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PointsAhead! 2.0
(Mouse Optional)
DEMONSTRATION Diskette
User's Guide
This DEMO has been optimized for 286, 386,
and 486 CPUs This DEMO will not work on any
IBM XT or any other computer using a
8088 or 8086 chip.
(c) Copyright 1991, 1992 All Rights Reserved
The Small Investor's Software Company
Preface
More investors worldwide are taking charge of
their investment decisions. Where other products
help organize and track your profits and losses,
PointsAhead! is different by contributing
actively to your pre-investment decision making
process. PointsAhead! should be used before you
call your broker or trade desk to buy or sell
any investment. By graphically displaying the
historical prices, you can see what the "PROs"
use when they decide to invest; hence you can
benefit from better timing and make more money.
Another unique quality which adds value to
PointsAhead! is in its ability to integrate data
from varying sources. PointsAhead! was designed
to make acquiring and processing price data a
simple process. We believe that your time should
be spent on the most important aspect of
investing which is looking for investment
opportunities and not on the mundane daily tasks
of getting and storing the data.
PointsAhead! contains a number of "easy to use"
programs which allow you to collect, store,
graph, study, analyze, and edit end-of-day
information for any stock, warrant, future,
index, stock & future options, mutual funds, and
money market funds transmitted by various data
sources. These sources allow you to create data
files which are stored in ASCII format so that
you can use MS-DOS commands.
PointsAhead! has 6 sections: Parameters,
Symbols, Directories, Data, Graphics, and
Utilitities. Four of these sections perform
secondary functions like setting parameters,
user-defined symbols, and type of data source,
while other functions help you fix mistakes.
However, the most powerful section of the
program allows you to graphically display the
daily price information and perform many studies
and statistics on each ticker symbol.
The daily prices can be displayed in one of
three chart types: Bar chart, Equivolume chart,
and the Candlebar chart. The prices are
automatically graphically displayed in
accordance with the Japanese Candlestick format
using our proprietary display called the
Candlebar chart. We developed this new display
format which captures the graphical content of
Candlesticks and the compactness of bars through
the use of color. This new display makes it
easier for you to identify the prominent
Japanese patterns, or see how strong or weak the
market's price action was for the day. For an
indepth understanding of Japanese Candlesticks,
please refer to any of the books available on
the subject.
PointsAhead! has packaged 36 of the most
commonly used technical analysis tools and ideas
in an effort to automate your investment data
and enhance your trading skills. We hope that
these ideas will help you to make more
profitable trades. But it in no way is providing
you with a trading system. Education and a
thirst for knowledge are the root of frequent
successful trades. Our aim is to provide you
both of these; in your successful pursuit
towards investing.
Abbreviations used throughout PointsAhead!'s User
Guide:
- PA! = PointsAhead!
- SISCO = The Small Investor's Software Company
- The carrot ( ^ ) or <CTRL> represents the control key.
- <ESC> represents the ESCAPE key.
- <ENTER> represents either the ENTER or RETURN key.
- <ALT> represents the Alternate key.
- Combinations of keystrokes are written like this:
<ALT>+d
This means press the Alternate key and the
lowercase "d" key simultaneously.
Notes regarding this Manual and PointsAhead!:
- Throughout the User's Guide, any keystrokes
that are required from you will be CAPITALIZED.
- To accommodate different keyboards and
hundreds of additional studies, PointsAhead!
requires that both the CAPITAL & NUMERIC LOCKS
ARE OFF. Please note that Capital letters are
recognized as different from lowercase letters.
- Downloading data is a daily task, the
computer cannot automatically retrieve prices
out of thin air. You must turn on your computer
and press a few buttons every night in order to
maintain complete data. Remember to download
data after the market closes.
- PointsAhead! needs 7 days of data before
anything useful can be displayed on screen.
- Please check the packing list to make sure
that all of the programs are included on your
disk.
- The <ESCAPE > Key is used to exit from each
section of the program.
- Please readjust the contrast on your monitor
to maximize visibility of the gray lines.
- The Equivolume graph has a different scale
than the studies. This is normal.
- If there is no opening price then
PointsAhead! uses the previous days closing
price as todays opening price.
- MS-DOS commands are referenced throughout this
manual, please use the MS-DOS User's Guide for
a better understanding of these functions.
Hardware Requirements:
IBM or Compatible - EGA or VGA color
monitor required
MS - DOS 3.0 or higher
Hard disk drive is strongly recommended for
improving the speed in retrieving and storing
numerous data files. Example, if you have 400
Symbols that you follow; each symbol will need
approximately 50 bytes of storage space which
works out to be approximately 20k per day.
Capacities and Limitations:
Maximum number of symbols that can be
graphed individually: unlimited
Maximum number of symbols downloaded from
Signal per collection file: 800
Maximum number of days that can be
graphed: 400 trading days
Maximum number of months of weekly data
that can be graphed: 84
Maximum number of symbols for Manual Data
Entry: 300
The program requires at least 7 days of data in
order for the functions to operate properly. You
must download and collect data for 7 trading
days to get access to the statistics. You can
graph the data after collecting one days data,
however, most of the studies are based on
statictical averages, so you will not have
access to all of the functions at first. This
program is equipped to handle Indices, Futures,
Future Options, Stocks, Stock Options, Warrants,
Mutual Funds, and Money Market Funds symbols
downloaded from various data sources.
Customer Support:
Phone: (516) 798-9368
MON-FRI 10:00AM - 6:00PM EST
Electronic Mail:
Bulletin Board Service:
(212) 752-8660 for 2400 Baud Modems
(212) 752-8662 9600 or higher Modems
(No Parity, 8 Data bits, 1 Stop Bit)
Messages retreived daily
Compuserve:
User ID: 71165,2776
Messages retreived weekly
Genie:
Mail ID: J.Kellndorf1
Messages retreived weekly
US Mail:
The Small Investor's Software Company
138 Ocean Ave
Amityville, NY 11701
Packing List:
These are the files and data that
you should have unpacked.
PADEMO.TXT - DEMO Instructions
PAMDEMO.EXE - Activates program
PADEMO20.EXE - Graphs Sample Data
SP_U.DC - SP 500 September Futures data
T.DC - AT&T Stock data
$INDU.DC - Dow Jones Industrial Average data
Introduction to PointsAhead!
DEMONSTRATION Diskette
PointsAhead! has numerous functions and
features to help you analyze the prices of your
investments and better time the entry and exit
of these transactions. In an effort to make it
easier for you to understand the different
aspects to computerizing and automating your
investment decision making process, we have
divided the User's Guide into several sections.
The first section describes and explains all of
the functions and keystrokes necessary to use
all of the various statistics and charting
styles. The second section is really Appendix A
which describes all of the studies and
statistics available. The third section
pertains to explaining how PA! interfaces with
all of the carying data sources (Appendix F
through Q).
We at SISCO are bringing to you the tools that
are used by the professionals in the world of
finance and trading. We anticipate that there
are many new concepts and insights presented
within these pages that require the patience of
learning something new. If at times you do not
understand a particular study or how it affects
your ability to make money. Please use all the
available means to contact us or to use other
free sources such as your Library, Business
related programs on TV or Cable, or contact
your broker. We know that spending a little
time learning how to time the markets will
yield huge benefits for many years ahead.
Before you move on, here is a global overview
of what is involved in tracking and charting
your investments. Please remember that before
you can use PA! you need 7 days of price data
and that these prices should be retrieved on a
daily basis.
Unfortunately, there are a number of steps
required before you can perform the primary
function of PA! and that is to analyze the
price data and better time the entry and exit
of your transactions. Step one is to retrieve
the data and save it to your hard drive. Step
two is to identify what the data contains and
in what form the data is in. And the last step
is to display it.
Retrieving the data can be accomplished in a
number of ways using either a Newspaper, Modem,
FM Reciever, or Satellite. The transferring of
the price data usually involves other software
besides PA! such as Procomm (a telecommunication
program), a program named Online software (a
program provided free from the data source), or
FUTURELINK's Exporter program (another program
provided by another data source).
As mentioned above, retrieving the data is not
one of the functions of PA!. Retrieving data is
best left to the data source for the most
reliable and error free transfer of
information. However, once the information is
retrieved and stored, PA! can identify and
classify the data. This easy step is explained
in the section on how to use the data.
Lastly, displaying and analyzing the data is
explained in the section how to use PA!'s
functions and features. In most cases, it is
simply a matter of pressing a key to accomplish
what you wanted in the first place - a graph or
chart of the prices to help you identify
profitable patterns.
Getting A Quick Look at PointsAhead!
-----------------------------------
First of all, Capital letters are recognized as
being different from lowercase letters, so check
both the capital and numeric lock to make sure
that they are off before using any of the
studies. Secondly, This program does more than
just display price information, it also collects
and stores it for you. However, this is not done
automatically. You must press the required keys
to download, convert, and store the information
every trading day to keep your symbols' prices
accurate and complete. The program is quite easy
to use and become familiar with, however it is
recommended that you read this manual before
starting the program.
For those of you inclined to jump right into
things; you can run the program and sample data
immediately. For those of you with a mouse just
click in the appropriate areas to activate the
buttons.
Just type PAMDEMO <ENTER>. You are now in the
program. Press <ENTER> to erase the Title Window
and then Type ALT+G for graphics. The SP500
future contract will appear on the screen. Press
<CTRL>+h simultaneously to display the study
listing, or refer the Study Listing in this
manual, and select which study you would like to
display. At this point, you can analyze the
SP500 36 different ways. When you are done,
press <ESC> to quit and you will return to DOS.
Using PointsAhead!:
==================
You only need to type in the letters PAMDEMO
from either the PAS directory on your hard drive
or from the current directory to activate the
program. The rest of the program is menu driven.
This means follow the choices that are available
on the screen.
Here is a brief summary of the features
available to you with PointsAhead!
There are interactive keys so that you can
either move the cursor, pick one of the 36
studies to analyze the market, or select any of
the user defined hot keys. The computer monitor
will display three graphs simultaneously,
allowing you to compare the price action with
two of your favorite studies.
Some of the other functions included are:
1. Parameter- Setting standard values for
your preferences.
2. Symbols- Setting the user defined hot
keys with your favorite ticker symbols.
3. Directories - Setting Multiple data
directories. Allows you to separate
classes of investments and store them
in different directories.
4. Data- getting and storing data into
ASCII data files.
5. Utilities- Fixing mistakes and archiving the
ASCII data files.
6. Manual Entry- Creating and Entering your own
data to make history files and charts.
Main Menu:
1. Type PAMDEMO and the program will begin by
showing you a title window. Press <ENTER> to
erase it and at the top of screen will appear a
menubar which contains several choices.
2. The choices are quite simple. You can
change the program PARAMETERS; set which
DIRECTORY the data resides in; or convert DATA;
or preset which ticker SYMBOLS the program
should keep ready to display; or analyze and
display the GRAPHICS; or use one the UTILITIES
to modify the data; or QUIT the program. All
you need to do is press ALT and various letters
will highlight in red. At this point you could
modify the standard values for different moving
averages by pressing the "P" key; or you could
activate hot keys with your favorite symbols by
pressing the "S" key; or simply graphically
display a ticker symbol by pressing the "G" key.
Due to the nature of this DEMO disk, the program
is designed limit your access to the various
functions. You will be able to make changes to
the standard values however you will not be able
to save any changes made to the standard values
preset within the program.
Continue by selecting the "G" key and press
<ENTER> to graph the sample SP500 futures
contract. Also, included are data for the stock
AT&T and the Dow Jones Industrial Average. These
data can be accessed by pressing the function
keys F2 & F3 once a graph appears. The program
will load in these data automatically after
pressing one of these keys.
3. Once a graph appears you now have the ability
to analyze it 36 different ways. You can
practice with any of the keys to see what will
happen. Just press the control key
simultaneously with any letter of the alphabet
to activate a function. Or press CTRL+h
to display the help menu. If you get into
trouble, or think that you have made a mistake;
just press F1, F2, or F3 to redraw the graph or
exit the program. (see the next paragraph below)
4. Exiting the program is simple; just press
the <ESCAPE> key and the graph disappears and
you are now back to DOS. A purchased copy of PA!
would return to the menubar so that you could
make changes and then redraw the graphs.
Interactive keys: A tour of the Keyboard
Keys used by PointsAhead!
There are a few keys that are used by the
program. However, for the interactive keys to
work properly, make sure that the numeric and
capital locks are off (disabled). The escape,
the return/enter, the 4 arrows and all 10
function keys are used. All letters of the
alphabet in conjunction with the control key
are used to perform the 36 studies, plus
toggling the moving average on/off screen, and
stopping the program.
A hot key is a combination of keystrokes that
trigger the program to do something. Most hot
keys in this program require two keys. The
control key (the symbol used in this manual for
the control key is the carrot (^) ) must be
used simultaneously with the other key.
Generally, it is the alpha-numeric keys that
are used with the control key.
GREY - Key (on numeric keypad)
Decreases size of indicators while
simultaneously increasing the size of the Chart.
GREY + Key (on numeric keypad)
Increases size of indicators while
simultaneously shrinking the size of the Chart.
ENTER KEY changes Moving Average
The Enter/Return key when pressed changes the
moving average value used by the program. This
facilitates easy comparisons. For example, the
standard setting is for 14 days, however maybe
you would like to see the 20 day moving
average. All you would do is press the enter
key and answer the question on the screen. Then
the program redraws the graph with the new
moving average recalculated. Nothing appears
different because the moving average is only
visible after you press CRTL+y. Try it.
HELP MENU - (Control + H)
A blue display will list the studies that are
available. Press any to continue.
The program has a limited help menu. It is
really a listing of all the current studies
available. There are no on screen instructions
explaining the use of this program. For any
instructions, please refer to this manual.
Press any key to return to the graph.
( ` ) - Chart Types
The accent key is used to select one of the
three different types of charts available. A
pull down window will appear in the upper left
hand corner. Just use the arrow keys to select
the type of chart you wish to view - then press
<ENTER>. This chart type will remain active
until you change it. If you want to abort this
function; just press <ESCAPE>. Please refer to
Appendix B for descriptions of the chart types.
CONTROL + Y
The "^Y" keys are used to toggle on/off the
statistics. This allows you the option of
looking at the Japanese Candlesticks alone or
with the moving average and Bollinger Bands
overlaid on the screen simultaneously.
CONTROL + F10
The "^F10" (control + F10) is used to
enter any ticker symbol you want displayed.
There are user defined keys for your favorite
symbols. But when you want any other symbol
graphed you need to use these keys to analyze
these data.
DEMO - ACCESS TO THIS FUNCTION IS DISABLED!
TRENDLINE KEY (/)
The "/" forward slash line is used to draw
trendlines. Note that the control key is not
needed for this function. The program draws
trendlines by marking 2 points. After using the
arrows to move the line markers to isolate a
point, press "/" once. Now one point is stored.
Then move the arrows to mark the other point
and then press "/" again. Now on the screen
should appear a white line between the 2 points
that you isolated. If not, then move the line
markers again and press "/" again; a line
should appear. If you accidently make a mistake
with the 2 points, all you have to do is erase
the line. The only way to erase a line is to
clear the entire screen. There are two ways to
do this. First, press the control + Y and the
price graph is redrawn. Secondly, press the hot
key for the same ticker symbol again.
FUNCTION KEYS & CONTROL plus (DIGITS 1-9)
The function keys 1- 10 "F1-F10" and control +
function keys " ^F1 - ^F9 " allow you to graph and
switch between 19 of your favorite symbols
without entering the ticker symbol. These keys
are user defined symbol keys. Please refer to
the User Guide's section on Ticker. Also, refer
to Setting User defined Hot Keys section in
this manual. Remember, both the numeric and
capital locks should be off.
EXITING PROGRAM (ESC)
There are two keys to press to exit the
program. Each key is different depending on
where you are in the program. Pressing ALT+Q to
activate the mainbar and then pressing E returns
you to DOS - your operating system. Pressing the
<ESCAPE> key when you are in the graphics area
returns you to DOS.
SHELLING to DOS (ALT + s)
This feature allows you to exit PointsAhead! to
use DOS functions, like checking a directory
for a file or looking for a ticker symbol, and
then return to PointsAhead! without rereading
in data. Returning to PointsAhead! is easy; just
type the word EXIT <enter> and your graph will
be redrawn. This function requires more memory,
so if you are running out of memory please do
not use this feature.
USING MULTIPLE DIRECTORIES: ALT + d & ALT + #'s
This feature allows you to do is change from
one directory to another without having you to
go to the parameter section of the program and
change the pathname, extension name, or data
order. For most users using one data source,
you will not need this feature because all of
your data is stored in one directory with one
extension name and one data order.
DEMO - THIS FUNCTION HAS BEEN DISABLED!
CURSOR CONTROL: Arrow Keys
The Up and Down arrows move the horizontal
marker and displays the price at that level.
The Left and Right arrows move the vertical
marker to show past daily price information.
These keys can be used at any time.
When using the right and left arrows, the
screen will display the information for that
given day along with its statistics. Also, at
the end of the top line of information is
something called "DATA#". This is simply the
number of days data you have collected. This
feature is also useful for counting days
between cycles. Just substract the "DATA#" from
each peak and you now have the number of days
for that cycle.
When using the up and down arrows, the screen
will display a horizontal green line. This
marks the price level, and the price value is
displayed in green off to the lower right of
the top graph. This feature quickly identifies
price ranges. It is helpful to find a 50%
retracement, or identify Fibonacci targets.
Just have a calculator handy, and after marking
the top and bottom, you can calculate the areas
of resistance. Please note that the arrow keys
are also used to draw trendlines. Note that
these arrow keys can be used at any time to
identify a previous price.
MONTHLY ARROWS CTRL+ arrows
This combination of keys allows to move the
cursors in monthly increments instead of daily
increments. This is only useful when you have
collected more than one years worth of data.
CONTROLLING INDICATOR SIZE (keypad + -)
The half screen price charts always display two
indictors. At times you may want to change the
size of these windows. Increasing the size of
the indicator bar is through the use of the "+"
key on the numeric keypad while decreasing the
size is through the use of the "-" key on the
numeric keypad.
CALCULATOR ?
This simple calculator allows you to quickly
figure the percent change and the point
difference between to periods. Activating this
function is simple. Just select a day by moving
the left/right arrows to the day you wish to
view. Press the "?" (shift+/) key and then move
the cursor to the next day for comparison. Press
"?" again. Off to the right will appear the
percent change in yellow and the number points
between the two days. These numbers are based on
the closing prices of the days selected. Also,
please note that the order of the days you
select will determine if the noted change will
be a positive or negative value.
SCAN SYMBOLS PGUP / PGDN / HOME / END
These four keys will allow you instant access to
those data files listed in the directory as
defined in the Parameters Menu using the
specified Data Pathname and Extension Name. The
Page Down (PGDN) key will bring cause the next
symbol in the directory to be graphed. Using
this function the first time will cause the
first symbol in the directory to be graphed,
when pressed a second the second file will be
graphed, etc. PA! does not alphabetize the
symbols in the directory, it uses the order that
exists on your hard drive. The Page Up (PGUP)
key does the opposite. It causes the previous
graph to be drawn. If you graphed the first
symbol in the directory, then this key will
redraw the symbol. The HOME key causes the first
symbol in the directory to be displayed while
the END key causes the last symbol in the
directory to be displayed.
GRAPHICS
========
Main Graph Explanation
----------------------
After Pressing the "G" from the mainbar of
PAMDEMO, you should see three graphs. This
program displays the price history in the top
graph with accordance to the Japanese
Candlestick format. The red portion designates
the daily trading range. The white portion shows
strength with the closing price higher than the
opening price. The light blue portion shows
weakness. The closing price is lower than the
opening price. Just below the graph is the
ticker symbol along with the last days price
history: "C"= close, "H"= high, "L"= low, and
"MID"= the midpoint of the days range.
Underneath that information is the "STD=" which
is the standard deviation based on the preset
moving average. The "AVERAGE=" is the preset
moving average. The "2+/- =" are the second
standard deviations numbers which when graphed
are yellow dots. These yellow bands are also
known as "Bollinger Bands".
Explanation of Main Graphs use of Color
---------------------------------------
* Red = Daily Trading Range
Gray dash = Standard Deviation
* White = Higher Close than Open
Yellow dot = Double Standard Deviation
* Light Blue = Higher Open than Close
Gray vertical dashes = Monthly Marker
* Green dot = Closing price
Blue = Moving Average
NOTE: Press Control+Y to display the
Bollinger bands and preset moving average
Those colors indicated by (*) can be
changed to the color of your choice.
DEMO - ACCESS TO CUSTOM COLOR IS DENIED!
Lower Graph Explanation
-----------------------
The lower graphs are dedicated to displaying
the various functions and studies available to
you. Each Graph is labeled and the current graph
activated is highlighted in white and the other
graph is outlined in yellow. PointsAhead! uses
colored lines to differentiate between the
multi-lined graphs. The label above the graph is
the same color to help identify the function.
Performing Technical Studies and Statistics
===========================================
Remember, both the capital and numeric keyboard
locks should be off. Use the arrows to move the
cursor and price markers.
Once you have displayed the prices on the
computer screen using the graphics program "G",
there are 36 studies you can use to analyze the
prices. Bear in mind that the program has
preset values, and if you wish to change them,
then exit the graphics section and enter the
parameters section to change these values. You
would press <ESCAPE> then press ALT+P and the
standard values will be on screen.
In addition, you can with one key stroke change
from one symbol to another (Please refer to the
section on user-defined symbols). Also, you can
insert the current days price information to
update all studies intraday (control+a). There
is a help menu to show you the hot-keys
necessary to perform the different studies
(control+h).
STUDY LISTING
=============
The control key ( ^ ) must be pressed
simultaneously with the lowercase letter to
activate these studies:
^a - Allows you to add a new last, high, low,
open to add the next trading days price
action. It does not store the added data to
the permanent file.
^b - Plots 1, 5, & 10 day buying pressure
^c - Midpoint Rule: Shows frequency of market
to follow through on closing price. If
closing price is in top 50% daily range then
the study determines if the next days trading
range was higher than the closing price.
^d - Displays the net change in price from
previous close to current close. It also
shows the net change from the previous close
to opening price.
^e - Shows the size of the daily range. It
gives an indication of volatility. Also, it
provides you the average daily range (based
on preset open/close moving average).
^f - Shows daily range relative to closing
price. Price action below center line is
lower than close. (based on preset
open/close moving average)
^g - Frequency histogram of past 20 days
trading ranges
^h - Help Menu
^i - RSI relative strength index both 5 & 10
day (based on preset moving average)
^j - RSI daily range: shows highest to lowest
buying pressure for the day. The closing
Buying Pressure is also graphed.
^k - Shows daily range midpoint to next days
midpoint. Identifies real change in price to
prevent whipsawing. (based on preset moving
average)
^l - Plots a spread: you select the other
ticker symbol to create the spread. Once
plotted there is no cursor control nor can
any of the indicators be accessed.
^m - Changes moving average value
^n - Shows how many times the opening price
was repeated from ten days ago. If the graph
shows only 0, this means that the opening
price from tens days ago never repeated
itself. As a trader, it also means that if
you placed a trade on the open. You either
made a great trade because the price moved
higher; or you are losing money, and you
could not break even for ten days.
^o - Rate of change (indicator based on
preset moving average)
^p - It prints the last Close, High, Low,
Open, Midpoint, Standard Deviation bands, &
Moving Average price to printer (refer to
printing statistics for explanation of
AH,AL,OH,OL)
^q - Shows the open to close range for each
day
^r - Shows price action relative to opening
price. Below center line, price lower than
open (based on preset open/close Moving
average)
^s - Stochastic (based on moving average
preset)
^t - MACD (Moving Average
Convergence/Divergence) Oscillator:
^u - Plots up-down volatility (based on
preset moving average)
^v - Plots volume and open interest with a 3
day moving average of the volume.
^w - William's on Balance Volume (WoBV)
^x - Volatility Plot - Plots the standard
deviation for each day
^y - Toggles statistics on/off from main
graph (no average or standard deviation
bands)
^z - 2 day Buying Pressure: takes the buying
pressure of 2 days at a time. It uses the
open, high, and low of the past 2 days and
uses the second days price for the last
price.
^\ - limits the number of days data on the
computer screen.
NO CONTROL KEY IS REQUIRED for the following
studies - use only lower case letters.
a - ADX - Average Directional Movement
Index
w - converts daily data into weekly data
i - Random Walk Index
o - Price volatility relative to the opening
price
r - Answers the question, How did the past 5
weekdays (mondays) trade relative to the
open?
f - Answers the question, How did the past 5
weekdays (mondays) trade relative to the
close?
/ - Draws Trendlines (see Interactive keys in
this manual)
` - Selects chart type: Candlebar, Bar, or
Equivolume (use arrow keys then )
SHIFT KEY IS REQUIRED for the following
studies - CAPITALS only.
C - Chaikin's Indicator
% - William's % R
P - Parabolics: Stop and Reverse (SAR)
X - Triple Moving Average Crossover System
? - Calculator: % change and difference
> - Fibonacci retracement lines
ALTernate KEY IS REQUIRED for the following
functions. (@=ALT)
@s - Shells to DOS
@d - Edits directory listing
DEMO - FUNCTION DISABLED!
@1 through @7 - Selects Multiple Directories
DEMO - FUNCTION DISABLED!
@arrows - Monthly cursor
NO OTHER KEYS REQUIRED
GREY - Decreases size of indicators
GREY + Increases size of indicators
PGUP - instantly graph previous symbol
PGDN - instantly graph next symbol
HOME - instantly graph first symbol
END - instantly graph last symbol
**Note: For a more comprehensive explanation of
these studies and statistics please refer
to the other sections of this manual.
PARAMETERS
==========
Setting User Defined PointsAhead! Variables
Here is a listing of the variables that you can
set when using PointsAhead!.
1. Moving Average- set the time frame you wish
to use in days
2. Type of moving average- Mathematically,
there are many ways to average numbers. This
setting allows you to choose your favorite
type.
S. The Simple moving average is just the
average of the closing prices based on the
number of days set by the moving average
setting.
M. The median moving average calculates the
daily midpoint of the days trading range and
uses this value for averaging.
W. The weighted moving average
calculates the average by weighting each days
price differently. This method essentially
states that the current price is more important
than the price of 5 days ago. So, the program
will weight the current price more than the
next day, and the next, etc. With a 5 day
moving average, the current price would be
multiplied by 5, the previous days close would
be multiplied by 4, etc. then the sum of the
past five days would be divided by 15
(=5+4+3+2+1).
E. The exponential moving average is
similar to the weighted MA in that they both
consider the most recent data more important
than older data. However it is calculated
with an exponential decay rather than a fixed
proportional decrease each day.
3. MACD lag- the period in days to determine
the MACD oscillator
4. MACD moving average 1- the long term moving
average in days (usually 3X short term)
5. MACD moving average 2- the short term
moving average in days
6. Stochastic - sets the time frame you wish to
use in days
7. RSI- sets the time frame for the first RSI;
the longer term RSI is automaticly 2 times the
number set by you.
8. Rate of change- sets the time frame you wish
to use in days
9. Set opening/closing average- sets the time
frame you wish to use in days. This is used by
three studies. The size of the Daily Range
(^E), The Range Relative to the Opening Price
(^R), and the Range Relative to the Closing
Price (^F).
10. Set Communication Port- this allows you to
to choose which serial port the computer will
use for downloading data.
11. Set Data File Extension- this parameter
allows you to choose from different data files.
Here are some commonly used Extensions -
Signal: DC Bonneville: MC Metastock:
DOP CSI: DTA Futurelink/Globalink: PRN
12. Set Date Format - ASCII data is delivered
in various forms. PointsAhead! attempts to
provide with a universal ASCII data converter.
The date can be sent in one of three ways:
10/4/91, 100491, or 911004. The first way uses
slashes. This variable would then be set with
an S. Only Futurelink and Globalink users need
to set this variable to S. All other data
sources use the I setting.
13. Set ASCII data order - PointsAhead! you to
specify the data order. If your data is in
this order: (D)ate, (O)pen, (H)igh, (L)ow,
(C)lose or Current Price, (V)olume, Open
(I)nterest then you would take the letter of
each category and enter this as the variable
for PointsAhead!: DOHLCVI. This seven letter
code tells PointAhead! how to rearrange the
prices so that PointsAhead! can graph these
data properly. If any one of these data are
missing then leave out that identifier ie: if
open interest is missing then just type in
DOHLCV. However, if anything other than a
number appears in a column, then use a Z for
(Z)ero data. Also, Tick Data users can use
intra-day data by inserting a (T) for time. Any
other data that has a time field in this form (
HH:MM H=hour M=minute ) may also use the T.
Remember only 400 bars can be displayed, so
tick data will be limited to the last 400 ticks
(hardly useful) while 400 15 minute bars
represent 26 hours of trading or 4 days. Please
check the Appendicies for your data source's
data order.
14. Set Data Pathname- if the current directory
is where both the program and data files are
located then you do not need to insert a
pathname. However, if the data is in another
directory (different from the program), enter
the name of that directory along with its root
directory. In other words, type in the MS-DOS
pathname.
15. Set Backup Drive- this allows you to set
the disk drive that you would like to use for
making copies of the data files created by the
program. All you have to do is type the letter
A-E to indicate which drive is to be used.
16. Set Password - after the first month, you
will need a password to continue using
PointsAhead!. Please call us when PointsAhead!
asks for a password.
17. Set Drive & Path for Daily Data Files- this
is the pathname to store the raw output from
Signal. These data are not neccessary for
viewing graphs however they are useful for
recovering lost data and having a second copy
of these data. Also, this is used to locate
DTN, Radio Exchange, and Bonneville files.
DEMO NOTE: You may changes these values,
however they will not be stored or used.
Standard Preset Values for User Defined
Variables:
1. Moving Average 14
2. Type of Moving Average M
3. MACD lag 7
4. MACD moving average 1 21
5. MACD moving average 2 7
6. Stochastic 7
7. RSI 5
8. Rate of change 9
9. Opening/Closing average: 5
10. Communication Port: 1
11. Datafile Extension DC
12. Data order: DCHLOVI
13. Date Format: (S or I) I
14. Data Pathname:
15. Backup disk drive:
16. Password
17. Daily Datafile Path
DEMO NOTE: These are the values preset within
the program.
SYMBOLS
=======
DEMO NOTE: You may view and change these preset
symbols but you may not save any changes.
Setting User Defined Hot Keys
(refer to Appendix D)
This feature of PointsAhead! is optional, except
for ticker symbol #1, and is intended for those
of you who view the same symbols every day. The
most frequently used stocks, indices, and/or
futures should be entered to make switching
between symbols easier and quicker. The program
comes with the first four functions keys set
(F1-S&P future, F2-AT&T stock, F3- Dow Jones
Industrial Average F4- US Bonds future). The 19
user defined symbols are stored in the the file
called "DCSYMBOL". This means that if for some
reason this file is not present in the same
directory as PointsAhead!; then PointsAhead!
will not work.
To change these symbols just press ALT+S from
the Mainbar and press <ENTER>. The symbol table
should appear on the screen.
DEMO Note: These user defined keys will not
work if the numeric or capital lock is on.
THIS FUNCTION IS DISABLED!
TICKER SYMBOLS
==============
Due to the fact that there is no standardization
within the industry, each data source can have
its own naming system. This presents
discrepancies between the symbol names perhaps
printed in the newspapers from those used by
your data source. PA! can use any legal DOS name
to read a file so it is not dependent on a
specific ticker symbol. Please check with your
data source for proper symbol designation.
MANUAL DATA ENTRY
=================
Maximum number of symbols = 300
DEMO NOTE - THIS FUNCTION IS DISABLED!
PointsAhead! allows you to enter data from the
newspaper, for those of you who do not use any
electronic quote system. For those of you who do
have an electronic data source, please skip this
section.
We recommend that you use the same newspaper
when possible everyday so that the order of the
symbols remains the same and that the same
information can be entered each day. Otherwise,
the files will be incomplete and your efforts
will be of limited use. Remember to enter price
data each day so that you will have meaningful
data files.
PointsAhead! makes the chore of recording data
easier and lets you generate your own price
charts. PointsAhead! stores your favorite
symbols in the order you read them from the
newspaper with whatever symbol you wish to call
them. There are exceptions for commodities but
the details will be discussed later.
PointsAhead! also converts eighths and 32nds for
you saving you time entering numbers.
PointsAhead! also allows you to take a break
from entering data and resume the list at a
later time: basicly PointsAhead! allow you to
start where you left off.
UTILITIES
=========
refer to Appendix D for menu listing
DEMO NOTE - THESE FUNCTIONS ARE DISABLED!
You have just read how to graph these data and
collect it, but sometimes problems arise when
collecting data and you need to edit it, and
store it for some future reference. This is why
this section exists. There are 6 utilities
provided. Please refer to Appendix D for the
listing of utilities. Selecting a utility is
easy, all you need to do is press ALT+U from the
Mainbar and then press either the up or down
arrow keys to highlight the utility you wish to
use and then press enter. The descriptions and
functions of the utilities are outlined below.
Saving Data Files to Floppy Disk:
--------------------------------
If you are not a Signal user, you should use
the MS-DOS BACKUP command for making hard disk
back ups. You can also use the MS-DOS COPY
command to transfer your data files to floppy
disk. This means that you need to quit
PointsAhead! and return to the DOS prompt.
Please refer to the MS-DOS manual for details
regarding BACKUP.
Removing & Copying Expired Data Files
-------------------------------------
This utility removes from your data diectory
the data files that have not been updated with
the current date and copies the data files to
floppy disk. After you begin tracking some
symbols, from time to time you add new symbols
and delete others which no longer interest you.
However, there is no need to keep all of these
older unupdated data files in your current data
directory. So, to save time and disk space,
these files are saved to floppy disk and then
deleted from the data directory. In order to do
this, two variables need to be set in the
Parameter section of the program before
executing this utility. The Data Pathname and
the Backup Pathname needs to be set. Please
refer to the Parameter section of the program
to change these variables. Basicly, this
utility weeds out the old dead wood from the
pile. This utility is particularly useful if
you track futures and options which constantly
expire and roll over to the next contract. You
will end up deleting the old contract then you
will need to replace it with a new contract.
Just highlight this utility and press <enter>,
then wait for the Main Menu to appear on the
screen.
INSERT DATA: Adding Data
------------------------
If you could not download information for a
particular day then that information can only
be inserted manually. That is, open the data
file and type the numbers in the proper order
as described earlier, please refer to
Appendix E (use 2 spaces between numbers). If
you want to, you could forget that days data
and the program will graph the existing data
without showing a space in the graph. Of course
this means that these data are incomplete. In
an effort to keep the historical data accurate
you can insert a marker in the file that shows
the date only but all other data is recorded as
zero. The following example will explain.
You recorded data for SP_Z up to 901011
(10/11/90) but you couldn't download on 901012
(10/12/90) but you started again saving data
901013. If you would like to insert the data
from the 12th, you would have to insert it
manually for each symbol in the collection
file. However, you might not have the time to
do that immediately. In the Utilities section
of PA, just select the utility INSERT DATA. It
inserts the date to mark the line of data in
the file so you can change it at a later date.
This date marker is inserted into all data
files in the data directory. The data inserted
looks like this: 901012 0 0 0 0 0 0 0
. The graphing program will replace those zeros
with the previous days data until you edit the
file. The reason for this is to maintain the
moving averages and other statistics.
Remember that all data files will be changed in
the directory where the data is stored. You
cannot just add a date marker to 2 or 3
symbols; all of the symbols in the directory
with the proper extension will get a date
marker. These two variables are set by you in
the Parameter section of the program.
Follow these steps to insert a date marker into
all of your data files:
1. If its your first time using this utility,
you need to change two program parameters
a. from the Main Menu press P
b. set the data pathname - enter the
directory in which the data files are stored
c. set the extension name - enter the
extension name for all data files
d. press Escape to exit Parameter
section of program
2. From the Main Menu press U
3. Use the arrow keys to select the INSERT
DATA utility, then press enter
4. Wait for the Main Menu to return to the
screen - your finished.
Removing Duplicate Data:
-----------------------
Every now and then you might forget that you
had already downloaded data for a particular
day and you do it again. Needless to say,
deleting one line of information from hundreds
of symbols could take you a long time to fix.
Accidents to happen, and with that said, this
utility will remove any duplicate dates in your
data files. Like the other utilities, certain
parameters need to be set before this utility
will operate correctly. Please set the Data
Pathname and the extension name in the
Parameter section of the program. Please refer
to the Parameter section of the program to
change these variables. Just highlight this
utility and press enter, then wait for the Main
Menu to appear on the screen - your finished.
Removing the Last Data Entry:
----------------------------
Another type of problem that can arise is that
your computer clock is not set properly and you
saved data with the wrong date. This can be
fixed by deleting the entry and re-downloading
data again after the date has been reset. Of
course, other problems could make you want to
delete the last line of data, but for now when
you wnat to delete the last line of data all
you need to do is hightlight this utility and
wait for the Main Menu to appear. Like the
other utilities, certain parameters need to be
set before this utility will operate correctly.
Please set the Data. Pathname and the Extension
Name in the Parameter section of the program.
Please refer to the Parameter section of the
program to change these variables. Just
highlight this utility and press enter, then
wait for the Main Menu to appear on the screen
- your finished.
User Defined Main Graph Display Colors
--------------------------------------
You can change the Main Graph display colors by
just selecting the change color option from the
Utility section of PointsAhead! and follow the
instructions on the screen. Change one color or
all four colors, PointsAhead! will save your
changes until you change your mind again. The
colors are stored in the file named SCREEN.DIS.
If this file is missing PointsAhead! will use
the standard preset colors as described in this
manual under the section Main Graph.
PRINTING DATA FILES
===================
There is no menu listing for printing
Printing data files in numerical form can only
be accomplished by using the print command from
DOS. For example, printing the Dow Jones
Industral Index would look like this: Print
$INDU.DC . This is provided that you are in the
same directory as the data file; otherwise,
include the pathname to the data file such as:
PRINT C:\PAS\DATA\$INDU.DC
Printing Statistics: (^P)
-------------------
The (^P) hot key will print the last trading
days information plus the moving average and
the standard deviation bands. It also will
print the expected high and low for the day if
the current trading days opening price is
inserted (press ^A) and the following 2 studies
are performed. The (^R) and the (^F) functions
need to be pressed for these values to be
printed. Once these functions have been
executed, PointsAhead! will print the expected
opening high (OH), opening low (OL), the
average high (AH), and the average low (AL)
(refer to Appendix A for futher discussion of
AH, AL, OH, OL under Daily Range Relative to
Closing Price (^F) and Daily Range Relative to
Opening Price (^R) ).
Printing Graphs:
---------------
Graphs can not be printed with this version of
PointsAhead!. However you can purchase this
(Printing Graphs: price charts and indicators)
as an option. Please call for details.
Reading CSI data files
----------------------
DEMO NOTE - THIS FUNCTION IS DESABLED!
PointsAhead! has the ability to read these data
files with out altering their structure. The
process is easy. All you need to do is print a
symbol listing and then set a few parameters
within PointsAhead! .
First, exit PointsAhead! and run the
LISTCSI.EXE program. This program cross
references the F number.DTA file with the
actual symbol name and description. This
program will create a file called
LISTING.CSI. This listing can be printed so
that you can have a permanent record. REMEMBER,
in order to get the listing you must quit
PointsAhead! and then from the DOS prompt; type
in LISTCSI . Follow the instructions on the
screen and when you have exited the program,
you can print the LISTING.CSI file using the
DOS PRINT command.
Next, type PA . Press ALT+P to go to the
Parameters section of the program and change
these parameters:
Set extension name - DTA
Set data pathname - the directory name
that contains the data files (ie: F001.DTA)
(The two types of files
required are: QMaster, *.DTA)
Go to the Symbols section of the program:
Set the first Ticker Symbol: Enter Symbol
name
The Symbol Name can be entered in one of two
ways because of the way CSI indexes filenames.
The first way is to simply enter the symbol
name which should be less than 8 characters
long. The second way involves using the cross
reference file LISTING.CSI explained just
above. You could access the data by using the
CSI file name F022.DTA. For example, you would only
type in F022 for the symbol name.
Reading Metastock and Computrac data files
------------------------------------------
DEMO NOTE - THIS FUNCTION IS DESABLED!
PointsAhead! has the ability to read these data
files with out altering their structure. The
process is easy. All you need to do is print a
symbol listing and then set a few parameters
within PointsAhead! .
First, exit PointsAhead! and run the
LISTMETA.EXE program. This program cross
references the F number.DOP file with the
actual symbol name and description. This
program will create a file called LISTING.MS.
This listing can be printed so that you can
have a permanent record. REMEMBER, in order to
get the listing you must quit PointsAhead! and
then from the DOS prompt; type in LISTMETA .
Follow the instructions on the screen and when
you have exited the program, you can print the
LISTING.MS file using the DOS PRINT command.
Next, type PA . Press ALT+P to go to the
Parameters section of the program and change
these parameters:
Set extension name - DOP
Set data pathname - the directory name
that contains the data files (ie: F1.DOP)
(The three types of files
required are: Master, *.DOP, *.DAT)
Go to the Symbols section of the program:
Set the first Ticker Symbol: Enter
Symbol name
The Symbol Name can be entered in one of two
ways because of the way Metastock indexes
filenames. The first way is to simply enter the
symbol name which should be less than 9
characters long. The second way involves using
the cross reference file LISTING.MS explained
just above. You could access the data by using
the Metastock file name F22.DOP. For example,
you would only type in F22 for the symbol name.
Getting Help & Additional Information:
=======================================
If you would like to have these programs
customized, that is have an additional study
added or make any other changes, like
expanding any of the limits imposed by
PointsAhead!, please contact:
The Small Investor's Software Co.
138 Ocean Ave
Amityville, NY 11701-3611
(516) 789 - 9368
The minimum charge is $30.00 to add one study,
for other changes please call for prices.
Closing Comments:
================
PointsAhead! is intended to provide quick access
to graphical and statistical analysis for any
symbol. It is a tool from which you can learn to
identify patterns in prices. It can also help
you develop trading strategies. It provides you
the most commonly used indicators and studies to
teach yourself technical analysis and removes
the drudgery of collecting, maintaining,
calculating, and graphing data. This allows you
to concentrate on the task of identifying
profitable trades. So, PointsAhead! is not
designed to be a trading system providing you
rules on when to enter or exit trades but rather
it provides you a source of information from
which you can assess the nature of the market,
and helps you develop your own trading system.
Appendix A:
Explanation of Program Studies and Functions.
--------------------------------------------
Adding Current Prices: (^A)
This feature allows you to add the current days
prices so that you can see how the graph and
other statistics change throughout the trading
day. For all symbols, type in the last current
price, the daily high, the daily low, and the
opening price ( for stocks and indices the
opening price can be the previous days closing
price). However, when entering prices for T-
Bond futures, Ten year Notes, Mid American T-
Bonds, and the FYter five year future contract
(all other Bonds contracts are n decmal form);
just enter the price in 32nds. This feature
eliminates the conversion of bond prices in
32nds to decimal. Unfortunately, stock prices
still need to be converted from eighths to
decimal. For example, last price for IBM is 107
3/8; enter 107.375 -last price for the US Dollar
Index is 82.14; enter 82.14 -last price for
T-bond future is 93 14/32; enter 93.14. After
entering the prices, and you find a mistake, no
problem, you can change them again by pressing
the "^A" again. However, when changing prices
for the current trading day, or for "what if"
analysis, there is a shortcut. Just enter the
last price. You only have to enter the last
price after entering the open, high, and low
once for the day. The other prices are stored
until you change the daily high/low, or when you
switch to another symbol (this erases the
current intradays data) . Please note that once
you switch symbols the quote entered manually
will be lost. This function does not have any
memory.
ADX (a) Average Directional Movement Index
The ADX measures how far the price moves past
the previous days trading range. A strong
trending market will have higher highs from day
to day and so the ADX will also be increasing.
In weak markets, lower lows will also cause the
ADX to be increasing. This occurs simply because
the ADX measures trends whether they are up or
down. The ADX also has sub-functions called the
+DM and the -DM. These are components of the ADX
and can be used separately to determine buy and
sell points. One simple example of how to use
these +DM and -DM is to buy when the +DM crosses
above the - DM and conversely, sell when the +DM
crosses below the -DM. The ADX makes use of the
trading concept of inside verses outside
trading days. Whereas inside trading days do
not contribute to the trend, neither does the
ADX increase nor decrease in value. Outside
trading days are the important days to the ADX.
An outside trading day is when the price makes
both higher highs and lower lows as compared to
the previous trading days high and low. Inside
trading days are just the opposite. The high and
low are inside or equal to the previous trading
days high and low. Trending days are when
either, but not both, a new high or new low has
been made compared with the previous trading
day. So outside and trending days cause the ADX
to increase in value because these days
contribute toward developing a trend.
Buying Pressure (^B)
Mathematical formula:
(high-open)+(close-low)
BP = ----------------------- X 100
2 x (high-low)
This indicator shows the buying power for the
day. The amount of buying throughout the day is
represented by two events. The first is the rise
in price above the opening price (or the
previous day's closing price) to the high of the
day. The second is the rise in price above the
low to the closing price. Combined, this is the
total buying for the day. Selling is the
opposite price action which is the price below
the open to the low of the day plus the selling
from the high to the close. Buying pressure is
represented as a percentage 0 to 100. So, if
there is 88% BP then 12% is selling. The moving
average of BP is just a simple average of the
past 5 & 10 days of BP.
CALCULATOR ? (shift+/)
This simple calculator allows you to quickly
figure the percent change and the point
difference between to periods. Activating this
function is simple. Just select a day by moving
the left/right arrows to the day you wish to
view. Press the "?" (shift+/) key and then move
the cursor to the next day for comparison. Press
"?" again. Off to the right will appear the
percent change in yellow and the number points
between the two days. These numbers are based on
the closing prices of the days selected. Also,
please note that the order of the days you
select will determine if the noted change will
be a positive or negative value.
Chaikin's Indicator: (C)
This study combines volatility and the rate of
change to produce a variation of the ADX as a
trend detector. This indicator has two lines.
The red line is represents the moving average of
the daily range. This moving average value is
set by the OPENING/CLOSE MA in the Parameter
Menu. The green line is the Rate of Change of
the red line. This value can be changed by the
Rate of Change value in the Parameter Menu. The
minimum and maximum values are shown for your
own reference.
Differenced Data: (^D)
This graph shows you the price change from the
previous close to the current closing price in
red. Above the center line is a positive change
in price. Below the center is negative. Also,
for comparison, in blue is the change in price
from the previous close to opening price. This
graph allows you to understand the dynamics of
the ticker symbol. Small red lines mean little
price change. Large red lines indicate strong
moves.
Daily range relative to the closing price: (^F)
This graph uses the center line to represent the
closing price. So any line above the center is
the price action above the closing price. Any
line below the center is the price action below
the closing price. The graph displays the 5 day
average above and below the close. This is
useful for projecting the next days average
trading range for a stock in which Lotus does
not broadcast an opening price or for those of
you that prefer to base decisions on the closing
price. (ie: stock closed at 14.00 the average
up is 0.38 and down is -0.54. The expected range
for the next day would be 14.38 to 13.46)
The program prints the expected range as "AH"
and "AL". This is actually the average expected
high because the program uses the expected high
based on the opening price and averages it with
the expected high from the closing price; the
result is "AH". The same process is used for the
expected low "AL". If the study (^R- Relative
Open) wasn't used then the "AH" and "AL" are
based on the closing price only. You must press
a key to continue with the program, however when
you do, the information will be erased. Of
course, you can perform the study again at any
time to get the information back.
Daily range relative to the opening price: (^R)
This graph is similar to the graph explained
above. This graph uses the center line to
represent the opening price. So any line above
the center is the price action above the opening
price. Any line below the center is the price
action below the opening price. The graph
displays the 5 day average above and below the
close. This is useful for projecting the next
days average trading range for a future contract
in which Lotus does broadcast an opening price
or for those of you that prefer to base
decisions on the opening price. (ie: SP_Z opened
at 314.00 the average up is 3.58 and down is
-2.34. The expected trading range for the day
would be 317.58 to 311.66). Remember that you
need the opening price to determine the range.
The program prints the expected range as "OH"
and "OL". "OH" is the opening expected high and
"OL" is the opening expected low. These numbers
are derived from simple addition and subtraction
of the average up and down values next to the
graph from the opening price.
The yellow line is a three day Moving Average
of the price movement. This helps show the
detrended high frequencies that are in the
market. Basicly, short term cycles can be
identified from these data.
Fibonacci Retracement Lines (>)
Pressing this key allows you to automatically
draw Fibonacci retracement lines that are 38.2%,
50%, and 61.8% of the total range that you
identified. Selecting the range to be identified
is through pressing the (>) key. Pressing it
once selects either the top or bottom of the
range and pressing it a second time marks the
opposite end of the range. After selecting a top
and bottom, 5 lines will appear. The top and
bottom lines (white) identify the top and bottom
you selected while the three middle lines
(purple) correspond to the 38.2%, 50%, and 61.8%
retracement levels. Marking the top and bottom
is through the use of the arrow keys. Use both
the up/down and the left/right arrows to select
a price level then press (>) to save that point.
Then repeat these key strokes to save the second
point. After it is selected the lines will
appear.
Frequency Histogram of trading ranges: (^G)
This graph is for those of you that do not have
a strong background in statistics. This graph
groups the last 20 trading days trading ranges
and shows you what the most likely trading range
is going to be. This could be represented by an
average price with a standard deviation, however
this might be simpler to understand.
Intraday Action: (^Q)
This graph shows just the opening price to the
closing price of the same day. This shows the
strength of the price action. This is different
from the other graph (^D) which shows the
previous close to opening price.
Limit Data on Screen (^\)
At some point after you have been storing
information on numerous stocks and futures you
will have collected hundreds of trading days
information. This can be good for weekly charts
and for historical purposes, but the range on
the screen might get so large that it becomes
difficult to identify small price levels or even
see small trading ranges. Also, for future
traders collecting prices for a particular month
from year to year creates gaps in prices besides
gaps in ranges and indicators. These problems
can be solved with this function because you can
limit the amount of data to be graphed. Each day
is numbered. To view the data number just use
the right or left cursor keys and the DATA# will
be located just below the main graph. For
example, the last trading day might be labeled
DATA#= 238 and you only want the last 100
trading days on the screen. Just press both the
control + backslash simultaneously and enter the
data# 138 . This tells the program to start
graphing from the 138 day and graph up to the
last day 238. You basicly can zoom in on just a
smaller portion of the prices in the data file.
MACD (Moving Average Convergence/Divergence)
indicator: (^T)
This indicator takes the difference between two
Moving Averages which are preset (by you in the
Parameter program - to change values, goto Main
Menu (press ^C) and then type "P" and then takes
a moving average of the difference. Now, this
can get confusing, however, the oscillator is
based on the value determined by the difference
between the 2 moving averages and the moving
average of the difference. For example, if you
subtracted the value of the 7 day moving average
(top graph blue line) from the 20 day moving
average (top graph green line) that number is
the difference of the two moving averages. That
number can be positive or negative, and we will
call it the 7/20 number (bottom graph light blue
line). The next step is to average the 7/20
number (bottom graph yellow dots). This average
is now subtracted from the 7/20 number. The
result of this subtraction is called the MACD
Oscillator (bottom graph red lines). Its
purpose is to identify cycles. Above the center
line is a buy signal and below the center line
is a sell signal.
Midpoint to Midpoint: (^K)
This graph was produced to help eliminate
getting whipsawed (This means getting stopped
out of the market to soon). What this graph
shows you is the midpoint of the trading range
from the previous day to the midpoint of the
trading range of the current day. If you see
large red lines then the market is making real
price changes from day to day small red lines
show that the market is in a trading range. The
yellow line is the average of the midpoint to
midpoint changes (this average is set by the
open/close moving average).
Midpoint Rule: (^C)
This graph answers the question, how many times
did the price follow through the next day and
became profitable? If the closing price is in
the top 50% of the the days trading range, or if
the the closing price is in the bottom 50% of
the days trading range, the program draws a line
above the center when the price action continues
in the same direction the next day and draws a
line down when the price action does not follow
through. The program only analyzes the last 20
trading days. The red lines indicate whether or
not the price action followed the rules. Above
the center is a profitable trade, meaning had
you sold on the close if the price was in the
lower half of the days range; the next day
prices were lower than the close at some time in
the trading day. If prices were in the top half,
then the price went higher the next day in
keeping with the rule. Below the centerline,
the line indicates that the price action did not
continue in the same direction the next day -
had you entered a trade, it would of been a
loss. The yellow line is the last line. It does
not indicate a profitable nor a loosing trade,
it just indicates whether the last price is
above the midpoint of the day or below the
midpoint for easy market assessment near the
markets close. (Use the "^A" function to add the
prices for the day near the markets close to
assess your chances of profitability) The avg
gain is computed from the close to next days
high/low whichever is profitable. The loss is
computed from close to high/low to minimize the
loss.
Parabolics: SAR- Stop and Reverse (P)
This is sometimes called the SAR short for stop
and reverse system developed by Welles Wilder.
It is designed to always keep you inthe market
because when it generates a signal (when the
price crosses the trailing stop) you are to exit
your position and initiate a new one in the
opposite direction. The parabolics are simply
trailing stops that accelerate as the number
days in the same direction increases.
Price Volatility relative to the opening price
(o)
This proprietary indicator attempts to identify
which side of the market to be on - buy or sell.
It does this by first calculating the average
price above and below the opening price. With
this information, it now compares the high and
low of the day with the expected high and low
from the open. The indicator is simply a ratio.
With a value greater than one (the grey line on
the graph), you should be on that side of the
market, or if you were on the opposite side of
the market then you should now find the best
price to exit a losing trade because the market
has now changed direction short term. There are
four graphs on the bottom half of the screen
for this indicator. The top two lower graphs are
the HPVO (high price volatility from opening)
and the LPVO (low price volatility from
opening). These two graphs are for a short term
period as labeled on the screen. The HPVO is
based on the high of the day and the LPVO is
based on the low of the day. The bottom two
graphs are similar to the upper two graphs with
the exception that they are for a longer time
frame. This is automatically set for three times
the short term graphs. The short term graphs are
preset by the opening/closing parameter in the
parameter portion of the program. You can change
this value at any time by going back to the main
menu and pressing "P".
Typically if the short term HPVO (light blue
line) is greater than one (above the grey line)
than the LPVO (dark blue line) will be less one
(below the grey line) - indicating a buy. The
opposite is true for when the LPVO is above one
and the HPVO is less than one - indicating a
sell. Only on wild trading days will both the
HPVO and the LPVO be above one on the same day.
When this occurs, no useful information
regarding direction can be ascertained. The
short term PVOs are meant to provide you with
daily trading points, while the long term PVOs
are help you establish intermediate trends.
Rate of Change: (^O)
The rate of change indicator is a classic
momentum indicator. It simply subtracts the
current price from the price of 7 days ago (this
number can be changed by you and is preset) and
produces a percentage change. It can help
indentify intermediate trends. The center line
represents 100% and the other two lines
represent 99% and 101%. Generally, if a market
can move through these three lines the trend
will continue either up or down.
RSI daily range: (^J)
(Relative Strength Index)
This might be confusing, but a one day RSI is
also similar to buying pressure, because the
one day RSI is comparing the up price to the
total daily range. So, this graph shows you the
days theoretical greatest and weakest buying
pressure with the closing buying pressure shown
as a white dot. The yellow line just connects
the midpoint of all of the days ranges. This
graph helps spot shifts in buying and selling.
RSI - Relative Strength Index (^I)
Mathematical formula too complex for this
manual
The RSI shows you the amount of upward price
movement compared to downward price movement.
For example, if the RSI is based on 5 days, then
those days when the price moved up is compared
to the total price move for the past 5 days.
With this indicator, the accepted rule is if the
RSI is above 70% then it is overbought, while if
the RSI is below 30% then it is oversold.
RWI (i) Random Walk Index
This indicator really takes advantage of your
computers power due to the heavy number
crunching required to generate these data. This
also means that it is slow to appear on the
screen because of the massive amount of
repetition required.
The Index is contingent on a number of factors
however volatility is the main component. This
indicator adjusts itself to the varying amount
of volatility in the market being analyzed. It
essentially is a trend following indicator which
tends to be more objective because it does
account for volatility. The results on the
screen consist of four graphs. The top two
graphs are for the Short term RWI (SRWI) and the
bottom two graphs are for the long term RWI
(LRWI). Both the SRWI and the LRWI analyze the
highs and the lows to generate complimentary
graphs which when combined can be used to to
develop trading rules.
The peaks of the SRWI of highs tend to
correspond to short term tops in prices while
peaks of the SRWI of lows tend to correspond to
the short term lows in prices. The LRWI is for
trend following and peaks do not correspond to
highs or lows but rather a rise above the grey
line which represents the value of one is a buy
and a decline below the grey line is a sell.
The typical senario would be in a strongly
uptrending market the HRWI would go above the
grey line while the LRWI would be below the grey
line - this is a buy. If the HRWI should go
below the grey line and the LRWI is also below
the grey line then this could be interpreted as
either a hold signal or an accumulation signal
since the trend has not been violated. It just
has stalled, so this can represent a buying
opportunity or it could mean you should hold
positions without adding new ones in case the
market breaks in the opposite direction.
Deciding which strategy applies is determined by
combining other indicators and understanding how
strongly the market in changing direction.
Autolookback is a term used here because the
calculation requires that todays volatility is
recalculated so that the maximum random walk
value can be recalculated. The Random Walk Index
it quantifying how far has the price moved from
yesterday and correlating it to the current
state of volatility. This is then calculated to
find the largest change in price relative to
volatility for the last 70 days. The index auto
seeks the maximum value for the past 70 days and
then calculates the values based on the number
of days which presented the maximum random walk
value.
For example, if the market made a tremendous
price move it might prove to be only relevant
because the percentage difference between
today's price and 10 days ago is now greater
than can predicted mathematically due to normal
price drift. This means that due to the current
state of volatility the random walk values would
now be calculated using a 10 day period because
it generated the greatest values.
This calculation is performed on all 4
components. So it is conceivable that all 4
components could have 4 different autolookback
periods. Unlike other indicators in which time
determines how long one would expect to hold a
trade. With this indicator, time is not
particularly important but the values generated
are the relevant aspect of this indicator. This
implies that you do not have a preconceived
expectation of when you can expect to exit the
trade. You are just waiting for the numbers to
fall below the grey line.
Size of daily range: (^E)
This is simply the high minus the low of the
day. The graph centers the daily range and shows
you how big or small the range was compared to
the past. The MA (moving average) is simply an
average of the past days daily range (the number
of days is preset by the open/close Moving
Average in the Parameter program).
Spreads: (^L)
Just enter the name of the ticker symbol which
you want to create the spread with and the
program will show closing prices and plot spread
on the lower graph. The program converts data
into percentage changes to compare relative
performance between the two symbols. The actual
price changes might be larger or smaller than
that shown on the graph, however in percentage
terms the price change is proportional from one
graph to the other. Meaning, a 1% move is the
same change on the graph for each market however
a 1% move might be 20 points in one market and
80 points in the other market.
The program identifies the ticker by color, and
shows you the median price of each symbol from
which the percentage change is based upon. For
example, median1=300 and median2=2600, it is
from numbers that the percentage change is
determined and not simply the last prices from
each symbol.
Stochastic Indicator: (^S)
Mathematical formula for 5 days:
last price - 5 day Low
Stochastic = ------------------------ X 100
5 day High - 5 day low
The resulting number is a percentage ranging
from 0 to 100. It shows you where the current
price is relative to the range of prices of the
past 5 days. It is generally accepted that if
the stochastic indicator is above 80% then the
price is overbought (too expensive). Conversely,
if the stochastic indicator is below 20% then
the price is oversold (too cheap).
Trend Follower: (^N)
This graph answers the question, how many times
(or days) will the opening price reoccur? It
searches ahead 10 days and keeps track if the
opening price occurred the following day. A
value of ten would mean that in the following
ten trading days the opening price was within
the daily range of each of the ten days;
essentially a trendless market for ten days.
Conversely, a value of 0 would indicate a
trending market. If case of a loosing trade, you
would not have been able to get out of the trade
for ten days at the same price you entered the
trade.
By nature of the program design, the program
looks ahead and not behind. Consequently, the
last trading day with ten trading days is the
last value to be considered by the program. That
is why the graph does not produce any results
for the last ten trading days (there is not
enough information).
Triple Moving Average Crossover (X)
This is simply three different moving averages
(MA) overlaid one on top of the other. The way
you set the moving averages is by using the
Parameter section of the program. The long term
MA is set through the MACD Long Term value. The
intermediate MA is set through the ROC value.
The short term MA is set through the
Opening/Close range value. This is perhaps the
simplest and most widely used system to make
trades.
Toggles Statistics (on/off): (^Y)
This function simply eliminates the statistics
from the main graph. This allows you to view
only the prices as represented by the Japanese
candlesticks without any other lines on the
screen. All other studies and arrow keys work
normally. If you would like the statistics to
be displayed again; simply press the "Y" key
once again. The "Y" key toggles the statistics
on and off.
Two Day Buying Pressure: (^Z)
This graph is like the buying pressure graph
(^B) however this graph uses the open from two
days ago and the current last price. The high
used is the high of the past two days and low is
the low of the past two days. This graph was
designed to help analyze the first 2 hours of
the new trading day. So, when the trading day
begins use the (^A) function to add the new
days prices, then use the (^Z) function to now
display the buying pressure in context with the
previous days price action.
Up-Down Volatility: (^U)
Mathematical Formula:
example: Moving average = 5
Up line= sum of 5 days (absolute(High -
Previous close))
Down line=sum of 5 days (absolute(Low -
Previous Close))
This graph shows both the buying and selling
power of the market simultaneously. This
differs from buying pressure which is one
sided. This allows for spotting trends in
buying or selling. The crossover points are
short term directional changes and are
frequently tradable.
(the moving average is set by the open/close
moving average)
Volume and Open Interest: (^V)
This is simply a graph of the volume and open
interest. The gray line is a simple 3 day
average of the volume (this is not variable).
***Note: For indices which have no volume, this
graph can not be displayed.
Volatility: (^X)
This graph is represents volatility as the size
of the standard deviation bands computed by the
moving average used by you. The taller the blue
line, the larger the standard deviation and
hence the more volatility. When the moving
average is changed from 7 to 20 days, for
example, the volatility changes also. Rising
volatility usually dicates continuing trends,
while decreasing volatility, usually indicates
trendless, or sideways price action for a while.
Weekday statistics relative to open (r)
Based on the preset opening/closing average
parameter, this graphs the past weekdays trading
range relative to the opening price. For
example, the past 5 Mondays will be graphed with
the center grey line representing the opening
price. The blue portion above the grey line
shows you if the trading days prices above the
opening price and the blue portion below the
center line represents the prices below the
opening price. The red line is the average of
the portion above the open and below the open.
All five weekdays are displayed. Note: you can
only use this function with daily information -
weekly charts eliminate daily information.
Weekday statistics relative to close (f)
Based on the preset opening/closing average
parameter, this graphs the past weekdays trading
range relative to the closing price. For
example, the past 5 Mondays will be graphed with
the center grey line representing the closing
price. The blue portion above the grey line
shows you if the trading days prices above the
closing price and the blue portion below the
center line represents the prices below the
closing price. The red line is the average of
the portion above the close and below the close.
All five weekdays are displayed. Note: you can
only use this function with daily information -
weekly charts eliminate daily information.
Weekly charts (w)
The daily information will be converted into
weekly charts. All other functions will work
with this graph except for the Weekday
statistics. If you would like the daily
information back on the screen, all you need to
do is press the appropriate function key, if it
was one of the 19 user defined graphs, or press
both the control-zero keys to type in the name
of the ticker symbol.
William's % R (%)
This is really the same as the Stochastic except
that it is exactly opposite in value. It is the
inverse of the Stochastic. It is to be used in
the same way as the Stochastic. The scale
however is reverse also 0 to -100 instead of 0
to +100.
William's on Balance Volume (WoBV): (^W)
This graph relates price with volume to give a
indication of whether or not the price change is
associated with strength or weakness. If the
peaks are rising and the price is rising the
market is strong. The opposite is true for
declining prices with decling WoBV. However, the
best use of this indicator is for indentifying
positive or negative divergences. This usually
occurs with market tops and bottoms. Basicly,
the volume pattern changes and the WoBV
identifies this change. The classic positive
divergence is when then price declines but the
WoBV is rising. This would indicate a trend
change is in the works.
***Note: Those symbols without volume
information can not use this indicator.
HOW TO STAY OUT OF TROUBLE
==========================
There are as many styles to investing as there
are people. However, whether you believe in
reading the news for gaining your insight into
when to buy and sell or whether you believe in
letting the price dictate your actions, gaining
a graphical view of the past prices can
demonstrate profitable patterns that should not
be ignored. The art to investing is in the
blending of a number of disciplines. Although
this manual cannot emunerate in detail all of
the available techniques and strategies, we will
provide you with some additional thoughts to
help you gain perspective and stay focused on
the task of making more money from every
investment.
First, most of the time the investment that you
plan to buy will be stagnant in price. We ask
when should you attempt to purchase and sell
this investment?
Second, prices vary daily and have a range of
prices. How can you use this range to your
advantage?
Third, Everybody has the right opinion of market
but does it match your time frame for making
money? This states that somebody might think the
stock will go up and someone else feels it will
go down. If at first it drops and goes higher,
these opinions are both right. If the first
invested for the short haul and the other
invested for the long haul they both made money.
So timing is everything. Determine when it is
that you expect a profit and stick to your plan.
Fourth, you will loose money. Did you ever think
about the fact that you will loose money? What
is your contingency plan? How can you institute
damage control?
Fifth, which "hot inside tip" is worthy of your
money? You will have to decide on some other
critierion besides friendship, past experience,
and luck. Try doing some analysis.
Sixth, will the market tell you how to invest?
Yes. Look for the signs every day. They exist. All
you need to do is your homework; there ain't no
free lunch.
Seventh, how good are your instincts? Statistics
show that most investors loose money. We ask
why?
Eighth, successful investors are confident. PA!
has those tools which show you statistically when
you are taking a high risk or a low risk. Stay
with the low risk - high reward trades and watch
your confidence and your profits rise.
HOW TO PUT IT ALL TOGETHER
==========================
Here are a few sample charts that we will analyze
to demonstrate how to use the various studies and
function.
Insert example graphs here.
Insert exmple text here.
There is no way that professionals use all of
these tools on each investment. PA! has 90% of
what all professionals use to analyze their
investments, however they only use 5 to 8 items
out of the 36 studies available themselves to make
a decision. You should test all of these
indicators to learn how reliable they are and to
determine which ones produce signals that make you
comfortable in identifying low risk opportunities.
Try using different time periods, different
combinations of rules, and finally combine
different techniques to produce a trading
strategy.
One last thought, PA! very existence is because
traders can make money routinely based on trends
and price movements. However, traders realize that
there are times when the numbers alone are not
enough in formulating the trading plan. For
instance, the recent political environment during
September of 1992 created an unstable currency
market. Indicators were of some value, but no
indicator could predict what the the English
Chancellor was going to say and when he opened his
mouth the price dropped 400 points in the British
Pound. So don't bury your head in the sand, there
are periods when technical trading is the best way
and then there times when you can throw the charts
out the window. Good trades will become more the
rule than the exception with some diligence,
analysis, and common sense.
Appendix B: Different Chart types
Candlebar Chart
This is a new display format representative of
the Japanese Candlesticks. This format uses
color to identify strong and weak days. It has
the graphical content of Candlesticks but has
the advantage of allowing you to view more data
per screen. The colors can be changed, just go
to the Utility section of the program and select
the user defined Main Graph display colors.
Bar Chart
This chart is the traditional Bar Chart. The
opening price is the dash to the left of the bar
and the close is the dash to the right of the
bar. The color of the bars is the same as the
total range color. So , to change this color
just go to Utility section the program and
select the user defined Main Graph display
colors. Just set the total range color to what
you want.
Equivolume Chart
This chart is a two dimensional graph. It shows
you volume and price at the same time. The width
represents volume and height represents the
total trading range for the day. We have
enhanced the original chart design by including
the closing price as a green horizontal line.
The colors can be changed by going to the
Utility section of the program and select the
user defined Main Graph display colors. Up days
color is defined by the up range and Down days
color is defined by the down range. An up day is
defined by having today's close higher than
yesterday's close. The opposite is true for down
days.
FSCandlebar = Full Screen Candlebar
FSBar = Full Screen Bar
FSEquivolume = Full Screen Equivolume
Please take note that the scale of the
Equivolume price graph does not match the
studies. The days can be different widths due to
different volumes. PointsAhead! cursor is also
set for these different scaling factors. Please
use the cursor to match the price information to
the statistic.
Appendix C: The MENUBAR
Parameter Menu: this section stores and sets
your frequently used variables
Variable Name Standard Value
set initially by PointsAhead!
1. Moving Average 14
2. Type of Moving Average M
3. MACD lag 7
4. MACD moving average 1 21
5. MACD moving average 2 7
6. Stochastic 7
7. RSI 5
8. Rate of change 9
9. Opening/Closing average 5
10. Communication Port 1
11. Datafile Extension DC
12. Enter Date Format (S or I) I
13.Enter Data Record Order DCHLOVI
14. Data Pathname
15. Backup disk drive
16. Password
17. Daily Datafile Pathname
Symbol Menu: this section stores up to 19
symbols and activates function keys
Only four symbols are set
initially by PointsAhead!
1. Ticker Symbol: SP_U
2. Ticker Symbol: T
3. Ticker Symbol: $INDU
4. Ticker Symbol: US_U
Directory Menu:
allows for multiple directories
Data Menu:
this section lets you convert or download
data of your choice
The following services listed below require
conversion or downloading. Many other services not
listed here are compatible with PA! however they
only require a few settings to be changed.
- Prodigy
- Download SIGNAL
- Set Parameters for FUTURELINK /
GLOBALINK (Oster Communications) Data Files
- Separate Market Center Daily Data
(Bonneville)
- Separate DTN LDC data Files
- Separate Quote Monitor historical
data files (for Radio Exchange)
- Separate Personal Gains historical
DIF data files (for Radio Exchange)
- Warner Computer Services - modem
required
- Convert MX data (Track Data)
- Manual Data Entry
Graphics:
This part of PointsAhead! goes directly to
graphing these data and performs all
technical studies.
Utilities Menu: this section helps you store
and fix data files
-Remove & Copy expired futures/options data files
from current list
-Insert Data (Insert Missing data with blank line)
-Remove Duplicate Data (fixes mistake of
downloading twice)
-Remove Last Data Entries (deletes last
line of data)
-User Defined Main Graph Display Colors
Quit:
Exits PointsAhead! and returns you to MS-DOS