STOCKFETCHER.COM
One of the fascinating things about the technology sector implosion
has been the movement by many technology product manufacturers to load
more and more features into and onto a given product. Thus, not only do
we have personal computers that surf the web, play music, and edit digital
video, but we also have cell phones that take photographs and refrigerators
with flat-screen Lcd monitors.
I thought of this as I visited what might be the "mother of all technical
stock screeners," better known as a website called StockFetcher.com (Figure
1). For just $9 per month, investors and traders who subscribe to StockFetcher
get access to a truly dizzying array of technical indicators - from price
channels and new highs/new lows to stochastics, Bollinger Bands, and candlesticks.
For those technically based traders and investors who have occasionally
felt that individual stocks were virtually immune to the interpretive power
of technical analysis, StockFetcher provides the sort of technical screens
that will help traders narrow the universe of stocks to just those equities
that fall into given trading criteria.
Before I go any further, let me count the ways StockFetcher filters
stocks: average directional movement index (ADX), directional movement
index (DMI), price channels, new highs/new lows, price against moving average,
volume and average volume, moving average crossovers, Bollinger Bands,
moving average convergence/divergence (MACD), relative strength index (RSI)
and smoothed RSI, fast and slow stochastics, candlesticks, average true
range, Williams' %R, the money flow index, on-balance volume, commodity
channel index (CCI), comparative relative strength, Chaikin volatility,
and the mass index. Don't see your favorite indicator? Don't fret - just
send StockFetcher e-mail about the indicator you would like to see added
to their catalog of filters and, chances are, StockFetcher will comply.
FETCHING CHAINS
StockFetcher encourages its members to set up what it calls "filter
chains," which can consist of up to 30 different technical stock screens,
providing a progressively more discriminating list of stocks. StockFetcher
can create historical filter chains in order to see how a particular stock
that fits a certain technical profile actually performed over a given period
of time. This is an excellent way of backtesting screens and filter chains
to determine whether they actually provide a set of stocks that will act
the way the trader or investor expects. For example, a given filter chain
that a trader believes will point to stocks that are breaking out to new
highs may, upon reviewing the filter performance history, actually reveal
stocks that are prone to false breakouts. Too often, backtesting has been
the sole domain of systems testers. With StockFetcher, stock screeners
have the same level of scrutiny when it comes to their stock screens and
filters.
For stocks, StockFetcher also provides watchlists with up to 200 different
stock symbols. Combined with the filter chaining feature, the watchlists
can readily tip off the trader when one of the stocks on the list appears
ready to meet a particular technical condition. Unlike most stock watchlists,
which are usually limited to price and volume information, StockFetcher's
watchlists can be used to provide instant information about which stocks
are not only moving up or down, but also are getting closer to a condition
in which they can be traded based on the trader's qualifications. An e-mail
feature can also be set up to mail the trader a copy of the watchlist and
stock screens to see if any stocks are close to being ready to trade.
After spotting a stock that appears to be ready to be traded by meeting
some particular criteria, StockFetcher provides a Historical Analysis page
that includes price charts and a table of recent performance over a variety
of time frames, from one day up to one month. More specifically, the Historical
Analysis page shows the occurrences when the stock actually matched the
criteria, as well as how the stock performed in various time frames (one
day, one week, and so on) since. Again, this ability to see how a stock
performed after meeting stated criteria is a key feature of StockFetcher.
Not only does this keep traders from blindly trading stocks just because
the stocks meet a certain technical criteria, but the feature also helps
traders create ever more effective stock screens and filter chains.
SECTORS, BETAS, AND BEYOND
In addition, StockFetcher allows for stock screens and filters based
on sector, which is a powerful complement to individual stock analysis.
The sector filtering is as seamless a process as the stock filtering; sectors
are simply considered to be just another variable. This feature also helps
traders get a sense of whether stocks in a given sector respond to certain
technical characteristics in a similar fashion, allowing the trader to
compare the performance of peer stocks in order to, for example, buy the
strong and short the weak.
StockFetcher has also released a beta version called StockFetcher Pro
that is available as a free download from StockFetcher.com. Although the
beta of StockFetcher Pro does not have all the features the final version
will have, it is a worthwhile look at where the developers of StockFetcher
are headed. And for those who find StockFetcher particularly helpful, working
with the beta product is an excellent way of influencing the ongoing development.
In short, those who trade stocks based on technical criteria owe it
to themselves to give StockFetcher a try. Unlike many other stock screens
(such as those provided in TC2000), there is no programming language whatsoever
that StockFetcher members need to be concerned about. Fortunately, given
the variety of filter types in StockFetcher, this is not a handicap in
the slightest. By providing a wealth of different technical criteria (and
being open to creating more based on member interest) and a seamless way
of moving from watchlist to filter chain to historical analysis, StockFetcher
lets traders and investors focus on what matters most: trading and investing.
David Penn is a Staff Writer for STOCKS & COMMODITIES.
Figure 1: stockfetcher.com. Could this be the mother of
all technical stock screens?
CHARTWARE.DE
In my quest to identify websites focused on technical analysis, I stumbled
upon www.chartware.de. This site, hosted in Germany, lets viewers read
the site either in German or English. I assumed the site would have a focus
on European stocks, but was surprised to find stocks traded on the US exchanges
on the homepage's streaming ticker tape. You can see what the site has
to offer immediately by taking a glance at the homepage: Users can get
quotes, analyze charts, get an overall market view, get buy/sell ratings,
and be a part of a trading community.
Take a look the "Chart of the day" on the homepage. By placing your
mouse over the "Analyse this chart" link, you can see what features are
available. The technical analysis option is the most interesting. This
shows you a chart with closing prices plotted, and with the 200- and 38-day
moving averages overlaid. (Why the 38-day moving average? It's a mystery
to me.)
Other indicators included are Fibonacci retracements, Fibonacci stress
days, and Bollinger Bands plotted as horizontal lines. You'll also see
a price forecast for the next 12 days. Comment and explanation tabs below
the chart provide further insight into the analysis. A short commentary
gives buy and sell ratings, and there are discussions of the technical
tools and indicators used. The strength or weakness of the securities are
displayed using weather symbols, which I found to be a unique touch. The
sunny symbol indicates the situation is very positive and you should go
long, while the thunderstorm symbol, at the other extreme, suggests an
extremely negative situation where you should go short.
There are additional technical indicator tools worth mentioning. These
include the five-year and one-year trendlines, candlestick charts, various
indicators, volatility charts, and statistics of returns and volatility.
The candlestick charts are explained clearly with the most recent patterns
highlighted, and with a commentary that will help users understand the
logic behind the projections.
Across the top of the page you will notice various tabs: Home, MyChartWare,
MarketWatch, QuoteLists, and ChartAnalysis. The features available
on the site are numerous. You can scan for tradables including stocks,
currencies, interest rates, and some commodities. If you see one you like,
you can add it to your quote lists or portfolio. You also have the option
to set an e-mail alert when a security hits a certain price.
Other features are the top five lists for the Dow Jones industrials,
Nasdaq 100, Standard & Poor's 500, FTSE 100, Estoxx 50, and the Nikkei
225. These lists can be arranged based on buy signals, the current day's
percent change, percent change in one week, percent change in one month,
and percent change in one year.
Those who have registered on the site (a free service) have the option
of participating in discussions, as well as in a portfolio contest. The
top five-ranked participants of the contest are listed on the homepage.
If you click on the usernames of the contestants, you'll see their equity
curves.
Overall, this is a well-designed site with many features a technical
analyst will find useful. It's easy to lose yourself in browsing the site,
and considering the content, I wouldn't be surprised if it attracts a large
following. ChartWare.de is definitely worth a visit.
-Jayanthi Gopalakrishnan, Editor, STOCKS& COMMODITIES
Originally published in the February 2003 issue of Technical
Analysis of STOCKS & COMMODITIES magazine. All rights reserved. ©
Copyright 2003, Technical Analysis, Inc.
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