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Can someone point me towards (on-site or off) a thorough discussion of not only what the market internals (TICK, TRIN, ADD, etc.) are measuring, but how to use them? I thought **maybe** I had a decent grasp. I'm new to using them admittedly. So for example, this morning's NQ regular session open started off with TRIN at about 1.6 which my understanding led me to believe was bearish. But the TICK started off at about 1200, which is bullish...though both were fading downward. Of course, price went up for a bit then came down hard. So how was that reflected in the TRIN/TICK? Since TRIN incorporates volume, does that mean prices were up but not supported by volume, and were thus poised for a downturn? Also made the rookie mistake of not realizing from regular session to regular session there was a large gap up, and thus a chance for a gap fade. Oops. Won't make that mistake again.
Can you help answer these questions from other members on NexusFi?
I was using ToS at the time, but trading using TradingView. Haven't figured out how to do TRIN in TradeStation desktop platform yet. wldman, you're welcome to share whatever you like. I tried following shadowtrader's advice but I don't recall watching any videos where he actually explained precisely what they were and how to use them. I did set them up like he advised, but somewhere I lost that workspace and I never set them back up precisely how he had them.
Application is, of course, up to you. My basic approach is to use the internals as a governor. Is there evidence that supports or negates what I think I see?
Definitions and code where applicable are widely available.
I’ll throw in my two cents, admittedly as an amateur trader myself. I primarily use advance-declines and tick’s because what they calculate makes the most sense to me.
I use $ADD and the index-specific AD’s to determine how broad or narrow a rally or selloff is. The implications of a 1% S&P rally accompanied by an $ADD that rises 1000 is very different from the same S&P rise accompanied by a declining $ADD.
I use the $TICK to determine relative aggressiveness of the buyers and sellers. Take for example the following two scenarios: S&P grinds lower but $TICK holds mostly above zero vs S&P grinds lower and TICK holds mostly BELOW zero.
Up to you to determine your interpretation and application of these tools based on what makes sense to you! Hope that my simple interpretation is at least helpful in some way.
