12-28-2008, 09:29 PM
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#10 |
Join Date: Nov 2007 Location: Boonville Thanks: 1
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| Re: Market Internals
I have used market internals for years, I'd hate to trade without them now. I have a breadth ratio indicator on my SPY & QQQQ 5 min charts, that tells me what the up/dn volume ratio for the nyse & naz is without doing the math. 50 being parity, above 75 or below 25 you'll get a move, it also tells me which direction the highest probablity trade is. When the ratio is 40 -60 you'll have a choppy market. I also chart the nyse..naz breadth many days the breadth candles will trend but price shakes traders out, the days where the breadth candles trend, the market will always hit the lo/hi by 3:30 -4:00. I chart adv/dec for nyse & naz also, when the market makes a double top or bottom intraday & the adv/dec candles do not, that's divergance,,thus a high probablity trade has set up!! price candles vs internals candles when there is divergance, there is a high % setup! Price always follows the market!! A # above or less than 600 on the Add/dec chart is bullish or bearish, a # less than 500 you have a choppy market & breadth ratio between 40 - 60.. Thus SOH or scalp time,, take profits quickly where as if the internals are more extreme, I hang on longer. I have a sector list that sorts itself % gainers at the top & loosers at the bottom, if retail & bio-tek are the highest % gainers, the move will not have legs,usually, watch financials & energy, they make up the majority of the SPX. I chart nyse$tick on a 5 minuite with a 5 pivotpoint ema. Like all other tools you have to watch them for a while & learn how to use them correctly. Not everyone trades the same way, but to me, internals are a huge advantage!! Support/resistance #1 ...overall trend #2... #3 internals those are my tools I use Esignal if anyone would like my breadth ratio formula shoot me an email & I'll be glad to share it. |
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