FireCharts.com

 
 

Welcome to FireCharts.com

FireCharts Users Group / Message Board
http://groups.yahoo.com/group/FireCharts

FireCharts are simple to create:
Type a stock symbol like "QQQQ" and click "GO."

Note: There will be a RED diamond in the bottom left corner indicating when you should be on the Web. It will turn GREEN when the stock data is loaded and it is safe to get off the Web. (You don't have to get off the Web if you don't want to)

Besides drawing topographic stock charts FireCharts has several useful utilities:

1) Angular Wave Price Alerts - Instead of setting price alerts only on the horizontal you can now set price alerts that follow the waves so each day the trigger price to buy or sell is different. You can be notified by an audio alert when a price wave is hit on either the buy or sell side.

2) Triangulate Prices - You can now right click on three points (peaks middle or lows) on a chart and it will display likely points of triangulation. These are sometimes related to significant turning points.

3) Your Personal Web Links - You can now have YOUR favorite web links on a drop-down menu within the program and your web page will always be looking at the stock you are interested in without having to type the stock symbol for each web address.

4) Real-Time Quotes Charted - While you are on-line FireCharts will add the most current RTQ every time you re-draw the chart so you don't have to re-build the chart from scratch every time.

For more Help click the menu 'Help' tab and then 'Use Popup Hints' tab.

You will notice a lot of charts have no wave pattern at all, just a general direction of the flow. The best advice is to "Go with the flow." That is to say, go in the same direction as the majority of waves. "Waves" are the yellow lines on the red background most likely forming a "<" pattern -though you may only be seeing the top or bottom of the full pattern..

  1. If the price hits a Wave you may want to get out and take your profits or at least suspect that the market may go in the opposite direction.

  2. Look at the overall direction of the Waves that the price is riding in and anticipate the market to continue in that direction.

  3. Longer Waves tend to have more power than shorter Waves.

  4. Horizontal Waves tend to have more power than angled Waves.

  5. Thicker Waves tend to have more power than thinner Waves.

  6. Brighter (Higher) Waves tend to have more power than dimmer (Lower) Waves.

  7. Usually two Waves stand out above the rest. They are the upward sloping Wave (made mostly by the BULLS) and the downward sloping Wave (made mostly by the BEARS). Together these two Waves create a sideways "A" that may look like a "less-than" sign "<". The price tends to stays within the "A" Waves.

  8. Larger <'s tend to have more power than smaller <'s.

  9. Wider <'s tend to have more power than narrower <'s.

  10. The side of the < with the most Waves tends to have more pull.

  11. <'s tend to point in the direction of the market.

  12. Waves that project out from the middle of a price move tend to be strong.

  13. Waves that cross each other tend to be quite strong and can be divided into 3 components, (1)-start crossing, (2)-middle crossing, and (3)-end crossing. Middle crossing tends to be a good indication of the free flow direction of the market. The start and/or end crossing tend to have a strong pull.

  14. Shock Waves (A-Waves so strong that they change the color inside them) tend to occurr at higher levels in up markets and lower levels in down markets.

The Theory behind FireCharts:

Suppose you as an investor were to chart a path where you thought the stock market was going to be over the next say 30 days, and then asked a fellow investor to do the same, and then asked every investor to do the same. If you then compared all the charts, you would find that everyone drew a different chart and none of them matched, not even yours.

But suppose you were to lay all the charts over each other and were able to see what they all had in common... that is the goal of FireCharts. FireCharts assumes that all these investors will be making future investment decisions based on their projections into the future. Armed with this statistical information you may anticipate their moves.

FireCharts is a new charting and forecasting method far better than moving averages, Oscillators, or whatever chart patterns you can find anywhere that are drawn after the fact. I'm sure you have seen analysts connect dots or point to price peaks and bottoms after the fact only to have their pattern disappear a day later. FireCharts shows you key resistance and support lines the day they are created and project them into the future. As computers become faster this type of technical analysis will become the standard.

===============================
=================
========
===
=

An Example of how it is used:

 

You will learn how to set an alert. When the alert is hit then you can then transfer it over to the portfolio.

Below is a simple pattern example you can use to paper trade today.

To set a BUY alert:

First draw the charts (QQQQ then click 'GO') then find one that has a wave that is well defined and prices are bouncing off of it and if possible find a wave that appears in the same location in more than one chart.

Next go to the 'Wave Alerts' page and double click on the grid and then click on 'New'.

It should take you to the chart with the wave you want to Alert on.

BUY waves are support waves and can be found below the current price. The price action should be bouncing on the top of this wave and in general making higher highs and higher lows.

Finally, Right Click on the left side of the wave (you should line up the dotted line with the bottom of the wave) and then Right Click on the right side of the wave.

That is it! The Alert is now set so click on the 'Update Alert' button on the 'Wave Alerts' page to see if the Alert was hit.

If the Alert is hit an alarm will sound and will say BUY and give you the option to move it over to your Portfolio. You are now in the trade.

Now you need a way to exit the trade.

Set a profit SELL Alert just below the next wave that is above the current price. This will ensure that you take a profit if it moves in your direction. However, let the trade run unprotected on the down side for 3 days (to shake out the weak hands). If at any time the trade goes positive set a protective profit stop (never give back a profit) for example if the stock goes up 5% you should lock in 1% (after costs) for your self. Always turn the trade into a no risk trade as soon as possible. If after the 3rd day you are in a loss position then set a stop loss UNDER the next wave that is below the current price. The stock will have a hard time pressing below that lower wave in order to hit your stop. Be quick to move the stop up to grab any profitable position. A 1% gain every two weeks will result in 26% yearly profit. Once you have locked in your 1% no risk stop don't move it up any higher, just let the stock run up and hit your profit stop that should be located just below the next wave above the current price.

Simply by setting your stop loss below a support wave and setting your profit stop below a resistance wave you become like the House in Vegas where the numbers are automatically in your favor. You can then increase your odds by creating no risk profits and picking support waves that show up on several charts and are sloping upwards. You can also hidge or smooth your portfolio by setting half your positions as buys and the other half as sells.

Remember with FireCharts what you are looking for are "well defined waves" that the price has bounced up off of at least once. It really does not matter which chart you use, what you are looking for is a grouping of investors along a Wave (support / resistance line). A-Waves that show up at the same place on several charts are best.

FireCharts are good for getting in a trade:

Say for example you were interested in buying stock ABC a month ago when the price was say $7.15. You drew a daily chart and found on the 'Peaked A-Waves' Chart that you were close to a resistance line (Wave above the price) and say the line was sloping downward showing weakness. You would therefore not buy the stock now but wait and place a buy order on the strong support Wave below the price say at $5.48. Since the support Wave is on a downward slope, every day or two you would lower your bid until finally a month later you get the stock for say $4.17, a whole lot better deal than $7.15. However, because the stock is bouncing off a risky downward sloping Wave you will want to be quick to protect your profits.

For the more advanced FireCharts are also good for projecting prices:

Using the same ABC chart you may see a few days later that a peak was made. You may see on the 'Peaked A-Wave' chart set for "inferred" that there are 3 downward sloping Waves below the peak, a (1) weak Wave, a (2) strong Wave, and a second (3) weaker Wave.

To get the target price you draw a vertical line from the peak down to the top of the (2) strong Wave; you will be at say $5.57. To get the expected target date you can then draw a line horizontally across until you hit the top of the first (1) weak Wave; you will see that you could have predicted that on two weeks later the price for ABC would be at say $5.57.

Furthermore, to get the target price further out in time you continue drawing the vertical line from the peak down past the (2) strong Wave to the top of the second (3) weaker Wave; you will be at say $4.30. To get the expected target date you can then draw a line horizontally across until you hit the top of the (2) strong Wave; you will see that you could have predicted that a month later the price for ABC would be at say $4.30.

Why do stock prices jump and drop down:

The above price prediction works the other way around by using valleys instead of peaks. The fight between the two contributes to the sharp push and pull action you see on stock prices.

Using the same ABC chart you can see that a month later the price jumped up (over the next 6 trading days) 50%. That occurred because the first (1) weak Wave went under the second (2) strong support Wave releasing the power. You may see the same price action months later. It may be caused by another smaller Wave going under the same stronger (2)support Wave. These smaller A-Waves release their power and the price pops up.

Where to find more information on FireCharts:

FireCharts are a new and improved way to draw charts. So new, that you will not find any information on them anywhere except here.

In the universe of stock trading there are as many styles of trading as there are trading philosophies. This mixture of trading styles and philosophies are always on the move, which makes it nearly impossible to predict a stocks next move. I am sure you have seen a trading technique that works great one week fails miserably the next. FireCharts is a way to tell which trading style is CURRENTLY predominant.

FireCharts mayisolate the predominant trading style used by most traders on your particular stock allowing you to anticipate their next move.

Here is a brief explanation of the 5 Wave Charts:

1) Wave Flow chart - Looks at traders that follow the flow or trend of the stock.
2) Peaked Wave chart - concentrates on traders that look at Higher Highs and Lower Lows.
3) Repelled Wave chart - concentrates on traders that look at Over Bought and Over Sold.
4) Persistent Wave chart - is a blend of Wave Flow and Money Wave traders
5) Money Wave chart - concentrates on traders that look at Money Flow

The key to FireCharts is not so much what is one chart vs. another, but which one best represents the traders of your particular stock. You really don't care what group of traders each chart represents. You are only interested in knowing if there are enough traders of a certain style trading in your stock to create a strong well defined Wave that will most likely last long enough for you to get in a trade or two.

To do that you simply find a chart that is creating well-defined Waves and where prices are nicely bouncing off the Waves. From there you can predict which Waves will more than likely support the price and which Waves will create resistance.

The reason we pick well-defined Waves is because their ripples should repel the hardest and last the longest and give you the best opportunity to take advantage of a trade. The idea is that there are so many traders trading in this particular style and in this particular stock that it should take a long time or a major event to convince them change their trading style.

And yes, they will change their trading style over time.

One of the major advantages to FireCharts is that you know when not to pursue a particular trading style.

Using the old style of charting you would blindly continue trading until losses became so great that you had no choice but to change your trading style or go bankrupt. You had no way of seeing when to start or stop using your particular trading style.

With FireCharts you can clearly see when to start and stop trading. If the Waves fade away or a new larger Shock Wave hits then you can see it is time to re-evaluate your trading style. You don't have to wait until you are taking losses to know the market has changed and the Waves are no longer there.


.

As for indicies:

FireCharts uses Yahoo for data. Firecharts need Volume data. Yahoo does not supply Volume data for indices (^????). So as an alternative if you want to look at the Dow Jones Industrial use "DIA" diamonds trust it follows the DJI well. For the S&P500 use "SPY" and for the Nasdaq 100 use "QQQQ" for Bonds use "IEF".

Currently FireCharts are not performed on commodities due to the lack of free data that includes Open, High, Low, Close, and Volume. Our goal is to keep FireCharts free.

Good Luck and Make Some Money!

 

===============================
=================
========
===
=