Indicators or Internals?

They are actually my primary tool. I don't use the volume any more just the issues.

Here is TS code:


[LegacyColorValue = true];
[SameTickOpt = True];

inputs:
AdvIssues( Close of data1),
DecIssues( Close of data2),
OB(.67),
OS(.33),
Avg(1);

value1= advissues;
value2= advissues+decissues;
value3= iff(value1=0,0, value1/value2);

Plot1( Value3, "A/D%" ) ;
Plot2(ob,"OB");
plot3(os,"OS");
Plot4(.50,"CL");

{{ Color criteria }
if Plot1 > ob then
SetPlotColor( 1, Darkgreen )
else if Plot1 < os then
SetPlotColor( 1, darkred) ;}



In a normal market (not a trend day) with no real news or drivers, 65-70% and 30-35% indicates overbought or oversold. Use this to determine if you want to fade the highs or lows.

Trend days have values in excess of 75-80% AND a reason to exist such as News, reports. Days with drivers and with ad line showing trend day then the market will close on its highs almost always. Lows are a little trickier. Ad line less then 10% with news will generally close on lows.

If you have a weak market around 35% and news but bogus news, you know the type that everyone knew anyway, then you need to expect a ramp job in the last hourly if market has been generally trending down all day.

Falls from the top in the last hour with strong ad lines (over 80) are rare but do happen. The clue is lower volume and bogus news for the day and big reports coming out next day.

John
 
Quote from tradingbug:

John....not a TS user here.....is that the pseudo code for the A/D ratio?
More...

inputs:
AdvIssues( Close of data1),
DecIssues( Close of data2),
OB(.67),
OS(.33),
Avg(1);

Advissues are the advancing issues in ts symbol is $adv
Decissues are the declining issues in ts symbol is $decl

$adv/ $advc + $decl gives a "bullish %" value.

I use % based stuff as much as I can because absolute readings are harder to deal with for me.

John
 
Quote from tradingbug:

Good article on Tick from Linda Raschke's site. Hope you find it helpful.

http://www.lbrgroup.com/images/terry_april_2002_AT.pdf
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If you have a meandering market with no news and neutral internals then tick readings of 0-100 or so at the high is a tick that indicates the market is not going go much higher at the moment so it can be faded. However, I only do it if I think its going back mid range. Not as scalp.

If same thing but market is on its lows with a tick reading around zero maybe a little negative then that is not the tick of a market about to blow through support.


John
 
One set-up that I like to initiate a position (when I spot it and depending on which timeframe the set-up occurs on) is when my [customized] stochastic is at oversold levels and the TRIN indicates an extremely over-bearish level such as 2.0 (generally anything above 1.5 in my book indicates too bearish).

Of course, as with anything trading-related, this is situational but at least it confirms my other technical indicators....i.e., MACD is in an uptrend, ROC is above 0, all my MAs are fanning bullishly, etc.......

I trade with a multi-timeframe approach so I only get into 66% pattern set-ups.

Good Trading!
 
Quote from Gil Young Jo:

One set-up that I like to initiate a position (when I spot it and depending on which timeframe the set-up occurs on) is when my [customized] stochastic is at oversold levels and the TRIN indicates an extremely over-bearish level such as 2.0 (generally anything above 1.5 in my book indicates too bearish).

Of course, as with anything trading-related, this is situational but at least it confirms my other technical indicators....i.e., MACD is in an uptrend, ROC is above 0, all my MAs are fanning bullishly, etc.......

I trade with a multi-timeframe approach so I only get into 66% pattern set-ups.

Good Trading!
More...

here is a video by Hubert Senters who also goes over 1.5 and 2.0 as poosible areas to look for a reversal long. Are you familiar with tick hooks described in this video?

http://www.cmegroup.com/education/i...arket-internals-to-read-market-direction.html
 
Quote from tradingbug:

I would love to find what internals you focus on and how one would best learn the ins and outs of using them for daytrading. The main internals i see that would be useful are A/D, premium, Tick, Trin, and upvol/downvol. Are there any others that you guys use?
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Years ago, I was taught to have the following "internals" up at all times: TICK, TIKI, TRIN, PREMIUM, P/C RATIO, and VIX.

But guess what? It didn't help my bottomline. My rite of passage as a trader came when I threw all of those useless indicators out the window. These days, I don't even glance at the VIX. Everything is based on PRICE alone. As they say, price is the king!

(I dunno if this might be of any help, but if you're interested in a system devoted strictly to price action, I encourage you to look into this thread: Unholy Grail to Success.)

Good luck!
 
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