The Opinions takes up to 2 years worth of historical data and runs these prices
through thirteen different technical indicators.
After each calculation the program assigns a buy, sell or hold value with the study,
depending on where the price lies in reference to the common interpretation of the study.
For example if the price is above the moving average of the stock then this is generally
considered an upward trend or a buy.
Each study links to a chart to give you a graphical interpretation of the result of the study.
Calculations
The Short, Medium and Long term indicators are grouped together and calculated separately
for their groups, the overall indicators includes all 13 studies listed on the page.
- A buy is assigned 1 point
- A sell is assigned -1 points
- A hold is assigned 0 points
Add up the totals for the different groups and divide this number by the amount of studies
in the group, and take this number as a percentage. If the total is greater than zero then this
is a buy, if the total is zero then this is a hold and if the total is less than zero then this is a sell.
To keep the results in a more logical format, we factor the overall opinion by 1.04 to
keep the end result in eighths, with the exception of a 100% buy or sells. This is why
the opinions will be displayed {8%, 16%, ... 88%, 96% and 100%} rather the true calculated
value over the number thirteen.
Signal Strength
The signal strength is a long term measurement of the strength of the
signal compared to the strength of the signal historically.
The strength can be one of the following five readings:
- Maximum
- Strong
- Average
- Weak
- Minimum
Maximum is the strongest this signal has been in the historical period
and minimum is the weakest the signal has been in the historical period.
The stronger a signal strength the less volatile the signal. For example
a Maximum buy signal is less likely to change to a hold or a sell signal
than a weak buy signal.
A hold signal does not have a signal strength.
Signal Direction
Buy/Sell Signal Direction
The signal direction is a short term measurement of the current movement
of the signal, regardless if it is a buy signal or a sell signal the
direction is an indication of whether the most recent price movements
is going along with the signal.
The buy/sell direction can be one of the following five readings:
- Strongest
- Strengthening
- Rising
- Weakening
- Weakest
A buy signal with a "strongest" direction is a buy signal which is
becoming a stronger buy signal. Similarly a sell signal with a
"strongest" direction is a sell signal which is becoming a stronger
sell signal the direction goes with the signal.
Hold Signal Direction
The signal direction of a hold signal is a short term measurement
of where the signal is heading, be it towards a buy signal or a
sell signal.
The hold direction can be one of the following five readings:
- Bullish
- Rising
- Steady
- Falling
- Bearish
A bullish hold signal indicates that the signal is heading towards
a buy configuration, and a bearish hold signal indicates that the
signal is heading towards a sell configuration.
