carltonp

OK DorD, So how does one use that data alone to rank stocks by their relative performance

Hello Traders, Last week, while trading the mini-dow, I noticed there were occassions when the price remained fixed (didn't go up or down) for over 35 seconds. Is this normal behaviour and what can be read from a price that doesn't move for such long time? Cheers Carlton

Hello DorD I was wondering if you could provide an example using a simple calculation? I do use Excel Cheers mate

Good point! That would have been helpful

Thanks for the encouragement. Cheers

Why do you say that?

DorD, I have a couple more questions I'd like to ask. I hope you're going to be around later.... Cheers mate.

Brilliant, that's exactly what five other traders said at Trade2Win and few others at ET(don't know if its frowned upon to mention other forums) :crap: However, I do like the idea of picking 7 - 10 components and putting them at the top of list.. uhmmmmmm ...

The formula for Vb.Net is ' Get the volume of the symbol, indexed by bar index. Define volume() As Number = BarVolume(_symbolIndex, barIndex, length + 1) ' Get the closing prices of the symbol, indexed by bar index. Define close() As Number = BarClose(_symbolIndex, barIndex, length + 1) ' Use for the latest trade volume index. Define TVI As Number = IndicatorIndexValue() ' Use for the calculated indicator script values, indexed by bar index. Define results(length - 1) As Number ' Calculate the indicator script values for the specified bar range. For i As Integer = length - 1 To 0 Step -1 ' Calculate the indicator script value for the current bar. If (close(i) - close(i+1) > _MTV) Then TVI = TVI + volume(i) Else TVI = TVI - volume(i) End If results(i) = TVI Next Return results The formula I have programmed into Excel is: =IF(E15-E14>1,H14+F15,H14-F15) I reviewed the Heatmap, however I think I prefer 'trend strength.

Before I answer reply to quote, just wanna say I've been reading some of your posts and they provided plenty of food for thought. Thanks. I think you have made a really good suggestion on possible ways to pick top components to monitor. In answer to the quote, at present the formula applies the Trade Value Index to all 100 components in realtime. I'm not sure if you're familiar with TVI, however when each individula component are inline with the index there is a message of either strength or weakness with the YM (if looking at the 30 components of the DJIA). Alternatively, if I'm monitoring each individual component of the nasdaq 100 then there is a message in the NQ. I hope that makes sense :-)

Thanks for the explanation. I find that tracking the Dow components allows me to assess the eventual direction of the YM. I have Interactive Brokers feed 100 components into my Excel program and assess the strength or weakness of any move with the help of my formula.

DorD, Thanks for responding. Yes I do watch ALL individual components. I don't think the last poster mentioned anything about comparative relative strength. However, I would be very grateful if you would elaborate. cheers

I use all the components of the nasdaq 100. I use an Excel formula to monitor the components realtime. Why do you ask? I was interested to know if someone could tell me the best approach in selecting those components that will move the index? Cheers

Hello Traders, I have style of trading that monitors the components of the DJIA to trade YM and the components of Nasdaq 100 to trade NQ. I was advised the best approach would be to monitor a select few stocks of each index rather than the whole set of components. It was suggested that a select few will dictate which direction the whole index takes. I was wondering if someone could advise on the best approach to selecting the most influential stocks of each index? I believe one approach is to monitor the stocks with highest weighting for each index, but I would love to hear your opinions. Cheers Carlton

Hello Traders, I'm looking for the definition of TickSize in relation to the YM (Mini-Dow). I understand TickSize is the smallest increment of change for the instrument an indicator is applied on, or put another way, "the minimum amount that the price for an instrument can change", however can someone please tell me what this (TickSize) is in relation to the mini-dow (YM)? Cheers Carlton

This is exactly the problem I'm having right now. I thought I was in a good place with markets and then the last couple of weeks has thrown me for a loop. My custom excel program to track the components of the DJIA as a means to confirm my signals to enter a contract with YM was working beautifully for months and now it seems to turning on it's head whenever it tells me the YM is moving in a certain direction. I'm going to take the advice of other traders and start focusing on ES, but trading another contract doesn't solve the problem. As you correctly mentioned the correlation I had in the past is no longer valid, but I've had to pay a high price to find that out. I have been using the NYSE $TICK, however I will start using the NYSE advancers/decliners and the NYSE up/down volume in my Excel application. Can I ask what custom programs you use to format and breakdown the data? Also, how do you process your data? When I was monitoring the 30 stocks in my Excel program in realtime as a means of confirming the direction of the YM was working sooooooooooooo well, but now it's not working so well. Thanks for your input. Cheers

No worries mate. I will try out ES in my trading decisions and let you know how I get on. Cheers

Jose (Traders) It has been suggested that I use another another index to measure YM rather than the underlying issue of DJIA, because they are Arb'd to death and as a result there is no edge from observing the underlying issues to trade YM. Would you (Traders) agree.

Abde, Thanks for your insightful input. Its interesting that you say that price has nothing to do with the underlying issues. There are days when I would totally agree with you, then there those from other forums, and here at TL that disagree with you. I'm even more confused now

Jose, thats brilliant mate - I was getting some negative feedback elsewhere. It was suggested that I use another index instead of DJIA because so many people use it. It was suggested I use NQ. What do you think? Cheers

Trade winds I have a custom Excel calculation.

The DJIA is made up of 30 stocks - that is what I meant by underlying issues. Cheers

Hello Traders, I'm still relatively new to trading and I was wondering if you guys/gals can shed some light on what's been happening with the markets over the past week. Basically, I've been having reasonable success trading YM(mini-dow) by focusing on the movement of the underlying issues of the DJIA. I have a very basic signal to alert me as to when to buy contract(s), however I won't enter until I see strength in the underlying issues in the direction inwhich I want to take the trade. I use the opposite method to get out i.e. when I see weakness in the underlying issues. As I've mentioned, its been working quite well for me, however over the past couple of weeks the strength of the underlying issues simply won't move the YM. There have been situations, (even as I write this post) where every single issue of the DJIA has been trending up but the YM still won't move with the issues. Now, I'm assuming the mini-dow would follow the underlying issues of the DJIA, unless told otherwise? I'm beginning to think the past few months was just luck. Can someone please advise if they believe observing the underlying issues as a method to trade Minis, whether it be S&P 500 for es-minis or DJIA for the mini-dow is a feasible/viable method? Now, I'm aware that the markets are simply wild at the moment and no matter which direction the strength of the market is at any moment in time it seems to be turning in the opposite direction in a split second. As you've probably guessed I day trade. For those that take the time to respond, please be constructive in your comments with pros/cons. You comments, suggestions and advice will be very much welcomed. Cheers Carlton

Very interesting indeed. I will also be studying it this weekend. I will provide feedback.

Would also like to get opinions on using the underlying stocks to trade the YM.... Thanks