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***** Disclaimer: This is NOT investment advice, just general help and
Dan Chapman's opinion, please check with a registered investment
advisor before making any trades or investment decisions. This
document may contain errors.
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Topics: also see  Indicator Intro
Overall Summary
| • | The Overall Summary section provides a summary of the bullish and
bearish indicators along with a summary rating with % bullish and % bearish. |
| • | This section should be used as a general guide and not as a
substitute for detailed indicator information.
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| • | Trade Quality can behave independent of the Overall Summary at times.
The Trade Quality(reviewed elsewhere) depends mostly on the trade's profit/loss ratio, target profit and if there is low resistance(or support for shorts) to the target.
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| • | The combination of both good % bullish numbers AND good upside trade quality completes the full picture of a stocks potential. |
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| Rating | Information |
| Hold |
Stocks that are currently in a rally or pullback mode which have approx. 50% of the indicators bullish and 50% bearish. |
Mild to
Very Strong Outperform |
Mild outperform has indicators that are slightly bullish (ie. 60% bullish, 40% bearish) and are starting to favor long positions. Very strong outperform (ie. 90% bullish, 10% bearish) has a majority of bullish indicators with odds favoring long positions (verify good upside trade quality). |
Mild to
Very Strong Under perform |
Mild under perform has indicators that are slightly bearish (ie. 40% bullish, 60% bearish) and starting to favor short positions. Very strong under perform (ie. 10% bullish, 90% bearish) has a majority of bearish indicators with odds favoring short positions.
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| • |  Stocks listed for Breakout(down) will typically show a hold rating (not outperform or under perform). |
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Bullish and Bearish probabilities
| • | Probabilistic Indicators give the investor the odds of a stock favoring a more:
| • bullish (ie. stock with a bottom, strong uptrend, strong pullback, etc...), |
| • bearish (ie top, strong downtrend, extreme rally), |
| • or neutral stance (ie. flat for a month, possible breakout or breakdown). |
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| Indicator | Information Provided |
| Intermediate Trend |
Intermediate term (4 month) bottoms, tops, and trend reversals. |
| Overbought/sold |
Major rallies/pullbacks that are 2-6 weeks in duration. |
| 1 Month Trend |
Slope of the recent 1 month up or down trend. |
| Short Term Direction |
Current 3 day to 2 week rally/pullback compared to past rallies/pullbacks. |
| 1 Day Price Change |
Current 1 day price change compared to past daily price changes.
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| • | The indicators listed above will be described in greater detail in later sections. |
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Bullish and Bearish Confirmations
| • | Bullish and Bearish confirmation indicators are used
to time a stock entry or exit. |
| • | Confirmation indicators are very short term in duration (1-3 days). |
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| Indicator | Information Provided |
| Chart Alert |
3 day chart analysis that may confirm a reversal, trend change, or start/end of a rally/pullback. |
| Money flow |
1 day money flow can confirm a top/bottom reversal point or start of a rally or breakout/down. |
| Resistance/support |
Confirm tops (resistance) or bottoms (support) |
| Breakout/down |
Confirm breakouts and breakdowns in the stock price. |
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| • | The indicators listed above will be described in greater detail in later sections. |
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