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Understanding of tick volume

  #9 (permalink)

Posts: 7 since Feb 2018
Thanks: 1 given, 0 received



Thanks for the insight. Reading through your very technical blog, I appreciate your comments and your in-depth research, wisdom and experience.

I am looking for one or both of the following in a tick tool: Positive and ongoing confirmation of a trend direction, or a predictive entry indicator (like seeing a build of up pressure before a big uptrend). I have seen @shadowtrader promo his cumulative tick tool on one of his weekend updates and thought it looked interesting, so I'm trying to explore that or similar ideas. I am (getting) pretty adept at personalizing and customizing existing studies/code, but I am no programmer.

My current indicators-of-choice usually give good entry/exit signals, but sometimes show me the exit on the first pull back of a very long leg up, meaning I miss the juicy part of the trade. Or worse, indicators will show buy signals on every minor pop of a long leg down, creating a recurring bull trap.

I'm using:
  • Forecast Oscillator as a predictive entry/exit too, but it can be very choppy unless the trend is strong.
  • CCIs and multi-frame RSIs to confirm specific entry points. These can be late on entry and exit, minimizing profits.
  • SMA ribbon as a visual confirmation of trends and changes. Untwisting the ribbon is a good confirmation for a new trend after a consolidation period.
  • Ultimate Oscillator as a buying pressure gauge and for top/bottom divergences.

I am NOT using MACD, True Strength and similar tools, which work some of the time, but can also give very bad signals in extended trends. I've watched a MACD rise in a market that was cascading down, and visa versa. I like tools that show strong correlation, especially if they keep me from losing. I also have not seen a correlation of volume of trade count be a good indicator at all.

I normally stick with 1, 2 or 5min charts for day trades, but just flipped over to a 10-tick and a 25-tick and loved the good entry and exit points (with a few falsies thrown in). I'm still testing to see which is more profitable, tick or minute, or both together.

What I look for in a new tool is a strong and consistent correlation to entry/exit.

I'm not sure if this helps, but any ideas you can throw at me would be greatly appreciated!

Humbly, scottm

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