Emini Trading Indictors to Gauge Market Internals
- February 19th, 2012
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Futures traders love to talk about the best indicators used to trade the markets. All traders have their preferences but there are a few that are cornerstones of all short term technical traders. No matter if you are emini trading index futures contracts or day trading stocks, there are three indicators all traders should have on their trading platforms. One of these is the TICK. The TICK shows how many stocks are declining versus how many are advancing with the result revealing the internal sentiment of the market, either bearish or bullish.
The next indicator is the TRIN. The TRIN is a barometer of the overall market and shows whether it is overbought, which means it is ripe for a pull back, or oversold which means it is ready to change direction to the upside. The third indicator that should be on every trader’s platform is the S&P futures. The S&P futures are the market leader. Whatever direction they go, the entire market will follow making them a leading indicator. If you are not employing these three indicators in your trading system you trading blind and are headed for disaster.
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