FreeAnalysis Trading Systems
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Behind the scenes - how we do it

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……
 

Step-by-step guide on how to use our stock analysis

Step 1:
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

Who benefits from our services…..continue

Click Here To Check Out Our Premium Packages!

Click Here To Sign Up For A Risk-Free, No Obligation Membership!!
 

 
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The links and or information on this site are for informational purposes 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.