Hubert Senters here.
Let’s take a look at the RPM gauge in the markets. This is the chart that is in the center of every trading application that I use.
And it’s in a center for a reason. Now, obviously it’s in a left. This is going to be price because that’s the most important.
But this is the one that I look at the most to let me know how the market is. Is it healthy? Is it getting stronger, weaker or about the same?
It’s called the NYSE tick. In most platforms it’s going to be $TICK. And I think of it as the RPM gauge of the market.
Now, I don’t have my little writey gadget right now but I’m going to tell you what the formula is. It’s the number of stocks up ticking plus their volume divided by the number of things down ticking plus their volume.
That’s going to be your equation. That’s going to get you where you’re getting this ratio on number so I can pretty much tell you on this example that the market gap down to minus a thousand and work its way to the zero line.
So if you’ve got the ability from your brokerage firm look for the $TICK and then we want to format it in a certain way so that’s going to be your first step.
Go see if you have the market internal, $TICK. And yes, I know there’s a lot of different terms in trading that we use for tick like a minimum transaction a time chart.
And a market internal is a tick. I know it can be confusing but you want the NYSE tick. The Nasdaq has its own chart too. Do that. We’ll come back here tomorrow and I’ll show you a little bit more about this.
Trade Thirsty is hosting Vantage Point on a special webinar this week. I’m going to HYPERLINK you to the registration page.
It is a piece of software that will scan or shortened trades and it will tell you if they’re going to go up the next three days or down the next three days.
Good luck. Hope it helps. And I’ll HYPERLINK you to the registration page.
Hubert.
