Hilow Chart V9.02E
 Technical Charts for Stock Market Analysis
More than 30 kinds of Chatrs Integrated in Hilow Chart

HiLow Chart V9.0 | Over view | Purchase online | Free Trial | System | Summary | Order your copy





Copyright: Japan Science & Technology Inc. 1984-2008


HiLow Chart V9.02.1

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The features of the new version
Hilow Chart V9.0

Market Analysis By Hilow Chart

 We look Tomorrow in the past.
Professional investors use technical charts or indices to foresee the future. Those charts are often suggestive of future prices of stocks, securities, commodities or currencies in markets.
These days professional analysts use various technical charts worldwidely as the primary tool. In order to improve your investing efficiency. Analysis with charts is essential.

Today, many software have been developed for technical analysis. One of the most unique technical analysis software is "Hilow Chart V9.0", which converts market data into more than 30 different types of charts and indices which are worldwidely employed including several Japanese charts such as, Candlestick chart, Kagi-ashi, Renko-ashi, Ichimokukinkohyo, etc.. Those are nowadays gaining popular among the West. No other software can provide such rich variety of the charts like "Hilow Chart V9.0".

With mathematics and statistics formula, "Hilow Chart V9.0" has been developed for investors to analyze market price activity and illustrates more than 30 kinds of easily readable graphs or charts on your computer screen.
By those chart navigation, you can improve the investing performance or lessen investing-risks.

Why you need more than 30 different charts?
Because each chart has slightly different features and characteristics. Chart users always need to know their characteristics before use. This is more important when you begin to use technical charts.
As "Hilow Chart V9.0" creates multiple charts, you will find different characteristics of each chart by comparing one to another.
Depending on your investing style or conditions(time or investing capital), you may choose the most suitable chart to the securities in your portfolio.

How to view the charts, how to apply to your strategy, and "Hilow Chart V9.0" features are shown in the following sections.

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Extraordinary technique and charts now added
Besides Western charts, several unique and popular Japanese extraordinary technique and charts have been added to "Hilow Chart V9.0". Analysis by those charts may be most potent when Western methods merged with Japanese. For example, the candle stick charts, nowadays getting more popular to us, were developed in Japan and the oldest type of charts used for future price prediction on record. They date back to the 1700's, when they were used for predicting rice prices in Japanese commodety market. They have been used more than three centuries and verified in Japan.

Find best trade timing on charts
Historical price data from Yahoo or Metastock* downloaded via Internet is stored as database, and "Hilow Chart V9.0" calculates with statistical formula and displays multiple charts and indices from the database. The charts suggest market trend and predict prices in the future. Also, it detects an unusual price activity in the market and suggest market's turning points, and show you proper trade timings.
(*) Applicable after text(ASCII) format converting from MetaStock Data.

Watching unusual trade volume
When the trade volume increases suddenly, the market price moves or will move soon to up or down direction depending on where it occurs within the context of prior trends. "Hilow Chart V9.0" keeps watching the trade volume and displays warnings on the chart. The watching the trade volume change is essential to your trading strategy.

Better results using multiple charting techniques
If you are already using Western charts such as Stochastics, Bolinger, Point & Figure, etc., then "why do you need other type of charts?"
The answer to this question is simple. When you employ both the Western and the Eastern technique, predicting work will be more enhanced in its accuracy. Consequently, you can get better investing results by the multiple charting techniques.

Japanese charts such as, candle chart, Ichimoku kinkou chart, Renko-ashi, Shinne-ashi, or Kagi-ashi charts, now used internationally by traders, investors or premier financial institutions.

"Hilow Chart V9.0" can be analyzing not only for stock or commodity prices, but also for currencies or future markets. With new these features, "Hilow Chart V9.0" is now available from Japan Science & Technology.

50 Year Month-chart, 10 Year Day-chart on Screen
"Hilow Chart" is capable to display and process up to ten years or more day data on a single day-chart or 30 years or more on week-chart, or with long-term data, 50 years or more on month-chart.

Overlapping different analytic charts
On making trading decision, you can view different analytic charts created from the same stock data on your screen. The different type of charts such as, time-independent charts( Kagi-ashi, Neri-ashi, shin-ne-ashi, Point & Figure, etc. ) can be viewed with the candle chart on the same screen by overlapping. Your decision over those multiple charts will be more trustful than decision by single chart.

Simple and easy to use charts
The new "Hilow Chart V9.0" is simple and easy to use, which is not only for professional chart-analysts but also chart beginners who needs to find critical trading timing or information along historical data by using multiple charts. Or for investors who could not take selling-buying timing well until now, try "Hilow Chart", then you will find good trading-timing and better results.

No running cost after you purchased
One of remarkable features of "Hilow Chart V9.0" is designed for running cost free to obtain price data. As long as you download data from Yahoo Website, it costs you nothing. Even you can maintain and update the price data daily.

Metastock data can be used (option)
If you are now a Metastock data subscriber, you can use it for "Hilow Chart V9.0".. If you are not , it is not necessary to subscribe.. It will work with Metastock data(Ascii format)** and provides technical charts as well.

(**) Ascii format converter ( free shareware) may be needed in front if you have Metastock original format.




System requirements



Hilow chart requires the following environments;

  • Processor:
    Intel Celeron, Pentium III/IV/ V, AMD 450MHz or higher
  • Memory:
    512 MB (recommended: 1024 MB or more) of RAM
  • Video system:
    VGA, SVGA 1024 X 768 or larger recommended
  • Video Memory:
    256MB (recommended: 512MB) or more
  • Operating System:
    Windows98/2000/NT/XP/Vista
  • Internet Explorer 6.0 or higher
  • Color Monitor:
    17"-22" color 256(32bits) or better
  • Hard Disk Space:
    100MB or more
  • Hard device:
    3 buttom mouse with a center wheel
  • Data Input :
    Internet download, Keyboard, Text files(Excel etc.)

Display charts and graphs:
  • Daily chart: upto 10 years or more
  • Weekly chart : 30 years or more
  • Monthly chart : 50 years or more




Charts and Graphs

"Hilow Chart V9.0" provides the following charts and graphs
Introducing Japanese charting technique

A. Time dependent charts


Trading Point Indicator(TPI)

 　Unique indicator, Trading Point Indicator(TPI), is introduced to this new version. TPI analyzes the current prices with historical data and suggests trading-points and timings( BUY or SELL) on the charts.(See the following figures)

In downtrend, a bearish period in the marketplace, prices continue to move on the down slope. However, if prices move up unusually against the trend, TPI detects it as a turnaround signal which may change the current trend.
As being employed the candlestick multi-bar formation theory, for example, a group of candlesticks forms a formation, TPI detects trend changes more quickly than other charts do. As the following example shows, it detects early market's turning points before other indices do. TPI forecasts a change of market trends faster, and being used as a leading indicator of stock and commodity markets.

　Moreover, the TPI chart displays BUY and SELL timings clearly, unlike other charts such as, Candlestick charts or Point & Figure, you do not need to learn peculiar graphic patterns or its formation sequences. TPI, therefore, can be used for investors who are not familiar with analysis of charts.

How to view

See the following figures. When a green line marked "UP" extends upwards from the bottom is longer than 20 points, it shows such strong BUY. The longer is the more bullish. On the other hand, a long red line marked "Dn" falls from top to the bottom predicts the price may be falling soon in the market.
The market, also, may be bullish in the zone where TPI near 100 points or over. To the contrary, it approaches or stays around zero, the market may be bearish or waiting rebound.

When the market is about to rebound, the TPI detects and tells you by long green up-line which is jumping about 40 or 60 points from the bottom zone. Particularly, when it appears in the zero(0) zone of the chart and when the line is longer, it suggests a strong rebound.

If TPI comes to about 80 - 120 point zone, you may "HOLD" or "SELL". Or you need to look for the best timing to sell.

Let's verify this with real data.
The next figure, for example, is the recent(June. 2007-Jan.2008) TPI charts of IBM. By comparison with the candlestick-price charts, they show "BUY" signals in advance that market moves. You can see easily BUY or SELL price-points or signals on the TPI chart below.


TPI chart of IBM


Candlestick chart (Daily, Weekly, Monthly)

 Candlestick chart and charting method originally developed in 1700's in Japan. This charting technique has become very popular among east and west traders. There are four elements necessary to make a candlestick chart, the OPEN, HIGH, LOW and CLOSING price for a given time period. The high and low are described as shadows and plotted as a single line. The price range between the open and close is plotted as a thick bar on the single line. If the close is above the open, the thick bar is called as "Yoh-sen(Positive bar)" colored in green. If the close of the day is below the open, it is called as "In-sen(Negative bar)" colored in red in the following figure. The following figure illustrates an example of candlestick chart and its definition for each component.


In the chart above, the long green bar represents a bullish period, the 'long green bar' shows the closed price was higher than opened. Prices were all over the map during the day, but the stock opened near the low of the day and closed near the high.
In the chart, you see the long red bar. The long red bar represents a bearish period in the marketplace. During the trading session, the price of the stock was up and down in a wide range and it opened near the high and closed near the low of the day. The thin lines above or below the bars show the price-range of the day or given period. The price of the stock moved between top and bottom of the line.

Candlestick charts not only show the trend of the move, as does bar charts, but, unlike bar charts, candlestick charts also show more information such as, the force underpinning the move.

Candlestick charting is a very complex and sometimes difficult system to understand. Many professional investors have analyzed market trend with the candlestick chart's pattern-formation which consists of combination of several single candlesticks.

We show some simple candlestick combination formations.

Candlestick Formation & Patterns( Reversal trend signals )

 Just as you look to bar charts for double tops and bottoms, head-and-shoulders, and technical indicators for reversal signals, so can candlestick formations be looked upon for the same purpose. A reversal does not always mean that the current uptrend/downtrend will reverse direction, but merely that the current direction may end. The market may then decide to drift sideways. Candlestick reversal formations must be viewed within the context of prior activity to be effective. In fact, identical candlesticks may have different meanings depending on where they occur within the context of prior trends and formations.

The following four formations show reversal signals. If these formations appear in the candlestick chart, the current direction may reverse or end in the context.


The next four of two candlestick formations show the opposite of reversal signals. The current direction may reverse or end in the context.


The next two below of three candlestick formations suggest reversal directions.


The candlestick formations predict often the market trend. Currently, more than hundreds of formations have been studied, as a part of those was mentioned above.
For instance, when it shows "kenuki-ashi" , in-sen/yo-sen formation which locate in parall and are in the same or almost same bottom prices(open --> close = open --> close prices) position, the market trend will turn upwards. If it is yo-sen/in-sen combination in the opposite case, the trend will reverse downwards.

It shows obvious in the following real chart of Dow Jones Index. You can see "kenuki ashi" seven times during last three months (between April and June) in the chart. As expected, the market trend changed upwards each time.

Today, many western investors realize it and began to learn the candlestick formation secrets.






* Bar chart(Daily, Weekly, Monthly)

A standard bar chart displays the high, low and closing price of a stock each day. Recently, the open price is being employed for the chart. The vertical height of the bar represents the entire trading range for the period. The top of the bar represents the highest, and the bottom of the bar represents the lowest price of the period. The close and open prices for the session are indicated by a small dash to the left or the right of the bar. For example, the chart below shows a standard bar chart.



* Line chart(Daily, Weekly, Monthly)

 A line chart is plotted the end prices of the session and connected by a single line. It is commonly used to view only price movement of the market.

Moving average chart
Market prices move daily. If you want to see long-term market trend, take price average of the fixed period. For example, for a 50-day moving average, simply add the closing prices of the last 50 days of a security. Then divide by 50 to obtain the security's average price over the last 50 trading days. Then plot this number on a chart, and then connect the dots to develop a moving average line. The following day, the first day of the price is taken off and add the present day's price, and repeat the addition and division process.

Following figure show 25-day and 75-day moving average lines. The moving average lines show long term trend of the security price easily. We usually use two different lines, one for short and other for long period. When the two lines crossed, the market trend will change.

Goldencross and Deadcross
Let us look at the example below, the green line(25 day average line) crosses the white line(75 day average line) from below then the both lines are rising, which we called a goldencross. The market trend may turn up.
The market may reverse or go down when the opposite occurs, which is called as a deadcross. It is not always necessary that these lines should be 25/75 day average, but they must be a short term/a long term average lines.



* Envelope chart

An envelope is comprised of a pair of moving averages. The one moving average is shifted upward and the other moving average is shifted downward. The moving average lines are shifted either sides with distances of 5%, 10%, 15%, 20% of the security price. The envelopes are used as boundaries to watch the price activity.

Envelopes define the upper and lower boundaries of a security's normal trading range. A sell signal is generated when the security reaches the upper band whereas a buy signal is generated at the lower band. The optimum percentage shift depends on the volatility of the security--the more volatile, the larger the percentage.

The logic behind envelopes is that overzealous buyers and sellers push the price to the extremes (i.e., the upper and lower bands), at which point the prices often stabilize by moving to more realistic levels. This is similar to the interpretation of Bollinger Bands.

* Bollinger band

Bollinger Bands consist of a centerline and two price channels, like the following figure, one above the centerline and one below. The centerline is an exponential moving average, and the price channels are standard deviations of the stock. The bands will expand and contract as the price action of an issue becomes volatile (expansion) or becomes bound into a tight trading formation (contraction). When the stock price continually touches the upper Bollinger Band, the price is thought to be overbought(a sell signal) and conversely, when they continually touch the lower band, the prices are thought to be oversold, and a buy signal.


* Parabolic time price(SAR)

 SAR is a reversal system, designed you to know whether the market is uptrend or downtrend. When it stops you out of a long position, it tells you to go short at the same price. If it stops you out of a short position, it tells you to go long at the same price and time. SAR should be used selectively, only when markets are trending. It is particularly useful during runaway trends.


"Buy" zone is shown in red lines and white line portions are "Sell" zone.

* Ichimoku-kinkou( Glance Equilibrium Table(GET))

 This chart, Ichimoku-kinkou Hyo or "equilibrium-chart-at-a-glance technique, was created back in 1968, this charting technique did not gain international attention until the 1990s. It has since been applied by traders worldwide.
In the years before World War II, a Japanese man, Hosoda developed the Ichimoku Kinko Hyo technique. " Released in 1968, the technique was designed to illustrate where prices were likely to go and when to trade. We introduce this extraordinary technique and how you can apply it to enhance your trading.
Similar to Eliot theory, price "cycle" is analyzed and considered as important, which is 9, 17, 26, 33, 42, 65, 76, 129, 172, 200-257 . . . are significant numbers just like Fibonacci numbers. It is using several lines such as, the conversion line, the base line, and five indices of precedence span 1 and 2 and lagging span.
  • Tenkan-Sen, or conversion line (red)
  • Kijun-Sen, or base line (green)
  • Chikou Span, or lagging span (purple)
  • Senkou Span 1 (blue)
  • Senkou Span 2 (white)

The Ichimoku-Konko technique is employed often by the international trading community, and can prove to be an asset to any trader.
How to view
When the zebra zone in the chart above between the span 1 and 2 lines locates above the current price, it is supposed as the resistant belt. On the other hand, if it locates in opposite, supposed as the support belt.
The point where two spans(1and 2) crossed may be a new turning point of the subsequent market trend.

  • A strong BUY signal occurs when the conversion line (red) crosses above the base line (green) from below. A strong SELL signal occurs when it reverses. The signals must be above the zebra zone.



  • When span 1 and span 2 lines cross, the current uptrend/downtrend will reverse direction.

  • Overall strength is shown to be with the sellers if the lagging span (purple) is below the current price. Strength is shown to be with the buyers when the opposite is true.

  • Support and resistance levels are represented by the presence of the zebra zone. If the price is entering the zebra zone from below, then the price is at a resistance level. If the price is falling into the zebra zone, then there is a support level.

  • Trends can be determined by simply looking at where the current price is in relation to the zebra zone. If the price stays below the zebra zone, then there is a downward trend (bearish). Alternatively, if the price stays above the zebra zone, then there is an upward trend (bullish).




    B. Time independent charts



    * Step chart(KAGI-ashi)

    Step charts(KAGI-ashi) were created around the time when the Japanese stock market began trading in the 1870. Step charts(KAGI-ashi) display a series of connecting vertical lines where the thickness and direction of the lines are dependent on the underlying price action. The charts ignore the passage of time.

    If prices continue to move in the same direction, Up or Down, the vertical line is extended. However, if prices reverse by a "reversal" amount, a new line is then drawn in a new column. When prices penetrate a previous high or low, the color of the Kagi line changes. "Reversal" amount is a key factor to this chart, which is depending to volatility or price of the security.

    "Hilow Chart" provides a tool program how to optimize the "Reversal" amount in following section "Optimization of Reversal amount " The following figure shows an example that Step chart (kagi-ashi), which was converted from the candlestick chart.



    BUY timing is the point where bar chart passes through the previous high price (line top) upwards shown in green line.
    SELL timing is the point where it passes through the previous low price (bottom end) downwards shown in red line.


    * Optimization of Reverse-amount

    The next graph is unique and shows profit or loss depending on the reverse-amount size. The internal program probes the best size for the reverse-amount in a given period. It calculates how much we gained or lost depending on the reverse-amount size of price when you set it on Step chart(KAGI-ashi), Brick Chart (Renko-ashi) and Point & Figure chart.
    It computed profit or loss from the historical security prices you follow, and suggests the optimal amount to set. Sub-program in Hilow chart calculate and shows the results with bar graph. The bar graph below is an example of IBM.



    [Example] It resulted that the optimized gain in given period was from 16% to 22% of the invested capital at the reverse-amount of 3.8 - 4.0 % of the stock prices. If you had chosen the gap(amount) more than 6%, which means you were less sensitive to the price change, you lost almost a half of your investing money during the period. The amount will also vary with your investing period.



    * Brick chart(NERI-ashi or Renkoh-ashi)

    The Brick or Renko chart is named from renga, a Japanese word for bricks. Brick charts isolate the underlying price trend by filtering out the minor price changes. Brick charts can be very useful for determining major trend lines or support and resistance levels.
    It extends a positive unit sized bar(green) upwards like Step chart at the time of rising price, or draws shade bar(red bar) downward at the time of descent.
    Turnaround formations are the most important in Brick charts, as they signal trend reversal. Since the Brick chart is a trend-following technique, there are times when it produces whipsaws, giving signals near the end of a short-lived trend. However, the advantage of a trend-following technique is that it allows you to ride the major portion of a significant trend.



    How to read the chart:

    BUY : when it changes to a positive bar(green) from a shade bar(red).
    SELL: when it changes to a shade bar(red) from a positive bar(green) .

    * Trident chart(SHIN-NE-ashi)

    Trident chart(SHIN-NE-ashi), same as Step chart, display a series of connecting vertical lines where the direction of the lines are dependent on the price action. The charts ignore the passage of time.

    If prices continue to move in the same direction, Up or Down, the vertical line is extended. However, if prices reverse by the amount more than last three, a new line is then drawn in a new column. Unlike other charts such as, Step chart or Brick chart, it reverse only when a new price exceeds or underlies the latest three prices(high or low). When prices penetrate a previous high or low, the color of the Trident line changes.



    How to read the chart:
    It is same as Step chart above,
    BUY : when it changes to a positive bar(green) from a shade bar(red).
    SELL: when it changes to a shade bar(red) from a positive bar(green) .




    * Point & Figure (P&F)

    Point & Figure (P&F) charts are one of the simplest systems for better determining BUY and SELL points in stock market trading.
    The key to P&F charts is the establishment of the 'unit of price', which is the unit measurement of a price movement that is plotted on the graph. On Point & Figure charts, as shown below, there is no time axis, only a price axis.
    Rising stock prices are shown with X's and falling prices are shown with O's. These points appear on the chart only if the price moved at least one unit of price in either direction.
    So say the closing prices of a stock moved up one price unit three times. This would appear as a column of three X's. If the price movement reverses direction, the chart shows a new column of O's, wherein an O is plotted for each unit of price movement. X's and O's never appear in the same column. The chart, however, must establish how many price units make up a box, which is how much the price must move in the opposite direction for the chart to begin a new column.

    How to read the chart:
    It is same as Step chart above,
    BUY : when it changes to a positive 'X'(green).
    SELL: when it changes to a negative 'O'(red).

    Point & Figure (P&F) charts form various patterns. Each one has significant meanings. It is very complex and sometimes difficult system to master all. Many professional investors have analyzed Point & Figure chart's pattern-formation which consists of combination of 'X's or 'O's.





    C. Oscillating charts


    * Psychological line
     Psychological line expresses trader's psychological mind, overheating or over-cooling, in the market. It is indicated in percentage, how many days gain or fell in a given period.
    For example, the index shows 70%, when the price went up for 7 days and fell 3 days in the past ten days. If it expresses 75% or higher, the market seems to be overheating. It suggests that the price will fall some day before not so long.



    Following charts are also provided in Hilow Chart V9.0.

      * Momentum

      * %R Oscillator

      * Relative Strength Index

      * Deviation line

      * Moving Average Convergence or Divergence(MACD)

      * Directional Movement

      * Rank Correlation Index

    * Stochastics(Fast&Slow)

     The Stochastic Indicator is an oscillator that tracks the relationship of each closing price to the recent high-low range. It is useful for identifying stocks that are oversold or overbought compared to recent price activity. Hilow chartV9.0 provides two Stochastic Indicators, fast and slow.

    When trading on Stochastics, you buy when the indicator moves above the 25% mark and sell when it moves below the 75% mark. Stochastic indicators of different duration can be used to trade over different time frames, from short to long. For this signal it is best to trade on the same day it has appeared. Stochastic, as with any oscillator, is best used in combination with long-term trending indicators, such as MACD.

    On the charts below Stochastics indicator is shown. Sell signals are indicated with red square and BUY signals with red circle. The chart uses a 10-day Stochastic fast indicators(%D-%K).





    * Anti-Watch or Counter-clock curve

    Anti-Watch(counter-clock) curve shows an index of the relation between stock prices and trade volumes in given time frame. Usually, when the stock price rises, the volume also increases. This chart monitors the price vs the volume relations. Stock price scale is taken along vertical axis, trade volume on the horizontal axis. It plotted price-volume footprints and tracing of market price vs trade volume movement in order to find market directions.
    It will be a "BUY" sign when the curve moves up toward the right top corner, which means stock price and volume increases. If it moves toward the left bottom corner, which expresses the price and trade volume decreases, it may be a "SELL"signal.



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    * Shinohara ratio

    　"Shinohara ratio charts" was introduced by Shinohara, a Japanese who analyzed market energy strength and popularity, using by three indices (AR, BR, CR). The ratio expresses an energy ratio of the market strength measured by day's highs, lows and closing prices for 26 days. Bullish energy is divided by bearish energy and it indicates by percent.





    D Trade Volume charts

    Following charts are also provided for "Hilow Chart V9.0".
    • Volume ratio(VR)
    • On balance volume (OBV)
    • Moving average, Trade Volume
    • Trade volume (Daily, Weekly and Monthly)

    * Volume vs. Price histogram

     A trade volume vs price histogram is displayed on the rightmost end of the "Hilow Chart" graph.

    It shows volumes at each trading price band of the past.
    In the past, while trade was concentrated at a certain price, the price will become the resistant level(price) in future trading. Once it built thick price walls, it will be difficult to pass though in the future.
    So, the price-volume histogram will be an important index for investors.


    Comments, notes, memos or trend lines can be written on charts

    In order to see the details of the chart such as, trend line, support level, resistant level, split of stocks, capital increase, dividend day, etc. are freely drawn or written on the charts of Hilow Chart . Also, comment, words and phrases can be added in the arbitrary positions of the graph on your monitor. Those comments and phrases are stored in memory. Whenever you run the program, those inserts will appear on individual charts. It is also convenient that data analysis can be carried on expanding the chart or reducing its size just like the way that you are doing on a hard paper.

    Drawing lines, writing comments

     Drawing lines(trend line, resist levels, support lines, etc...) with comments on the charts are possible.
    Wherever you need to draw lines or put comments on the charts or graphs, you can do with Hilow Chart V9.0. The lines and comments on the monitor are saved in the program, so when you run it next time they will be displayed on the chart.



    Hilow Chart V9.0 Summary