Metastock: Dr. Elder'S Enhanced Trading Room
Metastock: Dr. Elder'S Enhanced Trading Room
Metastock: Dr. Elder'S Enhanced Trading Room
Elder’s
Enhanced Trading Room
MetaStock
Add-on Manual
MetaStock
4548 South Atherton Dr, Suite 200
Salt Lake City, UT 84123
http://www.metastock.com
Except as permitted by law, no part of this document may be
reproduced or transmitted by any process or means without the
prior written consent of MetaStock and Elder.com. By publishing
this document MetaStock and Elder.com do not guarantee that
any information contained herein is or will remain accurate or
that use of the information will ensure correct and faultless
operation of the relevant product or service. MetaStock and
Elder.com provide products and services as tools to be used by
investors who are aware of the risk inherent in securities trading,
not as recommendations to buy or sell. MetaStock, its agents,
affiliates, and employees shall not be held liable to or through
any user for any loss or damage whatsoever resulting from
reliance on the information contained within this document or
through the use of MetaStock products or services.
Chapter 1 - Introduction......................................................... 1
Welcome ..........................................................................................1
How to Use This Manual ............................................................1
Chapter 2 - Components ........................................................ 3
Indicators: ........................................................................................3
Explorations: ...................................................................................4
Expert Advisors: ............................................................................4
Templates: .......................................................................................5
Chapter 3 - Indicators ............................................................. 6
Elder - AutoEnvelope ..................................................................6
Elder - Bull Power & Elder - Bear Power ................................8
Elder - Chandelier Long & Elder - Chandelier Short .........9
Elder - Chandelier Long Entries & Elder - Chandelier Short
Entries ................................................................................... 10
Elder - Force Index .................................................................... 11
Elder - ForceIndex with ATR channels (new) ................... 12
Elder - Impulse ............................................................................ 13
Elder - Impulse Release ............................................................ 15
Elder - MACD-Histogram & Elder - MACD Combo ......... 16
Elder - MACD Divergence Helper (new) ............................ 17
Elder - MACD-Histogram Xover ............................................ 18
Elder - Market Thermometer ................................................. 20
Elder - SafeZone Long & Elder - SafeZone Short ............ 21
Elder - SafeZone Long Entries & Elder - SafeZone Short
Entries ................................................................................... 23
Elder - Smoothed Rate of Change ....................................... 23
Elder – Zig Zag ............................................................................ 24
Chapter 4 - Templates .......................................................... 26
Elder - Chandelier Stops .......................................................... 27
Elder - Chandelier Stops with Entries ................................. 27
Elder - Daily .................................................................................. 28
Welcome
Thank you for purchasing this add-on. The original version was
developed in 2004 by Dr. Alexander Elder, the author of TRADING
FOR A LIVING and COME INTO MY TRADING ROOM, and John
Bruns, a programmer.
MetaStock already has some of the indicators described in Dr.
Elder’s books, but quite a few are missing from their set. This add-
on contains those missing indicators. New indicators include the
Market Thermometer and the SafeZone stop. The Elder add-on
also provides MetaStock templates with basic screens and
samples of each indicator, showing how they are best formatted.
In addition to the indicators, there are scans that allow you to find
stocks based on these indicators. Several Advisors are provided.
While these are not intended to be complete trading systems,
they show you how to generate signals based on the systems
that can be modified to fit your trading style. These help you
understand the methods described in the books, but they do not
automatically replace careful, independent study and planning
before entering each trade.
Chapter
Chapter Title Contents
Number
Two Components Overview of the compo-
nents included in Dr. Elder’s
Enhanced Trading Room
Three Indicators Descriptions of the indica-
tors and how to use them
Four Templates Descriptions of the tem-
plates and how to apply
them
Five Explorations Descriptions of the explo-
rations and how to run
them
Six Expert Advisors Descriptions of the expert
advisors and how to attach
them to your charts
Seven Getting Help Where you can get help
and support for Dr. Elder’s
Enhanced Trading Room
Eight About Dr. Elder A short synopsis of Dr.
Alexander Elder‘s career
Indicators:
• Elder - AutoEnvelope
• Elder - Bull Power
• Elder - Bear Power
• Elder - Chandelier Long
• Elder - Chandelier Long Entries
• Elder - Chandelier Short
• Elder - Chandelier Short Entries
• Elder - Force Index
• Elder - ForceIndex with ATR channels
• Elder - Impulse
• Elder - Impulse Release
• Elder - MACD Combo
• Elder - MACD Divergence Helper
• Elder - MACD-Histogram
• Elder - MACD-Histogram Xover
• Elder - Market Thermometer
• Elder - SafeZone Long
• Elder - SafeZone Long Entries
• Elder - SafeZone Short
• Elder - SafeZone Short Entries
• Elder - Smoothed Rate of Change
• Elder - Weekly MACD Histogram
• Elder – Zig Zag
Explorations:
• Elder - Envelope Channel Size
• Elder - Fallen Angels
• Elder - Flip to Green
• Elder - Flip to Red
• Elder - ForceIndex Bands Exceeded
• Elder - MACD Semi-Automatic Divergence
• Elder - Market Thermometer
• Elder - Triple Screen Long
• Elder - Triple Screen Short
Expert Advisors:
• Elder - Flip Chart
• Elder - ForceIndex exceeded ATR Channels
• Elder - Impulse
• Elder - Impulse with Divergence
• Elder - MACD Semi-Automatic Divergence
• Elder - Triple Screen
Elder - AutoEnvelope
Envelope channels are set parallel to the moving average
(parallel to the slow MA if you use two MAs). The two channel
lines must contain approximately 90-95% of all prices for the past
two or three months between them, with only the extremes
protruding outside. Envelope channels provide attractive profit
targets – sell longs near the upper channel line and cover shorts
near the lower channel line.
The AutoEnvelope is a custom indicator - an original tool that
automatically sizes channels by calculating a standard deviation
Chart: HES weekly, Force Index smoothed by 13-bar EMA. Red and
green arrows mark where 13-week Force Index extremes identified
tops and bottoms.
In our experience, these signals work especially well on the
weekly charts with these default parameters.
• Periods (13) – sets the length of the EMA for smoothing Force
Index.
• Band EMA Length (21) – set EMA for ATR Channels
Elder - Impulse
The Impulse System was first described in COME INTO MY
TRADING ROOM. It uses the direction of both the MACD-
• Elder - AutoEnvelope
• Moving Average - 13 bar Exponential
• Elder - Impulse
• Elder - MACD Combo
• Elder - Force Index
Note: Elder - Impulse Expert attached. It is important to note that the
expert uses the default values of the Elder - Impulse function
and not the input values. If you change the inputs to the Elder
- Impulse indicator, the band type impulse plots will not match
the colored bars on the price chart.
• Elder - AutoEnvelope
• Moving Average - 13 bar Exponential
• Elder - Impulse
• Elder - MACD Combo
• Elder - Force Index
• Elder - AutoEnvelope
• Moving Average - 13 bar Exponential
• Elder - Impulse Release
• Elder - MACD Combo
• Elder - Force Index
This template is similar to the standard Elder Daily but has
Impulse Release bars instead of Impulse bars. it uses the two
time-frames as explained under the Impulse Release indicator.
Elder - Ray
Step Action
1 Open the chart.
2 Right-click on the chart.
3 From the shortcut menu, choose Apply Template.
The Apply Template dialog opens.
Step Action
1
Click to open the Power Console.
2
Click .
The Explore screen appears.
Step Action
6 Click Start Exploration.
The Exploration Status Dialog opens. The dia-
log shows you how much time the exploration
will take to complete, plus other useful infor-
mation.
Rationale
While writing his e-book on divergences, Dr. Elder came up with a
new concept. Instead of trying to create an automatic
Exploration, why not make a semi-automatic one that will signal
This weekly chart of AT&T (ticker T) shows how pale red dots of
Semi-Automatic Exploration warn you that a bearish divergence
is building. Prices are higher than several weeks ago, while
MACD-Histogram had crossed below its zero line and is now
rising to a much more shallow level. The dots turn bright red to
alert you that MACD-H began to decline, a bearish divergence
has been completed, and there is a trading opportunity on the
short side.
Closer to the right edge of the screen, dark green dots appear.
They mark a bullish divergence: prices are lower, while MACD-
Histogram had crossed above zero and then declined to a much
shallow level and then began to rise.
MACD Divergence Semi-Automatic is not an automatic trading
method. It generates alerts when market conditions are ripe for a
divergence. Once you see its signal, you need to mobilize your
skills and trading methods to take advantage of a divergence if
one is completed.
Bullish pale green dots appear on the chart of KHC after prices
break to a new low (below the orange line marking its previous
bottom), while MACD-Histogram breaks out above the zero line
and then begins to sink to a more shallow bottom. The dots turn
dark green after MACD-H ticks up, completing its bullish
divergence. Now’s the time to use your trading skills to position
long near the lows.
Step Action
2 Click .
The Charts screen appears.
Step Action
1 Right-click on the chart.
2 From the shortcut menu, choose Expert Advisor>
Attach.
The Attach Expert dialog opens.
Step Action
1 Open a chart with an Expert Advisor attached.
2 Right-click on an open area of the chart.
3 Choose Expert Advisor > Commentary.
Technical Assistance
For assistance installing Dr. Elder’s Enhanced Trading Room or
using any of the templates or formulas it installs, please contact
MetaStock Technical Support.
Support support@MetaStock.com
Email