what is this system about.
VIX and TICK - how to use and for what ?
- Thread starter richk
- Start date
what is this system about.
Hello, I did an article for active trader mag in April 2002, "Intraday Trading with the Tick" I think you should be able to get a solid foundation about using this indicator from this article.......
This is the online version
http://www.activetradermag.com/terry.htm
http://www.chris-terry.com/HTMLobj-625/terry1.pdf is the adobe version.
** Figure 2 & 4, the time frame on the bar chart & tick are different, they are supposed to be the same as the bar chart, Active trader made a small typo in them**
Okay, the TICK yes, fine to use intraday.
The VIX, could be used 2 different ways, off a daily chart, we all know that a HIGH VIX, is showing FEAR & LOW vix showing complacency, extremes. Intrday, a LOW VIX in a UP trending market is showing confirmationn of that trend, where as a HIGH VIX in a downtrending market is confirming the FEAR or selling........BUT 80-% of the time I do not look at it & isnt really needed, I look at the TRIN in lieu of the VIX, this shows the BUYERS vs SELLERS & also the net Advance to Decliners , this to me tells me more than the VIX.........but to each his own.........but check out that article for the TICK, I hope its what your looking for.....Christopher Terry
Hey.......if you care to share, thats what its all about, then share with the others
I also use the tick in several other ways, both short & longer term.
The intention of the article was to open up some ideas for those new to the indicator & a few simple ideas how to use it realtime.......
I dont really get paid for articles .......they give a $100-200 bucks thats it, no financial reward for the efforts.
Christopher Terry
I also use the tick in several other ways, both short & longer term.
The intention of the article was to open up some ideas for those new to the indicator & a few simple ideas how to use it realtime.......
I dont really get paid for articles .......they give a $100-200 bucks thats it, no financial reward for the efforts.
Christopher Terry
Thanks, I do not watch the SPIN, in regard to the VIX going overbought,,,,,,,,I would be careful of just looking to short, best way to use that is a confimation tool as to what the chart patterns telling you, do we see a top ?? hmmmmm,do we have any ? failed continuation patterns ?? price divergnces within the indexes?? reversals patterns , head& shoulders tops or maybe a lower high on the last rally, some momentum divergnces ?? or do we have hourly consolidation after a big rally & breakout ffrom the recent daily pivot 936.50+- & looking for a new leg higher as long as we see the indexes holding togther sidewways ??........these are questions you have to ask before worrying about the VIX..........let the price show you what the VIX will eventually confirm.......Chris
Like the VIX, the TRIN is a confirmation tool to what the markets already doing........Mid thursdays wee seen the markets start to get chooppy after the last 5 min bullflag made a test up, then we open Friday & for 1st hour, continued contraction & confirming a consolidation day, right ??...........Then looking at the TRIN was around 1.00+- 10 to 20 pts all day long,,,,,,,,,rge AD line also, was +- 200-300, the TICKS where in a -500 range all day,,,,,,,,,,so the game was not to sit & watch these indicators already telling you what the price is, the bigger pic game was to watch what matures & look for a possible breakout higher early this week, fist selloff down to 925+- buy............breakout 940 + hourly breakout UP...........may have continued consolidation & we will see this monday, sell rallies into res, buy selloffs into supp........but for now, its a waiting game.,the TRIN........I always watch it BUT wil confirm what the price is telling you anyway, all the confimation the better I always feel...Chris ( see indicators from friday attached)