Questions Raised about the "Opinion"
Results
by Yosef
Cohen
owner of Stock Mavenｮ
02 May, 2004
If one sees for example that an opinion shows 100% BUY, does that mean
that there is little upside stock price potential left because most of
the available money to invest has already bought the stock?
If an opinion shows 100% SELL, does that mean that all the selling has
already taken place and now the stock is poised to rise?
Technical analysis may best be described in our personal view as
showing what has already occurred historically, but that it does not
necessarily map out the future.
Much more needs to be researched to better determine if a
stock should be bought, held or sold. Technical analysis alone does not
include important world news or stock specific news that could have a
material effect on the outlook for a particular stock, the stocks of a
particular sector or industry group or stocks in general.
History or technical analysis is just one of many stock research tools,
but not the be all and end all of conducting comprehensive stock
research. Knowing a 52 week high and low does not mean that the stock
of a company will not move above a previous 52 week high or fall below
a previous 52 week low. Knowing what has already occurred can not be
relied upon as having established a pattern that will necessarily
repeat itself.
Copyright
ｩ 2004 Stock Mavenｮ. ALL RIGHTS RESERVED.
Barchart.com Opinion
The Opinion results provided by Barchart.com require six months worth
of trading activity and runs the prices through thirteen different
technical indicators.
After each calculation the program assigns a buy, sell or hold value
with the study, depending on where the price lies in reference to the
common interpretation of the study.
For example if the price is above the moving average of the stock then
this is generally considered an upward trend or a buy.
Each study links to a chart to give you a graphical interpretation of
the result of the study.
Calculations
The Short, Medium and Long term indicators are grouped together and
calculated separately for their groups, the overall indicators includes
all 13 studies listed on the page.
- A
buy is assigned 1 point.
- A
sell is assigned -1 points.
- A
hold is assigned 0 points.
Add up the totals for the different groups and divide this number by
the amount of studies in the group, and take this number as a
percentage. If the total is greater than zero then this is a buy, if
the total is zero then this is a hold and if the total is less than
zero then this is a sell. Opinions are updated once a day at 6:30 PM
E.S.T.
No Advice or Solicitation
The Information is not intended to provide tax, legal or investment
advice. The Information does not constitute a solicitation by Stock
Mavenｮ or Barchart.com for the purchase or sale of securities.
Learning Center - This section describes the different technical studies used in the
opinion.
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of Service.
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