Quote from easyrider:
Wally
Would you mind going into what you look for in Trin? I watch Tick because at times it actually leads and for it divergences but have always found Trin to lag and not of much use on short term charts.
I use TRIN mostly for confirmations of what TICK is trying to tell me. This is not a primary indicator in itself, but I use it in combination with TICK. The thing is that sometimes TICK and TRIN are both rising or both are declining and in a case like that I would not trust TICK at all. I would wait until this conflict is resolved. The best points to enter are when both TICK and TRIN hit the UBB (LBB for TRIN) or vice versa. I then wait for TICK to bounce off the UBB and for TRIN to start rising off the LBB.
It's good to watch the TRIN stochastics to see that it's oversold (or overbought). I use 5 min charts for both TICK and TRIN.
When you see something like that, your price chart is usually exhibiting some stochastics divergence on 3 min charts which is just another confirmation that a reversal is very close.
In this way you get higher probability entries compared to what you could get using only TICK.
UBB=Upper Bollinger Band, LBB=Lower Bollinger Band
I use BBs around 20 MA with 2 standard deviations.
Using TICK divergences is a good and well known idea, too. I use it, with at least 30 min separation between TICK extremes, the bigger the time separation the better.
There are other ways to use TRIN too, but since I am not sure how reliable they can be, I would not like to comment on them.
Hope this helps.
wally_
