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Integrated Investor is a powerful analytical tool with many great features which can benefit all trading and investing clients, regardless of the main focuses of their training. Gann traders, options traders and even more traditional fundamental or technical analysis traders are increasingly realising the benefits of the software. One component which consistently receives praise (especially from instructors) can be described as ‘the dashboards’. Just like your car, the dashboards give important information in a very intuitive format. A quick glance at the Integrated Investor start page and you have a really good idea of where a stock ‘is’ and, as this article will show, where the stock is likely to go. It just then becomes a case of putting in place the right trading plan! Below you can see an image of the dashboard for Accenture on the New York Stock Exchange (ACN:NYSE):
Although they are fairly self explanatory, the various combinations can really define the exact “here and now” of a stock. The Oscillator dashboard consists of a proprietary combination of indicators such as the Relative Strength Index (RSI) and Commodity Channel Indicator, the Trend dashboard uses a mix of momentum studies (such as the DMI) and the Volume dashboard considers the flux in volume over defined periods. When used in combination you have an instant ‘status’ check for any stock you select and can start to target your trading plan. If, for example:
Oscillator Neutral + Trend Bullish + Volume High
Then you have a trending market with reasonable volume. The bulls are in control and an ideal trading approach will be: Elliott Wave 4 buy or ABC Long (for Safety in the Market Students).
Alternatively if, for example:
Oscillator Oversold + Trend Neutral + Volume High
Then a trend has come to an end and you are looking for a reversal. The oversold oscillator is implying a bounce is on its way so: Elliott Wave 5 buy or Over Balance in price ABC trade/ Time by degrees confirmation (for advanced SITM students).
Of course you can go further and integrate some fundamental information. This idea might horrify the pure technical analysts out there, but the fact remains – Warren Buffett is the 2nd richest man in the world and he only uses fundamentals! The problem normally cited by those wishing to avoid the fundamental ‘hard work’ is that it’s too time consuming, that’s why you turn to the dashboard. The fundamental dashboards are a conglomeration of the ‘experts’ in ValueGain and are derived from the investment criteria of some of the world’s best known investors.
High value stocks are likely to rise (especially if they are good income stocks) with institutional investors recognising their potential for price and dividend streams. Low value ones are likely to fall (especially if they are poor income stocks) as institutions take profits or move into stocks with better valuations and potential. Both these scenarios make them ideal candidates for trend reversal techniques such as the Elliott Wave 5 / ABC overbalance trades mentioned earlier. Growth stocks are likely to be trending upwards as earnings and profitability improve and work well with the trend following techniques described above.
In Integrated Investor you can scroll through the various trade setups and make a note of the dashboard information to help you pick the better trades. This is great as a standalone filter, but you can get much more information by monitoring the changes in the dashboard. Watch for volume to start increasing as the oscillator indicator moves away from the extremes towards neutral on an undervalued stock and you’ve got a great buying opportunity, for example. A company with improving growth characteristics which has an increasing trend dashboard is going to be one to watch for a long trade. It is that easy!
Stay Sharp,
John Jeffery
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