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Soultrader

NYSE Advancing Issues Market Internal Tool Study

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Alot of day traders are now watching the same market internal tools: ex. TICK, TRIN, TIKI, PREM, PC Ratio. I figured why not bring the old school back? I know the Advance/decline issues was a common tool used back in the days. I am sure alot of traders still use this.

 

I have decided to look into the NYSE Advancing Issues internal tool. (Ticker Symbol: $ADV) The reason why is because of the simplicity of it. If price if lifting we like to see more stocks advancing as well. If price lifts while stocks decline, this is a warning signal. The ADV tool gives off pure information in my opinion. If you have further insights on this tool please share it with us.

 

CLICK HERE TO VIEW VIDEO

 

 

Charts created by Tradestation

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Have you looked at plotting the adv/decl ratio line? Very similar to adv, but plots it as a ratio. Any time the value goes above 1.0 we have more advancers than decliners, and vice versa. Might be good for you to look at also. You can set it up in TS quite easily. Let me know if you want me to show you how. I have the adv/decl ratio in my TS workspace.

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Ive never really look at it. Im sure I can get it to set up on my TS... the question is do you find it useful? How do you build a strategy around it? If you have any insights please let me know :)

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Soul : I like this thread, would like to work on this too...¡¡ I think its true the fact that we have a much more simple to read internal tool there... and should remind that it is one component that forms part of the trin formula... so looking at a simplier version of trin data... would like to look deep into its possible intelligent aplications.... nice video Soul cheers Walter.

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Soul : I like this thread, would like to work on this too...¡¡ I think its true the fact that we have a much more simple to read internal tool there... and should remind that it is one component that forms part of the trin formula... so looking at a simplier version of trin data... would like to look deep into its possible intelligent aplications.... nice video Soul cheers Walter.

 

Very good point Walter. That never crossed my mind. I will be posting more insights on this one.

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Soul: you already know I am a very small time frame trader, almost scalper... you would like to take a look, (just experimenting at this point)(inspired on this all new thread) at a 4 tick chart of $adv.... and put in to it a TTM trend paint bar... and some averages... must confess it looks cool...

5aa70dc9a56f0_adv4tick.thumb.jpg.c3972e6ba00891ec2e5e6c1d42fc4af1.jpg

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woah! what exactly did you do? The 4 tick chart $ADV is plotted directly on the TTM.. so you are using it like a super fast moving average? How many bars do you set your TTM to?

 

I noticed that indicators can not be overlayed on a tick chart. I am very curious if the $ADV can be plotted as a line of close chart directly on a tick chart without the scaling. (just experimenting)

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well, I created a 4 tick chart of $adv and inserted a (default setting) ttm paintbar to it, the averages are custom mine, can share formula if interested.... thats it, I find that it can be a powerfull timing tool... cheers Walter.

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Ive never really look at it. Im sure I can get it to set up on my TS... the question is do you find it useful? How do you build a strategy around it? If you have any insights please let me know :)

 

I look at it to give me a general idea of market direction. I look at the trend of the adv/decl ratio and the 1.0 line serves as a threshold for a bullish or bearish market. If we are above 1.0 and trending up, then we're in a strong market, and vice versa. I haven't studied it hard enough to look for signals, just been looking at it these last few weeks, to see how it reacts to the market.

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Check this out. I am starting to seriously get enlightened with designing trading strateges based off this. Thanks walter for taking this thread to the next level.

 

This tool might be alot easier to read than the rest of the market internals. The next step for me is to figure out a timing on entries.

advline.jpg.2f18fed6d297ba0fa3424b66a9ddb0ae.jpg

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ok Soul : the chart is like the one you posted (150 t) , only that it is a 4 tick speed... I attach the averages call them "Trigger Lines", they are a linear regression curve 20 and an exponential signal 5 of the curve... you can play with does settings.... I also attach a chart of a simple "Average Reject" type of trade on YM.... being "better timed" with $adv... just ideas... nothing oficial... love to experiment with this.... cheers Walter.

 

 

pd: the trigger lines at the ym chart (22 ticks) are set to 80/20...

TRIGGER LINES.ELD

5aa70dc9c1b3b_advtiming.thumb.jpg.75553474a120142f8be12e3744264c3d.jpg

5aa70dc9c89eb_advtiming2.thumb.jpg.84b51832ae53a85ddae09788d1fe945a.jpg

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yes Soul I actually use Esignal data with Owndata feeding a standalone Tradestation 8.1, ES stands for "Esignal"... on every chart of mine symbol will start with ES: (then symbol).... cheers Walter.

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on the last example, $adv is a 4Tick chart and you have YM on a 22 Tick chart... you can decompress price action and see with more detail whats happenning...(more precise timing) now the spirit of the trade is on a 110 Tick chart actually, this is ideal if you are scalping or trading very short moves... cheers Walter.

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Here I bring more experimental madness : now this is a 2 tick chart of $adv with ttm paint bars, trigerlines and $NT Trend Friend... 1rst) Trend is established with a break of this "parabolic type" band... 2nd) we get a pullback inside the trend band 3rd) continuation "Entry".... I believe there is a great potencial on "timing" with $adv.... just experimenting.... cheers Walter.

5aa70dc9cecec_advtrend.thumb.jpg.5957c1d3d896dc796c8c0f259cab27ef.jpg

5aa70dc9d6db0_advtrendtrade1.thumb.jpg.49dc76f8dff1de54e59de292281d5af2.jpg

5aa70dc9ddfb5_advtrendtrade2.thumb.jpg.e66089a47e9268a98ae5c7889b45be80.jpg

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Looks pretty walter... but you are slowly starting to lose me :confused: I agree that there is great potential using the $adv for market direction and entry timings. I thought Ide take a look into the $ADV for its simplicity... now Im starting to see complexity :) Good stuff though walter... I will try my best to keep up.

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I agree with that Soul, try to KISS... I think it is possible and at the same time take very good edge from this internal... will try to keep experimenting from the simple side.... cheers Walter.

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