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Frequently Asked Questions
The Chaikin Power Gauge™ rating is the centerpiece of the Chaikin Analytics system. It combines 20 factors into a simple, reliable rating of a stock’s potential performance relative to the market over the next six months, and is validated by 10 years of independent backtesting. The Power Gauge is also supported by the successful performance of the NASDAQ Chaikin enhanced alpha indexes, which exceeded their benchmarks by over 45% in the first year.
Chaikin Analytics provides 6 pairs of Buy/Sell Signals to identify stocks with important patterns of trading activity. While Chaikin Power Gauge ratings are designed to help you decide which stocks to buy, Signals help you decide when. We recommend using Signals in conjunction with Power Gauge, Technical, and Industry Ratings to arrive at a fully informed Buy/Sell decision. Signals are calculated daily for all U.S. equities.
Certain stocks with a Power Gauge rating of “Neutral” may also display an indication of “Positive Potential” and “Negative Potential”. Here’s how it happens:
- The Power Gauge calculation combines 20 weighted factors to arrive at a ‘raw’ rating for a stock, ranging from Very Bearish to Very Bullish.
- However, if the stock is in a very strong positive price/volume trend, a “raw” Bearish or Very Bearish rating will be modified to Neutral, with a “Positive Potential” indicator.
- Conversely, if a stock is in a very negative price/volume trend, a “raw” Bullish or Very Bullish rating will be modified to “Neutral” with a “Negative Potential” indicator.
In these cases, assuming the underlying Power Gauge factors remain consistent, once trending activity for the stock decelerates, the underlying Bearish or Bullish rating should take effect.
The Power Gauge Rating has been tested in real-world conditions and proven successful at identifying stocks likely to out- or underperform the market over the next six months.
In April 2014, Chaikin Analytics partnered with NASDAQ to overlay Chaikin’s “Enhanced Alpha” strategies based on the Chaikin Power Gauge model, on three popular NASDAQ Indexes. The first-year performance results significantly exceeded their benchmarks in every category, by over 45%.
In addition, it was independently back-tested on ten years of data by stock screening expert Marc Gerstein, who spent twenty years at Value Line Investment Survey as assistant research director, was director of investment Research at Reuters.com and has authored two books on stock screening. Gerstein is presently editor of the Forbes Low-Priced Stock Report. He writes: “The Chaikin Power Gauge Rating does an excellent job identifying stocks that have the potential for strong intermediate-term price performance because it was designed to do just that. Believe it or not, that’s unusual!”
Chaikin Analytics is a more robust version of our investor tools and is packed full of information required by both financial professionals and experienced individual investors who require in-depth knowledge of fundamental and technical information on stocks and ETFs to help make informed investment decisions.
The workstation allows you to manage up to 500 custom watchlists. Indicators provided on Analytics charts are enhanced from those on the Chaikin PowerPulse subscriptions, and actionable trading Signals are provided, which are not available in Chaikin PowerPulse. Chaikin Analytics also includes flip charts with proprietary Chaikin indicators, which are not available on Chaikin PowerPulse, allowing users to flip through any list of stocks, ETFs …. and more.
The user experience allows a true top-down or bottom-up research process, allowing you to swipe thru a large list of stocks or ETFs with ease.
Additionally, Chaikin Power Gauge Reports are instantly available on any stock inside Chaikin Analytics, and a Portfolio Health Check is available instantly on any list.