WinTick is a subscription-based pattern evaluation software program.
WinTick is a component of a bigger bundle referred to as the AbleTrend system, which may price 1000’s of {dollars} yearly.
That’s why they provide a 30-day lower-cost trial earlier than individuals commit (not a free trial).
Nevertheless, many retail merchants won’t want the massive bundle.
WinTick could also be all they want at lower than $100 per 30 days (utilizing 15-minute delayed and Finish-of-Day knowledge).
WinTick is their smaller, simplified web-based model of their AbleTrend system.
There may be nothing to obtain or set up. You don’t want any current charting bundle.
Subscription members can simply log in to wintick.com and see charts with the WinTick indicators drawn.
There’s a U.S. Fairness-only model.
Or there’s a Professional model, which incorporates Futures, Foreign exchange, and different markets.
Contents
When you get to the chart web page, it seems like this:
By default, it brings up the Dow Jones Index, the “$INDU” image in its system.
The greenback sign up entrance of the image signifies that it’s an index.
I can deliver up the Russell 2000 Index by typing “$RUT” into WinTick:
Don’t fear if you cannot see the annotations that I’ve drawn on this chart.
I didn’t know it might come out so small.
I’ll draw bigger variations later within the article.
By default, it exhibits the each day chart as a result of the inexperienced “D” above the chart is enabled.
You may shortly swap to a weekly chart to carry out multi-timeframe evaluation by clicking on the “W.”
Some merchants, for instance, would possibly wish to have each their buying and selling timeframe and their longer timeframe be in the identical path earlier than committing to that path.
John Wang, the co-creator of the AbleTrend system, prefers the each day chart or increased.
He says that the AbleTrend system offers higher alerts as a result of longer timeframes have much less noise relative to the strikes than shorter timeframes.
He additionally says that the better the quantity of trades, the extra correct the sign.
However, WinTick does help 15, 30, 60, 120-min intraday charts.
Intraday merchants who want 1-minute, 3-minute, and 5-minute charts might want to get their full AbleTrend system as a substitute of WinTick.
WinTick will solely show the candle on the finish of the candle timeframe.
You’ll not see the candle altering dynamically in a reside market.
So, a 15-minute candle won’t seem till that 15-minute candle is full.
As soon as a candle is drawn, it by no means modifications.
That’s the reason if you’re on a each day chart, you’ll not see any candles for the present day till after the day’s buying and selling session is over and the system has all the information to color the day candle.
If you could see what is going on intraday, you could swap to the 15-minute chart the place a brand new candle will seem each quarter-hour – conserving in thoughts that by default, WinTick is working on 15-minute delayed knowledge.
The pattern evaluation system doesn’t predict what the market will do.
It can’t see the long run.
It makes an attempt to learn the market on the present second to find out whether it is bullish or bearish and the way sturdy.
The software program will present a blue candle if worth motion suggests an uptrend.
A crimson candle for a downtrend.
And a inexperienced candle for a impartial pattern.
This color-coding of the candles is named the T1 indicator.
T1 refers to AbleTrend model 1 when this characteristic first appeared.
The S&P 500 index (image $SPX within the WinTick system) exhibits an uptrend with 28 blue candles in a row.
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This doesn’t imply that SPX had 28 up-days in a row.
Don’t confuse WinTick’s pattern colour together with your typical candlestick colours.
Your typical candlestick could colour the candle inexperienced for an up-day and crimson for a down-day.
An up-day is when the closing worth is increased than the opening worth.
A down day is when the closing worth is decrease than the opening worth.
The market can have down-days in an uptrend.
The blue colour of the WinTick candle signifies that the market is in an uptrend.
Inside that uptrend, there will be down-days and up-days.
A strong candle signifies down days.
And up-days are indicated by a hole candle.
I like to recollect it as strong candles being like a lead weight taking place.
Hole candles are gentle and hole, like a balloon going up.
Or, should you favor, you may swap the chart to open-close-bars as a substitute of candlesticks:
The tick on the left aspect of the bar is the place the value opened.
The tick on the suitable aspect of the bar is the place the value closed.
A extremely regarded characteristic of AbleTrend (and due to this fact additionally WinTick) is the dynamic volatility T2 stops.
Relatively than having merchants set a cease loss at a hard and fast quantity or fastened proportion, this dynamic T2 cease loss setting can decide help and resistance based mostly on market knowledge run by way of a mathematical algorithm – not by a human eyeballing and drawing generally arbitrary traces on the chart.
The help degree is indicated by blue dots (if in an uptrend).
The crimson dots point out the resistance degree (if in a downtrend).
These dots are identified on the T2 stops – T2 stands for AbleTrend model 2.
If a candle closes past its T2 stops, it’s time to get out of the pattern.
Be aware the key phrase is “shut”.
Intraday piercing of the T2 stops doesn’t rely.
John says that the alerts are rather more correct when utilizing the shut.
Many merchants need to put in a cease order proper after commerce entry.
In that case, they will place the onerous cease at a help degree one degree beneath the present cease degree.
If the dealer feels that is too distant, they will alternatively place the onerous cease loss mid-way between present help and the below-level degree.
The dealer will nonetheless need to get out if he sees the candle closes past the present T2 cease degree.
Nevertheless, the onerous cease, one degree beneath, is a security mechanism for when the dealer is preoccupied with life and never watching the charts.
Now that we all know learn how to exit a pattern.
How can we enter a pattern?
You might have a confirmed uptrend when the T1 indicator and the T2 stops are blue.
You might have a confirmed downtrend when the T2 indicator and the T2 stops are crimson.
The 2 indicators are independently calculated.
Once they each agree, you may enter the pattern.
This chart exhibits the place you’ve got crimson candles with crimson resistance dots and the place you may enter a brief place.
The blue candles with the blue help dots are the place you may enter an extended place.
Pattern merchants have to commerce when there’s a pattern.
They should cease buying and selling when the market is in “chop” or a “sideways pattern.”
(Except you’re a non-directional delta-neutral choices dealer.
In that case, you commerce in chop when the pattern merchants cease).
The system signifies the market is in a chop when:
The T1 sign and the T2 sign don’t agree
There are two consecutive inexperienced candles
There are two flawed alerts in a row
Frequent modifications of colours
Right here, we see consecutive greens and a disagreement between T1 and T2.
No commerce.
Frequent modifications of colour point out a uneven market.
A good thing about the system is that it tells you when NOT to commerce.
Understanding when to not commerce can prevent cash.
The issue that many merchants face is that in a successful commerce, concern of earnings slipping out of their arms makes them take revenue too quickly.
In a dropping commerce, the hope of restoration makes them maintain the dropping commerce for too lengthy.
Taking emotion out is the important thing to enhancing buying and selling with a mechanical system like AbleTrend.
It tells you you may keep within the commerce if the T2 cease has not been damaged.
And it tells you that you could get out when the T2 cease has been damaged.
You simply want the boldness to imagine within the system and the self-discipline to comply with the alerts.
With out confidence within the system, you’ll not have the self-discipline to comply with its sign.
One method to acquire confidence within the system is to manually backtest its alerts.
The truth is, John encourages customers to take action.
As soon as a candle and its indicators are painted, it’ll by no means change.
Due to this fact, you may scroll the chart again in historical past and rely what number of alerts labored versus what number of alerts didn’t get a way of the accuracy of the buying and selling indicator system.
WinTick members even have entry to inventory decide experiences generated by its AutoScan algorithm:
The algorithm behind the AbleTrend / WinTick system includes transferring averages (easy, weighted, and exponential), MACD indicator, ADX indicator, and STARC Bands – all based mostly on worth alone.
How does AbleTrend / WinTick give you the T2 stops?
That, in fact, is prime secret.
Even after going by way of everything of John Wang’s e book AbleTrend: Figuring out and Analyzing Market Developments for Buying and selling Success, I nonetheless don’t know.
All he says in regards to the internals of the T2 stops is that it’s proprietary and never shareware.
All the opposite info on this article relies on publicly accessible info, largely from John’s e book.
This was only a fast have a look at WinTick.
Whereas WinTick is only a small subset of the AbleTrend System, inspecting WinTick by itself actually doesn’t do justice to the extra subtle and complicated AbleTrend System.
A full comparability between WinTick and AbleTrend will be discovered on their web site.
The AbleTrend system has existed since 1994 and has earned many awards since then.
It’s been utilized by many customers in numerous markets, which signifies the system’s robustness.
It’s believed that its authentic formulation has not modified a lot.
Any system that has been round for 30-plus years should have withstood the take a look at of time and is perhaps price trying into.
We hope you loved this WinTick overview.
When you’ve got any questions, please ship an e-mail or go away a remark beneath.
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Disclaimer: The data above is for instructional functions solely and shouldn’t be handled as funding recommendation. The technique introduced wouldn’t be appropriate for buyers who should not acquainted with trade traded choices. Any readers on this technique ought to do their very own analysis and search recommendation from a licensed monetary adviser.