Video: Using the SwingTracker Trending
May 30, 2009
Here is a new video lesson….
It’s about using the ‘SwingTracker Trending’ overlay to help you identify trends. I talk about using it on different time-frames and
I also go into more info about using it with another indicator and overlay in SwingTracker.
Go through to watch the video:
Remember, you can try SwingTracker out for a complimentary 30-day trial! For a complete rundown of all the features or to get started with your trial go here:
Good trading,
Shane Hurren
MrSwing Senior Swing Trader
support023@mrswing.com
+1 (360) 566-2281
Video: Identify Support & Resistance…
May 30, 2009
Here is another video lesson….
It’s about identifying support and resistance from using a tool in SwingTracker.
Go through on the link below to watch the video:
Remember, you can try SwingTracker out for a complimentary 30-day trial! For a complete rundown of all the features or to get started with your trial go here:
Good trading,
Shane Hurren
MrSwing Senior Swing Trader
support023@mrswing.com
+1 (360) 566-2281
Video: Using IQC Zone in SwingTracker…
May 30, 2009
Here is another video lesson….
It’s about using the IQC Zone overlay in SwingTracker.
Remember, you can try SwingTracker out for a complimentary 30-day trial! For a complete rundown of all the features or to get started with your trial go here:
Good trading,
Shane Hurren
MrSwing Senior Swing Trader
support023@mrswing.com
+1 (360) 566-2281
A video: SwingTracker’s TrendCatcher…
May 30, 2009
Here is a quick video lesson…
It’s about using the TrendCatcher overlay in SwingTracker to help you identify trends…
Remember, you can try SwingTracker out for a complimentary 30-day trial! For a complete rundown of all the features or to get started with your trial go here:
Good trading,
Shane Hurren
MrSwing Senior Swing Trader
support023@mrswing.com
+1 (360) 566-2281
Intro Video SwingTracker
May 30, 2009
Here is a quick video introduction….
Remember, you can try SwingTracker out for a complimentary 30-day trial! For a complete rundown of all the features or to get started with your trial go here:
Good trading,
Shane Hurren
MrSwing Senior Swing Trader
support023@mrswing.com
+1 (360) 566-2281
McClellan Oscillator
March 3, 2009
Definition:
The McClellan Oscillator is a technical indicator based on the New York Stock Exchange, not any one particular stock. It is a short term and intermediate term “market breadth” indicator, meaning it is designed to determine the strength of a market trend. This is based on the concept that a robust uptrend or downtrending market is characterized by a large number of stocks advancing or declining moderately, rather than a small number of stocks making large gains or losses.
The McClellan Oscillator is calculated by subtracting a 39-day exponential moving average of the difference between the advancing issues and the declining issues from a 19-day exponential moving average of the difference between the advancing issues and the number of the declining issues in the New York Stock Exchange.
Interpretation:
Volatility has several uses and potential interpretations.
There are two major sets of interpretations for the McClellan Oscillator.
The first interpretation is to use regions to derive bullish and bearish signals. If the Oscillator extends below -100 or above 100, it represents extreme oversold/overbought conditions, and suggests a continuation of the current downtrend or uptrend for a short-to-intermediate period of time, respectively.
If the McClellan Oscillator falls into the -70 to -100 region and turns up, it can be considered bullish. On the other hand, if it rises into the +70 to +100 region and turns down, it can be considered bearish.
The second interpretation is to look at whether the Oscillator is positive or negative.
- When the indicator goes from negative to positive, a bullish signal is generated.
- When the indicator goes from positive to negative, a bearish signal is generated.
Linear Regression
February 28, 2009
Definition:
Linear regression is a statistical tool used for forecasting future price. The concept behind linear regression is to find the best estimate of the trend given a noisy sample of data points. It is calculated by using the “Least Squares” method over a given period, which is drawn as a trendline extending through the defined period that attempts to filter out market noise.
You can add a Linear Regression Channel, which forms lines above and below the linear regression to help identify support and resistance.LR Channel can be added by clicking “Utilities” >> “Parameters” and selecting “LR Channel” in the resulting pop-up window. The default LR Channel is one standard deviation above and below the linear regression.
Interpretation:
There are two conventional interpretations for the linear regression line.
The first interpretation is to use the linear regression as the overall trendline for that given period. If the line is positive, it may suggest a buying opportunity, whereas a turn downwards suggests one may consider selling the stock. Price divergences below the line indicate a possible buying opportunity, for the market is oversold, while divergences above the line indicate the market is potentially overbought. Linear regression will work best when the period being studied is similar to the cycle length or typical trend length of the security in question.
A second interpretation is to construct a linear regression channel, consisting of two parallel lines at fixed distances above and below the linear regression line. These lines can be used as support and resistance lines, which are used to watch the battle between buyers and sellers.
Support and resistance lines are drawn as the upper and lower limits of a trading range, whereby the support line is the bottom line, and is the point at which “bulls” will not let the price fall below, and the resistance line is the top line, the point above which the “bears” will not let the price rise above.
Conventionally, a breakout above resistance or below support indicates that there is either a) some news about the company which justifies recreating the upper and lower trading limits or b) there is about to be a correction towards the range as trader\’s are hesitant about the stock\’s new value.
Using the Linear Regression Channel can assist in finding support and resistance levels from the Linear Regression.
Keltner Channel
February 28, 2009
Definition:
Keltner Channel is often used as an alternative to Bollinger Bands, and is based on the Average True Range.
The Keltner Channel has an upper band, lower band and center band. The center band is simply a moving average. Swingtracker Charts provides the option of using a simple moving average (default) or exponential moving average.
The upper and lower bands take a calculation of the average true range over half the periods used for the moving average, double the value and add or subtract for the upper and lower bands.
Interpretation:
Like most bands or envelopes, prices are expected to remain within the upper and lower bands, and if they trade above or below the bands can represent a trading opportunity.
Many traders do not use these as absolute buy or sell signals, but use them in conjunction with other indicators to make more informed decisions on entering or exiting a position.
IQC Zone
February 28, 2009
Definition:
IQC Zone is a proprietary indicator developed by IQC Corporation, backtested over thirty years of historical data. It utilizes an advanced artificial intelligence (AI) algorithm to generate bullish and bearish signals. There are two zones on the charts: Bullish zone (blue/green) and Bearish zone (red)
Due to the algorithm’’s complexity, IQC Zone is only available to stocks with history of more than one year. For IPO stocks, there is not enough data to calculate IQC Zone, and the indicator is charted with gray colors until it has been publicly traded for one year\’s time.
Interpretation:
IQC Zone is not an absolute buy or sell signal, but can be an important consideration to trading and investment decisions when integrated into an overall trading or investment approach.
Although there are many powerful methods for incorporating IQC Zone into an investment scheme, here are several more conventional interpretations of the indicator:
Market Climate
- IQC Zone can be used to determine the appropriate climate when selecting stocks. If other indicators suggest an entry point while the security is in the bearish zone, one might consider delaying entry. However, if it is firmly within the bullish zone, entry may be warranted. The opposite conditions can hold true for determining a proper exit point.
- Because IQC Zone is calculated at the end of day only, this interpretation is not well-suited for intraday or very short-term trading approaches.
Market Timing
IQC Zone can be used as an intermediate-term trend indicator when the color changes.
- When the indicator changes from bearish to bullish, one might consider entering the market when verified with other indicators.
- When the indicator changes from bullish to bearish, one might consider exiting the market when verified with other indicators.
Risk Minimizing
When the color changes under certain circumstances, it may indicate a trend reversal or period of investor uncertainty.
- If the colors are fluctuating rapidly in a short or intermediate time frame, one may consider protecting current profits by standing aside as the market smooths.
- When the indicator turns from a prolonged bullish period to bearish, one may consider closing any open positions until a resumption of the trend or a trend reversal is confirmed.
Historical Volatility
February 28, 2009
To the pure chartist this indicator can be employed as an initial filter, which can be applied over a selection of markets, to arrive at the most suitable individual market that will fit a particular style or method.
Volatility is a measure of how wild or quiet the market is relative to its history. It can be more accurately defined as the standard deviation of a series of price changes measured at regular intervals.
Volatility is generally measured using price changes expressed in logarithmic form, but can also be assessed using percentage changes in price. Price percentage changes would appear to reflect a more accurate picture of the market, despite the assumption that prices change at fixed intervals, which isn’t necessarily how it is. On the other hand, logarithmic price changes assume prices are changing continuously, but that doesn’t necessarily depict the market as it really is either.
This indicator is most often used by options traders, but can sometimes be employed in the selection of suitable markets for particular trading methods and styles. It can be used in conjunction with implied volatility to see how the current markets expectations differ from history and finally it is a crude indicator to a change in trend.
