The internal strength of the market can be gauged using many internal measures including Up Volume, Down Volume, Advancing, and Declining Issues. The Market Thrust indicator combines these four values to produce a single plot that gauges these internals. It is simply a plot of (Advancing Issues X Advancing Volume) – (Declining Issues x Declining Volume). On strong trend days the indicator will generally trend one direction all day. The indicator is also particularly adept at showing divergences between price and internals. Added to the upper left corner of the indicator is the Up Volume – Down Volume as an additional reference. Note the second image below of this week’s market. The slow grind up on Wednesday afternoon was accompanied by ever worsening internals. The rest, they say, is history.
Market Thrust
# TS_MarketThrust
# http://www.thinkscripter.com
# thinkscripter@gmail.com
# Last Update 22 Jan 2010
declare lower;
input AvePeriod = 10;
input showOnlyToday = YES;
def T1c = (close("$ADVN")*close("$UVOL"))-(close("$DECN")*close("$DVOL"));
plot T1 = if showOnlyToday and getDay()==getLastDay() then T1c else if !showOnlyToday then T1c else double.nan;
T1.setDefaultColor(color.red);
def TAvec = average(T1,AvePeriod);
plot TAve = if showOnlyToday and getDay()==getLastDay() then TAvec else if !showOnlyToday then TAvec else double.nan;
TAve.setDefaultColor(color.white);
plot zero = 0;
zero.setDefaultColor(color.yellow);
def U = close("$UVOL");
def D = close ("$DVOL");
def DVOL = U - D;
AddChartLabel(yes, concat(DVOL, concat(" ",
"UVOL-DVOL")),
if DVOL > DVOL[1] then color.green else color.red);
Thanks Eric. This should be helpful to trade in the right direction of the market internals. Does it have any significance in cross the lines over each other to show bullish and bearish divergances.
The white line is a moving average of the Market Thrust. I would watch the indicator real time and see if the crossovers of a particular moving average have significance in your style of trading.
-Eric
Eric,
is possible to plot a green or red dot when cross over each other in the negative or positive terriroty( Similar to one we have in vevroot cross over studies). This will help to wait for take trades after the confirmed reversal and cross over.
Thanks. This is terrific. Let me use it put in real paper trading test next week on this.
That’s a remarkably (and deceptively) simple study. I was watching the internals all last week — each as separate studies of the tick, tick/q, a/d, vol, vix, etc. Wednesday was ugly. Thursday, after watching the market fall out of bed, I called each of the companies trading for me and told them I wanted to be as closed to fully hedged “dollar for dollar” as possible. Friday morning, I called again around 9:00 with a sort of hesitant “well, let’s hold a defensive posture, if it reverses and climbs into the close, we’ll go long.” It seems like the market was holding off until the split second I got off the phone before it jumped out a window and the rest is history. I’m still dismayed by the irrational panic selling in GOOG. Inexplicable. And I don’t purport to know what to do on Monday. I guess I’ll watch momentum and my familiar array of the internals and try to take this study into account, too.
But will Monday be history or yet another intervention from the unseen hand of Geithner “whatever it takes” and Bernanke instructing their stooges to throw freshly borrowed money and printed paper into the furnace to keep hell from freezing over?
I won’t be buying the dips for quite some time….the character of the market has changed once again and it is my working thesis that the bear is back for a while. This week will be interesting to say the least.
-Eric
Another interesting day for testing this use of the internals. The VIX pretty much told the story all day. And I’m getting eaten alive on GOOG! I’m so full of AAPL, I don’t have enough cash to buy that Apple Tablet! : ) There’s a paradox — what happens if traders have to sell their AAPL to buy their Mac Tablet?
Love the company and their products…stock looks like it is about to fall off a cliff.
-Eric
Great indicator – I’ve heard a lot of discussion about whether a lot of weight can be put into the internals as a lot of the inverse ETF volume is caught in the UVOL and DVOL – any thoughts or ideas ? I’d love to use the internals more than I do – I’ve been cautious though with the inverse ETFs
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Another thought -
Does TOS allow you to code “range bars” ? The range bars are candlestick type price bars that form after price has moved by a pre-defined range from the previous bars. I was thinking about trying to code something like that – but have been unable to figure out if thinkscript allows you to code price bars ?
Thanks for your help !!
I don’t trust the internals as much as I once did but I still find value in them. There have been numerous days where the TRIN was so incredibly “Wrong” that I did not know what to believe. Still, the Market Thrust did a great job last week revealing the weakness in the market despite some of the price action.
There is no way that I can think of to code range bars. This is a good one to fire off a request directly to TOS and ask to put on their “List.”
-Eric
The word is that Range Bars will be coming in the April update.
For me, the best and most useful indicator on Thinkscripter.com. Thank you very much!
I got this error msg:
3 params expected but 4 found while calling addchartlabel at 24:1
Wrong parameter type for AddChartLabel:text(expected/get=class java.lang.String/double)
Wrong parameter type for AddChartLabel:color(expected/get=class com.devexperts.toschart.model.CustomColor/class java.lang.String)
Incompatible parameter
Is there a revision, or did I screw up something?
Yes, the final line has been corrected.
-Eric
Hi,
would you happen to have an update of this, from the looks of it with the new build (1756) in TOS, this doesn’t work.
Thanks
Not having any problems on my end.
-Eric
Hi
Its not working on tick charts. Is there another version of this study which can be used on tick charts?
Thanks
No. The market internals data is not available in TOS on tick charts.