Market Internals

[M4-1]

Please correct me if I'm wrong - but is not all market internals based on the cash index/components? I.e., NYSE TICK is calculated from upticks/downticks on NYSE listed stocks?

I haven't made any decisive conclusions yet, but it's my impression that all these relationships and spreads are fleeting and inconsistent, so I'm questioning the value of using them in real time as you want something which is actionable and which delivers consistent results. If it only works some of the time? What's the use? Of course, you could use it to be very selective, i.e., only trade when everything lines up perfectly. But that will also mean that you'll miss out on a lot of action.

I do plot the NYSE TICK and surely it can offer some interesting signals at times, but I may decide on simply erasing it from my charts. I look at the Up/Down volume too. Prior to this year, divergences/convergences with ES/NQ often offered very valuable clues, but as they decoupled earlier this year the value have been greatly diminished.

Then you have Hershey's claim (and many of his students still insist on this today) that YM always leads ES. Clearly not the case.

i used to chart the NYSE TICK on 2 day 5 min bars..with lines drawn at 0, + & - 500 and + & - 1200..i found it to be ok on keeping your bias for the day..i.e long or short..i might resurrect it and see if any value now..as i have moved away from IB TWS charting and use MT5 with AMP futures.. although i can still route orders to my IB account using MT5 chart trading and DOM trading..as MT5 with AMP use CQG data feed..i have access to NYSE TICK..so will set it up again and keep eye on it in relation to current buzz words !

 

[M4-1]

Like a swing trade.

or..like a short term trade you didn't keep an eye on..which then turns into a short term swing trade..which then turns into a position trade..i wonder how many traders still practice that unwise approach..which if course can easily come right with volatility..and using the MES..for..after all..is that not what some market makers do..or do they all hedge..i doubt it..for if they are relying on spreads and cut in commissions all the time..how will they make some big money..i have never seen how they actually do it..but would like to find out exactly.. anyone know for sure with some examples?

M3

 

[Laissez Faire]

For the NYSE TICK - I plot + 800/-800 and a zero line. Usually, I'll just pay attention to divergences or extreme readings. Here's yesterday's LOD.

When the ES made its LOD (which snapped back right up) - the NYSE TICK was already trending higher and putting in higher lows.

I won't trade this in isolation, but it's a supporting parameter which may give me some added confidence in a trade.

 

[QTrader20]

Please correct me if I'm wrong - but is not all market internals based on the cash index/components? I.e., NYSE TICK is calculated from upticks/downticks on NYSE listed stocks?

I haven't made any decisive conclusions yet, but it's my impression that all these relationships and spreads are fleeting and inconsistent, so I'm questioning the value of using them in real time as you want something which is actionable and which delivers consistent results. If it only works some of the time? What's the use? Of course, you could use it to be very selective, i.e., only trade when everything lines up perfectly. But that will also mean that you'll miss out on a lot of action.

I do plot the NYSE TICK and surely it can offer some interesting signals at times, but I may decide on simply erasing it from my charts. I look at the Up/Down volume too. Prior to this year, divergences/convergences with ES/NQ often offered very valuable clues, but as they decoupled earlier this year the value have been greatly diminished.

Then you have Hershey's claim (and many of his students still insist on this today) that YM always leads ES. Clearly not the case.

It's clearly that someone does pay attention closely to charts. I don't see how one can develop any edge from whether Futures or Cash index leads.

Besides, I mentioned in @sstheo's thread before that using market indicators to gauge market sentiments will lead someone into a dangerous path. Of course, those market internals work occasionally. The problem is that if they don't work consistently, it does more harm than good to use them because you can't build your confidence to trade. That said, you'll end up to be one of those traders who get stuck to trade micro instruments for years or forever.

 

[QTrader20]

For the NYSE TICK - I plot + 800/-800 and a zero line. Usually, I'll just pay attention to divergences or extreme readings. Here's yesterday's LOD.

When the ES made its LOD (which snapped back right up) - the NYSE TICK was already trending higher and putting in higher lows.

I won't trade this in isolation, but it's a supporting parameter which may give me some added confidence in a trade.

View attachment 245060

There is much much much better way to figure out small, medium or big mean reversion if one knows well about market structure.

 

[QTrader20]

This is what I posted under @sstheo's thread.

 

[syswizard]

...if one knows well about market structure.

Can this be quantified or is it strictly visual ?

 

[KCalhoun]

I find using the TRIN is critical

Near 1 I minimize trading, <.7 long bias, >1.5 short bias

 

[syswizard]

I find using the TRIN is critical
Near 1 I minimize trading, <.7 long bias, >1.5 short bias

Thanks for that Ken...especially if it can be used to change bet-sizing.
I see we have the TRIN for the Nasdaq 100, Russell 2000, and the S&P 500...so that covers NQ, RTY, and ES.
Too bad there isn't something like that for GC and CL....LOL !

 

[M4-1]

For the NYSE TICK - I plot + 800/-800 and a zero line. Usually, I'll just pay attention to divergences or extreme readings. Here's yesterday's LOD.

When the ES made its LOD (which snapped back right up) - the NYSE TICK was already trending higher and putting in higher lows.

I won't trade this in isolation, but it's a supporting parameter which may give me some added confidence in a trade.

View attachment 245060

if you straighten up that red line you have even better reason to put on a low risk trade !

the vertical line is also important !!