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1Using Market Master Xec

Highlighter TestsThe purpose of the Highlighter is to quickly and easily highlight shares that you should bebuying or selling, or at least looking at more closely. The Highlighter employs technicalanalysis methods to highlight shares that are poised to either rise or fall. It can beprogrammed to employ the same sequence of tests that you would use when studying agraph and making your decision.

There are many more shares, unit trusts, etc. that are traded in just one stock exchangeeach day than it is humanly possible to keep track of. Once you have interests in more thanjust one stock exchange, this problem compounds. You can of course choose to ignore thevast majority of these and just watch a few selected shares each day, but then each day youwould very likely miss countless profitable opportunities.

The Market Master Highlighter has threesections, Indicator Test, Scanner and MarketStatistics. Each of these sections have a vastarray of features that will be discussed indetail.

These three sections can be accessed from theHighlighter menu as shown above, or via the relevantbuttons (as shown here) if you have placed them on aToolBar.


The Indicator Test OptionsSelect the Indicator Test option from the Highlighter menu or clickthis ( ) button if you have set one up on a Tool Bar.

When you select the Indicator Test option, you will have thescreen shown below.

The very first time you ever select torun the Highlighter Indicator Test, youwill be prompted to install some pre-loaded highlighter tests. Accept therequest and you will see a screensimilar to this one. Select any of thelisted tests at this stage and then click“Open”.

The first time you select the HighlighterIndicator Test, it will be blank as shownhere. If not, click the “Reset” button(bottom, right-hand) to make it blank.

On future occasions, the HighlighterTest window will always start off withwhatever information you had lastentered into it.

If you wish to return the screen to theblank state, click the Reset button.

You can run a Highlighter Test on either theentire market, or the shares in any of the 99sector groups (eg. 10 = Unit Trusts, 20 =Mining Resources, 23 = Gold Mining, etc.), orthe shares in any portfolio or the shares inany Series you have created.

Setting Up & Running Highlighter Tests


Also important is specifying if the test is to be run on Daily, Weekly or Monthlydata. Each time you click on the “Data Mode” button (shown here), it togglesfrom Daily to Weekly to Monthly and back to Daily.

Additionally, you may wish to select a different stock exchange to run the testson. Use the Drop Down menu at the very top of the Highlighter Test Box and follow theprocedure outlined on page ? if you need to select securities from a different exchange.

Next you will notice that there are 10 rows, (you can perform up to 10 tests simultaneously),that have entry fields for the following :

Test: Tick to do this test. Un-tick to ignore anything entered on this line.

Indicator: The Indicator that is being tested.

Method: The trading method to be used when analysing that indicator.

P1, P2: The period(s) to use with that indicator (if applicable).

MA: The moving average period if you are using a method that requiresone.

Below/Above: The upper and lower limit to use if you are using a method thatrequires one.

Buy/Sell: The time period the signal to buy or sell must be within. If you entered5, then the buy/sell signal must have happened within the last 5trading days.

At the bottom of the screen, you can enter the number of the upto 10 tests that must be true before the share is highlighted.

If you want to run a test such that the results obtained would be thesame as if you had run the test at some date in the past, adjust the“Cutoff” date shown here (usually it displays today’s date). If you ran thetest with the above, it would generate the results you would have obtained had you run it withyour database updated to the 20 August 2001.

The row of information that you must enter for the test may initially look very complex, but wewill now discuss it step by step.



TEST and INDICATORYou can select the indicator with which you want each file to be tested. Any of the indicators from the list shown in the screen alongside can beused. In addition, tests using a single moving average or two movingaverages can be performed. You select the Indicator by using the dropdown box as shown here. Select the desired indicator.

If you want to test for the cross-over of a single moving average on theclose price of a share, select the Close Indicator, use the cross-overmethod and enter the moving average period as discussed below. If youwant to test for the cross-over of two moving averages, select the Moving Average (MA)Indicator, use the cross-over method and enter the two moving average periods asdiscussed below.

METHODThere are up to nine different trading methods that can be used with the various indicators,namely the CROSSOVER (C), ZERO CROSSING (Z), DIRECTION CHANGE (D),WARNING LEVEL (W), LEVEL EXCEEDED (X), POSITION (P), NEW HIGH LOW (N), NEWCLOSE BREAK (B) AND LIMITS (L) methods. For each Highlighter Test to be performed,you select the desired method from the drop down box. These trading methods will bediscussed in more detail later.

PERIOD 1 and PERIOD 2For each Indicator you use, you need to specify the period to be used, i.e. 13-day RSI etc. Some indicators (e.g. the Exponential Oscillator or the SIROC), require that you enter twoperiods. Some indicators like OBV do not require any periods.

If you want to test for the cross-over of a moving average with the close, select the CloseIndicator but do NOT put any values in the Period 1 or Period 2 fields. Rather, put the periodof the moving average in the Moving Average Period field mentioned below.

If you want to test for the cross-over of two moving averages, you select the Moving Average(MA) Indicator and put the period of the first moving average into Period 1. You put theperiod of the second moving average in the Moving Average Period mentioned below.

MOVING AVERAGE PERIODIf you select the Crossover Method, (ie. you wish to buy or sell as the Moving Averagecrosses the Indicator, the 1st moving average or the close price), you must enter the period ofthe moving average to be used. If you are not using the Crossover method, any valueentered in this field is ignored.

BELOW and ABOVE LIMITSIf you select the Limits method, (i.e. you wish to buy when the indicator drops below a setlevel and turns up, or sell when the indicator rises above another set level and turns down),you must enter the upper and lower limits to be used. If you are not using the Limits method,any values entered in this field will be ignored.

BUY and SELL PERIODYou can specify the time period in which you want the buy or sell signal to have occurred. For example, if you set the buy value to 2 and the sell value to 5, the test proves positive ifthe indicator gave a buy signal in the previous 2 trading days (most recent and previous two,thus within latest 3 days of data), or a sell signal in the previous 5 trading days. If you wishonly to look at buy signals, you would enter a -1 in the selling period field and visa versa.

If you want to test for a signal being given with the latest day’s data, set the period to 0.



Since you can perform 10 tests simultaneously, you have the facility to specify how many ofthe tests must prove positive on a single share in order for it to be highlighted.

In the left most column (column before where you specify the IndicatorTest) are a number of “check boxes”. If you have specified more than onetest, tick next to the test that you want the Highlighter to perform. In theexample here, four tests have been entered, but the Highlighter will onlyperform the Exponential Oscillator (Exp. Osc.) and theOverbought/Oversold (OB/OS) tests. If the SIROC and/or the RSI hadbeen selected, these tests would also have been included.

Combined with this is the optionat the bottom to specify howmany tests must pass before ashare is highlighted. If you areperforming three tests, you couldask it to highlight a share if itpasses any ONE of the threetests, any TWO of the three testsor all THREE of the selectedtests. The example here performsthree tests on every share onyour database. A share ishighlighted if it meets any two ofthese three tests.

Next consider how the Highlighterlooks at the share with thespecified test to see if it passes ornot.



TRADING METHODS

Cross-over: Gives a signal when a moving average of a given period intersects theIndicator. As the indicator crosses above the moving average, youBuy. As the indicator crosses below the moving average, you Sell.

Direction Change: If the indicator is going down, and then turns up, you Buy. If theindicator is going up, and then turns down, you Sell.

Zero Crossing: If the indicator is above the zero line, and then crosses below the zeroline, you Sell. Conversely, if the indicator is below the zero line, andthen crosses above it, you Buy.

Limits: If an indicator is below a given limit, and then turns up, you Buy. If it isabove a given limit, and then turns down, you Sell.

Warning: If an indicator is below a given limit a Buy is given. If the indicator isabove a given limit, a Sell is given. (ie. Each day the indicator is belowthe given limit, a buy is signalled)

New High Low: If the share price makes a new high or a new low in the number ofperiods specified in the Buy or Sell columns respectively. The periodfor determining a High or Low is specified in the Above and Belowfields respectively.

New Close Break: This is the same as the “New High Low” test, except it checks if theClose has reached a new high or the close has reached a new low.

Exceeded: Only on the day that the indicator drops below a given limit is a Buygiven. Only on the day that the indicator rises above a given limit is aSell given. (ie. If the indicator dropped below the limit a few days ago,even if it is currently below the limit, no signal is given)

Position: When the share price has remained consistently above the givenmoving average for the number of trading days specified in the Abovefield, a Buy signal is given. When the share price has remainedconsistently below the given moving average for the number of tradingdays specified in the Below field, a Sell signal is given.

All eight tests cannot be used with all indicators (the RSI indicator never goes below zero,therefore the Zero Crossing test cannot be used). A list of the various indicators along withthe tests that are performed on them, are listed in the on-line help. The Warning andExceeded methods can be used with any indicator that the Limits method applies to.



As an exercise, let’s enter the following tests to highlight any Share in the Series Top 40, thatmeets any of the following tests:

1. An Exponential Oscillator - 89/120 - Direction Change.2. An Exponential Oscillator - 89/120 - Crossover with it's 15-Day moving

average.3. An Exponential Oscillator - 13/34 - Direction Change.4. An Exponential Oscillator - 13/34 - Crossover with it's 15-Day moving

average.5. A SIROC - 34/13 - Crossover with its 15-day Moving Average.6. A SIROC - 34/13 - Direction Change.7. A Kurtosis - 60 - Crossover with its 15-day moving average.8. A Kurtosis - 60 - Direction Change.

We will set the Buy/Sell time frame to be over the last 10 days. Enter these tests. When youhave entered all of this, your screen will look similar to the one shown here.



Before we go to the next step, namely, running the test, let’s save this test information.Market Master lets you create as many sets of tests for the Highlighter as you need. To savehaving to re-enter them, you can save them under a description.

Click on the “Save” button and you will havea screen similar to this one. In the File Namefield, type in a description for this set of testsyou have entered.

In this screen, we have called it Test 2001.Once you have a name entered, click Save.

You will next get the opportunity to enter adescription for the newly created test asshown here. You can edit this later whenneeded.

After Closing NotePad, you will return to theHighlighter Test screen on which we hadentered all the information.

If you want to change the description youentered for this newly saved test, click on the“Explain” button at the bottom middle of the“Indicator Test” window. Enter an explanationthat describes what the highlighter test istrying to achieve. Close NotePad when youhave done this.

As an example of what you maywish to record in this explanation,displayed here is the “Bearish -Divergence on highs (RSI)”information.

On the Indicator Test screen,click OK to start the Highlightertesting. A window will open anddisplay statistics as to what shareis now being tested. As a sharepasses the required tests, this willbe displayed in that window. If,whilst the highlighter test isrunning, you want to stop it, eitherclick the Stop button ( ) on the Highlighter toolbar or the equivalent option from theHighlighter menu.

A typical screen of some highlighter results is shown at the top of the next page.



There is one share entry for every test that it passes. If you setup six tests and want a sharehighlighted if it passes any two or more, and that share passes 5 tests, you will have 5entries.

In the example shown here, the share TREMATON passed three tests and hence is listedthree times. If you double click on the top test, a three graph window is opened with each ofthe tests (Position, Limits and Cross-over) graphed. If you click on the bottom test, just theCross-over test will be graphed (see page 29 for an example).



It is possible that there are no shares in your Series that meet the test criteria. This wouldhappen if the test goes through and no files are highlighted, i.e. when your window is blank,but your screen shows that it has “Finished Test...” as shown below.

In such instances, close the windows down and if needed, re-run the highlighter test withrevised criteria, or accept that no shares met your criteria.

You can run a number of Highlighter Tests at the same time, but your machine’s responsewill suffer, however, you can minimise the Highlighter results window and perform yournormal graphing functions while a Test is running.



Examples of Each Indicator Test MethodCross-Over Test

The Cross-over test can be done on the closing price and/or any indicator available onMarket Master. In the above example we have chosen to test the SIROC indicator (a 34, 13SIROC) and then drawn a 21 day Exponential moving average. This indicator/movingaverage combination will be drawn internally by Market Master for every share you haveselected to test.

If the SIROC indicatorcrosses up through the21-day moving averagewithin the last 5 tradingdays a Buy signal will begenerated. This is shownopposite for the PSI-20index.

If the 21-day movingaverage crosses downthrough the SIROCindicator within the last 10days a Sell signal will begenerated as is shownhere for PLAT-$.



Direction Change Test

The Direction Change test is usually done on an indicator. It can also be done on the shareprice (i.e. select Close for Indicator) and/or a moving average (i.e. select MA for Indicatorinstead of SIROC as above). A 34-,13-day SIROC has been selected in the above example.The criteria are selected to highlight the share that gives either a buy or a sell signal usingthe most recent data.

If the SIROC indicator wasgoing down yesterday,and then with today’s datait turns up, we have a Buyas shown here. As in thisexample, the reversal canbe extremely small andperhaps evenindiscernible to the casualobserver. If needed, zoomin to see the signal moreclearly.

If the indicator is going up,and then turns down, youget a Sell signal. In theexample here theSIROC’s single dayreversal is ringed.



Zero Crossing Test

The Overbought/Oversold and the Exponential Oscillator are two good candidates for theZero-crossing test. Indexed indicators like the RSI, SIROC, etc. cannot be used as theynever go below zero! The above test is checking for all those shares that had a 21-day Overbought/Oversold indicator that was negative and moved up through zero during the last5 trading days. No Sell signals will be generated, as a “-1” sell period has been used.

In the example shown here, the PSI-20 INDEX had a 21-day OB/OS indicator that was belowthe zero line, and then crossed above it within the five most recent trading days. Thisgenerated the Buy signal on 1 July 2005 at an index value of 7555.

Although this highlighter test was not set up to identify Sell signals, if the OB/OS indicatorwas above the zero line, and then crossed below the zero line, a sell signal would have beengiven.



Limits Test

The RSI indicator is used here with the limits test. An 8-day RSI is being tested. A Buy signalis to be given if the RSI indicator is below a given limit of 20, and then turns up (at any pointin the last 10 days). If the RSI is above the upper limit of 80, and turns down (at any point inthe last 10 days), a Sell signal is generated.

The RSI went below 20 and would have generated a signal as it ticked up on the 30th Marchand again as it went below and ticked up on the 4th April (ringed bottom right).

Additionally, it is possible for it to go above (or below) a level for an extended time before asignal is given, as it did during January and February. Although a Sell signal would not havebeen given for this test, as they all occurred well before the 10-day period we stipulated, haswe looked for signals over a longer time frame, or had we run this test a month earlier, wewould have picked up one or more of the 4 sell signals ringed in this example.



Warning Test

If an indicator is below a given limit when you run the test a Buy is given. If the indicator isabove a given limit, a Sell is given. (ie. Each day the indicator is below the given limit, a buyis signalled).

Note the example here. On the 29th June the RSI indicator rose above the upper limit of 80.Each day that you ran this Highlighter Test since then, it would have signalled a “Sell”. Hadyou run this test on the 17th-21st and/or 23rd, 24th June it would also have given a “Sell” asthe RSI was also above 80 on these days.

The “Warning“ test is used mainly to alert the user that an indexed indicator (one that onlyranges from 0 to 100 such as the RSI or a SIROC) is in a certain region. The Above testwould alert you to shares whose 13-day RSI is in a potential “Buy” (i.e. below 20) or apotential “Sell” (i.e. above 80) region. The fact that a share has the potential is no guaranteethat the potential will be realised and hence this indicator does not give a signal that youwould immediately act on. Use this as a quick sift test.

If you are looking for the shares that have just crossed over a given limit, use the “Exceeded”test discussed next.



Exceeded Test

Only if an indicator crosses below the given limit when you run the test is a Buy given. If theindicator crosses above a given limit, a Sell is given. If the indicator is currently above theupper limit or below the lower limit, having entered that area a few days ago, no signal isgiven.

Looking at the graph on the previous page under the “Warning Test”, that share would nothave been highlighted with the above “Exceeded” test unless you had increased the zero inthe Sell field to about 4...5 trading days.

The example here shows a Sell signal being given as the RSI of FX-P-CAD rises above 80with the latest day’s data.

If we were to run this test tomorrow, this share would not be highlighted unless the “Sell” fieldparameter is increased from “0".



Moving Average Position Test

When the share price has remained consistently above the given moving average for thenumber of trading days specified in the Above field, a Buy signal is given (i.e. it is in a Buymode). When the share price has remained consistently below the given moving average forthe number of trading days specified in the Below field, a Sell signal is given (i.e. it is in a sellmode). The “Buy” and “Sell” fields can also be used as will be discussed later.

The above test will check for the position of a 34-day moving average on the share price.You could equally test the position of a moving average on an indicator. If the share pricehas been below the moving average for 20 days or more a Sell signal is given. If the shareprice has remained above the moving average for 30 days or more the Buy signal is given.

First, look at the results shown here. In the chart the share price has remained above the 34-day moving average for more than 30 days.



Looking at some variations on the “Position” test we have the following:

The above test will only find those items whose price is below the moving average (for atleast the last 20 days).

Conversely, the above will only highlight shares that are above the moving average (for atleast the last 30 days).

The above looks at a moving average on an Indicator. If the 34 day Moving Average hasbeen above the 34/13 SIROC for 5 days or more, then highlight this share.

Now look at an example where we use the time window of the “Buy” and “Sell” fields:

This example also tests for the share price being above/below a moving average for the last30/20 days. However, we are also asking that this be the situation within the last 10 tradingdays. Over and above all the signals we would have got with the “Buy” and “Sell” fields set tozero (as in the previous examples), we now highlighted shares that may not currently fulfillthis test, but did fulfill it if the test was run sometime within the last 10 days (i.e. within the last40 days the price was consistently above the moving average for at least 30 days or withinthe last 30 days it was consistently below for at least 20 days).



You may now highlight shares like the ones shown below:

Looking at this chart, it is not currently below the moving average for an un-interrupted periodof 20 days, however, within the last 10 trading days it was below the moving average for atleast the previous 20 days!



New High Low Test

This test is used to highlight shares whose High/Low price or the value of an indicator hasreached a new high or a new low within a given time period.

The Above and Buy fields are used for new High. The Below and Sell fields are used for newLow.

In the first of the two examples given above we are testing for shares that have gone to anew yearly high (i.e. we set the Above value to 255 - the number of trading days in a year)within the last 15 trading days (Buy is set to 15). We have disabled testing for new lows byputting -1 in the Sell column. Since we are not testing for lows we did not enter anything intothe Below field.

Looking at the chart shown above we can see that the FX-E-HKD (number of Euro topurchase a Hong Kong Dollar) reached a new high during the last 255 trading days.



In the second of the two examples above we are testing for the RSI indicator to havereached a new yearly low within the last 5 days. The period of the RSI is 34. Since we arelooking for a yearly low (255 trading days to a year approximately) we put 255 in the Belowfield. We disabled testing for highs (put -1 in Buy column) and entered 5 in the Sell column totest for the yearly low to have occurred within the last week.

As can be seen from the above chart, the RSI did drop to a new yearly low (34.4) within thelast 5 trading days.

If needed you could use a single line to test for both Highs and Lows as long as both are onthe close or the same indicator!

To tests for yearly High/Lows enter 255, for monthly High/Lows enter 22 and for weeklyones, enter 5 in the Above/Below fields respectively.



New Close Breakout Test

This test is the same as the New High/Low test just discussed, except that instead of testingfor the high to have reached a new high or the low to have reached a new low, it tests if theclose has either reached a new high value or low value.

As such it can be used to highlight shares whose close price or the value of an indicator hasreached a new high or a new low within a given time period.

The Above and Buy fields are used for new High. The Below and Sell fields are used for newLow.

In the above example we are looking for the most recent close to have reached a newmonthly low (i.e. last 22 trading days => 1 month). We are looking for the 8-day RSI to havereached a new monthly (i.e. last 22 trading days => 1 month) high or low over the last threedays.

In the example here of FX-$-CHF this currency has reached a new monthly low with the mostrecent data item.



In this example, the RSI reached its highest value in over a month within the previous 3trading days.

In this example, the RSI reached its lowest value of the last month in the previous 3 tradingdays (actually with latest data as well).


Analysing Indicator Test Results

When you are running a test, or have finished a test you will see a screen similar to this. Thisscreen should be interpreted as follows:

Share : Name of the share that tested true. If you entered more than one test theshare will be repeated for each test it has passed.

Test : Indicator used for test that passed on this share.

Method : The method of testing chosen for this indicator.

P1 : Indicator period 1 - leave blank if not applicable.

P2 : Indicator period 2 - leave blank if not applicable.

Ma : Moving average period - leave blank if not applicable.

Above : Upper limit - leave blank if not applicable.

Below : Lower limit - leave blank if not applicable.

Action : A test can give either a Buy or a Sell signal (unless you have setup to test justfor one signal - see page 4). Either a Buy or a Sell will be displayed to showwhat signal the test gave.

Date : Date of the signal.

Price : The Price of the share on the date the signal was given.

Last : Was the signal given on the latest piece of available data? Since you mayhave specified a time window of a few trading days a “Y” will be displayed ifthe signal was generated with the latest day’s trade (based on what date yourprogram is updated to).


Practical Examples of Indicator TestsA simple test to find all those lowpriced shares (i.e. Under 100cents) that may currently be in abuy or sell position.

Highlighter Group “0" (zero) testsevery share.

Group 20 tests only the MiningResources shares.

Group 30 tests only the BasicIndustries.(The above is assuming the JSXexchange - Different exchange,different groupings...)

All the available stock exchangesin Market Master are divided upsuch that you can test all shares,main sectors (e.g. Industrial),minor sectors and the individualsectors.

Select to highlight if “2" tests are true to get results ONLY if BOTH tests prove true.

If you are only looking for “Buys”, insert a “-1" in the Sell column for the RSI test.

A typical test to run on the goldshares.

Gold Shares are Group 23 on theJSX.

This test assumes that youhave, by using other methods,determined that now is a goodgold share buying opportunity. This test will highlight the bestbuys at present, but you maynot wish to even buy those atpresent!



A rough test that can be run on allresource shares to find those thatyou may wish to spend more timeanalysing.

Resources are Group 20 on theJSX.

This test assumes that youhave, by using other methods,determined that now is a goodgold share buying opportunity. This test will highlight the bestbuys at present, but you maynot wish to even buy those atpresent!

As a quick test using RelativeStrength to try and Highlightthose sectors that may soon startoutperforming the market, try thefollowing where we run all thesectors (Highlighter Group 15)relative to the Overall (All Share)Index.

This test will also highlight thosethat were outperforming and arenow slowing down.



Should you want to use RelativeStrength to try and highlight thoseshares of a particular sector thatmay soon start to outperform themarket, try the following wherewe check all the GeneralIndustrial shares (HighlighterGroup 80) relative to the JSE-GIND (General Industrials index).


Integrating the Indicator Test with GraphsIf you wish to see a graph of the share tested, merely double-click on the share name and agraph will be automatically opened, with the indicator tested and a value line displayed onthe date that the signal occurred.

In the example here, the 5th result for FTSE-AIM was clicked. The value line is thus placed atthe point of the result of this test, namely the date of the upper limit being exceeded for the 8-day RSI.

If there is already an open window somewhere for the given share (eg. FTSE-AM), doubleclicking on it will do nothing!

Locate the existing window for that share and close it first. Then double click on that name in the Highlighter results window.


Saving and Graphing all Highlighter ResultsAs discussed in the previous section, you can view a graph of any of the highlighter resultsby double clicking on the result line, however, you may wish to record the results of a test,vary some periods, and re-run it and then compare the results. Alternatively, you may want tosave the list of shares highlighted with a view to doing further analysis on them at a futuretime.

You can do all this with thelast two options of theHighlighter menu as shownhere. The lower threeoptions are only availablewhen a highlighter resultswindow is active. Select the“Save Results”option asshown here.

The “Save Highlighter Results” windowshown here on the right, is displayed. Enter adescriptive name to save the results under.As can be seen in this example, each montha Position Test was run on the Resourcessector and the results saved accordingly.

You can save as many tests as you like usingstandard Windows names. If you need toremove unwanted tests, select a test at thispoint, right-mouse click and select delete toremove it. Alternatively, using your WindowsExplorer, go to the “hilight” sub-directory (inside the MM2 folder) and delete the unwantedtests.

To view either the list of shares thatwere highlighted or to graph theseshares, use the Share Manager. Selectthe “Highlighter Results” tab as shownhere on the right. You will note thatthere is always a highlighter test called“Last”. This is the results of the last testyou ran, irrespective of you havingselected to save the results or not! Ifyou thus run a test and accidentallyclose it, you can find the list of shareshere. Each time you run a highlightertest, this list is overwritten with thelatest results.



To select a previously saved test, drop down thelist box as shown here. Select the desired savedtest results. The Share Window on the left nowcontains the names of the shares that werehighlighted. You can select a share to graph andthen Page Up or Down through these shares.

Another method of savingHighlight Test results is touse the last option of the“Highlighter” menu asshown here. This option isfor saving the shares thatwe highlighted to anexisting or new Series.

The following window is displayed. It will list any existingSeries that you have. Select an existing Series if youwant to replace it with the current Highlighter Testresults. Alternatively type in a new name. Once the list ofshares from the current Highlighter Test have beensaved to a Series, they can be viewed, edited, etc. likeany other Series.

The difference between these two methods of saving Highlighter Test results is as follows:

‚ When you “Save Results”, the saved list of shares cannot be edited or modified atany future stage. It is thus a permanent record of the exact results obtained.

‚ When you “Save Results to a Series”, the saved list of shares is just another Series.This Series can have shares removed and/or added to its list.

Choose the method that best suits your future intentions.


The Market ScannerThe Purpose of the Market Scanner is to quickly scan through the market or a specifiedgroup of shares and isolate those that are meeting specified criteria. The Scanner offersthree separate tests:

LimitsIndividual upper and lower price limits can be monitored for each share. When a sharemoves above or below the limit you specified it will be highlighted.

Stop-LossShares will be highlighted if they fall or rise by a specified percentage from a specified date.You would normally use this feature in conjunction with your Portfolios to alert you to sellingopportunities.

Percentage MoversAll shares will be highlighted that have moved up or down by a specified percentage over aspecified time period. You would normally use this feature to find any shares that moved insuch a way that you would like to buy them.



Selecting what Shares to Scan

Click on ‘Highlighter’ menu and then select ‘Scanner’ to start a Market Scan. Alternatively,click the ( ) Scanner button.

Either way, the Scannerdialog box as shown herewill be displayed.

As can be seen, the threetests you can perform,Limits, Stop-loss andPercentage Movers are allon the same screen. Youcan select to do one ormore of these testssimultaneously. First youneed to select the datatype.

Specify if the test is to be run on Daily, Weekly or Monthly data. Each time youclick on the “Toggle Data Mode” button (shown here), it toggles from Daily toWeekly to Monthly and back to Daily.

Additionally, you may wish to select a different stock exchange to run the tests on. To do so,click on the drop down menu at the very top of the Scanner box.

Next, you need to select a group of shares to scan as follows:

GroupChoose ‘0’ (zero) to scan the entire market, or enter the market sector you wish to scan (wechose the Gold Sector).

PortfolioChoose a Portfolio from the drop-down list box. Shares you currently hold in this portfolio willbe scanned.

SeriesChoose a Series from the drop-down list box. Shares in this series will be scanned.

Irrespective of which method you use to select the group of shares, the individual sharesappear in the “Shares to be Scanned” list box.



Specify the Type of Scan

The three types of tests areshown here. Ticking the “DoTest” box selects to performthat test when you click“OK”. You can select to runmore than one test at atime. Shown here, all threetests are selected.

Doing a Scan

First, as discussed previously, select the data mode (Daily, Weekly or Monthly).

You should have already selected what shares to scan and these should now be displayed inthe “Shares To Be Scanned” list.

Then tick the appropriate “Do Test” check box. You may select more than one test to run atthe same time.

The results of the scan will be displayed and are interpreted as per the explanation on page41 as the layout of the results from each of these three types of tests are identical.

To set up the scanner for the first time, and/or to edit existing details, see the relevant sectionthat follows.



Setting up a Limits Scan

If you are setting up thelimits to scan for or wish toadjust existing limits,proceed as follows:

First, select the shares toscan. In the example herethe series called “DAILY2001” has been selected.The shares in this list arenow displayed in the“Shares To Be Scanned”list.

Next we click on a share inthe “Shares to be Scanned”list box. In the examplealongside, we have clickedon the share ABSA. Thecurrent price of ABSA isdisplayed under the wordToday in the Limits section(i.e. at the time of thisexample ABSA was 82.62).You may now enter anupper and lower limit shouldyou wish to monitor either.When you run a test, theshare will be highlighted ifit’s current share price transgresses either of thepreset limits (i.e. goesabove the Upper Limit orbelow the Lower limit).

The information you enterinto the Upper and/or Lowerdata fields is saved immediately. If you do not wish to test a certain limit and you haveentered a value into that field, set it to zero.

When the Limits Scanner is run, the current Closing price is compared to the given limits.The high and/or low traded on the most recent data is not used.



If you had previouslyentered an Upper and/orLower limit for the selectedshare, as you click on theshare the current price,upper and lower limit willappear in the Limits area.This is shown here wherewe previously entered alower limit of 75.00 and anupper limit of 85.00 forABSA.

You could now adjust eitherof these values. If you nolonger wanted to test if thisshare drops below 75.00,type a zero into the Lowerlimit as shown here. NowABSA will only behighlighted if it’s share priceis above 85.00 when youscan.

Obviously the share ABSAis also in the Financialshighlighter group. It mayalso be in a number of otherportfolio’s and/or Series.There is however, just oneset of limits for the shareABSA. If you now clickedon the Financials group,ABSA would be listedamongst the shares there. Ifyou click on ABSA you willsee the same limits figures you have just entered.



Doing a Stop-Loss Scan

Tick “Do Test” if you wish todo this test as shown here.

The top row allows you tospecify the general stop-loss parameters.The second row allows youto specify specific stop lossparameters for an individualshare.

In the example above wehave selected to do theStop-Loss test and toperform the General (i.e.ignore unique stop-lossdata as explained below)scan. We have selected tojust scan the 13 shares inthe Life Assurance sector.We have asked to highlightany shares that have risenby more than 30% since 1January 2005. Additionally we have asked to highlight any shares that have fallen by morethan 15% since 1 January 2005. Usually you would scan for either shares that have risen orshares that have fallen. When testing for both instances, as in the above example, rememberthat a single share could fulfil both criteria. In such instances, the most recent event will behighlighted (i.e. if it rose by 30% or more and then fell by 15%, the fall would be listed).

In the example shown above, although the share MET-LTD is highlighted and its currentprice of 10.14 is displayed under the “Today” heading in the “Limits” section, this is of nosignificance to the general stop-loss test about to be done.

Please note that this is a sliding stop-loss system. If the share were to rise by 25% from thegiven date and then fall 15% (i.e. still 10% above the starting value), the share will behighlighted. If you did not want a sliding system, use the Limits tests discussed previously.



It is also possible to set anindividual or unique valuefor each share. As you clickon a share in the “Shares tobe Scanned” list you cannow enter unique Rise andFall values and a date forthis share. In the examplehere we have selectedLIBERTY and entered tohighlight this share if it risesby 20% or more from 8February 2005 and/or fallsby more than 5% from thissame date. If you want toset these values as uniquevalues for LIBERTY, tickthe “Unique Test” checkbox as shown.

If you clicked “OK” at thispoint the scanner wouldcheck for any LifeAssurance share that has risen by more than 50% or fallen by 35% since 1 January 2005.However, when it tests LIBERTY, it would highlight it if it has risen by 20% or more or hadfallen by 5% or more since 8 February 2005. Additionally, if we had entered any other uniquevalue for other shares in the Life Assurance sector, it would use those unique values.

In general, when a Stop-Loss test is run, if the “Unique Test” box for that share has beenticked, the Date, Rise and Fall values for that share are used and the share is highlighted ifthose are met. If the “Unique Test” check box for a share is not ticked, the general Date, Riseand Fall values are used. If you want to test all the shares with the general values andignore any unique values that a share may have, tick the “Ignore Unique” check box and runthe test.

Once again, like in the “Limits” test, a share can be in a number of portfolios and/or series.There is, however, just one set of unique stop loss figures (Date, Rise, Fall) for each shareon the database.

The example on page 37, as does the onehere, ignores any specific values entered forany of the shares being tested. Shares will behighlighted only if they have risen 50% ormore and/or dropped 35% or more since1 June 1999.

In the example here, the same test as aboveis done, except for shares that have uniquevalues entered. For those shares, theirunique values will be the test criteria. Notethat the “Unique Test” box is only ticked asyou setup the individual tests - it does notneed to be ticked when you run the tests aseach’s share’s unique test is used (if one has been defined for it) when a test is done if the“Ignore Unique” option is not selected.



When entering the uniquetest information for a share,it is important that you tickthe “Unique Test” checkbox as well. In the examplehere, the values of 35 & 15have been entered forLIBERTY, but since thecheck box is not ticked, thegeneral test values and notthese unique values will beused. These values, arehowever, remembered forLiberty and when you nextselect it, you will be shownthese values.

If you wish to temporarilydisable an unique stop losstest on a certain share sothat it uses the “general”values, un-tick the “UniqueTest” box for just that share.

If you want to exclude doing any testing at all on a certain share that is in the list of selectedshares, then set it’s “Date” to some future date and that share will be ignored.



Doing a Percentage Move Scan

Tick “Do Test” check box as shownhere if you wish to do this test. Choosethe shares to test. In the exampleopposite we have chosen to test theshares in the Leisure & Hotels sector.

The previous two tests looked forshares that have moved through agiven level, or through a sliding stop-loss level. The move is based on theshare price. In both these tests you canspecify unique values for every shareon the database. All of these tests arebased on the move from a date in thepast. Often you simply want to see themovers of the last day, week, month,etc. In such instances you are testingback from today. This final test in thescanner does this for you. There arethree tests that can be performed with an optional switch (the “Ignore interim moves” checkbox).

You may wish to find those shares that have moved up or down by a certain Pricepercentage. In the above example we are looking for shares that over the last 90 tradingdays (18 weeks) have risen more than 20% or have fallen by 5% or more. As in the stop-lossscanner test, a share could have risen first and then fallen or visa versa. This test wouldhighlight the most recent event (i.e. if it rose 50% and then fell 10% the Scanner wouldhighlight it based on the 10% fall).

If you are not interested in the ups and downs in-between, tick the “Ignore interim moves”check box. If this check box is ticked, the price 90 days ago (if we used the example on theprevious page) would be checked relative to today’s price. If the price today is 20% or moreup on the price 90 days ago, the share is highlighted. If it is 5% down on the price 90 daysago, it is highlighted.

If you select the Volume option, the identical conceptsmentioned above are used, except that rather than lookingat the price, the volume traded is tested. In the examplehere, if the “Ignore interim moves” check box was off, a share would be highlighted if at anystage during the last 90 trading days the volume traded was 20% higher than on anyprevious day and/or the volume was 5% lower than any previous day. In all likelihood youwould highlight everything! In practice you would look for a move up or down of 30% to 50%over the last week or so only as volume traded normally varies greatly.

If the “Ignore interim moves” check box is ticked as in the above example, it would highlight ashare if the volume traded today is 20% higher and/or 5% lower than the volume traded 90days ago.

The final option is to scan based on the value of the day’strade (i.e. Value = Closing Price x Volume Traded). In theexample here a share would be highlighted if during the last15 trading days the value traded was 35% higher than anyprevious day or 10% down from any previous day.



Interpreting the Scanner’s Results

Whichever of the three tests you scan for, the results will be displayed as shown above.

The results above weregenerated based on the testscreen shown here. As canbe seen, all three testswere checked in the singlescan. This was done so youcan see the differentresults. In real life youprobably would do only oneor two tests together.



Looking at the results window on the previous page, interpret the values as follows:

ShareName of the share that is highlighted. In the example the third result is DON which ismentioned twice as it has passed two tests.

Test DescriptionThe type of scan that caused the share to be highlighted. As mentioned, DON passedthe Stop Loss and the Price Movers test. The Stop Loss test that an item passescould have been the general or the unique one. In the case of DON it passed theGeneral test. Since the “ignore Unique” check box was not ticked, there is obviouslyno specific test requirements entered for DON. The other test passed is the PriceMovers and as stated here, it passed a “Move by Price” test. Looking at the list ofdescriptions, you can see that KINGCO passed the limits test as it exceeded theUpper limit that we had preset for it (it also passed the general Stop Loss test and aMove by Price test).

TestThe value specified when setting up the scan. In the case of DON, it exceeded the50% rise set in the Stop Loss test and the 20% rise in the percentage movers basedon value traded. KINGCO exceeded the upper limit of 0.05 that we had set (it is nowtrading at 8 cents).

ActualThe actual value that caused the share to be highlighted. In the case of CULLINAN,we were testing for a 5% fall and it had fallen 5.36%.

Date From & Date ToPeriod of signal. Inthe case ofPEERMONT wewere testing for a5% stop loss overthe last 90 days. Since then it hasrisen and fallenseveral times, but asshown in the graphabove, the mostrecent greater than5% fall (ending 20April) has beenhighlighted.

You can double click on any of the results to display a graph of the share with avalue line on the day the signal was given. To better explain some of the otherresult values, we will display a few graphs.



ValuePrice on signal date. In the example of PEERMONT graphed above the price fall wasfrom 6 April 2005 when the price value was 7.37.

Current Share ValueLatest Value of the share.

Here is asample of theresults from theScanner. Theshares arelisted in theorder that theywere tested in.You can sortthem into adifferent order.

The screen herewas sorted in“Test” order byclicking on thecolumn heading(see arrow inthis picture).

Here the resultsare sorted bythe date thesignal wasgiven on.Clicking thecolumn againtoggles thelisting fromascending todescendingorder.

Here the resultsare sorted bycurrent shareprice. Each timeyou click on acolumn, the sortorder is toggled.


The Market StatisticsThe purpose of the Market Statistics tool is to find the top ten (or more if so desired) moversup or down in the entire market or within the selection of shares you choose. Click on‘Highlighter’ menu and choose the ‘Market Statistics’ option to start a Market Statistics Test.Alternatively, click on the Market Statistics button ( ).

The Market Statisticswindow will be displayed asshown here.

First select a group ofshares to test using thesame concepts as thescanner - see page 33.Similarly select the datamode and if applicable, thestock exchange.

GroupChoose ‘0’(zero) to test the entire market, or enter the sector number of the sector you wishto test. Sector 40, the Financials sector is selected in the above example.

PortfolioChoose a portfolio from the drop-down list box. Shares you currently hold in this portfolio willbe tested.

SeriesChoose a series from the drop-down list box. Shares in this series will be tested.

Once you have selected the desired group of shares, their names will appear in the ‘Sharesto be Tested’ list box. Next specify one of the four types of tests to perform. Each of the four“Types of Stats” tests use the same concepts and can each be tested on the Price, Volumeor Value. Examples of these four tests are given in the sections “Top Movers Up/DownStatistics” (page 47) and “Top Percentage Gainers/Losers Statistics” (page 51).



When you do the test, you can base any of the four set of statistics on any one of thefollowing sources of data, namely:

PriceThe statistics will be based on the movement of the share price. This price will be the “close”data value and where you may be testing for a rise or fall, will not take any high and/or lowstraded. If you are looking to find a percentage mover, the lowest close and highest close overthe specified period is used.

VolumeThe statistics will be based on the volume traded for the tested shares. If you are looking tofind a percentage mover, the lowest volume figure and highest volume figure over thespecified period is used. If the “ignore zero data” option is ticked, then the lowest non-zerovolume figure is used.

ValueThe statistics will be based on the value of each day’s trade. The value is calculated bymultiplying the close price by the total volume traded for that day. If you are looking to find apercentage mover, the lowest value figure and highest value figure over the specified periodis used. If the “ignore zero data” option is ticked, then the lowest non-zero value (if volumetraded is zero, value is zero) figure is used.

The other options that apply to all the tests are shown here.The “Find the top” options lets you specify how many shares toreturn in the results window. Since all these tests simply rankthe tested shares based on the sort method you specify youcan, if desired, have the Market Statistics highlight every sharetested.

If you want to run a test such that the results obtained wouldbe the same as if you had run the test at some date in the past, adjust the “Cutoff” dateshown here. Usually it displays today’s date. If you ran the test with the above, it wouldgenerate the results you would have obtained had you run it with your database updated tothe 1 July 2005.

“Test the last” specifies how many data periods to test over. In the screen above it is the last90 periods. If you are testing Daily data, this is the last 90 trading days. If testing Weeklydata, this is the last 90 weeks, etc.

The “Ignore zero data” ignores any days with zero traded volume and affects mainly theVolume and Value tests. Since a single day of zero trading will produce an infinitepercentage move up, it makes sense to have this selected.

The four stats type are discussed in detail in the next two sections.



Interpreting the Market Statistic’s Results

Whichever of the tests you run, the results will be displayed in the same format as shownhere. Interpret this screen as follows:

RankThe order of the top ten shares from the selected list.

ShareThe name of the share. In the above example COROHLD was first, COROHLD_Nsecond, NEDCOR third, etc.

FromThe date the highlighted move started on. In the above example we specified a oneday move based on the most recent data and hence all the From days are the same.

ToThe move was up To this date.

ValueThis is the actual move. When doing Top movers up or Top movers down this is theactual change in share price, volume data or value traded. When doing Toppercentage gainers or losers this shows the percentage change in the share price,volume or value traded.

Current Share ValueThis is the current share price .

If you wish to see a graph of the share tested, merely double-click on the share name and agraph will be automatically opened, with a value line displayed on the date that the signalwas given.



Top Movers Up/Down Statistics

This example will find the Top 15 shares that have moved up by Price (not %) over the lastday.

Tick ‘Top Movers Up’ checkbox as shown here.

With all these statistics, youhave three options of whatto display. In choosing whatto look at when ranking theshares, you can choose totest the Price, Volumetraded or the Value of thedays trades.

The item “Ignore zero data”is more applicable if you aredoing percentage movestatistics with volumeand/or value tests.

The results alongsideare from running thetest on “Price”.STANBANK was thetop mover up basedon share price havingmoved up 2.56 centsfrom the 2nd June2005 to the 3rd June2005 (a single tradingday). The currentprice of STANBANK(on the 3rd June 2005)is 64.56. INVPLC moved up 1.90, HCI 1.00, etc.

Now we run the same statistic test, namely “Top movers up”, but we base the test on the“Volume” traded. The results are shown here.



MERCANTIL had thelargest increase inshares traded. Theshares traded on 3rd

June 2005 were2017507 more thanwhat was traded on2nd June 2005. Thevolume of sharestraded on the 3rd June2005 was 2934151.

Double-click on oneof the names in theresults window (herewe clicked onMERCANTIL), and itis graphed for you.Shown here is thisshare with a Volumeindicator insertedbelow. The volumeon the 2nd June was916 644 and on the3rd it was 2 934 151,an increase of 2 017507.

The final way to view the statistics is by the value of the trades done.

STANBANK had thelargest increase in thevalue of sharestraded. The valuetraded on 3rd June2005 were 15 564830.08 more thanwhat was traded on2nd June 2005. Thevolume of sharestraded on the 3rd June2005 was275683660.08



If we double-click onthe name of thisshare, it will begraphed for us.Shown here is thisshare with a Volumeindicator insertedbelow. The volumetraded on the 2nd

was 4 195 165 withthe closing pricebeing 62.00. On the3rd 4 270 193 shareswere traded and theshare closed at64.56 (you canobtain thisinformation bymoving the Value Line to the relevant day). The value traded on the 2nd was R 260.09 million(4 195 165 x 62.00). The value traded on the 3rd was R 275.671 million (4 270 193 x 64.56),an increase of just over R15.564 million.

We will now demonstratethe effect of the “Test thelast ... Periods” option. Asshown here we will do atest of the top 10 moversdown by price and test thelast 5 trading days. If theperiod was “1" as previous,it would look at the mostrecent days data. Now, wewill look back for thebiggest mover over the last5 days. This would be theoverall biggest mover andnot the biggest one-daymover of the last 5 days.

The “Top Movers Down” option is identical to the concepts discussedso far, except that you would highlight the shares that have droppedthe most, relative to the previous day. This would be the largest dropin price, the largest drop in volume traded or the largest drop in value

traded.



The results of the above test are shown here.

LIB-HOLD had the biggest price move down over the last 5 days. LIB-HOLD which iscurrently 158.00, moved down by 675 cents from 27th May to 3rd June.

Double clicking on any share in the results window brings up a chart as shown here.

The value line marks the start of the move that was highlighted (i.e. 30 May 2005).

For this example of NEDCOR, the move is the drop from the 30th May when the share pricewas 76.70 to the low of 74.50 (i.e. the 2.20 move down) on 1 June 2005.



Top Percentage Gainers/Losers Statistics

First, looking at the “Top Percentage Gainers”, this will find the Top 20 shares that havemoved up in percentage terms, the most.

Tick ‘Top PercentageGainers’ box as shownhere.

With all these statistics, youhave three options of whatto test. In choosing what tolook at when ranking theshares, you can choose totest the Price, Volumetraded or the Value of thedays trades.

The item “Ignore zero data”is applicable if you aredoing the volume and/orvalue tests as it is possiblefor a share to have zerovolume traded (and hencezero value). Thepercentage increase from azero day is incalculable.

The following results are from running the test on “Price”:

ZELTIS was the top percentage mover up based on share price having moved up from 1cent on the 2nd June to 4 cents on 3rd June (a single trading day). This 300% move was the



largest move experienced by any of the shares we selected to test. IMR moved up 6.67%and MCUBED moved up 4.55%, etc.

Now we run the same statistic test, namely “Top Percentage Gainers”, but we base the teston the “Volume” traded. The results are shown here.

PSGBH had the largest percentage increase in shares traded. The shares traded on 3 June2005 were 324000% higher than what was traded on 2 June 2005 (because zero shareswere traded that day!!).

If we double-click on the name of this share, it is graphed for us. We do this for AMBIT whichrose 82% in shares traded.



Shown here is this share with a Volume indicator inserted below. The volume on the 2nd was39 000 and on the 3rd it was 71 084 (move your Value Line to the relevant day), an increaseof 82.27%.

The final way to view the statistics is by the value of the trades done. Now we run the samestatistic test, but we base the test on the “Value” traded. The results are as follows:



The first few of the largest increase in the value of sharestraded items are have extremely high percentage values as thevalue on the previous day was zero!. We demonstrate how toremove these unrealistic by first ticking the “Ignore zero data”box and re-run the test.

The new result that ignore moved from a zero base are nowshown below:

Now, CLIENTL is listed as the true top mover, by percentage, based on the volume traded.The value traded on 3 June 2005 was 14 143% more than what was traded on the 2nd. Theshare price of CLIENTL was 30.00 on 3rd June.



If we double-click on the name of this share, it is graphed for us.

Shown here is this share with a Volume indicator inserted below. The volume traded on the2nd was 425 with the closing price being 30.50. On the 3rd 61 542 shares were traded andthe share closed at 30.00 (you can obtain this information by moving the Value Line to therelevant day). The value traded on the 2nd was R 12 962.50 (425 x30.50). The value tradedon the 3rd was R1 846 260.00 (61 542 x30.00), an increase of R1 833 297.50 or 14 143%.

The “Top Percentage Losers” option is identical to the conceptsdiscussed so far, except that you would highlight the shares that have

dropped the most in percentage terms relative to the previous day.This would be the largest percentage drop in price, the largest

percentage drop in volume traded or the largest percentage drop invalue traded.



We will now demonstratethe effect of the “Test thelast ... Periods” option. Asshown here we will do atest of the top percentagegainers by price and testthe last 15 trading days. Ifthe period was “1" aspreviously, it would look atthe most recent day’s data.Now, we will look back forthe biggest mover over thelast 15 days. This would bethe overall biggest moverand not the biggest one-daymover of the last 15 days.

The results of this test are:

ZELTIS had the biggest percentage price increase over the last 15 days having moved from1 to 4 cents. As it was discussed previously, we will look at IMR. IMR is currently 32 cents,but moved up from 23 cents on 13 May 2005 to 50 cents on the 25 May 2005, an increase of27 cents or 117%.



Double clicking on any share in the results window brings up a chart as shown here.

The above discussed rise can be clearly seen.

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