Barchart.com helps
you create a roadmap
to help you navigate
through the markets
with a clear direction.
January 2017 • Technical Analysis of STOCKS & COMMODITIES • 41
to, since there is a limited number of criteria to choose from. You can set lters based on price quotes, fundamentals, technical, prole, and opinion. Within each of these are other criteria to select. After playing around with the different choices, I was able to come up with a scan that reduced the number of stocks to over 100. If you nd a scan you like, you can save it so you can use it again. After running the scan, select theresults tab and you’ll see a table listing all the stocks that met your criteria along with other details. If you set a lter based on the price quote and you want to see all the stocks with a new high price, you can sort columns by last price, weighted alpha, or price changes for different time periods (year, one month, three months). Once a scan is completed you can save the results as a watchlist, see all the results in ipcharts where you can scroll through all the charts, or download the results as a .csv le. You can, if you choose, go through each symbol on the list, analyze it more, and add an aler t or add it to your watchlist or portfolio.
Under the My Barchart tab, you can build custom portfolios, watchlists, alerts, screeners, data view tables, and chart templates. As you can see, there is enough information available on this site to make it your go-to stop before, during, and after market hours. And you’re not limited to US stocks. You can also view information from markets in Canada, UK, and Australia.
IT’S WORTH EXPLORING
Barchart.com may not be a substitute for your trading platform, although you could pay for premium services, one of which is BarchartTrader, which allows you to trade from your desktop, tablet, or phone. Other premium services include Barchart Premier, Trends In Futures, and Futures Trading Education. You have the opportunity to sign up for a 30-day trial for these services, some of which are offered by external companies. Even if you don’t sign up for the premium services, there’s enough on Barchart.com to keep you busy throughout the entire trading day.
FIGURE 1: STOCK MARKET OVERVIEW. Here you see the performance of the broader indexes, market leaders by price volume, and 52-week new highs and lows. If you scroll down you’ll see the most recent news, gainers and losers, top 100 stocks, performance leaders, and price surprises. All data is updated in real time.
FIGURE 2: SUPPORT & RESISTANCE LEVELS. Here you see the key turning points and support & resistance levels for the selected stock based on pivots, stochastics, Fibonacci, moving averages, highs/lows, RSI, and HLC.
42 • • & C
WAVES AND PROFIT-TAKING
Editor,
I am new to trading. I read the a rticle “Waves And Prot-Taking” in the November 2016 is- sue of S&C, and I am interested in nding out more about this theory.
I see that the author of the article, How- ard Wang, has published a book about it
called New Concepts In Trading: Prot-
Taking Theory, but it’s in Chinese. Will the book become available in English? Does the author have any other references on this theory in English?
RON TURMEL
Author Howard Wang replies:
Thank you for your interest. I do hope to publish the book at a later date in English.
WHICH TREND INDICATOR WINS?
Editor,
I enjoyed the October 2016 article in
STOCKS& COMMODITIES by Markos Kat-
sanos, “Which Trend Indicator Wins?” Prior to reading his a rticle, I had been curious about what trend indicator was best, and his ar ticle did an excellent job at reviewing four popular trend indicators. I have a few questions for the author: 1. I found the CI indicator mentioned in Katsanos’ book ( Intermarket Trading Strategies) to be one of the best in my CMT (Chartered Market Technician) studies. I wondered whether the author has evaluated the CI indicator perfor- mance as compared to r-squared or any of the other three indicators discussed in his October 2016 article.
2. I noticed in his modied yen futures system code and modied emini intraday system code the addition of the r-squared indicator and the combined use of both CI and r-squared in the emini intraday system. Katsanos mentioned in his evalu- ation section that each of the indicators evaluated missed some strong trends. Based on his decision to use both CI and r-squared in an emini system, has he found
that combining both CI and r-squared improves overall performance?
3. I did not notice a mention of the originator of the r-squared indicator—is Katsanos the originator?
Thank you to the author for taking the time to share his knowledge with the
many fellow analysts who readSTOCKS
& COMMODITIES!
Ed Author Markos Katsanos replies: I didn’t include the CI in the comparison
test because my intention was for the test to be as objective and impartial as possible. The CI, unlike the rest of the in- dicators, detects both direction and trend and it is not directly comparable, as it can be also used as an overbought/oversold indicator. In addition, I wanted to use exactly the same test conditions, and the CI required certain modications.
Since you are the second reader who asked me about the CI and how it compares with the other indicators, I decided to test it using the same system and procedure that I used in the article. There was a problem, however, with the parameter limits because, unlike the other indicators, the CI can have both positive and negative values, so I had to change the code to account for the negative values.
As you can see in the OOS test re- sults in the table in Figure 1, my rst
impression was that the performance was average. Examining, however, more closely the last four rows of the results you can see that it detected almost all trend trades (missed only one) and with the least delay (only six days), capturing
the most prots ($57,700). In addition,
unlike with the other indicators, there
was no problem in detecting V-bottom
reversals. The main disadvantage and the reason for the rather poor overall test
performance was that it didn’t lter out
trades effectively, allowing more trades in nontrending market conditions.
This is the main reason for adding the r-squared indicator in the emini system. My intention wasn’t to detect missed trend trades but to lter out false trends. On testing the modied system, this improved the performance considerably.
And nally, concerning your third question: The r-squared indicator is not
really a novel idea but rather a statistical method for calculating the correlation between price and its linear regression.
I am not the originator of the r-squared indicator and I don’t know who rst
started using it to detect trends. Continued from page 7
SYSTEM M A BUY & HOLD A DX R2 VHF E R CI Net Profit $44,592 -$38,867 $30,429 $40,968 $21,257 $26,552 $36,600
Total Number o f Trades 84 1 14 17 18 18 27
Annual rate of return 13.87% -26.36% 10.17% 12.96% 7.48% 9.06% 11.84%
Percent Profitable 38.1% 0.0% 57.1% 54.5% 29.4% 27.8% 40.7%
Profit Factor 1.86 3.99 4.18 1.93 2.25 2.44
Max losing trade $-2,830 $-38,867 $-2,596 $-2,274 $-3,800 $-3,227 $-3,981
Max Intraday draw dow n $-16,775 $-41,988 $-14,261 $-10,715 $-19,048 $-14,623 $-12,800
Avg. delay-Bars 0 16 7 11 7 6
Miss ed trend trades 0 4 3 4 3 1
Total profit in trend trades $77,448 $36,628 $47,425 $43,480 $ 47,750 $57,730
Avg. Entry Efiiciency 100.0% 56.0% 72.6% 66.0% 63.8% 68.6%
MA PERIOD 50 50 50 50 50 50 TDI PERIOD 14 18 36 24 24 T D I S M O O T H I N G 3 3 4 TDI TREND 30 0.42 0.38 0.36 58 TDI MAX 42 0.85 0.45 0.42 85 TDI/LRS CRIT 22 10 0.24 0.26 28 LA G 12 10 10 3 4 M U L T 1.8 1.5 2.5 4.5 O O S- S A M P L E P E R FO R M A N C E ( 2 0 1 1 - 2 0 1 6 ) TEST PARAMETERS
FIGURE 1: OUT-OF-SAMPLE RESULTS. You can see in the last four rows of the results that the CI detected
almost all trend trades and with the least delay, capturing the most profits ($57,700). However, it didn’t filter out trades effectively in nontrending markets, leading to poor overall performance.
When Donald Trump won the US Presidential election, the Dow Jones Industrial Average immediately rose to a new high, against all predictions. As we search for investing op- portunities in this new order, how attractive are the banking
stocks? We’ll take a look at a few of them. by Koos van der Merwe
he United States has elected a president who promised to “make America great again.” With his history of unpredictability, from bankruptcy to making billions of dollars, President-elect Donald Trump throws a degree of uncertainty into the stock market. Predictions widely given before the election were that if he were elected, the stock market would crash. How- ever, the opposite occurred. The Dow Jones Industrial Average (DJIA) rose to new highs, and meanwhile, the price of gold—usually a popular hedge against uncertainty—crashed. The question is, “What now for the future of the US stock markets?”
With a Republican president in ofce together with a Republican Senate and Congress, the prospect of sweeping changes becomes a possibility. So where should you put your money? Rumor has it that President-elect Donald Trump, in his numerous businesses, has a close association with banks