TICK & TRIN

Does anyone use these indicators?

According to John Carter @ SFOMagazine rules for TICK are:

Between -400 and +400: market consolidating/noise

When short and TICK > +800: cover
When long and TICK < -800: cover

When short and TICK < -1000: cover
When long and TICK > +1000: cover

Constant + and peaks over +1000: strong uptrend
Constant - and drops below -1000: strong downtrend

More info: http://www.sfomag.com/articledetail.asp?ID=635803948&MonthNameID=August&YearID=2005

Does anyone have a set of rules for TRIN?

Which TICK and TRIN do you use for which contracts?

I've just looked up CVB Chart. I stands for Constant Volume Bar Chart. I believe that this chart starts a new bar each time a predefined number of contracts/stocks have been traded. I refer to this as a Volume Chart and I am a big fan of this type of chart. I believe that this type of chart is the most valuable in trading. I had never heard it referred to as a CVB chart before.

From the way that you've phrased your questions it looks like CQG probably offer volume of contracts or ticks traded to be plotted using the CVB method. In other words, the use ticks as a proxy for volume. Ticks usually correlate to volume at about 95% so this is good.

Don't get confused between ticks and TICK. They are very different. The first refers to each trade executed irrespective of size. The second refers to the NYSE TICK which is the indicator we're talking about here.

Using a CVB chart to plot the NYSE TICK is not useful if the NYSE TICK is being generated on a constant basis like it is in eSignal i.e. every 6 seconds because you will always get 10 ticks per minute so you can just as well use a volume, tick, or time based chart and they will all produce essentially the same pattern.

If, however, the NYSE TICK information is being generated in real-time on your system then plotting the NYSE TICK information on a CVB chart and a time based chart will produce very different results.

Thank you! I do have a CQG tick chart with fast updates. I'll see if I can find out the time frame. The CVB chart is a tick chart, so I have mine set 233. It creates a new bar every 233 ticks,then I add two MA and watch for cross overs as well support and resistance.

You're very welcome. I think that it's important to understand how the indices are calculated or constructed as well as the charts to get an intuitive insight into what you are seeing.

As an analogy: A person with a good grasp of the English language and vocabulary will see more in the text on a page than a person with a lesser or poor understanding of the language. When reading a chart, if you understand the underlying concepts of how that data is constructed you will (1) understand more about what the market is doing and (2) grasp those ideas faster.