How Signals Are Displayed

How Signals Are Displayed

Entry/exit signals are displayed using a symbol. This symbol, typically a triangle, indicates the position that this signal recommends you should be in for the associated stock. Entry/exit signals also have an underlying value on which the symbol is based. This value can sometimes be interpreted as the strength of the signal relative to other values for that signal.

& For help charting signals and other fields, see Displaying Data in a Chart.

Understanding Signal Symbols

Entry/exit signals indicate the position that should currently be being taken with the stock or data being analyzed. Remember that these recommendations are based on this particular set of calculations and/or predictions and may not necessarily be the best overall position to take.

ˇ $image\ebd_ebd421.gif$ Enter Long

An enter long signal indicates that you should currently be in a long position. A long position is one in which you own the stock or security. This is based on the belief that the stock price will increase. An enter long signal also indicates to exit any short positions (described below).

ˇ $image\ebd_ebd422.gif$ Enter Short

An enter short signal indicates that you should currently be in a short position. A short position is one in which you borrow the stock from your broker and sell it at the current price, with the understanding that you will buy replacement shares at a later time, hopefully at a lower price. This is based on the belief that the stock price will decrease. An enter short signal also indicates to exit any long positions.

ˇ $image\ebd_ebd423.gif$ Exit Long

An exit long signal indicates that you should currently exit any current long positions. This means that you should sell the shares of this stock that you currently own. This is typically based on the belief that the stock price will decrease, although not enough to warrant entering a short position.

ˇ $image\ebd_ebd424.gif$ Exit Short

An exit short signal indicates that you should currently exit any current short positions. Technically, this means that you are buying the stock at the current price to replace the shares you borrowed from your broker. This is typically based on the belief that the stock price will increase, although not enough to warrant entering a long position.

ˇ $image\ebd_ebd425.gif$ Hold

A hold signal indicates that no action is recommended. This is based on the belief that the stock price will not increase or decrease by a significant amount.

ˇ $image\ebd_ebd426.gif$ Hold During Increase

This hold signal indicates that no action is recommended. The price is anticipated to increase, but not enough to warrant any action.

ˇ $image\ebd_ebd427.gif$ Hold During Decrease

This hold signal indicates that no action is recommended. The price is anticipated to decrease, but not enough to warrant any action.

Understanding Signal Values

Entry/exit signals are stored as a single value, often with a range from -1 to 1. This single value is displayed as a combination of a symbol and a percentage.

The symbol displayed for a signal value is based on the following table.

$image\ebd_ebd428.gif$ Enter Long >= 0.50

$image\ebd_ebd429.gif$ Exit Short >= 0.20

$image\ebd_ebd430.gif$ Hold, Increase > 0.00

$image\ebd_ebd431.gif$ Hold = 0.00

$image\ebd_ebd432.gif$ Hold, Decrease < 0.00

$image\ebd_ebd433.gif$ Exit Long <= -0.20

$image\ebd_ebd434.gif$ Enter Short <= -0.50

The percentage displayed with the symbol is the absolute value of the signal value. This value can sometimes be interpreted as the "strength" of the signal relative to other values for that same field.

Ä Note: It is typically not a good idea to compare strength values between two different fields. This is because different fields may be optimized differently, causing their strengths to be on a different scale. For example, the strength of some signals may be from 0% to 100%, while others may reach 1000% or higher.

The output of entry/exit systems and non-analog optimal signals are discrete values in these ranges. The following values are used for discrete signals.

$image\ebd_ebd435.gif$ Enter Long 1.00

$image\ebd_ebd436.gif$ Exit Short 0.30

$image\ebd_ebd437.gif$ Hold 0.00

$image\ebd_ebd438.gif$ Exit Long -0.30

$image\ebd_ebd439.gif$ Enter Short -1.00

Ä Note: The strength value is displayed next to all signals in the Spreadsheet View. To see the strength in the Portfolio View, position your mouse over the signal and it will be displayed in a tip window.

Displaying the Effects of Trading Styles

The raw values of signals do not include the effects of Entry/Exit Strategy settings in the Trading Styles used to analyze them. For example, a trading style may indicate that only long trades should be used, a signal should only be traded between 10am and 3pm, or stops should be used to limit losses. None of these adjustments are included raw value of a signal field.

Trading Styles are used for the analysis of signals. Because of this, you can use a Signal Analysis field to the display a signal filtered through the settings of a trading style. To do this, use the Create Signal Analysis Fields Wizard and select the Current Trading Signal field. This field can then be displayed in the Portfolio View, charts, and other places. It can also be used for additional calculations.

Additional Signal Highlighting

Signals displayed in the Portfolio View are highlighted when they need to be brought to your attention. The following colors are used:

ˇ Pink Background
$image\ebd_ebd440.gif$

A pink background is displayed when an entry/exit signal results in a change in position from the previous values of that signal. For example, an exit long after an enter long or an enter long after an enter short.

Ä Note: Signal highlighting does not take into account stops or limits in trading styles. Because of this, enter signals may not be highlighted when previous trades were stopped out or did not occur due to failure to reach a price limit.

ˇ Light Gray Background
$image\ebd_ebd441.gif$

A light gray background is displayed when data for a data series may be "out-of-date". Specifically, the last date in the data series is not equal to the last date in the portfolio.

Ä Note: When displaying previous display dates in the Portfolio View, a gray background is used to indicate that the date associated with the currently displayed data occurs prior to the display date.

ˇ Dark Gray Background

$image\ebd_ebd442.gif$
A dark gray background is displayed when a signal analysis field with an adjusted date range is displayed for a date prior to the last date in the data series. These values should not be used. Fields of this type contain valid data only for the last date in the data series.

: Example: A signal analysis field with a one-year percent gain only contains the analysis for one year of data on the last date of the data series.

Changing To and From a Signal Format

TradingSolutions will automatically select to display fields either in a numeric format or in an entry/exit signal format. In most cases, it will select the correct format. However, there are times when the wrong format may be selected.

When creating a new calculated field, you can set the new field to be formatted as a signal on the Calculate a Value Wizard: Select Name page. To select the format, simply select or deselect Display this field as an entry/exit signal.

After a field has been created, you can select a new format on the Modify Field Dialog: Overview page. Fields using the "Signal" format will be displayed as signals. All other formats will be displayed in the specific numeric format.

& For more information about field formatting, see Using Custom Field Formats.

& For more help with signals, see Creating and Analyzing Entry/Exit Signals.