High Frequency Trading Tips – Is Ansys (ANSS) Stronger Than The Market?

Swing Trading Tips for ANSS Ansys

ANSS is Looking Bullish!

 Who is Ansys?

Ansys is the leading provider of engineering simulation software systems and face the majority of their competition from small nich type enterprises.  This means that they are like microsoft windows among the Oracles, Mac users, and linux proponents in their field.  They are the only broad based supplier in the industry and as such, can pretty much charge whatever they want!  (this is good for business) .

ANSS profits of some great revenue streams that include annual and perpetual licenses and maintenance charges.  As well, ANSYS says they have launched a student version of robust simulation technology for U.S. college students.  The price is an affordable $25 per year and the software was beta tested by mechanical and aerospace engineering students at Cornell Univeristy.

Looking at the ANSS chart from 2000 to present we see a few things.

First:  Its an obvious up trend. (duh)

Second:  Its only major pull back was during a major economic drop that affected every stock.  Not only this, but it recovered 4 years before the overall market, so you could say its 4 years ahead of the curve.

Third: in early 2010 it broke through 40 and retested positive for support, then it broke through the half century mark at 50 and retested strong again.  At 60, it wasn’t quite ready, but retested strong on the pull back after its second breakthrough above $60.  Now we are at $70.

Forth: Its at all time highs.

 

As we have mentioned earlier in our article on high frequency trading strategies, time horizon and the frequency of set up is of the utmost importance.   Looking at the long term horizons first like the weekly and daily charts is one of the best trading tips for beginners and intraday daytraders when developing forex or stock market strategies.  Now that we have done that, we can take a look at trading opportunities in shorter time frames.

 

The ANSS 1 Year Chart

trading tips on the anss 1 year chart

 

Here we can see that although there was support after anss gapped through the $60 mark, the stronger support was at the $56 level.   There was also very strong volume in June at the $60 level (not shown on chart).  this could mean the ANSS was on a high frequency trading firms list of companies for buying strategies.  Of course, without knowing what the algorithm and software are programmed to do, we can’t say for sure.  However, since we already check that this was a strong long term up trend, we know that an HFT buying program would be safer than a short selling one, and thus more likely to be able to get out of a long trade as profitable.

For example, hft companies could be buying long term for a hedge fund and using the market fluxuations to profit from something they are doing anyway, or reduce the overall average price of their position.

Closing above 70, a short term trader could go for a 3 – 1 gain with a stop loss just below $70. They could also wait for a rise and pull back to the 68-70.5 mark before taking a long through 80 for a potential 2 – 1 or 3-1 trade with a 3-5 point stop loss, or even a 5-1 trade with a 2 point stop loss.

Remeber before taking any position in the stock market, you consult a professional or do your due diligence.   These tips and ideas from the comment sections are not meant to be considered advice, but instead, a place to point you towards reaseach opportunies.

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