| If you day trade stocks, you probably use some | | | | market internals may be useful to your day trading |
| form of intraday stock charts on your day trading | | | | styles. If nothing else, consider adding at least one or |
| software for analysis. Even trading firms which | | | | two market internals as parameters if you back-test |
| specialize in tape reading may keep an eye on a | | | | any intraday trading strategies. For example, |
| chart of the overall index just for a quick reference! | | | | back-test the exact same strategy when the TRIN |
| While the market's mechanics are changing due to | | | | is less than a certain value; and then compare the |
| changes at the exchanges, greater reliance on | | | | back-testing results when the TRIN is above, or |
| algorithms by the institutions to execute trades, and | | | | equal to, that certain value. |
| other regulatory changes you still can use intraday | | | | - Some day trading software packages may even |
| stock charts to help you in your trading. There are | | | | allow you to put technical indicators (such as moving |
| several things you can do to have some foresight | | | | averages or RSI) on your market internals charts. |
| when it comes to your day trading: | | | | Test this capability of your day trading software to |
| - Use a longer-term time frame on a chart to | | | | determine if and when it will have any relevance for |
| understand the "big picture." For example, if you | | | | you. |
| trade using 10-minute charts, take a look at the daily | | | | - Do your end-of-day homework to determine which |
| and hourly charts. Even you classify yourself as a | | | | symbols have a likelihood of going up the next day |
| "scalper", taking trades with an expectation of | | | | and those which have a likelihood of going down the |
| making less than 1% of the stock's current price | | | | next day. While there are absolutely no guarantees in |
| (meaning a profit target of less than $0.30 for a | | | | the market, using charts to help you determine |
| $30.00 stock), the larger time frame charts will help | | | | POSSIBLE market direction can help you narrow your |
| you filter out those which are nearing significant | | | | focus for the next trading session. |
| support or resistance. | | | | These three suggestions are just some of the many |
| - Use charts showing the market internals. Intraday | | | | ways in which you may use your day trading |
| charts showing the TICK, TRIN, TIKI (Dow Jones | | | | software charting capabilities to help you possibly |
| TICK), TIKQ (Nasdaq TICK), Fair Value, and other | | | | become a better trader. |