Market Internals for Day Trading YM

[trbates]

I recently started day trading the mini sized dow futures, and was curious as to what market internals you all use? I'm currently watching the NYSE tick, NYSE UpVolume compared to DownVolume, and a market watch window with the 30 DOW stocks (these being sorted every 3 seconds to show net gain for the day) for general market behavior.

Are there any others that might be better suited to day trading the YM?

Thanks

Travis

[brownsfan019]

Travis - what has your research shown on using this combination? Does it make money over the long run? What drawdowns can you expect?

[trbates]

Brownsfan,

I don't have very extensive experience with using them. That said, I have been watching the market using these internals. And they do what they do very well ... give an over all feeling as to what the market is doing. For example, if the tick spends the majority of its time above zero (preferably, between 600 - 1000) then I only go long.

The up/down volume seems to give a broad sense of the market as well, so I use it like the tick ... If there is more up volume than down, then I only go long.

Though, like I said I don't have all that much experience with watching these ... since I have only been at it for the last 4 months.

As far as draw downs, I use other indicators (MA's, trendlines, and wave analysis) for my actual entries, exits.

Hopefully, someone with more experience can shed more light on this topic


Travis

[namstrader]

I watch these same internals and I like to watch the inverse relationship with interest rates (zn) with the ym. Also why not have the es,er,nz emini's up as well for general direction. How about a financial etf like (xlf) that often leads.

[forsearch]

There are a list of newer indices available specifically for the YM here:

List of Indices Added at Tradestation

-fs

[trbates]

Thanks forsearch, thats an awesome list.

I like the advance/decline volume for the DOW, rather than using the total US volume.

[waveslider]

I use a moving average of the russell cumulative tick ($tikrlc in TS), since it encompasses more stocks, and small cap stocks are usually a good barometer of strength/weakness in the market. I also have been watching $VOLRLDC which is advancing minus declining volume in the russell.
The russell cumulative tick gave a great early warning signal today. I take a moving average of it.
On the daily chart the trin and trinq are very helpful
yeehaa..

[waveslider]

	Quote:	brownsfan019
	Travis - what has your research shown on using this combination? Does it make money over the long run? What drawdowns can you expect?

brownsfan these questions you have are related to entries and exits as a part of a system - that would be a different discussion altogether.
Breadth can be used to see underlying strength or weakness, but don't expect price to react to them immediately! Manipulations and stop running usually will supersede on the shorter time frame.

[stanlyd]

trbates,
For me the internals can help to show direction but what is important is to see how the internals are acting at key price levels. They wil help you to confim rejection or acceptance at support/resistance. For example if your looking at a "flip" area and price breaks a bit past your price level, but the internals show no sign of change then you might consider waiting for them to respond for confimation before entering.

[MC]

Anybody use a $UVOL/$DVOL comparison?
Here's how I use it myself.