myStockPoint® Equity Analysis Program
Nowadays, many equity analysts and stock investors who are interested in equity research are also interested in following stock trends by using charting tools and applying technical analysis. Technical analysis generally includes using tools such as Moving Averages, Candlesticks with transaction volume, Bollinger Bands, MACD, etc. which are all available at many well-known finance and investing internet websites or companies which supply stock data and analysis.
However, mastering technical analysis using the above tools for each stock requires a considerable amount of time and effort, as well as a high level of education in finance. Even for the very experienced equity technical analysts and stock investors, it is not easy to predict stock prices and trends accurately, not to mention the average stock investors who will find understanding how to use the charting tools difficult.
To solve the problem, I have developed my own equity technical analysis software called myStockPoint®, a computer program that can analyze each stock by using daily market close prices with the most common technical analysis tools. The resulting technical analysis for each stock is then translated into a score using a 100-point scoring system.
myStockPoint® has three strengths that are superior to other available technical analysis software on the market:
- Since each technical analytic tool has its strengths and weaknesses, a specific tool that gives an accurate trend prediction under certain situations can be totally wrong under other conditions, thus mastering just one or two methods is not enough to generate reasonable results. In myStockPoint®, I have combined various methods in technical analysis to evaluate each stock. This way, I can consolidate the strengths of various technical analysis tools but avoid the weaknessess of each method, enhancing the overall accuracy of the resulting analysis.
- Just as children who understand in school what it means by a score of 100 or 50, myStockPoint® technical analysis software is also based on a 100-point scoring system, with scores above 80 indicating high momentum stocks, 60 or above indicating stocks that should be observed longer and scores below 60 warning of weaker stocks. Scores that are too low are excluded in the final report. By using this scoring system, any investor can understand whether the stock being analyzed has a strong or weak momentum and make investment decisions accordingly.
- Since computer programs can process data with extremely high speed, processing data for over thousands of stocks will only take five minutes. Other than specific breaking news that will cause large stock price movements during the day, strong momentum stocks following a normal trend should show up in myStockPoint® software with high scores, thereby helping investors to quickly search for high potential stocks with strong momentum for the day.
Stock Point Indroduetion
-William Kwan, August 2007