MetaStock Professional Version 8.0 Users Manual

MetaStock ®
Professional
For Windows 98 and higher

User's Manual
Version 8.0
















All Rights Reserved
Copyright  1985-2002

Printed in the USA
Equis International
3950 South 700 East, First Floor
Salt Lake City, UT 84107
http://www.equis.com

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Achelis Binary Wave, DataOnDemand, The DownLoader, Expert Advisor, The Explorer, Visual Control,
QuoteCenter, and Smart Charts are trademarks of Equis International. Equis, MetaStock, and OptionScope are
registered trademarks of Equis International. Reuters is a registered trademark of Reuters Limited. eSignal is a
registered trademark of Data Broadcasting Corporation. IBM is a registered trademark of International Business
Machines Corporation. MS-DOS, Microsoft Windows, Microsoft Windows 98, Microsoft Windows NT, Microsoft
IntelliMouse, Microsoft Office, Microsoft Word, Microsoft Excel, and Paint are registered trademarks of Microsoft
Corporation. ODDS is a trademark of Fishback Management & Research Co. All other product names or services
mentioned are trademarks or registered trademarks of their respective owners.

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Contents
Getting Started...............................................................................................1
Welcome ....................................................................................................................................1
What You Need to Run MetaStock Pro .....................................................................................2
Two Quick Steps for Getting Up to Speed Fast.........................................................................2
Installing MetaStock Pro............................................................................................................3
Running MetaStock Pro.............................................................................................................3
Getting Help...............................................................................................................................4
The Workplace ...............................................................................................7
Microsoft Windows Standard Features......................................................................................7
Using the Menus ......................................................................................................................17
Using Dialogs ..........................................................................................................................18
Using the Toolbars...................................................................................................................19
Using the Status Bar.................................................................................................................27
HELP! Using MetaStock Pro’s Help System..........................................................................29
Changing the Appearance of MetaStock Pro’s Workplace......................................................31
Collecting Your Data ................................................................................... 41
What is Data?...........................................................................................................................41
DataOnDemand™....................................................................................................................42
Collecting Local Real-time Data..............................................................................................43
End-of-day Data Collection with The DownLoader................................................................58
Chart Concepts............................................................................................ 63
Managing Your Charting .........................................................................................................63
Opening, Closing and Saving (General) ..................................................................................64
Special Controls in the New, Open, and Save Dialogs ............................................................70
Searching for Securities with the Find Command ...................................................................74
Deleting Chart and Layout Files ..............................................................................................75
Saving Your Work with Charts ................................................................... 77
What is a Chart?.......................................................................................................................77
Creating a New Chart...............................................................................................................78
Displaying Existing Charts ......................................................................................................79
Saving Charts...........................................................................................................................81
Closing Charts..........................................................................................................................82
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Scanning Charts with the Change Security Commands...........................................................83
Scrolling Charts .......................................................................................................................85
Cloning Charts .........................................................................................................................86
Using the Microsoft IntelliMouse Pointing Device .................................................................87
Combining Multiple Charts with Layouts .................................................. 89
What is a Layout? ....................................................................................................................89
Creating a New Layout ............................................................................................................90
Displaying an Existing Layout.................................................................................................91
Scanning Charts in a Layout ....................................................................................................92
Making Changes to a Layout ...................................................................................................92
Saving a Layout .......................................................................................................................95
Closing a Layout ......................................................................................................................96
Recycling Your Work with Templates........................................................ 97
What is a Template?.................................................................................................................97
Creating a New Template ........................................................................................................97
Applying an Existing Template ...............................................................................................98
Making Changes to a Template .............................................................................................101
Saving a Template..................................................................................................................101
The Default Template ............................................................................................................102
Customizing a Chart's Appearance ......................................................... 103
Chart Window........................................................................................................................103
Inner Windows.......................................................................................................................110
Scales .....................................................................................................................................118
Printing Charts and Data .......................................................................... 133
Introduction............................................................................................................................133
Selecting and Configuring Your Printer ................................................................................133
Customizing the Printout with Page Setup.............................................................................134
Previewing Charts Before Printing ........................................................................................137
Printing Charts and Data........................................................................................................138
Working with Price Plots .......................................................................... 143
Introduction............................................................................................................................143
Base Security Concept ...........................................................................................................143
Types of Price Plots ...............................................................................................................144
Modifying a Price Plot ...........................................................................................................146
Updating and Editing a Price Plot's Data ...............................................................................152
Copying, Deleting, and Moving Price Plots ..........................................................................153
Inserting Price Plots ...............................................................................................................158
Viewing Values on the Chart.................................................................................................158
Working with Indicators............................................................................ 163
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What is an Indicator? .............................................................................................................163
Plotting an Indicator...............................................................................................................163
Modifying an Indicator ..........................................................................................................167
Copying, Deleting, and Moving Indicators............................................................................172
Viewing Indicator Values with the Data Window .................................................................174
Online Indicator Interpretation ..............................................................................................174
Indicator Parameters ..............................................................................................................174
Working with Line Studies........................................................................ 205
What is a Line Study? ............................................................................................................205
Drawing a Line Study ............................................................................................................205
Modifying a Line Study .........................................................................................................208
Adjusting, Copying, Deleting, and Moving Line Studies......................................................211
Line Study Parameters ...........................................................................................................215
Working with the Internet ......................................................................... 227
Internet Integration.................................................................................................................227
Collecting Data through the Internet......................................................................................228
Updating MetaStock Pro........................................................................................................228
E-mailing Charts with the Send Command............................................................................228
Saving Charts as HTML ........................................................................................................228
Internet Shortcut Menus.........................................................................................................229
Equis on the Web...................................................................................................................234
The MetaStock Formula Language .......................................................... 235
What is the MetaStock Formula Language? ..........................................................................235
Price Array Identifiers............................................................................................................235
Mathematical Operators.........................................................................................................236
Operator Precedence ..............................................................................................................236
Formula Functions .................................................................................................................237
Function Parameters...............................................................................................................238
Locating Errors in Formulas ..................................................................................................238
Inserting Functions ................................................................................................................239
Writing Comments.................................................................................................................240
Nesting Functions ..................................................................................................................240
The if() function.....................................................................................................................241
Using "And" and "Or" Operators...........................................................................................241
Referencing Existing Custom Indicators ...............................................................................242
Referencing Securities with the Security Data Function .......................................................243
Using Variables to Enhance and Simplify .............................................................................244
Self Referencing Formulas Using PREV...............................................................................246
The “P” Data Array Identifier................................................................................................247
Formula Tips..........................................................................................................................248
Using the Formula Organizer to Import and Export ..............................................................249
Glossary .................................................................................................................................249
Error Messages ......................................................................................................................251
Functions................................................................................................................................252
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Creating Your Own Indicators.................................................................. 299
What is the Indicator Builder? ...............................................................................................299
Indicator Builder Tutorial ......................................................................................................300
Indicator Builder Dialog ........................................................................................................302
Indicator Editor Dialog ..........................................................................................................303
Copying and Deleting Custom Indicators..............................................................................304
Printing Custom Indicators ....................................................................................................304
Pasting Functions Into Formulas............................................................................................305
Creating Custom Indicators with Multiple Plots....................................................................306
Creating Custom Indicators that Prompt for Input.................................................................306
Sample Custom Indicators .....................................................................................................308
Achelis Binary Waves............................................................................................................312
Errors .....................................................................................................................................316
Testing Your Trading Ideas ...................................................................... 319
What is a System Test? ..........................................................................................................319
Enhanced System Tester Tutorial ..........................................................................................320
The Enhanced System Tester.................................................................................................327
Creating a System Test ..........................................................................................................331
The System Editor..................................................................................................................331
Copying and Deleting System Tests ......................................................................................337
Testing Systems .....................................................................................................................338
The Test View Screen............................................................................................................343
The Results Detail View Dialog ............................................................................................345
Optimization ..........................................................................................................................356
System Development Tips .....................................................................................................359
Technical Reference...............................................................................................................362
Trading Rule Syntax ..............................................................................................................365
Ranking and Screening Securities........................................................... 369
What is The Explorer? ...........................................................................................................369
The Explorer Tutorial ............................................................................................................370
The Explorer Dialog ..............................................................................................................377
Creating an Exploration .........................................................................................................379
Copying and Deleting Explorations.......................................................................................384
Printing Explorations .............................................................................................................384
Running the Exploration ........................................................................................................385
Viewing the Reports ..............................................................................................................388
Sample Explorations ..............................................................................................................393
Exploration Tips ....................................................................................................................395
Getting Expert Advice on Your Securities .............................................. 397
What is the Expert Advisor? ..................................................................................................397
Using Pre-packaged Experts ..................................................................................................398
Expert Advisor Dialog ...........................................................................................................399
Creating an Expert .................................................................................................................400
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Components of an Expert.......................................................................................................402
Defining Bullish and Bearish Trends.....................................................................................403
Writing Commentaries to Summarize and Instruct................................................................406
Using Highlights to Emphasize Specified Conditions ...........................................................421
Using Symbols to Identify Key Points on Charts ..................................................................425
Using Alerts to Grab Your Attention.....................................................................................430
Attaching an Expert to a Chart...............................................................................................435
Copying and Deleting Experts ...............................................................................................436
Printing Experts .....................................................................................................................436
Pre-packaged Experts.............................................................................................................437
Input() Function, Variables, and Multi-plot Indicators..........................................................437
Expert Advisor Tips...............................................................................................................438
Execution Errors in an Expert................................................................................................439
Interpretation of Indicators and Line Studies ......................................... 441
Indicator Guide ......................................................................................................................441
Accumulation/Distribution.....................................................................................................446
Accumulation Swing Index....................................................................................................446
Andrews' Pitchfork ................................................................................................................447
Aroon .....................................................................................................................................447
Average True Range ..............................................................................................................448
Bollinger Bands .....................................................................................................................449
Candlesticks, Japanese...........................................................................................................450
Candlevolume ........................................................................................................................451
Chaikin A/D Oscillator ..........................................................................................................451
Chaikin Money Flow .............................................................................................................453
Chande Momentum Oscillator ...............................................................................................454
Commodity Channel Index ....................................................................................................456
Commodity Selection Index...................................................................................................456
Correlation .............................................................................................................................457
Cycle Lines ............................................................................................................................458
DEMA....................................................................................................................................459
Demand Index........................................................................................................................459
Detrended Price Oscillator.....................................................................................................460
Directional Movement ...........................................................................................................461
Dynamic Momentum Index ...................................................................................................462
Ease of Movement .................................................................................................................463
Envelope ................................................................................................................................464
Equivolume............................................................................................................................464
Fibonacci Studies ...................................................................................................................465
Forecast Oscillator .................................................................................................................467
Fourier Transform..................................................................................................................467
Gann Studies ..........................................................................................................................468
Herrick Payoff Index .............................................................................................................470
High/Low/Close Bar ..............................................................................................................470
Inertia .....................................................................................................................................471
Intraday Momentum Index.....................................................................................................472
Kagi........................................................................................................................................472
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Klinger Oscillator...................................................................................................................473
Line Chart ..............................................................................................................................475
Linear Regression Indicator...................................................................................................475
Linear Regression Slope ........................................................................................................476
Linear Regression Trendline..................................................................................................477
MACD ...................................................................................................................................478
Market Facilitation Index.......................................................................................................479
Mass Index.............................................................................................................................480
Median Price ..........................................................................................................................481
MESA Sine Wave..................................................................................................................482
Momentum.............................................................................................................................482
Money Flow Index.................................................................................................................483
Moving Averages...................................................................................................................484
Negative Volume Index .........................................................................................................489
ODDS Probability Cones.......................................................................................................490
On Balance Volume...............................................................................................................492
Open Interest..........................................................................................................................494
Option Indicators ...................................................................................................................494
Parabolic SAR........................................................................................................................496
Performance ...........................................................................................................................497
Point & Figure .......................................................................................................................497
Polarized Fractal Efficiency...................................................................................................498
Positive Volume Index...........................................................................................................499
Price Channel.........................................................................................................................500
Price Oscillator.......................................................................................................................501
Price Rate-Of-Change............................................................................................................501
Price Volume Trend...............................................................................................................502
Projection Bands ....................................................................................................................503
Projection Oscillator ..............................................................................................................504
Qstick Indicator......................................................................................................................505
Quadrant Lines.......................................................................................................................506
r-squared ................................................................................................................................506
Raff Regression Channel .......................................................................................................508
Random Walk Index ..............................................................................................................508
Range Indicator......................................................................................................................509
Relative Momentum Index.....................................................................................................510
Relative Strength Comparative ..............................................................................................511
Relative Strength Index..........................................................................................................512
Relative Volatility Index........................................................................................................513
Renko .....................................................................................................................................514
Speed Resistance Lines..........................................................................................................515
Spread ....................................................................................................................................515
Standard Deviation.................................................................................................................516
Standard Deviation Channel ..................................................................................................517
Standard Error........................................................................................................................518
Standard Error Bands.............................................................................................................518
Standard Error Channel..........................................................................................................519
Stochastic Momentum Index .................................................................................................520
Stochastic Oscillator ..............................................................................................................521
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Support and Resistance Levels ..............................................................................................523
Swing Index ...........................................................................................................................524
TEMA ....................................................................................................................................525
Three Line Break ...................................................................................................................526
Time Series Forecast..............................................................................................................527
Tirone Levels .........................................................................................................................528
Trade Volume Index ..............................................................................................................528
Trendlines ..............................................................................................................................529
TRIX ......................................................................................................................................531
Typical Price ..........................................................................................................................532
Ultimate Oscillator.................................................................................................................532
Vertical Horizontal Filter .......................................................................................................533
Volatility, Chaikin's ...............................................................................................................533
Volume...................................................................................................................................534
Volume Oscillator..................................................................................................................535
Volume Rate-Of-Change .......................................................................................................536
Weighted Close......................................................................................................................537
Wilder's Smoothing................................................................................................................537
Williams' %R .........................................................................................................................538
Williams' Accumulation/Distribution ....................................................................................539
Zig Zag...................................................................................................................................539
Appendices ................................................................................................ 541
Information About Your Computer System...........................................................................541
Installing and Using MetaStock Pro on a Network................................................................541
Converting Custom Formulas, System Tests, Explorations, and Experts..............................542
Program Performance ............................................................................................................543
Using OptionScope ................................................................................................................543
Suggested Reading.................................................................................................................544
Index ........................................................................................................... 547

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