Barchart Opinions provide traders with insights derived from popular trading systems, suggesting whether to go long or short on the market. These opinions analyze up to 5 years of historical data through 13 technical indicators, assigning buy, sell, or hold values based on price movements relative to each study. For instance, a price above the moving average typically indicates an upward trend (buy signal).
Key Requirements for Generating Opinions
- Securities: Must have >200 active trading days.
- Futures Contracts: Must have >100 active trading days.
Opinions update every 20 minutes using delayed exchange data.
Overall Average Signal
The Overall Average reflects the composite of 13 indicators, displayed as:
- Signal (Buy/Sell/Hold)
- Strength (e.g., Strong, Average)
- Direction (e.g., Strengthening, Weakening)
Indicator Groups by Time Frame
Indicators are categorized based on their interpretation window:
| Time Frame | Days Analyzed | Purpose |
|---|---|---|
| Short Term | 20 days | Recent price movements |
| Medium Term | 50 days | Intermediate trends |
| Long Term | 100–200 days | Long-term trends |
| Trend Seeker® | Composite | Holistic price movement analysis |
Calculation Methodology
Each indicator contributes points:
- Buy: +1
- Sell: -1
- Hold: 0
The group average is the sum of points divided by the number of studies in the group, expressed as a percentage. Results are scaled by 1.04 to align with multiples of 8% (e.g., 8%, 16%, ..., 100%).
Support and Resistance Levels
Pivot points identify intraday support/resistance levels based on end-of-day prices (H: High, L: Low, C: Close):
| Level | Formula |
|---|---|
| Pivot Point (PP) | (H + L + C) / 3 |
| Resistance (R1) | (2 × PP) – L |
| Resistance (R2) | PP + (R1 – S1) |
| Resistance (R3) | H + 2 × (PP – L) |
| Support (S1) | (2 × PP) – H |
| Support (S2) | PP – (R1 – S1) |
| Support (S3) | L – 2 × (H – PP) |
Signal Strength and Direction
Strength (Long-Term Measurement)
- Overall Opinion: Ranges from Maximum (strongest) to Minimum (weakest).
- Individual Indicators: Rated as Maximum, Strong, Average, Soft, or Weak.
Direction (Short-Term Trend)
Buy/Sell Signals:
- Strongest → Weakest (trend intensity).
Hold Signals:
- Bullish (approaching buy) → Bearish (approaching sell).
Barchart Opinion Performance Metrics
Opinions enhance market timing by evaluating:
- Composite Indicators: Trend Seeker® signals.
- Volume Averages: 20-day (short-term), 50-day (medium-term), 100-day (long-term).
- Support/Resistance: Snapshot of pivot points.
👉 Explore Trading Signals for deeper insights.
Snapshot Opinion Widget
Tracks changes in the overall Opinion over:
- Yesterday
- Last Week
- Last Month
FAQs
Q: How often are Barchart Opinions updated?
A: Every 20 minutes with delayed exchange data.
Q: What does a "Maximum" signal strength indicate?
A: The strongest historical signal with low volatility.
Q: Can futures contracts generate Opinions?
A: Yes, if they have >100 active trading days.
Q: How is the Overall Average calculated?
A: A composite of all 13 indicators, scaled to multiples of 8%.
👉 Learn Technical Analysis Tips to refine your strategy.
Opinions are for informational purposes only and do not constitute financial advice.