August 2, 2016

Definition of Terms

QuantDS PSE

PSE LISTED STOCK TRIGGERS AND OTHER DETAILS

  • Stock Code - Is a unique series of letters (or a combination of letters and numbers) assigned to a security for trading purposes.
  • Colored Stock Code Green - Previous close price is +5% ABOVE Price Trigger
  • Colored Stock Code Yellow - Previous close price is between +5% and -5% from Price Trigger
  • Colored Stock Code Red - Previous close price is -5% BELOW Price Trigger
  • Colored Stock Code Blue- Previous close price is 0 days ahead/behind from Rate Trigger
  • Daily Update - Fetching data for re-computation of our system happens around 06:00 PM (Philippine Time) to ensure all paramaters are included. Approximately three (3) hours after the market close.
  • Price Closed - The stock price at the end of a period of time, such as a trading day.
  • Candlestick - A candlestick is a chart that displays the high, the low, the opening, and the closing prices of a security for a single day. The wide part of the candlestick is called the "real body" which tells traders whether the closing price was higher or lower than the opening price.
  • PCOMP Trigger/Price Trigger - A point or prict of control and it initiates something (momentum, volume, direction, buying, selling, etc) when the condition sets satisfied. This is the QuantDS' homebrew.
  • % Trigger (RISK vs. REWARD) - Percent (%) difference of Previous Close Price to Price Trigger. The risk/reward ratio is used by many investors to compare the expected returns of an investment to the amount of risk undertaken to capture these returns.
  • Suggested Buying and Selling Prices - Suggested stock prices to where buy and/or sell (up to midterm target).
  • Filters - Shortlist, Waitlist, Watchlist, and Continuation Filters. Stocks undergone a method of selection from a set to a subsets depending on each criteria it qualifies.
  • Price Trigger Projected Up/Down - Indicating what would happen if exchange rate would go up/ down at a certain percentage normal daily level.
  • Days Ahead/Behind from Trigger - The no. of days or the distance of closing price from the trigger. Positive number means bullish but nearing reversal while negative number means bearish but nearing reversal. Zero (0) means neutral and either direction is possible.

PRICE SPREAD OR RANGES

  • Breakout 2 (Breakout Continuation)- Price is breaking away from the strongest resistance in level 2 or the third strongest resistance.
  • Breakout 1 (Change of Trend/Pattern Alert) - Price is breaking away from the strongest resistance in level 1 or the second strongest resistance.
  • Strongest Resistance to Break - Marking a strong volume and momentum breakout if this price breaks.
  • Sideways to Up - Consolidation to breakout prices.
  • Tranche Sell (Profit Taking Point) - Price where profit taking most likely to occur.
  • Sideways to Up - Consolidation to profit taking price.
  • Uptrend Hold - Confirmation of uptrend.
  • Sideways to Up - Consolidation to uptrend price.
  • Uptrend Support - Tranche buying price, otherwise, sell. Testing of uptrend.
  • Trend Reversal - Critical point. A make or break position. Price might go up or down.
  • Downtrend Resistance - Uptrend support failed to hold and becomes resistance. Sell on strength.
  • Range Trade - Both strong signal for support and resistance. Accumulation point.
  • Sideways to Down - Consolidation to test support.
  • Support Broken - Support failed to hold. Downtrend continuation.
  • Sideways to Down - Consolidation to test bottom support.
  • Bottom Support - Marking a bottom picking wherein test buyers are willing to take risk.
  • Breakdown 1 (Change of Trend/Pattern Alert) - Price is breaking down from the strongest support in level 1 or the second strongest support.
  • Breakdown 2 (Breakdown Continuation) - Price is breaking down from the strongest support in level 2 or the third strongest support.

RECOMMENDATION AND TRADE SWITCH

Suggests a possible trade based on the price movements for the day. Trade Switch is used to maximize the full potential of our data.

  • Breakout Buy - Breaking resistance in terms of technical parameters OFTEN driven by company news, ventures, and speculations.
  • Buy - To buy a stock shares or position.
  • Buy @ Uptrend Support- Signals a buy when the price bounced on the uptrend support or if the uptrend support holds even though price trigger is triggered down.
  • Buy and Hold - Buy shares in tranches and hold until target price is reached.
  • High Risk Buy - A stock still has a high upside but also with a higher level of risk.
  • Low Risk Buy - A stock still have a high downside but also with a high level of reward if it moves on your favor.
  • Sell on Strength - To sell a stock or close a position in tranches during its strengths if the resistance is strong (if the price is moving against your favor).
  • Test Buy if Moving Up -Test buy a small amount of shares then increasing in position as the bullish trend unfolds and supports are getting stronger.
  • Trigger Buy - The key here is if the stock is zero (0) days ahead/behind from the trigger. There is a high possibility that the price trigger will be hit. 

MOMENTUM (TMI - TATA MICH INDICATOR)

  • Upward Momentum (above 35) - Meaning rate trend is upward.
  • Downward Momentum (below 25) Meaning rate trend is downward.
  • Sideways Momentum (bet. 35 and 25) - Meaning rate trend is sideways.

STATUS

  • 52- Week High (52H) - Stock price is at least 3% near from the 52-week high.
  • 52-Week Low (52L) - Stock price is at least 3% near from the 52-week high.
  • Consolidation Phase (CP) - Sideways.
  • Near Bottom Support (NBS) - Stock price is near the bottom support. May bounce or breakdown.
  • Near Top Resistance (NTR) - Stock price is near the top resistance. May pullback or breakout.
  • No Movement (NM) - No trade for the day.
  • Strong Closed (SC) - Closed at day's high.
  • Strong Signal Strength Reading (SSSR) - Indicates a high bullish signal.
  • Trend Continuation (TC) - Current trend will continue.
  • Trend Reversal Coming (TRC) - Current trend will reverse in a very short term.
  • Volatile Movement (VM) - Stock price is moving widespread.
  • Weak Closed (WC) - Closed at day's low. 
  • Weak Signal Strength Reading (WSSR) - Indicates a high bearish signal.

Confidence Level (QuantDS PSE baseline: 97% for Stocks, 95% for PSE Index)

  • Shaded CL DARK PURPLE - >50% (Near 100% means high CL)
  • Shaded CL DARK ORANGE - <40% (Near 0% means lower CL)
  • Shaded CL DARK BLUE - <50% (Near 0% means lower CL)

QuantDS FX

CURRENCY EXCHANGE TRIGGER AND OTHER DETAILS

  • Currency Pairs - A  quotation of the relative value of a currency unit against the unit of another currency in the foreign exchange market.
  • Color Code Green - Rate closed is +1% ABOVE Rate Trigger
  • Color Code Yellow - Rate closed is between +1% and -1% from Rate Trigger
  • Color Code Red - Rate closed is -1% BELOW Rate Trigger
  • Color Code Blue- Rate closed 0 days ahead/behind from Rate Trigger
  • Daily Update - Fetching data for re-computation of our system happens around 11:00 AM (Philippine Time) to ensure all paramaters are included.
  • Exchange Rate Closed - The exchange rate for two currencies or pairs at the end of a period of time, such as a trading day.
  • Candlestick - A candlestick is a chart that displays the high, the low, the opening, and the closing prices of a security for a single day. The wide part of the candlestick is called the "real body" which tells traders whether the closing price was higher or lower than the opening price.
  • Exchange Trigger - Or the Foreign Exchange Price/Rate Trigger. A point of control and it initiates something (momentum, volume, direction, buying, selling, etc) when the condition sets satisfied. This is the QuantDS' homebrew.
  • % Trigger (RISK vs. REWARD) - Percent (%) difference of Closing Price to Exchange Rate Trigger. The risk/reward ratio is used by many investors to compare the expected returns of an investment to the amount of risk undertaken to capture these returns.
  • Target Position Start/End - Suggested price for open/close position (long/short).
  • Pip Count - A pip is the smallest price move that a given exchange rate makes based on market convention. The Pip Count is the difference between the target position start and target position end.
  • Exchange Trigger Projected Up/Down - Indicating what would happen if exchange rate would go up/ down at a certain percentage normal daily level.
  • Days Ahead/Behind from Trigger - The no. of days or the distance of exchange rate from the exchange trigger. Positive number means bullish but nearing reversal while negative number means bearish but nearing reversal. Zero (0) means neutral and either direction is possible.

RANGE

  • Breakout 3 - Price is breaking away from the strongest resistance in level 3 or the fourth strongest resistance.
  • Breakout 2 - Price is breaking away from the strongest resistance in level 2 or the third strongest resistance.
  • Breakout 1 - Price is breaking away from the strongest resistance in level 1 or the second strongest resistance.
  • Strongest Resistance to Break - Marking a strong volume and momentum breakout if this price breaks.
  • Ranging - Both strong signal for support and resistance.
  • Tranche Sell - Price where profit taking most likely to occur.
  • Uptrend Hold - Confirmation of uptrend.
  • Uptrend Support - Testing of uptrend.
  • Trend Reversal - Critical point. A make or break position.
  • Support Broken - Support failed to hold.
  • Range Trade - Both strong signal for support and resistance.
  • Bottom Support - Marking a bottom wherein test buyers are willing to take risk.
  • Breakdown 1 - Price is breaking down from the strongest support in level 1 or the second strongest support.
  • Breakdown 2 - Price is breaking down from the strongest support in level 2 or the third strongest support.
  • Breakdown 3 - Price is breaking down from the strongest support in level 3 or the fourth strongest support.

RECOMMENDATION

Buy or sell recommendation is generated based on our system parameters.

  • Buy Stop - A buy pending order ABOVE the current market price and/or a buy order above the next support upward (place stop loss below support).
  • Buy Limit - A buy pending order BELOW the current market price and/or a buy order above the support (place stop loss below support).
  • Sell Limit - A sell pending order ABOVE the current market price and/or a sell order below the resistance (place stop loss above resistance).
  • Sell Stop - A sell pending order BELOW the current market price and/or a sell order below support (place stop loss above resistance).

CURRENCY RATING (using TMI) AND MOMENTUM

  • Upward Momentum (above 35) - Meaning rate trend is upward.
  • Downward Momentum (below 25) Meaning rate trend is downward.
  • Sideways Momentum (bet. 35 and 25) - Meaning rate trend is sideways.
  • Strengthening - Currency direction is pulling down since rate goes higher or expensive, thus becomes heavier. When trading long position, it is suggested to pair strengthening base currency with a weakening quote currency for a stronger uptrend. (Rating 26 and above)
  • Weakening - Currency direction is pushing up since rate goes lower or cheaper, thus becomes lighter. When selling short , it is suggested to pair weakening base currency with a strengthening quote currency for a stronger downtrend. (Rating 26 and below)
  • Strengthening paired with weakening = going up. Weakening paired with strengthening = going down. Weakening paired with weakening = going up. Strengthening paired with strengthening = going down.

TRIGGER TREND

  • Uptrend: Triggered Up - The exchange rate meets up with the exchange trigger and it breaks out. If holding as support for the exchange trigger is a strong bullish signal.
  • Downtrend: Triggered Down - The exchange rate meets up with exchange trigger and it breaks down. If holding as support for the exchange trigger is a strong bearish signal.

POSITION TREND

  • BULLISH TREND CONTINUATION (BUTC) - Identifies the bullishness of the current trend with possible continuation.
  • BEARISH TREND CONTINUATION (BETC) - Identifies the bearishness of the current trend with possible continuation.
  • TREND REVERSAL COMING (TRC) - Signals a possible trend reversal nearly soon.
  • NEAR TOP RESISTANCE (NTR) - Approaching top resistance in the short term.
  • NEAR BOTTOM SUPPORT (NBS) - Approaching bottom support in the short term.

TRADE SWITCH SIGNAL

Suggests a possible trade based on the currency movements for the day. Trade Switch is used to maximize the full potential of our data.

  • BREAKOUT TRADE - Breaking resistance technically OFTEN driven by world news.
  • BREAKDOWN TRADE - Breaking support technically OFTEN driven by world news.
  • TRIGGER TRADE BUY - Trigger trade buy signifies that, given the average volatility, the possibility to hit and breach the trigger for the current day is high.
  • TRIGGER TRADE SELL - Trigger trade sell signifies that, given the average volatility, the possibility to hit and breach the trigger for the current day is high.
  • SCALP TRADE UP - Scalping up suggest a short-term buy trade using the ranges given in the data. (Reason: Current market rate is far from the trigger. As always, the trigger is the point of control and it will always be tested.)
  • SCALP TRADE DOWN - Scalping down suggest a short-term sell trade using the ranges given in the data. (Reason: Current market rate is far from the trigger. As always, the trigger is the point of control and it will always be tested.)
  • POSITION TRADE BUY - Possible entry for a long buy position.
  • POSITION TRADE SELL - Possible entry for a short sell position.

Confidence Level (QuantDS FX baseline is around 90%)

  • Shaded CL DARK PURPLE - >50% (Near 100% means high CL)
  • Shaded CL DARK ORANGE - <40% (Near 0% means lower CL)
  • Shaded CL DARK BLUE - <50% (Near 0% means lower CL)

EXPERT ADVISOR (EA) Expert Advisors are programs that allow automation of the analytical and trading processes in the MT4 platform.

*All terminologies above are credited to Michelle Soriano (QuantDS Creator). For questions, please contact us.