Most traders and investors using Canadian stock charts think about how to trade Canadian stocks. It is not necessary to trade directly on Canadian exchanges like TSX in Toronto. It is also possible to find best Canadian stocks and charts also on the US equity market.
Trading of best Canadian stocks on US exchanges has one advantage for US dollar based investors. It decreases a currency risk. These stocks are traded on US exchanges and their price is quoted in US Dollars.
It is also possible to go directly to the Canadian stock market and trade it directly. I would like to recommend hedging currency exposure with Forex currency trades or using currency ETFs. A good online broker should provide such options for you.
How to create Canadian stock charts
I would recommend these steps to create Canadian stock charts. I use the Amibroker as my analysis software. As the first step you need to select these stocks. One possible step is to find a screener which selects companies traded in the USA but based in Canada. The free screener site – Finviz – allows you to produce such a screener. Just go to the menu option
“Screener” and in Descriptive list find option “Country” and select Canada.
It will produce a list of many companies. Just export them into an Excel file. When you open this file in Excel you can cut and paste tickers and import them into one watchlist in Amibroker. Then you can scan them one by one to find the best Canadian stocks.
How to find best Canadian stocks to trade
My method is simple. I like to find shares with the best relative strength to the current market. You can compare it to the S&P500 Index. Here is the current situation in the S&P500 index.
I used more FinViz screener features and found the best Canadian charts with the relative strength for long trades and with the relative weakness for short trades. Check CNI, LULU charts as best Canadian stocks for long trades.
The IMAX chart is the opposite. It shows a weakness but it could be one of the best Canadian stocks for short sell trades in the near future.
The situation in the charts above does not offer an immediate trade setup but it is good to monitor all of them for a possible pullback and set up an entry accordingly.
Use Canada ETF to track Canadian stock market
I prefer to trade on US exchanges. I also trade international indexes and markets on the US exchanges using international etf shares. These exchange traded funds are a better way to invest into international stocks and markets. It is possible to trade best Canadian companies using iShares Canadian ETF with symbol EWC.