those of you who use the trin for your trading decisions - how do you do it? for example - no shorts below 0.5 (0.6 ...) no longs above 1.5 ... no trades at all btw 0.9 and 1.1 ??? please tell!
In the past few weeks the best use I have made of the TRIN was if the ES were pretty much doing nothing around 2:30 p.m., but the TRIN was steadily decreasing, I made a bet on a last hour rally in the ES.
I keep trin on my screen but to tell the truth havent found much use for it on an intraday basis other than confirmation of a trend day situation when it hits extremes.
trin has chart patterns. you can identify triangles, trendlines, pullbacks etc., they are reliable most of the time. if trin doesn't confirm price then that's a powerful signal, because it means that volume doesn't confirm price.
I keep the TRIN up at all times -either the 2 minute or the 3 minute chart. The individual bars are less significant than the TRIN trend. It is always opposite of ES. When I see the TRIN rise outside the trend line, I know there will be a reversal or retracement of the current trend. When TRIN is above 1.5 or below .5, the probability for a strong reversal is that much stronger, but just as stochastics can "pop" i.e. a strong trend can overcome an "over-bought" condition of >80%, or vice versa on the "over-sold" side, the $TRIN can do the same. I also don't stop trading in the middle range. This works well for the daytrade on the ES. Peace.