Monday, July 16, 2007

Continued NYSE Tick Weakness

Monday July 17th, 2007 ES Futures

The NYSE Tick is continuing to display weakness that is not typical of the ES price action. I started to really like the filter capability of the Cumulative Adjusted Tick or CAT Indicator. My problem of recent has been that the continued weakness in the Tick is severe enough to produce CAT readings that no longer match the ES price action and reducing the value of this indicator as a trade direction filter.

I have been playing with some modified Tick calculations. Currently I plan on maintaining the original calculation for the CAT indicator. But the modified calculations help me "see" when weakness in the Tick is producing a bad filter reading. More research will tell me if the modified calculations will help filter my trade directions.

Trade Wise, Trade Well
John

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