The All Top Stock Picks page showcases the top stocks found by Barchart's Opinions. Available only with a Premier Membership, the Top Stock Picks are the ones that generated a new trading signal at the end-of-day which represents the best opportunity for entering a trade based on the 5-Year performance of the trading signal.
Top Stock Picks are presented as trading ideas for stocks that are just entering a new position for a popular trading strategy that you may want to watch. Each strategy looks at where a symbol's end-of-day price falls in relationship to the typical interpretation of the strategy, along with the symbol's historical price data. If the strategy issues a new Buy or Sell signal, the symbol becomes "eligible" for the Top Stock Picks page.
Each night after market close, the Top Stock Picks are generated based on stocks that have one of the thirteen short, medium, or long-term technical indicators entering a new buy or sell trading signal. Only stocks that have a positive 5-Year Signal Gain, AND those where the signal/action have a 30% or greater "Win%" will be included on the Top Trade Picks page. Win% is defined as the historical percentage of closed winning trades for the Signal Name / Action and is used to highlight the historical effectiveness of the strategy over time. Additionally, the 20-Day Historical Volatility for the symbol must be less than 100%. This filter is applied to eliminate stocks that have short-term price spikes. The symbol's last price must also be greater than $2.00, and the 20-day average volume must be greater than 10,000.
To understand the Top Stock Picks, you must first understand the concept behind the Barchart Opinion and the Trading Strategies. Barchart Opinions show traders what a variety of popular trading strategies are suggesting in terms of going long or short the market. The Opinions takes up to 5 years' worth of each symbol's historical data and runs the prices through thirteen different technical indicators. After each calculation, Opinion assigns a buy, sell or hold value for each study, depending on where the price lies in reference to the common interpretation of the study.
For example, if the end-of-day price for a stock is above the 50-Day Moving Average, the general interpretation of this trading strategy is that the stock in in an upward trend or a "buy". The stock's 50-Day Moving Average Opinion, then, will generate a "Buy" signal. All Opinions for a symbol can be found on the Barchart Opinion page.
The thirteen technical indicators used by the Top Picks include short, medium, and long-term strategies:
- Short Term: 20-Day Moving Average, 20-50 Day MACD, 20-100 Day MACD, 20-200 Day MACD
- Medium Term: 50-Day Moving Average, 50-100 Day MACD, 50-150 Day MACD, 50-200 Day MACD
- Long Term: 100-Day Moving Average, 150 Day Moving Average, 200-Day Moving Average, 100-200 Day MACD
Barchart's Top Picks and Trading Strategies takes this concept one step further. Hypothetically, if a stock's 50-Day Moving Average moves to a New Buy signal, it's price would continue to rise until the signal changes to a New Sell. Our Trading Strategies are designed to calculate hypothetical trading results from each of the 13 different technical indicators. If a new trade were executed when the indicator started a new Buy, and a closing trade was made it reached a new Sell, a profit might be made. Trading Strategies also can be profitable when you open a trade based on a new Sell signal, then close the trade when the signal reaches a new Buy. All Trading Strategies for a symbol can be found on the symbol's Trading Strategies page.
What's Included
Only stocks that have a positive 5-Year Signal Gain, AND those where the signal/action have a 30% or greater "Win%" will be included on the Top Stock Picks page. Win% is defined as the historical percentage of closed winning trades for the Signal Name / Action. The Win% is used to highlight the historical effectiveness of the strategy over time.
You may also use the check box at the top of the page to "Show Trades Where Signal Gain is less than Market Gain".
The Top Stock Picks are not a recommendation to buy or sell a security. Your decision whether or not to make a purchase should be based on your own due diligence and not on any representation we make to you.
THESE RESULTS ARE BASED ON SIMULATED OR HYPOTHETICAL PERFORMANCE RESULTS THAT HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE THE RESULTS SHOWN IN AN ACTUAL PERFORMANCE RECORD, THESE RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, BECAUSE THESE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THESE RESULTS MAY HAVE UNDER-OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED OR HYPOTHETICAL TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THESE BEING SHOWN.
