There are a lot of gadgets and gizmos, tools and software, and tips and tricks out there in the marketplace designed to help you trade stocks successfully.  Today we want to focus 10 Tips and Tricks and our single favorite tool that will help you become a more successful trader.  These tips and tricks can be used with any style of trading and can even be used in other industries and businesses!  

In the following post, we’ll show you how to:

  • How to access our favorite tool “ChartYourTrade MRI” on desktop and mobile
  • How to use the various scanners within the ChartYourTrade MRI scanner
  • How to pull up charts
  • How to export lists and reports to Excel
  • How to effectively use Industry Group reports
  • How to create heat maps in Excel
  • How to track and analyze the number of New Highs vs New Lows being made on the NASDAQ and NYSE
  • How to create simple area charts in Excel
  • How ChartYourTrade MRI’s scan results can help you gauge the market’s health
  • How to create simple bar charts with moving averages in Excel

 

Accessing ChartYourTrade MRI

STEP 1: Make sure you are logged into ChartYourTrade

STEP 2: Opening up ChartYourTrade MRI on Desktop… 2 ways to do it

OR

** Opening ChartYourTrade MRI on MOBILE **

 

How to use the various scanners within the ChartYourTrade MRI scanner

Once you open up ChartYourTrade MRI, you’ll be brought straight to the scanner. Here is where you can run all 8 of our custom designed scans AND run the “Ideal Growth Stock Screen” over the results.   See screen shots below…

For more on each of these 8 scans and what they’re comprised of, checkout our post How to Scan for the Best Growth Stocks.  At the time of this writing, there are 61 stocks passing “All Scanners” with the Ideal Growth Stock Screen set to 50%. You can track the expansion and contraction of this list week to week and gauge the underlying health of the market. As the list expands, the market internals “under the hood” are getting stronger. As the list contracts, the internals are starting to get weaker.

You can roll your mouse over any of the ticker symbols and pull up the weekly chart.

You may also export this list to Excel (or a CSV document) and upload the list to your favorite charting service. I prefer Trading View.

So that’s the basics of using the stock scanning tool in ChartYourTrade MRI. Pretty simple, right? Select which scans you want, select the percentage by which they should pass the “Ideal Growth Stock Screen”, click “Submit” and boom, your scanning is done! Done manually, this process used to take me a few hours each weekend using expensive software.  Now it’s done with one click!

 

How to use the built-in Industry Group reports

One of the things that lead to my trading success was being able to identify broader themes in the market. Stocks often travel in packs. They say “birds of a feather flock together”…well, the same is true of stocks! When multiple stocks from the same industry group begin passing our scans simultaneously, it’s a sign that something is happening within that industry group and it warrants us to take a closer look at the stocks within that group. Often we’ll see several stocks within that group setting up in similar basing patterns. When this happens, it could be signaling a group move. If that’s the case, hang on to your hats!

First things first, here is how you access the industry group reports…

STEP 1: Open up ChartYourTrade MRI

STEP 2: Click Reports

STEP 3: Select the date you’d like to compare to the current week (the most up to date data is made available on Sundays so presently, you can only select Sunday dates to compare)

You can sort the columns by clicking on the column header. You can also export this report to Excel or to a CSV document.

 

How to create heat maps in Excel

**Here’s a trick I learned a while ago to quickly size up industry group moves**

Every week I export this list to Excel and keep a running tally of the lists from week to week to week and create an Industry Group Heat Map. This takes all of about 2 minutes to do each week which includes both general formatting and conditional formatting. I use conditional formatting over the lists to show dark green for the higher numbers and fade down to red for 0. This produces a heat map and at a glance I can see industry group rotation! Check out the screen shot below…

Here we can see that Regional Banks made a big splash in early April seemingly out of nowhere! That was our first clue that we should begin investigating this group. The following week, 2 more stocks were added from this industry group and suddenly, it was tied for the being the industry group with the most stocks passing our scans. 

Here’s a list of the stocks in the Regional Banks Industry Group that passed that week: BANC, CIB, FCB, GWB, HQY, and SFBS. Go check out their charts! Almost all of them were setting up in highly constructive, actionable base patterns! This happens again, and again, and again!

Here is how to do Conditional Formatting in Excel

I’m on a Mac but the steps are VERY similar on PC. The only thing that is slightly different are where buttons are placed.

STEP 1: Highlight all of the data you want to be formatted and then click “Conditional Formatting”

STEP 2: Click “color scales” and then click the option with green on the top and red on the bottom.  This will make the bigger numbers green and the smaller numbers yellow and zero will be red.

STEP 3…there is no step 3! You’re done! Yes, it was THAT simple!

 

How to track and analyze the number of New Highs vs New Lows being made on the NASDAQ and NYSE

Studies have shown that 3 out of every 4 stocks will follow the broader trend of the market (i.e. the major indexes). It is therefore imperative that we have a robust way of determining market health.

A key factor that I have found in determining market health is analyzing the number of New Highs vs New Lows being made on both the NASDAQ and on the NYSE. The reason I have selected these 2 indexes is because the vast majority of the high quality growth stocks I’m interested in is trading on one of them.

The reason why analyzing the number of new highs vs new lows is so important is pretty straight forward… We know that most stocks will follow the overall trend of the market. The major indexes are simply a composite of the stocks within them. THEREFORE, in order for the indexes to continuously make new highs, there must be an abundance of stocks within them making new highs as well. Additionally, with the indexes marching higher, we would expect to see very few, if any, stocks making new lows. 

By monitoring the New Highs vs New Lows list every day or even every week, we can see how robust the market’s trend truly is and if it is about to change! I’ve personally captured numerous trend changes through this sort of analysis.

Here is how to access the New Highs vs New Lows Reports

STEP 1: Open up ChartYourTrade MRI

STEP 2: Click NHNL in the upper left

STEP 3…there is no step 3! Your New Highs vs New Lows are right there and are archived going back to when we launched ChartYourTrade MRI back in March of 2015.

 

How to create charts of the New Highs vs New Lows in Excel

This is another task that is super easy that you can do in just a couple of minutes. The results will be a long term chart that allows you to easily see a potential change in the trend of the market BEFORE it happens.

STEP 1: Copy/Paste the New Highs vs New Lows Report into Excel

STEP 2: Multiply each “new lows” column by -1 and then paste the results over them. This will be important in creating your chart. I find it far easier to read the new high and new low values if they’re separated with the new lows being negative. 

STEP 3: Creating a chart for the NYSE. Highlight the data in columns A, B, and C. Click charts, then Area, then the 2D chart that says Area. Doing this will quickly produce the chart below. The new highs are in blue and the new lows are in red. As market health improves, you will see a dry up in new lows and an expansion in new highs. Conversely, as market health deteriorates, you’ll see a dry up in new highs and an expansion in new lows.

STEP 4: Creating a 2nd chart for the NASDAQ: follow the steps in step 3. After that, click into the new chart. You’ll see the data the chart is pulling highlighted. Click, hold, and drag the box that is around columns B and C for the NYSE, over to columns D and E for the NASDAQ. This is the easiest way to make the chart for the NASDAQ. 

In general, the charts for both indexes will look very similar. However, on occasion they will diverge. When they diverge, I’ve typically seen choppiness, volatility spikes, and sideways price action in the markets. Again, the New Highs vs New Lows reports tends to be a leading indicator and does a fantastic job at helping us gauge the overall health of the market.

 

 

How ChartYourTrade MRI’s scan results can help you gauge the market’s health

As mentioned earlier, the results of the ChartYourTrade MRI Scanner naturally ebb and flow with the market.  As more and more stocks pass our scans, the overall strength of the market is improving.  Conversely, as fewer and fewer stocks are able to pass our scans, its a sign that market conditions are deteriorating. As such, the ChartYourTrade MRI Scan results can be used as a both a leading indicator, as well as a lie detector!

Part of the reason why the results expand and contract each week is that some of the scans are momentum based scans such as stocks making new 52 week highs and the Relative Strength scan. These scans are highly sensitive to the prevailing market conditions. Since the ChartYourTrade MRI Scanner is designed to hunt for the best of the best growth stocks, seeing the results expand and contract each week tells us how the market is currently treating growth stocks.

Below are screen shots of the results of ChartYourTrade MRI when run with All Scans and with the Ideal Growth Stock Screen set to 50% vs the S&P 500 over the same time period. The black line on the “CYT MRI: Expansion/Contraction” chart is the 8 week moving average. I’ve chosen the 8 week so it is reflective of the past 2 months of data. 

Let’s take a look at the screen shots below…

During the first week of January, we see our first major drop in the CYT MRI results. 4 weeks later, the CYT MRI results bottomed at 23 and then surged to 31 the following week…a week BEFORE the S&P 500 started to rally off the lows. 

On April 8th the scanner results peaked at 66, the most for 2016 as of this writing. This occurred just BEFORE the S&P 500 attempted to breakout the week of April 18. From there we see a steady decline in the number of stocks passing the CYT MRI and the market proceeded to chop around, violently at times. 

After the BREXIT shakeout the week of June 20, the S&P 500 began a massive rally. The CYT MRI results spiked on July 8th giving further confirmation that the rally was for real!

You can use ChartYourTrade MRI as a gauge for market health and build the chart above quite easily.

 

How to create simple bar charts with moving averages in Excel

STEP 1: Open up Excel and record the results of the number of stocks passing the CYT MRI scans each week (you can find out prior weeks scans by totaling the Industry Groups Report) 

STEP 2: Highlight your data and select charts, column, and 2-D column “clustered column”

STEP 3: Click in the chart and “right click” on any of the columns.  That should bring up the window shown below. Click on “add trendline..”

STEP 4: Click “moving average” and change the period to 8

And that’s all you have to do to create this extremely useful chart. Once you have the chart created, you can add to it each week and you’ll have this done in under a minute. Not bad for something that can help us gauge market health like this, right?

If you haven’t tested out ChartYourTrade MRI yet,  try it out now for free for 30 days!  Sign up here.