MetaStock

MetaStock is a proprietary computer program originally released by Computer

Asset Management in 1985. It is used for charting and technical
analysis of stock (and other asset) prices.[1][2] It has both real-time and end-ofday versions. MetaStock is a product of Innovative Market Analysis.
Early History[edit]
In 1982 Steve Achelis started a company named Computer Asset Management to
develop financial and technical analysis software for personal computers. Computer
Asset Management was renamed Equis International in 1989. Achelis first software
application, written for the Apple II+, was The Financial Package which calculated
various financial planning metrics. The Market Mood Monitor was released in 1984
and was eventually renamed The Technician. The Technician, written for the IBM PC,
helped investors analyze and chart broad market conditions using sentiment,
momentum, and monetary indicators. MetaStock 1.0 was released in 1986. Both
MetaStock and The Technician received PC Magazines Editors Choice award in April
1986.
While The Technician analyzed broad market conditions, MetaStock analyzed
individual securities (stocks, futures, mutual funds, etc.). In response to the
increasing demand for real-time analysis of prices, MetaStock RT was released in
July 1992. MetaStock RT received live, real-time quotes from Data Broadcastings
Signal data feed. In 1995, MetaStock 5.0 was released for the Microsoft Windows 3.1
operating system. Later that year, MetaStock added support for the Reuters
DataLink end-of-day data feed. This relationship with Reuters led to Reuters
purchasing Equis International and its MetaStock software in 1996. In 1998,
MetaStock was released for the Reuters Quotron data feed and in 2001 for
the Reuters 3000 Xtra electronic trading platform.[3][4] In June 2013, Thomson
Reuters sold MetaStock to Innovative Market Analysis.
Versions[edit]

Major Releases

Year
Released

Operating System

MetaStock 1.0

1985

DOS

MetaStock 2.0

1987

DOS

MetaStock 3.0

1989

DOS

MetaStock 4.0/4.5 RT

1992

DOS

MetaStock 5.0

1995

Windows 3.1

MetaStock 6.0

1996

Windows95/NT

MetaStock 6.5

1997

Windows95/NT

MetaStock 6.5 for Quotron

1998

Windows95/NT

MetaStock 6.5 for Reuters Terminal

1998

Windows95/98/NT

MetaStock 7.0

1998

Windows95/98/NT

Reuters MetaStock Pro 7.1

2001

Windows95/98/NT/2000

MetaStock 8.0

2002

Windows 2000/XP

MetaStock 9.0

2004

Windows 2000/XP

MetaStock 10.0

2006

XP

MetaStock 10.1

2007

XP/Vista

MetaStock 11.0

2008

Windows XP/Vista/7

MetaStock 12.0

2012

Windows XP/Vista/7/8

MetaStock 13.0

2013

Windows XP/Vista/7/8

MetaStock 14.0

2015

Windows 7/8

Features[edit]
The MetaStock software package includes charting functionality in various styles,
250 prebuilt technical indicators, scanning, filtering backtesting, line study drawing,
forecasting, automated analysis, and custom indicator creation. [6]
Charting[edit]
MetaStock includes nine core chart styles: bars, line, candlesticks, point & figure,
kagi, renko, three-line break, equivolume and candlevolume. All charts in MetaStock
can be customized with linestyles, colors, indicators, text, symbols, templates, and
alerts.
Up to 100 charts can be displayed simultaneously. Charts can be resized and
moved. Each chart supports indicators and trendline-based studies that are overlaid
on the price bars or plotted in independent inner windows. Colors, fonts, and line
thickness can be adjusted to personal preferences. [7]

Pre-defined Indicators in MetaStock

Accumulation/Distrib
ution

Accumulatio
n
Swing Adaptive Aroon
Index

Adaptive
Average
Directional
Movement

Adaptive
Average
Directional
Movement

Adaptive
True Range

Average Adaptive
CCI

Adaptive
Adaptive Detrended Directional
Price Oscillator
Movement
+/- DI

Adaptive Inertia

Adaptive Mass Index

Adaptive
Intraday
Momentum
Index

Adaptive
Directional
Movement Index

Adaptive
Directional
Movement
Rating

Adaptive
Adaptive
Linear
Linear
Regression
Regression
Indicator
Slope

Adaptive
Adaptive
Adaptive Money
Mesa Sine
Moving
Flow Index
Wave
Average

Adaptive
Adaptive
Moving Moving
Average Simple
Average
Weighted

Adaptive
Bands

Adaptive
Adaptive Chaikin Chande
Money Flow
Momentum
Oscillator

Adaptive
Projection
Projection
Oscillator

Adaptive
Polarized
Effiency

Adaptive
Fractal Price
Oscillator

Adaptive QStick

Adaptive
Range
Indicator

Advance
Decline
Line

Adaptive
Ease
of
Movement

Adaptive
MACD

Adaptive
Moving
Average
Exponenti
al

Adaptive
Price Rateof-Change

Adaptive
Relative
Momentu
m Index

Adaptive
Adaptive
Relative Relative
Strength Index
Volatility
Index

Adaptive
Squared

r-

Adaptive TEMA

Adaptive
Time Series Adaptive TRIX
Forecast

Adaptive
Chaikin's

Adaptive
Volume
Oscillator

Volatility,

Arms Index
Aroon
(TRIN)

Binary Wave (5)

Bollinger
Bands

Cooper
1234
Pattern

Adaptive
Ultimate
Oscillator

Adaptive
Vertical
Horizontal
Filter

Average
True Range

Alpha

Beta

Bull Power Bull Power

Bull Power Bear
Bear Power Bear
Power 1
2
Power 3

CCI
(Commodity Chaikin A/D Chaikin
Channel Index)
Oscillator
Flow

Consolidation
Breakout

Adaptive
Standard
Error

Adaptive
Adaptive Wilder's
Williams' %
Smoothing
R

Andrews' Pitchfork

Chande Momentum Chandelier

Oscillator
Stops

Adaptive
Standard
Deviation

Money Chaikin
Volatility

Chande
Forecast
Oscillator

CMO Reversal

Commodity
Channel
Index (2)

Commodit
y Selection
Index

Coppock Curve

Correlation
Analysis

Cycle
Lines

Cycle Progression

Darvas Box

Dema

Demand
Index

Denvelope
s

Detrended
Oscillator

Directional
Movement
(5)

Donchian
Channels

Dynamic
Momentum
Index

Dynamic
Momentu
m Index 1

Ellipse

Envelope

Equidistan
t Channel
Line

Fibonacci Fans

Fibonacci
Retracemen
ts

Fibonacci
Time
Zones

Fourier Transform

Fractal
Trading
System 1

Fractal
Trading
System 2

Price

Ease of Movement

Exponential
Average

Elder Ray

Moving Fibonacci
Arcs

Fisher Transformation Forecast

Indicator
Oscillator

Gann Angles

Gann Fans

Gann Grids

Gann Line

Gann
Swing
Bands

Herrick Payoff Index

Horizontal
Line

Ichimoku Kinko

IntelliStops

Intraday
Momentu
m

Inverse
Fisher Klinger
Transform of RSI
Oscillator

Linear Regression

Linear
Regression
Lines

Linear
Regression
Slope

Long Sell Short Sale - MACD (2)

5 Day

MACD Histogram MACD

1
Histogram 2

Market
Facilitation

Index

McClellan Oscillator

McClellan
Summation
Index

Momentum

Moving
Moving
Money Flow Moving Average Average
- Average Index
Simple
Exponential Weighted

Moving Average
Time Series

Meisels
Overbought/Over
sold

Median
Price

Moving
Moving
Moving Average Average
Average
Ribbon
Triangular
Variable

Negative
Natenberg's Volatility
Volume
(Daily)
Index

Option Delta

Option
Expiration

Moving
Average Volume
Adjusted

Odds Probability On Balance Open

Cones
Volume
Interest

Option Gamma

Option Life

Option
Price

Pattern
Trading
System 1

Positive
Volume
Index

Option Theta

Option Vega Option Volatility

Parabolic
SAR

Percent Retracement

Percentage
Crossover
3%

Performance

Polarized
Fractal
Efficiency

Pring KST

Projection
Price Projection
Bands Channel
Oscillator

Price Oscillator

MESA Sine
Wave

Projection
Oscillator
1

r-squared

Raff
Regression
Channel

Rainbow
Band
Upper

Rainbow
Max

Rainbow Min

Rainbow
Oscillator

Random
Walk Index

Rectangle

Relative
Momentum Index

Relative
Relative
Strength
Performance
Index

Qstick

Quadrant
Lines

Rainbow Band Lower

Range Indicator

Relative
Index

Volatility Semi-Log
Trendline

Speed
Sine Wave 5-unit
Resistance
Standing
Lines

Spread

StochRSI

Stochastic
Momentum
Index

Stochastic
Oscillator

Squat Bar

Swing Index

Tema

The Force
Index

Time Series Forecast

Tirone
Levels

Trade
Index

Trendlines

Trendline
by Angle

TRIX

Turtle
Trader
Bands

Typical Price

Ultimate
Oscillator

Vertical
Horizontal
Filter

Vertical Line

Volatility
Breakout
(Chaikin)

Volatility
Indicators (3)

Volume

Volume
Oscillator

Standard Deviation

Standard
Error

Stochastic RSI

Volume

Volume
Change

Rate

of Weighted
Close

Wilder's
Smoothing

Williams'
A/D, %R

Zig Zag

Scanning and Filtering[edit]

The MetaStock Explorer allows traders to scan through thousands of securities using
trading criteria to find the ones that fit their specific strategy. Explorations are
written using the MetaStock Formula Language. Traders can base their explorations
off of the pre-built criteria included with MetaStock or they can use their own
criteria. For example, a pre-built scan is included that shows a report of securities
that are trading above their 200-day moving average. Another shows securities that
have triggered a buy signal based on the MACD indicator. Explorations can be linked
so that the filtered results of one exploration can subsequently be filtered by
another.[9]
Backtesting[edit]
The Enhanced System Tester allows traders to create, back-test, compare, and
optimize trading strategies before risking money in the markets. System tests are
written
using
an
extended
version
of
the
MetaStock
Formulas
Language. Backtesting answers the question, How much would I make or lose if I
traded this security or these securities using these buy and sell rules? Traders can
change and edit conditions such as entry, exit, stops, order sizes, and commissions
to make the simulation more realistic. The buy and sell conditions can be optimized
in order to show the best performing parameters. For example, by optimizing, a
trader can learn which moving average performed the best for IBM over the last five
years.[10]
Automated Chart Analysis[edit]
The Expert Advisor reveals the interpretive analysis of industry professionals
through alerts, commentary, symbols and trends. MetaStock allows for various
types of alerts; from simple price and volume to complex indicator triggers and
multiple conditions that show buy and sell signals. The expert commentary offered
by MetaStock shows how experts would assess the chart being viewed. For
example, a pre-built expert for MetaStock shows how Bollinger Bandswould be
interpreted according to John Bollingers rules. The expert automatically alerts the
user to special conditions using buy and sell arrows, text, audio, or video according
to the analysis criteria.[11]

Custom Indicators[edit]
The MetaStock indicator builder is a formula writing module with a wide array of
math and investing functions. Custom indicators are created by combining one or
more formulas written in the MetaStock Formula Language. This language is
somewhat similar to Microsoft Excel formulas. Custom indicators can be referenced
by system tests, explorations, and expert advisors with the fml() function. [12]
Formula Language[edit]
Custom indicators, system tests, explorations, and expert advisors are written using
the MetaStock Formula Language. Loosely patterned after the Microsoft Excel
formula language, the MetaStock Formula Language is tailored to the mathematics
of technical analysis. There are 267 functions. Formulas can contain up to 2,500
characters (1,024 in the System Tester).
A formula that computes the difference between a 39-day and 200-day simple
moving average is shown below:
mov(close, 39, simple) mov(close, 200, simple)
Formulas can also contain conditional statements using IF/THEN/ELSE as shown
below:
If(close > mov(close,200,exponential),1, -1)
This would read as if the close is greater than a 200-day exponential moving
average then plot a 1, else plot a -1. Formulas can use variables as shown below:
X:= 39; Y:=200; mov(close, X, simple) mov(close, Y, simple)
Formulas can prompt the user for input when plotted as follows: X:= Input(How
many periods for the moving average?, 10, 200, 40); Mov(close,X,simple)
In this example, the variable X can range from 10 to 200; it has a default value of
40. The value represented by the variable X is substituted in the moving average
formula.[13]
Forecasting[edit]
A new tool called The Forecaster was introduced with MetaStock version 13.0. This
tool uses statistical analysis and other methods to analyze past events in order to
forecast future price moves. This power tool is on par with the System Tester,

Explorer and Expert Advisor and is accessible from MetaStock's Power Console. The
primary mechanism for viewing forecasted prices with The Forecaster is with the
patent-pending Forecast Cloud. The cloud allows you visualize high probability
future price movement through an analysis of price action following past events
(i.e.,. moving average crossovers, indicator overbought/oversold conditions,
candlestick patterns, etc.). When version 14.0 was released the ability to forecast
based on patterns (either hand drawn or copied from the chart) was introduced.
The forecast cloud can be overlaid directly on a chart to help see how the forecast
performed in the past following each event. A forecast cloud can be projected
beyond the most recent day in order to see projected price movement into the
future thereby allowing traders to set profit targets, stops, etc. for better trade
management. A detailed statistical report shows specific probabilities for forecasted
prices including margin of error, standard deviation and other metrics.
67 built-in Event Recognizers include volatility-based indicators like Bollinger Bands
and Chaikin A/D, momentum-based indicators like RSI and Stochastics, trend-based
indicators like MACD, a variety of Moving Averages, and popular candlestick
patterns.
Data Feeds[edit]
MetaStock uses data feeds provided by Thomson Reuters LLC. The end-of-day
software uses Reuters DataLink. Reuters DataLink provides data from all of the
worlds major markets including North America, Europe, and Asia. Users can access
an unlimited number of instruments for charts, system testing, and explorations.
Historical data coverage begins in 1980 for North American equities, indices, and
mutual funds and as far back as 1973 for some futures. International data goes
back at least five years.
Prior to MetaStock 12.0, MetaStock accessed Thomson Reuters BDN (Bridge Data
Network) data feed. BDN data was broken into three regional packages: North/South
America, Europe, Middle East and Africa, and Asia/Pacific. All regions came with
FOREX data. BDN brought both end-of-day and real-time market data to MetaStock
Pro users. Historical data included with BDN went back as far as 25 years. A real
time news feed was included with subscriptions. News came from Reuters, Dow
Jones, Factiva and hundreds of other sources. [14]
The XENITH real-time datafeed replaced the BDN datafeed beginning with
MetaStock Pro 12.0. The XENITH datafeed is a retail variant of the institutional level
Eikon datafeed. MetaStock 12.0 continues to work with the Reuters DataLink feed.
File Format[edit]

Data records for MetaStock include up to 11 fields including: Date, Trade time,
Name, Ticker, Open price, High price, Low price, Close price, Volume, and Open
Interest.
The legacy (pre-12.0) MetaStock file format is a binary file format and originated
from the Computrac file format. There are four files associated with the format:
MASTER, EMASTER, XMASTER, F*DAT, and F*.MWD.
Prior to version 12.0, MetaStock provided a utility for converting data to and from
various formats including ASCII, Excel, Lotus 1-2-3 and TC2000. In Metastock 12 this
utility was removed.[15] MetaStock 12 cannot read legacy MetaStock file format files
stored locally on the user's drive. MetaStock 12.0 and beyond access data through a
live, direct connection from Thomson Reuters feeds (DataLink for end-of-day daily
data and XENITH for real-time intraday data).
With MetaStock 13.0, local data access was reintroduced. In addition to accessing
live data through a direct connection with Thomson Reuters feeds, MetaStock 13.0
will natively read locally stored Comma-Separated-Value (CSV) files.