In my experience... I've dumped Every indicator, Every Pivot.... All of that stuff, As an Engineer, I learned One simple thing. KEEP IT SIMPLE.
I'll talk Elliot waves, MACD, market Chop. But there are 2 market indicators that I Count on.
- Trend Lines
- Tick Values.
High Positive tick value means that many stocks are hitting Their Bids.
High Negative Tick Value Means that Many of the stocks are hitting their Asks.
Values, Positive and negative Above 500 are usually Unsustainable. There fore, if the Tick value hits 800 or 1200 or on a relative Basis 600 in the below chart, Those spikes in Tick value. Will either Coincide/ or Precede Slightly (5-10 minutes) a High or low in the market trend.
I've used arrows, and used arrows to indicate the Spike in Tick, and the highs or lows in the market trend. I use a point and figure chart for the Tick value. I just find it easier to interpret, than a candlestick. My software provider says I shouldn't do this.. but I don't know if it's my data provider or software, but in a candlestick I find it useless.
If you look at these charts, you realize that I also draw a million Trend lines... I use Real time trending. I look for trend violations on multiple indexes, on Sector leaders, on index leaders. When enough of the Trendlines are broken... it also will indicate a change in the Trend. I draw hundreds of them all day. I draw them on the Vix. The Market Mantra is "The trend is your friend" and you have to look at them at micro and macro levesl, in multipule indexes.
Just simple lines on a chart.






No comments:
Post a Comment