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Old 09-18-2006, 09:27 AM
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Tools of the Trade

Just wanted to post my workspace and go over the tools that I use everyday.

I use a 233 TICK candlestick charrt. I find it easier to trade with and I do not like price bars being plotted in intervals of minutes.

I use the PC ratio as a contrary tool. Whenever the PC ratio is high, this means there alot of traders are short. Therefore I will start looking for long setups. When the PC ratio is low, alot of traders are long and I will look for short setups.

The TRIN helps me gauge market internals. The trend of the TRIN and the range of the TRIN is something I look for.

The TICK is also a tool to judge market internals. However, I use this tool to time my entries along with the tape. A line on close TICK chart is a helpful tool to prevent you from chasing the markets.

I use the TAPE for entries and exits. Whenever price reaches a key pivot level, I will read the tape and see if price will hold or fold.

The premium helps me see when buy or sell program kicks in. The levels change daily and you need to adjust them manually each day. The numbers can be obtained at Program Trading, Fair Value, Index Arbitrage Values - indexArb.com.

See the attachment for the pic:
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File Type: jpg Tools of the Trade.jpg (308.2 KB, 121 views)

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