TRIN - useless

[notouch 10]

So the TRIN was flat for most of the day even though we had a nice up trend in ES and YM. Supposedly TRIN trending down signifies price is trending up, but if price is trending up then that will be obvious from looking at price. Why would you need TRIN to "confirm" this? It seems when TRIN "confirms" price then you follow it but when it contradicts price you ignore it. In other words you see whatever you want to see. Totally useless.

[Guest FLX]

You are reading it the wrong way that is why it is useless. You want to know if it is a up trend your in or a down trend right. That is it soul purpose. It goes the opposite way for a reason.

You dont plop an indicator, and expect it to work just perfectly, in the real world that is not going to happen.

Find out the person who wrote the indicator and what the reading mean and you will have an answer. Use it as a Trend confirmation tool, you will be surprised!

I was reading it the wrong why, the first few day i had it on the screen. You look for extremes to develope the same time as $ticks with Large volume look for reversal happen in those areas. After a while you start to see pattern develope over and over. FLX

[notouch 10]

Perhaps you could explain and illustrate some of these patterns. I've watched it for several weeks and have not noticed any consistent patterns. It's easy with hindsight to say "Look! TRIN was going down as price was going up!" but this is useless because if price is going up why do we need TRIN to "confirm" this? On a day like today when price was going up should we not have gone long just because TRIN wasn't going down?

[Guest FLX]

Find out what the reading mean and you will have the answer unless your platform does not plot it properly! Flx

[notouch 10]

ESignal plots it fine. Maybe you could enlighten me on "what the reading mean".

[GCB 10]

The TRIN has been pretty useless for months now. I learned from a guy who uses very few internals and the TRIN was once one of them. But he stopped looking at it a while back because it's been unreliable.

[Soultrader 12]

Market internal tools work in phases. The TRINQ was a tool traders used before... now I think its pretty useless. The TRIN worked wonders last year. We have been very rangebound this year so the TRIN is not the greatest market internal tool to rely on. I wouldnt say that it is completely useless.. you just need to find something that is in sync with price.

 

I used to rely alot on the TRIN. But starting this year I actually removed it off my main charts. I do watch the PC Ratio though.. its a great indicator to give you a heads up. The TICK's are still very reliable in my opinion also. If TRIN doesnt work, stick with the PC Ratio and TICK's. If none of them work... well you always have price and volume.

[notouch 10]

I just use TICK, time and sales, price and volume. I like TICK on a candlestick chart and it gives very reliable signals. I'm sure PREM is great if you use it properly - buying the cash index and selling the futures when there's a buy signal and vice versa for a sell signal - but I don't think it's that good just for futures trading.