One of the noteworthy qualities of recent markets has been their herd-like qualities: every bit I noted inwards a postal service a spell ago, we're getting an unusually large subdivision of days closing close their highs or lows. Today's historic rally was similar to final week's weak markets inwards that way: i time a rally or selloff is nether way, it takes on intraday momentum.
I've industrial plant life several indicators to live on specially helpful inwards identifying these trending days: 1) highly skewed advance-decline figures early on inwards the 24-hour interval that don't contrary inwards the starting fourth dimension hr of trading; 2) highly skewed book concentrated inwards advancing or declining stocks that expands through the trading session; as well as 3) a distribution of NYSE TICK values that is skewed positively or negatively, creating a steady sloping cumulative line.
Note, for example, how nosotros never registered an NYSE TICK value of -500 or lower until some 13:20 CT during Monday's uptrend day. Conversely, nosotros registered many readings of +900 or higher prior to that time. One of the indicators I runway during the 24-hour interval is precisely the count of "significant" TICK readings (i.e., values to a greater extent than than ii touchstone deviations from the mean) every bit the 24-hour interval unfolds. Trend days present an early on skew of meaning buying or selling values as well as hold this skew through the day.
Similarly, early on inwards Monday's session nosotros registered 2500 to a greater extent than advancing stocks than decliners on the NYSE--and built on that ratio through much of the day. By definition, a tendency 24-hour interval occurs when buying begets farther buying as well as the reverse; it is the early on presence of extreme values as well as the persistence of these values that alerts us to profitable intraday merchandise yesteryear buying dips or selling bounces.
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