Chip Anderson

Single Rogue Trader Charged with Causing "Flash Crash" of 2010

It's amazing to me that one person could cause such behavior in the market.  While his behavior appears to be criminal, the system(s) that allowed this behavior are also to blame.

- Chip

Announcing the "Perfect Head & Shoulders Example" Contest!

Greg Morris and I are on the hunt and we are hunting rare, exotic game that is elusive, difficult to spot and even harder to capture - chart patterns.   Not just any chart patterns either.  Not your run of the mill Double Top or Rounding Bottom pattern for us.  No sir.  We are hunting the legendary "Perfect" Head and Shoulders Reversal.  Now, before you scoff, note that I said "Perfect."   By "Perfect" I mean "Edwards & Magee" perfect.   The gold standard of H&S reversals.  Pure not only in its symmetry and in its predictive outcome, but also - and this is super important - in its VOLUME pattern.  Volume should be highest at the left shoulder and diminish throughout the pattern with smaller peaks at the head and right shoulder.

I'm talking about a Head & Shoulders reversal that meet ALL the criteria set out in our ChartSchool article and that actually looks BETTER than the examples we have in that article.

Do you think you can help us in our hunt - our sacred quest?  Terrific!  Greg and I are actually sick of hunting and have decided to turn this into a beauty contest instead.  Here's how it works:

1.) Find examples of the "Perfect" H&S pattern on daily and/or weekly charts.  Make sure it meets all of the criteria in our ChartSchool article.  (Sorry, $THHS doesn't count.)

2.) Pick the best 2 examples you can find and email the "Linkable Version" links for their charts to "contest at"

3.) In one week, Greg and I will review all of the entries and select the one that we think is the most "Perfect".  If we select the pattern you submitted, you will receive THREE FREE MONTHS OF SERVICE!  (dun, dun, DUN!)

Let the hunting begin!

New Built-In ChartStyles Featuring Our Top Contributors' Favorite Settings

After 13+ years, we've finally gotten around to updating our Predefined ChartStyles.  These are the styles that members see at the bottom of the ChartStyles dropdown on the SharpCharts workbench.  They are always available regardless of what other styles you've stored in your account.  We use to have 5 styles that were all rather limited in their look and capabilities.  Now we have ten updated styles that you can use to quickly analyze stocks using whichever style you prefer.  Below are all of the new styles using Ford (F) as the example stock.

Continue reading "New Built-In ChartStyles Featuring Our Top Contributors' Favorite Settings" »

Don't Blame Us - $DFX, $MXZ, $RXS, $SHX, $XCM, $XEX Dropped By Nasdaq

Nasdaq recently dropped six popular industry indexes for no reason.  We had no choice but to drop them from our system as well.  We apologize for whatever inconvenience that caused.

Depressingly, this kind of thing is becoming more and more common.  

Here's the announcement from Nasdaq:

Do you see any actual reason given?  Neither do I.  And here's the kicker: Later this year - as they always do - Nasdaq will send me a letter telling me that they have "improved" things soooo much, that they need to raise prices... yet again... like they do every year.  And then a little while after that, they will announce yet another dividend to go with more record profits.  Here's their chart:

Yeah, that looks like a company that needs to cut back on services.

It really must be nice to have a monopoly.

- Chip 

More Control for "Volume by Price" Overlays

We've just added a parameter to our "Volume by Price" overlay - it didn't have any before now - that allows you to set the number of horizontal histogram bars on the overlay.

In case you haven't used it before, the Volume by Price overlay is a collection of horizontal histogram bars that show you how much volume has accumulated at different price levels on your chart.  It is great for finding and confirming support/resistance zones.

Here's a traditional, "old-school" Volume by Price chart:

(Yes, you can click on the chart to see a live version.)

Note that there are 12 histogram bars stacked vertically on the chart.  If you scan over the to right edge, you'll see that the upper most bar happened around the 310-320 area - hard to be more precise with this view.

Now, here's an example with 24 histogram bars:

Notice how the upper-most peak has been narrowed down to the 315-318 area.

And, for the crazies out there, here's one with 100 histogram bars:

Definitely not recommended but... what the heck?  Go nuts.

- Chip

Investors Intelligence Sentiment Data No Longer Available

Investors Intelligence has requested that we remove their weekly sentiment data from our website and we will comply with their request later this weekend.  The two ticker symbols involved - !IIBULL and !IIBEAR - will no longer be available after that time.  Any saved charts that use either of those symbols as their primary symbol will be removed from the website.  We apologize for whatever inconvenience this change causes.

- Chip

2014 Accomplishments and 2015 Goals

Happy New Year everybody!

In case you missed them, I wrote two important end-of-the-year articles for ChartWatchers recently.  Here are the links:

Why a Membership is More Valuable in 2014 Than It Has Ever Been
which talks about all the things we added to the website in 2014,


Looking Forward to 2015 
which talks about things we hope to add to the website in 2015.

- Chip


Finally!  It's only been like - what - 15 years since we moved into this office!  Definitely l-o-n-g overdue (which is actually mostly my fault).

- Chip

Check Out FinGraphs for a New Take on an Old Approach

Today I am pleased to welcome Jean-Francois Owczarczak of to the ranks of our "Top Advisors Corner" commentators.  Jean-Francois and I have met at the previous two IFTA conferences and over that span of time, he has told me a remarkable tale.  His father, Edouard, has been advising bankers in Switzerland since the mid-1960s using purely a technical approach to the markets.  In the early days, since there were no computers and certainly no Internet, Edouard would go from bank to bank carrying his hand-drawn charts in his briefcase(!).  In 1969, Edouard founded his own management company in which his is still very active.  In addition, his sons Jean-Francois and Andre have now joined him and managed to being Edouard's tried and true approach into the 21st century using some unique visualization techniques.

Continue reading "Check Out FinGraphs for a New Take on an Old Approach" »

"Dancing with the Trend" - A New Blog About Market Breadth by Greg Morris

Today, I'm happy to announce the return of Greg Morris to's writing team.  Greg has authored many popular books on Technical Analysis over the years including "Candlestick Charting Explained" and his latest book, "Investing with the Trend."  Earlier this year, Greg told me that he wanted to update his previous book "The Complete Guide to Market Breadth Indicators" - an idea that I fully supported.  We then got to talking about some of the challenges of writing and promoting books these days.  In case you haven't noticed, the financial book business has changed dramatically over the past decade and Greg was looking at other options for publishing his updated book.  Greg was also very excited about our new "ChartPack" feature which allows book authors to provide their readers with live versions of all the charts from their books.

As Greg and I talked more, we came up with a plan for Greg to write his new book "slowly" - as a collection of blog articles initially published on  The process would take some time but people could read parts of the book much sooner than they normally would in the traditional publishing model.  Once all the parts of the book were published on the website, Greg would then make the combined book available in ebook and online form.  This "slow publishing" model really appealed to Greg and so he and I have been working hard to make it a reality.  This project was in fact one of the main reasons we recently partnered with Pinnacle Data - a partnership that will provide everyone with greatly improved breadth data.

So today we are taking the next step - we are launching Greg's new blog called "Dancing with the Trend."  In his first article, Greg talks about the components of market breadth data - what are they called, where do they come from and how are they used.  This educational article showcases Greg's readable writing style and his passion for teaching.  You can expect many, many more articles along these lines in the coming weeks and months as Greg continues this "slow publishing" process.  I'm confident this experiment will end up being a big treat for everyone.  Be sure to read Greg's first article and then add a comment to the bottom with your thoughts on this project.

Welcome aboard Greg!
- Chip