How to Use VIX and TICK in Futures Trading

[davewolfs 10]

Hello all,

 

I'm fairly new to futures trading and would like to starting trading ES Mini futures. I've read that using the VIX and TICK can be good indicators in helping to understanding overall market direction and price action.

 

I was hoping that one of you could point out how you use both of these indicators with your trading or perhaps provide a link to some info that explains when and how to use either the VIX or TICK.

 

Thanks!

[Eiger 10]

I think the NYSE Ticks are incredibly useful in trading the S&Ps. Here is a link t a pretty good article that will get you started:

 

https://www.lbrgroup.com/images/terry_april_2002_AT.pdf

 

Brett Steenbarger has probably done the best work on the Tick, including creating several useful indicators. His material is not really well-organized though, so you have to hunt and peck your way through a lot of blog and article posts. You can google steenbarger and ticks and it will return many of the articles. Here is his site:

 

http://traderfeed.blogspot.com/

 

Eiger

[davewolfs 10]

Thanks for those links. That article is great.

 

Any similar style articles on the VIX?

[Mavrik00 10]

Dave,

 

The key to using these types of sentiment indicator is how they relate to specific points in the market.

 

For example, a 1000 tick reading isnt so special these days, however, if you see that at 935am price trades at HOD and tick is 700, and then 2 hours later the prices attempts to break the HOD once again, but this time the TICK reading is 1000, there is something to watch there...and it has to do with the 1000 reading, relative to its reading at the same level earlier in the day.

 

Using readings at specific levels are one way to use these, there are many more effective ways to use both.

 

Hope it helps!

 

Mav

Edited March 18, 2009 by Soultrader

[reres 10]

does anyone know where to get TICK readings for EU markets. DAX and FTSE ?

 

thx

[david22 10]

you probably have to use software like neoticker to create your own tick

from a basket of stocks.. eg, ftse100, a tick calculated from the sum of

100 stocks.

 

theirs no vix, but you could create advancers, decliners, up/down volume etc..

[BlowFish 10]

My broker (IB) gives FTSE tick - symbol:TICK-LSE. The fact they don't offer DAX leads me to suspect that it is provided by the exchange rather than constructed by them. They also offer a couple of asian and europeans 'ticks'. Don't know about VIX.