What are ValueCharts®?
ValueCharts® are a powerful new way to display price in terms of objective value.
ValueCharts® work for any market including stocks, forex, and futures markets.
ValueCharts® can also be applied to both intraday and end-of-day bar intervals.
How do I use ValueCharts® to trade the markets?
ValueCharts® are a tool that can be used to identify strategic value-based entry and exit points in the markets. A powerful application of the ValueCharts® technology is to use these tools in combination with other valid market analysis tools in order to help identify the most strategic entry and exit points in a market. Strategic entry points often offer highly attractive reward to risk characteristics.
How do I read a ValueChart®?
ValueCharts® are organized into 5 color-coded primary valuation zones allowing traders to quickly and easily understand current market valuation. From top to bottom the valuation zones are: Significantly Overvalued (Red), Moderately Overvalued (Yellow), Fair Value (Green), Moderately Undervalued (Yellow) and Significantly Undervalued (Red).
Do I need an advanced understanding of technical analysis to use ValueCharts®?
No. ValueCharts® are designed to be easy to use and highly intuitive. However, ValueCharts® are more effective as a trader’s skill level increases.
What's the difference between ValueCharts® and Bollinger bands?
Bollinger Bands are designed to give trader’s a general sense of extreme high and low price levels, while ValueCharts® go much further by defining both comprehensive market valuation and by communicating the exact degree that price is overvalued or undervalued. Some traders use both tools together to generate trading signals.
What makes ValueCharts® effective in defining market valuation?
Adaptive price units, known as Dynamic Volatility Units℠, enable ValueCharts® to be effective in defining market valuation through dramatically changing market conditions. Leading the new science of market valuation, ValueCharts® represent the only tool available that both defines market valuation and communicates the degree that a market is overvalued or undervalued.
How do I use ValueCharts® to trade forex, stocks, futures, options, etc.?
There are many different ways to apply the ValueCharts® tools to trading, but some of the most popular applications include identifying strategic market entry and exit points and uncovering value-based trading opportunities that might otherwise go unnoticed. MicroQuant℠ offers weekly webinars on different investment strategies that utilize ValueCharts® and, in addition, MicroQuant℠ offers one-on-one consultations with professionals to assist you with incorporating ValueCharts® into your current trading strategy.
Can I use ValueCharts® as a standalone indicator?
Yes, you can. However, as with any trading tool, we recommend that you use ValueCharts® as a part of a comprehensive trading strategy. We offer weekly webinars on different trading strategies using ValueCharts® as well as offering one-on-one consultations with one of our professionals to assist you with incorporating ValueCharts® into your current investment strategy.
What are the disadvantages of not using ValueCharts® in trading?
Traders who do not use ValueCharts® will not be able to define market valuation and will not be able to determine the degree that price is overvalue or undervalued for any market. Value is the most important variable for describing a market and should be an integral part of any trading decision. Traders who do not know the current value of a market are missing one of the core components of price needed to make a quality trading decision.
How can using ValueCharts® make my trading decisions easier?
By clearly defining market valuation and distinctly identifying extreme market valuation levels, ValueCharts® assist in any trade by taking much of the guesswork out of initiating trades or analyzing the market. ValueCharts® were designed to be intuitive and easy to use.
How are ValueCharts® and Price Action Profile® different than Market Profile?
Market Profile represents a very different approach to defining market valuation than ValueCharts®. Market Profile analysis includes a higher degree of subjectivity that often requires a greater trader skill level than does ValueCharts®. Market Profile does not communicate the degree that a market is overvalued or undervalued and Market Profile cannot be used to place trades based on value language, whereas ValueCharts® can perform both of these tasks. We at MicroQuant℠ believe most trading tools have something valid to offer the field of technical analysis and we believe that Market Profile can be a powerful tool alongside ValueCharts® when trading in the markets. Some traders use both forms of analysis to increase their probability of success.
What is "value" in a ValueChart? When you say, "ValueCharts® plot price in terms of value", what does that mean?
When most traders think of the traditional definition of value, they are thinking of Subjective Value. This is often nothing more than the opinion of an analyst or a research firm. ValueCharts® are completely different. ValueCharts® plot Objective Value which is derived directly from an analysis of transactional price history. Value is defined as the relative attractiveness of cost at different price levels, as defined by market participants. ValueCharts® analyze transactional price data to define market valuation. A more detailed look into value is available in our white paper titled, Cost vs. Value.
What platofrm offer ValueCharts®?
MicroQuant℠ has released ValueCharts® on the TradeStation, MultiCharts, NinjaTrader, eSignal, and Sierra Charts platforms. In addition, ValueCharts® will also be available on other platforms. Be sure to check our website at www.ValueCharts.com for more updates on our various partners.
What training courses does MicroQuant℠ offer on trading with ValueCharts®?
We offer weekly webinars detailing different methods of using ValueCharts® to discover strategic value based entry and exit points. In addition, traders can also register for a one-on-one consultation with MicroQuant℠ professionals to assist then with incorporating ValueCharts® into their current trading strategy. MicroQuant℠ is also developing a series of online training courses that will offer both institutional and retail traders extensive education on the ValueCharts® concept.
Is this a purely technical indicator? Or does it also account for fundamentals?
ValueCharts® Indicators are purely technical in design and therefore do not contain any subjectivity or human element in their analysis.
When you say "ValueCharts® communicates the valuation of a market," are you referring to a single stock or the market as a whole?
Similar to any other market indicator or technical tool, ValueCharts® is only applied to a single symbol. ValueCharts® can be used to analyze and exchange traded or OTC market in the world.
Do ValueCharts® work with Options?
ValueCharts® are a very powerful tool that can be incorporated into any options trading strategy. ValueCharts® can be applied to the underlying instrument to identify optimal value-based entry and exit points for options trading strategies.
Does ValueCharts® communicate the degree a market is undervalued / overvalued in real time?
Depending on the data referenced by ValueCharts®, ValueCharts® can either reflect real time or delayed analysis.