AI Wizard™ Screen Indicators

Welcome to the Screen, a state of the art confirmation system. Four separate indicators work together to help you time your trade actions.

Fig 1. The Screen – 4 Powerful Indicators

MA Moving Average Indicator

Fig 2. The MA Moving Average Indicator

The black line on the chart is a price line, this is what the price has done based on the period of time you have the chart set to (trading timeframe). In the background on this chart there are red, yellow and green sections. These zones are based on a combination of proprietary moving averages with proven technical algorithms.

This indicator gives a buy or sell representation on the chart. The red area represents a selling zone when price is consistently moving lower. The green area represents a buying zone when the price has consistently risen over time. The yellow zone is a caution, safe zone or neutral area where the price has not picked a direction between the two distinct buying (green) and selling (red) zones.

Indicator Suggestions

Buying Long

Look for a strong movement above the yellow zone into the green and for the price to remain above the safe zone to consider a buying opportunity.

Selling Short

To get a good sell signal, wait for the price of the stock to commit below the yellow safe zone into the red area.  As the price stays in the red zone, this is where short trading opportunities will arise.

Momentum Indicator

Fig 3. Momentum Indicator calculates on a Daily, Weekly and Monthly Scale.

Another confirmation tool on the is the Momentum Indicator. The indicator shows the strength or rate of acceleration of the movement in the price of a stock. The indicator works in either an upward or downward direction. The indicator should be into the green for upward momentum and into the red for downward momentum. We want to see the trend getting stronger into the respective color across month to week to yesterday.

On the , the default momentums are day, week and month. By left clicking on any of the display buttons you can select the timeframe on which you want to measure the momentum. For example, if you are an active trader trading off of a 30-minute chart you might set the long-term momentum on the 180-minute chart, mid-term on the 90-minute and the short-term on 30-minute chart (Fig 3).

Indicator Suggestions

Buying

With the Momentum Indicator, if you are looking to buy, look for a stock that has strong green momentum on the short term Bar.  It must be higher than the momentum on the mid-term bar, and this level should be higher than the long-term Bar. This shows that the stock you are following is gaining momentum strength and may be in a good trend. Good continued momentum may indicate the possibility of a good trade.

Selling

With the Momentum Indicator, if you are looking to sell, look for a stock that has strong red momentum on the short-term Bar.  It must be lower than the momentum on the mid-term bar, and this level should be lower than the long-term Bar. This shows that the stock you are following is gaining momentum strength towards the short term and may be following a solid trend. Good momentum will be indicated by all reds across the indicator and this may offer a good trading opportunity.

The Volume Indicator

Fig 4. The Volume Indicator – Measures the Volume of shares traded.

Found on the Screen, the Volume Indicator gives a reading from 0 to 150. When used as a confirmation tool, we look for Volume to be between 50 and 110. Too low may mean not enough activity to sustain a real move. Too high and the move may be unstable or short lived.

What is Volume?

Volume is the number of shares (or contracts) traded during a specified time frame (e.g., ticks, minutes, hours, day, weeks, months, etc). The study of volume is a basic yet very important element of technical analysis. Volume provides clues as to the intensity of a given price move.

Buying and Selling Pressure Indicator

Fig 5. Buying and Selling Pressure Indicator – “Green Buy or Red Sell”

Found on the Screen, the Buying and Selling Pressure Indicator gives a reading from +100 (green) to -100 (red). We confirm buying or bullish conditions when the indicator is between +50 and +100. We confirm selling or bearish conditions when the indicator is between -50 and -100.

What is Buying or Selling Pressure?

Buying and Selling pressure is what essentially drives the market. If more buyers are buying a stock, the price goes up. If more sellers are trading the market, the price of a stock goes down.