Tuesday, May 05, 2009

Tracking Shifts in Buying and Selling Sentiment


Here we can see the drying up of selling pressure in the NYSE TICK, as noted in the recent Twitter posting. What we're looking for are shifts in the distribution of TICK values. Many times this will show up as higher lows (as selling wanes) and lower highs (as buying dries up). The key is to see if buyers then step up as sellers lose conviction. That did happen, as price returned to its volume-weighted average price on the day.
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2 comments:

Brian said...

Wow, my TICK readings are much different than yours at the extremes. I show no +800 readings today as of yet and you have a couple on that chart.

I thought that data came from the NYSE so would be the same across data vendors. Can anyone explain the variances to me?

Thanks

Guillermo said...

Maybe you are looking at a simple tick chart and what Brett is showing is a cummulative tick chart.
I hope it helps.