Big 8 Intraday TICK
At the start of each trading day (0930 EST), this indicator calculates the intraday price difference between open and close for the eight largest market cap stocks (AAPL, AMZN, GOOGLE, META, MSFT, NFLX, NVDA, and TSLA), assigns a +/-1 for each, and then plots the cumulative change. An EMA has been added for smoothing purposes that is set to 5 but can be changed. Please note indicator is best used on lower timeframes (15 min or less) and has no applicability to time frames above 1 hour.
The thought behind this indicator is those eight major stocks drive a majority of intraday price change in indices like SPY and QQQ that are heavily weighted towards these stocks, therefore they should be a leading indicator in price change. You can often catch a move in SPY or QQQ one to two bars (on 1 min chart) ahead of the actual move because you see this indicator moving strong to one direction.
It's not perfect as there are divergences you will see when you compare historical charts, but oftentimes those divergences ultimately lead to significant price swings in the same direction as this indicator, so recommend being on watch to pull the trigger when you see those and price confirms.
You can use this indicator in a few ways:
1. Confirmation that your current trade is in the same direction as this indicator
2. Use the zero cross as a trigger for put or call entry
3. Focusing only on calls/longs if the value is above 0, or only puts/shorts if the value is below zero. Just be sure to keep an eye on reversals.
If you have recommendations on how to improve, let me know and I'll do my best to make changes.
The thought behind this indicator is those eight major stocks drive a majority of intraday price change in indices like SPY and QQQ that are heavily weighted towards these stocks, therefore they should be a leading indicator in price change. You can often catch a move in SPY or QQQ one to two bars (on 1 min chart) ahead of the actual move because you see this indicator moving strong to one direction.
It's not perfect as there are divergences you will see when you compare historical charts, but oftentimes those divergences ultimately lead to significant price swings in the same direction as this indicator, so recommend being on watch to pull the trigger when you see those and price confirms.
You can use this indicator in a few ways:
1. Confirmation that your current trade is in the same direction as this indicator
2. Use the zero cross as a trigger for put or call entry
3. Focusing only on calls/longs if the value is above 0, or only puts/shorts if the value is below zero. Just be sure to keep an eye on reversals.
If you have recommendations on how to improve, let me know and I'll do my best to make changes.
הערות שחרור:
Chart photo update only.
הערות שחרור:
Updated time from UTC-5 to UTC-4 given daylight savings time. Will figure out a more permanent update for that at a later date. Also trying to figure out how to make this only perform during NY market hours (0930-1600 EST) that way it shows more accurately on "futures" tickers - right now the indicator skews odd when viewing those tickers. Will eventually publish update to correct both.
הערות שחרור:
Code updated to only plot during New York market hours and reset to zero after, making the indicator much cleaner, especially on the EMA to start the day.
Also modified the default line styles for both the indicator and the smoothing EMA. Each are now colored differently to differentiate, making it easier to spot "crossovers" in momentum/breadth from the indicator line to it's average. If you prefer, you can switch the lines to a histogram or even area, and you also have the option to remove the EMA if you don't want it smoothed.
Also modified the default line styles for both the indicator and the smoothing EMA. Each are now colored differently to differentiate, making it easier to spot "crossovers" in momentum/breadth from the indicator line to it's average. If you prefer, you can switch the lines to a histogram or even area, and you also have the option to remove the EMA if you don't want it smoothed.
הערות שחרור:
Adjusted reset time to fix issue when viewing "regular market" hours vs. "extended" or "electronic" hours. If utilizing the EMA with this indicator (it is useful for tracking momentum duration or change), recommend turning on extended hours trading. If you are not using the EMA, then it doesn't matter which setting you use.
הערות שחרור:
Upon further consideration, removed NFLX as one of the BIG 8 because their market cap is so low and inserted BRK.B in its place.
הערות שחרור:
Image update. I like to personally remove the green/red line and just stick with the EMA line set to 5, but preference is all yours!