Download software Tutorial videos
Subscription & data-feed pricing Class schedule


New account application Trading resources
Margin rates Stock & option commissions

Attention: Discussion forums are read-only for extended maintenance until further notice.
Welcome Guest, please sign in to participate in a discussion. Search | Active Topics |

ETFs and the BOP, TSV, moneystream, RSI and Volume Indicators Rate this Topic:
Previous Topic · Next Topic Watch this topic · Print this topic ·
DarrylD
Posted : Friday, June 06, 2014 3:43:57 PM
Registered User
Joined: 9/16/2013
Posts: 29

Big question regarding the ETFs and the "accuracy" of the indicators. I have learned that BOP is not a good indicator for the ETFs in the marketplace. Possibly for some sector specific ETFs, but not for anything other than that.

Now, can we effectively use the remainder of the one listed as an adequate guage for a decision or are they too muddied by the basket of internal holdings?

What I have noticed on several scans, and even most recently, is that price action continues to rise while the volume lays below a 25 day MA line. So, is volume an effective measure, since we can't use it in conjunction with BOP,  or should we only consider the ETFs as a position trade and not worry as much about volume since consistant below-average volume is "normal" for a position or longer-term trade?

As it applies to an ETF, is Moneystream measuring the flow into the ETF itself or into the underlying holdings within the ETF. I am thinking through this and I am not sure if that is the same question. It's either the underlying equities or the ETF itself.

You guys do a fantastic job with this support area and I apprecite your feedback.

 

StockGuy
Posted : Friday, June 06, 2014 4:04:58 PM

Administration

Joined: 9/30/2004
Posts: 9,187

BOP, TSV and Moneystream are all calculated using the price and volume of the symbol they are plotted on.  So they are using the trading volume of the ETF, not the underlying equities.

Bruce_L
Posted : Friday, June 06, 2014 4:05:53 PM


Worden Trainer

Joined: 10/7/2004
Posts: 65,138

The trainers can't give setting, interpretation or investment advice. I will move this topic to the Stock and Market Talk forum where other traders are more likely to see it and reply.

Basic Info on BOP, TSV and MoneyStream

What I can discuss to some extent (but considerably less so in the of BOP, TSV and MS since the calculation of these indicators is proprietary) is indicator construction.

RSI is based entirely upon price. It does not involve the use of volume in its calculations.

Based on public comments about Balance of Power, Time Segmented Volume and Cumulative MoneyStream, it can be said that these indicators are based on the interplay of various price components and volume.

ETFs actually trade. The price is mostly a reflection of the holdings of the ETF, but it can have pricing variations related to that particular ETF.

The volume of the ETF is based on how much that ETF as its own equity has traded. It does not reflect the underlying volume of the ETF holdings.

So there are at least two effects in indicators which are different between stocks and ETFs.

For a stock, both the price and the volume are for that stock alone.

For an ETF, the price is a composite of both all of the individual holdings of that ETF and factors related to the ETF and the volume is a reflection only of that individual ETF and not of its holdings.



-Bruce
Personal Criteria Formulas
TC2000 Support Articles
sbukosky
Posted : Sunday, June 08, 2014 12:31:33 PM
Registered User
Joined: 6/17/2012
Posts: 36

I like to trade triple leveraged ETF's. I research the larger holdings within the base ETF and make my predictions based on these stocks. My probabilites are based mostly on Fibonacci levels which help identify supply and demand zones.

diceman
Posted : Sunday, June 08, 2014 1:15:10 PM
Registered User
Joined: 1/28/2005
Posts: 6,049

QUOTE (DarrylD)

What I have noticed on several scans, and even most recently, is that price action continues to rise while the volume lays below a 25 day MA line. So, is volume an effective measure, since we can't use it in conjunction with BOP,  or should we only consider the ETFs as a position trade and not worry as much about volume since consistant below-average volume is "normal" for a position or longer-term trade?

 

 

Be careful around holidays.

(like the recent Memorial Day weekend)

 

 

Thanks

bud11
Posted : Monday, June 09, 2014 10:32:45 AM
Registered User
Joined: 12/22/2009
Posts: 10

Post your favorite easy scan.  looking for new idea's.

Users browsing this topic
Guest-1

Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.