No, the broad market index follows the components of it. That's what an index is. An average of the movement of all of it's individual components. Ergo, an index follows it's children. It is not the other way around.
Is trading easy?
- Thread starter nooby_mcnoob
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No, the broad market index follows the components of it. That's what an index is. An average of the movement of all of it's individual components. Ergo, an index follows it's children. It is not the other way around.
FFS.. I'm talking about a graphical leading indicator for heavy weighted tech stocks.. not a thought experiment.. smh..I'm somewhat of an expert on coloured bars you know
Except when things get reversed. Often.
I guess you are saying that in jest. If not, after posting 2nd screengrab, I'm smh.FFS.. I'm talking about a graphical leading indicator for heavy weighted tech stocks.. not a thought experiment.. smh..
Shake your head all you want. I know what I know and you don't care about "stonks" remember?
Huh? Wha? Yer smoking the sunny flowers.
Maybe wrb could consult you on how to copyright or trademark the term coloured bars? He's somewhat of an expert on suchthings so it would seem, lol.
Here is the only way you can use stocks and indexes.
RELATIVE STRENGTH.
During the day, I keep an eye on https://www.tradingview.com/heatmap...set=SPX500&group=sector&size=market_cap_basic
If one of the big guys starts showing strength where it was before showing weakness while the index is weak, I might look at that as a divergent indicator. Conversely, same thing. There is nothing else you really can do IMO.
Sometimes, like today, I just stare at the chart and drool thinking of all the other things I could be doing with my life instead.
RELATIVE STRENGTH.
During the day, I keep an eye on https://www.tradingview.com/heatmap...set=SPX500&group=sector&size=market_cap_basic
If one of the big guys starts showing strength where it was before showing weakness while the index is weak, I might look at that as a divergent indicator. Conversely, same thing. There is nothing else you really can do IMO.
Sometimes, like today, I just stare at the chart and drool thinking of all the other things I could be doing with my life instead.
tomi can't see what is right in front of him. You too?
The 2nd screengrab plainly shows $NDX retraced a lot less of its drop today than APPL showing it was weaker than APPL and the rest of the sum of its parts. So when it started back down so did AAPL and just about every other of the 100 components that make up the index.
Oh BTW WhyTF did they even gap down.
Oh that's right, because the NDX futures NQ came into the open dowwwwn. Tail wagging the dog.
You might try scalping instead using Medved Trader and one good tech stock.. because this is certainly not the leading indicator I use that shows predictable indication what a 1 minute candle is going to do..