What is EFS?

[johntherevelato]

Hi, newby question here:

Would I be right in thinking that the purpose of EFS is to write programs that identify shares that meet certain criteria that might then lead to movements in share prices from which one can obviously profit, either long or short.

It's just that it seems complicated and I don't want to get too involved unless I know what I'm getting myself into.

Thanks.

[ckryza]

You can use EFS to create your own custom indicators (or modify existing indicators that are already in EFS form) and you can also use EFS to create trading systems of varying degrees of complexity. Any EFS script that you create, be it an indicator or some form of trading system or signal generator, can then be loaded into any eSignal Advanced Chart, and the logic you have implemented will be applied to the security that you are currently plotting in the chart.

What EFS CANNOT be used for is to create scanners. By scanner I mean a system that will search through a basket of securities and identify those securities that meet your criteria.

Chris

[johntherevelato]

OK, I think I have an idea of what you're saying.

Let's take a top share in the DJIA - say, MICROSOFT CP.

One could create an EFS study that looks at the current share price against its MA and EMA over a six month period. If the current share price were to push through both the MA and EMA lines, then this would be a reason to take a long position.

Correct?

[ckryza]

Yes, exactly.

Chris