Market Internals

The Market Internals give Charles an “under the hood” look at the market. 

They represent the momentum in the underlying assets at the exchange level.

The New York Stock Exchange & Nasdaq Stock Exchange

 

Ticks
Advancers vs Decliners
breadth

The Tools

TICK compares the number of stocks that are rising to the number of stocks that are falling on the NYSE. The index measures stocks making an uptick and subtracts stocks making a downtick.

The Tick is also the only true leading indicator (kind of), the others are much slower.

You can find the script for the Tick Values indicator I use to show were the +-1000 levels and zero line are on the shadow trader website.

How Charles uses it: He asks; is it above or below the zero line. Above bullish, below bearish. And is it trending in a particular direction? Also if the trend abruptly changes that is a sign of a change in the market? (reversal).

 TICKQ same as the TICK but for the NASDAQ instead of the NYSE.

ADSPD refers to the number of S&P 500 stocks that closed at a higher and those that closed at a lower price than the previous 15 minutes (or whatever time frame you have it set to). 

If your trading platform does not have ADSPD it should have ADD; which is for the entire market, it is just as useful and reads exactly the same way.

How Charles uses it: He asks; is it above or below the zero line. Above bullish, below bearish. And is it trending in a particular direction?

VOLD is the difference between the up volume and down volume on the NYSE.

 

How Charles uses it: He asks; is it above or below the zero line. Above bullish, below bearish. And is it trending in a particular direction?

15 minute increments

to each their own

It’s important to understand that there is no one way to look at any market generated information.

Charles’ internals are set to 15-minute candles. This is only because he found the 15-minute to be the most useful. 5-minute was too busy, it provided too much information, which felt like noise. 30-minute was too slow, he couldn’t wait that long for a new signal. So 15-minute candles were the sweet spot.

With with the TICKS many people watch 1-minute or 5-minute TICKS and find it very useful.

View the internals on tradingview

charting platform