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Market Chameleon is a financial market research tool for finding information and trading signals on stocks and options. The Market Chameleon research platform enables traders and investors to uncover trading opportunities with intraday and end-of-day market data, press releases, earnings, dividends and more that are used to calculate volatilities, Greeks and other important risk metrics. The Market Chameleon tool was developed by a group of former traders from the exchange floor with the main purpose of helping serve the trading community with actionable and easy to interpret insights into the financial markets. In this Market Chameleon Review, I will take a look at the key features and how it works. Hopefully this can help you to decide if this trading software can help you with your daily trading activity.
What is Market Chameleon?
Market Chameleon is a market research tool that aims to simplify trading and provide high probability trading signals that is backed by real-time information. It has an intuitive and user-friendly dashboard where you can filter all of the necessary information to help make quick stock and options trading decisions. There are lots of educational materials on the website to help you understand how to use it and plenty of data available on the platform to analyse. It has many handy features such as custom watchlist filters and option contract downloads, you can screen through thousands of trade alternatives in a matter of minutes to find the best positions for your investment strategies.
How does Market Chameleon work?
The software saves millions of stock and options data points with which it conducts complex calculations to try and find trade ideas with possibly high probabilities for the user, according to their own filters. I like the fact that the Market Chameleon platform combines past, historical and forward-thinking data in its market analysis as this helps to make sure that it covers all basis. MarketChameleon.com runs directly in your web browser without needing to download or install any additional software. Currently, a Web/REST API is not available although premium users can download csv data files.
Historical data is information about a company’s past, such as its revenues, earnings, and stock price action. The historical return of a financial asset, such as a bond, stock, security, index, or fund, is its past rate of return and performance. The historical data is commonly used in financial analysis.
The Market Chameleon system analyses years of historical data and stock behaviour under different market conditions so that it can create theoretical values and probabilities as trading benchmarks. The database has daily option prices going back to 2014, daily stock prices going back to 1998, and earnings releases going back to 2009.
The Historical Tools and Data includes:
- Historical Volatilities dating back over 3 years
- Historical Dividends and Stock Splits
- Historical Earnings and their price effects
- Equity Prices and Volumes dating back over 5 years
The system is constantly scanning current data in order to try and detect potential price levels where the current market prices have diverged from theoretical values.
Divergence is when the price of an asset is moving in the opposite direction of a technical indicator, such as an oscillator, or is moving contrary to other data. Divergence warns that the current price trend may be weakening, and in some cases may lead to the price changing direction.
The Present Time-frame Tools and Data includes:
- Intraday Market Data — quotes and trades for market-traded securities and their options
- Home Feed of actively-updated market events
- Full Option Chain with prices and volumes
- Analysis of today’s biggest movers
- Volume Reports
- New listings and notable news announcements
- Press Releases from the world’s largest companies
Forward Looking Data
The Market Chameleon trading tool compiles data from press releases, investor relations websites and SEC filings in an attempt to detect forward looking possible events that can act as a catalyst for market movements such as:
Upcoming earnings: Earnings date is the date of the next release of a company’s financial report. Earnings report date is the date of an official announcement about a company’s profitability for a specific time period.
Dividend forecasts: Dividend Forecasting offers independent estimates for the amount and timing of individual dividend payments on stocks globally.
PDUFA dates: The PDUFA date refers to the date the Food and Drug Administration (FDA) are expected to deliver their decision whether or not a approve a company’s New Drug Application (NDA) or Biologics License Application (BLA).
Investor meetings and conferences: These bring together corporate leaders, financial sponsors and institutional investors to explore market and sector trends.
Sentiment analysis: Market sentiment analysis is the study of what other participants within the market are doing. Let’s take retail traders as an example. If the majority of retail traders are buying a currency pair then the sentiment is said to be a buying sentiment. If the majority of traders were selling a currency pair then the sentiment would be considered a selling sentiment.
Implied volatility: Implied volatility is calculated by taking the observed option price in the market and a pricing formula such as the Black–Scholes formula and backing out the volatility that is consistent with the option price given other input parameters such as the strike price of the option.
Risk analysis: Risk analysis is the process of assessing the likelihood of an adverse event occurring within the corporate, government, or environmental sector. Risk analysis is the study of the underlying uncertainty of a given course of action and refers to the uncertainty of forecasted cash flow streams, the variance of portfolio or stock returns, the probability of a project’s success or failure, and possible future economic states.
About Market Chameleon
At MarketChameleon.com, they provide a unique online trading tools for investors and traders around the globe who have an interest in both stocks and options. Their goal is to be the premier provider of options information, using both stock fundamentals data as well as options analytics to try and make sure that they provide better market insights for those who wish to make informed investment and trading decisions.
Options have become a popular trading instrument over the years. Options data and analytics such as option chains, Greeks, open interest and sentiment triggers, can all help to provide useful forward-looking indicators for stock and options traders alike. They offer insights on upcoming profitable trading actions, particularly when combined with fundamentals such as earnings projections, dividend actions, etc.
Despite how useful it can be, finding readily available data can be a very difficult and expensive task especially for the average retail investors who want reliable data without needing to make the commitment to a specific trading broker or investing platform. This is the gap that Market Chameleon are looking to fill. They don’t charge high fees or require long term subscriptions like some other data services and the information is not overly complicated, making it easy to interpret for users of all experience levels.
Market Chameleon provides you with a low cost, easy to use trading tool what has a minimal 15-minute market delay. The software combines both option analytics and stock fundamentals in the same easy to read displays, with a choice between both tabular and graphical views to provide rapid and informed trading insights.
How much does Market Chameleon cost?
If you are interested in building and performing your own personalised data analysis, MarketChameleon.com provides premium subscribers with the option to download a vast array of data in just a few clicks into industry standard spreadsheets such as Excel. This can be especially useful to investors and analysts who have more complex requirements when it comes to market analysis.
That being said, you don’t need to be a premium member as free registration still lets you customize your Market Chameleon dashboard with your own stock watchlists. Users can receive free email updates or you can subscribe to one of the Premium plans which allows access to further insights.
There are a variety of different premium packages you can choose from, including premium access free for one week and the following:
- Stock Trader $39 per month
- Options Trader $69 per month
- Earnings Trader $79 per month
- Total Access $99 per month
Guides & Tutorials
I feel like the anticipated complexity of the Market Chameleon software may deter some users. When you visit the official website, I can seem like there is too much choice. There are multiple tabs, all with access to a different aspect of this trading tool. Whilst that can be great as it gives diversity and ensures there are plenty of features, it may seem overwhelming for some people. Thankfully, there are video tutorials and guides that can help explain in an easy to understand format how Market Chameleon works.
Market Chameleon Conclusion
When it comes to trading and investing tools for analysing stocks and options, Market Chameleon is up there with the very best, at a fraction of the price. There is no specific trading platform or brokerage firm required, nor are there any long subscriptions. You can simply use any of the vast range of features and functionalities available in this innovative trading tool in a way that meets your trading style with a brokerage firm of your choice. It makes you wonder why brokers don’t include such in-depth market analysis tools by default.
I would say that the platform could be overwhelming to some users although the support team are readily available to help you if need be whilst there is a good selection of educational resources to learn more about its capabilities. If you have an interest in complex market analysis and want help with making informed financial decisions, then Market Chameleon is certainly worth taking a closer look at. They do offer a 7-day free trial so you can try it out risk free. If you do not feel that it will help you achieve better trading results, you can cancel before the trial is over and there will be no charge.
Self-confessed Forex Geek spending my days researching and testing everything forex related. I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more. I share my knowledge with you for free to help you learn more about the crazy world of forex trading! Read more about me.