that prices are considered too low and may rally inan upward direction. Oversold conditions can be classified by analyzing the chartpattern or with indicators such as Stochastic Oscillator and RSI. It is important tokeep in mind that oversold is not necessarily the same as being bullish. It merelyinfers that the security has fallen too far too fast and may be due for a reactionrally.

• Parabolic SARAn indicator that sets trailing price stops for long or short positions. Also referredto as the “stop-and-reversal indicator”. If the trend is up, buy when the indicatormoves below the price. If the trend is down, sell when the indicator moves abovethe price.

• PennantA continuation chart pattern that is similar to flag, except that it is more horizon-tal and resembles a small symmetrical triangle.

188

• Pivot PointThe point at which resistance disintegrates and the stock price begins to rise pastthe prior resistance level. This point can be considered the optimal time to buyas the bulls are gaining strength.

• Position TradingA style of trading characterized by holding open positions for an extended periodof time. Contrast this with day trading, where a trader buys, then sells out of aposition before the market closes that day.

• Price ChannelsSee Channel

• Price ObjectiveTechnical appraisal of a security’s future value.

• Price PatternsPatterns that appear on price charts possessing predictive values. They are eitherreversal and continuation patterns.

• Primary TrendThe predominant movement of a security. When it is up, it is known as a bullmarket; when it is down, it is known as a bear market.

• ProxyA security or index whose correlation with another security or index is so strongthat it is used as a substitute for the other.

• PullbackWhen a security or the overall market falls back from a previous advance.

• RangeThe distance between the high price and the low price for a given time period. Adaily 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 oscillatorby looking for higher lows, lower highs, positive and negative divergences, andcrosses above and below zero for signals.

• RallyA brisk advance following a decline in prices.

• ReactionA temporary decline following an advance in prices.

• RectangleA 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 theprevious trend.

189

• Relative Strength Index (RSI)A popular oscillator developed by Wilder. RSI is plotted on a vertical scalefrom 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, awarning is given of a possible trend reversal.

• ResistanceA price level at which there is a large enough supply of a stock available to causea halt in an upward trend and turn the trend down. Resistance levels indicate theprice at which most investors feel that prices will move lower.

• RetracementA 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 ofthe previous move, and a retracement of more than 2/3 typically signals a trendreversal.

• Reversal PatternA chart pattern that occurs before an existing trend reverses direction, e.g. a Headand Shoulder’s reversal pattern. A break below neckline support indicates thatthe Head and Shoulder’s pattern is complete and the prior uptrend has reversed.

• Reversal SpikeMarket turns that happen very quickly with little or no transition period.

• SectorA group of companies that generate revenue in similar ways, and tend to rise andfall with the economic cycle. Sectors are commonly broken down into smallergroups called industries. Examples of sectors are financials sector and technol-ogy sector.

• SecurityA security is a tradeable financial instrument with a financial value such asstocks, bonds, options and derivatives.

• Sell SignalA condition that indicates a good time to sell a stock.

• Selling ClimaxA sharp price decline accompanied by extremely high volume created by panicstricken investors dumping securities. This often happens at the end of a bearmarket and typically represents a good time to buy.

• Short CoveringThe 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 particulartime.

• Short SellingSelling stock not owned in anticipation of buying it back later at a lower pricefor a profit. It involves borrowing stock (usually from the broker) to sell shortand using margin to finance the borrowing.

190

• Signal LineAlso known as a “trigger line”, it is a moving average of another indicator that isused to generate simple buy and sell signals. The popular signal line is the onethat is built into the MACD display. A buy signal is generated when the MACDline crosses above the signal line and a sell signal is generated when the MACDline crosses below the signal line.

• SpreadThe 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.

• SpringA situation that occurs when prices break below the support line, but soon reversecourse and move back above support. Prices are said to “spring” back from theirsupport break and indicate that the bulls are still alive. A spring can also bereferred to as a failed (bearish) signal and is considered bullish. Generally, thereversal should occur within 1-3 days of the support break for the failed signalto be considered valid. This is the opposite of an upthrust.

• Stochastic OscillatorA momentum indicator developed by George Lane that measures the price of asecurity relative to the high/low range over a set period of time. The StochasticOscillator can be used like any other oscillator by looking for overbought/oversoldreadings, positive/negative divergences and centerline crossovers.

• Stop Loss OrderAn instruction to the broker to buy or sell stock when it trades beyond a specifiedprice. They serve to either protect the profits or limit the losses.

• Stop-And-Reversal IndicatorSee Parabolic SAR.

• SupportA price level at which there is sufficient demand for a stock to cause a halt in andownward trend and turn the trend up. Support levels indicate the price at whichmost investors feel that prices will move higher.

• Symmetrical TriangleA sideways chart pattern between two converging trendlines in which the uppertrendline is declining and the lower trendline is rising. The breakout througheither trendline signals the direction of the price trend.

• Technical AnalysisThe study of market action, usually with price charts, which includes volumeand open interest patterns. Compare this to Fundamental Analysis.

• ToppingA 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 commonto see a topping period after a lengthy increase of the stock price. Topping maybe a sign of distribution.

191

• TraderA trader is someone who tends to take a short to medium-term view when buyinga security. A trader usually relies on market volatility and swings to make profits.

• Trailing StopA stop-loss level set above or below the current price that adjusts as the pricefluctuates. For a long position, a trailing stop would be set below the currentprice and would rise as the price advances. Should the price decline and reachthe trailing stop, then a stop-loss would be triggered and the position closed. Aslong as the price remains above the trailing stop, the position is held. Indicatorssuch as the Parabolic SAR can be used to set trailing stops.

• TrendRefers to the direction of prices. It can be an uptrend or a downtrend.

• TrendlinesStraight lines drawn on a chart below reaction lows (in an uptrend) or above rallypeaks (in a downtrend) that determine the steepness of the current trend.

• TrianglesSideways price patterns in which prices fluctuate with converging trendlines. Thethree types of triangles are symmetrical, ascending and descending triangles.

• Triple TopA price pattern with three prominent peaks at about the same level. The triplebottom is the mirror image of the top.

• Typical PriceThe average of intraday high, low and close.

• UptrendA straight line drawn upward and to the right below the reaction lows. Thelonger the uptrend has been in effect and the more times it has been tested, themore significant it becomes. Violation of the trendline usually signals that theuptrend may be changing direction.

• UpthrustA situation that occurs when prices break above resistance, but soon reversecourse and break back below resistance. Also referred to as a failed (bullish)signal and is considered bearish. Generally, the reversal should occur within 1-3days of the resistance breakout for the failed signal to be considered valid. Thisis the opposite of a spring.

• VolatilityA measurement of change in price over a given period. It is usually expressed as apercentage and computed as the annualized standard deviation of the percentagechange in daily price. The more volatile a stock or market, the more money aninvestor can gain or lose in a short period of time.

• VolumeThe number of trades in a security over a period of time.

192

• WedgeA reversal chart pattern characterized by two converging trendlines that connectat an apex. The wedge is slanted either downwards or upwards demonstratingbullish or bearish behavior respectively.

• Weekly ReversalAn upside weekly reversal is present when prices open lower on Monday andthen 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 AverageA moving average that uses a selected time span, but gives greater weight to themore recent price data.

• WhipsawOccurs when a buy or sell signal is reversed in a short time. Volatile markets andsensitive indicators can cause whipsaws.

• Williams %RDeveloped by Larry Williams, Williams %R is a momentum indicator similar toStochastics Oscillator and is especially popular for measuring overbought andoversold levels.

Appendix B

Graphical User Interface (GUI)Glossary

To familiarize yourself with ChartNexus and derive the maximum benefit, this is a listof the GUI jargons that you will come across throughout this document.

• Close window or popup windowFound at the top right corner of any pop up window

NOTE: You can use shortcut key ESC found on your keyboard to close thewindow as well. See Appendix ??.

• Drop-down list or pull-down list

193

194

• Tooltip

• Menubar and menu

• Toolbar

• Pushpin

195

• Menu itemThe items found in the menubar

• Scrollbar

• Button

196

• Radio button

• CheckboxTo select/switch on the option, click on the checkbox once. To de-select/switchoff the option, click again on the checkbox.

• Textbox or input box

• Toggle buttonTo select/switch on the option, click on the toggle button once. To de-select/switchoff the option, click again on the toggle button.

197

• TableYou 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

Documents