Now you can collect your stocks into any number of individual groups for broad market analysis.
With FIRE, there is finally a tool that lets you calculate and plot breadth indicators on sectors, industry groups, or other more focused groupings — rather than the market as a whole. This tool allows you to have the power to easily create your own personalized sectors, industries, ETF stock indexes, or any other combination of stocks you can dream of. Just a few mouse clicks and your stocks are combined just the way you want them.
At that point, it's a breeze to calculate an incredible array of essential Breadth Indicators on those stocks, such as:
- Advancing Issues
- Declining Issues
- New Highs
- New Lows
- McClellan Oscillator
- Stocks above a moving average
- Or any of your creations
You can then use these calculations to construct the following kinds of indicators on any industry, sector, or customized grouping...
- Advance/Decline Line
- Advance/Decline Ratio
- Advancing minus Declining Issues
- Arms Index (TRIN)
- Breadth Thrust
- Cumulative Volume Index
- McClellan Oscillator
- McClellan Summation
- New Highs minus New Lows Cumulative
- New Highs/New Lows Ratio
- New Highs minus New Lows
- Open-10 TRIN
- Overbought/Oversold
- Upside/Downside Ratio
- Upside/Downside Volume
External Relative Strength Analysis
A well known newspaper popularized the notion of Relative Strength, a powerful concept that measures how a stock’s price has performed versus all other stocks in the selected grouping over a user-specified time period. In wider trading circles, this is known as ERSA — External Relative Strength Analysis. With FIRE you are able to fully customize your ERSA analysis by choosing which stocks you want to use in your grouping to calculate against. Then it allows you to choose any time period for your analysis. For example, you may want to calculate a certain stock’s ERSA versus the stocks in its industry for the last 50 days ... in its sector for the last 200 days ... or versus other stocks in an ETF over the last year.
With FIRE as part of your trading analysis toolbox, you'll have a limitless number of ways you can calculate ERSA on any stock you're looking at.
Plus, you can then plot your ERSA results in a MetaStock chart for visual analysis and interpretation.
In no time you'll be able to identify the leaders and get rid of those laggards — thanks to the power of FIRE's ERSA analysis!
Create Your Own Customized Stock Market Indexes at the Push of a Button
You'll be able to create your own custom stock market indexes in just a few brief minutes with the push of a button. With FIRE's Custom Indices tool, you'll get quick calculations on the average open, high, low, and close of all securities in any MetaStock data folder you identify.
The result of this calculation is a new MetaStock data file which contains a price-weighted index created just for you. The calculation is a simple summation of all values for each day, and then division by the number of securities for each day. Volume and Open Interest are summed up, not averaged. The Dow Jones Indices are price-weighted, although most others are capitalization-weighted. Higher-priced issues in a price-weighted index have a bigger influence on the index than lower-priced issues.
You can use a custom index in a variety of useful ways for your trading...
- Just the stocks in your state or region,
- Stocks with historically low PE ratios, or one for stocks with high volatility,
- Your 401K stock holdings,
- You want to 'override' the makeup of traditional industry and sectors.
With FIRE, you can pick the stocks that you believe best define a specific industry or sector. The possibilities truly are limitless!
