I've developed what I consider to be the best market internals, market breadth indicator on Trading View to date :)
Market internals (sometimes referred to as Market Breadth) are built-in indicators of the market, there are the following main indicators:
TICK - Uptick or downtick transaction of market (NYSE/NASDAQ)
ADD - Advancing or declining issues/stocks of the market
VOLD - Up volume or down volume of the issues/stocks of the market
TRIN - Trend of market based on ADD and VOLD
VIX - Volatility of the market
PCN - Options market puts vs calls
What makes this different? This single compact indicator delivers an "eyes on glass" style presentation to detail extreme movements of TICK, sentiment analysis of ADD and VOLD as well as their trends and report when the market is most likely balanced or an in imbalance. No need to study multiple clouds and amassing a ton of different charts all with similar indicator setups and candle analysis in the heat of the moment.
Use this to determine the overall initial trend at open, watching for imbalance and extreme movement on TICK as a signal to prepare for potential trades. The metrics table is useful to see where potential rejections/bounces may occur on the volatility index.
Extreme tick closures (see below) can provide excellent trim or exit signals for existing trades depending on the market structure of the day (trending or ranging).
How To Use The main histogram represents the highs and lows of TICK, anything within the +/- $500 region is most likely normal movement while anything outside of that will brighten in color and indicates potential larger reactions. Extreme highs and lows will be represented by white diamonds by default, closures are indicated by bright colored crosses at $0. Price levels should be noted on the securities being traded during TICK extreme movement, these usually act as dynamic support and resistance from my observations but your results may vary (please share in comments your experiences!).
There is a smoothed trend line over the histogram, by default it's white in color, and this represents simply a trend of TICK closures - when it's trending down the market should be following in kind and vice versa; adjust the smoothing length in settings to suit your trading style.
The center line will have colored dots, by default yellow for balanced markets or white for imbalanced markets. When the market is in an imbalance that's when trending moves have been observed and balanced markets are usually choppy with sideways price action not suitable for quick scalp type trading styles.
The upper colored band represents the market overall advancing or declining issues/stocks within the market, by default green tones are bullish for a advancing market and red tones represent bearish market - the brighter the tone the strong the sentiment. There are triangles at all times above this band and that represents a smoothed trend status as compared to the current amount of stocks in advance or decline, if the smoothed trend is above then it's potentially a signal of reversal (red triangles over green band would be bearish reversal and vice versa).
The lower colored band works the exact same as the upper band but it tracks the up and down volume of the issues/stocks within the market, it utilizes the same color and triangle logics as the upper band.
Markets Currently this will present internals data for NYSE and NASDAQ, I'm still researching other markets internals and their particulars.
The signals on this indicator will best apply to SPY, QQQ, ES, NQ or highly liquid ETFs largely affected by NYSE or NASDAQ - individual stocks may have mixed results depending on how they're moving with major indexes so keep that in mind when watching for sympathy moves with the indicator.
Usage Conditions All of the market internals are fantastic indicators when day trading, I've had great success on 1-15 minute and even higher for scalps or intra-day swings. Observing the middle dots will save those of you that struggle in choppy markets from being too aggressive when opportunities don't exist.
Use the triangles, diamonds, dots and crosses to your advantage to manage your scalps and intra-day swings, or gain an edge in preparation for entering trades!
I hope this indicator is a benefit to all for day trading, provide any feedback or feature requests in the comments.
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Updates:
Added visibility toggles for things you may not need (ADD, VOLD and TRIN)
Redeveloped the metrics table to make it more compact
Adjusted ADD and VOLD to allow ratio type display for metric table
Toggle metrics display, turn off what you don't need
Added option to set text size of the metrics table (mainly for mobile)
Adjusted default values for the thresholds of Issues (ADD) and Volume (VOLD) - only affects colors of the bands
Changed threshold settings to single field and handling the +/- in the code to make it simpler - they should always be symmetrical anyways :)
I appreciate all the comments I've received to date, enjoy and keep the feedback coming, happy trading!
@syntaxgeek, no way i could program this lol really appreciate you sharing
RiceActionTrader
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Thanks very much for this! I love the tick histogram and how it shows different colours and diamond for extreme values!
I have a question - What's the difference between Tick 1 and Tick 2? What is the indicator trying to say when there's overlap between the ticks in the same bar?
Also, regarding the VOLD and ADD bars at the top and bottom, I wanted to disable them from being shown, but after unchecking issues band high and low, it still shows.
syntaxgeek
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@RiceActionTrader, hey there I'm glad you're enjoying the indicator. By "Tick 1" and "Tick 2" I'm going to assume you meant "Tick A" and "Tick B" - both of these relate to the measurements of a single bar of tick and behind the scenes I separate the measurements for display purposes and toggle which measurement goes in which slot (A or B) due to the way visuals in PineScript are layered via Z height.
The main concept behind the visualization is to provide easier analysis of tick bars location, it's high, low and closes as well as whether or not the entire bar was above or below zero given tick is a ratio chart based indicator/measurement and zero is significant. The green part is showing where the high of the candle is and the red part is showing where the low of the candle is, when both parts are bright it means the high and the low hit extreme areas, when only one part is brighter then it means only the high hit extreme area (when green is only bright), or the low hit extreme (when red is only bright).
There's a bit more to it than that but that's the best I can do in a comment section to explain it all, no one has asked me before about that particular part :)
If you want to disable the ADD/VOLD bands at the top I'll have to add a setting to do this, currently the plot fills aren't editable and honestly using the style tab to toggle these would be a pain, I've had some others that want to turn those bands off also - the bands are one of my favorite features so it never occurred to me to want to toggle them off lol.
RiceActionTrader
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@syntaxgeek, Thanks for the explanation! After comparing your indicator with the tick charts, makes sense regarding the histogram, just that your indicator makes it much easier to visualise.
Haha, I mean, no need to disable the bands top and bottom as a setting, after all you so kindly shared it to the public for free. It's just that I prefer viewing the ADD and VOLD as normal candlestick charts to see trend and magnitude as well.
Cheers
syntaxgeek
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@RiceActionTrader, the indicator has been updated and now you can toggle off the add and vold bands simply :)
RiceActionTrader
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@syntaxgeek, Thank you so much for your contribution!!
AGT21
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@syntaxgeek, thanks for the great indicator! Have you done a YouTube video walking through how to use it? That would be super helpful.