A Trader's Cheat Sheet is a powerful tool that consolidates 50 widely-used technical indicators, projecting the precise price levels required to trigger each signal in the upcoming trading session. It is updated daily using the latest settlement or end-of-day data, providing a forward-looking view based on the most recent market close.
This guide explains how to interpret and apply the Cheat Sheet effectively, whether you're analyzing the current session or planning for the next.
Understanding the Cheat Sheet Layout
The Cheat Sheet organizes projected trigger prices from highest to lowest. Each level is color-coded: blue indicates a generally bullish signal, while red suggests a bearish one. These visual cues help traders quickly assess market sentiment and potential price movements.
The sheet is designed to reflect the next market session once a settlement price is recorded. It’s important to note that the Cheat Sheet may update ahead of other technical tools, like pivot point charts, since it relies on end-of-day settlement data.
Interpreting Price Levels and Signals
Price projections on the Cheat Sheet interact with the last traded price in meaningful ways:
- Blue below last price: Often acts as support, potentially limiting downward moves.
- Red above last price: Typically serves as resistance, capping upward movements.
- Blue above last price: Can confirm and support an ongoing upward trend.
- Red below last price: May validate and strengthen a downward trend.
These dynamics help traders identify potential breakouts or consolidation zones. When blue levels lie below current price and red above, the asset may trade within a narrow range. Conversely, blue above or red below often signals conditions ripe for breakout movements.
👉 Explore more trading strategies
Key Technical Indicators Explained
Moving Averages
The Cheat Sheet features moving averages for periods popular among experienced traders: 9-day, 18-day, and 40-day. These figures represent the exact price the asset must reach to be considered "above" each moving average threshold—valuable information not typically displayed on standard charts.
Pivot Points
Pivot points help identify intraday support and resistance levels. Calculated from the previous day's high (H), low (L), and close (C), they include:
- Pivot Point (PP): (H + L + C) / 3
- First Resistance (R1): (2 × PP) - L
- Second Resistance (R2): PP + (R1 - S1)
- First Support (S1): (2 × PP) - H
- Second Support (S2): PP - (R1 - S1)
These levels are recalculated daily and are intended for use in the current or next trading session, depending on market hours.
Standard Deviation
Standard deviation measures past volatility and projects statistically significant support and resistance zones. The calculation involves:
- Averaging the closing price over five periods
- Calculating variance from this average for each price
- Squaring each variance value
- Summing the squared values
- Multiplying by 2 or 3 for different deviation levels
- Dividing by the number of data points minus one
- Taking the square root of the result
- 1 Standard Deviation: Contains price action approximately 68% of the time (about 2 in 3 sessions)
- 2 Standard Deviations: Contains price action approximately 95% of the time (about once monthly breakouts)
- 3 Standard Deviations: Contains price action approximately 99.7% of the time (rare breakouts, less than yearly)
Stochastic Stalls
Barchart's proprietary stochastic calculations include:
14-Day %K Stochastic Stalls:
- Value1 = (3 × %K Stochastic - 2 × Raw Stochastic)
- Value2 = (14-Day High - 14-Day Low) / 100.0
- Stall = (Value1 × Value2) + 14-Day Low
14-Day %D Stochastic Stalls:
- Value1 = (3 × %D Stochastic - 2 × %K Stochastic)
- Value2 = (14-Day High - 14-Day Low) / 100.0
- Stall = (Value1 × Value2) + 14-Day Low
Practical Application Tips
The Cheat Sheet's most valuable signals typically occur when trigger prices cluster near current trading levels. Projections far from current prices may be ignored as less immediately relevant. A projection of 0.00 indicates the signal cannot be triggered based on current calculations.
Remember that different indicators have varying interpretations. While Fibonacci retracements have fixed bullish/bearish readings, moving average crossovers signal potential trend reversals.
👉 Get advanced technical analysis methods
Frequently Asked Questions
What is a Trader's Cheat Sheet?
A Trader's Cheat Sheet is a comprehensive collection of technical indicators that projects the exact price levels needed to trigger trading signals for the next session. It combines multiple analytical approaches into a single reference tool for efficient market analysis.
How often is the Cheat Sheet updated?
The sheet updates automatically upon receipt of each day's settlement price or end-of-day record. This ensures all projections reflect the most recent market data available for forward-looking analysis.
Why do some projections show 0.00?
A value of 0.00 indicates that based on current calculations, the technical indicator cannot be triggered in the upcoming session. This typically occurs when mathematical conditions cannot be met with plausible price movements.
How reliable are standard deviation projections?
Standard deviation levels provide statistically significant support and resistance zones based on historical volatility. While not perfect predictors, they identify ranges where price is likely to remain approximately 68%, 95%, or 99.7% of the time based on 1, 2, or 3 standard deviations.
Can I export Cheat Sheet data for analysis?
Yes, subscribers can export the data to Excel spreadsheets or CSV files for further analysis and record-keeping. This allows for deeper technical analysis and historical comparison beyond the standard display.
What assets qualify for Cheat Sheet analysis?
Any security with at least five days of trading activity generates a Trader's Cheat Sheet. This minimum data requirement ensures sufficient historical information for meaningful technical calculations and projections.