Tension indicator from BaconTrading??

BenTen

BenTen

Administrative
Staff
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I read through that page and don't see any description of how the indicator was created or what components it's using. So impossible to re-create unless you can do so just by looking at their pictures. However, I suspect that it's using an index or the like to gauge for market direction.



Here is an example, using $VOLD to figure out if the up and down volume in the New York Stock Exchange correlates with $SPY's direction. I use $VOLD to find divergences.
  • If $VOLD is up but SPY is down, then most likely there is a dip-buying opportunity.
  • If $VOLD is down but SPY continues to move up, something isn't right, I would short
That's my two cents of how I would use it.
 
J

john3

Active member
2019 Donor
@BenTen Speaking of breadth...What would you make of this situation today: https://www.screencast.com/t/SgTe0PwL9x
It happens frequently, an apparent divergence between the AdvanceDecline and Volume. It seems to suggest that the so-called "smart money" is buying or accumulating or absorbing any attempt to sell.
 
J

john3

Active member
2019 Donor
The bacon guy has this. I asked him how does he know how many buy/sell orders are left, he said the following:

"That's based on the volume across the Index, Future, and Stocks in the Exchange. It looks to track how the market traps in baskets of traders to sell as liquidity."

Doesn't really explain it, but it does look very interesting.
 
BenTen

BenTen

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Staff
VIP
Yes, in addition to $VOLD, you can also look at $ADD and $TICK.
 
Shinthus

Shinthus

Member
2019 Donor
I read through that page and don't see any description of how the indicator was created or what components it's using. So impossible to re-create unless you can do so just by looking at their pictures. However, I suspect that it's using an index or the like to gauge for market direction.



Here is an example, using $VOLD to figure out if the up and down volume in the New York Stock Exchange correlates with $SPY's direction. I use $VOLD to find divergences.
  • If $VOLD is up but SPY is down, then most likely there is a dip-buying opportunity.
  • If $VOLD is down but SPY continues to move up, something isn't right, I would short
That's my two cents of how I would use it.
Hey Ben how did you get that as a line? Also, do you think it's possible to make a label with that?
 
BenTen

BenTen

Administrative
Staff
VIP
@Shinthus there is a default indicator in ToS called Comparison. Add it to your chart and select a secondary ticker you want to compare.
 

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