We've recently received several inquiries concerning the use of the words "study" and "formula" as they relate to the Advanced Charting available on eSignal as of 7.0. So, we thought we would re-cap our FAQs on the subject in this month's issue of the Exchange, along with two other questions related to the 7.0 enhancements.

What is the difference between a study and a formula?
Technically, there is no difference between the words "study" and "formula." Both words are used in the industry to refer to technical analysis/technical indicators that, when applied to the "raw" market data, help the trader make sense of the numbers (that is, buy or sell, go long or short?). In fact, we use the word "study" for all of the types of technical analysis we now have available in eSignal.

In reference to eSignal, we have four types of studies, three of which are hard-coded (that is, you cannot change the programming behind them) and one type of study (called formulas or formula studies) that are written in JavaScript that can be freely edited and reprogrammed. So, when you see the word "formula," you'll know that the study is programmable.

How are the various types of studies, formulas and tools differentiated in eSignal?
The analytical charting tools in eSignal are divided into the following categories:

Basic studies (standard charts) — The 25+ studies we've had available in eSignal since version 6.3 and that continue to be available in 7.0. These studies are hard-coded, so users cannot change the programming behind the study. They do allow some basic customization of the settings.

Basic studies (advanced charts) — The 25+ hard-coded studies available as of 7.0 on which some of the settings allow for more customizing than the standard set. The programming behind these studies cannot be changed.

Premium advanced studies — These are proprietary technical indicators we are adding as of eSignal 7.0 by partnering with third party providers. Subscribers can add these studies to their eSignal subscription for an extra fee (examples: Advanced GET studies, Jurik Research, Jan Arps Traders' Toolbox Crown Jewels and more to come). These are also hard-coded, so the programming cannot be changed.

Customizable formula studies — This term refers to the more than 90 (soon to be more) formulas included with eSignal 7.0, the programming of which can be modified at will using the JavaScript-based editor function now part of eSignal.

Interactive line tools — The Fibonnacci retracement and extension, linear regression and trend line drawing tools available as of 7.0

Formula engine — The JavaScript available as of 7.0 that allows users to change the programming behind the 90+ provided formula studies or develop their own studies

Can I put a moving average on the Volume Histogram?
There's a VolumeMA.efs formula in the Library folder. You can add it by right clicking on the chart, going to Add Formulas and selecting the Library folder.

This is a 13 bar average by default, but you can change it to any number you like in the Edit Studies window. Just right click on the formula after you've added it and select Edit Studies. Here, you can place the number for the Value of the nInputLength and then click OK. You'll know it's correct because the label on the chart will now have that number in parentheses after it.

This formula only shows the MA, but you can merge it with the Volume study if you want to see it on top of the Volume study. To merge, make sure you also have the Volume study on the chart. Hold down the Shift key on your keyboard and then drag one of the two studies on top of the other with a left mouse drag and let go. To be sure you keep these studies set up correctly, please save the chart or save a Style Template once the chart is the way you want.

Do you know of any eSignal users groups on the web?
Yes, several eSignal user groups have sprung up on the Internet. Two of the ones we find the most valuable are listed below.

The first one is Yahoo, and eSignal is the owner of this group. We invite you to sign up and be a participant.
http://groups.yahoo.com/group/eSignal/

This next group is on the Silicon Investor website. You can read messages on this site, but, to post here, you must become a member, and this involves paying a fee.
http://www.siliconinvestor.com/stocktalk/subject.gsp?subjectid=28157