TICK/TRIN , not as useful once you advance into an advanced trader???

Discussion in 'Strategy Development' started by coolweb, Aug 6, 2005.

  1. Hello,

    I use to watch the market breadth like it was some golden goose laying money making indicator.

    But now I find it almost not as significant now that I'm focusing more on price and volume and time. and espically time & sales.

    It seems like the only time TICK is worth watching is when its peaking to 800 or very extremes,
    other then that, I find little use of it now that price/volume talks a whole lot more of story regardless.

    Anybody agree?

    I still watch for extreme levels, not much anymore then before when I started.

  2. Sorry but I disagree. I think watching them obsessively is one of the most important things a newbie can do. Like everything else, they will give you false signals. If anything, I think they become more useful as one gets more experience in using them.
  3. landboy


    I am hesitant to say price/volume is much better. Not to say that tick/trin is great, but it does give you a sense of what the underlying is doing and not focusing so much on the derivatives alone. However, saying price/volume is perfect is in my opinion like saying technical indicators such as stochastics, obv, momentum etc etc are better than tick. All these indicators use simply price and volume, interpret them to their best of their ability, and we all know how notoriously inaccurate they can be.

    Is there some way that youre using price/volume that is significantly more reliable than breadth?

  4. they have there uses and are very helpful in seeing changes in tide.
  5. lets not forget that all indicators are derived from price & volume.

    I think coolweb is trying to say is that if you can read price and volume......you are looking at virgin data..... instead of pilling on all kinds of filters that basicly are all looking at the same thing...price/volume.
  6. there are indicators that are more important or just as important as tick / trin

    but one also needs to know what is working
    and what is not year to year / month to month
    week to week / day to day
  7. F. d'Anconia

    F. d'Anconia Guest

    The TRIN is extremely useful. I don't use the tick at all. The breadth and advance decline lines however are phenomenal in predicting price action IMHO.

    The Breadth (taking advancing volume and subtracting declining volume) is the MOST important indicator there is . Over time I have found that the top down approach is most effective. Its extremely rare that divergence between the breadth and the broad market does not lead to a tradeable move.

    The easiest trades out there are when the S&P pulls back but the breadth and the advance decline lines dont budge an inch and just stay rock solid at the highs. A monkey could buy that pullback and make money. Reverse the situation for shorts.

  8. I've found the TICK to be only about 50/50 as far as any predicting value. The TRIN is a laaaaaaaggggggggiiiiinnnnggg indicator, imo. I'm speaking from the viewpoint of 1-5 min. timeframe, however, as that is all Im familiar with. Fwiw there is an article on TICK in the new ActiveTrader.
  9. TICK is a tool for scalpers, only.
  10. Lucrum


    I've read separate articles on the Tick and Trin recently that made me take another look at them. I'm trading 3-5 minute charts, price action only, and so far I haven't found either to be particularly useful. Still even though I don't use them directly I do keep them on a small quote window in the corner of my screen just to be aware of them.
    However just because some of use don't find them useful doesn't mean they are necessarily useless for everyone. We all choose how we're going to view or perceive "the market". Be it OHLC bars, candles, various time frames, patterns, tick charts, no charts, TA, FA, DOM, time & sales, indicators you name it. What works for one trader may not work for another. IMO you should experiment and find out whether it works for you. If it works then use it regardless of what anyone else says.
    #10     Aug 7, 2005