How To Understand a Market Gauge
You can now create streaming Market Gauges with any of condition you choose from the pre-built library or create on your own. These conditions create True or False results. The condition(s) is then applied to a WatchList to give you a market breadth reading for the condition you have chosen. You can have as many as five (5) simultaneously updating Market Gauges (with the option of more streaming gauges at an additional monthly subscription cost.)
Note: Market Gauge is only available in TC2000 Platinum service level.
What is a Market Gauge?
A Market Gauge allows you to allows you quickly see how many items in a watchlist are returning true for your condition(s) and if that number is above or below average compared to the previous 1500 bars of data.
A gauge is created from the selected condition (1) and can be applied to any watchlist. The number (2) in the center of the Market Gauge shows how many items from your WatchList are currently passing the condition(s). The gauge pointer (3) shows how that count compares to number of stocks normally returned for those conditions based on the past 1500 bars examined. The mid-point (4) between the red and green zones represents the average number of passing items. A reading in the green (5) or red (6) zone indicates that the current count is above or below the average. The deeper you go into those zones the more unusual the count.
In our Example #1 below, notice that the pointer is just above the midpoint of the gauge, meaning that the count (21) is just above the normal result for this condition in a 1 minute time frame. In Example #2, the current count is very high compared to the average for a 39-minute time frame. Example #3 shows the count is extremely low compared to the average for a 5-minute time frame.
Number or Percent: base the Market Gauge on what makes most sense to you
You can display either the raw count of items passing the condition or the the count as a percentage of your selected watchlist.
WatchList: choose the universe from which you want to draw the Market Gauge results
You can use any WatchList in your TC2000 for any Market Gauge.
TimeFrame: choose the time interval you want to examine with the Market Gauge
You can use any time frame in TC2000 for any Market Gauge.
Blending: Acts to smooth out radical fluctuations in the market gauge that may be brought on by some conditions.
Example: using a 1-minute timeframe with the condition, Volume greater than 5,000 shares. Since Volume is a cumulative indicator, it's value resets to 0 at the beginning of each new bar. So, the market gauge would swing to 0 each time a new bar started to form. Blending allows you to carry over the previous bars closing count and combines it with the current bar's developing count. The blend heavily weights the previous bars count at the beginning of the blend period, then heavily weights the current count at the end of that period. In our example, using a blend period of 10 seconds means that at the beginning of a new bar the Gauge would show the count from the close of the previous bar (100% of that bar's count). At the 1-second mark in the new bar, it would blend 10% of the current count with 90% of the count from the close of the previous bar. At the 2-second mark it would blend 20% of the current count with 80% of the previous bar's count. This would continue until the 10-second mark, at which point it would show only the count from the current bar.
Condition: choose or create the conditional criteria of the Market Gauge
Use conditions from the pre-built library, or ones you create or write with formulas as the criteria for the Market Gauge.