Monitoring convergence or divergence in internals and correlated instruments is an effective method for gauging market direction. For Market to continue in the current direction, there should be CONVERGENCE in instruments and internals. For eg, If TICKS made a high,…

Internals may be used to identify range days as price action is being evolved.  Spreads usually may have a divergence in top and bottom indicating no clear direction.  TICKS will also hit 600 and -600 in succession indicating lack of…

During my evolution as a day trader, I went thru phases of learning and development. At some point I concluded that it was the trader and his psychology that will determine success in trading arena. I realized that once you…

ES, NQ, YM and TF are correlated instruments. Monitoring Divergence in price action between these instruments reveal a lot on the underlying strength of the Market. Divergence may be used as another criteria in detecting market strength along with Market…

Market Strength Indicator is a Paint bar study that will paint the bars red, green or yellow based on market strength. This will visually show the start of a move, move getting weak and the eventual reversal. This indicator SHOULD…

Identifying who is in control of the market will help avoid trading on the wrong side of the market. This translates to measuring buying or selling pressure in the market. Market control is fairly obvious during a trend day or…

It is very important to stay focused and objective while analyzing market internals. If the trader maintains some kind of bias from news or other events, chart patterns etc, he may fail to see patterns opposing his bias. While maintaining…