As we reflect on the incredible journey of the past 17 years, we’re excited to share a milestone with you. It all began when Darren commissioned the creation of the WinWayCharts TradingExpert Pro trading analysis suite, and since then, we’ve been dedicated to enhancing your trading journey.
We’re thrilled to announce the official release of the new WinWayCharts TradingExpert Pro End-of-day version 2.55! After an extensive testing period with our dedicated testers, we’re confident this upgrade will elevate your trading experience.
Some of you who recently joined us may already have the new version, so no need to download the upgrade again. For others, this is an opportunity to embrace the latest enhancements.
Key Features of TradingExpert Pro 2.55:
Introducing the new Heiken Ashi charting feature
For detailed insights and a step-by-step demonstration, check out the upgrade page on our website
And the best part? This upgrade is entirely FREE of charge!
We’re committed to providing you with tools that not only enhance your client experience but also equip you for success in trading. Here’s to a year of prosperity and successful trading ahead!
The importable EDS file based on John Ehlers’ article in the March 2023 issue of Stocks & Commodities, “Every Little Bit Helps,” can be obtained on request via rdencpa@gmail.com. John notes ‘It’s simple but makes a noticeable improvement: You can reduce noise in the data by using an average of the open and close instead of using only the closing price.’ The code is also available below.
!Every Little Bit Helps
!Author: John F. Ehlers, TASC Mar 2023
!Coded by: Richard Denning, 1/12/2023
!Data Sampling Test
!(c) John Ehlers 2022
!INPUTS:
W1 is 14. !Wilder RSI length
W2 is 14. !Ehlers RSI length
!RSI Wilder code:
U is [close]-val([close],1).
D is val([close],1)-[close].
L1 is 2 * W1 – 1.
AvgU is ExpAvg(iff(U>0,U,0),L1).
AvgD is ExpAvg(iff(D>=0,D,0),L1).
RSIwilder is 100-(100/(1+(AvgU/AvgD))).
!Ehlers RSI code:
OCavg is ([open] + [close])/2.
Uoc is OCavg-valresult(OCavg,1).
Doc is valresult(OCavg,1)-OCavg.
L2 is 2 * W2 – 1.
AvgU2 is ExpAvg(iff(Uoc>0,Uoc,0),L2).
AvgD2 is ExpAvg(iff(Doc>=0,Doc,0),L2).
RSIoc is 100-(100/(1+(AvgU2/AvgD2))).
!CTest is RSIwilder.
!OCTest is RSIoc.
BuyRSIwilder if RSIwilder < 20 and valrule(RSIwilder >= 20,1).
ExitRSIwilder if RSIwilder > 80 or {Position days}>=20.
BuyRSIoc if RSIoc < 20 and valrule(RSIoc >= 20,1).
ExitRSIoc if RSIoc > 80 or {Position days}>=20.
Code for the author’s indicators are set up in the EDS code file. Figure 7 shows the EDS module backtest results using the RSI original indicator. Figure 8 shows the EDS module backtest results using the modified version of the RSI indicator over a 10-year period using NASDAQ 100 stocks. The comparison suggests that some of the metrics improve using the modified version and a few are worse.
The system rules are:
Buy when the RSI crosses down below 20
Sell when the RSI crosses above 80 or after 20 trading days
FIGURE 7: AIQ. This shows example backtest results for classic RSI trading system rules, based on closing data, over a 10-year period using NASDAQ 100 stocks.FIGURE 8: AIQ. This shows example backtest results for the RSI trading system rules, this time based on data that averages the open and close instead of using just the closing price data, over a 10-year period using NASDAQ 100 stocks.
If you missed this April 27, 2023 Zoom event, don’t worry, the recording is now available from the link at the end of this post. (FYI it expires on May 10th).
In this 2-hour session, Ray Foreman, UK Director of WinWayCharts covered
Getting Started Right with WinWayCharts – Making the Most of Your WinWayCharts – An hour-long session with UK Director Ray Foreman covering the power features in your WinWayCharts platform – great for new clients and those getting started.
In the second half Steve Hill, founder of WinWayChartss built a list of ETFs to trade just about everything and ran it through analytical tools.
Steve also created data files and list files for the ETFS. These are zipped and available below
ETF data files are here – unzip to your /wintes32/tdata folder. Then go to Data Manager, Utilities, Rebuild Master Ticker List.
ETF List files are here – unzip these files to your /wintes32 folder.
Thank you for your continued support of WinWayCharts services. Recently we have been working on an EDS scan to find double tops and bottoms. We’d like to share with you the progress and how to add this to your WinWayCharts. This is the code used in the scan (you don’t need to know the code but it’s there for your information).
There’s always room for improvement, but you can get a hold of this scan. This file is available for download from here
This may save to a download folder on your system. We suggest you move it to the path C:/wintes32/EDS strategies/Chart Pattern Strategies folder.
To run this strategy automatically after your nightly download of data
– Open Data Retrieval, and select the EDS Post Processing tab.
– Select add, and in the Open, Look in C:/wintes32/EDS strategies/Chart Pattern Strategies folder for db3.EDS
– Select Open and the strategy will run every night for you.
Here’s the results on the Sp1500 run on 1/3/2023
While not perfect, we hope this scan will be of use to you in your trading process.
In this recent Zoom video Steve Hill, founder of WinWayCharts discusses the Group and Sector Reports, using them to identify groups that are moving up. He then uses Darren’s indicators to focus in on potential stock candidates within these groups.
Advance-Decline data is calculated from daily issues reported on the New York Stock exchange. The Basic formula for calculating the Advance-Decline is the difference between the number of Advancing Issues and the number of Declining Issues per day, and adding it to or subtracting it from the previous day’s total.
In simple terms, the AdvanceDecline Line shows the direction in which the majority of stocks are headed. In a more important sense, it can show whether buying enthusiasm during a rally is spread across a broad number of stocks (a positive indication), or whether buying is narrowly focused on just a few industry groups or sectors (a generally negative sign).
An Advance-Decline Line is a contract/expanding/short-term market indicator. It is also referred to as an “order of magnitude” indicator because it provides a quick estimate of the market’s internal strength by showing how the overall market (or a specific sector) is trading in relation to a moving average.
One of the most popular ways of judging the market strength of the overall market is by using the advancedecline line (ADVs), also known as the “AD Line.” This metric is calculated by subtracting the number of decliners from the number of advancers in a market index. During a strong bull market (when a bull market begins), an AD line that is rising indicates growing market breadth (better market breadth) and indicates that money is continuing to move into the market. Conversely, falling AD lines indicate shrinking market breadth (worse market breadth) and indicate that money is leaving the broader market.
Because of its elegant simplicity, and the valuable insights it has provided at market turning points, the AD Line has become a highly prized indicator by both fundamentalists and technicians throughout the decades. But, in recent years, something seems to have gone astray.
The AD Line against the DJIA 9/1/2021 clearly shows the indicator making a new high, however the market drops precipitously shortly after
How could the time-tested Advance-Decline Line give off such obviously false signals? The answer is simple, but not easily seen. The change has occurred, not in the indicator, but in the data it measures. Over the past 3 decades, the New York Stock Exchange has allowed trading in a growing number of issues that are not, or do not trade like, domestic common stocks.
The truth is that most of the issues currently listed on the NYSE are not really stocks, at least not what investors generally define as stocks. Their inclusion has created turbulence in the sea of securities that has been amplified by the Advance-Decline Line. These stock-like issues include closed end funds (CEFs), American Depository Receipts (ADRs), and exchange-traded funds (ETFs).
In other words, the common stock components of the Advance-Decline Line offset one another, while the bond-related components were rising strongly, giving the Advance-Decline Line a positive bias. In other words, during those periods, the Advance-Decline Line was, in essence, measuring the strength of the bond market, not the stock market. It’s no wonder that the signals were misleading!
If you missed this April 27, 2023 Zoom event, don’t worry, the recording is now available from the link at the end of this post. (FYI it expires on May 10th).
English