This document scopes out some of the features that I need in a charting software product. I have learned trading from experimentation and have never been employed in the industry, so I have had to learn from books. These are software tools for swing trading that you most likely will recognize. The MACD features I need are used for trend following trading, but is only useful about thirty percent of the time.
I made a drawing to try and better communicate what I need from your product as some of the functions I must have:
Opening Range: The high and low prices during the opening time frame; and these time frames will generally range from 5, 10, 20 to 30 minute intervals. I would like to have the high and low prices displayed near the lines too.
A: This is easily done with a DYO using Chart Value | # min High after 1st Open and # min Low after 1st open. # is the minute interval wanted.
The marker can show a line an the value can be its label.
Q: Volatility Breakout prices: These values are X ticks above/below the opening range based on volatility and other variables. These lines can be drawn manually and it would be nice to open a table and enter the values so the lines are drawn automatically. I would like to have the actual prices displayed in addition to the horizontal lines.
A: Save the values from the Opening Range above and use Expression to plot Value + # to plot more lines.
Q: Daily Pivot Range: (High + Low + Close)/3 = daily pivot price, (High + Low)/2= Second Number. Difference between daily pivot price and second number = daily pivot differential. Daily pivot price plus or minus pivot differential = daily pivot range. Display price values on both red lines too. Display these lines calculated from daily charts on intraday time frames during trading hours.
A: Easily done as well. See this example for something similar: http://www.ensignsoftware.com/help/dyo.htm#Fibonacci
Q: Three Day Rolling Pivot: Use the highest high and the lowest low of the three day period and the settlement of the most recent day. Use these three reference numbers to plug into Pivot Range formula. Display price values on lines.
A: Use the selections in the Daily Price Lines tool. Save the values found in Global Variables and then use a DYO for any additional math such as the pivot formulas you seek.Moving Averages Using pivots.
Q: Instead of using the close price value I need to use a pivot calculation value. (High + Low + Close)/3 is the price value I need to use. Then I want to be able to use 14, 30, and 50 day (bar) averages of these pivot values. I want to be able to display all three pivot moving averages on the same chart.
A: No problem . On the Moving Average property form (or any study) change the Data Point selection to the (H+L+C)/3 selection.
Q: Price Values to display on Chart
First Trading Day of the Month – high and low prices.
First Two Weeks of Year – high and low price value
First Two Weeks of July – high and low price value
A: I would suggest using the Daily Price Lines tool and the selection to plot a Price and you manually enter the prices from these items.
Typically studies and tools need to find prices in the chart data set, and it might be unlikely that the first 2 weeks of the year are present in the chart's data set. Therefore, I suggest you manually enter the prices, and change them as needed, which will be infrequently.
Q: Time: You have a clock, but do you have a timer? Something that can display time starting at zero and going up to 30 minutes or so.
A: Yes, but the timer counts down to show time remaining. So it counts from 30 down, instead of up.
Q: MACD – used for trend following trading: Use simple moving averages for all three averages. Average 1: 2 or 3 units time period Average 2: 9 or 10 units time period. Signal Line/Trigger: 14 or 16 time period
Calculate a value for the Average 1 line that will display the price value where the Average 1 line will reverse direction. i.e. if the Average 1 line is sloping upwards, then what price value will make Average 1 turn down to go in opposite direction?
A: Yes to all this. The MACD is the study and you set its parameters as shown above. Use a DYO and the selection Global Action | Price Finder to calculate the value for any study to make that study do something different, such as turn down, or cross over other lines, etc.
See this Price Finder example: http://www.ensignsoftware.com/tips/tradingtips63.htm#Bollinger
Q: These are simple calculations and I need them automated:
NR7 - NR(X)Narrowest Range of the last 7 days. An NR7 is a day in which the today's daily range (today's high price minus low price) is narrower than the previous six days. An NR4 day is similar to an NR7 day except that it represents a day in which the range is the narrower than the previous three days.
A: Yes. This is a setting on the Donchian channel study. Setting can be 7 or 4 as wanted.ID
Q: The day's trading range is contained "inside" that of the previous day: a lower high and a higher low.
A: Yes. Use either the Dunnigan color bar study or implement with 3 lines in a DYO.2-3 Small Daily Ranges.
Q: WR7 is a day in which the today's daily range (today's high price minus low price) is wider than the range of the previous 6 days.
A: Easy to implement in a DYO that is on a daily chart.OD
Q: The day's trading range is "outside" that of the previous day, i.e., a higher high and a lower low.
A: Same answer as ID. Use Dunnigan or a DYO.
Q: Pattern Recognition These are fairly easy to recognize and draw manually, but I would like to know if you automate these with functions in your product? Wedge/Pennant Do you have a software feature that can distinguish the formation of a wedge? (not where I have to draw a manually inserted line)
A: Yes. Feature is check box option on the Draw Line tool. Also, we have the Auto Trends tool with features you would use. Search web site for Auto Trend examples.
Q: Ws and Ms (double bottoms and double tops) in all time frames
A: No to this one. The Pesavento Patterns tool will mark swings, but does not identify them as double bottom or double top.
Q: Studies/IndicatorsThese are common indicators, and am pretty sure your product has these features, but am listing them so that you know what I am trying to do.
DMI - ADX: Use a 20 period exponential moving average and a 14 period ADX
Keltner channel: 2.5 ATR centered around the 20-period exponential Moving Average
ROC: Rate of Change 2 period
ATR: Average True Range 20 period
A: Yes to all the above except I do not recognize PSAR. I assume it is Parabolic stop and reverse and we have Parabolic too.
Q: First Notice/Contract rolloverI certainly never want to make a mistake and take delivery of a contract. First Notice day is a very good feature that I like to have, but was unable to find it in your product? Do you have any suggestions?
A: Do not have First Notice Day. You can follow continuation futures symbols and have an auto roll-out schedule so the chart now follows Sept instead of June. But this roll day is not First Notice Day.
Q: Price Data Vendor: Do you recommend any particular futures data vendor? I have had a subscription to DTN IQFeed for a couple of years and it seems okay.
VIX.XO This volatility index is useful for trading stock indices. I have been able to get this information as a IQFeed subscriber, but for some reason using your software it recognized the symbol but the data displayed was blank.
A: Ensign uses the DTN.IQ feed just fine. Go to Setup | Manager for the watch list and the entry would be VIX.XO It charts and refreshes just fine. If chart is blank, right mouse click and select pop-up menu Refresh | 2 Years.License
Q: Is this a month to month license agreement? I read the license and could not find a term in length of time of the agreement. So, am assuming a user pays the monthly fee and is able to drop the license at any time. Is this correct?
A: Correct. We reearn the loyalty of our customers month after month. We hope you choose to join the Ensign community of users. Check out the chat room sometime and join us for Wednesday afternoon training class where you can learn more and get questions answered. My staff can help you any time in the Support chat room too.