Toni Turners use of Tick and Trin.

Discussion in 'Trading' started by MainFramer, Nov 8, 2002.

  1. In "A Beginner's Guide to Day Trading Online", Toni Turner suggests using the Tick and Trin in combination with the following signals:

    Tick > +1000 - market is over bought and MAY pull back.
    Tick > 0 <1000 - go long.
    Tick < 0 >-1000 - go short.
    Tick < -1000 - market is oversold and MAY reverse.

    Trin > 1.5 - market MAY reverse back to bullish.
    Trin 1.5 to 1.01 - go short.
    Trin 1.00 to 0.90 - avoid. Whip zone.
    triin < 0.9 > 0.4 - go long
    trin < 0.4 - market MAY reverse back to bearishness.

    Her book is copyrighted 2000.
    Question: Are these parameters are still reasonable in the current market? What opinions do you have of this scheme?

    I am using this right now, but its only affect seems to be to keep me out of most trades. Maybe that's a good thing.
  2. I find myself looking less at tick and trin each day. In a fast-moving market by the time those 2 indicators show anything useful price has long since passed you by.

    Just my 2c
  3. Tech, what do you look at for a gauge of general market conditions?
  4. the "trend" is often more important than the absolute number -- I also use a 10 period SMA to smooth out the data (on a 1 min chart).
  5. For daytrading, all I use is price action of the indices, futures, sector indices and the stocks I'm playing. Nothing else. No volume, indicators, moving averages, etc. You can't spend volume.
  6. Greendog makes a good point about the trend/direction being more important than the absolute number. Especially for the TRIN this seems to be true.

    For the TICK, I have seen 500/-500 used as the overbought/sold numbers from more than 1 source.
    Also I believe the levels are better for closing a position than initiating one.
    In my (limited) experience, I have seen TICK as high as 1400, but only as low as -850. So if you use 1000/-1000 be prepared for it to potentially go a bit further.
  7. Don't be so quick to discount volume.

    You can't spend volume but volume is the cause and price is the effect. Watching volume can often often tip you off as to how price is going to react.

    Look at volume on RIMM today. The stock opened with short interest still around 20%. Didn't matter how large the gap was, the shorts still got squeezed because a big seller never materialized (yet.) and they had to get out at any price.

    It will be at 10X normal volume by EOD.