Support Tip: MetaStock Monitor SEPTEMBER-OCTOBER 12

Support Tip

How can I backup my formulas (Indicators, Experts, Explorations...)?
Contributed by MetaStock Support

As you know, backing up all of your work is very important (especially on a computer). You can backup your formulas, indicators, experts, and explorations in MetaStock with a few simple steps. Here's how:

To backup formulas in MetaStock:

1) First, open MetaStock. Then, click on the "Tools" header, followed by the "Indicator Builder".


2) Click "Organizer".


3) Click "Export".


4) Highlight the formula(s) you want to back up. You will be asked which custom indicators, system tools, explorations, and experts you want to back up on the following screens. Select ALL that you wish to back up.


5) Specify the location you wish to export the files to. You can password protect them on the next screen (if you wish). If you do, make sure you choose a password you will remember! This will create new files with the appropriate files in the folder you specified. This will not over-write any existing files, so the folder specified must not have any other formula files in it.


6) If you choose to enter a password, do it here but make sure you remember it!


7) The formulas you exported should appear in the folder you directed them to in step number 5.


To import files to a system:

1) Follow steps 1 and 2 from backing up formulas. For step 3, choose "import" rather than "export".


2) Specify the location you wish to import the files from.


3) All the formula files, experts, explorations, and system tests will be read from and added to the current location in MetaStock. If you already have formulas, experts, explorations, and system tests of the same name in MetaStock, you will be asked if you want to replace them. If you say yes, the import will finish, overwriting the formulas of the same name. If you say no, the import will be halted with nothing being added.

Power User Tip: MetaStock Monitor SEPTEMBER-OCTOBER 12

MetaStock Power User Tip

Analyzing Trading Systems
Contributed by Breakaway Training Solutions


When developing a system, one of the best ways to objectively review the results of the system is to test it over a large number of securities. In this two minute video, join Kevin Nelson as he shows you how analyze trading system results.

http://www.learnmetastock.com/FreeStuff/FreeVideos/TestExcel/TestResultsExcel.html

For more MetaStock training, make sure to visit Breakaway Training Solutions at www.learnmetastock.com or email Breakaway Training Solutions at admin@learnmetastock.com.

About Kevin Nelson

Kevin Nelson is the founder of Breakaway Training Solutions, Inc. He has spent the last 17 years becoming an expert on MetaStock software and a serious student of technical analysis while working for MetaStock. Prior to joining MetaStock in 1993, Kevin was a stockbroker for a well-known NYSE firm. In his role as Sales Manager at MetaStock, Kevin interacted extensively with MetaStock customers via phone, webinars, and public appearances. His experiences while working at MetaStock have enabled him to gain a keen understanding of the needs of technical analysts worldwide. While with MetaStock, Mr. Nelson was a featured presenter for four years. During this time, he traveled the U.S. introducing the MetaStock program to thousands of people and teaching them how to use its many features. His easy-to-understand approach is considered by many to be the best in the industry.

©Breakaway Training Solutions, Inc. 2012

Gaps Continued - 09.10.12

MetaStock SPRS Series - Week 85 - TechniTrader® Stock Discussion for MetaStock Users - Gaps Continued - September 10, 2012
By: Martha Stokes C.M.T.

Last week we discussed breakaway gaps and island continuation gaps, both with upside action.

The chart for this week was VC: Visteon Corp, an automotive parts store that is a recent IPO.

This stock has been working on its IPO bottom. The gap is significant because it marks the completing of the IPO bottom.

Chart 1

Although it may appear to be just an everyday common gap due to the small size of the gap, it actually has gapped over a resistance level. Hence, it is another breakaway gap pattern.

Breakaway gaps do not fill usually. Sometimes they may fill partially but most of the time, a gap like this one on an IPO that is bottoming and has high volume activity, tends to behave differently.

In this instance the current price action is a very tight consolidation.

When you see this kind of price pattern with high volume, small candles, and with TechniTrader® Quiet Accumulation TTQA green, then the pattern is indicating that large funds control price.

The largest funds can control their price far better than they could a few years ago due to the increasing use of Dark Pools. These over-the-counter transactions are not displayed intraday on the limit order books at the exchanges.

HOWEVER these orders are part of the overall data that feeds into your MetaStock Charting system end of day. So even though intraday traders do not see these giant transactions firing off during the day, these big purchases are still recorded through the National Clearinghouse as required by law.

So we have a quiet accumulation pattern going on where some funds are entering with very controlled price orders.

These patterns are important for retail traders to be able to identify because often after the Dark Pools have acquired these stocks, IF High Frequency Traders find out, they start buying. The HFTs tend to buy one or two days in a big move.

This is something retail traders can exploit IF they understand the patterns that trigger the automated HFT orders.

So you have two different market participant groups using automated order processing.

One uses Dark Pools or over-the-counter transactions off the exchanges intraday books.

The other uses automated orders on the exchanges trading a 1000 times per second or 60,000 times a minute speed wise.

Understanding what is occurring behind the price patterns is crucial.

By the way, did you know that YOU use a Dark Pool transaction whenever you trade with your online broker. Yes, that is an empirical FACT that the SEC just recently investigated and discovered.

I will be talking about what this really means for retail traders in my upcoming radio talk shows.

Tune in to find out more.

Trade wisely,

Martha Stokes, C.M.T.
Member of Market Technicians Association
Master Rated Technical Analyst: Decisions Unlimited, Inc.
Instructor and Developer of TechniTrader® Stock Market Courses
http://technitrader.com
MetaStock Partner

©2012 Decisions Unlimited, Inc.

Disclaimer: All statements, whether expressed verbally or in writing are the opinions of TechniTrader, its instructors and or employees, and are not to be construed as anything more than an opinion. Student/subscribers are responsible for making their own choices and decisions regarding all purchases or sales of stocks or issues. At no time is any stock or issue on any list written or sent to a student/subscriber by TechniTrader and its employees to be construed as a recommendation to buy or sell any stock or issue. TechniTrader is not a broker or an investment advisor it is strictly an educational service.

Gaps Continued

MetaStock SPRS Series - Week 84 - TechniTrader® Stock Discussion for MetaStock Users - Gaps Continued - September 3, 2012
By: Martha Stokes C.M.T.

Last week we studied KORS which had a gap at that time. This was not only a breakaway gap but it was also an island continuation gap which is a very strong confirmation of the upside action.

The island continuation gap occurs when a stock gaps up often a breakaway gap, then moves sideways for several weeks to several months and then gaps up again.

To be a true breakaway gap, the price must start in a consolidation or sideways pattern and must be below a resistance level. The breakaway gap itself, moves above and beyond the resistance and is that is why it is called a breakaway gap. It breaks away from the resistance to either continue a move upward or reverse a move.

The island gap is a very strong move because it confirms the upside action after a lengthy sideways pattern. See the KORS chart below:

Chart 1

Continuation upside gaps tend to occur mostly during platform market conditions when the market is moving sideways for long periods of time often for entire quarters, then it moves up on earning s news. This is a value- oriented market rather than a speculative market.

The continuation island gap can occur several times during a long term run.

It is important that you are able to recognize instantly the different kinds of gaps as some fill completely, some partially, and some do not fill at all.

By understanding which gap has formed you are better prepared for what price will do over the next few days. Island continuation gaps seldom fill as most of the time they are also breakaway gaps which seldom fill. The energy behind the move up tends to continue over the next few days rather than shifting to a correction.

Below is an entirely different kind of gap in the VC chart. What type of gap is this? Will it fill or will the stock continue moving upward? What market participant caused this gap?


Chart 2

Summary: We are going to see plenty of gaps this fall as the energy of the market increases due to more market participants trading and investing in the stock market. Already we have seen a surge of mutual fund investors buying mutual funds which allows these funds to buy more stocks. This has been occurring over the summer when most retail traders are assuming the markets are not doing much since they follow the indexes rather than tracking the institutions.

Therefore being able to identify not only what gap formed but when a gap is likely form due to quiet accumulation patterns prior to an event.

Trade wisely,

Martha Stokes, C.M.T.
Member of Market Technicians Association
Master Rated Technical Analyst: Decisions Unlimited, Inc.
Instructor and Developer of TechniTrader® Stock Market Courses
http://technitrader.com
MetaStock Partner

©2012 Decisions Unlimited, Inc.

Disclaimer: All statements, whether expressed verbally or in writing are the opinions of TechniTrader, its instructors and or employees, and are not to be construed as anything more than an opinion. Student/subscribers are responsible for making their own choices and decisions regarding all purchases or sales of stocks or issues. At no time is any stock or issue on any list written or sent to a student/subscriber by TechniTrader and its employees to be construed as a recommendation to buy or sell any stock or issue. TechniTrader is not a broker or an investment advisor it is strictly an educational service.

The Breakaway Gap

MetaStock SPRS Series - Week 83 - TechniTrader® Stock Discussion for MetaStock Users - The Breakaway Gap - August 27, 2012
By: Martha Stokes C.M.T.

Gaps are commonplace in the modern formula automated order processing stock market. With so many market participants using orders triggered by formulas and Quantitative Analysis strategies, gaps have become more of the norm rather than the exception.

For many short term retail traders, seeing a stock gap can be a frustrating experience. You want to capture those quick points as profit, but how can you if you don’t know when or if a stock is going to gap.

Over the next few weeks we are going to discuss each type of gap and why they form, where they form, how they form, and how you can get into the stock before the gaps.

Gaps form because of overnight order flow and premarket order flow. So all gaps on the daily charts form because of what is going to happen the minute the stock market opens.

Gaps occur due to other exchanges around the world opening before the US market and trading the stock at a higher price or a lower price, than what it closed at on the US market the day before.

Gaps also form due to heavy overnight order flow where many orders come through, so the market markets legally raise the price of the stock before the stock market opens, in relation to the supply and demand ratio for that stock.

Many gaps are caused by High Frequency Trading Firms that sniff out retail news, and other events that retail traders trade on or that smaller funds trade on. The HFT trigger order reacts to the news, positive or negatively, and this starts a chain reaction of thousands of trades firing off early even before the markets open. With the HFTs buying on news or selling on news in anticipation of a smaller fund or retail market participant reaction, stocks can gap hugely at open as the supply and demand side of the market creates a heavy trading pattern.

The first step is to identify which type of gap has formed.

1. Common Gap
2. Breakaway Gap
3. Running aka Measuring Gap
4. Exhaustion Gap
5. Island Continuation Gap
6. Island Reversal Gap

Do you know which of the gaps listed about formed on the chart below? It is crucial to your success that you can immediately identify what gap has formed, because the type of gap tells you a great deal about what price will do next.


Chart 1

Once you can identify what type of gap formed, then you will be able to determine what price will do next.

KORS is a young IPO stock, it has only been a listed stock since December of 2011. The recent gap is significant. Do you know what this most recent gap is from the list above?

Please study this stock and all the gaps on its chart. Next week we will discuss this type of gap, why it gapped, and how you could have anticipated this gap, getting in early before the stock moves several points. Also we will discuss whether this gap will “fill” or whether it will continue upward.

Hint: this one is the type of gap that seldom fills and tends to move upward.

Trade wisely,

Martha Stokes, C.M.T.
Member of Market Technicians Association
Master Rated Technical Analyst: Decisions Unlimited, Inc.
Instructor and Developer of TechniTrader® Stock Market Courses
http://technitrader.com
MetaStock Partner

©2012 Decisions Unlimited, Inc.

Disclaimer: All statements, whether expressed verbally or in writing are the opinions of TechniTrader, its instructors and or employees, and are not to be construed as anything more than an opinion. Student/subscribers are responsible for making their own choices and decisions regarding all purchases or sales of stocks or issues. At no time is any stock or issue on any list written or sent to a student/subscriber by TechniTrader and its employees to be construed as a recommendation to buy or sell any stock or issue. TechniTrader is not a broker or an investment advisor it is strictly an educational service.

How ETF's Can Elevate Your Trading -- Brad Powell

Position Trading

MetaStock SPRS Series - Week 82 - TechniTrader® Stock Discussion for MetaStock Users - Position Trading - August 20, 2012
By: Martha Stokes C.M.T.

Position trading is an easy to learn short term trading style that can provide extra monthly income for part time traders. One of the huge advantages of this type of trading is how little time it takes and the low risk of the trade.

The first step for most position trading is to find stocks that are bottoming. An ideal pattern is when the TechniTrader® Quiet Accumulation TTQA shows a shift of sentiment. TTQA shift of sentiment occurs when High Frequency Traders HFT automated orders, trigger panic among smaller funds who then sell heavily just as a stock is commencing a bottom. You can see this pattern clearly in the chart below. HFT red volume and red TTQA is followed by smaller funds selling as the stock bottoms. Then the shift of sentiment occurs with TTQA turning gray and then green, with average volume green bars exposing Quiet Accumulation from Dark Pool activity of the giant and large funds.

Chart 1

Further confirmation is seen with TechniTrader® Volume Accumulation TTVA, the volume oscillator provided by TechniTrader® that exposes consistency in volume patterns over time. As this volume oscillator moves above its center line and the ROC crosses below, the Dark Pool quiet accumulation activity is easy to see. TechniTrader® Flow of Funds TTFF the flow of funds indicator, also confirms steady inflows of buying by the institutions from Dark Pools.


Chart 2

Once the bottom is confirmed use a weekly chart to determine where resistance will stall price, and also to identify when the bottoming formation will be complete. The first level of resistance is the completion level for a bottom.


Chart 3

Position traders need to start watching stocks at the first indications of Dark Pool activity. Dark Pools are huge share lots often buying millions of shares of a company over several weeks to several months. When High Frequency Traders learn of the Dark Pool accumulation, they rush in and drive price up speculatively. This is why so many bottoms have strong velocity moves prior to the first level of resistance.

Position trading can be a highly lucrative trading style that doesn’t require the heavy commitment of time and resources that swing and day trading require. You can start with a much smaller capital base and you can study charts once a week, on a weekend, or in an evening rather than the daily studies required by swing and day trading.

Position trading is also far less risk as you are buying a stock that has completed a bottom and is poised for solid upside gains over several weeks to months.

This is a much slower paced, less frenetic style of trading that many busy people who simply do not have the time to trade every day can use for extra monthly income. Position trading is fun and rewarding.

If you are trading part-time consider position trading as an alternative to the more demanding swing and day trading styles.

Trade wisely,

Martha Stokes, C.M.T.
Member of Market Technicians Association
Master Rated Technical Analyst: Decisions Unlimited, Inc.
Instructor and Developer of TechniTrader® Stock Market Courses
http://technitrader.com
MetaStock Partner

©2012 Decisions Unlimited, Inc.

Disclaimer: All statements, whether expressed verbally or in writing are the opinions of TechniTrader, its instructors and or employees, and are not to be construed as anything more than an opinion. Student/subscribers are responsible for making their own choices and decisions regarding all purchases or sales of stocks or issues. At no time is any stock or issue on any list written or sent to a student/subscriber by TechniTrader and its employees to be construed as a recommendation to buy or sell any stock or issue. TechniTrader is not a broker or an investment advisor it is strictly an educational service.