FreeAnalysis Trading
Systems NASDAQ, New York Stock Exchange
(NYSE), American Stock Exchange (AMEX), Toronto Stock Exchange (TSX) and TSX
Venture Exchange
FreeAnalysis Trading Systems has developed a
proprietary stock analysis system which uses the key market action
parameters of each individual stock to determine its probable future
directional movement. The 3 key parameters this system uses are the
price, volume and speed of transactions for each individual stock.
These 3 key parameters of price, volume and time represent the
measurable dynamics of each stock, hence reflecting the trading
behavior of buyers and sellers on a daily basis.
Here’s how it works:
Step 1:
From the opening bell when the markets start
trading, our system will monitor and track the price, volume and speed
(time) of transactions for every single stock down to the Level II
bid/ask quotations. This is done right through the end of the trading
day. We do not monitor after-market trading activities. Since no two
stocks exhibit the same trading dynamics, our system is able to
determine the relative strength of each individual stock based on its
respective market action for the day.
Step 2:
At the end of each trading day, the system will
evaluate the market action of each stock together with its most recent
trading history to determine its status and likely directional
movement for the following day.
Step 3: Each individual stock will be assigned one of four statuses –
1) Entry/Long
– Indicates the end of a downtrend and either the beginning of an
uptrend or a resumption of upward movement after some profit-taking activity.
We have also provided a Historical Performance Record (HPR) for each stock to
let you know how the system has performed historically when each entry/long
signal was triggered. For example, if stock XYZ has a HPR of 90%, it simply
means that historically 9 out of every 10 entry/long signals generated for
stock XYZ has been correct. See the yellow Ç and green Ç up arrows depicted on the Intel chart below
2)
Bullish
– Indicates that the stock possesses further potential upward
movement. See the
GREEN
regions of the Intel chart depicted below
3) Exit/Short
– Indicates the end of an uptrend and either the beginning of a
downtrend or a resumption of downward movement after a covering of
short positions or false up- reversal. Once again, we have provided
a Historical Performance Record (HPR) for each stock to let you know
how the system has performed historically when each exit/short
signal was triggered. For example, if stock ABC has a HPR of 80%, it
simply means that historically 8 out of every 10 exit/short signals
generated for stock ABC has been correct. See the
RED
È arrows depicted on the Intel chart below
4) Bearish
– Indicates that the stock possesses further potential downward
movement. See the
RED
regions of the Intel chart below
Recent Daily Chart
of Intel (as of 12/16/2005)
To see more sample daily charts of other S&P 100
stocks, click here……
Before the markets open
each morning, log in to our analysis pages and check out the All
Stocks Status page to look for your stocks. If you are looking for new
trading opportunities, go straight to the Entry/Long and/or Exit/Short
pages. We’ve included the Historical Performance Record (HPR) that
shows you the historical signal accuracy for each stock Typically, the
higher the HPR%, the higher the accuracy of our signals
Step 2:
Track your stocks in the
All Stocks Status page on a daily basis. Our system analyzes every
stock and will reflect them as either bullish or bearish
Step 3:
Continue to monitor your
stocks until a sell signal appears (if you had an initial long
position) or when a buy signal appears (if you had an initial short
position). We strongly suggest you do this on a daily basis; given the
dynamic nature of the markets, stocks can and do become volatile for a
variety of reasons so it’s best to remain close to your portfolios.
Step 4:
Close out your positions
and go back to Step 1 to look for the next trading opportunity
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only and are NOT to be considered as a solicitation or recommendation. No
information provided shall constitute tax, legal or investment advice, or
an offer to buy or sell securities.
FreeAnalysis Trading Systems obtains information from sources deemed reliable, but does
not warrant its accuracy and disclaims for itself, its distributors, and
its information providers all liability arising from its use.
Copyright 2004-2005, FreeAnalysis Trading Systems. All rights reserved.