Pro Demo Guide

Table of Contents
Introduction......................................................................................................2
Getting Started...................................................................................................3
Charts....................................................................................................4
List Mgmt Tools........................................................................................5
Analysis .................................................................................................6
Preset ....................................................................................................8
Layouts..................................................................................................11
Chart Suite ..............................................................................................13
How It Works ...................................................................................................14
Hot Trio Display........................................................................................15
Ticker Tape..............................................................................................15
Alerts & Positions......................................................................................17
Sorting & Ranking.....................................................................................17
Headlines and News Stories..........................................................................18
News Search............................................................................................18
MarketPulse Reports...................................................................................19
QuickQuote..............................................................................................20
Viewing Information............................................................................................21
Creating Charts.........................................................................................21
Chart Appearance.......................................................................................24
Point & Click Interface ................................................................................25
Preference Dialogs .....................................................................................27
Drop Lines ..............................................................................................33
AutoRun.................................................................................................33
Quote Monitor Revisited...............................................................................34
Data Management................................................................................................35
Adding & Deleting From Your List..................................................................35
The Dialog...............................................................................................36
Adding an Option Series…............................................................................37
Adding a Series of Futures Contracts….............................................................38
Organizing your List...................................................................................39
Keyboard Data Entry...................................................................................40
Editing Data.............................................................................................40
Deleting Data............................................................................................40
Deleting Securities......................................................................................41
Stock Splits & Futures' Rollovers ...................................................................43
Special Features .................................................................................................45
Layouts..................................................................................................45
Chart Suite ..............................................................................................46
Candle Pattern Identification & Alerts ...............................................................46
Pivot Point Alerts.......................................................................................47
Trade Tracking..........................................................................................47
Automatic Alerts........................................................................................48
Alert Sounds............................................................................................48
Calculator................................................................................................49
Trader's Journal........................................................................................50
Time & Sale.............................................................................................50
Online Versus Offline..................................................................................51
Maintaining Multiple Lists.............................................................................51
Technical Analysis and Charting ..............................................................................52
Introduction to Technical Analysis...................................................................52
Bar Charts and Trend Identification..................................................................54
Pattern Identification...................................................................................58
Gaps and Other Major Reversal Patterns........................................................58
Continuation and Indecision Patterns............................................................61
Japanese Candle Charts................................................................................61
Point & Figure..........................................................................................62
Technical Tools.........................................................................................65
Momentum Studies................................................................................65
Volatility Studies...................................................................................77
Directional Studies.................................................................................80
Trend Studies.......................................................................................84
Volume Studies ....................................................................................91
Reference Section ...............................................................................................97
File Menu................................................................................................97
Edit.......................................................................................................99
Charts....................................................................................................101
Analysis .................................................................................................101
Windows................................................................................................102
List Mgmt ...............................................................................................103
Special...................................................................................................104
Special Keys and Key Combinations................................................................105
Appendix A Glossary..................................................................................107
Appendix B Suggested Reading List.................................................................111
Appendix C Futures Contract Information..........................................................112
Appendix D Index and Other Special Symbols.....................................................113
Appendix E Support ...................................................................................114
Index..............................................................................................................116
Introduction
About Professional Analyst™
Turn Your Mac Into a Professional Trading Station
Pro Analyst brings each market to life with an easy-to-read quote monitor, personal ticker
tape, headline news, and easy-to-follow graphics. Custom layouts "remember" every aspect of
your personal design. With unlimited charts per layout and dozens of indicators per chart, the
combinations are endless. Shift from one layout to another instantly. Pro Analyst will get you
from point A to B to C before the competition has even warmed up.
What good is real-time data if you have to wait to display it? Fast, reliable, precise intraday
charts that update as the market moves, regardless of time frame, allowing you to react as
conditions change. Over 30 technical studies, custom layouts, news, personal ticker tape and
more. Track your choice of symbols, stocks, futures and options, trade by trade, minute by
minute as the action happens, like having your own personal seat on the exchange!
The Sophisticated Simplicity You Need
Designed by traders for traders, Pro Analyst provides utility beyond comparison. Beyond
simple charting, Pro Analyst includes intelligence features like our DayTrader system,
automatic trend identification and candle pattern recognition. No other program with this
much power and sophistication has ever been this easy to set up and use and...Pro Analyst
makes real time really affordable.
Easy to use, fast, reliable and precise, everything you'd expect from a package developed
exclusively for the Macintosh. Whatever trading objectives you'd like to reach, Pro Analyst
puts them firmly within your grasp
Secured Ordering
Order online at http:// www.trendsoft.com or give us a call, 800-825-1852.
How is the Demo Version Different?

The most significant difference is that data in the demo version is static. We recorded data for
a limited period (roughly 30 minutes) then we play back. The software will respond to your
menu selections, keyboard strokes and mouse clicks, which allows you to experience using the
software during the data playback.
We have disabled the ability to: add securities to our demo watch list; add data to the
securities that are included; and edit the data that is included. The full version ships on a CD
containing historical data on thousands of stocks, indices, mutual funds, FOREX data, and
commodities.
The purpose of this demo is not to demonstrate all of Pro Analyst's features and benefits to
you, after all, the full manual contains over 150 pages. We believe we can demonstrate that
sophisticated analysis software can be easy to learn and use. We know, if you to take that first
step and order Pro Analyst, you will become a more successful trader and the longer you
use our software the more you will appreciate its benefits. That's why we back all of our
products with a 30 day, money back guarantee.
3
1
Getting Started
A Tour
The purpose of this tour is to demonstrate the mechanics of using Pro Analyst on the
simplest level as well as highlighting some of our unique features. Additional features are
covered in detail elsewhere in this guide. Please feel free to call or e-mail if you have questions
or comments.
We have included sample data for you to work with in this tour.
During this tour you will learn to…
Create simple charts.
Apply analysis tools to the charts.
Customize Charts.
Create and use custom layouts.
Double click on the Pro Analyst icon to launch the application. The demo version of Pro
Analyst will open with a welcome window. When you close the window, it will automatically
open our Watch List which looks something like this...
4
The Watch List contains reference to multiple securities of differing types (i.e., indices, stocks
and futures). The data contained in these files is real, however, it is not current. This insures
that the examples you see on your screen will be virtually the same as those shown in this
guide.
Charts
Charts are a tool to analyze an instrument's performance over time. Pro Analyst can display
that information in a variety of different forms: bar; line; candle; and point & figure. Most of
you are familiar with bar and candle charts. The time frame of a chart refers to the amount of
time each bar or candle represents. A daily chart can cover months of market activity where
each point in the chart represents one day.
Under the Charts menu, you will see most of these charts listed. During this tour we will
create Bar and Candle charts. Double click on the symbol DJI in the Watch List which should
open a 5 minute bar chart of the Dow Jones Industrials. Again, the chart covers multiple days
where each bar represents 5 minutes of prices.
5
Along the top of the chart is a legend displaying the date and numbers relating to the last bar
in the chart. Point and click on any other bar. The legend at the top of the chart will change
to reflect your selection. Just beneath the legend is a box displaying the current price, the net
change and the high, low and opening prices of the day. The type and time-frame of the chart
and the symbol appear in the window title.
Along the bottom of the chart is a ticker tape which displays quotes received for this symbol.
To the right of the tape is a control that allows you to change the chart type. Virtually all of
the display characteristics of our charts are controllable by you. The default view in the demo
is a 5 minute bar chart but you can change it to an hourly candle chart or a daily line chart.
While the chart was drawing, Pro Analyst was busy. Take a peek under the Windows
menu. The last menu item is new and contains a description of the chart. You can have
dozens of charts, all in separate windows or you can reuse a window to view a different
security. As new windows are created, their respective menu item will be added to the
Windows menu. When selected, that window will be brought to the front. When you close a
window, its memory is released and the menu item is removed.
List Mgmt Tools

Lets learn another benefit by example... press the down arrow on your keyboard or select
Next from the List Mgmt menu. Our chart will change from the DJI to the COMPX (i.e., the
Nasdaq Composite). Press the up arrow or select Previous from the List Mgmt menu and
our chart changes back to the DJI. These List Mgmt features allow you to scroll forwards and
6
backwards through your List of securities. Our Watch List is not large enough to demonstrate
the real value of our sorting and ranking features, however, as your List of securities grows,
this feature will become extremely valuable. For now, pull down the Sort & Rank menus
(both are located in the List Mgmt menu) to see the categories. Pro Analyst can change the
ordering of your List based on all of these criteria. We bring this up now because the Next
and Previous functions work with the ordering of the List. As you become familiar with the
variety of features at your fingertips, the flexibility and functionality of our design will become
apparent. As you learn to use Pro Analyst you will also discover that there are at least two
ways to do just about everything. For example, you can sort and rank your List by clicking
on the column headings in the List display. You can also move a single security any place in
the List simply by dragging its symbol with your mouse.
Analysis
Lets take a look at the Analysis menu. Since these tools require a chart to be used, they will
appear gray unless a chart is the front window. While our chart was drawing, Pro Analyst
turned on all the menu items in this menu. Each of the tools in this menu was designed to
assist you in analyzing the various charts that Pro Analyst can create. A description of how
to use these tools is included in our manual which contains a primer on technical analysis. For
now, our purpose is to demonstrate how easy it is to add and remove these studies from your
charts.
Select Stochastics from the Analysis menu. Stochastics is a study designed to measure the
momentum of price movement. Weakening momentum can point to an impending reversal in
price direction, like a car going up a hill. Even though the car continues to move forward we
might be concerned if it can make it to the top if its speed is decreasing.
Technical studies, in our software, are overlaid directly on or below the charts and do not use
a separate window. The front (or active) window is used for displaying these studies. We
designed the software this way because it makes it easier to compare the study to price bars
of the chart. Your chart should redraw allowing space for Stochastics underneath. A new
color coded legend appears directly above the study. Again, clicking on any point in the chart
will adjust the legend to reference your click.
Selections in the Analysis menu above the separator line are added below the chart. The
balance of the Analysis tools are overlaid directly on the body of the chart. Select Trend from
the Analysis menu. Your chart should now appear as follows…
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While we are on the subject of comparing the study to the price…hold the control key down
and drag your mouse across the chart. The cursor will expand to a giant cross hair, and the
price/indicator legends will update to reflect the placement of the cursor. Drop lines
(horizontal and vertical) will be left on the chart if the mouse button is released while the
cursor is to the left of the scale (i.e., y axis). These lines are automatically stored when you
close the chart and may be removed all at once or one set at a time. To remove all drop lines
with one command, hold the Control key down and select Clear from the Edit menu.
To remove an indicator, re-select its menu item from the Analysis menu. Try this with
Stochastics… re-select Stochastics from the Analysis menu. The chart should redraw
without Stochastics. You can also preset your charts to initially draw with your choice of
analysis tools. Lets see how this works.
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Preset
Default Studies (Edit menu) allows you to preset which, if any, technical tools will be
displayed when you request a specific chart time frame. You can always add and subtract
tools from a chart as we have demonstrated. This preference panel allows you to determine
how the initial chart will draw. As you develop favorite indicators, this feature will become a
tremendous time saver. Virtually every facet of your charts
Select MACD and Averages, then press OK. MACD is another study used for measuring
momentum. It is an acronym for Moving Average Convergence Divergence (no wonder we
use an acronym). Moving averages are a simple mathematical way of measuring the direction
of prices. By comparing multiple averages of different time periods we can determine if
momentum is growing or declining. This is the theory behind MACD.
Select Watch List Demo from the Windows menu to bring our Quote Monitor to the front.
Press the down arrow on your keyboard until SPX is selected. Select Daily from the Charts
menu. A Daily bar chart of the SPX, with moving averages and MACD will appear.
In the lower right corner of the chart is a popup menu control that changes the chart view.
Select Candle from the control to switch views. The chart will redraw with the same
indicators.
Click on this symbol in the lower left of the chart... . Candle charts look better if there is a
little more room between data points. Now move your cursor to the area where the x and y
9
axis of the chart meet. The cursor will change to a light bulb (see the picture below) then click
your mouse. This turns on our candle pattern ID.
Candles that identify patterns are "painted" in a offsetting color. Hold the mouse down on any
of these candles to read a description of the pattern and its meaning. Page numbers are a
reference to Steve Nison's book on Candlestick interpretation. Pro Analyst can identify 26
key candle patterns.
We can also add and/or remove multiple indicators once the initial chart has drawn. Select
Weekly from the Charts menu. Since the top window is a daily chart, Pro Analyst assumes
you want the new chart to be the same symbol. The new chart appears in a new window.
Move your cursor horizontally along the date line located at the bottom of the chart.
Note how the cursor changes. Clicking on different points within the date line will allow you
to change the appearance and/or content of the chart. The cursors change to help you
navigate and remember where to click. We call this our point and click interface. More about
this in a minute. When the cursor is in the form of a triangle or delta ( ), click your mouse. A
dialog will appear that allows you to change the indicators displayed on the chart. The main
difference between this dialog and the Preset Chart dialog discussed previously is that these
changes may apply to the active chart only. You should also note that you can change chart
parameters for indicators that are not displayed.
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Press Cancel.
As you move the cursor around the graph you will notice that the cursor changes to indicate
the function of our point & click interface.
Clicking with this cursor active displays the information of that bar or candle at the top of
the graph. This cursor should appear in the main body of the chart as well as the main
body of sub studies (i.e., Stochastics).
Clicking with this cursor active scrolls the chart backwards in accordance with the what
you have selected in the Program Defaults dialog. This cursor should appear in far left
corner of the date line.
Clicking with this cursor active scrolls the chart forwards in accordance with the what you
have selected in the Program Defaults dialog. This cursor should appear in far right corner
of the date line.
Clicking with this cursor active allows you to change the start or end date of the active
chart. This cursor should appear towards the right or left side of the date line.
Clicking with this cursor active allows you to change zoom levels. This cursor should
appear left of center on the date line.
Clicking with this cursor active allows you to change indicators, zoom levels, etc., through
the Preset Chart Dialog. This cursor should appear right of center on the date line.
Clicking with this cursor active allows you to change upper and lower Y-axis scaling. This
cursor should appear in the scale area of the main chart.
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Clicking with this cursor active allows you to change indicator smoothing. This cursor
should appear in the scale area of the indicator.
Clicking with this cursor active allows you to edit the data used to create the chart. This
cursor should appear above the main body of the chart on the information line.
Pro Analyst's graphic windows may be sized, placed and zoomed through normal Macintosh
controls. In addition, we have defined two controls that operate on multiple-windows as menu
items. Lets see how this works. Select Tile from the Windows menu. The two graphs will re-
draw as a split screen. Tile splits the screen according to the number of active windows. In this
case we have two, so each Window occupies half of the screen. Either chart may be made
active by clicking on the window or by selection from the Windows menu. Now select
Stack from the Windows menu. Window placement and size are changed to allow
maximum viewing area while allowing enough space to click on non-active windows. Again,
the number of graphic windows will affect size and placement.
Select A Tour List from the Windows menu. This brings the List display back to the front.
Select Apple from within the List then select Bar - Daily from the Charts menu. After the
chart draws, select Bar - Weekly again.
We have now created four distinct charts. A peek under the Windows menu will remind you
which charts are in which window. While you're here, select Tile. This time your screen is
split four ways. Click in the Green Zoom control of any of the four windows. The selected
window will redraw occupying the full screen. Click the Zoom control again and the Window
redraws in its original size and placement.
As you close each window, Analyst will store the size and placement of the window based on
the security and the content of the window.
Layouts
As you use the software you are likely to discover that you prefer to view similar securities in
a similar way from day to day. Our custom layout and chart suite features were designed to
allow you to accomplish this faster and more conveniently. Lets take a look at how these
work. Select Save Layout from the Windows menu. The default Save dialog will look like
this...
Click on the to expand the default view to...
12
Just like any other file you create on your Macintosh, layouts must have a unique name.
Name the layout My First and press Save. You have just created your first layout. Just like
our Lists, layouts do not contain the charts or even the data necessary to create them. The
layout files store aliases of the data file or files used to create the charts. This way, as you
update those files with newer data, the layouts will update as well. The layouts also store other
window content information like the type and time frame of the charts and what, if any
analysis studies were applied to the chart. Finally, the layouts store the windows size and
placement on the screen at the time they were created.
Using your layouts is even easier than creating them. Lets clear our screen and imagine that
this is a new day. We can close all the open windows at once by using the shift and the option
keys to modify the Close Window command. Hold the Shift and Option keys down. The
fourth menu item under the File menu reads Close All. Select this menu item. All open
windows, except the List, will close. The Tour List window should now be the front window.
Menu Modifiers (such as the Shift and Option keys) are not recognized unless the key or
keys are down before pulling down the menu.
Select Default Studies… from the Edit menu. Turn off all of the indicators and press OK.
Our daily charts are now set to open without any analysis tools. Now, lets see what happens
when we open our Layout.
Select Use Layout from the Windows menu. Double click on My First. The four charts
will open, with the same analysis, in the same position and size. These instructions were stored
as part of the layout.
The number of layouts is limited only by your disk space and your ability to remember why
you created the layout to begin with. With that in mind, descriptive names may become very
13
important (e.g., Metals Daily). No data is stored in the layout files. If you have created too
many, simply drag them to the trash (from the Finder).
As you open Layouts, they are added to the Recent Layouts menu that appears directly
below Use Layout in the Windows menu. This makes switching from layout to layout faster
and simpler.
Chart Suite
The Chart Suite is a layout without security names so that it can be used on any symbol in
your List with a single keystroke or menu selection.
To use the Chart Suite, select a symbol in your List, then select Chart Suite from the Charts
menu or press =
The default Chart Suite brings up a daily, weekly and monthly chart. To change the suite,
open the charts you want included in the suite (all charts must be based on one symbol), then
select Chart Suite from the charts menu while the charts are the front windows. Analyst will
confirm that you want to re-define the suite based on the current charts. You can redefine the
suite as many times as you want.
Bring the Apple Bar Daily chart to the front by selecting it from the Windows menu. Move
your cursor horizontally along the date line area of the chart until the cursor changes to a
magnifying glass. Click the mouse. A small window will appear in the lower left portion of the
chart showing the current zoom level. Zoom Levels are one way to control the amount of
data displayed in a chart. Level 1 is the most compressed. Higher levels display less data with
more detail. The maximum zoom will vary with the size of the window. Candle charts look
best on a zoom level of 5 or 6. Enter a higher or lower number and press return.
In addition to changing zoom levels, Analyst can zoom-in on a particular area of the chart.
Hold the Shift and Option keys down and drag the mouse over the area of the chart you
would like to zoom in on. When you release the mouse, a new chart will open with just that
area enlarged.
This concludes our tour. Feel free to experiment with other features of the program using the
Tour data. Don't worry about making mistakes. You can always re-download the demo. And
don't forget... we're here 9 a.m. to 6 p.m. every day the markets are open. Please drop us an
e-mail, support@trendsoft.com or give us a call if you need help.
The balance of this guide contains selected segments from the Pro Analyst manual. Not all
features described are available in the demo version.
14
2
How It Works
Overview
Once connected, Pro Analyst transmits your List of securities to the server. Every trade that
occurs on these securities is then sent to the program. What we do with this information and
how you can utilize it is the intent of this chapter.
As the information arrives, Pro Analyst updates the quote monitor, the ticker tape, checks
your alerts and stores the information for charting and analysis. We begin by discussing the
monitor...
The dart (delta), appearing to the left of the time, indicates the symbol most recently updated.
All times are converted to your local time (assuming your date and time control panel is set
up properly). This is the time of the trade, not the time it was reported.
The next column of numbers is the price of the last trade. If the last trade price is down from
yesterday's close, the entire row is displayed in red. Columns that match the last price are
displayed in bold text. A directional arrow appears in between the symbol and the last price
indicating whether the last trade was up, down or the same (no arrow) as the previous trade.
These first three columns, time, symbol and price, are locked. All other columns can be
moved to match your needs.
The column labeled ± represents the net change from the previous day's close. It is possible,
even likely, that a security will be trading above its open and still be down for the day.
The next three columns are straight forward... the High and Low represent the highest price
and lowest price traded within the current day. The Open represents the first trade. These
15
fields will appear in bold when they match the last trade. This makes it easy to spot securities
trading at the high or low of the day.
The column labeled Vol contains the total volume of all trades for that security today in
hundreds. Pit-traded futures' markets do not report intraday trading volumes so this column
will contain yesterday's total volume for the specific contract.
Bid and Ask contain the best offers to buy and sell. The respective size of the offers appears in
the columns labeled BSz and ASz. Again, these numbers are in hundreds so a BSz of 4
means there is an offer to buy 400 shares at that bid. The Size column will reflect the number
of shares (in hundreds) of the last trade.
The last column, Rank, will only contain information when you have asked the program to
rank your List by some criteria. The use of this column will be covered later in this chapter.
Hot Trio Display

Inspired by the market index display on CNBC, our "Hot Trio" window (bottom right corner
of your main screen) displays the net change of the top three symbols in your List. The top
three securities are determined when we log on to the server. To affect changes in the middle
of a session, log off, then log back on.
The Hot Trio window, and the ticker tape can be "torn off" and placed in other places on
your monitor where they won't be covered up by or interfere with other programs. Place
your cursor over either display, hold the mouse down and drag. These displays will
automatically return to their default positions whenever you log on to the server.
Ticker Tape
At the bottom of your main screen is a split ticker tape window. Last trade and trade size are
scrolled continuously as they are received. You can slow the ticker down using several
different methods... by turning off groups of securities. For example, you can exclude indices
and options. You can also turn your ticker tape into a block ticker by defining minimum
volumes for stocks and options to appear in the ticker tape. Quotes that are excluded from the
ticker tape are still displayed in the quote monitor and stored for analysis. Changing the ticker
tape set up affects the tape only. Prices that match the high or the low of the day appear in
bold. The price of securities trading down for the day appear in red.
To redefine the ticker tape, select Ticker Tape from the Edit menu. In our example, we
have instructed the program to exclude all quotes that are not stocks and to include only
trades of at least 5000 shares (50 x 100). Alerts & Positions Only, would send quotes to
the ticker tape where you have indicated that you have a position or you have set alerts.
Beneath these settings is a menu for defining the default position of the ticker tape. You can
have it at the bottom of your screen or the top of the screen. Dock Aware instructs the
program to place the ticker tape where the dock will not interfere with it. We recommend
setting the Dock to automatically hide and show which keeps it handy but not intruding on
our program (or any others). You'll find this in the Dock Preferences under your Apple
menu.
16
The lower portion of this dialog allows you to define specific display preferences for the Quote
Monitor. Show Darts displays a dart (delta) indicating the most recent quote received.
Background and Alt Background color choices allow you to set alternating background colors
to help distinguish one row from another. You can also change the default foreground colors
used for distinguishing up and down quotes.
The ticker tape, and the Hot Trio window can be "torn off" and placed in other places on
your monitor where they won't be covered up by or interfere with other programs. Place
your cursor over either display, hold the mouse down and drag. These displays will
automatically return to their default positions whenever you log on to the server.
17
Alerts & Positions
Since we let the cat out of the bag...to set alerts and/or inform the program of your current
position, select a security in your List, then select Alerts from the Edit menu. Fill-in your
alerts and/or current position then press Next to move to the next security in your List or
Done if you are finished.
In our example, we have instructed the

program to alert us if Alcoa trades below 18
and/or if it trades above 25. When Alcoa
trades outside of this range, the alert will be
displayed in the upper portion of the ticker
tape, an audible alert will be triggered in
your chosen form and the alert will be reset
to zero. Alerts that are not triggered are
stored and remain active for subsequent
trading days.
We have also indicated that we are holding

1000 shares which we bought at 19. This
information can be used to display real-time
profit/loss updates. To cancel or close out a
position, select No Trade from the pop-up
menu in this window and/or zero the
number of shares.
Sorting & Ranking

Our sorting and ranking capabilities allow you to quickly organize your List in a variety of
ways. These tools have their own sub-menus under the List Mgmt menu and can also be
accessed by holding down your mouse on most of the column headings of your List. The
Rank column label contains a pop-up menu as well. Some ranking tools will produce a new
calculation to be displayed in the Rank column. For example, as mentioned in the previous
section, you can rank your List by position size or profits. These calculations will appear in the
Rank column and update on a real-time basis. Sorting methods that do not use the Rank
column, such as Last Saved, have no effect on the Rank column. This allows you to rank by
profit, then re-sort by the last saved order without losing the real-time calculation of profit or
loss. Clicking on the far left column heading (Time) will sort by the last saved.
Calculations that update real-time include: percent net change (% Net Change), relationship
to 12 month high and low ( YTDH, YTDL), price-earning ratio (P/E Ratio), profit or loss
(Profits) and the size of your position (Size).
18
Individual Placement
You can also drag and drop individual securities to determine their exact placement within the
List. Simply hold your mouse down on the symbol you want to move, then drag the gray
rectangular outline on top of any other symbol in the List and release.
Headlines and News Stories

Scrolling, real-time headlines are available from the server on demand. To start the headline
feature, select Headlines from the Special menu (or press F11). This will open a new
window titled Headline
News and activate the
receipt of headlines.
As new headlines are
received, they are
added to the top of the
window. Times
accompanying each
headline are New
York time. This is one
of the few areas in the
program where times
are not converted to
your local time.
Each headline also
contains an identifying
5 digit number. To
read the complete
story, double click on
the identifying number
or highlight it. This
will open a new
window containing the
full story.
The contents of full
news story windows
and headline news
windows can be save
as text files that can be
opened offline by any
text editor.
News Search
Did one of your stocks make a surprising move? Select the symbol in your List, then select
from the and Pro Analyst will request today's headlines plus
the last 20 historical headlines related to that symbol. The headlines will be displayed in a new
window.
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MarketPulse Reports
MarketPulse is a real-time service supplying information about market leaders and market
statistics. The MarketPulse reports are available for each U.S. stock exchange. Reports are
also available relating to options, currencies, world markets and futures. There are almost 100
separate reports available. To see current reports, select from the MarketPulse sub menu
under the Special menu. The program will display the requested reports in the MarketPulse
window. The following Forex currency report is part of the Futures page.
Market Pulse: Spot Forex Prices as of 1:47pm 11/26/00 Page: 901
Description Tkr $s_per per_$ Description Tkr $s_per per_$
-------------- ----- ------ ------ -------------- ----- ------ ------
Australian $ CU.AD .52320 1.9113 Chech Koruna CU.CZ 40.810 40.810
Belgian Franc CU.BF .02078 48.132 Eu Spot Rate CU.EU .83810 1.1931
British Pound CU.BP 1.4002 .71418 greek Drachma CU.GR 406.04 406.04
Canadian $ CU.CD .64986 1.5388 Irish Punt CU.IP .94000 .94000
Danish Krone CU.DK .11243 8.8942 Mauritius CU.MR .00000 .00000
Deutschemark CU.DM .42852 2.3336 malaysia Ring CU.MY 3.8000 3.8000
Dutch Guilder CU.DG .38031 2.6294 Portugal Escud CU.PT 239.21 239.21
Finnish Markka CU.FM 7.0900 .14104 ARGENTINA CU.AP 1.0000 1.0000
French Franc CU.FR .12777 7.8267 HUNGARY CU.HU .00317 315.42
Hong Kong $ CU.HK .12821 7.7998 INDONESIA CU.ID 9455.0 .00011
Italian Lira CU.IL .00043 2310.3 POLAND CU.PL .22026 4.5400
Japanese Yen CU.JY .00899 111.28 THAILAND CU.TH .02254 44.360
Mexican Peso CU.MP .10638 9.4000 VENEZUELA CU.VE .00144 695.90
New Zealand $ CU.NZ 2.5006 .39990 KOREA CU.KO .00084 1189.5
Norwegian Kron CU.NK .10453 9.5663 PHILIPPINES CU.PH .02026 49.370
Singapore $ CU.SD .56863 1.7586 TAIWAN CU.TA .03043 32.860
S African Rand CU.AR .12780 7.8250 TURKEY CU.TU .33333 3.0000
Spanish Peseta CU.SP .00504 198.53
Swedish Krona CU.SK .09661 10.350
Swiss Franc CU.SF .55319 1.8077
MarketPulse reports are produced on a real-time basis, however, they do not update
continuously. To update the report, request it anew from the Special menu.
You can change the reports we will request

by selecting MarketPulse from the Edit
menu. We have chosen Most Up %, Most
Down % and % Volume Change as the
defaults for each stock exchange. Select the
exchange from the popup menu at the top of
the dialog
20
.
QuickQuote
The QuickQuote feature allows you to view a detailed quote on a specific symbol, whether or
not that symbol is contained in your current List. To activate the feature, select QuickQuote
from the Special menu (or press F10). Enter a symbol and press return.
Some of this information is not available for index and equity options, however, other
information like open interest, strike price and days remaining to expiration are. Pro Analyst
will automatically adjust the QuickQuote window when you enter an option symbol.
21
3
Viewing Information
Quotes, Charts and Analytics
Creating Charts
Pro Analyst is a powerful, intraday, charting and technical analysis program. The program
can create traditional bar, Japanese candle, point & figures and line charts in virtually any time
frame from tick to monthly. To simplify the interface and operation of the program, the most
commonly needed time frames are available as choices under the Charts menu. When
selected, the program will create the initial view in the default chart type (i.e., bar, candle, p&f,
or line). Like most of the programs defaults, the default view is definable. Once the chart is
drawn, you can change virtually all characteristics of the chart including the time frame, the
chart type, analytics, colors, patterns, line thickness etc.
By example... to create a daily chart, select a symbol in the quote monitor, then select Daily
from Charts menu. In the lower right of the chart is a control that allows you to change the
view from Bar to Candle to Line to P&F.
Along the top of the chart is a legend displaying the date and numbers relating to the last bar
in the chart. Point & click on any other bar or candle. The legend at the top of the chart will
change to reflect your selection.
The new bar chart was drawn in Window 1. Take a peek under the Windows menu. The last
menu item is new and contains an abbreviated description of the chart. Each chart is created
in a new window, limited only by the amount of memory allocated to Pro Analyst. As
windows are assigned, their respective menu item will be added to the Windows menu. When
selected, that window will be brought to the front. When you close a window, its memory is
released and the menu item is removed.
Pull down the Analysis menu. While the chart was drawing, Pro Analyst turned on all the
menu items in this menu. Each of the tools in this menu was designed to assist you in
analyzing the various charts that Pro Analyst can create. A description of how to use these
tools is included later in this manual. For now, our purpose is to demonstrate how easy it is to
add these studies to your charts.
22
Select Stochastics from the Analysis menu. Stochastics is a study designed to measure the
momentum of price movement. Weakening momentum can point to an impending reversal in
price direction, like a car going up a hill. Even though the car continues to move forward we
might be concerned if it can make it to the top if its speed is decreasing.
Technical studies, in our software, are overlaid directly on or below the charts and do not use
a separate window. The front (or active) window is used for displaying these studies. We
designed the software this way because it makes it easier to compare the study to price bars
of the chart. Your chart should re-draw allowing space for Stochastics underneath. A new
color coded legend appears directly above the study.
The selections in the Analysis menu above the separator line are added below the chart with
less and less space allotted to the chart body. The balance of the Analysis tools are overlaid
directly on the body of the chart. When the chart is finished drawing, select Trend from the
Analysis menu.
15 minute chart with trend lines and stochastics
While we are on the subject of comparing the study to the price…hold the control key down
and drag your mouse across the chart. The cursor will expand to a giant cross hair, and the
price/indicator legends will update to reflect the placement of the cursor. Drop lines
(horizontal and vertical) will be left on the chart if the mouse button is released while the
cursor is to the left of the scale. These lines are automatically stored when you close the chart
and may be removed all at once or one set at a time. To remove drop lines, one at a time,
hold the Option and the Control key down and click on the lines to be removed. To remove
all drop lines with one command, hold the Control key down and select Clear from the Edit
menu.
23
To remove an indicator, re-select its menu item from the Analysis menu. Try this with
Stochastics… re-select Stochastics from the Analysis menu. The chart should redraw
without Stochastics. Each time-frame of chart can also be preset to initially draw with your
choice of analysis tools.
Intraday charts, that is, charts where each bar or candle represents less than one day, are only
available when you are online. 1 minute through hourly charts will contain multiple days of
data if the data is available. Each day will be separated by a vertical dotted line.
Intraday charts where each bar or candle represents a multiple of 5 minutes (e.g., 10 min, 15
min, et al) are created using data that is stored on your hard disk. When you launch the
program after the markets open the program will automatically request missing data. You can
not create 1 minute charts while your intraday data is updating. You should also try not to
quit during this process. The program will notify you when the update is complete.
The next section of the manual will teach you how to adjust the charts before and after they
are drawn to match your personal preferences.
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Chart Appearance
Chart appearance is very flexible in Pro Analyst. Scaling, zoom level (i.e., chart spacing),
study smoothing, colors, line thickness, even default studies. Beauty is in the eye of the
beholder. When you know how you want to display your charts, Pro Analyst will let you
lock in your preferences for each time-frame of chart. Until then, the program will use default
settings. In other words, you don't need to be an expert to create useful charts.
Customizing of charts and analysis tools is available through several distinct features: our Set
Up dialogs, our point & click interface, our double-click interface and chart controls.
Chart Controls
Under each of the charts you see this control
From left to right;
Zoom out, zoom in, controlled zoom, time & sale and the calculator.
Zoom out and zoom in alter the amount of data displayed in the chart. Zooming in reduces
the amount of space between each point on the chart allowing more data to be displayed.
Zooming out adds more space between bars or candles.
Controlled zoom is a variation of our drag and zoom feature. Clicking on that portion of the
control will place a selection rectangle on the chart which can then be resized or moved
through normal dragging with the mouse. Drag the rectangle right or left to increase or
decrease the size of the rectangle. Drag from inside the rectangle to move it to the right or left
without changing its size. When the rectangle covers the horizontal area of the chart you want
to zoom in on, press return or double click inside the rectangle and Pro Analyst will create a
new window with the selected data. Click outside the rectangle to remove it without creating
a new chart. The new chart will update live, like any other chart, if you are online. A delta
symbol is added to the end of the window title to remind you that the data may not be
continuous.
Time & Sale converts the chart to a mini-spreadsheet where the numbers from each time
period are displayed in rows for review and/or editing. The control changes to . Clicking
on the new control will convert the time & sale display back to a chart.
In the lower right of the chart you'll find a popup menu that allows you to quickly switch the
chart view (e.g., change from bar to candle).
25
Point & Click Interface
Clicking the mouse on any bar, candle or point on a chart will display the data (date, time,
volume, open, high, low, and close) reflected in that bar. These numbers are displayed directly
above the chart. Moving average and analysis study values are also displayed if they appear
on the chart.
Figure 5
Clicking in other areas of the chart (see Figure 5) will allow temporary changes in chart
appearance. As you move the cursor around the graph you will notice that the cursor changes
to indicate the function of our Point & Click interface.
have selected in the Program Defaults for end-of-day charts. On intraday charts it will
remove one day of data for each click. This cursor should appear in far right corner of the
date line.
you have selected in the Program Defaults dialog for end-of-day charts. On intraday charts
it will restore days removed from the chart (see shift right above). This cursor should
appear in far left corner of the date line.
26
chart. This cursor should appear towards the right or left side of the date line on daily,
weekly and monthly charts.
Clicking with this cursor active allows you to change the time-frame of the chart (e.g. turn
a 5 minute chart into a 10 minute chart).This cursor should appear towards the right or left
side of the time line on 1 minute to 60 minute charts..
Clicking with this cursor active allows you to set alerts and/or positions. This cursor
appears in the upper right. It is the same as selecting Alerts from the Edit menu.
Clicking with this cursor active turns on Candle Pattern analysis and Candle Pattern alerts.
This cursor appears to the right of the date line or time line on Candle Charts.
The mouse is also used for four other important features…

1. Hold the Shift key down while dragging your mouse to draw trend lines. Trend lines are
automatically stored when you close the chart window. To remove trend lines, one at a
time, hold the Shift and the Control key down and click on the line to be removed. To
remove all trend lines with one command, hold the Shift key down and select Clear from
the Edit menu.
2. Hold the Control key down and drag the mouse. The cursor will change to a giant cross
hair, stretching from top to bottom and left to right. As you move the cursor across the
chart, the data reflected by that point in the chart will update. Horizontal and vertical drop
lines will be drawn on release if the cursor is still in the body of the chart. The resulting
drop lines are automatically stored when you close the chart window. To remove drop
lines, one at a time, hold the Option and the Control key down and click on the lines to
be removed. To remove all drop lines with one command, hold the Control key down
and select Clear from the Edit menu.
3. Hold the Shift and Option keys down and drag your mouse around an area of the chart
body to zoom in on that section of the chart.
27
Preference Dialogs
There are several preference dialogs that affect charting and analysis...
The Study Smoothings menu selection (Edit menu) will store your personal preferences for
each study in our technical toolbox. Smoothings are stored independently for each time-frame
of chart.
You may set up to three moving averages. To turn a moving average off, set it to zero. In
addition to selecting the period, you can choose Simple, Exponential or Weighted.
28
Preset
Default Studies (Edit menu) allows you to preset which, if any, technical tools will be
displayed when you request a specific chart time frame. You can always add and subtract
tools from a chart. This dialog affects how the initial chart will draw. The zoom level changes
the amount of space between each bar or candle on the chart. Higher numbers put more
space between bars.
29
Program Defaults
This dialog allows you to define global settings that affect all charts. Starting at the top...
When you double click on a symbol in the Quote Monitor, the default chart type and time
frame will be opened. The default type of chart (i.e., Bar, candle, line) is also used to determine
the type of chart we will open when you make menu selections from the charts menu. The
Font Size affects the legends of the chart.
When we initially draw a chart, we leave some blank space on the right side of the chart. This
next field allows you to define how many periods (e.g., days) will be left blank.
The next popup allows you to define how much we will scroll a chart backwards or forwards
when you click in the corners of the chart. This setting affects daily, weekly and monthly
charts only. Intraday charts automatically remove a single day from the chart when you click
on the right corner and restore the chart to its original view when you click on the left corner.
Two of the studies, MACD and Rate of Change can be set to default to histogram or line
charts when they are initially drawn. Both indicators can be toggled to the alternate view after
they are drawn.
The next button turns our pivot point alert system on or off. We'll talk about the pivot alert
system later.
30
Double Click Interface
Our Double Click interface allows deep control over portions of the chart. Double click on
any study that displays under a chart (e.g., stochastics).
The following dialog will appear...
This dialog allows you to control the smoothing, patterns, color choices and line thickness of
whatever oscillator you double clicked on. In the case of Stochastics, we can also alter the
formulation of the indicator to be Simple or Exponential.
31
Double click on the main body of the chart.
The following dialog will appear...
This dialog allows you to control the upper and lower scale, grid spacing, patterns, color
choices and line thickness of the main chart. The popup menu at the top of the dialog will
allow similar changes to indicators overlaid on top of the chart. Menu items for indicators that
are not currently on the chart are grayed.
32
Analysis tools that depend on a the identification of a significant high and low (i.e., fibonacci,
Gann, speedlines, and trident) offer the additional ability to change the date on which these
two significant numbers were achieved.
33
Use the up and down arrow controls to change the dates. When you release the mouse, the
significant high or low will be updated in the dialog. You can also type in any valid date
Drop Lines
Hold the Control key down and drag the mouse. The cursor will change to a giant cross hair,
stretching from top to bottom and left to right. As you move the cursor across the chart, the
data reflected by that point in the chart will update. Horizontal and vertical drop lines will be
drawn on release if the cursor is still in the body of the chart. The resulting drop lines are
automatically stored when you close the chart window. To remove drop lines, one at a time,
hold the Option and the Control key down and click on the lines to be removed. To remove
all drop lines with one command, hold the Control key down and select Clear from the Edit
menu.
AutoRun
Our AutoRun feature allows you to view the selected chart for each item in your List
sequentially. To use this function, create a chart or charts. Select AutoRun from the List
Mgmt menu. Fill-in the AutoRun timer dialog and press Begin. Pro Analyst will re-create
the chart with the next symbol in the List every n seconds. The Next and Previous menu
items (and up and down keyboard arrows) may be used to override the timer. These keys and
menus also work when AutoRun is not active. In other words, you can AutoRun with
unlimited time to review each chart. AutoRun may be canceled by pressing . or by
selecting AutoRun again.
Whether you are using AutoRun or the arrow keys to shift from chart to chart, all charts are
created in the current list order adding another benefit to our sorting and ranking routines.
34
Quote Monitor Revisited
The Quote Monitor is always updating (as long as we are online), even if you close the
window. To re-open the Quote Monitor after you have closed it, select Quote Monitor from
the Windows menu.
The quote monitor will frequently become the center of your attention. You will find that
your eyes gravitate to columns that are more important to the way you trade. Adjusting
which columns appear where and how wide they are will help you focus. But first, a
reminder, clicking on column titles will sort your list. To resize and move columns you will be
dragging your mouse which means you will be holding the mouse button down while you
move it.
To move a column, hold your mouse down on the column title and drag it right or left. As
you drag, an outline of the column will move with the mouse. Drag it where you would like it
and let go of the mouse. The first three columns are locked. They can not be moved nor can
other columns be moved over them.
To size a column, place your mouse over the line separating the columns until the cursor
looks like this... then drag the column wider or narrower.
You can also change the order and size of all columns through our Quote Monitor Set-up
dialog. To activate this feature, hold your shift key down and click on any of the column titles.
35
4
Data Management
Lists, Files and Data Entry
Adding & Deleting From Your List

Pro Analyst works with groups of data files we call Lists. Lists can range in size from one to
five hundred symbols. The Pro Analyst CD you received contains historical data on
thousands of stocks, futures, mutual funds and indices. Check the CD first as these files
contain over 5 years of history. Copy the files from the CD to the Data folder inside the
Trendsetter folder of your hard disk. Then use Modify… to add these securities to an
existing List or New… to put them in a fresh List. You can add securities to your List while
you are online, however, Modify… and New… are only available when you are offline.
To add your own securities that are not on our CD or when you are online…
Step 1 Select Add Security from the List Mgmt menu.
Step 2 The screen will set-up for you to add to the existing list. Enter a security pressing
Tab between fields. Press Next if you have more securities to enter or Done if this
is the last one. If you are online, Pro Analyst will immediately request today's
intraday data.
Step 3 To correct errors in symbol or any of the other information you entered, click on
the line (in your Quote Monitor) that needs editing, then select Modify Security
from the List Mgmt menu. Correct those fields in error, then press Done.
Step 4 After the intraday histories have been received, select Update Histories from the
File menu to retrieve historical end-of-day data on the new securities you entered.
Another feature of our QuickQuote...

If the QuickQuote window is the front window when you select Add Security, information
from the QuickQuote window will be transferred to the Add Security Dialog. Confirm that
the information matches your desired input before accepting.
36
The Dialog
Security Name
A file is created to store historical data for each security you add to the List, therefore,
all security names must be unique. If your List will contain Dec Corn and Mar Corn,
you can not call them both Corn.
Symbol
Common Stock and Mutual Fund symbols will be same as those used by the exchange
or listed in Investor's Daily or your local newspaper. Futures' symbols are listed in
Appendix C. The most popular Index symbols may be found in Appendix E.
Security Type
Stock, Future, Index, Mutual Fund or Option.
Tick
This is the minimum price fluctuation. Pro Analyst will set the tick for you if it
recognizes the symbol, security type combination. Either way, you should confirm that
the tick is correct. Indexes and mutual funds are usually .01. Futures vary, see
Appendix C of this manual for a list. Stocks should be .125 (1/8) if you want fractional
displays or .01 if you want to view their prices in decimal form.
Display Format
The Decimal and Fractions selections affect output display only. Most areas of the
program can accept fractions or decimal as input.
Sector #
Sectors are used for sorting purposes only. Assign a number in the Sector # field
between 1 and 500. If this number has a definition, the sector name will be displayed.
You may use traditional sectors such as Chemical, BioTech, etc., or use this field for
definitions like Hot Picks, Inactive, etc. Changing the sector definition affects all
securities with that sector number.
The data file is created automatically and the symbol is added to your list when you press
Next, Done or Return. When you have input your entire list, press Done or Cancel.
37
Adding an Option Series…
You can add Equity and Index options, one at a time, through the Add Security feature or
use this special dialog to add related groups of options in one operation. Hold the Option key
down and select Add Security from the List Mgmt menu. The following dialog will
appear…
Enter the base symbol. Base symbols are never more than three characters. NASDAQ
symbols are normally converted by dropping the last two characters and adding a Q (e.g.,
AAPL becomes AAQ). Obviously this can not be true for all NASDAQ symbols as Apple is
not the only stock whose symbol begins with AA. It would be wise to confirm the base
symbol with your broker.
Select the Call and/or Put buttons, and check the appropriate Expiration Months and
Strike Price Codes. The last two digits of the strike price are the only significant digits. In
other words, a 105 and a 205 strike price have the same symbol. This does not normally
create a problem since options have a limited trading life. However, in rare circumstances, the
exchange may use the letters U, V, W, or X to identify duplicate strike prices or odd strike
prices such as 22 1/2 after a stock split. It is also common for the exchange to use multiple
base symbols for indexes. For example, the base symbol for S&P 500 index options may be
SPX, SPU, SPZ or ??? based on need.
Sectors are used for sorting purposes only. You may assign a number in the Sector # field
between 1 and 500. If this number has a definition, the sector name will be displayed. You
may use traditional sectors such as Chemical, BioTech, etc., or use this field for definitions like
Apple Options. Changing the sector definition affects all securities with that sector number.
After pressing OK, Pro Analyst will create a file for each option and assign the appropriate
symbol. The new securities will be added to the end of your List. Hold the Option key down
38
and select Remove Security from the List Mgmt menu to use this same dialog to remove
expired options from your List.
Adding a Series of Futures Contracts…
You can add Futures' contracts, one at a time, through the Add Security dialog described
previously or, when you want to add multiple contract months of the same commodity, select
hold the shift key down and select Add Security from the List Mgmt menu. The following
dialog will appear…
Futures' symbols are always 1 or 2 characters. The most commonly requested symbols are
listed in Appendix C. As you enter the base symbol, the program will automatically set the
Tick if it recognizes the symbol. Sectors are used for sorting purposes only. You may assign a
number in the Sector # field between 1 and 500. If this number has a definition, the sector
name will be displayed. You may use traditional sectors such as Grains, Meats, etc., or use this
field for definitions like Hot Picks, Inactive, etc. Changing the sector definition affects all
securities with that sector number.
Backing-up Your Data Files

Your data is very valuable. We recommend backing up as frequently as time and patience
allow. From the Finder, single click on your data folder, then select Duplicate from the
File menu. This will create a folder called Data Copy. This should be done once a day,
discarding previous copies before duplicating. Should anything happen to a data file, you
have a copy that is at most one day out-of-date. Once a week, copy your data to some
alternative medium. If your hard disk should crash, the data on the alternative medium will
be at most one week out-of-date.
39
Organizing your List
Our sorting and ranking capabilities allow you to quickly organize your List in a variety of
ways. These tools have their own sub-menus under the List Mgmt menu and can also be
accessed by clicking on the column headings of your List. See the reference section of this
manual for an explanation of the various sort and rank categories.
Individual securities can be moved within your List as well. Simply drag the symbol where
you want it in the List and drop. If you drag above the top of the List or below the bottom,
the List will automatically scroll making it incredibly easy to put things in order. Changed
your mind? Drop the symbol above or below the window and it will remain where it was.
Using Sectors to Organize your List
Pro Analyst can sort your List by Sector. The only requirement on defining sectors is that
they must range between 1 and 500. This flexibility can be used to organize your Quote
Monitor.
Here's one example of how these features could be used.
Suppose we want to separate stocks that we trade from stocks that we hold in our long term
account, like an IRA. We'd also like to group stocks that are on our "hot trading list" and
stocks that are on our "hot investment list". When you sort by sector, Pro Analyst places the
highest sectors at the top of the list. With 500 sectors to define and four basic groupings, we
can allow 40 sectors per group and still have 300 left over. We want our trading List to be at
the top. We reserve sectors 500-461 for this group.
First, select a stock that falls into this group. Select Modify Security from the List Mgmt
menu. Change the sector to fall within the grouping. Multiple stocks can have the same sector
number. Remember, when we sort, the higher the sector number, the closer to the top of the
group the symbol will appear. We could rank the top 15 stocks, according to their
importance, and give them sector numbers from 499 down to 483. The remaining stocks in
this group could all be sector number 461.
When we are finished with the first group we would repeat the process for the second group
and so on.
The beauty of this method is it is easy to change sector #'s when we sell a stock or enter a
new position. Simply modify the security settings, then re-sort your List.
40
Keyboard Data Entry
Editing Data
To edit the current record
Click on the symbol in the Quote Monitor window. Select Edit Data from the List Mgmt
menu. A dialog will be presented for you to type in the data. Changes are automatically stored
when you press Next or if return key is pressed. Pro Analyst will then move to the next
symbol in the list for editing.
To edit historical data (contained in the active graph).
Click on the bar or candle containing the data that needs editing. The line of text at the top of
the screen will change to reflect that bar or candle. Click on any of these numbers. A Dialog
will appear to allow editing of the data.
Deleting Data
As with editing and most functions in the program, there are multiple ways to delete data. The
preferred method will depend on how much data and where, within the file, that data is located.
To delete the last record in any file…highlight the security in the List and select Delete Data
from the List Mgmt menu.
To delete one or more records from the end of each file in a single security or the entire List…
select Block Delete from the List Mgmt menu. A dialog will appear requesting the number of
records to delete. The default is one. Enter the appropriate number, verify whether you want to
delete the data from each security in the List or simply the selected security, then press the
Delete button.
41
To delete extraneous data from various points in a single file…highlight the security in your
List. Select Recover from the File menu (offline). This function rebuilds the entire file,
deleting all data that does
not fall within the valid date
ranges. At the same time, it
will delete duplicate records,
inserting holidays (optional)
where data is missing and
check the validity of the
data. You can instruct Pro
Analyst to rebuild the entire
List if you hold the shift
and option keys down
while selecting Recover
List from the File menu.
Deleting Securities
There are several ways to remove securities from a List. Which method you use depends on
whether you want to permanently delete the data or simply remove the security from the
List.
There are two ways to permanently delete the data…
1. Highlight the security in the List. Select Delete from the File menu. Pro Analyst will
request permission to permanently delete the data. This works fine if you only have one or
two securities to delete.
2. Select Quit from the File menu. Pro Analyst will return you to the Finder. Open your
data folder and drag the file or files to the trash. When you return to Pro Analyst and open
the List, the program checks to see if the associated securities exist. If they do not, they are
discarded from the List. This method works best if you have many securities to delete.
There are three ways to remove the security without deleting the historical data…
1. Highlight the security in the List. Select Remove Security from the List Mgmt menu.
2. Select Modify… from the File menu (offline). Select and Open the List needing
modification. The List Modification window will open displaying securities that are in your
List on one side and those that are not on the other. Double click on the securities you want
removed from the List. They will move to the other side. When you are finished making
modifications, press Save or Use. The List will re-open as modified.
3. Select Quit from the File menu. Pro Analyst will return you to the Finder. Open your
data folder and drag the file or files to another folder. When you return to Pro Analyst and
open the List, the program checks to see if the associated securities exist. If they do not, they
are discarded from the List.
42
Exporting Data
Export… (File menu) creates text files for use with AppleWorks, Excel and other Macintosh
products.
Set the Col # fields to Skip on information you do not want exported. In our example we
have indicated we want the Symbol in the first column, the Date in the second column,
Volume in the seventh, and Open, High, Low and Last in the third through sixth columns
respectively and we have indicated that we want to skip Open Interest.
Select your personal choices from the Export From, Export To, Date Format and Data
Type, and File Type popup menus. Pro Analyst will use the date format of the operating
system. The field here is just a reminder of how you have your system set up. We have
indicated that we want the last 1 record of daily data exported, from each security in the List,
in Tab delimited text (for use with Excel). When Export is pressed, Pro Analyst will request
a name and location to store the exported data.
With the expectation that you will want to export to the same format on a normal basis, Pro
Analyst will automatically store your setup after completing the export.
Export One (File menu) will export the current day's data from each item in the active List
using the format parameters stored on your last export. The data will be stored in a file named
"export" which will be created in the same folder as the active List. If the file exists it will
automatically be replaced.
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Stock Splits & Futures' Rollovers
A stock split alters the number of shares outstanding and the price of those shares. In a 2 for
1 split, each share of existing stock will become 2 shares and the price will be halved. A
reverse split has the opposite effect. Sometimes, if you are not following a stock closely, you
will not become aware of the split until after it has taken effect. As such, our Split function
contains an effective date field. All data before the effective date will be split in the ratio you
select. Highlight the stock in your List. Select Split from the Special menu. Adjust the ratio of
the split and the effective date. After setting all fields, press Split. Before adjusting the prices,
a copy of the historical data file will be made and left on the disk. After confirming that the
new file is correct, you may discard the copy.
Rollover has two main functions: it can be used to adjust Mutual Fund prices after a dividend
distribution and it can be used to create and maintain perpetual futures data.
For mutual funds… Highlight the Fund in your List. Select Rollover from the Special
menu. A dialog window will appear requesting the adjustment amount and the effective date.
The adjustment should be negative. The New Lead Contract field is for Futures only. If there
is anything in this field, delete it. All data up to and including the effective date will be
adjusted. After setting all fields, press Rollover. Before adjusting the prices, a copy will be
44
made and left in your Data folder. After confirming that the new file is correct, you may
discard the copy.
For Futures… Highlight the Future in your List. Select Rollover from the Special menu.
The adjustment value is calculated by subtracting the current settlement price of the perpetual
contract from the settlement price of the contract you are rolling to. If the new contract is
lower in value, this will create a negative adjustment value. Enter the expiration of the
contract you are rolling into. This date must be in the form MM/YY. The effective date
defaults to today and should normally be left unchanged.
A discussion of Perpetual Futures data may be found at the end of Section 8.
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5
Special Features
Advanced Usage
Layouts
As you use the software you are likely to discover that you prefer to view similar securities in
a similar way from day to day. Our custom layout feature was designed to allow you to
accomplish this faster and more conveniently. Lets take a look at how this works... Open a
series of charts using different symbols, time frames, and chart types. Size and place the
windows. Select Save Layout from the Windows menu. Just like any other file you create
on your Macintosh, layouts must have a unique name. Name the layout My First and press
Save. You have just created your first layout.
Just like our Lists, layouts do not contain the charts or even the data necessary to create
them. The layout files store the names of the data file or files used to create the charts. This
way, as you update those files with newer data, the layouts will update as well. The layouts
also store other window content information like the type and time frame of the charts and
what, if any analysis studies were applied to the chart. Finally, the layouts store the windows
size and placement on the screen at the time they were created.
Using your layouts is even easier than creating them. Lets close all the graphs and imagine
that this is a new day. Now, select Use Layout from the Windows menu and open My
First.
Layout files DO NOT contain price data. They do contain:
» The number, size and screen location of all graphic windows open at the time the Layout
was saved.
» The type and time frame of the chart.
» The symbol used to create the chart.
» The analysis tools displayed on the chart.
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Chart Suite
The Chart Suite is a layout without security names so that it can be used on any symbol in
your List with a single keystroke or menu selection.
To use the Chart Suite, select a symbol in your List, then select Chart Suite from the Charts
menu or press =
The default Chart Suite brings up a daily, weekly and monthly chart (offline) or a 5 min, 15
min, 30 min and 60 min chart when you are online. To change the suite, open the charts you
want included in the suite (all charts must be based on one symbol), then select Chart Suite
from the charts menu while the charts are the front windows.
You can redefine the suite as frequently as you want but only the last definition will be
"remembered".
Candle Pattern Identification & Alerts
Pro Analyst can assist you in finding and understanding Japanese Candle chart patterns. To
toggle this feature on or off, move your mouse to the right of the date or time line on any
Candle chart. Click your mouse once when the cursor changes to a light bulb.
Candles that identify patterns are "painted" in offsetting colors. Hold the mouse down on any
reference to Steve Nison's book on candlestick interpretation. Pro Analyst can identify 26
key candle patterns including:
Hammer & Hanging Man Bullish & Bearish Engulfing
Piercing Pattern & Dark Cloud Cover Morning & Evening Stars & Doji Stars
Inverted Hammer & Shooting Star Upside Gap Two Crows
Harami & Harami Cross Three Black Crows
Bullish & Bearish Counterattacks Bullish & Bearish Beltholds
Tri Star Bottoms & Tri Star Tops Dojis
When candle pattern id is active, the program will alert you when a new candle pattern forms
on that chart.
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Pivot Point Alerts
Our pivot point alerts are based on a day trading system used by many floor traders. To
calculate the pivot point, we add the previous day's high, low and close and divide the result
by 3. The pivot point is then used to calculate the four alert levels as follows:
Pivot Low is the pivot point multiplied by 2 less yesterday's high.
Pivot High is the pivot point multiplied by 2 less yesterday's low.
Extreme High is the pivot point minus nearby support plus nearby resistance. This would be
the next expected level of resistance if the nearby resistance failed to hold.
Extreme Low is the pivot point minus the difference nearby resistance and support. This
would be the next expected support level if nearby support failed to hold.
These alerts are calculated automatically when you open a list. They are in addition to any
personal alert levels that you set. As the alerts are hit, you will be notified in the rank column
and the upper half of the ticker tape. You can turn off the notification (or turn it back on)
through the program defaults dialog (Edit menu).
You can turn on (or off) the display of these alert levels on any chart by clicking in the scale
area of the chart while holding the shift key down. On intraday charts, the scale of the chart
will display the alerts instead of the normal scaling. On charts longer than hourly, the alerts
will be displayed as colored horizontal lines. In both cases, the chart will be rescaled if the
alerts are outside the range of the chart high and low.
A similar display of your own personal alerts and position entry price is available by clicking
in the scale area of the chart while holding the option key down. This command will be
ignored if you have not set alerts.
Trade Tracking
The Trade Tracking window summarizes your open positions including:
Profit or loss since the position was established;
Profit or loss from yesterday's close (intraday P/L);
Best in profit today.
Value of the position (shares x current price).
The first two profit figures will be equal if the position was opened today.
Position value will be blank for futures contracts.
All calculations update real time.
To activate the Trade Tracking window, select Trade Tracking from the Special menu
(or press F9).
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Automatic Alerts
The following tools will automatically generate alerts if they are displayed on a charts
MACD will trigger an alert if it is displayed as a histogram and the MACD value crosses zero
or, if it is displayed as a double-line then it will trigger an alert when the two lines
Stochastics will trigger an alert if %k crosses above %d when the value of %k is less than 75
and conversely when %k falls below %d and %k is greater than
Moving Averages will trigger an alert when they cross.
Parabolics will generate an alert when a reversal is pending.
Rate of Change will generate an alert when the value crosses 100.
Keltner Channels will generate and alert when the price exceeds outer channels.
Program generated trend lines will alert you when prices touch or break out of their channels.
The last pair of manually drawn trend lines (support and resistance) will be alerted if touched
or broken.
Alert Sounds
Hold the option key down and select Alerts from the Edit menu to set the default Alert
sounds for automatic alerts...
Technical alerts are those

based on technical
analysis studies like
MACD and Stochastics.
Set the sound to Silence

for any of the alerts if
you prefer to turn off
audible alarms.
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Calculator
Enter two dates and press the Dates button. Our special calculator will determine the number
of trading and calendar days between the two dates. Add a third input (the +45 in our
example) and Pro Analyst will project future dates as well.
Enter two prices and press Retrace and our calculator will compute Fibonacci retracement
levels. Hold the Control key down to find retracments in eighths. Use the Option key to
request retracements in thirds. Enter a single price in the first field and a percentage in the
second field and we compute percentage moves up and down from your price.
Enter a price in the first field and a ± number in the second field and press Count. We'll check
how many times your price was within the high and low range.
The Stats button will calculate standard deviation, volatility and price range between any two
valid dates. With no input, we use the date range of the chart.
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Trader's Journal
Every successful trader must learn from experience, good and bad. Our Trader's Journal
feature allows you to keep dated notes, stored separately for each security. The perfect spot to
write your thoughts, emotions, etc.
Time & Sale

To view time and sale information... select
a symbol in your quote monitor, then
select Tick from the Charts menu. In the
lower left of the chart is a graphic control.
Click on the 4th picture from the left to
turn the tick chart into a Time & Sale
display...
All charts can be converted to time and

sale display format through this same
control. The time frame of the chart
dictates the information that is contained
in each row of the Time & Sale display.
To export this information for use in

AppleWorks, Excel or other Mac
programs... select Save As from the File
menu.
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Online Versus Offline
Many of Pro Analyst's features require connection to the MacTrack data feed. It does,
however, have many features that can be used when you are not connected. We thought a
few words on this subject might be helpful.
First, lets define how you tell whether you are online or offline... when you are online, the
ticker tape window will be open along the bottom of your monitor and your QuoteMonitor
will display a few extra columns (e.g., bid and ask).
During market hours (you define these) the program will automatically want to work online.
Online only features include intraday charting and analysis, news features, and MarketPulse
reports. Longer term charts (i.e., daily, weekly and monthly) and analysis are available
whether you are connected or not. When the markets are closed, Pro Analyst will
automatically work offline unless you select Start Monitor from the Special menu.
Intraday data is collected and stored between these hours. If you want to watch afterhours
news and quotes but do not want the quotes stored, you should start the connection manually
after we have automatically disconnected for the day.
Why would you want to work offline? A few features, specifically, creating and modifying
Lists, are available offline only. Second, you don't always need to be connected to the internet
to use a variety of the programs features. This could be useful if you are traveling as one
example.
Maintaining Multiple Lists
If you maintain more than one List, we recommend that you segregate your main intraday
List from the rest of your Lists by creating them in separate data folders. This is to prevent
the potential loss of intraday data. When you start monitoring, Pro Analyst opens (or creates)
and indexes the Intraday data file located in the same folder as the List. If your secondary
Lists are located in the same folder as your main List and you start monitoring, Pro Analyst
will index the Intraday file to the secondary List. This would, in most cases, cause you to lose
Intraday data.
There are many reasons why you might want to maintain more than one List. Here are a few
examples...
1. You want to monitor markets that open at odd hours to your main List, like night futures'
markets or overseas markets.
2. You want to maintain historical data on securities that are not in your main List. Your main
List is limited to 500 symbols. You may even wish to limit the size of your main List below
the maximum because of speed concerns related to your connection speed or the speed of
your Mac. You can maintain historical data on thousands of additional securities in separate
Lists (in separate folders). If and when you decide to add any of these securities to your main
List, you can move the histories to the folder containing your main List.
To update the historical data on a secondary List...
1. Select Open… from the File menu.
2. Select Start Monitor from the Special menu.
3. Select Update Histories from the File menu.
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6
Technical Analysis and Charting
A Primer
Introduction to Technical Analysis
What is technical analysis and why is it important? All investors should do some form of due
diligence before making any investment. There are two basic forms of investment analysis;
fundamental and technical. Fundamental analysis involves evaluating an investment on the
merits of its balance sheet, products, supply and demand, and the economic climate. Technical
analysis assumes that the market has discounted the fundamental information (the market
knows the information before it becomes public) and seeks to interpret the market reaction to
this information by analyzing price movements for a given investment.
Prices move in trends, and these trends tend to continue in the same direction for extended
periods of time. The technician, through the use of charts and other indicators, attempts to
identify these trends. The charts do not cause the market to go up or down. They simply
reflect the market's perception of the fundamentals. In essence, it is a matter of cause and
effect. Fundamental analysis seeks to interpret cause, while technical analysis interprets effect.
The fact that XYZ's earnings continue to grow is the fundamental cause for higher stock
prices while the actual price range in which XYZ finds support and resistance is the effect.
Support and resistance? Every investor has a price at which he becomes concerned about
continued ownership of his stock and decides to sell. When enough investors have a similar
price in mind, there are more sellers than buyers in the market and the price of the stock will
fall. This price is referred to as resistance. Similarly, at some price, investors will view a stock
as being undervalued and decide to buy. The price at which more investors want to buy than
sell is considered support. As investor psychology changes over time, so do the areas of
support and resistance. The key to market timing is identifying support and resistance areas
and attempting to buy at support and sell at resistance. This is the heart and soul of technical
analysis.
Charts are the basis for technical analysis. They offer a visual aid to interpreting trend and
market action. The old axiom "a picture is worth a thousand words" was never more
appropriate. Even the novice can do basic chart interpretation. We can all look at a chart and
say "I wish I had bought this stock then" or "Wouldn't it have been great to take profits
then." Hindsight is easy and you can't always be right, but with the right tools and a little
work, you can decrease your risk and increase your profits.
53
The three most popular forms of charts are the bar chart, candlestick chart, and the line chart.
Pro Analyst can create all of these in daily, weekly and monthly time frames.
For the experienced trader or investor, Pro Analyst saves you hours with access to some of
the most powerful analysis tools. It can also help prevent you from making the emotional
mistakes we are all susceptible to.
Learning technical analysis, with our software, is easy if you have invested or traded before.
After reading through this section of the manual, down load data on securities you have
traded in the past. Examine the chart around the time you entered the trade. Did you enter
the trade at the most opportune time? Would the chart, by itself, have altered your strategy?
Next, let's apply one of the analysis studies. Pick an indicator (e.g., Stochastics). Can you spot
anything here that would have helped you enter the trade at a better point? Check your other
charts to see if your observations hold. The next step is to discover how studies work in
conjunction with one another. This is called "looking for confirmation". No single tool will be
100% accurate in predicting direction or timing. However, two tools, each 50% accurate,
might produce 75% accuracy when they both point in the same direction at the same time.
Take your time, Rome wasn't built in a day. Each tool that you master will enhance your
bottom line.
We strongly recommend paper trading if you are new to trading. Trading is the only business
that can truly be tracked on paper. If you were to open a video store on paper, you would not
get a true picture of potential profitability because factors such as the quality of your
employees, location, traffic, theft, bad debts, etc., can only be estimated. Investments can be
tracked on paper and all variables are known. Take advantage of this and make your mistakes
on paper, not with real money. Many of the techniques involved in technical analysis can only
be learned through experience and Pro Analyst offers you an excellent way to gain this
experience. In time you will make fewer and fewer mistakes and you'll be ready to put that
experience to work. Our Trader's Journal feature (Special menu) was designed to help the
trader keep track of his thoughts and emotions. We think you will find it to be an excellent aid
in paper trading.
54
Bar Charts and Trend Identification
Daily bar charts are the most widely used type of chart. These charts are constructed by
representing each day's activity as a vertical bar. Opening and closing prices are represented
by horizontal marks to the left and right respectively. To display a daily bar chart in Pro
Analyst, simply select Bar Daily from the Charts menu. Pick the appropriate file from the
selection dialog and press Open.
Speed Tip
As the number of files in your Main List grows, scrolling through the file selection dialog
takes longer. This dialog can be manipulated much faster through the keyboard. Press the
first letter in the file name and the dialog will proceed directly to the first file beginning
with that letter. Once there, the up or down arrows can manipulate the dialog quickly to
the file you wish to select. When that file is highlighted, pressing Return treated the same
as clicking on the Open button.
Chart appearance is very flexible in Pro Analyst. Users can set scaling, grid division, zoom
level (i.e., chart spacing), study smoothing, colors, even default studies. Beauty is in the eye of
the beholder. When you know how you want to display your charts, Pro Analyst will let you
lock in your preferences for each type and time-frame of chart. Until then, the program will
use default settings. In other words, you don't need to be an expert to create useful charts.
Clicking the mouse on any bar in the chart will display the data (date, volume, open, high,
low, and close) reflected in that bar. These numbers are displayed directly above the chart.
Moving average and analysis tool values are also displayed if they appear on the chart.
55
Figure 5
Clicking in other areas of the chart (see Figure 5) will allow temporary changes in chart
appearance. We call this our Point & Click interface.
As you move the cursor around the graph you will notice that the cursor changes to indicate
the function of our point & click interface.
have selected in the Program Defaults for end-of-day charts. On intraday charts it will
remove one day of data for each click. This cursor should appear in far right corner of the
date line.
you have selected in the Program Defaults dialog for end-of-day charts. On intraday charts
it will restore days removed from the chart (see shift right above). This cursor should
appear in far left corner of the date line.
chart. This cursor should appear towards the right or left side of the date line on daily,
weekly and monthly charts.
Clicking with this cursor active allows you to change the time-frame of the chart (e.g., turn
a 5 minute chart into a 10 minute chart).This cursor should appear towards the right or left
side of the time line on 1 minute to 60 minute charts.
56
Clicking with this cursor active allows you to set alerts and/or positions. This cursor
appears in the upper right. It is the same as selecting Alerts from the Edit menu.
Clicking with this cursor active turns on Candle Pattern analysis and Candle Pattern alerts.
This cursor appears to the right of the date line or time line on Candle Charts.
The mouse is also used for five other important features…

1. Hold the Shift key down while dragging your mouse to manually draw trend lines. Trend
lines are automatically stored when you close the chart window. To remove trend lines,
one at a time, hold the Shift and the Control key down and click on the line to be
removed. To remove all trend lines with one command, hold the Shift key down and
select Clear from the Edit menu. See the section on our Double Click interface for
instructions on how to edit your manually drawn lines,
2. Hold the Control key down and drag the mouse. The cursor will change to a giant cross
hair, stretching from top to bottom and left to right. As you move the cursor across the
chart, the data reflected by that point in the chart will update. Horizontal and vertical drop
lines will be drawn on release if the cursor is still in the body of the chart. The resulting
drop lines are automatically stored when you close the chart window. To remove drop
lines, one at a time, hold the Option and the Control key down and click on the lines to
be removed. To remove all drop lines with one command, hold the Control key down
and select Clear from the Edit menu.
3. Hold the Option key down to track the price and date of the mouse location.
4. Hold the Shift and Option keys down and drag your mouse around an area of the chart
body to zoom in on that section of the chart.
57
Figure 6
Daily charts are very useful for identifying short term trends. Identifying the trend and the
magnitude of the trend are the key to chart analysis. Trends are most often broken down into
three categories -- primary, secondary, and minor. Pro Analyst identifies all three for you.
Figure 6 shows an example of our computer generated trend lines created by selecting Trend
from the Analysis menu. The heavy lines represent the Primary trend while the light lines
display the minor trend. In this example, the secondary trend lines are obscured by the heavy
primary lines.
As the human eye can sometimes see things that the computer missed, an understanding of
what constitutes a trend line is in order. Markets fluctuate up and down in a succession of
peaks and troughs. If the peaks are getting higher and higher, the trend is said to be up.
Conversely, if the troughs are getting lower and lower, the trend is down. Sometimes, both of
these trends are evident at the same time. This is a mixed trend and usually indicates a market
in a decision making process. A line can be drawn between successive peaks or troughs to
graphically illustrate the trend. It takes two points to define a trend and a third to confirm. The
top line is termed the line of resistance and the line connecting the troughs is termed the
support line. The small circles displayed in Figure 6 were created by another analysis tool
called Key Points. This combination of these two features can be invaluable to those learning
to identify areas of support and resistance.
Another important concept in the development of trend lines is parallel channels. Many
analysts believe that true resistance on a market that is rising will be found along a line that
runs parallel to the support. Conversely, in a market that is trending down, true support will
fall on a line parallel with resistance. This is important to remember as we pursue the concept
of trend reversals.
58
Pattern Identification
As we said before, markets tend to trade within channels for days, weeks or months. The next
task of the technician is to identify when the trend will change or accelerate. To do this, the
chartist will use a combination of momentum studies and chart patterns. While patterns are
not identified by Pro Analyst, no discussion of technical analysis would be complete without
them. These patterns have been given names such as -- head and shoulders, gaps, flags and
pennants. Generally, patterns fall into two categories: reversal patterns and continuation
patterns.
Gaps and Other Major Reversal Patterns
The head and shoulders is probably the best known of the reversal patterns. Our example
shows this pattern predicting a trend reversal in IBM in 1991. While the pattern is not truly
confirmed until the neckline is broken, early anticipation can lead to greater profits.
Momentum studies, such as Stochastics offer the best opportunity for early recognition.
Head & shoulders
Once the pattern is established, there are several important characteristics of this pattern to
look for. First, the distance between the top of the head and the neckline provides a minimum
target for the new support level. In our example, the head is at 106 and the neckline (directly
below the head) is at 95. This means we would expect new support to be no higher than 84.
In this case, the measurement is almost perfect as IBM dropped to 84 in early December. The
second characteristic is a return move back to the neckline after the neckline is broken. This is
very important if you failed to recognize this pattern before confirmation. In this case, IBM
59
exceeded the neckline, however, that is not normal. Finally, the wider the pattern, the more
significant the reversal.
A head and shoulders is a special version of a triple top where the middle peak is higher than
the first and the last peak (the shoulders). Multiple tops or bottoms offer the clearest, most
reliable signals of trend reversal. It is easy to recognize them as they are usually named after
the patterns they form. Some examples: the "W" bottom, the "V" or spike bottom, the
"saucer" bottom and "rounded" tops. The "W" bottom is a special version of a double
bottom. It appears on the chart as a "W" and is confirmed when the center top is exceeded.
The longer the time delay between multiple tops or bottoms, the more significant the reversal
or breakout when it occurs. Testing of previous support or resistance is key to the
continuation and strength of a trend, therefore failure to "take out" a previous high or low is
usually the first warning of a trend reversal. Saucer bottoms and rounded tops are also good
indicators of a reversal in trend. They are caused by a gradual change in market psychology.
Stochastics and RSI are very useful for confirming reversal patterns in their early stages.
"W" Bottom - a powerful reversal pattern
Gaps are simply blank spaces on a chart where no trading has taken place. They occur more
frequently in thinly traded markets and are caused by a lack of buyers or sellers, usually due
to news that surprised the market. Gaps quite often occur just before or just after a trend
reversal and are therefore important. Gaps have different meanings depending on where in
the price structure they appear.
It is not uncommon for a market to retrace and fill the gaps later. This phenomenon can
provide a target for entry into missed markets. However, since this does not occur every time,
it should not be depended upon to exit losing positions. There are five types of gaps:
Common Gap These gaps have little or no forecasting value as they occur in thinly traded
markets.
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Exhaustion Gap - These gaps appear in the direction of the current trend when that trend has
been in existence for a long period. They are a good sign of an impending trend reversal.
These gaps are almost always filled
Breakaway Gap - These gaps usually occur at the conclusion of an important topping or
bottoming action and are rarely filled.
Measuring Gaps - These gaps occur in mid range of a trend and are a sign of increased
momentum.
Islands - Islands are simply an exhaustion gap followed by a short consolidation and then by a
breakaway gap in the opposite direction. They are aptly named as they leave an island of
bars on a chart.
Island Top indicates reversal
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Continuation and Indecision Patterns
Continuation patterns occur after a strong move up or down and are essentially a resting
point or consolidation period. The market moves sideways while it "works off" the over-
bought or over-sold condition. This sideways movement occurs as the market moves closer
and closer to a temporary equilibrium. The pattern formed resembles a pennant or a flag. The
strong move before the formation of the flag is referred to as the flagpole.
Triangles are indecision patterns and appear similar to a pennant except they occur in mid-
range and quite frequently before major news events. If the news is good, the chart exits the
triangle to the upside and conversely if the news is bad, the chart exits the triangle to the
down side. Early identification of a triangle offers excellent short term trading opportunities.
Japanese Candle Charts

Over 100 years before traditional bar charts were developed, the Japanese were using
Candlestick charts to analyze the rice market. The Pro Analyst presentation includes daily,
weekly and monthly candlesticks. All the analysis tools that may be displayed on your daily
and weekly bar charts may also be used in conjunction with these new charts. Get ready for a
whole new language…
The thick part of the candlestick is called the "real body" and represents the range between
open and close. When the real body is solid it means the close was lower than the open, if the
real body is white, it means the close was higher than the open. The thin lines above and
below the real body are called "shadows" and they represent the high and low of the day or
week. If the open and close are the same, the display will appear like a traditional bar. These
are called "doji" lines.
Pro Analyst can assist you in finding and understanding Japanese Candle chart patterns. To
toggle this feature on or off, move your mouse to the right of the date or time line on any
Candle chart. Click your mouse once when the cursor changes to a light bulb.
Candles that identify patterns are "painted" in offsetting colors. Hold the mouse down on any
reference to Steve Nison's book on candlestick interpretation. Pro Analyst can identify 26
key candle patterns including:
Hammer & Hanging Man Bullish & Bearish Engulfing
Piercing Pattern & Dark Cloud Cover Morning & Evening Stars & Doji Stars
Inverted Hammer & Shooting Star Upside Gap Two Crows
Harami & Harami Cross Three Black Crows
Bullish & Bearish Counterattacks Bullish & Bearish Beltholds
Tri Star Bottoms & Tri Star Tops Dojis
When candle pattern id is active, the program will alert you when a new candle pattern forms
on that chart.
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Point & Figure
Point & Figure charting dates back to the turn of the century. It's acts like a filter, showing
only "significant" price movements, allowing the analyst to see patterns more readily. The
basis for plotting revolves around selecting a box size (the value of a + or o). This is one of
the most critical decisions for the analyst. A box that is too small will make the chart too
sensitive while one that is too large has the opposite effect. Pro Analyst decides the box size
for you based on current price, recent volatility and accepted standards providing the
optimum sensitivity for the chart.
Plotting is based on well defined rules. Horizontal movement reflects trend changes rather
than time. In other words, each column can encompass a different amount of days, weeks or
even months.
63
Preference is given to price movements that continue in the direction of the current column. If
the last column of the chart is a down column (o's) then the low of the day is tested first. Price
movements are considered "significant" if they exceed previous movements in the trend
direction by one box.
The price must reverse direction by an amount equal to three boxes for it to be considered
"significant". Traditional charts use "x" to mark up trends and "o" to mark down trends. Pro
Analyst uses a "+" instead of an "x" but otherwise follows the traditional format.
Let's look at our example (the Lumber chart on the previous page)... the lowest point
achieved in the last column (o's) is 352. The chart is a 3 x 8. This means each o or +
represents 8.0 with a 24 point (3 x 8) move necessary to reverse column direction.
When a new day of data is added to this chart, Pro Analyst will test the low of the day first
(because the last column is a down column). If the low of the day exceeds 352 by at least one
box (i.e. ≤ 344) then Pro Analyst would add one or more o's. If this test fails (e.g., the low is
345) then Pro Analyst will test the high of the day to see if it matches the criteria necessary
for a new column. In this case, the high must exceed 376.
P&F are the easiest charts to draw on paper. This is one reason why they have remained a
popular choice for analysis for over 60 years. On paper, you keep the grid size constant and
associate a different value for each box. On a computer, windows are adjustable in size and a
circle can not be made infinitely small. This can present a problem.
The solution is to keep the box size constant and only display that part of the chart that will fit
in the window. Pro Analyst decides which part of the chart is key based on recent price
movement. Click in the scale area to toggle the display to the other part of the chart.
Clicking in the left corner of the chart will "scroll" the chart to the left if more columns exist
than can be displayed in the current window. Clicking in the right corner will "scroll" the
chart back.
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Point & Figure Analysis
Many of the same techniques for interpreting bar charts apply to point & figure. Trend lines
are more easily identified as are many of the chart patterns. The most common point and
figure formations are shown in following example with corresponding buy and sell signals
identified.
Recognizing patterns, entries and exits, and potential price objectives, are a function of
experience. Don't give up, in time you will realize the power and accuracy of this time-tested
tool.
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Technical Tools
As all technical studies are overlaid directly on or under your charts, the analysis menu
remains inactive unless an appropriate chart is in the active window. Analysis menu
selections that appear before the separator line (e.g., RSI) will be drawn underneath the
chart. The studies can be divided into five basic categories: momentum, trend, volatility,
directional and volume. No single tool will be 100% accurate in predicting direction or
timing. Successful traders look for confirmation between several studies. Very few analysts
have the time to use all the tools available in Pro Analyst. Each extra study, which
confirms previous work, reduces risk and increases the probability of a successful trade.
However, there is a diminishing return with each additional confirmation. On average,
minimal risk can be achieved with the use of three to five indicators.
Momentum Studies
Momentum studies include Stochastics, RSI, TSI, MACD, and Rate of Change. While each
momentum study has a different presentation, there are three areas of interpretation that are
shared: divergence; trend; and absolute value (in order of importance). The following
discussion of Stochastics applies in general to all momentum studies. If you can learn to spot
divergence and trend on one momentum study, you have mastered the use of all.
Stochastics
Markets that are heading higher tend to close nearer the high than the low with the reverse
being true in markets that are heading lower. This is what Stochastics is attempting to
measure. There are three calculations that comprise Stochastics.
Fast %K = ((Close-Low in Period)/(High in Period-Low in Period))*100
Slow %k = Moving average (user selectable) of Fast %K
%d = Moving average (user selectable) of Slow %k
Fast Stochastics uses the first two values while slow Stochastics use the latter two. Pro
Analyst can plot slow or fast stochastics or all three lines. All values that are not assigned the
same color as the background color will be displayed. We are using a 20 day, slow Stochastics
in our example.
In simplistic terms, Stochastics is considered oversold when %K is under 25 and is crossing
over above %D and overbought when it exceeds 75 and crossing under %D. As crossovers
often occur with no change in price trend the skilled analyst will filter out false signals.
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Divergence is the best filter. When price patterns are making higher tops while Stochastics is
making lower tops, this is called bearish divergence. As the name implies, this is a sell signal.
Conversely, when the price pattern is making lower bottoms and Stochastics is making higher
bottoms, this is bullish divergence.
A second filter for this indicator is the trend of the %d line. In our example you can see that
we have drawn a trend line connecting the dips in this line. When this trend line was broken, it
marked the end of the up trend in prices.
A third filter would be to look for signals generated by other indicators to act as confirmation
or denial of the signal presented by Stochastics.
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Williams %R
Developed by Larry Williams, the formula for %R is a variation of Stochastic Fast %k. Where
%k compares today's price to the lowest low, %r compares today's price to the highest high.
This produces values that are inverse of one another. The indicator is plotted using negative
numbers. For interpretation purposes, it is the absolute value that is important, so ignore the
minus sign. %R produces buy signals when the indicator is high (≥80) and sell signals when it
is low (≤20).
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RSI
The Relative Strength Index is a momentum oscillator that measures the velocity of price
change. RSI is based on the observation that a stock that is advancing will tend to close nearer
to the high of the day than the low. The reverse is true for declining stocks. RSI measures an
equity's price relative to itself and might more appropriately be called an "internal strength
index". It is relative to its past performance. It is also front weighted, therefore, it gives a
better velocity reading than other indicators. RSI is less affected by sharp rises or drops in an
equity's price performance. Thus, it filters out some of the 'noise' in a security's trading
activity. Developed by J. Welles Wilder, RSI is a very popular technical tool and has many
uses and interpretations. Values above 70 indicate an overbought condition and values below
30 indicate oversold. As with all momentum studies, the identification of divergence and trend
patterns are more important. If the market is making new highs, while the RSI is heading
lower, this is called bearish divergence and is an early sign of a top.
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TSI
The TSI (Trendsetter Strength Index) is a variation of RSI. By design, it moves more slowly
than RSI. As such, we recommend using a lower smoothing value. If you prefer to use a 14
day RSI, try a 7 day TSI. Interpretation is the same as RSI except that overbought and
oversold levels are closer together (i.e., 65 and 35 for TSI versus 70 and 30 for RSI). Again,
divergence and trend breakouts are more powerful interpretations than absolute value.
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Rate of Change
This is a momentum oscillator built on the formula: ROC = 100*(C /Cx ) where C is the latest
close and Cx is the close x periods past. Ten periods is the accepted standard but it is
adjustable in our software. The result is the percentage that the security's price has changed in
the last x-periods. A rating of 110 means that the security is trading at 110% of its level x-
periods past.
The concept is to measure acceleration of price change. Analysis is similar to all momentum
studies, look for trend, divergence and changes in direction.
Rate of change may be viewed as a histogram or in line form. To toggle the display, hold the
Shift key down and click in the scale area of the indicator. You can choose the default view
of this indicator through the definitions dialog (SetUp - Definitions, File Menu).
Rate of Change may be overlaid with a user-defined moving average. To turn the moving
average off, set the smoothing to zero (SetUp - Analysis, File Menu).
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MACD Histogram
Moving Average Convergence Divergence is an oscillator based on exponential moving
averages. This standard formula subtracts the difference between a long term (26 Wk) and a
short term (12 Wk) exponential moving average. This difference is then made into another
moving average (9 Wk) before display. The default parameters are shown in parenthesis. They
are adjustable through the Analysis setup dialog. For more volatile markets, you may want to
shorten the periods of the EMA's. The name of the indicator is derived from the fact that the
shorter EMA is continually converging toward and diverging away from the longer EMA's
with all oscillators, look for divergence from price pattern and trend within the oscillator.
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MACD Double Line
MACD can be toggled between the traditional double line display and our standard histogram.
In the double line display, the fast MACD line is displayed as a solid, single thickness black
line, the signal line is displayed as a patterned, double thick line. To toggle the display, click in
scale area (far right side) of the MACD display. You can define the default display through
our General Preferences dialog accessed by selecting Set Up - Definitions under the File
Menu.
When the fast MACD line crosses above the signal line, it gives a buy signal. Conversely,
when the fast line crosses below the signal line it is time to sell.
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TRIX Index
TRIX was developed by Jack Hutson, editor of Stocks and Commodities Magazine. It is a 1
day rate of change of a triple exponentially smoothed moving average of closing prices. Its
triple exponential smoothing is designed to filter out "insignificant" cycles (i.e., those that are
shorter than x-periods). Trades should be placed when the indicator changes direction. You
also can also plot a moving average of the TRIX to create a "signal" line (similar to the
MACD indicator) and then buy when the TRIX rises above its signal line, and sell when it falls
below its signal line.
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Commodity Channel Index (CCI)
Don't let the name fool you, while Donald Lambert developed this indicator with commodities
in mind, it is very useful with stocks, mutual funds and indices. CCI is calculated by examining
the difference between the "mean" price of a security and its average mean over the x-
periods. The result is normalized to a trading range of ± 100. This means 70 to 80 percent of
all CCI values will fall between 100 and -100. The oscillator was designed to determine when
a cyclic trend is in force.
It may be used as a breakout indicator, buying when readings exceed 100 and selling when
readings go below -100. However, we have found that interpretation as a momentum
indicator appears to work more reliably. Look for divergence, trend and absolute value (i.e.,
100 and -100).
CCI is a leading indicator. Like most leading indicators, when its right it will prove very
profitable but it will be wrong frequently. We recommend using CCI as an early warning flag.
Wait for confirmation from other indicators before following its lead.
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Williams AD
Williams' AD is a price based indicator that accumulates the total of x where:
if we close higher today than yesterday then
x = close - the true range of lows
else if we close lower than yesterday the
x = close - the true range of highs
else
x=0
The true range of highs is defined as the greater of yesterday's close or today's high.
The true range of lows is defined as the greater of yesterday's close or today's low.
Williams recommends trading this indicator on divergences only. Our own work indicates that
trend within the indicator may be just as important.
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Williams Ultimate
Developed by Larry Williams, the Ultimate Oscillator is a combination of three oscillators
based on three time spans. The formulation is too complex to describe fully in this manual.
Williams suggests the following regarding buy and sell signals...
1. Buy on positive divergence where the low of the oscillator has dipped below 30.
2. Sell on negative divergence where the high has exceeded 50.
3. Close long positions when the oscillator exceeds 70.
4. Close short positions when the oscillator goes below 30.
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Volatility Studies
VBands
Volatility trading bands (aka Bollinger Bands) are based on the volatility of the underlying
security. As such, these bands will narrow and expand as the volatility changes. The bands are
a moving average of the standard deviation, plotted above and below the primary moving
average of the active chart. The number of standard deviations is adjustable. Adjusting the
moving average will also change the bands. A 20 day moving average works best on daily
graphs and a 10 week works best on weekly graphs. The following two examples illustrate
common usage of these bands.
In this example, point A illustrates "coiling",
a narrowing or compression of the volatility.
Like putting a lid on a pot of boiling water, the
pressure builds and the security will "explode"
in one direction or another. Usually, the buy or
sell signal comes when the security closes
outside of the bands as it did at point B.
Normally, it will then "stair-step" in the same
direction (point C), test support at the moving
average (point D) and finally test resistance at
the band again.
When coiling and stair-stepping are not present,

this is an indication of a sideways or trading
market. Buy at the lower band, sell at the upper
band and place stops on a close outside of either
band. In the second example, you would buy at
point A, sell at point B, buy at C, sell at D, be
stopped out at E and re-enter Long at point F
when it tested support at the moving average.
Volatility trading bands are an excellent short
term trading tool. No indicator is correct 100%
of the time, however, studying previous market
behavior in relationship to this tool will display
its value.
%Bands
Percentage bands are created by calculating a percentage change from the moving average.
The bands are plotted above and below the primary moving average of the active chart. The
percentage is adjustable. Adjusting the moving average will also change the bands.
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Keltner Channels
Keltner Channels were first introduced in the book How To Make Money in Commodities by
Chester Keltner. Like our volatility bands and percent bands, they are comprised of three lines
which form an envelope. Envelope theory holds that price has the greatest probability of
falling within the boundaries of the envelope. Price falling outside the envelope boundaries is
considered an anomaly and therefore provides a trading opportunity. The major differences
between envelope types is in the calculation of the lines, in the spacing between the lines (i.e.,
bandwidth) and how they are interpreted.
Construction of Keltner Channels is straightforward. The middle band is a moving average of

the pivot point (C+H+L)/3). To create the outer bands, we make a simple moving average of
the high minus the low, then add that value to middle band to form the upper channel and
subtract that value to form the lower channel.
Keltner designed his system to be used as a breakout system, buying when the close exceed
the upper channel and selling when the close was below the lower channel. Basically,
penetration exceeding the channels showed a strong bullish or bearish momentum and
presumably the momentum would continue. However, like our VBands, 90% of price
movement occurs within the bands. This means that most of the time, the upper and lower
bands are the extremes of the price movement and are a warning that price exhaustion may
be occurring. Buy signals occur when the price is below the lower band and sell signal occur
when price exceeds the upper band.
These two interpretations seem opposite, however, this is where the addition of additional
analytics can be combined to determine whether a break in the band is the time to buy or sell.
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True Range Oscillator
The oscillator plots the volatility ratio (VR) which is defined as today's true range divided by
the true range of the past 10 periods. A wide ranging day is defined as a day when the VR
exceeds 2.
Our True Range Oscillator was inspired by the work of Jack Schwager, author of "Market
Wizards" and "Technical Analysis on Futures"
True range is used to in DMI and William's AD calculations, among others. It is defined as the
true high - the true low, where the true high is the maximum of today's high and the previous
close and the true low is the minimum of today's low and the previous day's close.
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Directional Studies
DMI
The Directional Movement Indicator was developed by Welles Wilder and introduced in 1978.
It is a very strong indicator of trend, trend direction and impending trend reversal. The
indicator is composed of three values: +DI (plotted as a thin solid line) is a measurement of
positive movement; -DI (plotted as a dashed line) measures negative movement; and ADX
(heavy solid line) measures the strength of directional movement (i.e., the stronger the trend,
up or down, the higher the ADX value).
While the graphic may look complex, the system is relatively simple, when +DI crosses above
-DI, a Long position is taken. The position is reversed when -DI crosses above +DI. Trend
reversals occur concurrently with the first down turn of the ADX after the ADX has crossed
above both of the DI lines.
Wilder also uses what he calls the 'extreme point rule'. Don't buy or sell on the day
the +DI crosses above or below the -DI. Rather, note the high or low of the day.
Then, wait to execute the trade until the price reaches either the high or low, on a subsequent
day, depending on whether the stock is moving up or down.
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Parabolics
Parabolics stops resemble a parabola (hence the name). The system allows for the market to
react for the first few days after a trade is initiated and then the stop begins to move more
rapidly. This makes the stop a function of price AND time. This system is a true reversal
system; that is, every stop point is also a reverse point. Therefore we call each stop a SAR
which stands for "Stop and Reverse".
The formula for calculating SAR...
SAR(t)=SAR(t-1)+[AF * [EP(prior)-SAR(t-1)]]
AF stands for "Acceleration Factor". The AF begins each new trading cycle at .02 and
increases by .02 each time a new high or low is made in the cycle until it reaches .20.
EP stands for "Extreme Price". For the first day of entry (after you are stopped out) the SAR
becomes the EP. If your new trade is a "Long" then the EP is the lowest low achieved in
your previous short position. If your new trade is "Short" then the EP is the highest high
achieved in your previous short trade. As the trade develops, the EP and AF are adjusted if
and only if a new high is made in a long trade or a new low is made in a short trade. Example
for a Long position entered @ 52.20:
Day High Low SAR EP EP± SAR AF AF * DIFF

1 52.35 51.50 50.00 52.35 2.35 .02 .05
2 52.10 51.00 50.05 52.35 2.30 .02 .05
3 51.80 50.50 50.10 52.35 2.25 .02 .05
4 52.10 51.25 50.15 52.35 2.20 .02 .04
5 52.50 51.70 50.19 52.50 2.31 .04 .09
6 52.80 51.85 50.28 52.80 2.52 .06 .15
7 52.50 51.50 50.43 52.80 2.37 .06 .14
8 53.50 52.30 50.57 53.50 2.93 .08 .23
9 52.50 51.30 50.80 53.50 2.70 .08 .22
10 51.30 50.50 51.02 - Stopped & reversed @ 51.02
SAR becomes EP (53.50) EP is reset to newest Low (50.50)
10 51.30 50.50 53.50 50.50 3.00 .02 .06
11 51.00 50.00 53.44 50.00 3.44 .04 .14
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Trendsetter Movement Index (TMI)
Typically the average daily range will increase or decrease before a major market turn. TMI
measures range oscillation to spot critical turning points. Reversal signals appear when the
value of TMI exceeds 80 and peaks or falls below 20 and bottoms. At that point, we take the
opposite direction of recent price activity. In our example below, we achieve a reversal signal
the beginning of October, just before Apple's price turns. Because price activity is falling, we
take a long position. Entry signals occur infrequently, but are rarely wrong when they do.
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Moving Averages
A moving average is a method of calculating the average value of a security's price over time.
The term "moving" means that the average changes or moves as new prices are posted to the
chart. Pro Analyst calculates and displays three types of moving averages: simple;
exponential; and weighted.
A simple moving average is calculated by adding the prices for the past n periods, then
dividing by n.
An exponential moving average is calculated by adding a percentage of today's price to the
reciprocal percentage of the previous day's average. The percentage is based on the
smoothing established by the user using the following formula...
percentage = 2 / (smoothing + 1) reciprocal percentage = 1 - percentage
A 10 period exponential average = (today's price * .18) + (previous day's average * .82)
A weighted moving average is calculated by multiplying each day's price by the it's day
number, then adding the values and dividing by the sum of the weights. A four day weighted
average would add the first day's price times one, plus the second day's price times two, plus
the third day's price times three, plus the fourth day's price times four, then divide the sum by
ten (1 + 2 + 3 + 4). As the name implies, a weighted average, weights the most recent price
data more heavily in the calculation of the average price.
All charts may include from zero to three moving averages. In addition to the type of moving
average, you can select the period of smoothing and the type of price data used to calculate
the moving average(s). User preferences, such as these, are stored independently for each type
and time-frame of chart. Smoothing factors are assumed to be in the time frame of the chart.
For example, a 20 period moving average is 20 days on a daily chart, and 20 weeks on a
weekly chart. To turn a moving average off, set its smoothing to zero.
A common method of analysis is to look for crossovers. A crossover occurs when a shorter
term moving average crosses over the longer term moving average. By this method, the
trader would buy when the shorter average is above the longer average and sell when it
crosses back. This method works well when markets are trending in one direction.
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Trend Studies
Automatic Trend Lines
Identifying the trend and the magnitude of the trend are the key to chart analysis. Pro
Analyst will identify and draw primary, secondary and minor trend lines on your daily chart.
The default periods used for these lines are 30, 20 and 10 weeks respectively. The primary
lines are drawn two pixels thick (for identification purposes). The other two pairs of lines are
drawn in shorter lengths.
In our example, the intermediate and long term trend lines had formed a parallel channel
which has just been broken (a shorting opportunity). This was further forecast by the short
term trend which had resolved a downward sloping wedge by breaking through support a
few days before.
Manual Trend Lines - Draw Your Own
To draw your own trend lines, hold the Shift key down and drag your mouse. Manually
drawn trend lines are automatically stored when you close the chart window. To remove
trend lines, one at a time, hold the Shift and the Control key down and click on the line to
be removed. To remove all trend lines with one command, hold the Shift key down and
select Clear from the Edit menu. There is no limit to the number of manually drawn lines
that can be stored and displayed.
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Least Squares
Linear regression is a statistical model used to measure trends. The model produces a center
line, or equilibrium price, around which prices will fluctuate; and buy and sell lines that define
the range of projected price fluctuation based on previous volatility forming a linear regression
channel. The least squares method is used to plot the lines, hence the name. In theory, 90% of
all prices will fall between the buy and sell lines. Long term investors can buy with a
minimum of risk when the price approaches the buy line and sell with maximum reward at
the sell line. Pro Analyst calculates and draws all three lines for you. Each chart is analyzed
for the period displayed, changing the zoom level or analyzing daily versus weekly, will
change the positioning and may even change the direction of these lines.
As one of the accepted standards in determining trend direction and whether current prices
are overbought or oversold, Personal Hotline uses this tool to calculate a "Regression" rating
during Master Analysis. The rating is a measurement of where the current day closed in
relationship to the center line (median). As we move towards the lower line (oversold) the
rating will approach 100. As we move towards the upper line (overbought) the rating will
approach -100. As prices can exceed the outer line boundaries, the ratings can exceed ±
100.This rating can then be used for ranking.
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Key Chart Points
Key points are defined as highs that are higher than the high for the 3 days prior and post the
reversal (the converse is true for lows). They are displayed as circles on the bar charts. By
definition, you will not see a key point until at least three days after it occurs. This makes it a
lagging indicator. Lagging indicators (moving averages are another) are useful for confirming
that your positions are correct. Key points are also useful in learning to draw trend lines. Like
connect the dots, you can draw trend lines by connecting the circles.
Gann Lines and Gann Angles
William Gann (1878-1955) developed a unique combination of geometric and mathematical
principles, which he applied to trading stocks and commodities. The proportional relationship
of time to price was the basis for much of Gann's work.
Gann attributed special significance (in relation to time) to 3 sets of numbers.
The number 7 and it's multiples (i.e., 7, 14,17) with special significance given to 49 (the square
of 7) and 77 (e.g., the 49th day, week or month from a previous top or bottom would project
a trend reversal). Interestingly, Gann lived to be 77 years old.
The numbers 12 and its multiples were also considered important. There are 12 months in a
year, 24 hours in a day (2 x 12), 60 minutes in an hour and 60 seconds in a minute (5 x 12),
180 degrees (opposition) is 15 x 12 and 144 (12 squared) is a Fibonacci number. Finally, 30 x
12 is 360, the number of degrees in a circle.
Which brings us to Gann's third set of time numbers, the harmonics of circle, 30, 45, 60,
90,120, 135, 150, 180, 210, 225, 240, 270, 300, 315, 330, and 360 days, weeks, months, etc.
In case you are wondering, over 30% of all numbers fall into one of these categories, inviting
skepticism to statistical significance when he is right. Two parts of his work do seem to have
important correlation to price movement. Gann Lines and Gann Angles
Gann Lines are potential retracement levels generated by dividing a market advance or
decline into eighths and thirds. As Gann attributed the most significance to the 37.5%, 50%
and 62.5% levels, these lines are drawn heavier.
Finally, price and time come together in Gann angles, which project trend lines from
important tops or bottoms. All of Gann's angles are quoted in price to time relations, (i.e., 1 x
8). Translated, this means move 1 unit of time to the right and 8 units of price, up or down.
The angle representing price and time in balance is 45 degrees (1 x 1, price to time). To Gann,
this was the most important angle. Other important angles, in order of importance are: 2 x 1
and 1 x 2, 4 x 1 and 1 x 4, 8 x 1 and 1 x 8. These lines are drawn down from the top or up
from the bottom.
Important turning points are often found when Gann lines and angles meet. Note the action in
late November, mid-January and mid-February (see example).
Gann lines and angles can be selected independently or together. Pro Analyst will
automatically select the significant high and low for both angles and lines. Once the indicator
is displayed, you can change the significant high and low of the indicator by double clicking
on the main body of the chart.
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Fibonacci
Leonardo Fibonacci lived in the thirteenth century. His work on the relationship of
mathematics and nature has been applied in physics, astronomy and engineering. Many
famous market analysts believe that Fibonacci principles apply equally as well to markets and
market psychology.
The Fibonacci number sequence is created by adding the last two numbers in the sequence to
create the next number (i.e., 1,1,2,3,5,8,13,21,34,55,89,144… ∞). The first three numbers in
the sequence are normally dropped for analysis purposes. The number sequence creates some
interesting mathematical relationships. The most commonly used are: the ratio of any number
to its next higher number which approaches a constant value of .618 (e.g. 34/55 = .618, 55/89
= .618); the ratios of alternate numbers which approach a constant .382 (e.g. 21/55 = 382,
34/89 = .382).For those that are mathematically inclined, .382 is also the inverse of .618 (i.e.,
1- .618 = .382).
The number series and its ratios are used to create four indicators…
Time lines are vertical lines drawn at fibonacci intervals from the significant high or low of the
current trend. The first line is drawn five days after the significant high or low which is circled.
In theory, future turning points should coincide near these time lines. Note how the significant
low was made exactly 55 days after the significant high.
Fibonacci Ratios are horizontal lines drawn using the ratios .618, .5 and .382, from the same
high or low point. These lines are often useful in identifying retracement points when you
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have missed entry. In our example, Soy Beans found resistance at the 50% ratio on the 89th
day after the significant high was made.
Fibonacci Fan lines are drawn using the ratios .618, .5 and .382, from the same high or low
point. An invisible vertical line is drawn through the second extreme value. This vertical line is
then divided into three using the fibonacci ratios. Three trend lines are then drawn connecting
the first significant point and each of the dividing points on the invisible line.
Arcs combine time and price to display expected containment of price action over time.
Circles are used to identify the significant high and low used for these indicators. Note how
prices found support, after the significant high at the outer arc.
Many analysts use arcs and fan lines together expecting significant support or resistance to
occur where these lines cross.
Pro Analyst will automatically pick the significant high and low when any of the Fibonacci
tools are requested. Once the indicator is displayed, you can change the significant high and
low by double clicking on the main body of the chart.
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Speed Resistance Lines
This study divides price movement into thirds for support and resistance identification. Pro
Analyst will automatically pick the significant high and low. Once the indicator is displayed,
you can change the significant high and low by double clicking on the main body of the chart.
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Andrew's Pitchfork (Trident)
This trend study is composed of three lines resembling a pitchfork or trident. The outer two
lines form a parallel channel based on a significant high and low. The third line bisects the
channel. As with all trend studies, the idea is to project support and resistance. Pro Analyst
will automatically pick the significant high and low. Once the indicator is displayed, you can
change the significant high and low by double clicking on the main body of the chart.
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Volume Studies
On Balance Volume
Developed by Joe Granville, OBV checks the relationship of today's close to yesterday's close
and then weights the volume accordingly. If a security closes up, 100% of that day's volume
is added. The theory is that the trend of this indicator precedes price changes. If a security
closes down, 100% of that day's volume is subtracted. The summing process amasses data
from many, many days, minimizing the impact of any one day. In theory, when OBV is rising,
the security is in an accumulation phase. When it is falling, it is in distribution. The scale is not
of any value; only the slope (i.e., the direction) of the line is of value.
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Volume Bars
Our standard Volume display is in histogram form. A moving average of the volume is
displayed over the histogram. Data series that contain open interest, such as futures' contracts,
will also display a patterned line. Up versus down volume color controls are also available.
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Volume Accumulation
Developed by Marc Chaiken, VA checks the relationship of the close to the mean price of the
day and then weights the volume accordingly. If a security closes on its high, VA is 100% of
that day's volume. If a security closes on the low, then VA is -100% of that day's volume. If
the security closes at the mean of the day, VA is zero. If we close half way between the mean
and the high then VA will be 50% of that day's volume. VA is normally smoothed (moving
average) before display. Ten periods is standard.
94
Force Index
Developed by Dr. Alexander Elder, this oscillator combines price and volume in a similar
fashion to OBV. The formula is Volume * (close - previous close). FI creates a moving
average of this information versus the accumulation of OBV. Dr. Elder provides a full set of
trading rules in his book "Trading for a Living". In essence, as with all oscillators, we watch
for price/oscillator divergence, trend changes. Beyond those rules, the oscillator will be above
zero when the bulls are in control of the market and below zero when the bears are in
control. Spike bottoms and tops normally indicate trend changes.
The default smoothing for the Force Index is 13 periods. To change the smoothing: click in
the scale area of the index (far right). Dr. Elder also suggests viewing the index with a 2
period smoothing.
95
Program Defaults
Double clicking on any security in the Quote Monitor will open a window to display a chart
of that security. The type of chart or information display is user definable. This brings us to
the next dialog in the Edit menu, Program Defaults.
There are currently six set-up features in the General Definitions dialog. Each is defined
"Globally". That means they apply to any List, chart, or security.
1. What we will display when you double click on a security in your List; a Bar chart, a
Candle chart, or a Line chart and what will the default time frame be.
2. What font size do you want displayed on your charts. The font size affects the data
information line that appears across the top of the monitor and the scaling down the
side. Default is 9 point type.
3. When we draw a chart, how much blank space do we leave between the last bar or
candle and the Y-Axis scale? The default is 10.
4. When you click in the corners of a daily, weekly or monthly chart, do we move the
chart by a day, week, month, year, half-page or full page. You define how much the
chart will move with this control.
5. MACD can be displayed in either a histogram view or the traditional double line display.
The display can be flipped once drawn by clicking in the scale area of the MACD. This
next control allows the user to define which display is viewed first.
6. Rate of Change can be displayed in either a histogram view or a single line display. This
next control allows the user to define which display is viewed first.
96
Colors
Pro Analyst allows you to control the color of virtually all elements of your charts and
analysis. You can turn off many of these lines by setting their respective colors to match the
color of the background. This dialog should be self-explanatory.
Other display characteristics are available by double clicking on the chart. Color controls for
the Quote Monitor are available by selecting Ticker Tape from the Edit menu.
97
Reference Section
File Menu
New… (Off Line)
Creates a new List. Lists are groups of data files ranging in size from one to 500 symbols.
All securities added to a List must be in the same folder as the List. When you select New
the program will request the name of the new List to be created. After naming the List
and selecting the folder where it is to be created, press Save. The program will present the
List Modification window to facilitate the addition of existing security files to the new List.
After adding existing securities, press OK.
Open… (Off Line)
Loads an existing list.
Close Window
Closes the active window.
Close All… (shift-option Close Window)

Hold the shift and option keys down, then pull down the file menu and select Close All to
close all open chart windows.
Close Related… (option Close Window)

Hold the shift and option keys down, then pull down the file menu and select Close All to
close all open chart windows whose symbol matches the active window.
Save
Will force Pro Analyst to save changes to your List immediately instead of waiting until
you Quit or open another List. This is recommended after adding, or deleting data files.
Save As… Quote Monitor in Front
When the List (Quote Monitor) is the front window, Save As will save the current List
with the name and location you specify. If you save the list into a different folder, all data
files referenced by the List will be copied into this folder.
Save As… Graph in Front
When a Graph or Time & Sale Display is the front window, Save As will export the data
as a tab delimited text file with the name and location you specify.
Modify… (Off Line)
Select the List to be Modified and press Open. Double Click on items to be added or
deleted from the List. Press OK to open the modified List.
98
Delete
Use this function to permanently delete data files, as if you had dragged them to the Trash
and emptied it. To minimize the possibility of "trashing" the wrong file, Pro Analyst will
give you an extra opportunity to change your mind by displaying a special Alert. The
selected file will simultaneously be removed from the List.
Recover (Off Line)
The Recover function will rebuild the selected data file, omitting data that is outside the
selected date range and duplicate dates within the valid date range. This can be used to
remove extraneous data from the beginning, end or middle of a file. Recover also checks
highs and lows for validity as it is rebuilding. A copy of the original file is created before
rebuilding.
Update Intraday (Online)
The Update Intraday function will request today's intraday data for the selected
security, replacing any partial data stored for that day.
Update All (shift-option Update Intraday)
Hold the shift and option keys down, then pull down the file menu and select Update All.
When you are online, Pro Analyst will request intraday data for all securities from the
current selection to the end of the List.
Recover All (shift-option Recover)
Hold the shift and option keys down, then pull down the file menu and select Recover
All. When you are off line, the program will rebuild all file in the current List using the first
and last dates in each file to determine the valid date range. Copies of the original files are
not made.
Update Histories
Requests end-of-day data from the server bringing all histories up-to-date. If you have a
Dial Data account, This menu selection will launch a helper application to retrieve longer
term histories
Export
Will export historical data from a single file or the entire list into a tab or comma delimited
text file with the name and location you specify.
Export One
Will export today's data from the active list into a text file named export.
Text Viewer…
Will present any text file for display (max. size 32K).
Quit
Exits to the finder and request's permission to save changes to the current list.
99
Edit
Copy
When the active window is a chart, this menu item will copy the window contents to the
clipboard.
Clear
When the active window is a chart, this menu item will remove all studies from the chart.
When modified with the shift key, this menu item will clear all manually drawn trend lines
from the chart. When modified with the control key, this menu item will clear all
manually drawn drop lines from the chart. When modified with the shift and option
keys, this menu item will clear all manually drawn drop lines, trend lines and studies from
the chart.
Cut, Paste, Select All
These menu items are for use with TextViewer, Trader's Journal and Help windows only.
Server Info
Enter or modify information related to connecting to the server for live information
including account name, password, hours of automatic operation, and coming holidays.
Ticker Tape
At the bottom of your main screen is a split ticker tape window. Last trade and trade size
are scrolled continuously as they are received. You can slow the ticker down by turning
off groups of securities. For example, you can exclude indices and options. You can also
define minimum volumes for stocks and options to appear in the ticker tape. Quotes that
are excluded from the ticker tape are still displayed in the quote monitor and stored for
analysis. Changing the ticker tape set up affects the tape only. The last option, Alerts &
Positions Only, will only send quotes to the ticker tape where you have indicated that
you have a position or you have set alerts.
Alerts
Fill-in your alerts and/or current position then press Next to move to the next security in
your List or Done if you are finished.
Alerts Sounds (option Alerts)
Define the sounds used to notify you for automatic alerts.
Default Studies
Preset which technical studies you want displayed when a chart initially draws. This dialog
allows you to define different default charts for each time-frame.
Study Smoothings
Through this dialog you can set personal preferences for moving averages, MACD and
other technical studies. This dialog allows you to define different smoothings for each time-
frame.
Colors
Pro Analyst supports your choice of 132 colors used for graphic displays.
100
Program Defaults
Define personal chart display preferences that affect all charts such as the type of chart
(bar, candle or line), and the default time-frame when you double click on a symbol in
your List.
MarketPulse
Define which MarketPulse reports you want included in our request to the server.
101
Charts
Charts analyze an instrument's performance over time and can display their information in
either line, bar or candlestick form. The time frame of a chart refers to the amount of time
each bar or candle represents. A 5 minute chart in Pro Analyst can cover 2 or 3 weeks of
market activity where each point in the chart represents 5 minutes. All charts, regardless of
time-frame update with each new trade when you are online.
Daily, weekly and monthly charts are built from end-of-day data stored within each
securities data file. Today's data is added to the end of the chart when you are online.
5 minute thorough hourly charts are built from data stored in the Intraday file.
Data for one minute charts is requested from the server. The time necessary to build this
chart will vary depending on the speed of your connection and the time of day. The later
we are in the market day, the longer it will take to retrieve the data. While we are waiting
for the data, this menu option will be disabled since we can only request data for one chart
at a time.
Tick data is stored in memory only. This makes these charts fast to draw but limits the
amount of data available.
Intraday charts (all charts shorter than daily) are available when you are online only.
Suite
Our Chart Suite feature is the same as a layout except it does not pertain to any symbol.
To use this feature, simply select a symbol then select Suite. If you select Suite when a
graph is the front window, the program will ask if you want to re-define the Suite
definition based on the current set of open graphs. You can re-define the chart suite
definition as many times as you want.
Analysis
All studies are drawn to the active graph, therefore, items in this menu are gray unless the
active window contains a graph. Re-selecting the same menu item acts as an Undo
command.
See the Technical Tools chapter of the Technical Analysis and Charting section for a
detailed discussion of the use and interpretation of each analysis study.
102
Windows
Tile
Re-sizes and moves graphic windows so they are equal in size and use as much screen
space as possible. For example, 2 graphic displays will each take half the screen, 4 graphics
displays will each use 1/4 of the screen. Odd numbers are treated the same as the next
even number higher (e.g., 3, 4 are the same).
Stack
Re-sizes and moves graphic windows to use as much screen area as possible while allowing
a small overlap both horizontally and vertically. This facilitates clicking to change active
windows. Actual size will depend on the number of windows open at any given time.
Layouts
A layout is a combination of window size, placement and contents. To save a layout,
simply set your graphic windows up the way you want them, then select Save Layout
from the Windows menu. Name the layout in the dialog provided and press Save. To
recall the layout, simply select Use Layout from the Windows menu and select the
named layout.
Zoom In
Increases detail and decreases total data displayed in the active window. Default zoom
levels can be set using SetUp Charts from the File menu. Clicking in the center section
of the date line lets you reset the zoom level.
Zoom Out
Decreases detail and increases total data displayed in the active window.
Size, Style and Font Menus
These menus are currently used for text based windows only. These include the
QuoteMonitor, Headlines, News, Trader's Journal and TextViewer.
Quote Monitor (Window 0)
Bring the Quote Monitor window to the front.
Graph 1-9
Bring selected window to the front (making it active).
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List Mgmt
Sort & Rank- reorder the List by the criteria chosen.
Sort Menu Description Rank Column

Symbol Alphabetical by Symbol No Affect
Name Alphabetical by security name No Affect
Type Sort by type of security (e.g., stock, index, future) shows type
Sector Sort based on user definable sectors. shows sector name
Updated Sort the List by the last date updated. shows date
Last Saved reverts to the order last saved No Affect
Rank Menu Description Rank Column

Net Change Rank by the net change from the previous day. No Affect
% Change Rank by the percentage net change from the prev. day Shows Percentage
YTDH Rank by current price in relationship to 52 week high Shows Percentage
YTDL Rank by current price in relationship to 52 week low Shows Percentage
YTD Range Rank based on 52 week range Shows Range
Most Active Rank based on current volume No Affect
Open Int. Rank based on current open interest No Affect
% Change Vol Rank based on percentage increase in volume. Shows Percentage
EPS Rank based on earnings per share. Shows EPS
P/E Ratio Rank based on price divided by earnings per share. Shows P/E
Dividend Rank based on dividends. Shows Dividend
High Alert Rank based on relationship of current price to alert. Shows Alert
Low Alert Rank based on relationship of current price to alert. Shows Alert
Profits Rank based on current profit or loss of your position Shows P/L
Size Rank based on current value of your position Shows Value
Find…
Search your List by file name or symbol. Selected file will be moved to the top of the
Quote Monitor without altering the order. The Find dialog will search open charts if a
chart is the front window when activated.
Add Security
Add any type of security to the active list.
Modify Security
Reset symbol, security type, tick and display format for securities in your active List.
Remove Security
Remove any security, without deleting the data, from the active List.
Edit Data
Selecting Edit Data allows you to edit the last end-of-day record for any file in your List.
104
Delete Data
Delete the last end-of-day record from the selected file only.
Block Delete
Deletes n number of records from the end of each file in the List or from the selected
security.
Next
This menu selection changes the current graph to the next symbol in your list.
Previous
This menu selection changes the current graph to the previous symbol in your list.
AutoRun…
Will display a new series of charts on a user selectable timer. The timer can be overridden
with the Next and Previous menu selections or canceled by re-selecting AutoRun or
pressing .. Analysis menu selections do not interrupt the AutoRun sequence. This means
you can add or delete studies from charts in between their display.
Special
Split…
Will split all data records up to but not including the date entered.
Rollover…
Adjust all previous data records up to and including the date entered. Designed for
creating perpetual futures' contracts, many Mutual fund traders find this tool useful for
adjusting fund prices after a distribution.
Trader’s Journal
Allows for date stamped entries into each file. Use it to make notes about your trades,
emotions or analysis.
Start/Stop Monitor
Override the automatic timer to start or stop the connection to the server.
QuickQuote (online only)
Display a detailed quote of any symbol .
Headlines (online only)
Begin displaying headlines. Select the headline numerical ID to read full news story.
News Search (online only)
Search news for stories related to the selected stock..
MarketPulse (online only)

Request market leaders and statistical information by market.
Enable/Disable AutoPilot
Turns on/off the automatic timed monitoring feature.
105
Special Keys and Key Combinations
Some of the functions of the software may be modified through the use of the Shift, Option,
and Control keys. Wherever possible, these keys modify functionality in a similar fashion. For
example, the Shift and Option keys together will affect the full list versus a single security as
in closing all windows. Modifier keys are not recognized unless you use the mouse to make
your menu selection. You must have the keys down before you pull down the menu.
Most menu titles are altered to indicate the modified functionality of these special keys.
The following menu options may be modified with these keys.
File Menu
Shift-Option Close Window (Close All) will close all windows.
Option Close Window (Close Related) will close all windows whose symbol matches the
symbol in the active window.
Edit Menu
Shift Clear will remove all manually drawn trend lines.
Control Clear will remove all drop lines.
Shift-Option Clear removes all studies, manually drawn trend lines and drop lines.
Charts Menu
Shift Key forces new chart into active window instead of opening a new window.
List Mgmt Menu

Shift-Option Edit Data (Add Holiday) adds a Holiday to each of the securities in the list.
Holidays leave an extra space in the chart where they occurred.
Function Keys
F1 -> Charts menu, 5 min
F4 -> Charts menu, Hourly
F9 -> Open or bring to the front Trade Tracking Window

F10 -> Open or bring to the front the QuickQuote Window
F11 -> Open or bing to the from the Headline News Window
F12-> Toggle Quote Monitor between names and symbols
106
The following non-menu functions may also be key modified…
1. Hold the shift key down and drag your mouse to draw your own trend lines. Trend lines
are automatically stored with the chart. To remove all previously drawn lines...hold the shift
key down and select Clear from the Edit menu. To remove a specific line, hold the shift
and control keys down and click on the line to be removed.
2. Hold the option key down to track the price and date of the mouse location.
3. Hold the shift and option keys down and drag your mouse around an area of the chart
body to zoom in on that section of the chart. The new zoomed view will be displayed in its
own window.
4. Hold the control key down and drag the mouse to turn the cursor into a giant crosshair.
All legends will update as you move the cursor within the price area of the chart. Release the
mouse button within the body of the chart to leave horizontal and vertical drop lines on the
chart. Release the mouse to the right of the Y axis (scale area) to turn off the tool without
leaving lines. To remove all previously drawn drop lines...hold the control key down and
select Clear from the Edit menu. To remove a specific line, hold the option and control
keys down and click on the meeting point of the drop line to be removed.
5. Hold the Shift and Control keys down to remove a specific manual trend lines.
6. Hold the Option and Control keys down to remove a specific drop lines.
The following key equivalents are a combination of the Option and the keys.
Windows Menu
Option-Command / appears in the menu bar as ÷ (Tile)
Option-Command \ appears in the menu bar as « (Stack)
Option-Command > appears in the menu bar as ≥ (Zoom In)
Option-Command < appears in the menu bar as ≤ (Zoom Out)
Break Response
. may be used to exit certain routines early. The effect will vary on which routine is active.
AutoRun - current procedure will be finished, then AutoRun will be terminated.
Opening a List - stop loading list immediately. All items currently loaded will be displayed
for your use and manipulation. As list was not completed, it will be opened as an Untitled list.
Split - cancel the operation.
Rollover - cancel the operation.
Recover - cancel the operation.
107
Appendix A Glossary
Ask - Price which sellers are asking.
At-the-money - Strike Price is equal to security price (options).
Bid - Price which buyers are bidding.
Box size - Minimum fluctuation on Point & Figure chart.
Call - The right, but not the obligation, to purchase a specific security or index at a specific
price (strike price) within a specified time (expiration date).
Channel - Range in which stock prices fluctuate.
Commodities - See Futures Contract
Contract - alternative term used for puts and calls as well as futures.
Covered Call Write - A strategy in which one writes (sells) call options while simultaneously
owning an equal number of shares of the underlying security.
Covered Put Write - A strategy in which one writes (sells) put options and simultaneously is
short an equal number of shares of the underlying security.
Discounted information - Impending news has been incorporated into current stock price.
Down loading - Transmitting data between computers.
Drawdown is a calculation of the cumulative maximum loss sustained by a trading model
(i.e., how deep do my pockets need to be). An example should help.
Trade # Profit/Loss Cur Drawdown Max. Drawdown Net Profit
1 $1000 0 0 $1000
2 ($500) $500 $500 $500
3 $200 $300 $500 $700
4 $2000 0 $500 $2700
5 ($200) $200 $500 $2200
5 ($500) $700 $700 $1500
6 $1000 0 $700 $2500
In the example above, if you started trading with a model at the worst possible time (trade #5)
you would have sustained a loss of $700 before you had your first profitable trade.
Expiration date - This is the date on which an option expires. If an option has not been
exercised before expiration, it ceases to exist. The expiration of all equity options is Saturday
following the third Friday of the expiration month.
Fundamental Analysis - Analysis based on factors such as earnings' reports, balance sheets,
product and economic climate.
Future's Contract - A standardized contract calling for the delivery of a specified quantity of a
commodity at a specified date in the future.
108
Gaps - Blank areas left in charts created when the stock price jumps up or down from the
previous day.
Implied Volatility - A measure of the volatility of the underlying security using current market
prices rather than historical data on the price changes of the security.
Index - Composite value of more than one stock used to track overall market performance.
Examples are the Dow Jones Industrials, which is composed of 30 stocks and the S & P 500,
which is composed of 500 stocks.
In-the-money - Strike price is below the price of the underlying security for a call or above
the price for a put.
Intrinsic Value - The value of an option if it was to expire immediately with the underlying
security at its current price. For a call, this is the difference between the stock price and the
strike price, if that difference is a positive number, or zero otherwise. For a put, it is the
difference between the strike price and the stock price, if that difference is a positive number,
or zero otherwise.
Leverage - In investments, the attainment of greater profits (on a percentage basis) due to a
relatively small cash outlay versus the value of the purchase. For example, a homeowner
controls a $100,000 investment for a $20,000 down payment. If the property goes up in value
by 20%, his return on his investment is 100%.
Limit order - A trading order, which sets a limit on price or time of execution or both. Limit
orders (as contrasted with stop orders) do not become market orders.
Listed Option - An option that is traded on a national option exchange.
Long - Position that the market or an individual security will rise in price.
Margin - Buying securities on credit.
Margin call - A demand for additional funds after a decrease in value of margined securities.
Market order - A trading order to execute a trade at the most favorable available price, as
soon as possible.
Moving average - An average of prices over a specific period. That is, a 10 day moving
average, averages the past 10 days of prices, on the eleventh day, the first day is dropped and
the new day is added, and then a new average is calculated. The moving average has the
effect of smoothing price fluctuations.
Open Interest - the number of contracts currently available to trade (Futures & Options).
Open position - A long or a short position that has not been extinguished by an offsetting
trade or delivery.
Option - See Call and Put.
Out-of-the-money - Strike price is above the price of the underlying security for a call or
below the price for a put.
Overbought - means too high, ready to turn down.
109
Oversold - means too low, ready to turn up.
Penny stocks - Stocks which trade for less than a dollar.
Pink sheet - Stocks that are too small to be listed on a major exchange are listed on the pink
sheets.
Premium - This is the price that the buyer of an option pays for the rights conveyed by the
option. Premiums are subject to continuous change in response to such variables as the
relationship between strike price and current market price of the underlying interest (intrinsic
value), the volatility of the underlying interest and the amount of time remaining until
expiration (time value).
Put - The right, but not the obligation, to sell a specific security or index at a specific price
(strike price) with in a specified period (expiration date).
Real Volatility - A measure of the amount by which an underlying security is expected to
fluctuate based on historical price data.
Regression Rating - designed to allow you to "visualize" where prices are in relationship to the
three parallel lines of our Least Square tool. The rating is a measurement of where the current
day closed in relationship to the center line (median). As we move towards the lower line
(oversold) the rating will approach 100. As we move towards the upper line (overbought) the
rating will approach -100. As prices can exceed the outer line boundaries, the ratings can
exceed ± 100.
RSI - Relative Strength Index. A momentum oscillator that indicates velocity of directional
price movement.
Resistance - Price at which there are more sellers than buyers causing the price of the stock to
fall.
Risk/Reward Ratio - For every dollar risked, the potential reward.
Secondary stocks - Smaller listed companies. These stocks generally carry more long term
risk for the investor and in turn, more potential reward.
Short - Position that the market or an individual security will fall in price.
Spread or straddles - The taking of both long and short positions with respect to the same or
related securities or indexes but at different strike prices or in different expiration months.
Statistical Ratings - a numeric rating based on a combination of the studies reported in the
Master Analysis worksheet. Each indicator is checked for direction and momentum and
assigned a numeric rating. If an indicator is positive, points are added. If an indicator is
negative, points are subtracted. Securities with a high positive or a large negative rating may
be ready for action and deserve close scrutiny.
Stops - An order given to a broker to execute a trade when market price reaches the specified
stop order price.
Strike price - The price at which the purchase of a call or a put has the right to buy or sell
(respectively) the underlying interest.
110
Support - Price at which there are more buyers than sellers causing the value of the stock to
rise.
Technical analysis - Forecasting method based on historical price movements.
Tick - Minimum fluctuation for a given security. For example, Bonds trade in 32nds while
most stocks trade in eighths.
Time Value - The difference between the premium paid for an option and the intrinsic value.
As the option approaches expiration, the time value is eroded, eventually to zero.
Theoretical Volatility - see Real Volatility
Trader - A speculative investor who makes frequent purchases or sales.
Trading Band - Width of upper and lower trend-lines expressed in ticks.
Trend - General direction of price movement.
111
Appendix B Suggested Reading List
To view an updated suggested reading list or to purchase any of these books at a discount, please visit
http://www.Trendsoft.com/books
As a general rule, books published by New York Institute of Finance, John Wiley & Sons or Business One
Irwin are worth reading and priced fairly.
Japanese Candlestick Charting Techniques, Steve Nison

New York Institute of Finance 1991
Options as a Strategic Investment, Lawrence G. McMillan

Technical Analysis of the Futures Markets, John J Murphy

Technical Analysis Course, Thomas A. Meyers

A Winning Program for Stocks & Futures
Probus Publishing, Chicago 1989
Handbook of Investment Products And Services, Victor Harper

Commodity Spreads, Techniques & Methods, Courtney Smith

John Wiley and Sons, NY 1982
Extraordinary Popular Delusions and the Madness of Crowds, Charles McKay

L.C. Page, London 1932
Technical Analysis of Stock Trends, Edwards & MaGee
Technical Trader's Guide to

Computer Analysis of the Future's Market, LeBeau & Lucas
Business One Irwin, IL 1991
New Concepts in Technical Trading Systems, J Welles Wilder

Trend Research, NC 1978
The New Commodity Trading Systems and Methods, Perry J Kaufman

John Wiley & Sons, NY 1987
Trading for a Living, Dr. Alexander Elder

John Wiley & Sons, NY 1993
Commodity Trader's Almanac, Frank A. Taucher

Market Movements, Inc.
112
Appendix C Futures Contract Information
Commodity Exch. Sym Tick 1.00 = Commodity Exch Sym Tick 1.00=
Grains Grains
Wheat CBOT W .25 50 Wheat KC KCBT KW .25 50
Corn CBOT C .25 50 Wheat MN MGE MW
Oats CBOT O .25 50 Barley WGE B
Soy Beans CBOT S .25 50 Flaxseed WGE F
Soy Meal CBOT SM .10 100 Canola WGE WR
Soy Oil CBOT BO .01 600 Corn Crop Yld Iowa CBOT CY
Rice, Rough CBOT NR Corn Crop Yld U.S CBOT YC
Meats Foods
Cattle CME LC .025 400 Cocoa CSCE CO .01 1000
Feeders CME FC .025 500 Coffee CSCE CC .05 375
Hogs CME LH .025 400 Orange Juice CTN OJ .01 150
Pork Bellies CME PB .025 400 Sugar CSCE SU .01 1120
Metals Energy
Copper CMX GI .05 250 Crude NYM CL .01 1000
Gold, NY CMX GO .10 100 Heating NYM HO .01 420
Platinum NYM PL .10 50 Nat. Gas NYM NG 1.0 10
Silver, NY CMX SV .10 50 Propane NYM LI
Palladium NYM PA .05 100 Unleaded NYM HU .01 420
HO/Crude Spread NYM HC
Products HU/Crude Spread NYM UC
Lumber CME LB .10 160 Electricity TVA CBT BV
Cotton CTN CT .01 500 Electricity Calif NYM CW
Indexes Indexes
S&P 500 CME SP .05 250 NYSE Comp NYFE NY .05 500
S&P Midcap CME MC .05 500 Value Line KBOT VL .05 500
S&P Mini CME ES .25 50 Nikkei CME NK .05 500
DJ Inds CBT DJ 10 Russell 2000 CME RU .05 500
NASDAQ 100 CME ND .50 100 TOPIX TSE TX
NASDAQ Mini CME NQ .50 Goldman Sachs CME GX
CRB NYFE CR .05 500 Dollar CTN UD .01 1000
Currencies Interest Rates

Australian $ CME AD .01 1250 T Bonds CBOT US 1/32 1000
British £ CME BP .02 625 T Notes 10YR CBOT ME 1/32 1000
Can. Dollar CME CD .01 1000 T Bills CME TB .01 2500
Ger. Mark CME DM .01 1250 Eurodollars CME YR .01 2500
Jap. Yen CME JY .01 1250 Muni Bonds CBOT QU 1/32 1000
Swiss Franc CME SF .01 1250 T Bond Proj A CBOT AB 1/32 1000
EuroCurrency CME EU T Notes 5YR CBOT FV 1/32 1000
Mexican Peso CME MX T Notes 2YR CBOT TU 1/32 1000
Euro/Yen NYCE EJ
Check the original CD and/or our web site for additional symbols...
113
Appendix D Index and Other Special Symbols
Commonly Requested Index Symbols
Description Symbol Description Symbol Description Symbol
Dow Industrials DJI PHLX Airline PLN CBOE Tech Index TXX
Dow Transports DJTR PHLX Box Maker BMX S&P 400 MIDCAP MDY
Dow Utilities DJU PHLX Brit Pound XBP AMEX OIL INDEX XOI
Dow Composite DJC PHLX Forest/Paper FPP CBOE Nikkei NIK
S&P 100 OEX PHLX GOLD/Silver XAU CBOE Mexico MEX
S&P 500 SPX PHLX Oil Service OSX Internet Index INX
Volatility Index VIX PHLX OTC Index XOC
AMEX Composite XAX PHLX Phone Sector PNX
Major Market XMI Semi-Conductor SOX
Nasdaq Composite COMPX PHLX SuperCap HFX
Nasdaq Industrials INDSX PHLX Utility UTY
Russell 2000 RUT NYSE Financial NF
Wilshire Small Cap WSX NYSE Industrial ND
PSE Tech Index PSE NYSE Transport NV
Value Line 300 VLE NYSE Beta NHB
Value Line Indx XVL NYSE Composite NYA
Check the original CD and/or our web site for additional symbols...
Option symbols
Base Stock Symbol + Space + Month code + Strike Code
Code Exchange Month Call Put Month Call Put

C CBOE JAN A M JUL G S
A AMEX FEB B N AUG H T
B PBW MAR C O SEP I U
P Pacific APR D P OCT J V
M NY MAY E Q NOV K W
JUN F R DEC L X
CODE STRIKE PRICES CODE STRIKE PRICES

A 5 105 205 305 405 K 55 155 255 355 455
B 10 110 210 310 410 L 60 160 260 360 460
C 15 115 215 315 415 M 65 165 265 365 465
D 20 120 220 320 420 N 70 170 270 370 470
E 25 125 225 325 425 O 75 175 275 375 475
F 30 130 230 330 430 P 80 180 280 380 480
G 35 135 235 335 435 Q 85 185 285 385 485
H 40 140 240 340 440 R 90 190 290 390 490
I 45 145 245 345 445 S 95 195 295 395 495
J 50 150 250 350 450 T 100 200 300 400 500
114
Appendix E Support
Trendsetter Support Services
Technical Support: (714) 997-9295
If you still need assistance after reading this manual, please call our technical support
department. Answers to your questions are available from 9:00 a.m. to 6:00 p.m. Eastern
Time, Monday through Thursday, and 9:00 a.m. to 5:00 p.m. on Fridays. We are closed on
market holidays.
You may also send support questions via e-mail to: support@trendsoft.com
We try to reply to all e-mail within 1 business day.
Worldwide Web Address... www.trendsoft.com
Please send all written correspondence to:

3419 E. Chapman Ave, Suite 302, Orange, CA 92869
115
System Requirements
• All of our software products are available for the Apple Macintosh only. We maintain both
OS X native and Mac OS versions. For OS X, we require Version 10.2 or later.
• A minimum of 20 MB of free hard disk space is recommended.
• A subscription to a supported data service is required of for intraday operation.
116
Index
%Bands 78 Chaiken, Marc 94
%K %D 66 Chart Appearance 9
%R 68 Chart Controls 25
Add Chart Suite 14, 47
futures contracts 39 Charts Menu
Add Security 37 Bar 55
ADX 81 Candle 10, 62
ADXR 81 Daily 5
Alerts Point & Figure 63
and Tape 100 Closing Windows 106
Automatic 49 Colors 97
Pivot Point 48 Controlled Zoom 25
Setting 18, 57, 100 Creating Data Files 36
Sounds 49, 100 Default Chart 30
Technical 49 Default Settings 25, 55
Analysis Menu Default Studies 29
%Bands 78 Definitions 96
Calculator 50 Deleting Data 41, 99
CCI 75 Deleting Securities 42
Chaikin VA 94 Divergence 66, 67, 71, 72, 75
DMI 81 DMI 81
Fibonacci 88 Double Click 31, 96
Force Index 95 Drag & Zoom 14
Gann 87 Drawdown 108
Keltner Channels 79 Drop Lines 8, 23
Key Points 58, 87 e-mail 115
Least Sqrs 86 Edit Menu
MACD 9, 72 Alerts 18
OBV 92 Analysis 28
Parabolics 82 Clear 8, 23, 85
Percent R 68 Colors 97
Rate of Change 71 Default Studies 9
RSI 69 Definitions 96
Speed Resistance 90 MarketPulse 21
Stochastics 7, 8, 22, 66 Reference 100
TMI 83 Ticker Tape 16, 17
Trend 7, 58, 85 Editing
Trident 91 sector 40
True Range 80 Editing Data 41
TSI 70 Elder, Alexander 95
Ultimate 77 Envelopes 78
VBands 78 Excel 43
Williams AD 76 Exponential Averages 72, 84
Andrew's Pitchfork 91 Export One 43
Appel, Gerald 72 Fibonacci
ASCII 43 arcs 89
Averages 84 defined 88
Block Delete 41 fan lines 89
Bollinger Bands 78 ratios 88
Candle Patterns 47, 62 time lines 88
Candlestick File Menu
displaying 10 Close All 98
interpretation 10 Close Related 98
CCI 75 Close Window 98
Chaiken VA 94 Color 100
117
Delete 42, 99 Control
Export 43 Mouse Click 8, 23, 27, 57
Export One 43 Option
Modify List 42, 98 Mouse Click 27, 57
New List 98 Reference 106
Open List 98 Shift
Recover 42, 99 Mouse Drag 27, 57
Recover List 42 Shift-Option
Reference 98 Close 98
Save 98 Edit Data 104
Save As 98 Mouse Click 27, 57
Text Viewer 99 Quote Monitor 103
Update Histories 99 Recover 42
Update Intraday 99 Modify Security 36
Font Size 96 Modifying Lists 42
Force Index 95 Mouse Actions 26, 55
Function Keys 106 Mouse Tracking 27, 57
Futures 45 Mutual Funds 45
Gann Analysis 87 News 19
Gaps 60 OBV 92
General Preferences 96 One minute charts 102
Granville, Joseph 92 Open Interest 93
Graphs Paper Trading 54
Bar 5 Parabolics 82
Legend 6 Pattern ID 10
Setup 10 Pivot Alerts 48
Types 5 Pivot Points 79
Head & Shoulders 59 Point & Click 10, 26, 55
Headlines 19 Point & Figure
Holidays 104 defined 63
Keltner Channels 79 interpretation 65
Key Points 87 patterns 65
Lambert, Donald 75 Positions 18
Layouts 13, 46 QuoteMonitor 15
Least Sqrs 86 Rank 18
Linear Regression 86 Rate of Change 71, 96
Lines Remove
Drawing 85 option series 39
Drop Lines 23 Rollover 44
List Mgmt Menu RSI 69
Add Security 36 SAR 82
Block Delete 41 Schwager, Jack 80
Delete Data 41 Sectors 37, 40
Modify Security 36 Defining 39
Next 7 Shift&Option
Previous 7 Close Window 13
Rank 7 Mouse Drag 14
Remove Security 42 Simple Averages 84
Sort 7, 104 Sorting & Ranking 18, 104
Lists Special Menu
Adding Symbols 37 Headlines 19
Drag & Drop 19 MarketPulse 20
Sorting 40 Rollover 44
MACD 96 Split 44
Double Line 73 Trader's Journal 54
Histogram 72 Speed Resistance 90
MarketPulse 20 Stochastics 8, 66
Menu Modifiers 13 Stock Splits 44
Suite 14 Volume 92
Technical Support 115 bars 93
Text Viewer 99 Chaiken VA 94
Ticker Tape 16 Force Index 95
Time & Sale 51 OBV 92
TMI 83 Weighted Averages 84
Trader's Journal 51 What If… 27, 57
Trend 7, 53, 67 Wilder, Welles 68, 69, 81
Trend Lines Williams AD 76
Automatic 58, 85 Williams, Larry 76, 77
Drawing Your Own 27, 57, 85 Windows Menu
fibonacci 89 Graphic 7, 22
linear 86 Reference 103
Manual 85 Save Layout 103
point & figure 65 Selecting Charts 6, 22
Trident 91 Stack 12
True Range 80 Tile 12
TSI 70 Use Layout 103
Ultimate Oscillator 77 Zoom Levels 25, 55, 86
Undo Analysis 8
VBands 78

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Table of Contents

How is the Demo Version Different?

List Mgmt Tools

Click on the to expand the default view to...

Hot Trio Display

In our example, we have instructed the

We have also indicated that we are holding

Sorting & Ranking

Headlines and News Stories

You can change the reports we will request

15 minute chart with trend lines and stochastics

The mouse is also used for four other important features…

Adding & Deleting From Your List

Another feature of our QuickQuote...

Backing-up Your Data Files

All calculations update real time.

Technical alerts are those

Set the sound to Silence

Time & Sale

All charts can be converted to time and

To export this information for use in

The mouse is also used for five other important features…

Head & shoulders

"W" Bottom - a powerful reversal pattern

Island Top indicates reversal

Japanese Candle Charts

When coiling and stair-stepping are not present,

Construction of Keltner Channels is straightforward. The middle band is a moving average of

Day High Low SAR EP EP± SAR AF AF * DIFF

Close All… (shift-option Close Window)

Close Related… (option Close Window)

Sort Menu Description Rank Column

Rank Menu Description Rank Column

MarketPulse (online only)

List Mgmt Menu

F9 -> Open or bring to the front Trade Tracking Window

Japanese Candlestick Charting Techniques, Steve Nison

Options as a Strategic Investment, Lawrence G. McMillan

Technical Analysis of the Futures Markets, John J Murphy

Technical Analysis Course, Thomas A. Meyers

Handbook of Investment Products And Services, Victor Harper

Commodity Spreads, Techniques & Methods, Courtney Smith

Extraordinary Popular Delusions and the Madness of Crowds, Charles McKay

Technical Analysis of Stock Trends, Edwards & MaGee

Technical Trader's Guide to

New Concepts in Technical Trading Systems, J Welles Wilder

The New Commodity Trading Systems and Methods, Perry J Kaufman

Trading for a Living, Dr. Alexander Elder

Commodity Trader's Almanac, Frank A. Taucher

Currencies Interest Rates

Code Exchange Month Call Put Month Call Put

CODE STRIKE PRICES CODE STRIKE PRICES

Worldwide Web Address... www.trendsoft.com

Please send all written correspondence to:

• A subscription to a supported data service is required of for intraday operation.

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