These sets of technical analysis can be added to your eSignal application to extend your decision support capabilities.
Teresa Lo's PowerTools
As seen in the February and September 2004 issues of Technical Analysis of Stocks and Commodities
magazine, Teresa's PowerSwings Indicator is a visual tool that helps traders instantly gather critical information from any chart. Her PowerSwings Indicator is also available free with eSignal.
Teresa Lo has developed this suite of indicators and studies (called PowerTools) exclusively for eSignal.
For Active and Intraday Traders, PowerTools is available as an add-on study to eSignal.
No matter what your trading style and methodology, PowerTools provides you with information critical to trading success. PowerTools identify classic chart patterns, trade setups, trailing stop losses, and support and resistance with visual reminders to help you make informed decisions in real time.
 PowerTools are highly effective, yet easy to use. They work because the human survival instinct is hard wired and difficult to change, particularly when decisions have to be made under pressure. By measuring the effect of people on price, PowerTools identify key movements and chart patterns in every active market, in every time frame. There are no settings to adjust (until human nature changes).
Fari Hamzei's Hamzei Analytics
Hamzei Analytics include two of its coveted indicators, CI and DCI, in the EFS format. Hamzei Analytics (www.HamzeiAnalytics.com) provides cutting-edge, proprietary analysis and indicators to institutional and professional traders.
The Central Intelligence (CI) study is ideally suited for trend- and momentum-based trading. It's configured
to respond properly for intraday trend detection during the opening hours of the trading day. This is the ideal
momentum indicator for day trading high-beta stocks, sector ETFs or futures on a gap-up or gap-down day.
The Dual CI (DCI) study can be used to look for non-conforming bullish and bearish divergences. Because the inputs of the DCI indicator are user-definable, the user can manipulate and / or optimize it for different markets and / or different bar intervals. A divergence occurs when a price revisits a recent channel breakout high or breakdown low while the accompanying indicator fails to do so. Market technicians call it a non-confirmation. Divergence typically provides entry points with an acceptable risk-to-reward ratio.
Nigel Hawkes' Hawkeye Relative Strength and Hawkeye Adds
Hawkeye Relative Strength
The Hawkeye Relative Strength indicator shows a stock's performance compared to its underlying stock index. If the green line is above the red line, the stock (for example, MSFT) is stronger than the underlying index (NASDAQ 100) and vice versa. We suggest that you only buy stocks stronger than the index and sell stocks weaker than the index.
Hawkeye Adds
Adds are an algorithm of volume and average true range. This strategy is a combination of methodologies
used by the famous Turtle Traders and the legendary 1950s stock trader, Nicholas Darvas, as described in his book How I Turned $10,000 into $2 Million. Adding volume conditions and the relationship of close to open, we feel, greatly enhances this strategy.
There are 5 inputs:
| 1. |
Long_Short (Enter 1 for Long and -1 for Short.) |
| 2. |
Trade_Entry (Enter the close value of the bar you entered the trade on [initial line on chart].) |
| 3. |
ATR_1 (Entering a 1 will plot a line 1 average true range [ATR] from the entry price. You can set the ATR
inputs to your own liking, depending on how aggressively you wish to trade. If you want to see the price move through 2 ATR before taking your first add, enter a 2...) |
| 4. |
ATR_2 (This input is the number of ATRs from the value of the first ATR line. You may wish to put in 1 because an uptrend has been identified.) |
| 5. |
ATR_3 (This input is the number of ATRs from the value of the second ATR line. You may wish to put in 1 because an uptrend has been identified.) |
Note: These inputs values are discretionary. Sometimes, a price bar will go through 2 or 3 ATR levels. When this occurs, expand the input value of the first ATR, so it encompasses this move.
When should I add to my position?
FUTURES
Formula 1+ 3+ 2+ 1=7
To implement this formula you start with one contract; then add 3, and so forth. Add to the position when the price has closed above the first ATR line, the current bar volume is green, the close is greater than the open and your position is in profit.
Add when each subsequent ATR is breached as described in the rules previously outlined. If you are stopped out during a trade and the trend resumes, you should re-enter only using one contract, and you should not use the adding formula.
STOCKS
Formula 1+1+1
To implement this formula, you start with whatever size your money management allows and then add twice more with the same amount of stock, providing your first position is in profit.
Add to the position with each new close above the ATR lines, providing the volume is green and the close greater than the open. If you are stopped out during a trade and the trend resumes, you should re-enter only using one position with no further additions.
Exit all contracts simultaneously. This formula capitalizes on trend runs, so traders will only be exposed to a small loss (1 contract) at the commencement of a trade.
One of Jan Arps' Crown Jewels -- the Universal Swing Tool Indicator
The Universal Swing Tool is a “Swiss army knife” tool for displaying and analyzing price swings of different magnitudes. This tool generates a series of zigzag lines connecting successive swing highs and swing lows. Accordingly, we are able to filter out the random noise in price fluctuations and focus our attention on the magnitude and speed of the up moves and down moves of price and their relationships to one another.
As well as plotting the basic zigzag line, this tool has the additional capability of displaying the following
information about the price swings:
| 1. |
The magnitude of each swing, in points |
| 2. |
The ratio of the magnitude of each swing to that of the preceding swing (swing ratios) |
| 3. |
The longer-term trend direction |
| 4. |
Retracement support / resistance levels for the current swing, as well as for previous swings |
| 5. |
The swing reversal price (that is, the price to which a current swing will have to revert to constitute a reversal of swing direction) |
The basic Arps Universal Swing Tool connects alternate swing highs and swing lows using a proprietary pattern-recognition algorithm that is universally applicable to all charts on any time frame. The size of the swings to be recognized is controlled by a User Input, “Sensitivity”, which works like a volume control on a radio.
A Sensitivity value of 1 will display swings of the smallest magnitude, while a Sensitivity of 10 will display
only very major swings. Typically, to display roughly 5 - 8 swings in a chart window, a Sensitivity value of approximately 3 to 5 will work with charts in any price range.
The most recent swing leg on the chart connects the highest high / lowest low with the last confirmed previous
swing high / low. As you follow this line in real time, you will see that it changes as new highs / lows are reached until it is finally confirmed as a turning point by accomplishing the required reversal amount.
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