TVO System Dashboard Terms Explained

1. TVO stands for Total Volume Oscillator. You can use this indicator to gauge overall market sentiment. When the needle is to right of center, conditions are generally overbought in the long-term. When the needle falls to the left we’re oversold. The further in each direction, the more extreme the reading. Select adjectives (PANICKY, ANXIOUS, HUNGRY, etc.) are used to convey various levels of fear and greed. The sweet spot where market conditions are most ideal is right around the center (between 0 and 3), which is usually the area that triggers our General Investment Strategy to go into “BUY” mode. Otherwise it’s “SELL” and every man for himself.

2. VOLUME tells us how much overall market volume changed from the previous session.

3. HG stands for Heat Gauge. This indicator tells us about the volume for the day. A very hot reading (TORRID, SCORCHING, etc.) means that selling and down volume dominated the session, while cooler terms (CHILLY, FRIGID, etc.) indicate that more up volume and buying occurred.

4. IO stands for Issues Oscillator. It tracks overall market sentiment in a way that’s similar to TVO, except it runs on data from issues rather than volume, and it’s more short-term. Various levels of OVERBOUGHT or OVERSOLD are described by roman numerals I, II and III (Sorry no fancy adjectives on this one).

5. Last 20 Trading Days is a graph that tracks the values of all 3 indicators in a linear fashion… similar to a stock chart.

6. GI is our General Investment Strategy. The signals here are much more conservative than our options trades, which is better suited for a long-term portfolio approach. My IRA is on the GI plan.

7. Next Day Move is a prediction of how the S&P500 (or SPY) will move in the next session. It’s based on historical data of HG values over a 15 year period. SIDEWAYS generally means a +/- .10% percent move. SIDEWAYS/UP or SIDEWAYS/DOWN increases the probability in that direction. A greater than .10% to .20% move is likely when it’s UP (ie. shorts better take cover). The stats for DOWN are mostly the opposite but the data is not as conclusive (going short is not the opposite of going long, despite what some folks believe), so in that case light hedging rather than naked puts would probably be the way to go.

To view past positions check out our Trade History.

To find out what the indicators mean, here's our TVO System Dashboard Terms Explained.

To learn more about market volume, The Total Volume Oscillator, or How We Trade, find us on Twitter (@TradingLicks) and StockTwits!

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