T2W Trading Community

The bottom chart shows a 1 minute candlestick TICK chart. The yellow arrows represent the TICK extreme readings of +1000 and more. On the price chart above, the yellow arrows indicate the same time the TICK's reached the extreme +1000 readings. Notice how price advanced and a TICK fade would of not worked.
 
One strategy I use is to wait for a pullback after a extreme positive TICK reading and enter on a TICK hook. TICK fades and TICK hooks are in no way exact science. Understanding market internals and market direction is important in increasing your probabilities of a winning trade using the TICK's. Observation and experience is key.
 
New TICK Low's and High's
In a trending environment I like to watch for a new TICK high/low to exit a position or to play a counter trend setup. In an up trending market, a new TICK low can offer warning signals for a possible trend reversal. First thing is to bracket the TICK's after it has established its high and low range. Any violation below the lower range is a new TICK low. Take a look at the chart below.

The ER2 was in a steady uptrend all throughout the morning and lunch hours. A new TICK low hit indicated by the yellow arrow on both panels. The ER2 then went to decline for approx 4 points. Also notice the break in the trend line.
 
If I am in a long position, a new TICK low is usually an exit signal even if price has not yet reached my target. The way I see it is that there is a shift in market sentiment and a clear warning signal for longs. For a counter trend setup, in an up trending market I would wait for a new TICK low and then short on a retracement in price or the TICK's. I consider this a conservative counter trend setup.
 
Bullish and Bearish TICK's
What are bullish TICK's? A bullish TICK occurs when the TICK's spend the majority of their time above zero. If the TICK's spend most of their time above zero in the morning session there is a good chance price will continue its uptrend. Take a look at the chart below.