{"id":4343,"date":"2019-10-15T10:09:05","date_gmt":"2019-10-15T10:09:05","guid":{"rendered":"http:\/\/joapen.com\/blog\/?p=4343"},"modified":"2023-04-24T18:45:37","modified_gmt":"2023-04-24T16:45:37","slug":"dix-and-gex-indicators","status":"publish","type":"post","link":"http:\/\/joapen.com\/blog\/2019\/10\/15\/dix-and-gex-indicators\/","title":{"rendered":"DIX and GEX indicators"},"content":{"rendered":"\n

Two specific indicators, the Dix and the Gex, have been born from the investigations of SqueezeMetrics. They serve to monitor the behavior of short orders in the Dark Pools, which gives us an idea of the bullish sentiment of the real market:<\/p>\n\n\n\n

\nhttps:\/\/squeezemetrics.com\/monitor\/dix?\n<\/div><\/figure>\n\n\n\n

These indicators are the way to get our analysis to incorporate the indications obtained in high frequency trading. For me they are a complement.<\/p>\n\n\n\n

They are not easy to follow and extract conclusions right away, but sometimes they help. Specially to try to identify divergences. Below an example between GEX and S&P.<\/p>\n\n\n

\n
\"\"<\/a><\/figure>\n<\/div>\n\n\n

The Dark Index (DIX)<\/h1>\n\n\n\n

The DIX is simply the aggregated dark pool indicators<\/a> of the S&P 500 Index. It is, therefore, a measure of market sentiment from the point of view of dark liquidity\u2014a largely unexplored source of information. For the sake of utility, the DIX uses dollar-weighted trading volume to compute the ratio of dark pool buying to dark pool selling.<\/p>\n\n\n\n

Since DIX tends to rise into corrections, we are left to believe that it reflects
\na broad willingness of investors to accumulate S&P 500 component stocks at
\nlowered valuations, and that a decrease correspond to
\nsell trend on the dark pools.<\/p>\n\n\n\n