How do you determine a breakout from a false breakout?

[Rocky Mtn Trader]

thanks MC....

how do I get the Uvol compared to Dvol on my NT charts?

Also...how do I get the TRIN or the VIX on my NT charts?

I dont seem to have those indicators?

thanks for the help.
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[MC]

	Quote:	Rocky Mtn Trader
	thanks MC.... how do I get the Uvol compared to Dvol on my NT charts? Also...how do I get the TRIN or the VIX on my NT charts? I dont seem to have those indicators? thanks for the help. . .

I haven't used Ninja since a demo way back.
What's your data feed? You need to check with the data provider to see what their tickers are for internals, assuming they give you them.

I run Think or Swim for those charts. Free data and platform with an account of $3500 or more. They give internals, stocks, options, futures, some forex. I really like the setup though it's no where near as customizable as NT is.

I really miss my Tradestation platform, though as a broker I was not happy with execution.

[walterw]

	Quote:	MC
	I know I wasn't asked, but my 2 cents is I prefer the VIX. TRIN often moves range bound where VIX tends to move more with the market (though inversely). The above actually shows the exact same days and time frames on both VIX and TRIN. You tell me what you see better through. I do use the TRIN to look for extremes (2.0 and .6) This is another tool I use to look for false breakouts. You can see how the up or down volume reacts to the range breaks.

Nice method to measure market climate... very nice... once again proxy data giving very good insight into whats going on... cheers Walter.

[walterw]

MC, can you show us some charts of various days with this up and down volume compared and some index below so we can see some performance of this aproach... looks very nice... makes a lot of sense... having too similar volumes would call for a choppy day, same its the oposite... cheers Walter.

[MC]

	Quote:	walterw
	MC, can you show us some charts of various days with this up and down volume compared and some index below so we can see some performance of this aproach... looks very nice... makes a lot of sense... having too similar volumes would call for a choppy day, same its the oposite... cheers Walter.

For you...anytime.

I believe you used to use Advance/Decline. I run that as well as the UVOL setup here. I run TRIN for the extremes and VIX for an inverse look at the markets. Price action still rules, but these give a good glimpse into the health of the markets IMO.



So we can see here nothing but price action is always 100% correct, otherwise we'd all be rich. But if you look at UVOL/DVOL expansion or contraction in relation to each other you can often get clues on which is the right side of a trade. If you have a bigger chart I'm sure the moves on the indices are even more clear in relation to this. I had to have things somewhat scrunched up to get it to post and capture right.


Added---
Notice Thursday. I just saw something I didn't catch before.
Wicked divergence, basically hidden selling. So you have UVOL smashing DVOL all day but most the day was consolidation. And it ended with a surge of UVOL but very light price action. So there ya go, there's another use for this that I'll add to my bag o' tricks.

Enjoy

[walterw]

Very nice Mike ¡¡ I attach one of the posible readings of "trend determination by up/down vol comparisson"...



nice and clean trend definition... maybe the uvol bars you want to make them all green... and add a 4 sma to the index and you got a little system, can enter each time you swing the sma on the direction of the UDVC trend... wouldnt that be cool ? cheers Walter.

[MC]

	Quote:	walterw
	Very nice Mike ¡¡ I attach one of the posible readings of "trend determination by up/down vol comparisson"... nice and clean trend definition... maybe the uvol bars you want to make them all green... and add a 4 sma to the index and you got a little system, can enter each time you swing the sma on the direction of the UDVC trend... wouldnt that be cool ? cheers Walter.

You're a crazy, crazy chimp Walt.
You gave me the motivation to do the chart justice. Click refresh and you'll see a much better annotated chart, I should have annotated in the first place but it was late.

Think or Swim is somewhat limited as is my programming knowledge. I don't see any option to make uvol all green since it's the primary ticker. Ninja or others would be simple to change over. I'd also love to see someone show the sma on the index, I have no overlay ability on subcharts.

[walterw]

I tell you Mike, I like to see this crossovers between the u/d vol... can you try using a 1 min time frame ? thanks Walter.

[smwinc]

MC - What exactly IS "Up volume" and "down Volume"?

I.e. How is the broker calculating this?

Is it: If a trade occurs, and price at T+0>T-1 = Up volume? I.e. an "up tick"? and vice versa for Down volume (a "down tick")?

Cheers

[MC]

	Quote:	smwinc
	MC - What exactly IS "Up volume" and "down Volume"? I.e. How is the broker calculating this? Is it: If a trade occurs, and price at T+0>T-1 = Up volume? I.e. an "up tick"? and vice versa for Down volume (a "down tick")? Cheers

It's NYSE advancing volume to declining volume is all I know. I presume it's volume taken and added on the advancing issues and then the volume added on declining issues which I also run a comparison for. Maybe the below link gives some insight to the uvol/dvol thing?
http://finance.yahoo.com/advances

No idea how it's calculated to be honest. I'm a simpleton and am trying to keep it that way. Like Walt's currency thread, I really don't care much about the why it works, only that it's working and repeatably.
I suck at math and equations so I'll be of no help there.