Prem, Tick, Trin, Vix, Etc.

"1. they are both non-range bounded MOMENTUM indicators"

Would the Tick not be range bound? Being as it is the difference between ADV and DEC issues on the NYSE it must be range bound to the # of stocks on the NYSE. If there are 2200 stocks on the NYSE, TICK must be range bound +2200 to -2200.
chasmann
 
I have been watching AOL the whole day, and out 50K shows up on the offer. Normally, 50K in AOL is nothing to write home about - something that you might have noticed and wrote in your journal somewhere else. But this time, I see the bids begin to disappear and the offer step down with the bids. Since I have access to bullets, I am gonna whack the bid and help the seller down.

Groovy, I got a .30c profit - but all of a sudden, I see a "clean up print" in AOL for 500K - and I have already seen 2M shares go by in blocks of 50K, etc. Whoa, I am now up .75c, but I see buyers come in. I am covering and going LONG!!

Cool, the seller seems to be gone, and the stock is being bid up furiously, and I got another .40c to show for it. Wait a minute, there is another 50K on the offer. Hmmm, not panicing yet, I will keep and eye on the "pace" of the buying. Wham, the 50K is lifted and we are going higher! Glad I didn't bail. Hmmh, there is a 75K offer - now the pace is definetly getting soft. I am getting out and looking to get in again - which way I have no idea. It could be long, or it could be short - I'll just wait for the tape to tell me...
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Great post Nitro. You summed up in a few short paragraphs what many authors take a complete book to say.
 
Originally posted by chasmann
"1. they are both non-range bounded MOMENTUM indicators"

Would the Tick not be range bound? Being as it is the difference between ADV and DEC issues on the NYSE it must be range bound to the # of stocks on the NYSE. If there are 2200 stocks on the NYSE, TICK must be range bound +2200 to -2200.
chasmann
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Normally, Tick only goes +/- 400, due to the nature that it is the net cumulation of the up/dn ticks.

Then on wide range days, you cn usually expect it to go between +/- 800.

Now, for extreme days, like melt down/up :eek: you will get +/- 1200.

So if you treat it as range bounded, then the issue of where are the boundaries becomes the question. If you use +/- 400, you will get kill when it hit +/- 800. If using +/- 1200, you do not get signals oftern enough for day trade ...

Thus relative referencing to the last swing within the day becomes very important. i.e. some sort of divergence, double bottom, double top, whatever you like to call it :cool:
 
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