The recent post took a look at today's Cumulative TICK, which takes each one-minute average TICK reading and creates a cumulative sum, like an advance-decline line.
Above we see a different view of TICK, based on a 10-minute moving average of TICK readings. Note how we detect underlying buying pressure based on how little time the moving average spends below the zero line.
In strong buying days, pullbacks of the short-term moving average of TICK toward that zero line offer potential buying points. In actual trend days to the upside, those pullbacks of the moving average will occur at successively higher price lows, often providing nice short-term entries.
As the chart above suggests, it is difficult to sell the market for anything more than a scalp when buying pressure is steady through the day. Trading in the direction of the TICK distribution generally puts the sentiment wind at your back.
For more on this topic, check out this post on TICK during uptrends and this basic explanation of TICK.
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4 comments:
Brett,
Thanks so much for your posts and insights. They have turned my account around. I do have a quick question about NYSE TICK. I use Scottrade, whose charting program offers a inidcator called "NYSE TICK Intraday only". The values of this indicator only are allowed to read from 0 -> infinity. I use this indicator to gauge the TICK you speak of, but I wonder why I don't see the negative values you often talk about on down days. Am I looking at the same indicator you are talking about or am I way off the mark? Typical readings are between 0-1000 for the "NYSE TICK Intradday Only" indicator I watch on Scottrade. Thanks for your insights!
Hi Big Jake,
Sounds like a different indicator. I have never used data from brokers, always from a dedicated vendor. My data come from e-Signal.
Brett
BigJake, Call Scottrade there should be positive & negative numbers. The Tick is widely monitored by traders. It should be a direct feed from NYSE, its not a calculated "indicator". Do a google search for NYSE TICK, there's many references on its use & application. Although some of the clearest insights are on TraderFeed. But if you don't see it in operation (intraday) you won't get proper feel for its relavance
Hi BigJake, I'm not a Scottrade user, but you need to call Scottrade & clarify what you're looking at. The NYSE $TICK should be a direct feed set of positive & negative numbers (generally ranging from +/- 1200, or higher) at the extremes. You should see it updating every 2-3 seconds & you need to see in operation (intraday) & read all the Traderfeed posting on its relevance. Also do a Google search - there's a ton of good useful information on how the $TICK can help define realtime trading sentiment.
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