Market Internals for Day Trading YM

[forsearch]

Very nice comparison, indeed.

How does $VOLUSD (All US Up Volume – Down Volume Difference) look when added to the mix here?

[MC]

	Quote:	forsearch
	Very nice comparison, indeed. How does $VOLUSD (All US Up Volume – Down Volume Difference) look when added to the mix here?

I'm not sure...I tried $VOLUSD and it isn't something I have access to. I don't think it would do much in comparison mode since here we are comparing up and down directly.

To clarify, for those thinking what good is knowing its choppy...
I use knowing its chop to look for a range, chop is a range bound action typically. And of course range breaks often lead to trending.

Trend days are pretty obvious, buy pullbacks or short rallies in the direction of the trend. This is nothing new, but the indicator can help eliminate guess work to some extent.

[trbates]

Yeah, I have not been using the up down volume to indicate a chop day as of yet ... but thats a great idea!

Like mcichocki said ... knowing when its a chop day vs a trend day is VERY helpful (especially when your experience is limited, like mine is

Travis

[rathcoole_exile]

	Quote:	trbates
	For example, if the tick spends the majority of its time above zero (preferably, between 600 - 1000) then I only go long.

ever use TICK readings >1000 or >-1000 as opportunities to fade ?
the contrarian logic being that by the time enough bullish (or bearish) sentiment has built up, it's usually time for the Pros to step in and fade the public .....

[david111]

Very dangerous game!
You will get chopped on strong trend days.
The tick extremes actually show strength.
As for time for the "Pro's" tp step in, well the "pro's" lost so much money doing this........(see the "zoo" guys...).
The "pro's" never categorically fade anything, nor do they ever face the market with a given strategy(...like I will fade the tick at 1000..."), they adapt and react and use good r/r based on proper sup/res analysis confluence which is mainly visual and not indicator orientated.
This game is though, I want to direct you to a guy that had a blod on day trading and just retired (and he is very very good).
http://highprobability.blogspot.com/
This is a very difficult game to predict the future guys.

	Quote:	rathcoole_exile
	ever use TICK readings >1000 or >-1000 as opportunities to fade ? the contrarian logic being that by the time enough bullish (or bearish) sentiment has built up, it's usually time for the Pros to step in and fade the public .....

[MC]

	Quote:	david111
	Very dangerous game! You will get chopped on strong trend days. The tick extremes actually show strength. As for time for the "Pro's" tp step in, well the "pro's" lost so much money doing this........(see the "zoo" guys...). The "pro's" never categorically fade anything, nor do they ever face the market with a given strategy(...like I will fade the tick at 1000..."), they adapt and react and use good r/r based on proper sup/res analysis confluence which is mainly visual and not indicator orientated. This game is though, I want to direct you to a guy that had a blod on day trading and just retired (and he is very very good). http://highprobability.blogspot.com/ This is a very difficult game to predict the future guys.

LOL at the highprob blog. I partially feel sorry for him, but hes a gambler through and through.

Pros fade price action divergence, not indicators themselves. Well the big pro's don't predict the future or fade anything, they make the future as they control supply and demand. And the higher end retail traders that can't move the market meerely take the trades with higher odds and accept the risk of a failed trade. It's a probability game, nothing more or less IMO.

You're dead on...you fade ticks and you might as well send me your money, hell I'll even give you a kick in the balls to remind you what a dopey idea it was. It may have worked but overall internals will leave you confused and broke. Even the setup I gave below is easy to use in hindsight, forward use it's not so easy.

Tough game, but a great challenge.

[john99]

Hey Guys this is HPT,
Most of my blowups and screwups have been from doing what mcichocki said, gambling. Gambling as in, adding to losers, and overleveraging myself on bad trades. As long as you have good risk management (dont add to losers, use planned out stops, and trade the right size for your account), then you should avoid the screwups that you frequently see I have.

I believe market internals are very helpful in day trading the indices. For example, you wouldn't want to be looking for short setups in the market with nyse A/D at 3 in the afternoon and when NYSE tick extreme readings haven't touched -400 all day and the volume is below avg. These are the types of slow low volume days that creep higher all day that many traders get stuck trying to fade. I know this from experience.

HPT

[rathcoole_exile]

	Quote:	david111
	You will get chopped on strong trend days.

i thought one of the purposes of this thread was to identify strong trending days from choppy days ?
Of course nobody is going to fade against a trend but
a) there are opportunities on a trend day to fade a reaction back in the direction of the main trend
b) there are opportunities galore on choppy days.

I was just interested if anyone else uses it. Obviously not. Your funeral.

[OAC]

	Quote:	john99
	Hey Guys this is HPT, Most of my blowups and screwups have been from doing what mcichocki said, gambling. Gambling as in, adding to losers, and overleveraging myself on bad trades. As long as you have good risk management (dont add to losers, use planned out stops, and trade the right size for your account), then you should avoid the screwups that you frequently see I have. HPT

Hey, we got a celebrity here !
HPT, you should check out Jperl's thread: http://www.traderslaboratory.com/for...mary-3326.html

And consider using the Standard Deviation Bands with the VWAP.
You can get NinjaTrader which is free to hook up with your IB feed.
And there is the code for the VWAP SD bands somewhere on the Ninja forum.(PM me if you can't find it)
Fading at the 3rd SD band confirmed by other internals is a High-Probability Trade.

[Soultrader]

	Quote:	OAC
	Fading at the 3rd SD band confirmed by other internals is a High-Probability Trade.

Agreed. Especially in line with S&R levels.