TOS Sizzle index and technical analysis

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cherif

New member
so, i was navigating TOS and i noticed the following: the sizzle index. for those who aren't familiar with it , it shows the daily total calls/puts versus the average of the last five days calls/puts. so if the sizzle index is over 1 it means that there are more contracts today comparing to the average of the last five days. furthermore, you can break it down to calls sizzle index and put sizzle index to see exactly which contracts are being bought on a specific day and how sizzling they are. my question is: based on your experience and trading, how much impact does these indices have on the price action and could they be reliable in choosing the direction of the stock price?
also, is it possible to incorporate these indices with technical analysis to predict price direction?
please feel free to express ur views. thx
 
markos

markos

Well-known member
VIP
Warehouse
Hi @cherif Please fill out your signature. What type of investor are you and for how long have you been doing it?


Here is an example of my Watchlist. Stock Sizzle, Sizzle Index, and Days till Earnings are the last 3. They are all built in. Stock Sizzle can be customized.

The first part of your question is backwards; the sizzle indexes do not impact price action, they show what current action is compared to, say, 5 days ave, in the case of Sizzle Index. Same with the Put or Call Sizzle Index.
The rub is that you only have volume for the options, not whether they were being bought or sold. IMO, they have little to do with price direction.
We have 2 things to hang our hat on; Price and Volume and they are used to make most indicators. They cannot be used to predict price direction.
All we have are possibilities and probabilities. That comes from study and observation.

Anyone else? Please add your 2 cents!
 
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cherif

New member
Thank you for your reply. So the question that remains unanswered is what is the purpose of having a sizzle index on one’s watchlist?
Now, if the sizzling index cannot predict future movements, how come major trading institutions keep an eye on $PCALL to initiate reversals??
Also, when $TRIN touches extremes, it signals reversals and indicates OB/OS levels of the market.
My thesis is why we all strive to make tech analysis relevant on intraday and daily trading, big liquidity uses internals to make moves on the market while the individual trader is left out.
 
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skynetgen

Active member
Warehouse
I been using sizzle and tracking it for quite a long time. I use it to tell me if there is interest in the stock - kinda like relative volume. basically "stocks in play". Most of my intraday scanners filter for szl >2. It is easy and simple to add. However sizzle by itself will tell you nothing else about the direction of move or whether it will happen at all. Just a good way to filter out stocks which very likely to do absolutely nothing.

However I must point out there are some stocks (XLU, XLRE ones ) which can make nice intraday trends without any increasing in szl (and volume).
Large caps have lower sizzle on average. Most high fliers with szl >4 are ones with catalyst. Something like 50+ is usualy midcap with strong catalyst. Also sizzle tends to fluctuate during the day ( with options flow) but there is no way to parse or graph this information (TOS does not expose it)

all in all I think szl is good and simple additional filter to narrow down stock universe but by itself its not sufficient
 
markos

markos

Well-known member
VIP
Warehouse
Very well said, @skynetgen the stock sizzle is also customizable, which allows me to set it differently for different scans
 
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toncuz

New member
Ok then, if sizzle is just puts vs calls...has anyone seen a good TOS script for relative-volume for the first hour of the day? I mean...comparing the first hour with the last twenty FIRST HOUR OF THE DAY. The first hour is almost always above average, so that doesn't count. It must be compared to previous "first hours". Not the last 20 hours of trading. The script must be here somewhere.
 
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Nikola

New member
for your 2 columns, whats the difference between Stock Sizzle and Sizzle Index. I was reading the TOS learning center so I have an idea about "sizzle index". thanks so much
 
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Nikola

New member
Markos, do you customize it when you add the column? I get it that you can customize it for different scans, but wondering how you can customize it for the column?
 

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