VIX and TICK - how to use and for what ?

Hi abishiai,

I do share some wisdom...hopefully you can find something useful or a seed from among one of my previous posts...

http://www.elitetrader.com/vb/search.php?s=&action=showresults&searchid=125909

Yet...to answer your question...what's plotted are Bollinger Bands (Average High, Low and Close), 20sMA (thin red line) to represent the middle band, 50eMA (thick red line), 200eMA (thick black line) and the MACD stuff is default stuff.

I look for tick reading surges that produce bearish or bullish divergence between the TICK numbers and the MACD histogram or MACD signal lines.

Therefore...I don't need +1000 readings exclusively...however its nicer of a trade setup if such do occur mainly because I'm a Parabolic Trend Trader looking for exhaustion or reversal signals.

(I also use continuation trade signals...but not often...its here where the basic price pattern recognition stuff comes into play)

Yet...I do need the TICK to test its BBand extremes (high or low) before I will consider any trade...

the statement above is what determines (its relationship) if I take a trade in the ES or NQ based on the candlestick patterns in the Eminis.

In other words...I usually stay away from the chop or tight-trading ranges when the TICK readings are bouncing up-n-down near/at its 50eMA...especially when the Eminis are doing the same. Candlestick patterns have less reliability in the chop areas.

I also use basic price patterns on the TICK like triangles, flags, pennants, wedges, rectangles...breakouts or breakdowns thru the resistance and support areas of those basic price patterns.

No rocket science stuff for the above.

However...I have other complicated price pattern setups for trading days like today...but I don't discuss them here...if I did...I'll be posting all week...non-stop...answers producing more questions...

time consuming

Best to just plant a seed and a trader can do what he/she wants with it.

NihabaAshi

 

Thank you. I'll put these things on my screen and see if they are any help.

kp

 

quote from NihabaAshi :

That's exactly what I do also. I also use bollinger bands. I don't necessarily need +1000 or -1000 tick readings. However I'm not looking for divergences, patterns etc.

When the rubber band is stretched too far, somethings got to give.

 

spreadem,

You nailed it...bullseye...

"...when the rubber band is streteched too far, somethings got to give."

NihabaAshi

 

The VIX hit 40 today! Time for a revival!

kp

 

thanks for your comments I think I just discovered another indicator I want to add to my system, interesting discussion.

J-