Evaluation of the formations
Module "Advanced Technical Analysis"
If you "hover" over the formations with the mouse (without clicking), a yellow information window appears.
Under the name of the formation, you will also find the corresponding key figures, the time period and the overall rating of the formation.
The valuation is followed by a key figure in brackets. In principle, numbers greater than zero are positive, numbers less than zero are negative.
Key figures and valuation
Element | Description |
|---|---|
Date | The date on which the signal is delivered. |
With | Current price on the designated date. |
For resistance lines | Shows the respective price level and possibly provides a valuation (in brackets). |
With support lines | Shows the respective price level and provides a valuation. |
For rectangles | Shows the current price value of the upper and lower line and provides a valuation. |
For triangles | Shows the current price value of the upper and lower line and provides a valuation. |
For head and shoulder formations | Shows the current price value neckline and provides a valuation. |
Rating | Evaluation of the signal. An overall rating greater than 1 is a buy signal, a rating less than -1 is a sell signal. |
Your Infront Portfolio Manager proceeds as follows to evaluate formations:
- Search formations
- Evaluate formations individually according to their relevance
- Discard formations with valuations that are too low
- Add remaining valuations - modulated by the weight parameters for the formation type
The resulting key figure provides the strength of the signal. To generate a signal, you need a valuation of 1 (negative = sell signal) and the breakthrough of at least one formation. The evaluation includes, for example:
- Type/indication tendency of the formation (positive, negative)
- Breakthrough or not? Clarity of the breakthrough
- Length of the formation
- Number of times a line was tested (touched)
- The symmetry of a formation, if applicable
- Angles in formations