StockCaster can be an invaluable tool in helping you locate securities within the initial, intermediate, and extensional phases of movement through the Elliot wave. It is recommended that you review the Scan Logic section to discover what these scans mean and how they can be applied to your analysis. You will also note that each scan is run for the hourly, daily, weekly, and monthly time periods. This feature is not only intended to support the various forms of analysis regularly used by day-traders, swing-traders, and long-term investors, but can be also of value in helping to determine support and resistance points.
StockCaster's Synchronic Charting feature has been specifically designed to illustrate the relative position of a stock across multiple time periods and allows you to assess support and resistance points, as it moves through the waves. In other words, a stock that appears on the Daily-Initial scan, may be interpreted to be within the earliest phase of a trend reversal, but that same stock also has a relative position on the longer term time periods and could move into the Intermediate and Extensional phases as well. It may on the other hand simply appear to be in an initial stage of movement on the Daily Chart, but analysis of the Intermediate or Extensional charts may indicate positioning within the correctional phase. Familiarity with the support and resistance points for these longer time periods and the assessment of the security's relative position across multiple time periods could prove invaluable, as you endeavor to gauge upside and downside potential.
StockCaster also provides a mechanism where each user can add the stocks listed on the scans to their watchlist, and then computes a "personal index" for each scan category (i.e, Initial, Intermediate, Extensional, and Short). You may choose to include stocks from the hourly, daily, weekly, or monthly initial scans (or from any of the other categories) within these indexes, so that you can track the progress of each security. Depending upon a host of influences (TradeTrend, EPS, Shares Issued, PE, Short%, Dividend, and other variables), some stocks will stop their upward movement at the first resistance point (or Exponential Moving Average). Others may bolt above the Initial resistance point and into the Intermediate wave on the Daily chart. And a few (again dependent upon the aggregate influence of a variety of variables) will move into the Extensional level on the Daily chart and perhaps even demonstrate an Initial movement as seen relative to the weekly and monthly time periods.
If a stock within your index shows up on the Short scan however, you can conclude that it has signaled a potential "retracement" or "correction" signal, requiring your re-evaluation of its continued upside prospects. This happens regularly in the stock market and should serve as a reminder that market dynamics play a big part in determining risk/reward. If, for example, the TradeTrend indicator reverses from a high positive value (say 20) to near zero, with a corresponding decrease in the Bid and Ask of a particular stock, it may indicate that either (1) a retracement is occurring or (2) that a full correction just began. StockCaster provides four Short scans to support your analysis of such occurrences.
Finally, StockCaster has been specifically designed to provide a host of technical, fundamental, and historical information to help you conduct comprehensive analysis, but like all things, perfection requires practice. StockCaster strongly encourages that all traders and investors [practice] using the tools they employ and that they continually re-evaluate the strengths and weaknesses of their strategies. Above all, StockCaster strongly encourages that you contact a licensed professional broker for assistance, when required.
