Powerful Tools Built Into TradeStation: Moving Averages and Index Members
David Russell
September 25, 2020
TradeStation’s platform is famous for letting customers build their own tools. But did you know it also includes hundreds of useful indicators with special purposes, available free to everyone?
Our servers constantly track major indexes like the S&P 500, Nasdaq-100 and NYSE Composite. They offer data like the number of stocks making new highs and lows, companies above their 50-day moving averages and advancing and declining issues.
This is interesting today because the market’s recent volatility has dragged some of these indexes down to surprisingly low levels. For example, did you know only 22 members of the Nasdaq-100 closed above their 50-day moving averages on September 24? It was the lowest total since April 3 as the market was rebounding from the Covid crash.
Weekly chart of $50DMAAND showing the number of Nasdaq-100 stocks over their 50-day moving averages. Long-term average shown in blue.
It’s also far below the long-term average of more than 60 stocks being above that key level.
The S&P 500 is in a similar situation, with just 121 members of the index over its 50-day MA.
Want more factoids like this? Here’s are some useful indexes calculated all the time, available for charting and analysis. We’ll have more in future posts.
David Russell is Global Head of Market Strategy at TradeStation. Drawing on nearly two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial.
Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them appraised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.
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