THE STOCK ANALYST from Aggressive Communications VERSION 1.00 December 12, 1989 Copyright (c) 1989 Aggressive Communications. All Rights Reserved. LICENSE AGREEMENT READ THE FOLLOWING TERMS AND CONDITIONS BEFORE USING THE ACCOMPANYING SOFTWARE AND/OR ASSOCIATED DOCUMENTATION. USE OF EITHER THE SOFTWARE OR DOCUMENTATION CONSTITUTES ACCEPTANCE ON YOUR PART OF THESE TERMS AND CONDITIONS. IF YOU DO NOT ACCEPT THESE TERMS AND CONDITIONS, YOU SHOULD RETURN THE ENTIRE UNUSED CONTENTS OF THE SOFTWARE PACKAGE WITH YOUR SALES RECEIPT AND 80% OF YOUR PURCHASE PRICE WILL BE REFUNDED. THE SOFTWARE AND DOCUMENTATION IS PROVIDED 'AS IS', AND NO WARRANTY OF ANY KIND, EXPRESSED OR IMPLIED, IS PROVIDED. THIS INCLUDES, BUT IS NOT LIMITED TO, THE FITNESS FOR USE FOR ANY PURPOSE. THE FULL EXTENT OF ANY AND ALL LIABILITIES ARE ASSUMED BY YOU. 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AMIGA IS A REGISTERED TRADEMARK OF COMMODORE BUSINESS MACHINES. - i - TABLE OF CONTENTS Chapter 1 Introduction Page General . . . . . . . . . . . . . . . . . . . . 1 How to Boot The Stock Analyst . . . . . . . . . 2 The Stock Analyst Data Files . . . . . . . . . . 3 Chapter 2 Stock Update General . . . . . . . . . . . . . . . . . . . . 6 Project . . . . . . . . . . . . . . . . . . . . 6 Editing the Master File . . . . . . . . . . . . 7 Editing the Equity Files . . . . . . . . . . . . 8 Loading The Stock Analyst . . . . . . . . . . . 10 Chapter 3 The Stock Analyst General . . . . . . . . . . . . . . . . . . . . 11 Project . . . . . . . . . . . . . . . . . . . . 11 Price Indicators . . . . . . . . . . . . . . . . 13 Volume Indicators . . . . . . . . . . . . . . . 14 Edit Defaults . . . . . . . . . . . . . . . . . 16 Graph Tools . . . . . . . . . . . . . . . . . . 19 Chapter 4 Technical Analysis General . . . . . . . . . . . . . . . . . . . . 23 Moving Averages . . . . . . . . . . . . . . . . 24 Wilder's Relative Strength Index . . . . . . . . 25 William's Percentage R . . . . . . . . . . . . . 26 Lane's Stochastics . . . . . . . . . . . . . . . 27 Price Rate-of-Change . . . . . . . . . . . . . . 29 Commodity Channel Index . . . . . . . . . . . . 29 Moving Average Convergence/Divergence Line . . . 31 On Balance Volume . . . . . . . . . . . . . . . 32 The Chaikin Oscillator . . . . . . . . . . . . . 32 Positive and Negative Volume Index . . . . . . . 33 Price and Volume Trend . . . . . . . . . . . . . 34 Volume Accumulation and Distribution . . . . . . 35 Advance/Decline Line . . . . . . . . . . . . . . 35 CBOE Put/Call Volume Ratio . . . . . . . . . . . 36 Trend Lines / Trading Band . . . . . . . . . . . 37 Appendices Appendix A: References . . . . . . . . . . . . . 39 Appendix B: Suggested Reading . . . . . . . . . 39 Index . . . . . . . . . . . . . . . . . . . . . . 40 - ii - 1.0 GENERAL Thank you for purchasing The Stock Analyst. The author hopes that your 'investment' in this software package is profitable. The Stock Analyst provides for a means of storing and maintaining a variety of data associated with the stock market as well as processing the data such that buy and sell decisions can be made with a high degree of confidence that a profit will be made. This document is organized to provide you with a general introduction to The Stock Analyst and how to get started in Chapter 1. Chapter 2 contains instructions on running the Stock Update program for updating and maintaining daily stock data. Chapter 3 contains instructions on running The Stock Analyst and displaying the various indicator graphs as well as working with the graph tools. An explanation of each technical indicator and how to use an indicator under various market conditions is discussed in Chapter 4. The Stock Analyst should not be the sole source of information upon which your investment decisions are made. In the same way that the technical indicators provided by The Stock Analyst must be used to confirm one another, your Investment Advisor, Stock Broker, or business newspapers, and your own experienced opinion should be considered as other sources for a confirming signal. Profits and losses realized in the past due solely from the use of any technical indicator does not necessarily predict future indicator performance. 1.1 INTRODUCTION The Stock Analyst is a bootable 'Workbench 1.2' disk. It should be booted after using Kickstart version 1.2 or higher. It is recommended that you boot with The Stock Analyst due to a unique setting within the Preference 'system-configuration' file. In order to perform graphic dumps to a graphics printer, the graphic print selection within Preferences is set to 'negative'. 1.1.1 DISK CONTENTS The Stock Analyst is a bootable disk. Therefore, the standard Workbench directories, libraries, and files reside on the disk. The files unique to The Stock Analyst as well as files required by The Stock Analyst include: exec.bmap Required for library function calls. layers.bmap Required for library function calls. graphics.bmap Required for library function calls. Stock Analyst Executable program. Stock Update Executable program. stocks Master File of Stocks. callput.dat Data file of Put and Call Volume. adline.dat Data file of Advances/Declines. sp500.dat Data file of Standard & Poor 500 Index djidaily.dat Data file of Dow Jones Industrial Average (DJIA) daily price information. - 1 - The .bmap files are required for various library calls for setting up a borderless window, some of the plotting routines, and some of the text output routines. The .bmap files are absolutely required to run the Stock Update and The Stock Analyst programs and must reside in the root directory of the disk from which the executable program is initiated. 1.1.2 BACKING UP THE STOCK ANALYST The Stock Analyst is not copy protected, therefore you can, and are advised, to make a backup copy and place the original disk in a safe place. The backup copy should be used as the working copy with the original available in an emergency situation. Refer to the documentation included with the Amiga for details on duplicating a disk. Since the programs included with The Stock Analyst are useless without up-to-date stock information, it is a good idea to routinely backup the disk which contains the daily stock data. A backup of daily stock data should be made at least weekly. 1.2 HOW TO BOOT THE STOCK ANALYST DISK The Stock Analyst disk may be booted by following the steps outlined below: 1. Turn on the Amiga. 2. Insert the Kickstart disk version 1.2 or higher, into drive df0:, the internal disk drive. 3. When prompted for the Workbench disk, insert The Stock Analyst disk into drive df0:, the internal disk drive. 4. The Workbench screen will appear with the disk icon for The Stock Analyst. 5. Refer to section 1.2.1 for loading and executing the Stock Update program or 1.2.2 for loading and executing The Stock Analyst program. If Kickstart and another disk have already been booted, follow the steps outlined below to boot The Stock Analyst: 1. Remove any disks in the disk drive(s). 2. Simultaneously depress the Control key and both the left and right Amiga keys to perform a warm-boot. 3. When prompted for the Workbench disk, insert The Stock Analyst disk into drive df0:, the internal disk drive. 4. The Workbench screen will appear with the disk icon for The Stock Analyst. - 2 - 5. Refer to section 1.2.1 for loading and executing the Stock Update program or 1.2.2 for loading and executing The Stock Analyst program. 1.2.1 STOCK UPDATE Having booted The Stock Analyst disk as described in 1.2, the Stock Update program may be executed as follows: 1. Open The Stock Analyst disk icon by moving the mouse such that the pointer is over the disk icon and double click the left mouse button. 2. With the window open displaying the various program icons, move the mouse such that the pointer is over the Stock Update program icon and double click the left mouse button. 3. The Stock Update program will load and execute. The screen should go blank and then display a title screen. Click the left mouse button to clear the screen. 4. Refer to Chapter 2 on using the Stock Update program to update and maintain stock data files. 1.2.2 THE STOCK ANALYST Having booted The Stock Analyst disk as described in 1.2, The Stock Analyst program may be executed as follows: 1. Open The Stock Analyst disk icon by moving the mouse such that the pointer is over the disk icon and double click the left mouse button. 2. With the window open displaying the various program icons, move the mouse such that the pointer is over The Stock Analyst program icon and double click the left mouse button. 3. The Stock Analyst program will load and execute. The screen should go blank and then display a title screen. Click the left mouse button to clear the screen. 4. Refer to Chapter 3 on using The Stock Analyst program to generate the technical indicator graphs. 1.3 THE STOCK ANALYST DATA FILES The data files used by The Stock Analyst include a Master File, Equity Files, a file containing NYSE issues which advanced, declined, or were unchanged, and a file containing CBOE Put and Call volumes. These files may be created and/or maintained via the Stock Update program or via a text editor. If a text editor is used to update a file, the format of the file must be maintained as described below in each file description. In addition, files which are date dependant must always be in ascending order, that is the most recent date is the first line and the oldest date is the last line in the text file. - 3 - 1.3.1 MASTER FILE The Master File name is 'stocks' and contains the formal name of the equity and the equity data file name as in the following example: Dow 30 Industrials <-- Formal equity #1 name djidaily.dat <-- Equity #1 data file name MCI Communications <-- Formal equity #2 name mci.dat <-- Equity #2 data file name : : : : The Master File must reside in the root directory of the disk from which the Stock Update or The Stock Analyst is executed from (this should be The Stock Analyst disk). There can only be a maximum of 50 equities followed. The author has found that one can comfortably follow around 20 stocks on a daily basis without becoming overwhelmed. 1.3.2 EQUITY FILE The Equity File names are defined in the Master File as described in section 1.3.1. These data files can reside anywhere since the Stock Update and The Stock Analyst programs allow the user to change directories to a data disk if necessary. The format of the equity data files is as follows: DATE,CLOSE,HIGH,LOW,VOLUME(in 1,000's) For example: 891024,43.38,43.88,43.25,234.5 891023,43.63,44.00,43.38,333.7 891022,43.50,43.88,43.13,275.2 : : Note that the date format is YYMMDD, that is year, month, date. The fractional part of a price must be entered as a decimal. A price cannot be entered as 43 3/8. Finally, the volume is entered in thousands. 1.3.3 ADVANCE/DECLINE LINE In order for The Stock Analyst to display the NYSE Advanced/Decline Line, the data file 'adline.dat' must be kept current on a day-for-day basis with the Dow 30 Industrials equity data file. The format of this data file is as follows: DATE,ADVANCES,DECLINES,UNCHANGED,ZERO For example: 891024,564,978,432,0 891023,694,512,501,0 891022,1012,465,522,0 : : - 4 - Note the date format of YYMMDD, that is year, month, date. As discussed in Chapter 4 for interpretation of the Advanced/Decline Line, the daily Dow 30 Industrials is compared with the A/D line; therefore, it is mandatory for the dates in the Dow 30 Industrial and the A/D Line data files to correspond one-to-one. It is recommended that this data file reside where ever the equity data files reside. 1.3.4 CBOE PUT/CALL RATIO In order for The Stock Analyst to display the CBOE Put/Call Volume Ratio, the data file 'callput.dat' must be kept current on a day-for-day basis with the Dow 30 Industrials equity data file. The format of this data file is as follows: DATE,CBOE CALL VOLUME,CBOE PUT VOLUME,ZERO,ZERO For example: 891024,320123,120865,0,0 891023,333154,221987,0,0 891022,243512,89543,0,0 : : Note the date format of YYMMDD, that is year, month, date. As discussed in Chapter 4 for interpretation of the CBOE Put/Call Ratio, the daily Dow 30 Industrials is compared with the Put/Call line; therefore, it is mandatory for the dates in the Dow 30 Industrial and the Put/Call data files to correspond one-to-one. It is recommended that this data file reside where ever the equity data files reside. 1.3.5 STANDARD & POOR 500 INDEX In order for The Stock Analyst to display the Relative Strength Indicator, the Standard & Poor 500 index data file 'sp500.dat' must be kept current on a day-for-day basis with the various equity data files. The format of this data file is as follows: DATE,CLOSE,HIGH,LOW,ZERO For example: 891024,340.23,344.76,339.44,0 891023,341.33,346.31,340.01,0 891022,338.23,342.84,336.57,0 : : Note the date format of YYMMDD, that is year, month, date. Refer to section 3.6.7 for interpretation of the Relative Strength Indicator. As noted in section 3.6.7, the daily price data of an equity is compared with the S&P 500 index; therefore, it is mandatory for the dates in all equity '.dat' files and the 'sp500.dat' file correspond one-to-one. It is recommended that this data file reside wherever the equity data files reside. - 5 - 2.0 STOCK UPDATE This chapter details the use of the Stock Update program to manage the stock data used by The Stock Analyst. The data required by The Stock Analyst can be found in any newspaper which has a decent business section. The data required includes: - Dow 30 Industrials high, low, close, and volume - Individual stock high, low, close, and volume - NYSE issues advancing, declining, and unchanged - CBOE call and put volume - S & P 500 Index high, low, and close It is recommended that the data files be updated on a daily basis if possible. 2.1 GENERAL Having executed the Stock Update program as described in section 1.2.1, all subsequent activities are menu driven. An activity is selected from the menu by pressing the right mouse button which reveals the main menu selections. With the right mouse button depressed, move the mouse such that the pointer is over, and highlights, the desired main menu selection which will reveal the submenu items. Move the mouse down such that the pointer moves into the submenu items, and highlights the desired submenu activity. Release the right mouse button and the desired submenu activity will be selected. The main menu includes Project, Master File, Equity File, and The Stock Analyst. Each menu item is described below. 2.2 PROJECT The Project menu contains general activities not specifically related to updating any specific type of data file. 2.2.1 ABOUT Selecting About displays a window with a brief description of the Stock Update program. Click the left mouse button to clear the screen and continue. 2.2.2 PRINT DATA Selecting Print Data opens a window and displays the available data files. Select More if there are more data files than can be displayed in one window. Select a data file by moving the mouse over an equity name and click the left mouse button. The selected item will become highlighted. Then move the mouse such that the pointer is over Select and click the left mouse button to load the data, or select Cancel to cancel the operation. Upon loading a data file, the stock data is printed via the PRT: device. Upon intervals of 50 data sets, the output may be terminated or continued. - 6 - 2.2.3 CHANGE DIRECTORY Selecting Change Directory allows disk access to a data disk if that is where the daily stock data is stored. Upon selecting Change Directory, the current directory is indicated, and a prompt to enter the new directory is made. The new directory is specified by an entry via the keyboard and completed by pressing Return. In the event that an attempted disk access is made to a data file which is not resident on the current disk, an error message will be displayed that the file was not found. 2.2.4 QUIT Selecting Quit terminates the Stock Update program. The user is returned to the Workbench screen. 2.3 EDITING THE MASTER FILE The submenu items under Master File deal with manipulating the file 'stocks'. For a description of this file, see section 1.3.1. The file 'stocks' resides in the root directory of The Stock Analyst disk. Through the Master File submenu items, it is possible to add (create), edit and delete data associated with those stocks which are maintained. 2.3.1 ADD EQUITY ENTRY The Add Entry function essentially creates a new stock data file in the current directory. Upon selecting Add Entry, the user is prompted for the formal equity name and the name of the data file. Note that the Stock Update program will append '.dat' to the data file name. Entries are made via the keyboard and pressing Return completes the entries. The formal equity name and the data file name will be added to the Master File 'stocks', and an empty data file will be created in the current directory. 2.3.2 EDIT EQUITY ENTRY Selecting Edit Entry opens a window and displays the available data files. Select More if there are more data files than can be displayed in one window. Select a data file by moving the mouse over an equity name and click the left mouse button. The selected item will become highlighted. Then move the mouse such that the pointer is over Select and click the left mouse button to load the data, or select Cancel to cancel the operation. A window will display the current formal equity name and data file name. The user is prompted to enter (edit) the formal equity name and file name. Entries are completed by pressing the Return key. This information is then updated in the Master File 'stocks', and the equity data file is renamed if required. - 7 - 2.3.3 DELETE EQUITY ENTRY Selecting Delete Entry opens a window and displays the available data files. Select More if there are more data files than can be displayed in one window. Select a data file by moving the mouse over an equity name and click the left mouse button. The selected item will become highlighted. Then move the mouse such that the pointer is over Select and click the left mouse button to load the data, or select Cancel to cancel the operation. The user is prompted to indicate whether or not the selected equity data should be removed from the Master File 'stocks'. Inputs are completed by pressing Return. This activity should be used with care. The user may wish to copy the '.dat' file to some miscellaneous disk before deleting the file forever from the data disk via this routine. 2.4 EDITING THE EQUITY DATA FILES The submenu items under Equity File deal with manipulating the '.dat' files which contain the data used by The Stock Analyst program. For a description of this file, see section 1.3.2. The '.dat' files reside in the root directory of The Stock Analyst disk or a data disk. Through the Equity File submenu items, it is possible to add, edit and delete data associated with the stocks which are maintained. 2.4.1 ADD DATA ENTRY Selecting Add Entry opens a window and displays the available data files. Select More if there are more data files than can be displayed in one window. Select a data file by moving the mouse over an equity name and click the left mouse button. The selected item will become highlighted. Then move the mouse such that the pointer is over Select and click the left mouse button to load the data, or select Cancel to cancel the operation. A window will open displaying the equity formal name and the date of the most recent data entry. Prompts for the date, close, high, low, and volume data are made. Entries are made via the keyboard and completed by pressing the Return key. Continuous data entries can be made at this point and may be terminated by pressing Return without any entry at the date prompt. The data will be sorted by date and rewritten to the equity data file. If the Advance/Decline Line or CBOE Put/Call Ratio data files, 'adline.dat' or 'callput.dat' respectively, are being updated, the prompts change relative to the data being input. However, the methodology of entering the data is identical as described above. 2.4.2 EDIT DATA ENTRY Selecting Edit Entry opens a window and displays the available data files. Select More if there are more data files than can be displayed in one window. Select a data - 8 - file by moving the mouse over an equity name and click the left mouse button. The selected item will become highlighted. Then move the mouse such that the pointer is over Select and click the left mouse button to load the data, or select Cancel to cancel the operation. A window will open displaying the equity formal name and the date of the most recent data entry. Current data for the date, close, high, low, and volume and prompts for new date, close, high, low, and volume data are made. Entries are made via the keyboard and completed by pressing the Return key. Continuous data editing can be made at this point and may be terminated by pressing Return without any entry at the date prompt. The data will be sorted by date and rewritten to the equity data file. If the Advance/Decline Line or CBOE Put/Call Ratio data files, 'adline.dat' or 'callput.dat' respectively, are being updated, the prompts change relative to the data being edited. However, the methodology of editing the data is identical as described above. 2.4.3 DELETE DATA ENTRY Selecting Delete Entry opens a window and displays the available data files. Select More if there are more data files than can be displayed in one window. Select a data file by moving the mouse over an equity name and click the left mouse button. The selected item will become highlighted. Then move the mouse such that the pointer is over Select and click the left mouse button to load the data, or select Cancel to cancel the operation. A window will open displaying the equity formal name and the date of the most recent data entry. A prompt for the date of the data set to be deleted is made. The format of the date input is YYMMDD, for example October 24, 1989 would be entered as 891024. The current data for the date selected is displayed and the user is asked to delete the data. Entries are made via the keyboard and completed by pressing the Return key. Continuous data deleting can be made at this point and may be terminated by pressing Return without any entry at the date prompt. The data will be sorted by date and rewritten to the equity data file. If the Advance/Decline Line or CBOE Put/Call Ratio data files, 'adline.dat' or 'callput.dat' respectively, are being updated, the prompts change relative to the data being deleted. However, the methodology of deleting the data is identical as described above. 2.4.4 STOCK SPLIT Selecting Stock Split opens a window and displays the available data files. Select More if there are more data files than can be displayed in one window. Select a data file by moving the mouse over an equity name and click the left mouse button. The selected item will become highlighted. Then move the mouse such that the pointer - 9 - is over Select and click the left mouse button to load the data, or select Cancel to cancel the operation. A window will open displaying the formal equity name and the date of the most recent data entry. A date is prompted for the effectivity date of the stock split. A ratio is likewise prompted for to indicate the type of split, for example 3 for 2. Entries are made via the keyboard and completed by pressing the Return key. The stock price data will be adjusted for all dates prior to, and including, the effectivity date entered. The data will be sorted by date and rewritten to the equity data file. 2.4.5 STOCK DIVIDEND Selecting Stock Dividend opens a window and displays the available data files. Select More if there are more data files than can be displayed in one window. Select a data file by moving the mouse over an equity name and click the left mouse button. The selected item will become highlighted. Then move the mouse such that the pointer is over Select and click the left mouse button to load the data, or select Cancel to cancel the operation. A window will open displaying the formal equity name and the date of the most recent data entry. A date is prompted for the effectivity date of the stock dividend. Entries are made via the keyboard and completed by pressing the Return key. The stock price data will be adjusted for all dates prior to, and including, the effectivity date entered. The data will be sorted by date and rewritten to the equity data file. 2.5 LOADING THE STOCK ANALYST Selecting the menu Stock Analyst and the submenu Load, will load and execute The Stock Analyst program. However, at this time the Stock Update program does not offer this feature. A future upgrade of The Stock Analyst will support loading and executing a program from within another program. - 10 - 3.0 THE STOCK ANALYST This chapter deals with the operation of The Stock Analyst program. How to load and construct the indicator graphs is presented as well as a discussion on how to use the graph tools to enhance the analysis of the indicators. The discussion on how to analyze an indicator is covered in chapter 4. 3.1 GENERAL Having executed The Stock Analyst program as described in section 1.2.2, all subsequent activities are menu driven. An activity is selected from the menu by pressing the right mouse button which reveals the main menu selections. With the right mouse button depressed, move the mouse such that the pointer is over, and highlights, the desired main menu selection which will reveal the submenu items. Move the mouse down such that the pointer moves into the submenu items, and highlights the desired submenu activity. Release the right mouse button and the desired submenu activity will be selected. The main menu includes Project, Price Indicator, Volume Indicator, Edit Defaults, and Graph tools. Each menu item is described below. 3.2 PROJECT The Project menu contains submenu functions which are not otherwise specifically related to the indicator graphs. Various program functions are included under the Project menu. 3.2.1 ABOUT Selecting About displays a window with a brief description of the function and features of The Stock Analyst program. Click the left mouse button to continue until the screen clears. 3.2.2 LOAD DATA Selecting Load Data opens a window and displays the available data files. Select More if there are more data files than can be displayed in one window. Select a data file by moving the mouse pointer over an equity name and click the left mouse button. The selected item will become highlighted. Then move the mouse such that the pointer is over Load and click the left mouse button to load the data, or select Cancel to cancel the operation. Note that it is necessary to load data for an equity before any of the price or volume indicator graphs, or Print Data function under the Project menu are activated. 3.2.3 PRINT DATA Selecting Print Data will print, via the PRT: device, about 50 data sets of the most recent stock price information. This submenu item is available only after - 11 - data has been loaded for an equity as described in section 3.2.2. If it is desired to print more data than provided for here, the Stock Update program should be use to print additional data (See 2.2.2). 3.2.4 PRINT SCREEN Selecting Print Screen will perform a graphics dump of the screen to a graphics printer. This submenu item is available only after an indicator graph has been drawn, or simply when there is something on the screen. Other program activity is inhibited while the graphics dump to the printer is in progress. 3.2.5 CLEAR SCREEN Selecting Clear Screen simply clears the screen. The current stock data loaded, if any, is still in memory such that indicator graphs may still be drawn without having to be reloaded. 3.2.6 CHANGE DIRECTORY Selecting Change Directory allows disk access to a data disk if that is where the daily stock data is stored. Upon selecting Change Directory, the current directory is indicated, and a prompt to enter the new directory is made. The new directory is specified by an entry via the keyboard and completed by pressing Return. In the event that an attempted disk access is made to a data file which is not resident on the current disk, an error message will be displayed that the file was not found. 3.2.7 THE TIME Selecting The Time will display within a window the current time of day as well as the date. This information is taken from the Amiga system time and therefore will display, right or wrong, that time. If your computer has a battery backed clock and requires a command to set the Amiga clock, then that command should be added to the 'c' directory of The Stock Analyst disk as well as add the command to set the clock to the batch file 'startup-sequence' in the 's' directory. Otherwise, the time may be set via Preferences as described in the documentation supplied with the Amiga. 3.2.8 LOAD: STOCK UPDATE Selecting Load: Stock Update will load and execute the Stock Update program. However, at this time The Stock Analyst program does not offer this feature. A future upgrade of The Stock Analyst will support loading and executing a program from within another program. 3.2.9 QUIT Selecting Quit terminates The Stock Analyst program. The user is returned to the Workbench screen. - 12 - 3.3 PRICE INDICATORS The price indicator graphs become available once some stock data has been loaded. These indicators are price sensitive in that they are solely based upon the change in price over time. Refer to chapter 4 for a more detailed discussion of each indicator and its use. Selecting a submenu item opens a window and displays information showing the indicator data is being calculated. Once the calculations are complete, the indicator graph is displayed. Once an indicator graph has been displayed, the Graph Tools are available for analysis purposes and the graph may be eventually dumped to a printer at any time. 3.3.1 MOVING AVERAGES Upon selecting Moving Averages, the user can select either a simple (unweighted) or exponential moving average. This is done by moving the mouse and clicking on either the Unweighted or Exponential gadget. If a simple moving average is selected, the user can select either a normal or centered moving average. This is done by moving the mouse and clicking on either the Normal or Centered gadget. If the number of days in the moving average exceeds the number of stock data sets, no moving average will be calculated; and only the high, low, close, and volume information will be graphed. See section 3.5.2 on varying the number of days in the moving average period. This graph displays the typical high, low, and close price range as well as a relative volume histogram. The moving averages, if selected, are drawn over the high, low, close data for analysis purposes. The average can be a simple or exponential moving average. Simple moving averages can be normal or centered. This graph displays the price data on a logarithmic scale such that a price increase from $1.00 to $2.00 has the same meaning percentage-wise as a price increase from $20.00 to $40.00. 3.3.2 WILDER'S RELATIVE STRENGTH INDEX (RSI) J. Welles Wilder's Relative Strength Index is a price oscillator which indicates the strength left in a price trend. This indicator is based upon the number of higher and lower price closings over a specific time period. This indicator provides overbought and oversold signals which should be confirmed by other indicators. 3.3.3 WILLIAMS PERCENTAGE R (%R) Larry Williams' %R indicator is a price oscillator which provides overbought and oversold signals based upon comparing a current price to a range of prices over a - 13 - specific time period. Williams %R provides good buy and sell signals in a trading (neutral) market. It also provides confirmation of a present trend as well as signals pending trend reversals. 3.3.4 LANE'S STOCHASTICS (%K, %D) Dr. George Lane's Stochastics is a price oscillator similar to Williams %R, in that it attempts to predict price trends based upon a closing price in relation to a range of closing prices over a specific period of time. Lane's Stochastics provides good buy and sell signals in a trading (neutral) market. It also provides confirmation of a present trend as well as signals pending trend reversals. 3.3.5 PRICE RATE-OF-CHANGE The price rate-of-change is an indicator of momentum which compares the current price to amount by which the price has changed over a specific period of time. Therefore, as an equity's price increases, the ROC indicator will increase. Likewise, as the price decreases, the ROC will decrease. The ROC provides confirming overbought and oversold signals; and can sometimes indicate the continuation of a current price trend. 3.3.6 COMMODITY CHANNEL INDEX (CCI) The commodity channel index is an indicator which takes the difference of the current price and a moving average and compares that to its own inherent volatility. The commodity channel index is useful as an overbought/oversold indicator and can also be useful in predicting trend reversals by looking for divergences between the CCI and the price of the underlying equity. 3.3.7 MOVING AVERAGE CONVERGENCE/DIVERGENCE (MACD) LINE The MACD Line is constructed by taking the difference between a 26-day and 12-day exponential moving average. A 9-day exponential moving average is also plotted which represents a 'trigger' line. This is a excellent indicator for signalling trend reversals. The buy and and sell signals provided by the trigger line are in some cases late. 3.4 VOLUME INDICATORS The volume indicator graphs become available once some stock data has been loaded. These indicators are primarily based upon volume while others relate volume and price. Volume indicators show the flow of 'smart money' into and out of an equity. Refer to chapter 4 for a more detailed discussion of each indicator and its use. The Advanced/Decline Line and the CBOE Put/Call Ratio graphs may be drawn any time. Since these indicators do not use user specific data files, but instead files - 14 - included with The Stock Analyst, they may be displayed without going through the Load Data function in the Project menu. Selecting a submenu item opens a window and displays information showing the indicator data is being calculated. Once the calculations are complete, the indicator graph is displayed. Once an indicator graph has been displayed, the Graph Tools are available for analysis purposes and the graph may be eventually dumped to a printer. 3.4.1 ON-BALANCE VOLUME (OBV) On-Balance Volume is determined through a positive or negative volume accumulation depending upon a price's up or down closing. In this manner, OBV relates price to volume; and ultimately shows if volume is flowing into or out of an equity. Normally, OBV is best used to confirm other indicators, but can be used to predict a market bottom by indicating an increased flow of money into an equity and an eventual up trend. 3.4.2 THE CHAIKIN OSCILLATOR The Chaikin Oscillator, like all volume related indicators, depicts the flow of 'smart' money into or out of an equity. The Chaikin Oscillator is used similarly to the OBV indicator. The amount of accumulation or distribution on a given day is is dependant upon the closing price's relation to its high or low for the day. 3.4.3 POSITIVE AND NEGATIVE VOLUME INDEX The Positive and Negative Volume indexes relates increases and decreases in volume to an equity's change in price. The premise of these indices is that the negative volume indicates the flow of 'smart' money in and out of a security while the positive volume index indicates the flow of 'uninformed' money in and out of a security. The Stock Analyst displays both the Positive and Negative Volume Indexes as well as individual 25-day simple moving averages. See section 3.5.8 for varying the period of the moving average. 3.4.4 PRICE AND VOLUME TREND The Price and Volume Trend indicator relates price and volume and is applied similar to the On-Balance Volume indicator. The Price and Volume Trend is determined by a cumulative total of the volume which is adjusted based upon a percentage increase or decrease in price from the previous day. 3.4.5 VOLUME ACCUMULATION/DISTRIBUTION The Volume Accumulation/Distribution indicator relates price and volume and is applied similar to the On-Balance - 15 - Volume indicator. The Volume Accumulation/Distribution Line is determined by a cumulative total of the volume which is adjusted based upon a comparison of where a price closed in relation to its midpoint for the day and the price range for the day. 3.4.6 ADVANCED/DECLINE (A/D) LINE The Advanced/Decline line is a broad market indicator since it considers all securities traded on the NYSE on a given day. It depicts broad market trends based upon a cumulative difference between advancing issues and declining issues each adjusted by the number of issues unchanged. The Stock Analyst displays the A/D Line and overlays the Dow 30 Industrials daily closing. 3.4.7 CBOE PUT/CALL RATIO The Put/Call Ratio is determined by the ratio of the put volume and the call volume on the Chicago Board of Options Exchange. It is a broad market indicator since it involves all securities traded on the CBOE. Generally a high Put/Call Ratio indicates an impending market rally while a low Put/Call Ratio indicates a possible market sell-off. The Stock Analyst displays the Put/Call ratio as well as overlays a 5-day simple moving average and the Dow 30 Industrials daily closing. 3.5 EDIT DEFAULTS Basically all of the price indicator graphs are based upon an oscillator which is time dependant. Built into The Stock Analyst are default time periods for each indicator as specified by the developer of the technical indicator. These periods may, however, be changed to provide for better buy and sell signals. For example, Wilder's Relative Strength Index (RSI) has a recommended oscillator period of 14 days. However, when the RSI for the Dow 30 Industrials is graphed using a 14 day period, market tops and bottoms are not clearly discernable. If the RSI period is lengthened to 30 days and the RSI recalculated, market tops and bottoms are obvious. In some cases lengthening a period will avoid most whipsaws thus avoiding false buy or sell signals. A good time period can be determined by trial and error using past data for a specific equity to generate reliable signals. This period can be used later when analyzing the same equity. When any of the Edit Default items are selected, a window opens showing the default value of the period, the current value of the period, and prompts the user for a new period value. New values are entered via the keyboard and pressing Return - 16 - completes the entry. Pressing Return with no input, or an input of zero, sets the period to the default. 3.5.1 STOCK DATA SETS The default number of stock data sets is 250. This is approximately the number of trading days in one year. This value can range between 1 and 500. If daily data is maintained in an equity file, The Stock Analyst can display 2-years of information. If weekly data is maintained in an equity file, The Stock Analyst can display 10-years of information. Since the graph is scaled based upon the number of data sets, changing this value gives the impression of zooming in and out. A small number of data sets, such as 60, gives the impression of 'zooming in', while a large number of data sets, such as 300, gives the impression of 'zooming out'. Any time this value is changed, the equity must be reloaded before it can be graphed again. 3.5.2 MOVING AVERAGES There are two moving averages which can be displayed. Upon execution, the default periods are 50 and 200-days. These values can be any number greater than zero. If an invalid number is entered, the default value is used. If a moving average period is greater than the number of stock data sets, the moving average will not be calculated or displayed. In this manner, none, one or two moving averages can be displayed. 3.5.3 WILDER'S RELATIVE STRENGTH INDEX (RSI) Upon execution, the default period for RSI calculations is 14-days. Other popular periods are 9 and 25-day intervals. Longer periods identify longer term trends while shorter periods catch short trends while at the same time being subject to whipsaws. This period can be any value greater than zero and less than the number of data sets being considered. 3.5.4 WILLIAM'S PERCENTAGE R (%R) Upon execution, the default period for %R calculations is 10-days. Other popular periods are 20 and 30-day intervals. Longer periods identify longer term trends while shorter periods catch short trends while at the same time being subject to whipsaws. This period can be any value greater than zero and less than the number of data sets being considered. 3.5.5 LANE'S STOCHASTICS (%K, %D) Upon execution, the default period for %K calculations is 5-days. The default period for %D is 3-days. Longer - 17 - periods identify longer term trends while shorter periods catch short trends while at the same time being subject to whipsaws. The %K period can be any value greater than zero and less than the number of data sets being considered. The value for %D should be between 3 and 5-days. 3.5.6 PRICE RATE-OF-CHANGE Upon execution, the default period for ROC calculations is 12-days. Longer periods identify longer term trends while shorter periods catch short trends while at the same time being subject to whipsaws. This period can be any value greater than zero and less than the number of data sets being considered. 3.5.7 COMMODITY CHANNEL INDEX Upon execution, the default period for CCI calculations is 10-days. Other popular periods are 15-and 20-day intervals. Longer periods identify longer term trends while shorter periods catch short trends while at the same time being subject to whipsaws. This value should range between 5 and 30. 3.5.8 POSITIVE AND NEGATIVE VOLUME INDEX Upon execution, the default period for PVI and NVI moving average calculations is 25-days. This period can be any value greater than zero and less than the number of data sets being considered. Longer periods identify longer term trends while shorter periods catch short trends while at the same time being subject to whipsaws. 3.5.9 TRADING BANDS PERCENTAGE Upon execution, the default percentages for the top and bottom trading bands are 10% and -5% of the value of the moving average of the shortest duration (moving average #1). These percentages work well with moving averages of around 10-days. As the moving average period is lengthened, the average will tend to smooth out and drop well below the high, low, close price data. Hence, the percentages would need to increase from 10% to perhaps 15% or 20% and from -5% to perhaps 0% or 5%, to properly envelop the price data. This percentage value should be input as a whole number. For example, enter 10 for 10% or -7 for -7%. 3.5.10 INDICATOR MOVING AVERAGE Upon execution, the default period for the Indicator Moving Average calculations is 10-days. Longer periods identify longer term trends and provide greater smoothing of the indicator while shorter periods catch short trends and provide less smoothing. - 18 - This period can be any value greater than zero and less than the number of data sets being considered. 3.5.11 RESET DEFAULTS Selecting Reset Defaults changes all variable periods to their default values. Any time this function is is selected, an equity must be reloaded before it can be regraphed. 3.6 GRAPH TOOLS Once an indicator has been displayed, a set of graph tools become available to enhance the analysis of the indicators. The following provides a description of the various tools, how to implement them, and suggestions on ways to use them. With an indicator graph displayed, a graph tool is first selected by pressing the right mouse button and moving the mouse such that the pointer is over the Graph Tools menu. With the right mouse button still depressed and the submenus displayed, move the mouse down to the desired submenu tool which will become highlighted. Releasing the mouse button will then select that tool placing the program in a particular mode as described below. 3.6.1 DAILY DATA Selecting Daily Data will place the program in a mode in which the high, low, and closing price data and the volume and associated date changes in the heading as the mouse pointer moves within the graph. For example, if the Dow Jones Industrial Average is loaded and the Moving Average price indicator has been displayed, selecting Daily Data allows the user to move the mouse and 'point' to specific points within the graph and read in the heading the high, low, and closing prices, the volume, and the date for that point. The Daily Data mode remains in effect until the left mouse button is clicked. The Daily Data tool is available for all indicator graphs. It is useful in conjunction with a graph upon which the daily close of an equity has been overlaid using the Overlay Daily tool. 3.6.2 OVERLAY DAILY The Overlay Daily tool overlays the daily closing price over an already displayed indicator graph. For example, the Dow Jones Industrials Average has been loaded and the RSI price indicator displayed. Selecting Overlay Daily will overlay the daily closing price of the DJIA over the RSI indicator graph. Once the daily plot is complete, the program exits the Overlay Daily mode. - 19 - With a technical indicator graph displayed, it is many times desirable to see what movement in stock price caused the associated movement in the indicator. In addition, there are times when a divergence between the movement of a stock price and the movement of an indicator foretells of a trend reversal. The Overlay Daily tool does not provide a price scale when it is plotted. Therefore, if it is required to know the values of the daily prices overlaid on an indicator graph, the user can use the Daily Data tool described in 3.6.1 to display the price information. The Overlay Daily tool is available for all indicator graphs except for the Moving Average price indicator which already displays daily price data. 3.6.3 TREND LINES The Trend Lines tool is used to draw one or more trend lines. This tool is essential for determining price support and resistance levels. Trend line analysis is further explained in section 4.16 and will not be covered here. The Trend Line tool is available for use with all indicator graphs. Once selected, move the mouse such that the pointer is at the first point and depress the left mouse button. With the left mouse button still depressed, move the mouse such that the pointer moves to the second point. Releasing the mouse button draws a trend line. Note that the program is still in the Trend Line mode. Subsequent trend lines parallel to the first may be drawn by simply moving the mouse such that the pointer is over a desired point and clicking the left mouse button. As many parallel trend lines may be drawn as desired. The program stays in the Trend Line mode until the Return key is pressed. 3.6.4 EXTEND CHART The Extend Chart tool extends the Moving Average price indicator graph both timewise and pricewise. The Extend Chart tool is therefore only available when the Moving Average price indicator graph is displayed. Upon selecting this tool, a window opens prompting for an amount to extend the chart in dollars and days. Pressing Return completes the entries and the Moving Average price indicator graph is redisplayed in the extended format. Once the graph has been redrawn, other tools or program functions may be used. The tool is useful in conjunction with the Trend Line tool for extending trends into the future. 3.6.5 CYCLE LINES The Cycle Lines tool draws a series of vertical parallel lines across the face of an indicator graph. - 20 - Since many stock prices or trends are cyclic in nature, the Cycle Lines tool is useful in determining the length of those cycles. Once the Cycle Line tool has been selected, the cycle lines are drawn. The number of days in the cycle may be increased by one day by pressing the cursor-up key, or by 5-days by pressing the '8' key on the keypad. The number of days in the cycle may be decreased by one day by pressing the cursor-down key, or by 5-days by pressing the '2' key on the keypad. The cycle can be shifted to the left by one day by pressing the cursor-left key, or by 5-days by pressing the '4' key on the keypad. The cycle can be shifted to the right by one day by pressing the cursor-right key, or by 5-days by pressing the '6' key on the keypad. Another use for the Cycle Line tool is in conjunction with the Extend Chart tool. When the chart is extended, the lines depicting the months do not extend into the future. The Cycle Line tool can be used to 'draw' the month lines into the future. There are typically 21 trading days in a month which is the default setting for the Cycle Line tool upon selection. The Cycle Line mode is exited by pressing the Return key. 3.6.6 TRADING BANDS The Trading Bands tool is available only when the Moving Average price graph is displayed. The Trading Bands tool draws a trading channel envelope which represents a percentage increase or decrease of the first moving average (that is the moving average with the shortest duration). For example, if the first moving average period is set to 10-days and the second moving average is set to 501-days (thus inhibiting a display of a second moving average), and a 10-day exponential moving average is calculated and displayed, selecting Trading Band from the Graph Tools menu will draw a trading channel which envelops the price data. Since stock prices typically trade within certain price limits during a trend, a price will move higher and lower within a trading channel. For a price to move significantly out of this trading range (+/- 3%) would signal a breakout in a particular direction. See section 4.16 for a further discussion on Trend Lines and Trading Channels. The Trading Bands tool is useful as it provides a visual indication when a stock price breaks out of a trading pattern. 3.6.7 RELATIVE STRENGTH The Relative Strength indicator is available whenever a stock has been loaded. The Relative Strength indicator is simply a ratio of one stock's price data compared with a broad market index. In the case of The Stock Analyst, the selected equity is compared with the Standard & Poor's - 21 - 500 Index. The Relative Strength indicator attempts to display the performance of the selected equity relative to the market as a whole. The Relative Strength indicator ratio is drawn as a line chart along with the closing price data of the selected equity. Trend line analysis, indicator momentum and moving averages, and other technical analysis techniques can be used to interpret the chart. This tool is very useful in finding an equity which is out- performing the market. Such an equity will continue to outperform the market until relative strength loses momentum and changes direction. Conversely, equities which are performing poorly compared to the market will do so for typically many months. Trend reversals can be identified by divergences between price data and relative strength. Trend continuation can be identified by price and relative strength moving in the same direction. 3.6.8 INDICATOR MOVING AVERAGE The Indicator Moving Average is available whenever a price or volume indicator graph is displayed, with the exception of the price indicators: MACD and Moving Averages, and the volume indicator: Positive and Negative Volume Index. This tool simply draws an exponential moving average of the displayed indicator. This tool is useful as a means of smoothing an otherwise erratic indicator. In addition, many times a moving average overlaid on an indicator graph is used as a trigger line to provide buy and sell signals. For example, a 10-day exponential moving average overlaid atop a 12-day rate of change can provide buy and sell signals when the indicators cross. - 22 - 4.0 TECHNICAL ANALYSIS This chapter introduces the general basis of technical analysis. In addition, a discussion of each technical indicator produced by The Stock Analyst is presented as well as suggestions on using the indicator under various market conditions. The discussions presented here are intended to provide a general overview of the use of a technical indicator or a concept of technical analysis. For a more complete and in depth study of technical analysis, the user is urged to investigate the publications listed in Appendix B. 4.1 GENERAL Buy low, sell high. How many times have we heard these words and wished we could anticipate market tops and bottoms. While the idea of buying low and selling high is simple, putting this idea into action generally results in a financial loss for those who have no methodology behind their timing in and out of the stock market. A certain amount of market analysis is required to be profitable whether it be fundamental or technical in nature. A fundamental analyst attempts to predict the movement of a stock price based upon a company's prospect for growth and profitably. The fundamentalist considers the company's earnings and ability to perform within its industry group. Also considered are the overall national and global economic conditions and how they may effect the success of the company. Other issues may come into play such as political unrest, natural disasters or some other fundamental influence which may effect the financial status of a company. Generally, fundamentalists invest based upon issues which cause a stock price to move. A technical analyst does not care what specifically causes a stock to move in price. A basic premise of technical analysis is that fundamental influences on the price of a stock are already incorporated into the price of the stock. Therefore, the technical analyst is not concerned with fundamental issues, but rather the actual movement of stock prices which tend to move in fairly predictable patterns over time. The Stock Analyst provides various price and volume technical indicators which can be used to track and predict the general movement of the price of a stock. How to use each indicator as well as the effectiveness of an indicator under various market conditions are discussed. The indicators afforded the small investor by The Stock Analyst should be used in many cases to confirm and be confirmed by another. Through this confirmation process, market timing can be such that buying low and selling high is possible with a relatively high degree of confidence. - 23 - Successful investing depends heavily upon experience, cool emotions, and a consistent method of technical analysis of individual stocks. The investor should develop an investment strategy which incorporates stop-loss measures and the use of technical analysis to base buy and sell decisions upon. The trader should still expect to encounter some losing trades; however, by setting a stop-loss point and limiting losses, the difference between the profitable trades and losers will result in an overall profit. The Stock Analyst is a necessary tool the small investor can use in the technical analysis of market securities to enhance the opportunity to profit in today's stock market. THE REST OF CHAPTER 4 IS RESERVED FOR REGISTERED USERS OF 'THE STOCK ANALYST'. - 24 - APPENDICES Individuals who invest in the Stock Market should obviously know what they are doing. The user is urged to read as much as possible concerning investing in the Stock Market. There is no substitute for the combination of knowledge and experience. Appendix A lists the resources used to prepare The Stock Analyst software and this manual. Appendix B lists a few books which deal with Technical Analysis as well as investing in the Stock Market. APPENDIX A: REFERENCES "How %R Spots Reversals, Confirms Valid Trends", Elder, Alexander, Futures, March 1987. "Using Stochastics to Catch Early Trends and Reversals", Elder, Alexander, Futures, 1987. "Commodity Channel Index: Tool for Trading Cyclic Trends", Lambert, Donald R., Commodities, October 1980. "How to use MACD to Catch Price Trends Early", Elder, Alexander, Futures 1987. "Technical Analysis Explained", Pring, Martin J., Copyright (C) 1985. "The Encylopedia of Technical Market Indicators", Colby, Robert W. and Meyers, Thomas A., Copyright (C) 1988. "The Technical Analysis of Stocks, Options, and Futures", Eng, William F., Copyright (C) 1988. APPENDIX B: SUGGESTED READING "Technical Analysis Explained", Pring, Martin J., Copyright (C) 1985. "The Encylopedia of Technical Market Indicators", Colby, Robert W. and Meyers, Thomas A., Copyright (C) 1988. "The Technical Analysis of Stocks, Options, and Futures", Eng, William F., Copyright (C) 1988. "How to Make Money in Stocks", O'Neil, William J., Copyright (C) 1988. "Technical Analysis: A Personal Seminar", New York Institute of Finance, Copyright (C) 1989. - 39 - INDEX - A - About, Stock Analyst ... 11 Stock Update .... 6 Accumulation .... 15, 16, 33, 35 Advanced/Decline Line ... 1, 4, 5, 8, 9, 14, 16, 35, 36 - B - Back-up The Stock Analyst Disk ... i, 2 Booting The Stock Analyst Disk ... 2 Breakout ... 21, 37, 38 - C - CBOE ... 3, 5, 6, 8, 9, 14, 16, 36, 37 CBOE Put/Call Ratio ... 5,8,9,14,16,36,37 Calls ... 37 Chaikin Oscillator ... 15, 32, 33 Chaikin, Marc ... 32 Change Directory ... 7, 12 Chart Analysis ... 37, 38 Clear Screen ... 12 Clock ... 12 Colby, Robert W. ... 39 Commodity Channel Index ... 14, 18, 29, 30, 39 Contents, Disk ... 1, 2 Table of ... ii Crossing of Indicators ... 22, 24, 25, 28, 31, 34 Cycle ... 20, 21, 25, 30 - D - Defaults, Commodity Channel Index ... 18 Cycle Line ... 21 Indicator Moving Average ... 18, 19 Lane's Stochastics ... 17, 18 Moving Average ... 17 Positive/Negative Volume Index ... 18 Price Rate-of-Change ... 18 Relative Strength Index ... 17 Reset ... 19 Stock Data Sets ... 17 Trading Band Percentage ... 18 William's Percent R ... 17 Distribution ... 15, 16, 33, 35 Divergence ... 14, 20, 22, 26-31, 36 Dow Jones Industrial Average ... 1, 4, 5, 6, 16, 19, 36 - E - Edit Defaults ... 11, 16 Edit Equity Files ... 8 Edit Master File ... 7 Edit, Add Data Entry ... 8 Add Equity Entry ... 7 Delete Data Entry ... 9 Delete Equity Entry ... 8 Edit Data Entry ... 8 Edit Equity Entry ... 7 - 40 - Elder, Alexander ... 39 Eng, William F. ... 39 Envelope Channel ... 18, 21, 37, 38 - F - File, .bmap ... 1, 2 Format of Advance/Decline ... 4, 5 Format of CBOE Put/Call ... 5 Format of Equity ... 4 Format of Master ... 4 Format of S&P500 ... 5 system-configuration ... 1 Fosback, Norman ... 39 Fundamental Analyst ... 23 - G - General, The Stock Analyst: ... 1, 6, 11 Granville, Joe ... 32 Graphic Dump ... 1, 12, 13, 15 - H - Histogram ... 13 - I - Indicator, Contrarian ... 37 Crossing of ... 22, 24, 25, 28, 31, 34 Market Breadth ... 35, 36 Moving Average of ... 18, 22 Price ... 11, 13, 16, 19, 20 Relative Strength ... 21, 22 Volume ... 11, 14, 15, 16, 22, 34 - K - Kickstart ... 1, 2 - L - Lambert, Donald R. ... 39 Lane, Dr. George ... 14, 17, 18, 27, 28 Load, Stock Data ... 11, 15 Stock Update ... 3, 12 Stock Analyst ... 3, 10 - M - MACD ... 14, 22, 31, 39 Meyers, Thomas A. ... 39 Momentum ... 14, 22, 29, 31, 36 Momentum Oscillator ... 14, 29 Moving Average, Centered ... 13, 24 Exponential ... 13, 14, 21, 22, 24, 31 Simple ... 13, 15, 16, 24, 27, 37 Uncentered ... 24 Unweighted ... 13, 24 Weighted ... 24 Moving Average Convergence Divergence ... 14, 22, 31, 39 - 41 - - N - New York Institute of Finance ... 39 - O - O'Neil, William J. ... 39 On-Balance Volume ... 15, 32, 33, 34, 35 Oscillator, Momentum ... 14, 29 Price ... 13, 14, 29 Overbought ... 13, 14, 26, 27, 28, 29, 30 Overlay ... 16, 19, 20, 22, 31, 36 Oversold ... 13, 14, 26, 27, 28, 29, 30 - P - Positive and Negative Volume Index ... 15, 18, 22, 33, 34 Price and Volume Trend ... 15, 34, 35 Price Rate-of-Change ... 14, 18, 22, 29 Pring, Martin J. ... 39 Print, Data ... 6, 11, 12 Screen ... 1, 12, 13, 15 Project, Stock Analyst ... 6, 15 Stock Update ... 11 Put/Call Ratio ... 5,8,9,14,16,36,37 Puts ... 37 - Q - Quit, Stock Analyst ... 12 Quit, Stock Update ... 7 - R - Rate-of-Change ... 14, 18, 22, 29 Relative Strength ... 21, 22 Relative Strength Index ... 13, 16, 17, 25, 25 Resistance, Line of ... 20, 37, 38 - S - Software License Agreement ... i startup-sequence ... 12 Stochastics ... 14, 17, 18, 27, 28, 39 Stock Analyst ... 11 Stock Analyst, Executing ... 3 General ... 11 Stock Dividend ... 10 Stock Split ... 9, 10 Stock Update ... 6 Stock Update, Executing ... 3 General ... 6 Support, Line of ... 20, 37 system-configuration file ... 1 - T - Technical Analysis ... 22, 23, 24, 39 Technical Analyst ... 23 Time ... 12 Tool, Cycle Line ... 20, 21 Daily Data ... 19, 20 - 42 - Tool, Extend Chart ... 20, 21 Graph ... 19 Indicator Moving Average ... 18, 22 Overlay Daily ... 19, 20 Relative Strength Indicator ... 21, 22 Trading Band ... 18, 21 Trend Line ... 20 Trading Channel ... 21, 37, 38 Trend Line ... 20, 21, 22, 37, 38 Trend, Bear ... 25-28, 30, 31, 32, 36, 37, 38 Bull ... 25-32, 34, 36, 37, 38 Continuation ... 14, 22 Doubtful ... 32, 33, 34, 35 Neutral ... 14, 25, 26, 27, 29, 30, 38 Reversal ... 14, 20, 22, 24-32, 36, 38, 39 Trading ... 14, 25, 26, 27, 29, 30, 38 Trigger Line ... 14, 22, 29, 30, 31, 37 - V - Volume Accumulation and Distribution ... 15, 16, 35 Volume Indicator ... 11, 14, 15, 16, 22, 34 - W - Whipsaw ... 16, 17, 18, 25, 30 Wilder, J. Welles ... 13, 25 Williams Percent R ... 13, 14, 26, 27, 39 Williams, Larry ... 13, 26 Workbench ... 1, 2, 7, 12 - Z - Zoom-in ... 17 Zoom-out ... 17 - 43 -