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Building Winning Trading Systems with TradeStation™ by John R. Hill, George Pruitt

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4

TradeStation Analysis Techniques

EasyLanguage is the power behind TradeStation. Without this power, TradeStation would not be any different than any of the other real-time charting software packages. EasyLanguage is the driving force behind all of TradeStation's analysis techniques: PaintBar, Indicator, ShowMe, Function and Strategy. Each of these techniques are discussed, and sample code is given so that you can use it as a template for your own research. We have covered the basic essentials of programming from the first three chapters and now will use this knowledge to put our trading ideas into action.

INDICATORS

An indicator is a graphic representation of a mathematical formula used to analyze market data. If you have used charting software before, you probably know what some of the most popular indicators are. Indicators are the lines (graphs) that are either plotted on top of bar charts or in subgraphs above or below the bar chart. These lines are used to help understand and, in some cases, to forecast market action. Indicators are the plotted output of a formula applied to the price data.

The most famous indicator of all is the moving average of closing prices. The graph of the moving average is a continuous line that can be plotted on the actual bar chart data. Not all indicators can be plotted on the underlying bar chart due to the difference in their scaling properties. The scale of the output of a moving average calculation is the same as the data that was used for ...

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