Understanding Barchart Opinions
Barchart Opinions provide traders with actionable insights derived from multiple technical indicators. These opinions aggregate data from up to 5 years of historical prices, analyzing them through 13 distinct technical indicators. Each indicator assigns a buy, sell, or hold value based on price trends relative to common interpretations (e.g., prices above moving averages indicate a buy signal).
Key Requirements for Generating Opinions
- Securities: Must have 200+ active trading days.
- Futures Contracts: Require 100+ active trading days.
Opinions refresh every 20 minutes using delayed exchange data.
Core Components of Barchart Opinions
1. Overall Average Signal
Displayed at the top of the page, this represents the composite average of all 13 indicators, showing:
- Signal (Buy/Sell/Hold)
- Strength (e.g., Strong, Average)
- Direction (e.g., Strengthening, Weakening)
2. Indicator Groups by Time Frame
Indicators are categorized based on their analysis periods:
| Term | Duration | Indicators |
|---|---|---|
| Short Term | Last 20 days | 5 indicators (e.g., 20-day moving avg) |
| Medium Term | Last 50 days | 4 indicators (e.g., 50-day volume) |
| Long Term | Last 100–200 days | 3 indicators (e.g., 100-day trends) |
| Trend Seeker® | Composite | Proprietary Barchart indicator |
How Opinions Are Calculated
Scoring System:
- Buy: +1 point
- Sell: -1 point
- Hold: 0 points
- Group Averages:
Points are summed and divided by the number of indicators in each group (Short/Medium/Long Term). - Final Opinion:
Results are scaled to multiples of 8% (e.g., 8%, 16%, ..., 100%) for clarity. A value >0 = Buy, 0 = Hold, <0 = Sell.
Support and Resistance Levels
Pivot points help identify intraday price barriers. Calculations use the day’s High (H), Low (L), and Close (C):
- Pivot Point (PP):
(H + L + C) / 3 - Resistance Levels:
R1 = (2 * PP) - LR2 = PP + (R1 - S1)R3 = H + (2 * (PP - L)) - Support Levels:
S1 = (2 * PP) - HS2 = PP - (R1 - S1)S3 = L - (2 * (H - PP))
Signal Strength and Direction
Strength Classification
- Overall Opinion: Maximum, Strong, Good, Average, Soft, Weak, Minimum.
- Individual Indicators: Maximum, Strong, Average, Soft, Weak.
Direction Interpretation
Buy/Sell Signals:
- Strongest (trend accelerating) → Weakest (trend decelerating).
Hold Signals:
- Bullish (approaching buy) → Bearish (approaching sell).
Opinion Performance and Snapshot
- Composite Indicators: Trend Seeker® signals.
- Volume Metrics: 20-day, 50-day, and 100-day averages.
- Snapshot Widget: Tracks opinion changes over the past 3 periods (yesterday/last week/last month).
FAQs
1. How often are Barchart Opinions updated?
Opinions refresh every 20 minutes with delayed exchange data.
2. Why does the opinion show multiples of 8%?
To simplify interpretation, results are scaled to 8% increments (e.g., 16%, 24%).
3. What does a "Strongest" signal direction mean?
It indicates the trend is accelerating (e.g., a buy signal gaining momentum).
4. Can futures contracts generate opinions?
Yes, if they have 100+ trading days of data.
5. How is the pivot point calculated?
Using the formula: PP = (High + Low + Close) / 3.
6. What’s the difference between short- and long-term indicators?
Short-term focuses on 20-day trends, while long-term analyzes 100–200 days.
👉 Discover how Barchart Opinions can enhance your trading strategy with data-driven insights.
👉 Learn more about optimizing cryptocurrency trades using technical indicators.
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