Friday 7 March 2008

TRIN and Other Oscillators

Latest TRIN, Put Call Ratio and Smart Money oscillator chart shown below. In Wednesday's post I said I was expecting "another push down". Both Thursday and Friday were down and now we've breached 1,300.

TRIN and Other Oscillators Image

TRIN and Other Oscillators (Emini daily)

My 3 swing trading oscillators (TRIN, Put Call Ratio and Smart Money Index) are all over-sold with readings of -98, -274 and -153. But none have started to turn up yet.

The TRIN oscillator is usually the first to turn and there was maybe some hope with Friday's adjusted TRIN reading of -24. The adjusted TRIN usually ranges from -100 to +100 and so a reading of -24 is only mildly bearish. In addition, the Better TRIN is showing a bullish divergence pattern.

Volume on Friday was also very high at 3.1 million contracts traded. High volume at lows usually indicates panic selling by the public and professional accumulation.

I would normally find this setup with over-sold indicators, high volume and TRIN divergence bullish. Suggesting that we might put in a significant low in the next 2 days. However, I've just looked at the latest Commitment of Traders numbers - and they are not pretty. I'll update my Commitment of Traders charts in the next post.

You can read more about the TRIN indicators here. Good luck with your Emini trading.

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