EquityTrader.comAcme Analytics' EquityTrader.com, a website created by John Bollinger of Bollinger Bands fame, strongly reflects his analytical techniques. The website home page (Figure 1) illustrates key aspects of the analysis using a chart surrounded by tabs. Tabs on the left and right of the chart control the number of periods shown and whether the period is daily, weekly, or monthly. Tabs on the bottom have familiar-sounding indicator choices, but the top tabs and the stoplights are unique, as well as the way the price data is shown.
FIGURE 1: EQUITYTRADER. The default chart summarizes 13 sectors composing EquityTrader's definition of the market. Bollinger places an emphasis on volume and normalizing data to facilitate comparison.
The Performance stoplight uses price data, while the Potential stoplight uses fundamental and technical data analyzed by 54 rules governed by fuzzy logic. The price data is shown in a unique color-coded style, similar to candlesticks, that identifies up days with green, down days with red, and candlestick wicks with blue.
Charts are annotated in accordance with the indicator chosen from a lower tab, as well as the Bollinger Bands, powershifts between industry groups, and pivot points. Pivot points and powershifts are described by the website, but the algorithms used to generate them are proprietary. The method used to calculate the potential stoplights is also proprietary. To make up for the proprietary nature of the potential stoplight calculation, a history of the potential rating is shown as a colored strip between the price and indicator windows.
EquityTrader.com assigns a stock to an industry group and the group to a sector. Within the group or sector, stocks or groups are ranked by strong or weak performance. This makes this site unique. To make this determination, data is normalized and rates of return are risk-adjusted for unique items called positive and negative alpha and beta, which adjust for the stock (or industry group or sector) reaction to a bull or bear market environment. About 3,300 stocks are covered.
By using the structure (or tree), the performance of sectors, groups, and individual stocks can be examined using Bollinger's choice of indicators (volume, intensity, accumulation/distribution, on-balance volume, relative strength index, money flow). The price charts also depict powershifts and pivot points, allowing you to make whatever inference you might choose to about the reliability of the indicators.
The professional section (Figure 2) currently offers four categories, with a fifth under construction: Alert Signals, ET Ratings, Bollinger Bands, and Stock Screening. Each category performs screening, but with a different emphasis. Alerts, for instance, hunts for powershifts and pivot points.
FIGURE 2: SCREENINGS. "Upper Band Walkers" are found with a built-in screening capability. Screening can be performed on eight different categories.
A password-protected portfolio allows tracking of individual stocks as well as several portfolios. Each portfolio is given a ranking in terms of potential and shows each stock. Each stock shows values for some of the criteria used in calculating performance and potential. The site is linked to www.bollingerbands.com, which can act as a handy reference as a Bollinger Bands primer. The screen will automatically update with a different symbol chosen at random if you do nothing for three and a half minutes. A chat room is provided with John Bollinger's participation, and there's a bulletin board for upcoming events.
This site is unique in offering both fundamental and technical analysis to screen on stocks. A structure of stocks, industry groups, and sectors with weaker and strong peers is also unique. The approach has a theme that is carefully thought out, starting with indicators that could be used on sectors and groups as well as stocks, normalizing for comparison, and providing both technical and fundamental analysis tools. It is certainly a site worth your time.--Dennis Peterson, Staff Writer
Originally published in the May 2001issue of Technical Analysis of STOCKS & COMMODITIES magazine. All rights reserved. © Copyright 2001, Technical Analysis, Inc.
