UPM19 Ebook

Unleash the Power of
MetaStock® 19
Version 19.0
Printed in the USA

All Rights Reserved
Copyright © 2024
Innovative Market Analysis, LLC dba MetaStock

4548 South Atherton Dr., Suite 200
Salt Lake City, UT 84123
http://www.metastock.com
Except as permitted by law, no part of this help may be
reproduced or transmitted by any process or means without the
prior written consent of MetaStock. By publishing this document
MetaStock, does not guarantee that any information contained
herein is and will remain accurate or that use of the information
will ensure correct and faultless operation of the relevant product
or service. MetaStock provides its products and services as tools
to be used by investors who are aware of the risk inherent in
instruments trading, not as recommendations to buy or sell.
MetaStock, its agents, affiliates, and employees shall not be held
liable to or through any user for any loss or damage whatsoever
resulting from reliance on the information contained within this
document or through the use of MetaStock products or services.
March 2024
0 9 8 7 6 5 4 3 2 1 IP
Table of Contents
Chapter 1 - Introduction..................................................................5
Using MetaStock 19 ...................................................................................... 5
Disclaimer ......................................................................................................... 5
Chapter 2 - Starting with MetaStock ..............................................7
Opening a chart ............................................................................................. 8
Chart Styles and Options ..........................................................................15
Editing Charts ................................................................................................17
Indicators ........................................................................................................19
Line Studies ....................................................................................................21
Chapter 3 - MetaStock Power Tools Overview ............................23
The Expert Advisor™ ...................................................................................23
The Explorer™ ................................................................................................27
The System Tester™ ....................................................................................33
The MetaStock Forecaster™ .....................................................................37
QuoteCenter ..................................................................................................42
OptionScope .................................................................................................49
Indicator Builder™ ........................................................................................58
Downloader ...................................................................................................58
Chapter 4 - Filtering and Backtesting ..........................................59
Why Filter and Backtest? ...........................................................................59
Filtering Instruments ..................................................................................59
Backtesting Instruments ...........................................................................62
Chapter 5 - More on Backtesting ..................................................70
Performing a Multi-System Test .............................................................70
Reading the Report .....................................................................................74
Chapter 6 - Using the Forecaster ..................................................79
Opening a Forecast Analysis ...................................................................80
Probability Clouds .......................................................................................83
Comparing Prices to the Cloud ..............................................................87
Chapter 7 - Filtering and Forecasting...........................................90
Scanning for Events ....................................................................................90
Opening Forecaster Analysis from Charts ..........................................94
Optional Workflow: .....................................................................................97
Unleash the Power of MetaStock 19 iii

Table of Contents
Chapter 8 - Forecasting Using Chart Patterns .............................98

Hand Drawn Patterns .................................................................................98
Copying Patterns from Charts .............................................................. 106
Chapter 9 - Understanding the RMO ......................................... 113
About the RMO .......................................................................................... 113
Rules of the RMO ...................................................................................... 116
RMO Explorations ..................................................................................... 118
Explore for opportunities using the RMO ........................................ 118
Chapter 10 - New Features ......................................................... 120
New Features in MetaStock 19 ............................................................ 120
Themes ......................................................................................................... 120
Changes to Chart Views ......................................................................... 121
Layouts ......................................................................................................... 124
Other Features ........................................................................................... 128
Chapter 11 - Working with Local Data ...................................... 139
Creating a new List ................................................................................... 139
Adding Instruments to the List ............................................................ 142
Saving the New List ................................................................................. 147
See the related video at www.metastock.com/upm. .......................... 149
Unleash the Power of MetaStock 19 iv

CHAPTER 1 I N T RO DU C T IO N
Using MetaStock 19
MetaStock is an all-in-one toolbox designed to help you identify trading
opportunities. It will allow you to chart, scan for opportunities, test your trading
ideas, review options pricing and risk graphs, and even forecast pricing based on
past technical setups. The elements that will be discussed will show you practical
approaches to identifying and managing opportunities in MetaStock 19. While the
ideas and methods contained here will guide you on how to use MetaStock and
ways to identify trades, we recommend that you also use the Getting Started with
MetaStock manual to help you understand the basics of the program. We also
recommend that you reference the product help within MetaStock. Simply open
MetaStock and press F1. Throughout this manual, you will find icons next to the
text that match those found in the program. This will help you quickly identify the
referenced functionality in MetaStock. Most of all, we hope that you find this text
and video set useful. The companion videos will be especially useful in helping you
follow the workflows. You can view the companion videos at www.metastock.com/
upm
Disclaimer
This product is not a recommendation to buy or sell, but rather a guideline to
interpreting the specific analysis methods. This information should only be used by
investors who are aware of the risk inherent in trading. MetaStock accepts no
liability for any loss arising from any use of this product or its contents. MetaStock
and its employees do not endorse the purchase of any security nor is it paid for the
promotion of any security. No information contained in this presentation should
be construed as investment advice or a solicitation to buy any security.
NO INVESTMENT ADVICE:
You agree that (a) any Service provided is for informational purposes only, (b) any
investment decisions you make are solely at your own risk, (c) neither MetaStock
nor any of its licensors nor third party information providers shall be responsible or
liable for any trading or investment decisions made based on information provided
by the Service, (d) the Service does not recommend any securities, financial
products or instruments, nor does the Service provide any investment advice or
opinion regarding the nature, potential, value, suitability or profitability of any
particular security, portfolio of securities, transaction, investment strategy, or
financial product, and (e) the Service does not provide tax, legal or investment
advice.
Unleash the Power of MetaStock 19 5

Chapter 1: Introduction
CFTC Rule 4.41

Hypothetical performance results have many inherent limitations, some of which
we describe below. MetaStock makes no representation that any account will, or is
likely to, achieve profits or losses similar to those shown. There are frequently sharp
differences between hypothetical performance results and the actual results
subsequently achieved by any particular trading program. One of the limitations of
hypothetical performance results generally benefits from hindsight in their
preparation. Additionally, hypothetical trading does not involve financial risk, and
no hypothetical trading record can completely account for the impact of financial
risk in actual trading. For example, an individual's tolerance for loses and discipline
in following a trading program in spite of losses are material points which can also
adversely affect actual trading results. Hypothetical performance results cannot
fully account for numerous other factors related to the markets in general or the
implementation of any specific trading program. All of these factors can adversely
affect actual trading results.
Characteristics & Risks of Standardized Options

Prior to buying or selling an option, investors must read a copy of the
Characteristics & Risks of Standardized Options, also known as the options
disclosure document (ODD). It explains the characteristics and risks of exchange
traded options. Copies of this document may be obtained from your broker or
from any exchange on which options are traded.

CHAPTER 2 S TA R T I N G WIT H M E TA S TOC K
When MetaStock is first opened it will launch in either a dark or a light theme,
depending on the settings in Windows. The theme may be changed. This will be
covered in a later section. For ease of use, the majority of images in this manual
will be in the light theme for simplified printing by users who choose to do so.
When first opened, MetaStock presents you with a dialog box called the Power
Console.
The Power Console is the heart of MetaStock and is designed to allow you quick
access to Chart, Explore, Manage and View lists, Back Test, view and analyze
options, or Forecast. This manual covers all of these and shows you how to use
them in MetaStock to find opportunities. As you work with MetaStock, you may
find some workflows more useful to you than others. That is normal. Everyone
trades differently and manages their trades differently. This manual starts by giving
you an overview of the Power Console and other tools in MetaStock. Once those
have been covered; the manual then provides an overview of trading strategies.
We also recommend viewing the accompanying videos found at
www.metastock.com/upm.

Chapter 2: Starting with MetaStock
Opening a chart
Choose the in the Power Console. The button turns orange when
selected. This button gives you access to the charting functionality inside the
Power Console.
The first way to open a chart is by typing a symbol directly. If you know the symbol,
click on the Instrument(s) line of the dialog box.
From here, you simply enter your Instrument, and you are then ready to open a
chart. If you do not know the symbol, you can choose the Instrument Search
button. That gives you a dialogue which lets you search for instruments based on
what you know of the symbol or the name. When you enter text, it narrows down
to instruments that meet your criteria.

For example, select the Name radio button and Starts with. Then type in FORD.
The box narrows down to a set of symbols that match that criteria.
Hint: You can Select any of the instruments by double-clicking, and it populates automatically in
enter multiple the Instrument(s) dialogue.
instruments into
the box by
entering a space
between the At this point, you can open the chart; however, there are other ways that
instruments.
instruments can be selected. The Instrument Tree is found directly under the Select
Instrument(s) box.
MetaStock
disables the
Instrument Tree if
the Instrument(s)
line contains any
text.

The list of instruments (securities) is the full universe of what is available,

depending on your data subscription. Note that the list of securities in the image
may not reflect the number shown in your Power Console instrument list. Symbols
are updated automatically on a regular basis, and the numbers may change when
the lists are updated.
You can continue to select arrows and narrow down what you want to review.
However, as a trader, your focus is probably on only one or two markets. So let’s
review having MetaStock only show the symbols for a few markets. To do this,
right-click on the word instruments:

Select the option Manage Public Lists, and the Public List Editor appears. This
dialog allows you to see only the lists that pertain to what you want to track rather
than the entire global list. The left window shows the Available Lists. The right
window shows lists selected to display in the Power Console.
This example shall select the US and Canadian Instruments. Scroll the list down to
find exchanges to include in your Power Console. You can select multiple lists at a
time by selecting the first in the list you want. Then hold the shift button on your
keyboard and select the last list you want. The selected lists become highlighted in
blue.

Choose the arrow pointing to the right, as shown in the image below, to move the
selected lists to the right.
The Displayed Securities box on the right must contain one header, such as:
Equities - North America. This is so MetaStock can keep them catorgorized for the
Power Console.
There are several options to choose from, including global stock lists, global
futures, and indices. There are also lists for Index Constituents. Once your list is
customized, You can move the entries up and down. You can also create a custom
header by choosing the button.

Once you have defined the lists, you can either choose the button, to
save your list and then choose the button to return to the Power
Console, or you may choose the button and you will be prompted to save
your changes before closing. Either workflow is acceptable.
To view the lists in the Power Console, choose the arrow next to the Public Online
Data lists (notice in the list that the number of instruments has decreased due to
the reduced selection of lists). You can also expand each section to a granular view
of the instruments included in the list.
Now that the lists appear as we want to see them, it is time to open a chart. For this
example, we shall use .DJA to open the chart. When you enter text in the Select
Instrument dialog box, the Instrument Tree becomes grayed out.

There are three sections to choose defaults or settings for once you open the chart.
These individual sections have arrows contained in them to expand or collapse the
full view for your convenience. This view shows them expanded.
Option Descriptions
Range How much data to display/load.
The default data loading for a daily chart is
Display/Load 1250 records. The default display range is
Default Record 250 records.
Display/Load Display maximum displays all loaded data.

Maximum Records Load maximum loads all available data.
Exchange Date Specific times set by set by the user.

Time
Sets the periodicity of the chart. Defaults of
Interval
Daily.
You can choose from any pre-created tem-
Apply Template
plates or from user-created templates.
You can choose from any pre-created
Expert Advisor
Experts or from user-created Experts.

After setting your selections, choose .

Many options become available once the chart opens.
Chart Styles and Options

MetaStock provides 16 charting styles (Price Styles) when viewing pricing
information:
• Bars
• Candlesticks
• Equivolume
• Heikin-Ashi
• Line
• Stepped Line
• Filled Line
• Stepped Filled Line
• Dot
• Histogram
• Point and Figure
• Renko
• Kagi
• Three Line Break
• Range Bars (New)
• Range Candles (New)
The price style is the data displayed on the chart by the instrument's price
information. You can change many aspects of the price plot's appearance. Each

charting style will reflect different options based on the Price Styles settings. You
can change items such as Up/Down Color, Up/Down Mode, Fill Mode, and Weight.
To modify the charting style on the chart, open the chart to be changed. There are
multiple ways to change the price plot. Select Format > Prices, right-click on the
price plot and select Properties, or simply double-click on the price plot.
Select the price style, color, or line weight you wish to use. Click to close
the window.

Editing Charts
Zooming
Sometimes you want to see a small section of a chart up close. There are many
ways to change the zoom level:
• Use the Zoom In and Zoom Out icons.
• Hold down the CTRL key on your keyboard and roll your mouse wheel up or
down.
• Use the Zoom Box icon.
Icon
Icon Description
Name
Zoom Click the icon in the lower right corner of the chart
Out to zoom out on the chart.
Zoom In Click the icon in the lower right corner of the chart
to zoom in on the chart.
Zoom Click the Zoom Box icon at the top of the screen,
Box then click and drag a rectangle around a section
of the chart to zoom in on the area within the
rectangle.
Scroll Bar Click an edge of the focus setting in the scroll bar
and drag back and forth to change the zoom
level. The left side will scroll back and the right
side will scroll forward.
Default Template
Note: Changes The Default Template allows you to set a newly opened chart to a predefined look.
made to the default
template do not This way, you can have the same set of indicators or color schemes apply to all of
affect charts opened the charts you open automatically. The default template is a template that is
before your exactly like a custom template, except that MetaStock automatically applies it
changes. Those
older charts need to when you are opening a new chart. The default template that ships with
be deleted or MetaStock creates a chart with candlesticks and volume.
individually
changed.

To quickly make the information in the currently selected chart the default
template, right-click on the chart and choose Save as default template.
Chart Windows
MetaStock displays each chart in a separate window. There are several commands
to control how those windows are displayed. Tile and Cascade are common to
most Windows applications. Stack, Column, and Automatically Tile are unique to
MetaStock. These buttons are on the Standard toolbar.
Icon
Icon Description
Name
Tabbed This arranges the charts in a tabbed view similar
to a web browser. Charts can be selected by
selecting the tab of the chart. Charts can also be
dragged out and arranged out of the tabs.
Cascade This arranges the open chart windows in an over-
lapping formation so that only the title bars of all
but the front chart are visible.
Column This arranges the open chart windows from left to
right in vertical columns so that all are completely
visible on the screen.

Icon
Icon Description
Name
Stack This arranges the open chart windows so that the
charts are stacked on top of each other and are
fully visible. Arranging them in a stacked forma-
tion allows you to easily compare charts across
their date axes.
Tile These two options arrange the charts in different
tile modes. They react differently as you add more
or
charts.
If tile is a preferred method of arrangement, then
you can alternate these two tile modes to get
your preferred view.
Auto Tile This arranges the open chart windows from top to
bottom and left to right so all are visible on the
screen. With this selection, MetaStock will rear-
range the charts as you open and close them.
Indicators
An indicator is simply a mathematical calculation applied to some or all of the price
fields and/or volume. Indicators can be plotted in the chart to show a graphical
representation of these calculations.
To learn more about inserting and applying indicators, refer to the Getting Started
with MetaStock manual.
There are two ways of plotting an indicator in MetaStock. You can choose Insert >
Indicators to display and use the Indicators dialog. You can also drag and drop an
indicator from the Quicklist.

The Indicator Quicklist (located on the standard toolbar) provides quick access to
all the indicators in MetaStock. You can drag indicators from the list by holding
down the left mouse button and dropping them on your charts.
• If you drop the indicator on an inner window title bar, MetaStock puts the
indicator in a new inner window above the title bar.
• If you drop the indicator on the X-axis, MetaStock adds the new inner window
at the bottom of the chart.
• You can also drop an indicator on any existing plot. Moving Averages,
Envelopes, and Bollinger Bands are almost always dropped on an existing plot
since you usually want them merged with a plot.
• Many classic indicators in MetaStock are designed to be “smart” and will
automatically plot in their own window or overlay on the chart.
A quick way to get to the desired indicator in the Indicator QuickList is to display
the Indicator QuickList and then type the first letter of the indicator's name. The list
will filter down to indicators that either start or contain that letter. As you continue
to type, it will filter down to the indicators that match what you are typing. You can
clear out the box to start a new search.
Note: When you are After you have plotted an indicator, you can modify any of its properties (for
clicking on an
indicator and the example, color or number of periods) with the indicator's properties dialog. Right-
indicator is closely click directly on the plotted indicator and choose Properties from the shortcut
surrounded by other menu.
plots, a pop-up
appears, prompting
you to choose the
desired plot
(indicator) to ensure
the correct plot is
selected.

The properties dialog opens, allowing you to edit the properties of the indicator.
Choose any of the tabs and make your desired changes. Click to close
the dialog.
You can also open the indicator properties dialog by double-clicking directly on
the plotted indicator or by selecting the indicator and then choosing Format >
Selected Object.
Line Studies
Line studies are one of the most popular tools in MetaStock. They help you see
trends and patterns in a chart, which can give you an edge when making trading
decisions. Every line study contains its own parameters you can access by right-
clicking directly on the study. Most line studies plot within a single inner window.
However, some line studies (for example, cycle lines, Fibonacci Time Zones, and
vertical lines) can span vertically across all inner windows within a chart.
Line studies are drawn on a chart by either choosing the line study from the Insert
menu or selecting the desired icon on the appropriate drawing toolbar. The
toolbars surround the chart on the left and right and can be moved around to
desired locations. You can also turn the toolbars on or off by right-clicking on any
toolbar and deselecting a check box.
Line studies are attached to the plot closest to the mouse pointer when you first
click to begin drawing.

• If the line study is trendline based, position the mouse at the starting point,
click and hold the left mouse button, and drag the line study to an ending
point. Then click the left mouse button again to indicate the ending point.
• If the line study is not trendline based, position the mouse at the location you
want to anchor it and click the left mouse button.
You can delete a line study by:
• Right-clicking on the line study and selecting Delete from the shortcut menu
• Selecting the line study and pressing the delete key on your keyboard
• Selecting Edit > Delete All or press ALT+DEL to quickly delete all line studies
from a chart.

CHAPTER 3 M E TA S TOC K P OWE R T O O L S O V E RV I E W
The MetaStock Power Tools help you avoid spending time analyzing charts one by
one. With them, you can quickly: identify opportunities by scanning through the
market, backtest your strategies, understand the direction of price, and get Buy
and Sell signals on your chart. These tools are designed to help guide you through
the trade and take the emotional aspect out of the trade. It is no secret that making
emotional decisions in trading can lead to failure. The Power Tools are designed to
help you as a trader take the emotion out and protect what is most important in
trading: your capital and your profits. This section gives a brief overview of the
tools and how to access them in MetaStock.
The Expert Advisor™

The Expert Advisor is a collection of trading strategies which, when attached to a
chart, can help keep you informed on the current technical state of a chart. It does
this by using underlying indicators to generate the buy and sell signals on your
chart. When an expert is attached, you may see:
• Buy and sell signals based on indicators
• Candle patterns labeled on your charts
• Descriptive commentaries based on technical indicators and strategies
• Messages (e-mail and pop-up messages with sounds or video)
• Descriptive symbols on your charts

Chapter 3: MetaStock Power Tools Overview
To attach an expert advisor, you can select it from the Power Console before you
open a chart by selecting the expert under the Attachment section of the Open
Chart Dialog.
There are multiple ways you can access the Expert Advisor once a chart is open.
You can select the Expert Advisor from the Standard Tool Bar by choosing the
Expert Advisor icon.

Going to Tools > Expert Advisor
Or Right-clicking on chart and choosing Expert Advisor, then Attach....

You can use the search dialog box to filter for a particular expert or scroll to find the
expert you choose. In this example, MACD is entered into the search box, and
MACD by MetaStock is selected.
Select . The expert then plots on the chart. Below is an example of

International Business Machines (IBM) with the MACD by MetaStock Expert
attached.

To open the Expert Commentary window, for a walkthrough of the signals on the
chart, choose View > Expert Commentary. That displays the Expert Commentary
window on your chart.
The Explorer™
The Explorer is a powerful multi-purpose analysis tool that can perform in-depth
"explorations" on multiple instruments.
The Explorer lets you perform many specialized tasks, including:
• Comparing
• Filtering
• Listing multiple indicator values for multiple instruments
• Ranking
• Searching
• Showing instruments with current buy/sell signals
• Sorting
You can use the Explorer to discover which instruments:
• Have just generated a "buy" (or "sell") signal based on the values of an indicator
• Have just crossed above their 200-day moving average on increased volume
• Rank highest by Wilder's RSI or other indicators
• Are above their 10-week moving average, with a Stochastic of 80 or higher, and
are at a level of 4 on a customized binary wave

You can use the Explorer to generate:

• Performance reports of all your mutual funds
• Lists of every instrument you want to track
• The values of your favorite 12 indicators you want to track
Access the Explorer by choosing from the Power Console or by choosing

the Explorer icon from the Standard Tool Bar.
Once you have selected the Explorer icon, the Power Console presents two boxes.
One is to choose the exploration (technical criteria), and the other is to choose the
set of instruments.
Notice that MetaStock comes with hundreds of explorations. To avoid looking

through the full list, you can add the explorations you use frequently to the

exploration Favorites. Right-click on CandleStick Bearish Patterns. Select Add to

Favorites.
In lieu of favorites,
you can also use
the Search
dialogue box. This
box will let you The CandleStick Bearish Pattern is now in the Favorites section. You must click on
type in and filter
based on desired the Favorites tab to view the selections added to the Favorites. If you click on the
criteria. For All Explorations Tab, you’ll note that the exploration will appear in both sections.
example: Type in
MACD, and it will
display all scans
using the term
MACD.
You can remove explorations from favorites by right-clicking on them and

selecting Remove from Favorites. This action does not delete the exploration or its

report. The exploration is only removed from the Favorites section and is still in the
full list of available explorations.
For this example, select the MACD - Expert System. Then expand the
Instrument List and select the S&P 100.
Once the Exploration and the list are selected, then there are other selections to be
made:

Option Descriptions
Load Minimum Loads the number of records required based on the
Records scanning criteria.
Records to load Sets a user-defined number of records to scan.
Exchange Date Set the date for the exploration. The date/time is for
Time setting a date in the past for reviewing past data.
Interval The time frame for the Exploration
If activated, MetaStock restricts the results on an

exploration to just those instruments which meet
Use Filter
the conditions of the explorations filter. If no filter is
defined, this option has no effect
This is for searching multiple lists or using multiple
Multiple filters on the same list. "Explore for opportunities
Exploration Options using the RMO" on page 118 shows an example of
this.
After making all selections, click the to begin your exploration. Once
the exploration begins, MetaStock displays a window showing the exploration
status.

When the exploration finishes, MetaStock displays the report in the bottom part of
the window.
This report shows an example of the instruments that meet the criteria selected.
To open a chart from here, you can either select and highlight an instrument(s) and
choose ; or you can double-click on any instrument. Either method opens the
chart(s) for you. You can leave the Explorer dialogue open while you work with
charts. You can also select to view a quotelist and then use the list in
QuoteCenter.
After you have opened the chart, a follow-up workflow would be to attach the
Expert Advisor (see above) to see the current signal and Expert Commentary. See

the below example of AVGO.O with the MACD by MetaStock Expert attached along
with the MACD indicator.
The System Tester™

System testing involves the development and testing of trading systems to
determine the systems' historical profitability. System testing helps answer the
question, "If I had traded this instrument using these trading rules, how much
money would I have made or lost?" The System Tester also shows you which
instruments work well with which systems. MetaStock comes with dozens of ready-
made systems you can use to backtest against instruments.

You can also test your trading ideas with the System Tester. Including the following:
• One system on one instrument
• Several systems on one instrument
• One system on many instruments
• Several systems on several instruments
To access the System Tester choose the from the Power Console or by
choosing the System Test icon from the standard toolbar
or by choosing Tools > System Tester.

The System Tester options are all located on one screen for you to set your testing
conditions. This section gives a brief overview. For more detail, see "Filtering and
Backtesting" on page 59 and "More on Backtesting" on page 70.
Once you have selected the System Test icon, MetaStock displays two boxes. One is
to choose the System Test (technical criteria), and the other is to choose the set of
instruments.
The system test

favorites and the
explorer favorites
are two separate
lists. Actions
affecting one
favorites do not As with explorations, MetaStock comes with a large number of system tests.
affect the other Similarly, you can right-click on a system test and add it to a favorites list.
one..

Activate the box in front of the system to be used. This example uses the MACD
Expert System test. To select instrument(s), either enter a specific security in the
enter Instrument(s) box or select multiple instruments from the Instrument tree.
The next step is to set the testing options.

Option Descriptions
This allows the system tester to take only
Long trades
long trades.
This allows the system tester to take only
Short trades
short trades.
This allows the system tester to take both
Both
long and short trades.
This allows for a selection of periods. For
example, 250 records would test 250 bars on
Use Last
a daily chart or 250 5-minute bars if select-
ing a 5-minute chart.
This allows for a selection of specific date
Exchange date/time
ranges for a test.
This allows for selection of time frame. For
Interval example, you could test your strategy on
daily or weekly data.
This opens a new dialogue box that allows
for selections on Reporting, account sizing,
Trade Options broker commissions, and trade execution.
These are covered in more detail in "Filtering
and Backtesting" on page 59.
Begin the System test by choosing the button.
The System Tester simulation completed dialogue appears when the test finishes.

Choose the button to view the system test results. That shows the
results of the system test.
The tabs and results show the overall results of the test:
To review the sections and all the categories, click on the button in the top
right-hand corner. This explains the tabs and all the information contained in the
results. "More on Backtesting" on page 70 includes how to reference the top
sections of data and how to interpret them.
The MetaStock Forecaster™

Forecasting is a science that allows us to look at how price behaves after an event
has occurred. An event can be anything from a Moving Average Crossover to a
single-day Candlestick pattern. The ranges of events can be varied; however, our
main concern as traders is, "what happens to price after an event happens?" Does
price tend to move up, move sideways, or trend down? These are the questions
that The MetaStock Forecaster helps answer. We can see a confluence of prices in a
Forecast Cloud, so we can observe what price tends to do.
The Forecaster allows you to:
• See a Forecast Cloud of how price trends up to 180 days after an event occurs
• Scroll through relevant events (up to 67) to see past performance.
• See past events plotted on the chart and how those past events performed.
• Use the explorer to find events and then match them in the Forecaster.
• Show higher intensity price probability by showing brighter colors.

Example Forecast Cloud:
To access the Forecaster choose from the Power Console or by

choosing the Forecaster icon from the standard toolbar
or by choosing Tools > Forecaster. The Forecaster can also be launched from any
active chart by right-clicking and choosing Forecaster.
Choose which Instrument to open by either selecting the Instrument(s) dialogue
box or from the Instrument(s) tree.

This example uses .SPX.
Selections for forecast use the following.

Option Descriptions
Loads 1250 Periods of data.
Load default This is the recommended option as loading
records more data may negatively affect the Fore-
caster’s calculation speed.
Load maximum Loads the full data history
records
Loads specific date ranges selected by the
Exchange data/time
user.
Interval Loads the specified interval
Launches a new window giving options for
Options
recognized events.
Start Forecaster Launches the Forecaster Application

Once the Forecaster is launched, it opens as a new, separate charting application.

An example of the Forecaster window appears as below.
The Forecaster shows a chart with yellow triangle arrows above and below the
price chart. These are not indicative of buy and sell arrows but show when an
"event" occurred. The event can define a technical setup or when the signal
occurred. Do not confuse them as Buy and Sell alerts. Here is an example chart with
event markers.
Below the chart is the list of recognized events with options for sorting.

After you chose an event, the Forecaster gives a Statistical Report. It also shows
Event Dates under the events date tab.
The probability scale allows you to select the probabilities you want to view. You
control that by moving the scale from low to high.

Selecting the Forecast Cloud tab displays the current forecast cloud for the
selected event.
"Using the Forecaster" on page 79 includes more detail on how to use the cloud.
QuoteCenter
QuoteCenter is a multi-function tool to see the current status of the securities in
which you are interested. You can view your pick list, your positions, your indices,
or any other list you choose. More than that, you can easily build and set up lists
using QuoteCenter.
Sort on a variety of criteria to view the data important to you, then double click on
a security if you want to see a chart. It’s a fast and easy way to make your workflow
more efficient than ever.
The version of MetaStock you have determines the type of data you can see.
MetaStock R/T customers have the option to view data in real-time. MetaStock D/C
customers can work with online data from Datalink or use your offline data in
MetaStock compatible formats.
• View Symbol, Name, Tick, Last, High, Low, Open, Open Interest, Volume, Net
Change, Percent Change, Date (or Time in MetaStock R/T, as well as Bid and Ask)
• Open Charts directly from QuoteCenter with just a click
• Open any list from Power Console (up to 600 instruments)
• Select any group of stocks to open in QuoteCenter
• Create and Manage lists
• Sort and rank on columns
• See how your list is performing. QuoteCenter will show you the number/
percentage of gainers/losers.

You can access QuoteCenter by choosing from within the Power

Console or by choosing the QuoteCenter icon from the Standard Tool Bar.
From here, you can easily select lists to work with or build a custom list to use
instead. This section covers how to build a list or use a prebuilt list. We shall first
open a list using a prebuilt one included in MetaStock.
Once you select the QuoteCenter icon, the Power Console presents you with your
lists. If you followed the instructions in the previous chapter and narrowed down
your lists to markets you follow, only those lists appear; otherwise, the global lists
appear. Either one is fine. This example includes North American Securities, but the
procedures for opening any list (including local) is the same. The only difference for
local lists is that the lists display under the local lists section.

This example uses the S&P 500 list. Select the box next to this list, and the next
pane then displays the symbol list of the S&P 500.
If you want to open this list as is, choose . However, before we

proceed to open the list, let’s review what to do if you want to make changes to the
list. If you select any of the instruments in the Selected Instruments dialogue, they
become highlighted in blue. To make multiple selections, hold down the shift
button and drag your cursor to highlight in a row, or you can use the CTRL + select
to highlight multiple selections. After highlighting some instruments, you can
select to delete those items from the list.

Deleting those instruments reduces the size of the selected S&P 500 list. The
instruments deselected are only removed from the list you are opening; it does not
change the built-in list.
With our list customized, choose . This launches QuoteCenter.

The Gainers Losers
bar shows you
how many in your
selected list are
up/down for the
day. It displays the
count and
percentage.
Different versions of MetaStock use different headers in QuoteCenter. For example,

instead of "Time" in R/T, D/C shows "Data" in D/C. D/C also does not provide Bid/

Ask data. The source column tells you if you are looking at data that is online or
offline data.
Any of the column headers that you see are also sortable. You can click to sort
You can add/
ascending and double click to sort descending. This image shows volume sorted in
remove columns
from the settings. descending order. Note: Volume shows a down arrow denoting descending order:
You can access
settings for the
QuoteCenter
application by
clicking the
arrow on the left
taskbar.
If you wish to add to the list of securities you can enter the symbol into the Add
Instruments box.
And then choose Add.
This adds the new instrument(s) to your list and bolds it.
You can add/remove columns and change the theme from the grid settings.
Simply select the settings left/right arrow to access settings or turn off settings
view.
When your list is displayed, you can use QuoteCenter to open charts and have
them displayed in MetaStock. Do this by double-clicking anywhere that contains

data on the symbol you want to open. That action displays the line item that you’ve
double-clicked.
Each chart you open appears in MetaStock. You can also open multiple charts at a
time by holding shift and selecting a group of stocks, or CTRL + Click to highlight
multiple instruments. Once you have selected the desired instruments right click
and choose “Open Selected Instruments in a chart.”
Alternatively, you could delete the selected items by choosing the delete option.
Once you are done working with your list, you can either discard your changes or
save them. If you do not want to save your changes, close QuoteCenter and then

say yes when asked to close the window. The rest of this section explains how to
save your list.
QuoteCenter gives a list a temporary name called "QuoteCenter List 1" (or assigns
another temporary number). If it assigns another number than 1 that means it
already saved a list 1. You can use the QuoteCenter naming by clicking save, or you
can give it a different name by clicking Save as.
You would then give your list a name and choose save.
After you save a list, you can exit out of the QuoteCenter App without losing it. If
we want to use it again, we can return to the Power Console and view it under the
QuoteCenter Tab.

You can open the list from here, or you can go to the Use Existing List tab. Highlight
the list and click . All the custom lists you have created show up
under “Use Existing List.”
OptionScope
OptionScope puts all critical information about options at your fingertips.
OptionScope will display options chains in a sortable and customizable way. It will
also display a bar that will highlight the volume and open interest on the displayed
list of options. You will also be able to view risk graphs of option plays based on
several different strategies.
The OptionScope filter window makes honing in on the data you want to see a
breeze. Of course, MetaStock’s legendary charts are just a click away, saving you
time and effort.
• MetaStock D/C customers can view Option Chains for any US Optionable Stock
(requires additional options data)
• MetaStock R/T customers can view Real-time Option Chains for any global
optionable equity
• View Puts/Calls with Net Change, % Change, Bid, Ask, Implied Volatility, Close,
Open Interest, and Volume
• View Greeks: Delta, Gamma, Theta, Vega, and Rho
• Sort by Expiration Date, Strike Price, Filters, Expiration Type, In/Out of the
Money and Greek Parameters
• Filter on Expiration Date, Strike Price, Expiration Type, In/Out of the Money, At
the Money, and Greeks.

Choose in the Power Console.

Alternatively, you can choose the OptionScope button from the Standard Toolbar.
You can also open OptionScope for any open chart by right-clicking on an open
chart and choosing OptionScope.
Selecting to open OptionScope from the Power Console gives the most flexibility,
allowing you to filter the data before OptionScope opens. The workflow presented
here will cover opening from the Power Console. You can analyze one security at a
time in the OptionScope app. This workflow uses the symbol AAPL.O in the
OptionScope app. Begin by typing the instrument into the Instrument line of the
Power Console. If you do not know your symbol, you can use the instrument search
to identify the symbol you want to use. Remember that the symbol must be
optionable, and you must be subscribed to the correct data to be able to access
OptionScope.

Before we select to open OptionScope, you can narrow down the results of what
you choose to see if you prefer. For this workflow, select Options that expire in the
next 90 days, are within 15% of the strike price, and all expiration types. More
selections are available when OptionScope is open. Proceed to choose
.

MetaStock presents you with a grid view of OptionScope.

On the top left of the screen, you will see a left arrow. Click on the left arrow, and it
will display the options for filtering in the OptionScope Settings. You can expand
any of the filters by selecting the down arrow next to each filter type.

Note that OptionScope will match the settings that were selected in the Power
Console before loading the OptionScope window.

You can change the filters by simply selecting any filter you choose, or you can
reset by selecting the clear all filters.
OptionScope displays the data In the Grid Section with Calls on the left and Puts on
the right. Expiration Date of the Option and Strike Price appear in the middle. Rows
colored blue indicate that option is In the Money. Out of the Money options appear
in gray.

You can see by applying different filters that you can narrow down the data that
appears.
Once you’ve narrowed down the filters and want to be more specific, it is possible
to double click on any of the options listed, and MetaStock opens a chart of the
specific option. The example below selects two options and shows the
accompanying charts.
For help with how to use any of the columns, you can refer to the help in
OptionScope.

The Volume and Open Interest Graph is designed to help you see where the Open
Interest and Volume are sitting. Is the option (and thus the underlying security)
bullish or bearish? From this sample, you can see that both the volume and open
interest are higher on the call side.
This Graph is designed to help understand the underlying sentiment of the

underlying security and option. Using this graph can help a user see if they are in
agreement with the rest of the market interested in the security.
The Graph also allows users to select a TOP button.
By pressing the Top button of either Vol (Volume) or OI (Open Interest),

OptionScope will highlight the option with the highest matching selection. In this
example, the OI was selected, and then the highest Open Interest Option was
highlighted. This allows the user to see where the highest interest is.

At the bottom of the OptionScope Grid is a feature that allows you to chart risk
based on the strategy selected.
The ability to chart risk based on your strategy is critical, and you should be familiar
with the underlying strategy and the risks associated with options before you trade
options. For this feature, more information will be provided in the instructional
video found at www.metastock.com/upm.
Indicator Builder™
The Indicator Builder is a tool that allows you to build and design custom
indicators. MetaStock comes prebuilt with a large collection of tools that are ready
to use; however, you have the ability to custom design your own indicator sets. To
learn more about the Indicator Builder, go to
http://www.metastock.com/customer and look for the Formula Primer. That book is
a free resource that shows you the basics of MetaStock formula writing.
See the related video at www.metastock.com/upm.
Downloader
Downloader is a program designed to help you manage local data. With MetaStock
XV and higher, you can read data files that are stored locally on your computer. The
Downloader program collects and stores that data. Downloader uses Datalink™ to
save data directly to your hard drive. It also lets you convert other files into
MetaStock data formats. Data management is very easy and covered in "Working
with Local Data" on page 139.

CHAPTER 4 F I LT ER I N G AND B ACK T E S T I NG
Why Filter and Backtest?

A sound approach to finding tradable stocks (or any asset type) with MetaStock is
using a simple three-step approach:
1. Use the Explorer to filter a large list of stocks to find those triggering a trading
system's active buy (or short) signals.
2. Use the System Tester to backtest the trading system's buy/sell rules to
determine historical profitability.
3. Use the Expert Advisor to inspect the trading system's buy/sell signals on chart
AND to monitor the trading system for future buy/sell signals.
This workflow allows you to take your instruments (stocks, futures, or FOREX) and
narrow them down to the instruments that meet your criteria. You can start with a
custom list of your favorite instruments, a common list like the Nasdaq 100, or any
worldwide exchange.
Once you have identified the instruments that meet your criteria, you can backtest
the stocks to see how the trades performed. This process gives better insight into
which ones may work best.
Filtering Instruments
Access the Explorer by choosing from the Power Console or by choosing
the Explorer icon from the Standard Tool Bar.

Chapter 4: Filtering and Backtesting
Once you have selected the Explorer icon, MetaStock presents two boxes. One is to
choose the exploration (technical criteria), and the other is to choose the set of
instruments.
Use the Search Scroll through to identify the exploration you would like to choose, and then click
Function to search the arrow to expand the instrument list and determine the list you would like to
for the Exploration
to be used. scan against. In this example, the MACD - Expert System is selected and the S&P
500.

Choose . Once the exploration starts; a window opens showing the

exploration status.
When the exploration finishes, the report is displayed in the lower half of the
window.
This image shows an example of the instruments that meet the criteria selected.
Depending on the number of results, it may be difficult to decide which instrument
to trade. The System Tester can help us to determine which instruments to trade.

Backtesting Instruments
To System Test the results of the Exploration, close the Exploration Results, return
to the Power Console and choose the System Test icon.
In the System Test List, select the system to match the exploration. In this case,
select the MACD Expert System, and in the Instrument Tree, select the Last
Exploration Results List (Hint: This list always shows the results of the last
exploration).
Use the Search
Function to search
for the System Test
to be used.
In the options dialog box, the selections to be made will depend on how you trade
and your tolerances for trading. To begin, select Long Trades, Short Trades, or Both.
In this example, the Both option will be selected. The range can be variable. In this
example, 1250 records will be used, or approximately five years of daily data for the
test. These options can be changed based on the user's preference.

Choose Trade Options.
Click on the Account tab. Here set the Initial Equity to the amount in the
hypothetical trading account, then change the Default Size to Percent of
Available Equity. Enter an amount for the hypothetical trading scenario. This
example will use $100,000. Then, choose the amount to risk in the hypothetical
trading scenario. For this example, select a risk amount of 10% (or a portion of the
available amount you would be willing to risk). For more information on the
options here, view the MetaStock help.

Select the Broker tab
Here the commission tab allows setting the cost of commissions for a more realistic
result. Over the last few years, trading commissions have changed, and now many
brokers charge $0 for commission. However, if you do pay for commission in a
trade, this allows you to capture that cost as part of the System Test.
For the person new to MetaStock and System Testing it is recommended to leave
the Reporting and Trade Execution tabs as the defaults.

Close the System Test Options page by selecting the button. In the Power
Console, select the Button.
Once the System Test is complete, an option to view System Test results is
displayed.
Select the Button.

The results are now displayed.
The Test View opens. The graph at the top shows the average net profit.

The bottom grid gives quite a bit of information.
The columns tell us a few bits of important information.
Name Description
ID Represents the Test Number
Security The name of the tested instrument
Symbol The symbol of the instrument tested
Period What time frame was tested
Date Range This displays the time over which the test was run
Net Profit The amount of profit that is net minus commis-
sions
% Gain Displays the percentage gain or loss
Trades Number of trades taken over the tested period of
time
Trade Profit/Loss Number of Winning Trades/Losing Trades
Average Profit/ Tests average profit and loss
Loss

Any of these results can be selected to rank based on that criteria. Double click any
header to sort on that criteria. In the example below, the net profit has been
double-clicked to sort on that header. Now the Instrument with the best trading
success has been ranked on top.
Before going into more detail, there is much to learn in the Test View screen. One
main goal is to determine if the best-performing stocks meet your individual
trading risk and trading style. This test ran over 1250 periods, which equals about
five years in trading days. In reviewing the first security in the list ENPH.O, it traded
252 times. 137 times they were winners, and 115 times they were losing trades. So
it was fairly evenly spit on its Win/Loss Ratio. Would trading 252 times trading over
1250 periods match your trading style? Something to consider. So, at this point, it
wins about 55% of the time. (Remember, testing should be done often as market
conditions change, and it is important to know how your system performs in the
current market). At this point, we can dive in and get more information..
To get more detail, choose an instrument by double-clicking the instrument name.
The overview page gives specific details on the trades. The information provided
includes Highest Profit/Lowest Profit, Trade Timing, Out of market, and others. The

accounting section shows the change in the account, including Trade Profit/Trade
Loss and Commission paid. That allows for a good insight into trades over time.
The best way to quickly identify if a system has traded well over time is to review
the Equity tab. Select the Equity Tab. The top section shows the Equity Line (or
money over time).
When looking at an equity line, it is important to look for growth over time without
major drawdown (loss in funds). The Equity line above shows this type of growth
except for the period between 280-350. The growth has flattened the last 50 bars.
That is important as it is the most recent trading period. Note that the most recent
period is the most relevant as it is more relevant to the current market.
Looking for strong, steady equity lines is critical to finding a good system as it
shows consistent trades over time. This example is a good example as the most
recent trades have been the best trades.
Open the Chart and apply the corresponding expert to follow the trend.

CHAPTER 5 M O RE ON B AC K T E S T I N G
It is no secret that everything trades a little differently. It can be difficult to match

the personality of a system to the personality of the instrument that you are
trading. For example, Apple may trade very differently from Bank of America. The
EURO may trade differently than the YEN. It may make sense to use an oscillating
indicator on one and a trending indicator on another. Since each instrument is
unique, the system tester allows the user to test their strategy against another to
see if the personalities match. The drawback to backtesting is that it is historical. It
is a view of how it has performed historically. The increased confidence in a system
that performs well historically can provide an edge in your future trading. While
system testing is no guarantee of success, it helps us put the odds in our favor.
Performing a Multi-System Test

This example tests WalMart against the Performance Systems included in
MetaStock. You can apply this workflow to any instrument; this is just one example
of how multiple system testing works. This work flow takes 1 instrument against 80
strategies to see which of the systems best matches the personality of the
instrument.
Click to open the Power Console.
Select in the Power Console

In the Power Console, select the 80 System Tests that begin with PS (Performance
Systems) and the Instrument Dialog Box enter in WMT (or the instrument you want
to test). Hint: When selecting multiple systems, you can select the first system in a

Chapter 5: More on Backtesting
range, then hold down shift, go to the bottom of the range and select, and that
You can narrow selects the group.
down the tests
you wish to use by
searching the
search dialog.
Once the instrument and the systems are selected, the Trade options need to be
selected.
When running the test, you usually set the parameters to your personal trading
preferences. For this example, set the trades as Both. That tells the System Test to
trade both long and short. Set the Range to 500 records (or two years on a daily
bar). Then set Interval to Daily.

Select the button.
Select the Account Tab:
For this example, set the Initial Equity to 100000 and set the Percent of
Available Equity to 30%. That tells the system to trade 30% of whatever funds are
available in the account. This amount can vary depending on if the account drops
to 50000 or increases to 700000. Each trade uses 30% of the equity available at the
time of the trade signal.

Select the Broker Tab
For this example, use Points per Transaction. This setting denotes how much it
costs to enter a trade and how much to exit a trade (commission). Set this to the
amount that you pay to place your trades.
Select .
Begin the system test by selecting the button.

When the test is completed choose the button to review the results of
the test.
Reading the Report

Below is the System Tester - Test View screen for the test we just ran. It shows an
overview of all the systems used in the test.
The Columns represent the following:.
Name Description
ID Represents the Test Number
Security The name of the tested instrument

Name Description
Symbol The symbol of the instrument tested
Period What time frame was tested
Date Range This displays the time over which the test was run
Net Profit The amount of profit that is net minus commis-
sions
% Gain Displays the percentage gain or loss
Trades Number of trades taken over the tested period of
time
Trade Profit/Loss Number of Winning Trades/Losing Trades
Average Profit/ Tests average profit and loss
Loss
To sort on columns, double-click on the headers. For this example, double-click on
% Gain. The report then shows the top results based on % Gain.
By looking at this screen, we can already see systems that we would not likely trade
(those in the negative). That shows we have a few strategies that seem to match

the personality of Walmart. Double-click on a test result to review the specific

details of that test. For this example, select PS MACD Histogram 1.
The summary page gives an overview of how the trades have performed over time.
The critical test for this will to be to review the Equity line. The Equity line shows
how the instrument has performed. Select the Equity tab after reviewing the
Summary Tab.
Think of the Equity line as a trend line. This example shows a consistent movement
in the upward direction.

Using the Equity Line as a gauge of the trades, you can quickly identify those that
don't work. Consider an Equity Line that appears as below.
The movement is up overall but with a lot of movement up and down. That shows
whipsaw in the trading and inconsistent trades. That is not the type of movement
we want in our trades.
Looking at several inconsistent trading results shows the importance of looking for
a smooth, consistent Equity line.
Once you decide on a system, go back, open the chart, and apply the appropriate
Expert Advisor. The Expert can help guide you through the chart and signals
available.

CHAPTER 6 USING THE F O R E C AS T E R
As traders, we can see where the price has been and what the patterns look like on
a chart. However, the biggest question we always ask is, "Where is the price going
to go next?". That question is critical to a trader, and the MetaStock Forecaster can
help see a glimpse into that answer. What we can see with The Forecaster is the
probability of where prices tend to go after an "event" has happened. We define an
event as a point in time when a technical signal was confirmed. That could be
anything from a moving average crossover to a 52 week high. The question is,
where does the price go after these events happen? Does it rise? Drop?
The way the Forecaster looks at a chart is to analyze the event happening. Meaning
that when doing analysis, you aren't looking at buy and sell signals, you are only
looking at when a technical setup occurs. For example. Below is a chart that shows
only MACD buy signals.
The Forecaster analyzes each of the events and shows what happened to the price
after the events. It expresses that in the form of a probability cloud.

Chapter 6: Using the Forecaster
This example is showing what the BDX does after a MACD Cross up (or buy signal)
occurs. The price shows a short-term flat period before moving down. So if you are
trading the MACD on the BDX, it tends to have a slight increase before a pullback.
Information like this can help traders understand what happens to price after a
technical event. It is determined by doing multiple layers of statistical analysis to
help us determine the direction of price over time. More than that, it can help us
find where the price is likely to be and where we should be setting our price targets
and stops.
Opening a Forecast Analysis

Open a Forecast chart:
Click to open the Power Console
Choose the Forecaster Tab .

In the Power Console either select from the Instrument Tree or type in to the
Instrument(s) selection box. For this example, BDX will be used.

After selecting the instrument, start the Forecaster by clicking the

button.
The Forecaster application launches.

The Forecaster opens and defaults to a screen that shows relevant recognized
events. From this screen, we can choose recognized events, view statistical reports,
and view the forecast cloud.
Item Description
Choose between the Forecast Analysis and a list of available Event Recog-
nizers and their descriptions.
Choose to view a chart of price bars and all previous events.
Choose to view the current Forecast cloud for security
View of the current Forecast Cloud
List of all recognized events and ability to sort and rank.
View the statistical analysis of the event and the security.

Probability Clouds
To begin the workflow:
Choose the Forecast Cloud tab
The Forecaster then displays a cloud.
Note in the cloud that it says Past Performance in the box. The past performance
means that it is showing a probability cloud. What price has done historically,
based on the event, determines the cloud. This event is 52 Weekly High.

First the cloud will be reviewed.
Item Description
Percent movement. This shows a positive and negative scale.
Days after the event is recognized
Probability scale. This shows the percentage of probability and displays by

color. The scaling can change if the slider is used.
Forecast length. This changes the number of days focused. For example,
the current cloud shows 180 days. This can be refocused to 30 (or 90) by
changing the time frame.
The recognized events screen allows a user to choose from different events. Each
event is its own technical setup. The checkmark next to the event means that the
event is viable for review. If you see an exclamation mark, it means that there were
errors (usually meaning not enough events).

Choose a different event by selecting the name of the event, and the cloud focus
then changes based on the event selected. For example, choose the sorted by
criteria Most Accurate Current Forecast. The display changes in this example as
the top criteria is now 5 Days or More Up, and the cloud forecast has changed to
reflect this new selection.
Finally, the statistical report shows the report of the event. There are three tabs.
The Statistical Report shows an overview of the signals and their statistical
relevance. The second tab, Event Locations, shows when the event(s) occurred.
The Errors and Warnings tab provides details for any event(s) flagged with an
exclamation mark.

The cloud tells a story to help us understand how we should be managing our
money with the trade. The new cloud is one with more statistical relevance. To
understand why we look at the cloud. Let's examine this display in more detail.
The bright colors that display on the chart show that there is a higher probability of
prices moving in that direction. Using the probability scale on the right side of the
chart, it can be noted that the bright colors of red and yellow show the highest
probability.
This chart shows that after a 5 Days or More Up Signal, prices tend to stay with a
range up/down of 5% over the 1-14 days. After those 14 days, it then probably
makes a move upwards of 10%, with -2% on the low end. Since you are a trader,
how would you use this information? Trading is all about price and time. If you can
expect a return in your trade, wouldn’t you use that information to help manage
your trade? Of course! That is where the power of the Forecaster comes in. Now
that we understand that based on probabilities that BDX tends to rise 5% (on the
edge of high probability) and that it takes between 14-30 Bars (in this case, days) to
get there. (Remember you can choose the time frame you want to analyze from the
Power Console). Then we now have a trade expectation. We know that our target is
around 5% on the trade, and it takes that time range to get there. In following the
cloud, you can see that after 45 days, it loses its momentum and tends to pull back.
So as a long trade, we have our time and profit expectancy. This is a very powerful
aspect of trading!
Another way to use this as a trader is for options trading. If you are trading options,
this can be even more powerful as it shows us the time and value, but now we can
better gauge puts and calls. In this same example, it would be fairly evident that a
call 60 days out would be the best as it takes around 30 days for the max move of
the trade, and you don’t want an expiration before you’ve gotten your best move.

Comparing Prices to the Cloud

To compare how past events worked with the cloud, we can return to the Price,
Volume, and Event Markers tab.
This tab shows the chart with yellow markers.
It is important to note that they are not indications to get in and out of trades;
these are markers showing each time that the technical signal occurred.
If you select any of the event markers, the forecast cloud displays using any data
from the selected event marker back. This distinction is important as it is showing
how the cloud from that date back would have worked. It is a visual backtest of the
event and the probability cloud.

Here is an image of the last event.
It is interesting to note that, for the most part, the price stays contained within the
probability cloud. There are times that it tries to break out of the cloud. When the
price achieves a top of the probability or bottom of probability, then it tends to
reset. Think of it as a type of support and resistance.
At this point, please note a distinction. The probability cloud on the chart only
calculates on data from the selected event back. As new data comes in, the chart
on this tab is not updated. So it can be visually tested.
The cloud displayed in the Forecast Cloud tab includes all load data, both before
and after the event. That allows Forecaster to build a more relevant cloud.

These two events are from the same event but note that while the primary shape
and curves are the same, the coloring is becoming more statistically important
while new data comes in.
It is important to use both clouds together to help understand the direction of the
price and your current place in it.
There may be times when working with the Forecaster that the Probability cloud
has no clear direction, as the example below.
This does not mean that the Forecaster is not working. It simply means that the
price did not give a clear and meaningful probability. That means that it is best to
avoid the signal and avoid a trade that does not provide a clear direction based on
the probability cloud.
The Forecaster is a critical tool for traders to help understand the timing and
movement of their trades. Using this tool as a guide to entries, exits, stops, and
targets can help improve the odds of success in trading.

CHAPTER 7 F I LT ER I N G AND FORECASTING
This chapter discusses how to find opportunities in the market using the explorer
and then go directly to the Forecaster with the list. As discussed before, the ability
to find a trade and then move directly into managing it is an important part of
trading. With this example one can quickly identify a trade and then go directly to
the management of the trade. This procedure does not discount the need to
backtest but is another workflow that can be used depending on how you prefer to
manage the trade.
Scanning for Events

In the Explorer, we matched the 67 event recognizers with an exploration. That
allows us the ability to quickly pick an event, scan for it, and then Forecast.
Select in the Power Console.

This example uses the Forecaster - Moving Avg 50 Cross Up (The close has
crossed above a 50 period simple moving average on increasing volume) against
the S&P 500 Stocks.
Choose the Exploration: Forecaster - Moving Avg 50 Cross Up and the S&P 500
Stocks in the Power Console.

Chapter 7: Filtering and Forecasting
Use the defaults settings in the Explore tab and set the time frame to Daily to
match the Forecaster.
After completing these selections, choose .

This starts the Exploration.
The report appears.

The following information displays with the results of the scan. (Note that each
exploration shows different information as part of the results):
Column Description
Instrument Company name or Security Name
Name
Close Last closing price
50 - per Value of the 50 Day Moving Average
Volume Last report Volume price
Avg Vol Volume Average with a 20-period simple moving
average.
Ticker Symbol Symbol used in MetaStock
In this example, there are 11 results from the S&P 500 that are crossing the 50-day
moving average. Double-click on any result to have MetaStock open the chart.
Since there were multiple results, you could highlight all the results and then click
.

Charts open for all of the selected results.
From the chart, you can see that it has crossed the above the 50-period simple
moving average and that it has increasing volume. Note that this does not plot
automatically, and you would need to add these for visual purposes. We added the
circles for instructional purposes.
Opening Forecaster Analysis from Charts

To send the open chart to the Forecaster, right-click in the white space, and a
dialogue box appears. From there, select the Forecaster option.

This opens Forecaster and makes the selected instrument available to analyze.
However, when the Forecaster opens, it does not automatically default to the
recognizer used by the exploration. Choose the matching exploration in the
Recognized Event box.

Once selected, this gives the correct Forecast cloud to match the exploration.
From this Forecast Cloud, you can observe that after a cross above a 50 day Moving
Average on ADM, the price tends to rise over the next 30 days. It shows a maximum
increase of 10% in high probability range and 15% in the lower probability range.
Since this is a current signal (event), the cloud could be used from the starting
point and then monitored as part of a trade setup, if you took the trade.
You can do the same with the other open charts in MetaStock. By right-clicking
and then choosing Forecaster in the menu, you can open several charts.
These tabs allow you to move through multiple charts by clicking the different
tabs.

Optional Workflow:
As an optional workflow to open charts, a user can run the Exploration, then go
back to the Power Console, choose the Forecast tab, and select the Results of Last
Exploration tree to open all charts.
Note: The Forecaster allows you to open a maximum of ten instruments at a

time.

CHAPTER 8 F OR E C A S T I NG U S I NG C H AR T P AT T E R NS
Hidden inside every chart is a story - a story about where the price has been and
where it might go in the future. Some stories are obvious. Others are a little more
difficult to figure out.
Charts tell these stories with patterns. Chart patterns are pictures or formations
made by the price movements of the stocks or commodities you're examining.
Numerous studies have repeatedly shown that these patterns have excellent
predictive value. For this reason, the ability to draw patterns and forecast based on
them was the next logical step in the Forecaster.
There are two ways to work with patterns in the Forecaster. One is to hand draw
patterns; the second is to copy patterns directly from a chart. This workflow
demonstrates both methods.
Hand Drawn Patterns

To begin click to open the Power Console
Choose the Forecaster Tab .

Enter an instrument to begin. For this example, select Apple (Symbol: AAPL.O).

Chapter 8: Forecasting Using Chart Patterns
After selecting an instrument, click .
The Forecaster application then opens with the default settings.
Select the Recognizer Library Tab.

This tab displays a list of all built-in recognizers. When this is displayed click the
button.
That button opens the Price Pattern Editor.

Item Description
Enter a name for your pattern
Give a description of your pattern
Draw your pattern
Run a quick test against security data.
Methods for determining shape, length, and compatible price intervals.
For this example, a v Pattern will be used.
To draw a pattern, start in the Pattern Shape, Location and Orientation box. Start
in the corner and hold down your left mouse button while you draw a pattern. The
pattern appears as you draw it. After you finished the pattern, let go of the mouse.
You can modify the pattern by selecting any of the circles on the pattern and doing
a drag and drop to how you would like it to appear.

This example shows a hand-drawn pattern in the shape of a V. A few notes on the
Price Pattern Editor. 1) It is helpful to change the Approximate Price Bars to reflect
the length of time that your pattern could show. The default is 15 bars, but this
example uses 8 bars. Changing the pattern length up or down can change the
number of patterns displayed. 2) Changing Sensitivity can also change the number
of patterns displayed. The medium and high settings are the most selective. 3)
Using the Pattern quick test lets you scroll through the chart data and look for price
pattern matches. See below:
The Pattern Quick-Test shows you a percentage similarity that allows you to scroll
through the chart to display how the pattern matches your chart. You can choose
which Security to display. Now that the pattern is done, click the
button to save the pattern.

Your pattern now shows in the Event Recognizer Library. They display in
alphabetical order.
The Forecaster cannot display the pattern on the chart yet. Click the
button to look for the patterns.
Once you have selected the button, the pattern appears in the
drop-down list of available events if the pattern has enough recognized patterns.

Here the pattern is displayed in the list. Remember, you can sort the list in different
ways, so the event may be in different places based on rank. We sorted this list by
recognizer name.
In this example, the pattern shows 13 times on Apple.
The chart displays a pattern quick match and how well the event was recognized.
Put the cursor over any of the event markers. Forecaster then displays the pattern
with a graphical display of the pattern match.

Select the Forecast Cloud tab.
The Forecast Cloud is displayed. To review the differences between the Clouds in
the Forecast Cloud tab and the Prices tab, see “Comparing Prices to the Cloud” on
page 87.
This pattern shows a high tendency to move up after a V Shape event. The cloud
shows a tendency to move up within the first 14 days with a deviation after 30
days. Using this pattern would be most useful within the first 25 days before the
deviation begins. Remember that the Forecast Cloud on this tab continues to
update with new data while the pattern on the Price, Volume, and Event Markers
tab remains static, only using the data from the event back.
At this point, we should review the last event marker on the Price, Volume, and
Event Markers tab.
Choose this tab and then click the last event marker arrow. After highlighting the
last event marker, the pattern turns yellow, and the confidence test appears. The

result for this event is recent (within one bar), so the pattern displays at the end of
the chart.
We can see the high probability in the chart and can use this to help set our price
and time targets as described in the Forecaster chapter.
Copying Patterns from Charts

The second way to set up chart patterns is to copy them directly from the chart.
There are several ways to identify patterns with charts. 1) To find a pattern that you
see repeat within a chart and copy it or 2) To copy the last pattern that is occurring
on the chart. This workflow uses option #2. Finding a pattern that is in current
formation used along with a buy signal can be a powerful combination. For
example, a high probability cloud based on a formation can provide trade
confirmation and help give price targets and stop settings.
Coca Cola (Symbol: KO) is the example in this workflow. The image below shows
that the MACD has a current buy opportunity. If this opportunity were taken, it

would be a strong benefit to know if the current price pattern will give a strong
directional guide for target and stop settings.
To open the Forecaster from an open chart, right-click in the clean space and then
choose Forecaster.

When the Forecaster opens, select the User-Defined Pattern Select Box and then
drag around the pattern to be selected. The gray box on the chart emphasizes this.
IMPORTANT: The selected pattern must be at least 3 bars long and cannot exceed
250 bars.
The dialogue box then prompts to capture the selected area as a user-defined
pattern

Select the button. Now the Price Pattern Editor box appears, and you can
edit the variables.
The box shows the pattern in the Pattern, Shape, and Orientation box. Any of the
points can be modified by selecting the waypoints and dragging and dropping.
The Approximate price bars equals the pattern you selected on the chart. Before

saving the pattern change the ENTER NEW PATTERN NAME HERE with a name. This
example uses the name of the security with a brief description.
Note that on the Pattern Quick-Test that the Pattern matches 100% since it was
selected directly from the chart. Click the button and then the
button.

Forecaster now recognizes the pattern on the KO chart.
The higher you set In this example, it is recognized 30 times on the medium setting.
the pattern match
option in the Choose the Forecast Cloud tab to see the most current Forecast Cloud.
Pattern Editor, the
closer the price
movement must be
to match the
pattern.
This example shows that after this price pattern occurs that price tends to rise
about 10% over 45 days. So if you traded this, it would make sense to target a max
price at 10% above the current price and set a stop at the cloud bottom.

Switch back to the Price, Volume, and Event Markers to see the current forecast
cloud for the event. After choosing the tab, select the latest event.
Below is an example of a previous opportunity using the same pattern on KO.

Notice the strong following of price in the probability cloud.
Price Patterns are powerful, and using them in the Forecaster is especially
powerful. Understanding the direction of the prices after a pattern can give us as
traders a better understanding of the recurring movements of price after a price
pattern. Using this in trading is a targeted way to help you in your trades.

CHAPTER 9 U N DE R S TA N D I NG THE R MO
About the RMO

The Rahul Mohindar Oscillator (RMO) and its associated MetaStock tools were
developed by Mr. Rahul Mohindar of Viratech Software (viratechsoftware.com). In
addition to being a trader and a trainer, Mr. Mohindar is a panelist on both CNBC
and CNN India.
The RMO can be used across any timeframe and for any instrument. It is designed
to work with data that provides Open/High/Low/Close. To apply the RMO to a
chart:
If you have a chart Click to open the Power Console.
open, right-click on
the chart, select
apply template, and
choose RMO TRADE Select in the Power Console.
MODEL.MWT. Enter Symbol and Choose RMO Trade Model from the Apply template option in
the Attachment section of the chart dialogue. There are two templates that show
the same indicators in different ways. The shaded template uses a more modern-
looking approach, while the standard template uses the original settings. For this
example, the shaded template will be shown.

Chapter 9: Understanding the RMO
Click .
Your chart then opens with the RMO Trade Model template applied.
The RMO is a rule-based system that requires multiple criteria to allow for entry or
exit confirmation. The rules of the system are set up to allow the RMO user to
manage their trades quickly. The first set of rules applies to both position and real-
time traders. At the end, there is an additional step for real-time traders. Make sure,
no matter what type of trader you are, to follow the first set of rules.

Item Item Name Description

First window Rahul Mohindar Oscillator
Second win- Swing Trade 2 and Swing Trade 3

dow
Third window Exit Swing Indicator
Fourth win- Price bars with color and entry/exit signals

dow
Fifth window Volume with moving average

Rules of the RMO

Always follow the 1. The first thing to review with the RMO is the green RMO Oscillator, found in the
first set of rules for
the RMO, no matter top window. This indicator is our first gauge as to market direction. It is set up
what kind of trader to be our primary trend indicator. Notice on the RMO, the scale to the right of
you are. the indicator has a mid-point of zero. That is the main reference point of the
Note: The first new RMO. For a bullish trigger, we want the RMO to be above zero, and for bearish,
setup is typically
the strongest. we want the RMO to be below zero. Once we have determined our primary
trend, we can move to the next window.
2. The second window contains SwingTrd2, which is pink (Swing Trade 2), and
SwingTrd3, which is purple (Swing Trade 3). These two indicators are designed
to help us see the medium-term and long-term trends. SwingTrd2 represents
the medium-term trend, and SwingTrd3 represents the long-term trend. When
SwingTrd2 and SwingTrd3 cross, it represents a change in the strength of the
trend.
For the moment, let's move past the Exit Swing indicator and move to the
fourth window containing the price bars.
3. The color of the price bars and the buy and sell alerts are directly tied to the
SwingTrd2 and SwingTrd3 indicators. In rule 2, we discussed that when Swing-
Trd2 and SwingTrd3 cross, we have a change in strength. The red and blue
arrows shown in the 4th window represent that strength change. The color of
the bars changes from blue to red when SwingTrd2 moves above or below its
zero line. The blue bars represent bullish, and the red bars represent bearish.
To identify
trading Step Action
opportunities 1 To find a trade, the following must be in
alignment:
a. Bullish or Long Trade
i. RMO above zero
ii. Most recent alert arrow must be blue
iii. Price bars are blue
iv. It is important to note that these three criteria
do not need to happen on the same bar
b. Bearish or Short Trade
i. RMO below Zero
ii. Most recent alert arrow must be red
iii. Price bars are red
iv. It is important to note that these three criteria
do not need to happen on the same bar

Step Action
2 It is recommended that you make a trade when

the three rules align.
These rules are set up to allow the user to
actively monitor the trade. To exit a trade,
look for the opposite criteria. For example, if
you are in a long trade and the RMO is above
0, the last bar is blue, and the price bars are
blue, then look for the RMO to be below
zero, the last arrow is red, and price bars are
red to exit the trade.
If you are in a short 3 Follow the rules to set stops.
trade, place your Mr. Mohindar designed the system with the
stop a couple of ticks
above the previous trader in mind and, as such, designed the
bar high. system with rules for a trader to set stops.
a. Place your stop a couple of ticks below the
previous bar low.
b. If the current bar is lower, place your stop a
couple of ticks below the current bar.
c. If you are in a long position, move the stop up
with each new buy alert. (This may also be an
opportunity to add to your position.)
You can also ladder 4 Apply these rules to the indicator in order to use it
your position by as designed.
adding to a trade
with each new blue The exit swing indicator gives you extra pro-
arrow if going long. tection in applying stops.
This would be at the
same time you are a. Don't use this indicator unless you are in a
moving up your profitable position.
stop.
b. The exit swing indicator has two horizontal
lines. The top line is red, and the bottom is
blue. If you are in a long position and the exit
swing indicator falls below the red line,
consider putting in a trailing stop.
c. Likewise, if the exit swing indicator crosses
above the blue line, and you are in a short
position, consider putting in a trailing stop.

RMO Explorations
The following explorations match the rules of the RMO that we have just learned;
however, the terminology is a little different. Let's work through the rules and
understand what each exploration does.
Name Description
RMO Bearish Zone This exploration looks for instruments that have the RMO in
(Primary Trend) a current bearish state, meaning the RMO is below zero.
RMO Bullish Zone This exploration looks for instruments that have the RMO in
(Primary Trend) a current bullish state, meaning the RMO is above zero.
RMO Blue Bar Color This exploration looks for instruments that have a new blue
(Medium Term bar as the most current bar.
Trend)
RMO Red Bar Color This exploration looks for instruments that have a new red
(Medium Term bar as the most current bar.
Trend)
RMO Buy Arrow This exploration looks for instruments in which the most
(Short Term Trend) recent bar has a buy arrow.
RMO Sell Arrow This exploration looks for instruments in which the most
(Short Term Trend) recent bar has a sell arrow.
The Explorer allows These explorations can be used in any combination to identify trading
you to choose opportunities. You can use one of the explorations by itself or combine multiple
multiple criteria by
using the CRTL key explorations. The best way is to use combinations of the bullish explorations (RMO
and selecting the Bullish Zone (Primary Trend), RMO Buy Arrow (Short Term Trend), and RMO Blue
explorations you Bar Color (Medium Term Trend) or the Bearish explorations (RMO Bearish Zone
wish to use. Mix
and match as (Primary Trend), RMO Sell Arrow (Short Term Trend), and RMO Red Bar Color
many criteria as (Medium Term Trend)) to identify opportunities. This example uses a combination
you would like. of the three bullish explorations. To select more than one exploration, use the CTRL
button and select the three bullish explorations.
Explore for opportunities using the RMO

Now that you understand the rules of the RMO, you can use the functions built into
The Explorer in MetaStock. The Explorer has six explorations that match the rules of
the RMO.

Select in the Power Console.

Scroll down and select the three bullish RMO Explorations and the desired list to
scan.
Makes sure to select the "Use the results from the preceding exploration". This
option uses our single chosen list of instruments to filter through all three criteria.

C H A P T E R 10 N E W F E AT U R E S
New Features in MetaStock 19

In this chapter, we will discuss some of the new features in MetaStock. Some of
these features have already been reviewed, but here we may discuss them in more
detail. There are a wealth of new features in MetaStock, and not all of them are
included in this manual. This will be a highlight of top features.
Themes
One of the most requested features in MetaStock has been the ability to change
the theme of the container. You have always been able to change the theme of the
chart, but the container has been a top-requested feature. The first feature we will
cover in this section is changing the theme in MetaStock 19.
The theme will default to what Windows is defaulted to on a light or dark
background.
The theme can changed manually.
To change the theme, select the Theme option from the Main Menu.
The theme options are presented, and select the theme that best suits your needs.
MetaStock will There is a light theme or a dark theme.
restart to apply
any theme
changes

Chapter 10: New Features
Light Theme.
Dark Theme
Changes to Chart Views

With MetaStock 19 there has been added flexibility in how you can manage and
organize charts. The new default for organizing charts is Tabbed Mode. This allows
you to manage your charts much like you would internet browser windows.
Note that the mode you are in will depend on how you view charts. Here, we will
only focus on the Tabbed Mode and what is possible with it.
Here is an example of multiple charts open in Tabbed Mode.
You can change the active chart by selecting the tab of the chart that you want to
view.
You can also view the open charts by clicking the drop-down arrow on the tab
view to view and select open charts.

Tabs may also be organized by dragging them out of frame, pointing to a location
in the container, and docking them.
Once you point to the location, it will dock.
You can dock and point to the top/bottom/left/right side.

Charts can also be sized and docked in different ways. See the example below.
The benefit of the updated container in MetaStock 19 is that charts can be floated
as well, leaving them to be positioned wherever the user chooses. When a tab is
dragged out of the container, it is floating and can be taken to other screens.
This example shows MetaStock on the left side and a floating chart on the right.
We suggest watching the training videos showing how to float and use charts in
MetaStock on the MetaStock support YouTube page.
Layouts
MetaStock 19 has greatly enhanced the Layout feature in MetaStock. Layouts are a
way to have multiple groups of charts saved or chart setups to quickly access
groups of charts. These layouts will run as near-independent MetaStock Windows.

See the example of 3 different layouts across three screens below.
There are a few ways to create a layout, and the MetaStock Help will guide you
through the many ways. Here, we will discuss the newest way to create a new
layout. We will walk you through an example of creating an index futures layout.
Click on the + Symbol in MetaStock.
This will open a new “instance” of MetaStock that you can use to build your layout.

The first layout you open will be called Layout2. In this example, it shows Layout4.
Click on the in the Layout 4. For this example, we will use the symbols ESc1,
1YMc1, and VXc1. Enter these symbols into the Power Console and Choose Open
Chart.

In this example, we have arranged the charts. See the example above for how to
complete these steps. Now, let’s save this Layout. Click on the File Menu and then
Save As:

Give your Layout a name, and then click Save.
The layout name is changed to your file name.
Other Features
Below is a list of other new features in MetaStock 19 with some visualizations for
your reference. See the MetaStock Help and videos for how to access some of these
features.
General Restore WorkSpace

Features • Restore Workspace will allow the user to relaunch all
open layouts
• When combined with the "Save workspace on exit"
option, this allows the user to quickly close and save for
relaunch
Toolbar Changes
• Ability to use large/regular size icons in toolbars
• Ability to turn Toolbars Tooltips on or off.
• All new icons to help identify tools more easily.

• Toolbar changes will persist across all layouts.
Indicator Quicklist
• Indicator Quicklist now contains both incremental and
search
• Results will show both starts with and contains
• The full list of indicators is now alphabetical
Indicator Editor Dialog

• Display count of lines for improved readability
• Error display will show which line contains an error for
easier identification of errors

• New Syntax Highlighting in formula language code
Explorer:
• New up/down arrows in columns to show which column
is sorted/ranked
• New tool icons replacing text to save space and clearly
show tools in the reports dialog.
• Improved Search Box location for searching scans.
• Ability to sort in the Explorer and have Prev/Next Security
remember the sort order from the Explorer.
Expert Advisor Attach Dialog

• Added Search Box for filtering Explorations
• Intuitive icons added to Expert Attach Dialogue for
functions
Expert Commentary Window

• Window can be docked or floated.
• Docking is more responsive and resizable in dock mode.
• Easy-to-use guidance for location docking with drag-and-
drop navigation.
• Window can be put into Auto-Hide Mode (Fly Out)
• Can be open and available per layout.

• Can be used per layout
System Tester -
• System Tester Icon on the status bar will flash when
running the test (clickable)
• Updated reports dialog
Data Window
• Docking is more responsive and reliable in dock mode.
• Window can be docked or floated
• Window can be put into Auto-Hide Mode (Fly Out)
• Can be open and available per layout
• Background color will match the applied chart theme for
the background
• Can be used per layout
QuoteCenter
• Improved theming using the Container theme
• New Container for QuoteCenter
• New Accordion or Flyout control to access settings
• Improved Gainers/Losers Bar

OptionScope
• Improved theming using the Container theme
• New Container for OptionScope
• New Accordion or Flyout control to access settings
Power Console
• Improved visuals for readability
• New Arrows designating the expansion or contraction of
lists.
• Search functionality is brought to focus
• The cursor will now default to Open Instrument Box
• Will use the theme of the container
• Typing to Apply Template will navigate alphabetically.
Custom Tool Bar

• Easier to follow interface for adding to custom toolbar
• New and Improved Icons for the Custom Toolbar
• 6 New Icons for Toolbar use
View Open Window(s)

• New view open windows dialog box with a preview
• CTRL + TAB has a new Preview Dialog.
• Easy navigation to any open chart
Most Recently Used (MRU)

• File | Recent File - Shows recent charts and layouts

• Down Arrow next to the Open File button - Shows recent

charts and layouts
• The down arrow on Tabbed Charts shows all open tabbed
charts
• The down arrow in the main container shows open and
recent layouts
Custom List Editor

• Improved to allow easier pasting into the Custom List
Dialogue
• Easy-to-read icons for easier navigation
Public List Editor

• Easy-to-read icons for easier navigation
Chart Themes
• 2 New Chart themes to match application themes.
Charting Volume by Price

• Change Colors for Positive Volume/Negative Volume
• Change the number of price Zones
• Change Periods mode to All Data or User-Defined
Lookback
Range Bars
• View as bar or candle
• Change up/down modes

• Calculate on ATR or Points
Cursor
• Global Synchronized Crosshairs across all open charts
- Across Multiple Time Frames
- Across all open charts
- Across all open layouts
- Ability to toggle on/off
Watermark
• Watermark feature for seeing Name and Symbol
embedded in chart. (User Selected)
- Will adapt to the background color so it can always be seen
Other Chart Features

• Learn as you plot. Move the chart back and forth one plot
at a time with CTRL+Arrow
- Move backward or forwards
• Greater precision on the ODDS probability cone.
• Transparency will remain set when toggling between
colors
• Mirror Y-Axis for improved Axis Visibility (Plot on Both Left
and Right Axis)
• Ability to change font and font size on the X and Y axis
Text Editor
• Improved Text Editor Dialog box for easier reviewing/
editing of chart text
New Drawing Tools

• Measure Tool for Percent Change
- Measure between two data points for percent change
between data points.

- Ability to customize Color/Style/Fonts

- Ability to add the number of periods to display
• Measure Tool for Points Change
- Measure between two data points for points change between
data points
- Ability to customize Color/Style/Fonts
- Ability to add the number of periods to display
• XABCD (Gartley Drawing Tool)
- Change Font, Color, and Fill Color
- Head and Shoulders Drawing Tool
- Change Font, Color, and Fill Color
• Elliott Wave Tools
- 12345
- Change the label to Parentheses, Circle, or Label Only
- Change Font and Color
- ABCDE
- ABC
- 123
- WXYXZ

NEW SYSTEMS Improved RMO

• 5 New RMO Templates
- RMO Binary Bear Pulse
- RMO Binary Bull Pulse
- RMO Binary Bull & Bear Pulse
- RMO Binary Pro Mode
- RMO Trade Model Shaded
• Improved Naming of Explorations (Now all Grouped)
• Improved Exploration Column Names for easier
understanding.
• Added Exploration Tool Tips for RMO Explorations
Gap Identification System

• Gap Expert and Commentary for Highlighting Gaps on
Chart
• Gap Exploration
- Identification of Gaps and Gaps on High Volume
Jake Bernstein Expansion/Contraction (JBXC)

• New Template for Identification of Expansion and

Contraction
Ichimoku Master Add-on

• Expert Advisor and Commentary for Analysis of Ichimoku
Indicator
• Ability to Scan based on the Ichimoku Indicator
• Ability to BackTest based on the Ichimoku Indicator
ETS 2.1 Add-on

• Complete Trading System
- Generates Buys, Sells, Protective Stops, Trailing Stops, and
Profit Targets
• Contains Proprietary ETS Trendwatch Indicator

• Inputs to enable long or short-only signals.

C H A P T E R 11 W O RK I N G WIT H L O C A L D ATA
Creating a new List

MetaStock XV added the advantage of allowing a user to be able to read several
different local data formats. It can read MetaStock Legacy File Format, CSV, or our
new and improved local data format called MSLocal. Local data gives a user the
flexibility to work with MetaStock Offline or use data that resides on your computer
to chart, scan, test, or forecast. So all of the workflows covered in chapters that
cover these tools can be done using local data.
This chapter covers how to add local data files to your MetaStock so you can use
them in your workflows. It does not cover how to create or manage your local data
files. Refer to the MetaStock help or other resources on how to create and maintain
your local data files.
To add existing local data files to MetaStock:
Select to open the Chart tab.

To add local data files right click on the word Instruments in the Instrument Tree.
The option to manage Public Lists or Custom List is displayed.
Select the option to Manage Custom Lists.

Chapter 11: Working with Local Data
The custom list manager is displayed.
In the custom list manager select the button and select Local
Instruments.

This takes you to the New Custom List dialogue box.

Adding Instruments to the List

It is effortless to add a full folder of securities to your list. Start by selecting the
button.
The Local Instruments box is displayed.

From here we need to know what folder is to be added into the local data library. In
the Local Instruments box, select .
At this point, you need to navigate to the folder that holds your data. As that may
be different for each user, we use a generic example. Navigate to the folder that
contains your data.

This example selects the “My Data” folder. Select the folder you want to load and
then choose the button.
All the compatible data files in that folder are selected.

Here is what each column means.
Item Description
The interval of the data. You may see D for Daily, W -
Weekly, M - Monthly, Q - Quarterly, or Y - Yearly. (other
intervals are available for R/T)
The ticker symbol of the instrument
Name of the instrument
Type of file format. MSLocal is the new file format, CSV or

Legacy (Original MetaStock File Format)

Note that all the files are now selected automatically (denoted by a gray or orange
color). To add to the list, select the button.

Saving the New List

The files are loaded into the custom list. MetaStock automatically uses the folder
name for the list name. There is no need to create a new folder name.

Select .
The folder now shows in the Custom List Manager.

Repeat this process for all folders that you want to load into MetaStock. If you have
finished loading lists, choose .
The list of instruments is now available in the Power Console.
Now that the Power Console includes the list, you can use it for any workflow. You
can Open Charts, Explore, Test, and Forecast from this list.

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Unleash the Power of

Printed in the USA

Innovative Market Analysis, LLC dba MetaStock

Unleash the Power of MetaStock 19 iii

Chapter 8 - Forecasting Using Chart Patterns .............................98

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CFTC Rule 4.41

Characteristics & Risks of Standardized Options

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The list of instruments (securities) is the full universe of what is available,

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Display/Load Display maximum displays all loaded data.

Exchange Date Specific times set by set by the user.

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After setting your selections, choose .

Chart Styles and Options

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The Expert Advisor™

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Going to Tools > Expert Advisor

Or Right-clicking on chart and choosing Expert Advisor, then Attach....

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Select . The expert then plots on the chart. Below is an example of

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You can use the Explorer to generate:

Access the Explorer by choosing from the Power Console or by choosing

Notice that MetaStock comes with hundreds of explorations. To avoid looking

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exploration Favorites. Right-click on CandleStick Bearish Patterns. Select Add to

You can remove explorations from favorites by right-clicking on them and

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Records to load Sets a user-defined number of records to scan.

Interval The time frame for the Exploration

If activated, MetaStock restricts the results on an

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The System Tester™

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or by choosing Tools > System Tester.

The system test

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The next step is to set the testing options.