Top Down Approach for $INDU and Stocks

[dcraig1]

Leovirgo,

Could you clarify what you are plotting:

1. Market Breadth - Is this advancing - declining issues

2. Market_Internals ?

Thanks

 

[leovirgo]

Hi Leovirgo,
I've never been convinced of the merit of looking at market breadth / internals and have taken the view previously that they're more likely to muddy the waters than they are to clear them. However, I have to say that the chart attached to your last post is very clear and simple (the way I like it), so perhaps I need to revisit the idea! Two questions if I may:
1. Sometimes it's necessary to cherry pick a chart to illustrate the point one wants to make when posting on a forum such as this. (I do it all the time!) Would I be right in thinking that most days it isn't anything like as clear cut as your example with the oscillator, breadth and internals all lining up neatly? I'm just trying to gauge how typical the chart is and the level of skill required to interpret it.
2. Like you, most forum members seem to use Tradestation and I'm with eSignal. Do you know (or does anyone else know) if and how I can set up a similar chart in eSignal?
Cheers,
Tim.

Hi Tim,

You are quite right in saying that it is not always as clear cut as demonstrated in my posts. However, if you have another benchmark such as Support/Resistance line and price action based on Market internals, then it is not that difficult to interpret them. Please see today's chart. MB and NetVol were bullish/positive and yet long entries at blue dots didn't go very far. The first one is a loss but the rest are sort of okay. As for the set up, $ADD is market breadth.
cheers,..

 

[leovirgo]

Leovirgo,

Could you clarify what you are plotting:

1. Market Breadth - Is this advancing - declining issues

2. Market_Internals ?

Thanks

Hi DCraig

$ADD is market breadth. Market internals is custom indicator. cheers,..

 

[dcraig1]

Hi DCraig

$ADD is market breadth. Market internals is custom indicator. cheers,..

Thanks, but just to clarify:

$ADD == adv issues - dec issues ?

 

[leovirgo]

Thanks, but just to clarify:

$ADD == adv issues - dec issues ?

It is in deed.

 

[leovirgo]

Today is one of the harder days to trade as Power Up (blue) signals failed and the market began to weaken as the day progressed. Late shortsale signal is profitable though.

 

[leovirgo]

Here is an example of how 52wk HiLo, AdvDecl and Volumes on the exchange give clear market directions.

 

[leovirgo]

Please check the chart at my blog, which is SYSTEM APPROACH TO THE MARKETS

 

[leovirgo]

So far I have talked about using Marke Breath in top down approach. The next one I'd like to discuss is how to use Higher Time Frames in top down approach.

 

[elis58]

Please check the chart at my blog, which is SYSTEM APPROACH TO THE MARKETS

hello leo

thanks it is very interesting thread
from some reason i couldn't find the indicator you are using in tradestation list.
could you help me with this
elis58

 

[leovirgo]

It is $ADD ( difference between Advancing issues and Declining issues at NYSE ). Or you can build your own from two symbols- $ADV and $DECL. Please find them by using search facility with key words.

 

[leovirgo]

I think the issue of uploading images has been resolved. So I will post something about using higher TF in topdown approach.

 

[leovirgo]

Trading 10minutes cycle withing 60minutes

Here I'd like to demonstrate a simple cycle trading entries. $INDU has been in a range for the last few days and it produced nice tradable cycles. Just take reversal trades based on 10minutes OB (overbought) while 60minutes cycle is also backing up in the same direction. For this chart, I have omitted Market Internals to make it simple and easy to see.

 

[leovirgo]

Vix juncture

Potential vix break out beware!!!

 

[leovirgo]

My previous post correctly called the bear market move down. Now this is another call for the so called bear market rally.

This is what I wrote in "Potential Setups" thread.http://www.trade2win.com/boards/general-trading-chat/32991-potential-setups-700.html?posted=1#post731874

Vix has fallen well below 38 which had been acting as a support on daily. That means equities "should" retest January mean which is 8470 on YM or 8500 on INDU cash. However, looking from the forex perspective, cable looks like it needs a breather. So, the downside for indices could be just temporary and equities may be looking alot higher in coming weeks. Let's see if I can buy the dips...

 

[leovirgo]

I haven't updated this journal for a while. Most of my recent works are here in vwap engine.

 

[leovirgo]

Vix has fallen well below 38 which had been acting as a support on daily. That means equities "should" retest January mean which is 8470 on YM or 8500 on INDU cash.

VIX has correctly called this rally, more than two weeks ago! Buy the dip for TA traders or buy and hold for retail investors would have worked perfectly.

 

[leovirgo]

Talking about vix, it did call the market moves lately (again).