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Opinion Calculations

Barchart Opinions show traders what a variety of popular trading systems are suggesting in terms of going long or short the market.

The Opinions takes up to 2 years worth of historical data and runs these prices through thirteen different technical indicators.

After each calculation the program assigns a buy, sell or hold value for each study, depending on where the price lies in reference to the common interpretation of the study.

For example if the price is above the moving average of the stock then this is generally considered an upward trend or a buy.

Each study links to a chart to give you a graphical interpretation of the result of the study.

Note: A security needs to have at least 101 active trading days in order to generate an Opinion reading.

Calculations
The Short, Medium and Long term indicators are grouped together and calculated separately for their groups. The overall indicator is a composite of all 13 studies listed on the page.

The indicator value is determined by adding up the totals for the different groups and dividing this sum by the number of studies in the group, The indicator is expressed in terms of a percentage. If the total is greater than zero, then this is a Buy. If the total is zero, then this is a Hold. If the total is less than zero, then this is a Sell.

To keep the results in a more logical format, we factor the overall opinion by 1.04 to keep the end result in multiples of 8 percentage points, with the exception of a 100% buy or sell. This is why the opinion indicators will be displayed as 8%, 16%, ... 88%, 96% and 100%, for example, rather the exact percentage value.

Signal Strength
The signal strength is a measurement of the strength of the signal compared to its historical performance.

The strength can be one of the following five readings:

Maximum is the strongest this signal has been in the historical period and Minimum is the weakest the signal has been in the historical period. Stronger signal strengths are less likely to change directions over the short-term than a weak signal. For example, a Maximum buy signal is less likely to change to a hold or a sell signal than a Weak buy signal. A hold signal does not have a signal strength.

Signal Direction

Buy/Sell Signal Direction

The Signal Direction indicates whether the Buy or Sell signal is strengthening or weakening.

The buy/sell direction can be one of the following five readings:

A buy signal with a "Strongest" direction is a buy signal that is becoming a stronger buy signal. Similarly a sell signal with a "Strongest" direction is a sell signal that is becoming a stronger sell signal.

Hold Signal Direction
The Signal Direction for a hold signal indicates whether a signal is heading towards a new buy signal or a sell signal.

The Signal Direction for a hold signal can be one of the following five readings:

A bullish hold signal indicates that the signal is heading towards a buy configuration. Likewise, and a bearish hold signal indicates that the signal is heading towards a sell configuration.