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W E B R E V Ie W TRADERS´ TOOLS 37 Professional Screening, Advanced Charting, and Precise Sector Analysis www.chartmill.com The website www.chartmill.com is a technical analysis (TA) website created by traders for traders. Its main features are charting applications, a stock screener and a sector analysis tool. Chartmill supports most of the classical technical analysis indicators along with some state-of-the-art indicators and concepts like Pocket Pivots, Effective Volume, Relative Strength and Anchored Volume Weighted Average Prices (VWAPs, MIDAS curves). First, we will discuss some of these concepts. After that, we will have a look at the screener and charting applications. Relative Strength different manner. This form of Strong Stocks flatten out again. “Strong stocks” Relative Strength is available in Relative Strength was used in The screener supports the filters the nicest steady trends WEBREVIEW different forms at chartmill.com. “Point and Figure Charting” by concept of “strong stocks”, in the market and does a terrific Two Relative Strength related Thomas Dorsey. which are stocks with a high job in mimicking IBD (Investor‘s indicators are available in the Relative Strength. But there is Business Daily) stock lists. charts and screener: Besides these two indicators, more. Not all stocks with a high there is also the Relative Strength Relative Strength ranking are also Effective Volume • Mansfield Relative Strength: Ranking Number. Here, each strong stocks. Relative Strength Effective Volume is an indicator This compares the stock gets assigned a number looks at the performance over that was introduced in the book performance of the stock to between zero and 100, indicating the past year. Some stocks just “Value In Time” by Pascal Willain. the S&P 500 index. This form the percentage of stocks that is made a huge jump at some point The indicator looks at the intraday of Relative Strength is mostly outperformed by this stock. For because of a fundamental event. minute data to find out what large known from Stan Weinstein’s example: A stock with a Relative This jump gives them a high players are doing in a certain Classic “Secrets for Profiting in Strength Ranking number of 92 Relative Strength value. However, stock. It is able to discover Bull and Bear Markets”. outperformed 92 per cent of all one is not interested in those accumulation or distribution by • Dorsey Relative Strength: This stocks in the last year. This latter stocks, but in stocks that show large players in the analysed indicator also compares the form is highly useful in the screener a nice and steady trend over the stock. performance of the stock to where one can filter stocks based year, not stocks that are flat, jump Effective Volume is used in the S&P 500, but in a slightly on their ranking number. 300 per cent higher and then several ways on chartmill.com: 10/2011 www.tradersonline-mag.com TRADERS´ TOOLS 38 • To analyse accumulation and narrowest channel possible on on this tab is “signal”. “Signal” distribution in individual stocks a chart. This is very useful for has a list of signals that are in the charting applications. finding stocks that trade in a very useful starting points. F1) Stock Screener • To filter stocks under heavy channel. Examples are: “near new high”, accumulation or distribution by “strong stocks” or “pocket large players in the screener. Monest Value Indicator: Another pivot today”. Especially those situations indicator by www.monest. • The Technical tab allows for where a divergence between net that determines whether lots of technical filters like price accumulation or distribution a stock is cheap or expensive performance, Relative Strength, is measured against the within its short term context. accumulation or distribution performance of the stock, are Contrasting most other oscillators and many other technical of interest. it has not got lag or stickiness in indicators. • To measure the accumulation overbought/oversold zones while • The “Monest Channels” tab or distribution of all stocks in a a trend marches on. allows filtering based on the certain sector or industry. This properties of the Monest We see a set of filters and configuration settings for results and charts. gives us a nice market breadth Pocket Pivots: Pocket pivots Channels. Here one can filter Source: www.chartmill.com indicator. were recently introduced by on the width or length of the Chris Kacher & Gil Morales in channel, but also the “strength” More Indicators their book “Trade Like an O’Neil which is the number of times it F2) Screener Shortcuts The charts and screener support Disciple”. They basically find was visited by the price in the some other indicators that are not moves under high volume in past. The strength of a channel commonly found in other charting stocks. The screener supports also determines how strongly applications: screening for stocks that had one the channel acts as support or or more pocket pivot recently. resistance. Support and Resistance: • The “Support and Resistance” Support and resistance trend Stock Screener tab allows filtering based on lines will automatically be drawn The most impressive feature of the properties of the support & on the chart when this indicator www.chartmill.com is definitely resistance lines on the chart. is selected. Also the screener the stock screener. The concepts This allows you to search for allows screening for stocks near listed above are all supported by stocks that are near important their trend lines or about to break the screener. Figure 1 shows a support or resistance levels. them. screenshot of the screener. Below the filters, you can select The screener has a number of how you want to see your Monest Channels: An tabs (marked “A”) that group a set results (“C”). indicator developed by the of settings (“B”). • “View” allows you to select “mother website ”www.monest. between a table, quick charts, net. Monest channels draw There is: a detailed technical view or a a horizontal channel that is • A General tab. Here general The homepage of chartmill.com shows handy shortcuts to the screener. CSV based ticker list. They link to the screener fully configured for popular trading systems. optimised for both width and filters such as the market, • “Order by” allows for length. The Monest Channel sector or industry can be sorting results. You can, for Source: www.chartmill.com determines the longest and applied. A very interesting field instance, sort by three month 10/2011 www.tradersonline-mag.com TRADERS´ TOOLS 39 performance, Relative Strength, anchored indicators on a certain Anchored VWAPS and Stops or one of many other sorting candle. Examples of anchored An input to for instance an ATR- options. indicators are stops or VWAP’s. stop on a chart is the day of the Another nice feature of the entry. The stop should calculate All views of the screener advanced charts is the position the maximum price from that day will present overlay charts of sizing tool. onwards and should subtract the results so that you can n times the ATR value from F3) Position Sizing Tool immediately inspect lots of them. Position Sizing Tool that. The starting point is called You can fully configure the charts As every trader should know, the “anchor point”. Anchored that will be shown in the overlay the most important aspect of VWAPS and Stops are supported with the chart settings (“D” in trading is position sizing. You by both charting applications, the screenshot). You can even determine where you get out if but the advanced charts allow include indicators. the trade fails and based on your you to interactively select the entry and exit you can determine candle where the VWAP or Screening Shortcuts how many shares you can buy stop should be anchored, i.e. The chartmill.com homepage given your account size and the calculated from. offers an easy entry to the risk you allow for this trade. The screener and contains some position sizing tool does these Sector Analysis handy shortcuts to get started. calculations for you. The site also has a sector analysis Traders can start from the Figure 3 shows the position tool which allows sorting sectors shortcut and can then further sizing tool. It shows a trade on and industries based on their refine the filters based on their Amazon. The desired entry and recent performance, the average needs. Figure 2 shows these exit are filled in, which can be accumulation or distribution, shortcuts. done by right-clicking a chart at the number of new highs, the the desired entry en exit level. amount of pocket pivots or many Charting The tool requires the available more sector properties. When a Chartmill.com has two charting capital and the percentage risk certain sector is found interesting, modules: the Basic Charts and one wants to take for the trade. clicking it opens the screener the Advanced Charts. Both With these numbers filled in, the with the individual stocks from allow charts in different formats results are shown in the tool. the selected sector. and timeframes with technical In the example, the tool indicators and user annotation. calculates that 72 shares can be Conclusion A nice feature of both basic and bought. If the trades is stopped www.chartmill.com is a site for advanced charts is that you can out, the trader will lose 1.5 per cent technical traders and supports view multiple charts at a time. If of his account or 748.48 dollars. modern technical analysis you enter a comma separated list Note that the tool also warns that techniques. The main feature is of tickers, all your charts will be the total investment is rather big the stock screener, but there are shown.
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