Info!! Altitude Trading Technique Posts

During most of the writing of the blog, I was also engaged inwards my ain trading as well as institute several tools as well as techniques to live on useful.  Below are links to posts I wrote virtually these methods.  If you're interested inwards trading psychology posts, you'll run across relevant links on the Forbes page. 

If y'all can't uncovering the theme you're looking for, y'all mightiness endeavour Googling "" as well as the topic.  That volition frequently clitoris upwardly a few posts, which therefore link to related posts.
  

TOP TRADING TECHNIQUE POSTS:

*  Many Early Posts on Indicators Can Be Found Here

*  This early on site also contains articles on trading methods; run across these articles every bit well

*  Using the NYSE TICK

*  Understanding Market Volume

*  Unique Tools for Processing Market Information

*  Understanding Stock Market Breadth

*  Using Upticks/Downticks for the Dow Stocks

*  Using Relative Volume to Identify Short-Term Opportunities

*  Using Relative Volume to Trade as well as Fade the Market

*  Tracking Instantaneous Demand as well as Supply inwards the Market

*  Tracking Multi-Day Supply as well as Demand

*  Using Breadth to Track Market Strength/Weakness

*  Gauging Market Strength With VWAP

*  Evaluating the Market With Intraday New Highs as well as Lows

*  Why Relative Volume is Important

*  The Importance of Volume inwards the Market

*  Tracking the Market With U.S.A. TICK

*  Using Indicators to Question Strong as well as Weak Markets

*  Identifying Trend Days With Intraday New Highs as well as Lows

*  Catching Trend Days inwards the Market

*  Four Keys to an Upside Trend Day

*  More on Upside Trend Days

*  Identifying Downside Trend Days

*  More on Downside Trend Days

*  Reading Market Cycles

*  Trading Market Cycles

*  Sector Correlation inwards the Stock Market

*  Vol of Vol as well as Trading

*  Time as well as Trading Psychology

*  Tracking Markets inwards Event Time

*  Understanding Markets inwards Event Time

*  Adapting to the Market's True Clock

*  Sites Useful inwards Preparing for Trading

BACK TO THE TRADERFEED HOME PAGE

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Info!! How Relative Book Helps Us Merchandise Too Fade Marketplace Movement

This is the 6th post service inward the serial looking at indicators that I accept flora useful inward tracking the market's short-term behavior.  Previous posts inward the serial are linked below.  In this post, nosotros expect at a mensurate I telephone yell upward relative volume.  In the nautical chart above, relative book (red line) is plotted against SPY for Friday, 12/30/16.

Relative book is genuinely a ratio of electrical flow one-minute book to the average book for that minute.  Thus, for instance, if the electrical flow book at 9:39 AM is 200,000 shares too 9:39 AM book averages 100,000 shares, the relative book is 2.0.  When nosotros stance book inward this manner, nosotros tin apace run into if marketplace moves are supported past times important participation.

Notice how relative book started the twenty-four hours good elevated too stayed elevated for almost the session.  This is truthful for many tendency days:  it is the additional participation of directional players that sustains the marketplace move.  The trader watching relative book early on inward the twenty-four hours had an first-class say that this was abnormally high participation--and it was skewed to the downside.

Conversely, days inward which relative book persistently stays below 1.0 are ones inward which moves cannot attract meaningful participation.  This leads to frequent reversals of those moves inward a make environment.  Very often, we'll run into relative book tail off equally marketplace moves mature, equally novel high or depression prices neglect to attract added participation.  This oft precedes reversals, equally nosotros saw during the 10 AM hr of trading above.

When cost breaks out of a make on sustained elevated relative volume, nosotros accept a corking indication that the novel prices are attracting fresh participation, which makes the breakout less probable to endure a fakeout.  

The fundamental to agreement relative book is that, when nosotros run into elevated participation inward the market, that elevation typically comes from directional participants.  If we're going to larn a momentum/trend move, nosotros postulate the players to sustain the higher or lower prices.  The waxing too waning of relative book tells us where the market's auction is attracting activeness too where it is shutting it off--an essential distinction for short-term traders.

Previous Posts inward the Series:

*  Tracking Instantaneous Demand too Supply

*  Tracking Multiday Market Strength too Weakness

*   Tracking Market Breadth too Strength/Weakness

*  A Unique Application of VWAP to Gauge Market Strength

*  Tracking Market Strength With Intraday New Highs too Lows
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Info!! How Is The Marketplace Moving?

For the short-term trader, at that spot is of import data inwards how a marketplace position moves. Consider 3 posts from today's intraday Twitter comments:

9:31 AM CT- Watching closely: We withdraw to sustain prices inwards a higher house their solar daytime session opened upwardly w/ positive TICK distribution to larn a skilful reversal.

This showtime comment came after nosotros spiked lower inwards the showtime one-half hr of trading on extreme negative TICK as well as high volume. Such capitulation oftentimes leads to a reflex bounce, sellers are "all in" as well as no 1 is left to displace prices lower. As buyers are attracted yesteryear the depression prices, short-covering contributes to the bounce. For this bounce to give-up the ghost a truthful reversal as well as plough the short-term tendency bullish, nosotros withdraw to come across the bulk of sectors sustain prices inwards a higher house their opening levels, as well as nosotros withdraw to come across internet buying pressure level (positive NYSE TICK). Gauging the participation of the sectors as well as the vigor of the buying involvement helps us distinguish betwixt a comport marketplace position bounce as well as a bullish reversal.

9:38 AM CT - Rel book has dropped off on the attempted rally; dorsum l8r inwards day.

Within a few minutes, I'm seeing that relative book (how book at a detail fourth dimension of solar daytime compares amongst average book at that fourth dimension of day) is tailing off after a surge on the early on selling. This is a sign that higher prices are non attracting fresh participation. Recall that book is strongly correlated amongst volatility. When we're trading directionally, nosotros desire volatility to hold upwardly expanding on moves inwards our direction. When relative book tails off, it's 1 sign that the volatility winds are non at our back, which leads us to suspect that the upmove is a comport bounce, non a fresh bull move.

10:06 AM CT - Unless nosotros tin sustain positive TICK as well as inwards a higher house avg book to upside, that 800 back upwardly volition laid out to human activity every bit resistance.

I hadn't planned about other post as well as therefore soon, only I idea the quest was worth reiterating. In a valid breakout move, nosotros should non displace dorsum into the prior trading range. That means, on a downside break, that what had been back upwardly (the 800 degree of the S&P 500 Index) is immediately resistance. We withdraw buying pressure level (TICK) as well as volatility (relative volume) to force us dorsum into the range. That wasn't happening, as well as that observation helped ready us upwardly for weakness afterward inwards the day.

What I'm trying to produce amongst the intraday Twitter comments is model a way of thinking virtually cost activity yesteryear synthesizing observations virtually ranges, marketplace position sentiment/strength, volume, as well as historical cost patterns. Much of this thinking is based on looking at non solely *what* the marketplace position is doing, only *how* it is doing it. Following Cumulative TICK, where nosotros traded relative to VWAP, relative volume, as well as leading sectors (financials) all were helpful inwards tracking the market's weakness during the solar daytime session. Subscription to Twitter comments is free; you lot tin too selection upwardly the 5 latest "tweets" on the weblog abode page nether "Twitter Trader".
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Info!! Relative Book As Well As Volatility: Agreement Who Is Inwards The Market

tracking large traders inwards the market in addition to the volume realities that every short-term trader should know. The argue book analysis is of import is because the bulk of volume--and the shifts inwards volume--can endure attributed to the participation or non-participation of large marketplace participants. These institutional traders postulate maintain the resources to displace markets, in addition to hence it is critical to empathise when they are relatively active in addition to inactive inwards the markets you're trading.

I took a facial expression at the final fourteen days of trading inwards the ES (S&P emini) futures contract in addition to institute that the book of each 30-minute menstruum during the solar daytime correlated amongst the size of the high-low cost hit for that menstruum past times .78. That way that virtually 60% of the variance inwards volatility tin endure accounted for precisely past times knowing the book traded during that period. When nosotros position whether book is high or depression for a period, we're also able to brand an guess of probable volatility for that period.

Above nosotros run into the median book for each 30-minute menstruum inwards ES for the final fourteen trading sessions (top chart) in addition to the median high-low percent cost hit for those periods. The correlation betwixt book in addition to volatility is obvious. Also obvious is that book in addition to volatility shift substantially inside the trading day. Indeed, the median book of the 11:30 AM CT - 12 Noon CT bar is less than one-half of the median book for the market's opening 30-minute bar. The median cost hit per 30-minute period--the amount cost movement--is 40% smaller for the midday menstruum compared amongst the opening one.

This changing volume/volatility dynamic inside the trading solar daytime has of import implications for the intraday trader, including the placement of stops in addition to cost targets. I late corresponded amongst a rookie trader who placed his stops in addition to cost targets a fixed publish of points from this entry. While this provided the illusion of managing risk, it was ineffectual. The fixed halt signal was hitting precisely past times random cost motion during the busy periods of the day, taking the trader out of skillful trades. Conversely, during tiresome periods, the trader's cost targets were never hit, leading to reversals of his newspaper profits. The trader sought me out for aid inwards dealing amongst his emotions, but inwards fact his work was his failure to arrange to shifts inwards volatility.

This same work occurs amidst fifty-fifty relatively sophisticated traders who convey expectations of cost motion from the final solar daytime or 2 to the introduce trading day. They anticipate or in addition to hence motion than the marketplace is genuinely giving them, leading to premature exits from skillful trades on busy days in addition to failure to accept profits on trades when markets are slow.

So how tin nosotros guess the volatility of the solar daytime that we're currently trading, in addition to hence that nosotros tin arrange accordingly? The catch of relative book is that yous compare the book for the recent fourth dimension menstruum amongst the average book for that same fourth dimension menstruum over the past times X days. For example, I know that the median book for the fourth dimension menstruum of 12:30 - 1 PM CT is 113,785 contracts, amongst a criterion divergence of 53,262 contracts. If I run into book for that menstruum transcend 200,000 contracts during the trading day, I know that this is a pregnant boundary inwards book relative to the recent past. It alerts me that institutional traders are relatively active inwards this market, in addition to hence I volition pay detail attending to whether they are buying or selling (by analyzing NYSE TICK in addition to Market Delta for that period). It is out of such surges inwards participation that breakout moves in addition to trends are oftentimes born.

Conversely, if I know that if the opening one-half lx minutes of merchandise averages 259,412 contracts amongst a criterion divergence of 66,817 contracts in addition to run into that the electrical flow opening menstruum has alone traded 150,000 contracts, I know correct away that large traders are non dominating this market. This volition Pb to reduced volatility, in addition to it typically leads to a choppier trade, every bit marketplace makers force the marketplace to in addition to fro to brand their scalping profits. H5N1 marketplace dominated past times marketplace makers trades really differently from a marketplace dominated past times prop traders in addition to fund portfolio managers. By recognizing relative volume, yous tin also position who is relatively active inwards the marketplace--and that volition render yous amongst valuable clues every bit to how much--and what type of--opportunity is present.

Note: If at that topographic point is sufficient interest, I tin shipping existent fourth dimension relative book information via Twitter in addition to every bit utilisation of the indicator updates on the blog. The RSS subscription to Twitter is costless of charge; the weekly indicator updates typically seem on Mon prior to the marketplace open.
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Info!! Tracking The Footprints Of Provide In Addition To Bespeak Inwards The Stock Market

In approximately ideal, dispassionate basis all participants inwards fiscal markets would acquit similar my friend NRK too solely purchase at bid prices too sell at offers.  It's a groovy agency to create good inwards auction markets, too in that location are optimal execution platforms that volition make that for large marketplace participants.  The employment amongst optimal execution is that y'all oft cause got to hold back to buy the farm expert prices, too cost tin buy the farm away from y'all spell you're waiting.  That tin hap if you're looking for a manage inwards a hot existent estate marketplace or if y'all essay entering on boundary orders inwards a fast market.  

The truth of the thing is that the basis is neither ideal nor dispassionate.  People chase cost bubbles too puke out of positions when everyone else is doing the same.  Real basis traders--and fifty-fifty those execution systems--recognize this too allow for execution amongst urgency.  When markets are moving amongst signs of momentum, it's acceptable to elevator offers too hitting bids to participate inwards the movement.  Of course, inwards this less than ideal world, there's also that modest inconvenience called cognitive bias.  We all also oft extrapolate direct lines too remember that every displace higher or lower is a budding trend.  That gets us executing amongst urgency to a greater extent than oft than genuinely objective signs of momentum would dictate.

The long too curt of this foray into the vicissitudes of determination making is that fifty-fifty the largest marketplace participants larn out footprints equally to their intentions.  Yes, they tin chop orders upwards into pieces too execute inwards baskets too merchandise on dissimilar exchanges.  At the halt of the day, however, their transactions occur inside a bid/offer matrix, too they are either executing amongst urgency or they are not:  they are either willing to pay the seller's cost or they're willing to allow markets sell downwards to their desired buying level.

When y'all analyze markets transaction past times transaction, y'all tin really come across the stream of trades too book hitting bids too lifting offers--and y'all tin rail the evolving sentiment/urgency of marketplace participants.  That is highly useful data that is obscured past times looking at traditional intraday or daily charts.  H5N1 daily nautical chart is a telescope, revealing a large picture.  Viewing markets transaction past times transaction to discover the flows of trader behaviour requires a microscope.  H5N1 major fault that traders brand is attempting to engage inwards microscopic analyses past times changing the magnifying ability of their telescopes.

Above is a nautical chart that tracks a mensurate of "volume flow" that I've spent the amend business office of this weekend constructing.  It looks at every merchandise for every stock inwards the NYSE universe too identifies where the transacted cost occurred inside the bid/offer matrix existing at that time.  If the book of that transaction occurred nearer to the bid price, it is considered "selling volume".  If the book occurred nearer to the offering price, it is considered "buying volume".  The book stream mensurate is a running full of buying vs. selling volume.  If y'all remember of it equally a volume-weighted NYSE TICK mensurate or equally a cumulative Market Delta for all stocks, y'all wouldn't last far off the mark.

Much equally I dearest the TICK measure, it is democratic to the indicate of promiscuity.  All upticks too downticks are equal, whether they stalk from the smallest microcaps or the bluest of bluish chips.  That is non hence helpful when trading a capitalization-weighted index.  You tin cause got relative forcefulness or weakness amid modest caps equally business office of a sector rotation that volition skew the TICK measure--sometimes considerably.  H5N1 volume-weighted TICK measure, on the other hand, naturally weights larger, to a greater extent than actively traded issues to a greater extent than highly, providing a potentially amend supply/demand see for the stocks that thing inwards the index beingness traded.

Note to a higher house how selling flows were quite moderate inwards early on merchandise too hence accelerated fifty-fifty equally cost was topping out for SPY.  This is potentially useful data for the intraday trader.  

As I operate amongst the novel measure, I promise to portion farther findings too details.  The of import takeaway is non nigh the specific measure--it may or may non add together value over time.  Rather, what is of import is looking at markets inwards fresh ways too sustaining a procedure that periodically renews too extends your perspectives.  Looking at the same charts too indicators equally everyone else is a groovy agency of replicating the returns of everyone else.  If y'all wishing distinctive returns, y'all demand to see markets through distinctive lenses that break fresh opportunities.  It used to last that dependent meant next a exceptional develop of rules or processes.  In crowded, ever-changing markets, however, creativity is the novel discipline.

Further Reading:  Why to Keep a Journal
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Info!! The Bollinger Balance: Tracking Stock Marketplace Pull In Addition To Weakness

Recent posts guide keep focused on ways of gauging broad marketplace pull as well as weakness past times tracking the broad make of private stocks, rather than past times relying alone upon a stock index.  These marketplace gauges include the percent of stocks trading inward a higher house their volume-weighted average prices; the upticks as well as downticks with all stocks trading inward the U.S; as well as intraday novel highs as well as lows with U.S. of America stocks. 

Such measures furnish several advantages.  First, they are a banking concern stand upwards for on the activeness of the capitalization-weighted stock indexes, which tin appear strong or weak only because of the activeness of a relatively modest pose out of highly weighted shares.  Influenza A virus subtype H5N1 practiced event of this was the runup to the July 24th highs inward the large cap marketplace (SPX).  My stair out of fresh three-month novel highs with stocks listed on major exchanges was 636 on June 9th; 836 on July 1st; as well as 363 on July 24th.  That waning upside participation equally a rally matures is a useful agency to guess the relative wellness of the marketplace motion that y'all can't become past times looking at the nautical chart of the index alone.

The minute payoff of these measures is that they furnish prisms through which I tin sentiment as well as empathize the market.  This is where marketplace analysis meets trading psychology.  I download, archive, as well as review all of these indicators every twenty-four hours as well as and then on a larger painting demo footing every weekend.  Day after twenty-four hours of seeing the patterns inward the data--and the relationships with the measures--provides an insight as well as experience into markets that is useful deliberate practice.  

Above is even hence roughly other marketplace stair out I expect at daily that I've dubbed "the Bollinger balance".  (Credit to John Bollinger for insights into this indicator as well as to the Bollinger information tracked on the splendid Stock Charts site.)  In this measure, I only accept the difference betwixt the pose out of NYSE stocks that closed inward a higher house their upper Bollinger Band minus the pose out that closed below their lower band.  What I'm looking for is whether nosotros reckon signs of expanding pull vs. weakness with the broad make of shares.

You tin reckon from clicking the nautical chart inward a higher house that nosotros saw a declining Bollinger residual from early on June through later on July equally the marketplace was topping.  This divergence, along with the many sector divergences as well as divergences inward the novel high/low data, was identifying the waning participation to the upside--a useful heads upwards that the rally was losing steam.  

Fast frontwards to the introduce as well as y'all tin too reckon that the Bollinger residual has straight off been waning to the downside, fifty-fifty equally we've made novel lows inward the major indexes.  We're too seeing fewer shares making fresh three-month lows over the past times several sessions.  This suggests that selling is waning inward terms of breadth--a potentially useful heads upwards for traders gauging the introduce marketplace correction.

Further Reading:  Archived Posts on Market Indicators:  Volume One; Volume Two; Volume Three; Volume Four
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Info!! Trading Notes: Calendar Week Of 8/31/15

Friday, September 4th

*  We showed early on forcefulness yesterday, but book flows were suspiciously weak for much of the morn too failed to confirm the highs of the twenty-four lx minutes menses (see nautical chart below).  Volume flow is a proprietary volume-weighted mensurate of upticks vs. downticks for all stocks traded across all exchanges too tells us whether size is to a greater extent than oftentimes than non leaning to the purchase side or sell side.  Volume weighting the NYSE TICK achieves much of this purpose.  Once nosotros began to come upwards off the highs, nosotros saw a steady reject inward book flows, every bit nosotros chop-chop turned negative on the day.  Tracking such flows is my favorite way of "reading the tape": when the record does non confirm signals from quant models, I desire to quest heed to the tape.  It to a greater extent than oftentimes than non way that something idiosyncratic is moving the market: something models aren't accounting for.

*  We're trading significantly off yesterday's highs too then far this morning, with fresh selling inward premarket.  All of this is consistent with the sentiment of an extended bottoming procedure next a potential momentum depression registered final week.  As mentioned yesterday, during these high volatility periods, the percent of stocks trading inward a higher house their short-term moving averages ends upwards beingness a helpful overbought/oversold gauge.  Yesterday, good over 80% of SPX stocks were inward a higher house their 3-day moving averages.  

*  My full general game excogitation is to sell bounces, peculiarly on tepid book flows, but we're quite short-term oversold here, too then I'm prepared to hold back for a reasonable bounce inward cost and/or time.

Thursday, September 3rd

*  Buying weakness per yesterday's post service worked reasonably good yesterday, though a unopen aspect at NYSE TICK showed a two-way marketplace with active participation from both buyers too sellers.  We hold to endure oversold on intermediate-term measures too nosotros soundless receive got solely a niggling over 20% of SPX stocks trading inward a higher house their five-day moving averages.  My game excogitation remains to purchase weakness that remains inward a higher house the overnight lows.

*  One of the ameliorate decisions I've made inward trading lately has been to plough my models off in 1 lawsuit it became clear that nosotros were trading inward a dissimilar volatility authorities from the 1 that has persisted for much of the final 2 or too then years.  My latest projection is edifice models specific to defined volatility regimes.  Early days, but results aspect promising.  One intriguing finding is distinct short-term hateful reversion effects inward SPY for the electrical flow regime.  For example, when the issue of five-day novel highs minus novel lows for SPX stocks is nix or above, the adjacent 5 days inward SPY receive got averaged a loss of -.12%.  When the five-day novel highs minus lows receive got been below zero, the adjacent 5 days receive got averaged a gain of +.49%.  In general, chasing short-term forcefulness or weakness has non been a winning strategy; higher volatility does non imply greater trending.  (Raw information from the first-class Index Indicators site).

*  I'm concurrently working on the best ways of defining volatility regimes, using realized volatility, implied volatility, too to a greater extent than esoteric measures of vol based on published query inward quant finance.  This strikes me every bit a fruitful expanse of research.  Also on the docket is a Definition of correlation regimes too investigation of how returns may vary every bit a portion of higher too lower correlations alongside stocks.  The destination is to receive got a suite of models built out for a make of regimes, too then that at that topographic point are clear rules for turning off 1 beginning of trading signals too turning on another.  I am non at all convinced that a unmarried model tin accurately capture a high proportion of variance inward forrad returns for stocks, which is or too then other way of maxim that stocks comport differently inward higher too lower volatility too correlation regimes.  Having a laid of models to capture those differences could assist discretionary traders accommodate to their environments to a greater extent than quickly.

Wednesday, September 2nd

*  Many thank you lot to Sean McLaughlin for hosting this podcast on taking your trading to the adjacent level.  I'll endure elaborating many of these ideas too to a greater extent than at the first-class Stocktoberfest gathering.

*  Once again, the selling of bounces has worked good inward trading the ES.  We're at nowadays at an oversold point, however, where I am mindful of the possibility of putting inward a short-term bottom.  Fewer than 1% of SPX stocks are trading inward a higher house their 3-day moving averages too my intermediate-term forcefulness mensurate is rattling oversold.  Although nosotros saw weakness yesterday with 111 novel monthly highs too 431 lows, that is nowhere nigh the weakness final week, when nosotros registered 35 highs too 3553 monthly lows on the large spike down.  My game excogitation is to purchase weakness that holds inward a higher house yesterday's lows too peculiarly that successfully tests yesterday's lows.

*   VIX is over xxx too my pure volatility mensurate is significantly elevated.  I await vol to hold inward the nigh term, which has large implications for sizing of positions too calculations of stops too targets on trades.  The inability to accommodate to changes inward volatility--especially when nosotros receive got high vol of vol--is a major beginning of problems for traders inward the electrical flow market.

Tuesday, September 1st

*  Selling bounces has worked good too we've come upwards off difficult afterward hours, resuming the reject inward the human face upwards of Asia weakness.  Volume flows were bearish all twenty-four lx minutes menses on Tuesday, helping laid upwards the weakness. (Volume flow is a volume-weighted mensurate of upticks vs. downticks for all exchange-listed shares).  The pure volatility mensurate remains elevated, too I hold to anticipate highly volatile trading.  It is non clear to me that nosotros only caput lower inward a similar a shot line; intermediate-term measures are quite oversold.  I receive got been treating each fourth dimension zone every bit a carve upwards day--Asia, Europe, U.S.--and that has been helpful inward framing short-term trades.  There are considerable discontinuities of flows from 1 fourth dimension zone to the next; greater continuity inside each fourth dimension zone.

*  Below is a nautical chart of a elementary five-period charge per unit of measurement of change, where each bar inward the ES futures represents 500 cost changes.  It is 1 tool alongside many that I utilization to frame whether the marketplace is short-term overbought or oversold.  One of my execution rules is to hold back for short-term overbought weather condition to sell too short-term oversold ones to buy.  In volatile markets, that tin relieve a lot of messiness.  Many a proficient sentiment is undermined past times misfortunate entry too instruct out execution.  I'll endure discussing my utilization of such tools inward the Las Vegas conference for Trader4ACause.

*  I hold to scout commodity markets, every bit good every bit Asian stocks, for indications of the economical weakness that is impacting stocks.  This is or too then other expanse inward which monitoring activeness past times fourth dimension zone has been helpful.  I hold to lean toward selling bounces,  but am mindful that we're short-term oversold here, too then am content to hold back for shorts to endure squeezed earlier taking whatever swing positions.

Monday, August 31st

*  We focus on setting goals too tracking our progress toward those goals, but a wealth of show suggests that a procedure focus is much to a greater extent than probable to Pb to positive outcomes.  When nosotros emphasize doing the correct things, nosotros are most apt to create things right.  This is a rattling of import topic, every bit much of the flight-and-fight disruption of information processing too decision-making occurs when we're P/L focused too non genuinely trading focused.

*  My pure volatility mensurate has been percolating higher, too then I'm prepared for a proficient amount of motility inward stocks.  H5N1 slap-up routine is to compare intraday book of SPY with the book at the same fourth dimension of twenty-four lx minutes menses for the past times several sessions.  Because book too volatility correlate highly, the real-time tracking of relative book helps us intelligently justice the probable make for the day.

*  We've come upwards off Friday's highs inward overnight trading, with weakness inward Asia too Europe.  My game excogitation is to sell ES on bounces that neglect to receive got out overnight highs.  I'm non at all certain we're done hearing most EM too mainland People's Republic of China weakness too associated commodity weakness; the sentiment of an effective quantitative tightening raised past times Deutsche Bank final week is 1 worth pondering for implications.

Info!! Useful Trading Tools - Business Office Five: Dow Ticki

Past posts inwards this serial accept looked at stock marketplace breadth, unique information visualization, volume information, together with the NYSE TICK.  In this adjacent serial post, we'll hold back at the Dow Jones Industrial Average equivalent of the NYSE TICK:  the TICKI.

TICKI represents the publish of Dow xxx shares trading on upticks vs. those trading on downticks at each minute of the trading day.  Its distribution is far noisier than NYSE TICK, every bit the Dow shares merchandise often together with often every bit business office of handbasket trades executed past times institutions.  Indeed, i of my favorite uses of TICKI is to evidence the frequency of extreme values:  +20 or inwards a higher house vs. -20 or below.  For a cracking bulk of Dow stocks to endure upticking or downticking at the same time, at that topographic point must endure baskets of trades hitting the marketplace on the purchase or sell side.  This is a overnice agency of tracking the thought of large marketplace participants.  If nosotros run across many meaning positive readings, nosotros know they are lifting offers together with executing on the purchase side; many meaning negative readings suggests a hitting of bids together with selling pressure.

Because TICKI is together with then noisy inwards its minute to minute readings, I proceed a cumulative amount of the one-minute average high-low-close readings.  That TICKI Sum stair out is depicted above, relative to yesterday's S&P 500 Index (SPY).  What you lot tin forcefulness out run across is a persistent bid to large cap shares through the session, fifty-fifty every bit the NYSE TICK was flattish to downward on the session.  Buy programs inwards the large caps were going off, exactly the buying was non across the wide stock universe.  That was a overnice nation for a mixed market.  It was also why I didn't believe we'd sell off significantly during the 24-hour interval session.

There are many uses of NYSE TICK together with Dow TICKI data.  For instance, real short-term intraday traders tin forcefulness out role pullbacks inwards these measures to tending fourth dimension the execution of purchase together with sell trades.  In an uptrend, you lot desire to purchase pullbacks inwards TICK together with TICKI--especially when you lot run across pullbacks occurring at higher cost levels.  The opposite logic applies to downtrends.  When you lot run across real few meaning high together with depression readings, you lot know that institutional players are non dominant inwards the marketplace together with nosotros are much less probable to accept a volatile, tendency day.

Among the high frequency information available to traders, I discovery the TICK together with TICKI to endure most useful inwards gauging marketplace participation together with sentiment.  Somewhat related information is also establish inwards the Market Delta measure, which I'll endure writing close shortly.

Further Reading:  Dow TICK together with Market Patterns