Barchart Opinion is a powerful tool that aggregates signals from multiple popular trading systems to provide a consolidated view on market positions. It analyzes historical price data through thirteen distinct technical indicators, offering traders insights into potential long or short opportunities for assets like the Ethereum/Tether (ETHUSDT) cryptocurrency pair.
This system processes up to five years of historical data. Each technical analysis calculation results in a buy, sell, or hold recommendation based on the asset's price relative to the indicator's standard interpretation. For instance, a price above a security's moving average typically indicates an upward trend, suggesting a buy signal.
For an Opinion to be generated, a security must have more than 200 active trading days. Futures contracts require over 100 active trading days. These Opinions are refreshed every 20 minutes using delayed exchange data, ensuring you have access to frequently updated analysis.
How Barchart Opinion Calculations Work
The core of the Barchart Opinion lies in its systematic calculation. The system groups thirteen technical indicators into three primary timeframes: Short Term, Medium Term, and Long Term.
- Short Term Indicators: Analyze price movements over the last 20 days.
- Medium Term Indicators: Interpret trends from the last 50 days.
- Long Term Indicators: Evaluate price action over a more extended period of 100 to 200 days.
- Trend Seeker®: This proprietary indicator stands alone, providing a composite view of overall price movement.
Each indicator's signal is assigned a point value. A 'Buy' receives +1 point, a 'Sell' receives -1 point, and a 'Hold' is assigned 0 points. The system sums these points for each group and divides by the number of indicators in that group to produce an average. This average is then converted into a percentage to form the final opinion for that timeframe.
The Overall Average signal, displayed prominently, is a composite of all thirteen studies. To present results in a clear and logical format, the overall opinion is factored, typically resulting in percentages in multiples of 8 (e.g., 8%, 16%, 96%), except for a perfect 100% buy or sell signal.
Key Components of the Opinion Analysis
Support and Resistance Levels
A crucial part of the analysis is the identification of support and resistance points. This section provides a snapshot from the Trader's Cheat Sheet, showing the last recorded price and six pivot points: three support levels (S1, S2, S3) and three resistance levels (R1, R2, R3). These pivot points are calculated using the previous day's high (H), low (L), and close (C) prices.
- Pivot Point (PP): (H + L + C) / 3
- 1st Resistance (R1): (2 * PP) - L
- 2nd Resistance (R2): PP + (R1 - S1)
- 3rd Resistance (R3): H + (2 * (PP - L))
- 1st Support (S1): (2 * PP) - H
- 2nd Support (S2): PP - (R1 - S1)
- 3rd Support (S3): L - (2 * (H - PP))
These levels are intended for the current trading session if the market is open or the next session if it is closed, helping traders identify potential entry and exit points.
Interpreting Signal Strength
Signal Strength is a long-term measurement that compares the current signal's power against its performance over the previous 200 trading sessions (100 for futures). This context is vital for understanding the conviction behind a signal.
The Overall Opinion Strength can be one of seven readings:
- Maximum
- Strong
- Good
- Average
- Soft
- Weak
- Minimum
A 'Maximum' strength rating indicates the signal is the strongest it has been in the historical period, while 'Minimum' signifies the weakest. A stronger signal, such as a 'Maximum Buy', is generally more stable and less likely to quickly reverse to a hold or sell compared to a 'Weak Buy'. Each of the thirteen underlying indicators also has its own Strength reading (Maximum, Strong, Average, Soft, Weak), except for Hold signals, which have no strength associated with them.
Determining Signal Direction
Signal Direction adds a dynamic, short-term element to the analysis. It measures the current movement of the signal over a 3-day period, indicating whether the trend is gaining or losing momentum.
For Buy/Sell signals, the direction can be:
- Strongest
- Strengthening
- Average
- Weakening
- Weakest
A 'Strongest' direction means the existing buy or sell signal is intensifying. For Hold signals, the direction predicts where the signal is likely heading:
- Bullish (toward a Buy)
- Rising
- Steady
- Falling
- Bearish (toward a Sell)
This helps traders anticipate potential changes before a full signal shift occurs. 👉 Explore more strategies for incorporating these signals into a comprehensive trading plan.
Practical Application for ETHUSDT Traders
The Barchart Opinion widget provides a structured breakdown essential for crypto trading. The Overall Average offers a quick summary, while the detailed sections allow for deeper analysis.
- Composite Indicators: Features the signal for the proprietary Trend Seeker®.
- Term-Based Averages: Each timeframe (Short, Medium, Long) shows its own average signal and includes relevant average volume data (20-day, 50-day, 100-day).
- Snapshot Opinion: This valuable widget tracks how the overall Opinion has changed over three recent periods—yesterday, last week, and last month—giving you a sense of momentum and trend consistency.
By synthesizing data from multiple indicators and timeframes, Barchart Opinion helps mitigate the risk of relying on a single analytical method. It provides a multi-faceted view of the ETHUSDT market, aiding in more informed decision-making.
Frequently Asked Questions
What is the difference between Signal Strength and Signal Direction?
Signal Strength is a long-term measure of how powerful the current signal is compared to its historical performance over hundreds of sessions. Signal Direction is a short-term (3-day) measure of whether that signal is currently getting stronger or weaker, providing insight into its immediate momentum.
How often is the Barchart Opinion for ETHUSTD updated?
The Opinion is recalculated and updated every 20 minutes throughout the trading day. However, it uses delayed data from the exchanges, not real-time tick data, for its calculations.
Why does the Opinion percentage appear in multiples of 8?
The raw calculated percentage is factored to present results in a cleaner, more logical format. This scaling results in final opinion values displayed as multiples of 8 (e.g., 16%, 64%, 96%), making the signals easier to interpret at a glance, though a 100% buy or sell remains unchanged.
Can I use Barchart Opinion as my sole trading signal?
While it is a powerful composite tool, it should not be used in isolation. The Opinion is based solely on technical analysis of historical price data. Prudent traders use it as one input within a broader strategy that includes fundamental analysis, market news, and sound risk management principles.
What does a 'Hold' signal with a 'Bullish' direction mean?
This indicates that the current consensus across the indicators is neutral (Hold), but the short-term momentum is shifting. The 'Bullish' direction suggests the signal is moving toward a potential 'Buy' configuration, acting as an early warning for a possible upward trend change.
Is there a minimum trading history required for an asset to get an Opinion?
Yes. For a security like a stock or ETF, it must have more than 200 active trading days. For futures contracts, the requirement is over 100 active trading days. This ensures there is sufficient historical data for the technical indicators to produce a reliable analysis.