How to use TrendSpider

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Introduction

TrendSpider is intended to used as a type of on-demand trading assistant or chart analyst. It automatically and instantly performs analysis on multiple timeframes using mathematical precision so you don't have to.

Disclaimer

Please note that this system depends on third party data which is not guaranteed to be accurate, is offered 'as-is' without any guarantees or warranties of any kind, and is only intended for educational, entertainment, and informational purposes. NOT INVESTMENT OR TRADING ADVICE. Trading and investing can involve significant risk of losing your principal. Invest wisely.

Intended Use

We recommend augmenting your existing trading system with TrendSpider. Use it alongside your normal trading software. To get the best value from TrendSpider, we recommend you upload your watch list, familiarize yourself with the various technical analysis capabilities described here, and then flip through your watch list symbol by symbol (use your keyboard up and down keys.) You'll start to see patterns you didn't see before. Here are a few different use cases for you to consider:

  1. Scanning through a watch list to quickly to spot potential technical trade setups
  2. Validating trading plans you come across online, in trading rooms, and find on your own
  3. Spotting hard-to-see or otherwise invisible trendlines and support zones from other timeframes
  4. Deciding on entry, stop loss and exit price levels when formulating a trade plan

For more information on technical analysis, please see Automated Technical Analysis Documentation. When you see a trendline or indicator that you like, just right click on it. When you do, you will have the option to create an alert on it.

  1. Alerts work on the timeframe they were created on. An alert created on the 5 minute chart, will go off when a 5 minute candlestick that matches your criteria closes.
  2. Alerts are sent in real time via SMS, e-mail or both. You can configure your alert settings under Account & Settings in the user drop down menu (top right corner.)
  3. Alerts are dynamic. They will move with the indicator or trendline they were set on. If the indicator bounces around, so will the alert. You will never have to adjust an alert once you create it.
  4. Alerts wait for complete candlesticks to close in order to avoid faking you out like price hit alerts tend to in most trading programs.
  5. Alerts are set for pre-defined periods of time. On trial accounts, alerts can only last for 1 trading day. On paid accounts, they can last up to a month.

For more information about alerts, please see Dynamic Alerts Documentation.

Data Types and Account Plans

TrendSpider offers a range of pricing plans and packages designed to make the platform accessible to all traders. Each plan has its own market data feed settings, which are indicated below.

  1. Freemium Plans: Access to US Stocks and Major Cryptocurrency Pairs. All dta is delayed by 10-15 minutes.
  2. Elite Plans: Access to US Stocks, ETFs, Forex Pairs, Futures Contracts and Cryptcurrencies. All data is real time, except Futures data which is delayed due to exchange regulations. For real time Futures data, please contact TrendSpider Support. Note: additional fees and Exchange approval required for real time Futures data access.
  3. Pro Plans: Access to US Stocks, ETFs and Cryptocurrencies. All data is real time.

Principals and Concepts

The three core principles of technical analysis / technical trading are:

  1. The market discounts everything.
  2. Price moves in trends.
  3. History tends to repeat itself.

We agree with this philosophy wholeheartedly, but add to it the following:

  1. Trends are hard to spot accurately with a human eye
  2. Multiple trends exist simultaneously on multiple timeframes
  3. The sum of these trends is more predictive of future price action than anyone trend is on its own

To this end, TrendSpider attempts to identify meaningful trendlines and price levels using a series of intelligent algorithms. These algorithms are designed to identify every possible trendline on a chart, including ones that a human chart analyst might miss, and then distill them down to the most meaningful and likely ones. Through trendlines, we identify broader trends, support and resistance zones, Fibonacci levels, and other meaningful price levels to highlight to you.


How It Works

When you input a symbol into TrendSpider, it will automatically download price data from the following timeframes simultaneously: 5, 10, 15, 30 and 60 minutes, daily, and weekly. The system will then automatically process each chart simultaneously to identify all possible trendlines, Fibonacci levels, etc. are on it. The data is then filtered through a series of user customizable mathematical formulas to filter out irrelevant or weak points and the remaining chart annotations are displayed to the user. The automated process is designed to mostly replace or augment the manual technical analysis process so that traders can scan charts for setups quicker and with more accuracy.

Technical Analysis Features

Trendlines

Trendlines are drawn by connecting two points and then expanding the line to the right. Once identified, the two primary points (A and B) of each trendline are never changed. Trendlines will remain visible until they become irrelevant (the price action moves too far away from the trendline.) Solid trendlines are from the primary timeframe of the chart. Each timeframe trendline will feature points A and B marked by circles on the lines to indicate how it was identified. These are the shorter-term trendlines on the chart, compared to the dashed lines discussed below. Dashed (see Confluence) trendlines are plotted on a shorter-term timeframe chart from a longer-term timeframe chart, and provide a unique view of the bigger picture. These trendlines are highly predictive, and we recommend experimenting with this feature to find a style that you work best with.

Confluence lines.png

This daily v. weekly chart of AAPL is very interesting. You can see how the short-term support trendline (pink) and the long term resistance trendline (confluence, dashed green) interact. When the price wedges past this and moves above the dashed trendline, that is a strong indication that the price has "legged" up. This provides a potential trade setup, with confirmation, and a 'stop loss' level. Right click on any trendline to remove it or lock it for all charts and timeframes in the future.

Island Sentiment Detection

This is a powerful feature that detects gaps in price action due to new information being priced into the market. We believe that when there is no news, technicals rein supreme. But when there is news, asset prices can move wildly while the market figures out what range to price it in and what direction it wants to move after the initial revaluation. For example, when there has been a meaningful news event, such as an earnings announcement, the price tends to move dramatically into a new ‘plane of existence’. During this movement, the buyer and seller mix changes, as orders that have been sitting there providing support or resistance suddenly get filled. The entire dynamic of the trading changes, and along with it the technical patterns that are in play. Moreso, since most of these news events occur before open or after close of the market, the repricing move often occurs after hours. Island analysis uses a mathematical factor to identify this type of change in an asset. Once identified, this information is utilized in a few ways by TrendSpider. The system will not draw trendlines across price gaps, and islands are displayed alongside the bottom of the chart as colored bars.

Islands.png

Conviction

Control how ‘sure’ TrendSpider is about the analysis it shows you by changing the Conviction variable. High conviction means TrendSpider will only display the top 1% of trendlines to the user. No conviction means TrendSpider will display all trendlines, regardless of their relative strength to each other. For more information on how strength is calculated, please see Advanced -> Trend Formulas. The below screenshot shows a chart with conviction = none, thus showing all trendlines.

Conviction chart.png

Multi-timeframe analysis

When you input a symbol into TrendSpider, it will automatically download and analyze the charts for the symbol on the following timeframes: 5 min, 10 min, 15 min, 30 min, 60 min, 1 hour, 1 day, 1 week, and for each timeframe the system views 320 candlesticks of data. This analysis is performed simultaneously by the system.

Confluence, our most popular feature and arguably our most powerful feature, allows you to plot the trendlines, indicators, and fibonacci retracements from one timeframe on the chart of another. For example:

  1. Plot the trendlines from the Daily timeframe on the 60 minute chart.
  2. Plot the auto-fibonacci levels from the 30 minute timeframe on the 5 minute chart.
  3. Plot your weekly moving average indicators on your daily chart.

This capability allows the user to see trends that other traders will almost certainly miss without extensive manual due diligence into each timeframes chart. It is our thesis that since most traders can only pay attention to one, maybe two, timeframes at a time, and since they are trying to analyze charts and trade at the same time, confluence is an opportunity at gaining a significant edge in trendline analysis.

Confluence chart big.png

Support / Resistance

TrendSpider attempts to approximate key support and resistance zones by taking the sum of all detected trendlines and an advanced heatmap generation algorithm we have developed. There are two ways to visualize support and resistance areas: Depth and Standard. We recommend Depth mode for a clearer picture of the strength of a price level.

Sr chart big.png

Automatic Fibonacci

When Leonardo Fibonacci discovered the Fibonacci sequence in 1202 AD, he had no idea how far and wide the impact of his discovery would be felt around the world. Today, traders everywhere use Fibonacci retracements and extensions to measure the most likely next price move, calculate their entry and exit price targets, and more. But just because something is widely used doesn’t mean that it is being correctly used. In order for Fibonacci levels to be meaningful, the first two points from which they are drawn have to make sense - and that’s often tough in a zig-zag market. TrendSpider will automatically calculate the most likely to be meaningful Fibonacci connection points on each timeframe and automatically draw a retracement, providing you with the most likely levels for the next move or few moves. Since you can plot longer-timeframe Fibonacci levels on a shorter-timeframe chart, you can often get a much better sense for the next price more than traders who focus on one timeframe alone. This is one of our most popular and powerful features, especially with crypto and futures traders.

Autofib chart big.png

Base Indicators

Plot any of your favorite pre-configured moving averages, bollinger bands, and other indicators on the charts, and enable Confluence mode on them so you can plot a 200 day moving average on a 5-minute chart, for example.

Base indicators chart big.png

Breakout Detection

TrendSpider will automatically detect trendline breakouts and highlight them on the chart for you. Breakouts require that one full candlestick close through a trendline on the timeframe of the chart you are looking at. For example, on the 5 minute chart, a 5 minute candlestick must close on the opposite side of the trendline from where it opened in order for a breakout to be detected. When identified, breakouts appear as circles on trendlines. Red circles indicate a breakdown, where stock opened above the line and closed below it. Green indicates a breakout, where price opens below and closes above.

BreakoutDetection.png

Candlestick Formation Detection

TrendSpider can automatically detect candlestick formations on any timeframe chart. Candlestick formations come in two forms: single candlestick formations, and multi-candlestick patterns. To select which candlestick formations or patterns are identified, click the drop down menu next to the on/off switch for candlestick recognition. Each candlestick pattern listed includes a count of how many candlesticks next to it, for example: 3cdl means 3 candlesticks are involved in that pattern. Patterns that involve more candlesticks are rarer than those that only involve one.

CandleStickConfig.png

Once you configure which candlestick formations and patterns you wish to detect, and enable automated detection, the system will instantly identify and highlight any relevant information on all open charts. When a candlestick formation is identified on a chart, it is automatically highlighted in light blue, and a label is created. Move your mouse over the label to expand it and reveal the full name of the pattern.

CandleStickDetect.png

Chart Analysis Time and Analysis Freezing

TrendSpider will tell you the exact point in time when analysis on any chart was completed by drawing a vertical line on the chart. A yellow line means analysis is froozen as of the moment the line was drawn, while a red line indicates that analysis is not frozen, and was last udpated when the chart was refreshed by the user. When you see a red line, that means that the analysis will be updated each time you open that symbol.

AnalysisLine.png

To force refresh of analysis, simply move your mouse to the bottom of the line. This will expand the analysis time stamp, and a link to refresh analysis. When you refresh analysis, it locks the trends at that point in time until you refresh it again, or the analysis becomes stale by being pushed out of range by new price action. If analysis becomes stale, then the line will turn red and the chart will automatically go into live mode at this time.

AnalysisTime.png

Dynamic Price Alerts

Dynamic Price Alerts are price alerts, on steroids. Unlike typical brokerage software price alerts, Dynamic Alerts are attached to Trendlines and Indicators, not fixed price levels. They never require re-adjustment, and simply follow the wave or slope of the line you selected until price interaction occurs.

Configure Notifications

Before you can use alerts, you have to configure how the system notifies you when an interaction occurs. To do this, click on your name on the top right corner, and then click on Account & Settings. The first panel is called Notifications, and here you can configure how to notify you of price interactions, and when to stay silent. These settings are all on Eastern Standard Time.

AlertSMS.png

Create New Alerts

To create a new alert, first right click on any trendline or indicator in the system and click on Create Alert At This Trend or Create Alert At This Line (if you are creating an alert on an indicator.)

CreateAlert.png

Once you select a line to monitor, a popup window will appear to allow you to configure the alert on it. Note: Alerts are based on closed candlesticks, NOT raw price touches. Thus, the timef rame of the alert depends on the timeframe of the chart the alert was created on. If you create an alert on the Hourly chart, it will NOT fire until an hourly candlestick closes completely AND matches the alert configuration. This means that alerts will be tied to a specific timeframe and depending on how quickly you wish to be alerted, you should select a smaller or longer timeframe to create the alert on.

AlertConfig.png

Manage Existing Alerts

All active, expired or previously triggered alerts are listed on the alerts side panel. You can expand this side panel to modify, delete, or pull up any alert. When you click on items in this panel, it will open the chart from which the alert was created.

AlertPanel.png

Types of Alerts and Firing Methodology

TrendSpider offers a number of different types of alerts. Here is a list and their distinctions. Note: all alerts fire based on the timeframe that they were created on. This means if you create an alert on the 15 minute chart, it will not fire until a 15 minute candlestick has completely closed. Please keep this in mind when creating alerts.

  1. Break Through: Break through alerts fire when a complete candlestick breaks through a trendline or indicator. This means the open and close price are on opposing ends of the annotation.
  2. Touch: Touch alerts fire when the candlestick open or close price, or the wicks, touch the candlestick but do not break through it or bounce off it. This is often used to detect consolidations.
  3. Bounce: Bounce alerts fire when the candlestick touches the chart annotation, but then pulls back away from it.

Interface and Layout

When you login for the first time, you will see the default chart overview with three timeframes on three charts. Each chart displays two timeframes, for example, the top chart displays Daily bars and trendlines (solid) but also displays trendlines from the Weekly chart (dashed.) You can control both timeframes per chart individually, as well as which timeframe is accented. This gives you an incredible way to compare short-term price action against long-term trendlines.


InterfaceTourR.png


  1. Symbol search and selection box: Start typing in this box and TrendSpider will search for matching symbols. You can either hit enter or click on a matching symbol to select it. Start typing from anywhere in the interface to activate the symbol search box.
  2. Favorite symbol flag: This button will tell TrendSpider to add the symbol to a special watch list called Favorites and to turn the star yellow every time you revisit a favorite symbol.
  3. Refresh data and analysis button: This button will refresh all the chart data and analysis.
  4. Layout switcher: This switcher will allow you to change how many charts are visible at one time in the interface, from 1 to 4, and some various layouts.
  5. Toggle Tooltips: Show the details of how and why a trendline was formed by hovering the mouse over one of the first two points on the line (demarcated with circles)
  6. Toggle Volume: Disable or enable a standard volume underlay chart
  7. Toggle Island Sentiment Detection: Detects when there is a large price gap in price action and indicates where continuous price action has occurred and stopped. TrendSpider does not draw trendlines that connect two points separated by a large price gap.
  8. Toggle Confluence: Confluence is TrendSpider’s most popular and powerful feature. It is designed to display trends from one timeframe on the chart for another timeframe, and it works across all of TrendSpider’s technical analysis capabilities.
  9. Configure and toggle standard indicators: Turn on and off the standard indicators you configured in the system options or the system defaults if you have not configured custom indicators.
  10. Toggle Automatic Fibonacci: Enable and disable automatic fibonacci retracements. If enabled, TrendSpider will automatically determine the high and low point, and calculate the fibonacci levels between them. The ability to leverage fibonacci alongside confluence is a powerful combination.
  11. Conviction: Allows you to control how much certainty the system is about trends, Fibonacci levels, and other levels that it shows yu. We recommend setting this to high at all times so only the strongest, most meaningful trends are displayed. If you set this to none, then all possible trends will be displayed on all timeframes.
  12. Support/Resistance: Select a support/resistance visualization and turn it on and off. Will be visible on all charts, but not visible in shareable screenshots. This feature is experimental.
  13. Notes: Store a quick note about any symbol for future reference
  14. Watch lists: A powerful and easy-to-use watchlist system that allows you to easily switch between symbols by using your keyboard Up and Down keys.
  15. Options: Configure how TrendSpider works. See Advanced Functionality below.
  16. Account: Change your billing preferences and settings. Manage your subscription.
  17. Log Out: End your TrendSpider session on this device.
  18. Chart Type: Choose from Candlesticks, Hallow Candlesticks or Bars
  19. Timeframe and Confluence Timeframe: Choose which two timeframes you wish to compare. Only enabled if Confluence is enabled in the toolbar.
  20. Chart Accent: Accented trendlines and data is brighter than non-accented. Simply a visual preference.
  21. Confluence Trendline (dashed): Dashed trendlines are from another timeframe
  22. Time frame Trendline (solid): Solid trendlines are from this timeframe
  23. Automated Fibonacci Levels: Automated Fibs from THIS timeframe (because they are solid, Confluence fibs a different chart would be dashed.)
  24. Share Chart Tool: Generate a sharable link to this chart.
  25. Terms of Service and Support: Get help, read the legal terms and disclaimer.

Use Cases

Problem: I keep buying too late and selling too early even when i see the price move coming

Leverage TrendSpider's trendline detection across timeframes to find better entry and exit opportunities, and remember to be patient with your trades. Don't rush in, don't lear fear of missing out (FOMO) cloud your judgement. Wait for the trade to fit your plan, don't change your plan to fit the trade.

Problem: I keep re-drawing my trendlines because I am wrong

Stop drawing trendlines by hand, at least initially. Instead, rely on an automated chart pattern recognition platform like TrendSpider to draw your initial trendlines for you. Software is not subject to the same bias that humans are, and doing it this way will give you a more honest view of the chart than eyeballing it by hand.

Problem: I don’t trust my own technical analysis work because I am worried I am just seeing what I want to see

We believe that you should always do your own TA work, but you should take into account a variety of perspectives and factors. Automated analysis can help you gain confidence in your own analysis, or conversely, help you avoid mistakes. Leverage TrendSpider alongside your existing platform for best results.

Advanced Functionality

Analysis Settings

Configure the core base parameters used by TrendSpider to detect and identify trendlines on charts. Please see the notes and warnings on this screen before making changes.

Analysis options.png

Trendline Settings

Customize the mathematical formulas used to determine the strength of the trendlines detected by TrendSpider. The below values represent the potential variables in any trend ranking formula.

Trend formulas.png

Please see 'Trend formula reference' on the formula editor itself for details as to what variables are available. A copy is provided below.

  • length: Number of bars covered by the line
  • seriesLength: Total number of bars in the series
  • priceDev25: 25th quantile of deviation% between trendline and (H+L)/2. From 0 to 1.
  • priceDev50: 50th quantile (mean value) of deviation% between trendline and (H+L)/2
  • priceDev75: 75th quantile of deviation% between trendline and (H+L)/2

hits: Number of Highs or Lows touching the line

Hit.png

points: HighestHighs or LowestLows, calculated at your given window size

Point.png

points2x: HighestHighs or LowestLows, calculated at your given window size * 2. Every "point2x" is also "point"

Point2x.png

bounceUp: A case when line is touched by High of a bar, but not by its adjacent bar's Highs.

Bounce up.png

peaksUp: A case when line is touched by High of a long bar. 'Long' means that difference between this bar's high and its adjacent bars' highs is greater than (1.5 * ATR14). Every peakUp is also a bounceUp

Peak up.png

bounceDown: A case when line is touched by Low of a bar, but not by its adjacent bar's Lows.

Bounce down.png

peaksDown: A case when line is touched by Low of a long bar. 'Long' means that difference between this bar's high and its adjacent bars' highs is greater than (1.5 * ATR14). Every peakDown is also a bounceDown

Peak down.png

violations: Number of bars which actually cross the line

Violation.png

Indicator Configuration

Add and remove indicators and configure how they appear on your charts. Each indicator you add here will be available in confluence mode.

Indicator options.png