Coding for blah

[Gringotts Bank]

The market at the moment is 'blah'. I mean, anyone can see that. But what about coding for moments when the market is like this?

Momentum doesn't show it, nor volatility, nor ROC, nor any MA....and yet it's very clear, even last night, that nothing was going to happen much today.

I have a few composite indicators I use, and yes, they are down, but not more down than other times when the spec market was ripping along.

I need a good "standstill" composite indicator if anyone has one. Currently I use intuition, which is reliable but requires a fair bit of work and I haven't found a way to automate it. Less work is always preferable.

 

[burglar]

From Christmas to mid January, the market is generally "blah",
due to movers and shakers being on leave (with some exceptions)!

Why not use volume?

 

[Gringotts Bank]

I realize the big caps go quiet, and that the Ords volumes are significantly lower, however the small caps can push along strongly in flat markets during the Jan holidays. we're not seeing that however.

 

[Gringotts Bank]

oh I see what you're saying, a composite volume indicator for the small caps. Yeh, that might work thanks.

 

[pixel]

oh I see what you're saying, a composite volume indicator for the small caps. Yeh, that might work thanks.

It seems your "blah" is similar to what I call "meh" - when the price oscillates around a long(ish)-term moving average plus/minus 5%; if you're talking penny stocks, you may consider plus/minus 3 price ticks or something.
Combine that with piddly daily turnover, and you get a "meh" period.

 

[Synergy]

It's interesting this holiday period...

January was my worst month last year, which is not totally surprising considering what the XAO did last Jan, but I clearly remember holding some small caps that fell sharply and went very quiet.

I was very watchful coming into Christmas this time and considered selling all and taking a watch and wait approach, but I decided to stay in.

I have also noticed this blah/meh (blahmeh?) this year, but not to the same extent and I think I'm probably slightly better off having stayed in the market.

Sure the volume is lower over this period, but who are the people still trading? Is it likely that the smaller punters who are normally at work are keen to spend some time in front of the sceen trading? Perhaps more actively than they normally would?

I would assume that although generally things are quieter and there is less movement overall in stocks, that the traders are less skilled and trading less rational than usual. Opportunity, but unpredictability.

As for coding it, I'm not sure I'd bother. It's going to be a quieter period every year, and basically last for the same time each year. Perhaps if daytrading things would be different...

Any daytraders treat this period differently?

 

[gav]

The market at the moment is 'blah'. I mean, anyone can see that. But what about coding for moments when the market is like this?

Momentum doesn't show it, nor volatility, nor ROC, nor any MA....and yet it's very clear, even last night, that nothing was going to happen much today.

I have a few composite indicators I use, and yes, they are down, but not more down than other times when the spec market was ripping along.

I need a good "standstill" composite indicator if anyone has one. Currently I use intuition, which is reliable but requires a fair bit of work and I haven't found a way to automate it. Less work is always preferable.

Sometimes the best trade is to stand back and not trade at all.