Market Internals are similar to the instrument cluster on your car, without them you really do not know the condition of the market or how fast you are moving.
The 4 Core Market Internals:
Each indicator has a separate reading for the NYSE and NASDAQ, but our primary focus will be on the NYSE.
You can setup your trading screen to neatly display all four market internals in chart form, or insert a bit of code to display them in numeric form.
The above is an example of my market internals grid setup. I use thinkorswim® for my charts (now powered by TDAmeritrade). Click here to open an account.
I got the idea for this Market Internals chart setup from Peter Reznicek (aka. Shadowtrader). Here is a breakdown of the chart symbols for Thinkorswim. I put together a 45-minute Market Internals Webinar which goes into more detail on applying market internals and walks through trades on the ES and YM.
- Breadth Ratio $UVOL – $DVOL (or $VOLD)
- AD Line $ADVN – $DECN (or $ADD)
- Trin $TRIN
- Tick $TICK
For the NASDAQ we add a /Q to the end of each symbol:
- Breadth $UVOL/Q – $DVOL/Q
- AD Line $ADVN/Q – $DECN/Q
- Trin $TRIN/Q
- Tick $TICK/Q
Visit EminiMind on YouTube for live videos using market internals.